Reminder: “Frenemies” are not friends.

News that the Chinese ATP 40 cyber-hacking unit penetrated parliamentary internet networks in 2021 has renewed concerns about the PRC’s malign intentions in Aotearoa. But is the hack that significant given the length of time that has passed since its discovery and the lack of sensitivity of the information that was accessed?  I was asked to write about this for a corporate news outlet but since it is my work I have added some details and posted it here.

The hack is unsurprising given that NZ is a 5 Eyes partner and parliamentary services and the parliament counsel’s office handle sensitive information as a matter of course. NZ may be a trading partner of the PRC but is in essence a security adversary given its membership in 5 Eyes and its close military alignment with the US, Australia and other Western states that are (whether rightly or wrongly) hostile to PRC power-projection world wide. Since the PRC is a main focus of 5 Eyes signals and technical intelligence collection, it would be remiss for ATP 40 to ignore potential avenues of exploitation when it comes to obtaining political or security-related intelligence in NZ. That is part of their mission, and complements the well-known presence of numerous PRC human intelligence agents in this country.

It is therefore reassuring that the GCSB National Cyber Security Centre (NCSC) discovered the hack and found that no strategically important or sensitive information was breached. We shall have to trust them on that. However, that does not mean that this will be the last time ATP 40 or some other PRC cyber-hacking unit will attempt to breach NZ government and private cyber defences. That is what they do, and because NZ has in the past been seen as the Achilles heel of the 5 Eyes network due to traditionally poor cyber security practices, it will likely do so again. This is an ongoing problem that the NCSC was created to address, but the offence versus defence dynamic inherent in (cyber) espionage and warfare is still in play and will continue to be so for the foreseeable future.

Some have suggested that NZ impose sanctions on the PRC in response to the parliamentary cyber intrusion. The US and UK have announced such measures due to similar PRC behaviour with regard to them (more on this below). However, for NZ that would be a mistake because sanctions at this point would be counter-productive. First, because it would be akin to poking a tiger and invite disproportionate retaliation over what is a relatively minor transgression in the broader scheme of things. Since NZ has yet to wean itself off of its self-made PRC trade dependency, it cannot afford to alienate it just yet, if ever, over an intrusion of this order.

Secondly, these type of breaches are usually handled quietly so that the offending party is not completely sure of how and why they were thwarted or countered. In other words, the GCSB does not want to show its hand when it comes to its counter-hacking capabilities. That the breach occurred in 2021 and only has been acknowledged now indicates that the GCSB feels that enough time has elapsed for operational security concerns to be ameliorated and a “fair warning” issued to the hackers that they are being identified, traced and countered. So there is no need to cause an inevitably damaging public spat with a much more powerful interlocutor. For all the coziness of the 5 Eyes members, no one will come to NZ’s economic rescue if the PRC decides to take punitive economic measures against NZ in the event that NZ tries to impose sanctions of some sort on its largest trade partner.

The timing of the GCSB announcement about the 2021 hack is also coincident with the US publishing the identities of ATP 40 hackers targetting US infrastructure and Australia and the UK warning of their and other Chinese political interference efforts in strong terms, with particular focus in the UK and US on PRC hacker compromises to voting systems in election years in both. The timing of the announcements about PRC hacking efforts therefore seems to be a 5 Eyes-coordinated “shot across the bow” that gives warning to ATP 40 and their counterparts that the times of easy access to critical data infrastructure, even if indirectly and even in NZ, are over. 

But that may be all that it is and not, at least in NZ’s case, a reason for NZ to escalate the matter beyond what it already has said and done. Chinese diplomats have been summoned to MFAT for a “please explain” and scolded for ATP 40’s misbehaviour. The PRC Foreign Ministry has rejected the accusations and warned about scurrilous attempts to besmirch the PRC’s good name. Perhaps it is time to let the dogs go back to sleep.

It remains to be seen if this type of State-backed cyber-probing ends because if nothing else the PRC hacking community is ingenious, well resourced and persistent. For them, this is part of the PRC’s ascent to having a multi-dimensional (voice and cyber encrypted communication intercept, physical and infrared (thermal) imagery aquisition, submarine fiberoptic cable “tapping,” capabilities, etc.), broad specturm, multi-domain (air, land, sea, space, cyber) warfare infrastructure on its way to achieving superpower status. As part of 5 Eyes, NZ is standing in the (albeit in a small) way of that goal. It was and is bound to be an ongoing target of Chinese espionage efforts, including in the cyber domain.

Ultimately the revelations about ATP 40s operations in NZ are a reminder against cyber complacency at home and at work, be in the public or private sectors. This is very true when dealing with so-called “frenemies,” that is, States with which NZ has cordial, even friendly relations on the public surface but with which underlying value systems and security relations are incompatible, strained or even hostile. So long as NZ is a member of the 5 Eyes network and the PRC is an adversary and target of that network even if it is NZ’s largest trade partner, ATP 40 and other PRC intelligence units will be hard at work seeking to discover and exploit any potential avenues of opportunity in NZ cyber-space as well as in other domains. It may be in that in the past “loose lips sunk ships,” but in the contemporary era all keystrokes, phone calls, encrypted messages, Tik Toks and Instas are also grist for the intelligence mill—and exploitable as such.

An earlier version of this essay appeared on March 27, 2024 in the NZ Dominion Post (the-post.co.nz, p.19) and affiliated media outlets.

NZ on Hamas and Zionist Settlers.

Here is one for the road before I shut down for a while due to the previously mentioned family medical issues. It is about NZ designating Hamas as a terrorist entity, adding its political wing to the 2010 decision to call its armed wing a terrorist entity under the 2002 Terrorism Suppression Act. I believe that the decision is mistaken. Here is why.

The move is more about tightening NZ’s alignment with its Western security partners with regard to the Israel-Hamas war and broader Middle East conflicts than about hindering Hamas’s ability to sustain itself. Hamas is supported by Iran and other states, so the move to sanction it under the TSA is more symbolic than substantive. It will have little discernible impact on Hamas’s operations other than to prevent it from hiding assets in NZ or receiving funding from it, be it by individuals or groups, under penalty of law. What it does allow is NZ to more fully commit to the anti-Houthi coalition now ring-fencing the Red Sea maritime channels because it can argue that the Houthis are supporters of a terrorist entity and therefore punishable as such (since the Houthis say that they support Hamas in its struggle with Israel and argue that their attacks on shipping are justified by Article 2 of the Convention on Preventing Genocide and are limited to Israel-bound or departing vessels and their naval support convoys).

However, most of the international community recognizes the difference between Hamas’s political and military wings, so NZ, its 5 Eyes partners and the EU (all of whom have designated both Hamas wings as terrorist entities) are at odds with the majority view. That view understands that resistance, revolutionary, nationalist and independence movements have armed and political wings that share broad objectives but behave according to principles of operational autonomy. Under those principles, armed wings provide coercive leverage that creates space for political wings to negotiate favorable settlements on disputed matters with adversaries. This is also a type of “moderate-militant” strategy that is a mainstay of collective action, but with armed force as the sharp end of the stick. Examples include the IRA and Sinn Fein (with whom the UK signed the 1998 Good Friday Peace Agreements and the IRA laid down its weapons), the Taliban during the ISAF occupation (where its political wing based in Qatar negotiated the withdrawal of US and ISAF forces with the Trump administration, paving the way for the calamitous allied retreat and Taliban return in 2022), Kurdish separatists in Iraq (who fought to secure political autonomy from the central government in Baghdad after the fall of Saddam Hussein and US troop departure) and more. The point is that armed and political wings are, within the limits of operational autonomy, the yin and yang of many mass movements and enjoy a symbiotic relationship as a result. The relationship between political and armed wings may be akin to that of glove and fist, but the glove is a deliberate loose fit.

Under the principle of operational autonomy armed wings do not share information about real-time military details and planning with their political wings because that risks leaks and intentional or inadvertent disclosures that can be exploited by enemies. In turn, political wings do not share information about negotiating strategies that may involve compromises because that can risk backlash, division and fracture with militants in the armed wings, which are also exploitable by adversaries and often are lethal.

It is important to note that in the exercise of operational autonomy the armed and political wings of a mass movement aim to influence each other. The armed side wishes to present a fait accompli on the ground that backs the political wing into a bottom line negotiating corner when it comes to common enemies. That was the case with October 7. The political wing attempts to restrain the use of force and use the threat posed by the armed wing as a bargaining chip in order to extract concessions from its adversaries. That makes for a two-level game, one internal and one external. It is the internal dialectic between the two sides that ultimately determines the external strategy employed by the movement as a whole.

In other words, the two wings share broad strategic goals but not tactical approaches. Operational autonomy promotes operational security. That is why lumping the Hamas political wing (based in Qatar, as were the Taliban) with its military wing (based in Iran and Gaza) is a case of specious logic on the part of the NZ government. For security reasons the political wing was uninvolved in planning the October 7 attacks for which it is now blamed as a co-conspirator by NZ. It is still needed as a Palestinian agent if any negotiated settlement is to be achieved because like it or not, it will not be fully eliminated as a political entity even if the armed wing is destroyed (and even then, only temporarily). Denying that reality is misguided, especially since the Palestinian Authority is corrupt and discredited at home and abroad even if recognized by Western nations as a puppet Palestinian “government” in the occupied West Bank. With its foreign backers behind it, Hamas is here to stay regardless of how it is “designated” by NZ and others. (As an aside, the Palestinian Authority and Hamas are currently in talks in Moscow about a post-war Palestinian government, which shows that at least the PA understands the reality of the situation).

Put another way: For those who think that cutting off recognition of Hamas is a good idea, remember that there must be someone to talk to if a resolution to the war is to be had. They will not be destroyed because they are more than an army–they are an ideological movement that will outlive its militant fighters. You may not like them, and in fact hate them, but like Israel itself, they will not go away. Best then to talk to their political wing even as part of a divide and conquer strategy because the ultimate resolution is political, not military.

The NZ decision on Hamas also demonstrates the lie that is the claim that NZ enjoys foreign policy independence, since NZ has simply bowed to the wishes of its 5 Eyes and other Western security partners against a rising tide of global public opinion about the Hamas-Israel war. That, in the words of a former NZ PM, is the price for being in the Anglo-centric big boys “club.” But there is more costs involved–that of the impact on NZ’s international reputation as a good global citizen and honest interlocutor.

The NZ government also declared that it was imposing travel bans on about a dozen Israeli settlers know to have committed violent acts against Arabs in the West Bank. But let’s be clear: that is just trying to have a diplomatic bob each way when it comes to Israel and Hamas, since the chances of Zionist extremists seeking to travel to NZ is about the same as finding a nun in a brothel. That makes it an empty symbolic gesture rather than an effective diplomatic tool.

It is said that the currency of diplomacy is forged by hypocrisy. NZ’s behaviour with regard to Israel and Hamas is a case in point.

A toe in the fire.

The decision to send six NZDF personnel to join the US-led anti-Houthi maritime picket line has a number of interesting facets to it. I made a few posts about the decision on a social media platform but will elaborate a bit more here.

It was obvious that a conservative pro-American government coalition would not only sign a US-drafted declaration defending freedom of navigation and denouncing Houthi attacks on commercial shipping in the Red Sea, but would offer some symbolic material support (even if token) to the maritime picket line that the US and its main allies (all 5 Eyes partners) were putting together under the already extant joint task force CTF-153 headquartered at the US 5th Fleet HQ in Bahrain. The task force is led by a US admiral and operates under US Rules of Engagement (ROE). Prime Minister Luxon is an admitted “Americaphile” due to his time spent in the US as a corporate executive. Deputy PM and Foreign Minister Winston Peters was involved in negotiating the Wellington and Washington Agreements establishing US-NZ bilateral security ties and has long voiced his support for US leadership in global affairs. The third coalition party leader, David Seymour, takes his policy prescriptions (and money) from US rightwing think-tanks and conservative lobbies.

Defense Minister Judith Collins (among many other portfolios, including intelligence and security) was the odd person out at the press conference announcing the deployment (Seymour did not attend) because she has previously attempted to use her status as an MP and minister to advance her husband’s business interests in China, and remains as one of the more Sinophilic (yes, said on purpose) members of the new government. Moreover, as Minister of Intelligence and Security and Attorney General, she is now the Keeper of the Secrets of Defense, Intelligence and the Courts, which is only of concern if you worry about a corrupt politician who also is now back scheming with the bankrupt (in every sense of the word) rightwing attack blogger whose miserable antics were outlined in that chronicle of political depravity, Dirty Politics. In any event, with the Collins anomaly excepted, it should be no surprise that the government made a move in support of its security patrons.

The government argues that its contribution is done to protect freedom of navigation, making specious arguments about the impact of the Houthi attacks leading to a rise in commodity prices on NZ consumers (NZ being a trade-dependent country etc.). It rejects the notion that its actions are in any way connected to the Hamas-Israel War even though the Houthis are invoking Article 2 of the 1949 Convention on the Prevention of Genocide to justify their attempts to stop war materials from reaching Israel. It chides those who differ with their justification by saying that it is wrong to “conflate” the Hamas-Israel War with the Houthi attacks even though the Houthis have explicitly done so.

As many scholars have noted, NZ joining the coalition of the pro-Israeli military bloc runs counter to NZ support for UN demands for a ceasefire and its supposed neutrality on the larger context behind the current conflict. Whatever the pretense, the hard truth is that with the NZDF deployment NZ has openly joined the Western coalition backing Israel in its war on Palestinians, eschewing bold support for enduring humanitarian principle in favor of short-term diplomatic realpolitik. Moreover, NZ has now been suckered into, via the US request for a contribution to the anti-Houthi effort, an expanding regional conflict that involves Iran and its proxies, on one side, and Israel and its (mostly Western) supporters on the other. With Russia and PRC (among others) supporting Iran and its proxies, the conflict has the potential to become drawn out as well as involve a larger number of actors.

Mission creep for the NZDF is therefore a distinct possibility, and the claim of NZ foreign policy independence rings hypocritically hollow since it is now clear that when the US asks NZ to take a pro-US/Israel stand on a controversial international issue, NZ bows and obeys.

So what does NZ’s flag-planting entail?

Not much at first glance. Its two frigates are in maintenance or on sea trials. It would do no good to send non-combat ships even if they were available (they would just become targets), and its in-and offshore patrol vessels are not suited to the task even if they could find crews to man them and get them to the theatre of operations. The Air Force could have sent one of its new P-8 maritime patrol aircraft, which would be suited to some picket line duties such as electronic surveillance, but chose to not do so. What was left was finding a way to send ground-based assets to the theatre, and that is what the government and NZDF brass opted to do.

They have ordered the deployment of a six person “highly specialised” team to serve as “targeters” for allied forces using “precision weapons” against Houthi targets. From that description the soldiers could be a military communications/signals intelligence team or could come from the NZSAS, who specialise in long range patrol and reconnaissance and who routinely serve close to or behind enemy lines as forward target spotters (including Mosul during the fight against ISIS, if reports are correct). The NZSAS is believed to already have assets in the Middle East, perhaps stationed in Djibouti or Bahrain, likely in partnership with or as a secondment to the intelligence fusion “cells” or joint SPECOPS units that are located at US bases in those countries. Defense Minister Collins said that they would operate from “HQ and other places,” which suggests that be they military communications/signals intelligence specialists or NZSAS, they may be stationed on allied ships as well as land facilities. Because of their focus on mobility and stealth, if the team is indeed an NZSAS team, then it is doubtful that they will be spending much time behind desks or shining their medals at HQ.

Even so, a six person “targeting” team is a very thin deployment even for military intelligence or the NZSAS, which tend to deploy in platoon sized units. Unless the announced six-person team has larger backup in theatre behind it, there are no redundancies in the deployment, say, if a trooper breaks an ankle while playing paddleboard at the HQ. As things stand, the NZDF as a whole has severe retention problems that include the NZSAS, especially among non-commissioned officers, aka corporals ad sergeants (NCOs) that are the backbone of the regiment. Similar problems afflict other specialist units. In other words, the thinness of the deployment may be symptomatic of much larger problems within the NZDF.

The government says that there will been NZDF boots on the ground in Yemen. Not only do I take the government and NZDF word on this with a big grain of salt, but I will note that Yemen is contested space, the Houthis do not control all of it, and Saudi Arabia shares a border with it. Since the Saudis have conducted a murderous military campaign against the Houthis in the ongoing civil war between the Saudi-backed Republic of Yemen government and Houthi movement “rebels,” it is not far-fetched to think that it or the Republic of Yemen might welcome some anti-Houthi Western specialist forces on their soil.

(As an aside, PM Luxon has a certain form when it comes to the Red Sea conflict. He was the CEO of Air New Zealand during the Key government when an Air New Zealand subsidiary engineering firm sold maritime turbines to the Saudi Navy. Around that same time MFAT approved sale of military support equipment like range finders and fire control systems to the UAE knowing that they could be used against the Houthis (since the UAE is part of the Saudi led coalition against the Houthis), in contravention of voluntary international sanctions imposed because the Saudi coalition was committing war crimes against the Houthi population in the (still ongoing) civil war in Yemen. MFAT signed off on both deals, reflecting the Key government’s approach to such things. When confronted after the turbine sale was completed, Luxon said that he was not involved and had no responsibility for the decision, saying that it was made below his pay grade. That is a bit rich for a guy who pontificates about how he used to run an airline, but more importantly is symptomatic of how National selectively approaches relations with powerful authoritarian human rights-abusing regimes).

The government also insist that the team will not be involved in combat roles. This is an obfuscation as well as a distinction without a difference. The reason is that “targeters” are part of what is known as the “kill chain.” The “kill chain” starts with intelligence-gathering, moves through target identification and selection, then weapons and delivery platform designation, and ends with a trigger pull or launch command. The NZDF just joined the anti-Houthi kill chain. How is that so?

The NZDF “targeting” team will analyse intelligence feeds from technical (TECHNT), signals (SIGINT) and human (HUMINT) sources, including satellite and drone imagery in real time. They will evaluate the legitimacy of the intelligence by confirming the targets using a variety of means, of which getting proximate eyes on potential targets using their core skills is one possibility. In some cases targeting teams get close enough to electronically “paint” designated targets prior to air strikes (think along the lines of extremely sophisticated laser pointers). Once the target identity is confirmed and deemed actionable under the ROE, the team will pass its confirmation of the target to commanders who operate weapons platforms and who designate what sort of weapons should be used given the nature of the target (say, a sea-launched cruise missile from a destroyer or submarine or an air-launched Hellfire missile from land or carrier-based aircraft).

So what are its targeting constraints? That is unknown and the government and NZDF have not said anything about them. What is known is that the NZDF team will be operating under US command within the structure of CTC-153 operating under the name Operation Prosperity Guardian, which means they will not have autonomous say in what ultimately its designated as an “actionable” target. But the problems with the deployment go beyond the flexibility of US ROEs. It has to do with the kill chain itself.

That is why speaking of “precision” munitions is an easy way to whitewash their effects. They are precise only if the intelligence and targeting guiding them is accurate in real-time and the ROE is strictly defined. A precision guided weapon aimed at the wrong target or without regard for collateral damage is just another dumb bomb with guidance sensors and a camera. Plus, warhead throw weights matter. It is hard to be surgical with a 500lb. or1000 lb. warhead if the intelligence and target designations are not precise (they can be but not always are given the command pressures to deliver results in terms of enemies and equipment destroyed), which is why the intelligence/targeting part of the kill chain must be systems redundant before a trigger is pulled.

Again, none of this has been made public. No parliamentary consultation was undertaken before the decision to deploy the team was made. The irony is that the deployment, especially if my assumption is correct in that it involves the NZSAS, could have been done discretely and without fanfare. NZSAS deployments are done in secret all of the time and the public and politicians are none the wiser. Yet here the government chose to go public and grandstand with its announcement, which even if designed to offer public affirmation that NZ is part of the “club” John Key once talked about with regard to the NZDF presence in Iraq, also exposes the targeting team to increased physical risk and NZ to increased reputational harm given that most of the international community do not share the view that Houthi’s actions are unrelated to the Hamas-Israel war or that Israel is the good actor in it. But Israel is a close intelligence partner of the 5 Eyes network, so perhaps NZ’s choice of expediency over principle has something to do with that (rather than freedom of navigation per se).

Whatever the rationale behind the government’s decision, it seems that it is sticking a toe into a fire that may grow hotter rather than cooler. Then the question becomes one of whether the government has contingency plans ready to prevent NZ from being drawn further in and burned in the service of, to quote another Nicky Hager book title, Other People’s Wars.

About the Houthi Red Sea blockage.

The announcement that NZ has joined with 13 other maritime trade-dependent states in warning Houthis in Yemen to cease their attacks on commercial shipping in the Red Sea (particularly in the Bad-el-Mandeb Strait) got me to thinking of about some finer points embedded in the confrontation (beyond wondering if NZ will send a warship to join the US-led task force being assembled to protect commercial shipping in the Red Sea. After all, joining group communiques is cheap. Putting grey hulls into remote conflict zones is not)).

First, even though they are also maritime trade dependent, India, Indonesia and the PRC, among other Asian states, have not joined the coalition. This suggests that protection of freedom of navigation is not the sole criteria behind the decision to join or not, something confirmed by the fact that other than Bahrain, all of the signatories to the statement are 5 Eyes partners, NATO members or NATO partners (like Australia, Japan, New Zealand and South Korea). Bahrain is the location of the US Navy Central Command, the US Fifth Fleet and the combined task force (CTF-153) responsible for overseeing “Operation Prosperity Guardian,” the name given to the anti-Houthi maritime defense campaign. It has a strained relationship with Iran due to its suspicion that Iran foments unrest among it’s Shia majority (which is ruled by a Sunni aristocracy). Like many Sunni oligarchies, it sees the Houthis as Iranian proxies.

Some Muslim majority states may have declined to join Operation Prosperity Guardian out of caution rather than solidarity with the Palestinians. Anti-Israel demonstrations have broken out throughout the Islamic world, so reasons of domestic stability and elite preservation may be as much behind the calculus to decline as are sympathies with Gazans or Houthis. Conversely, nations that are not as dependent on Red Sea maritime routes (say, in the Western Hemisphere) may see little to be gained by taking sides in a conflict that does not involve their core national interests (matters of principle aside).

The name of the Operation suggests that is focused on maritime security and freedom of navigation. Twelve percent of the world’s trade passes through Bad-el-Mandeb. There is an average of 400 ships in the Red Sea at any one time. The Houthis have launched dozens of attacks on Red Sea shipping since the Gaza-Israel War began using a variety of delivery platforms. The situation has the potential for expansion into regional war, and even if it is not, it is adding transportation time delays and billions in additional costs to the global supply chain, something that will sooner or later be reflected in the cost of commodities, goods and services.

But there is a twist to this tale. The Houthis claim that they are only targeting ships that are suspected of being in- or outward-bound from Israel as well as the warships that seek to protect them. They argue that they are not targeting shipping randomly or recklessly but instead trying to impede Israel’s war re-supply efforts (this claim is disputed by shipping firms, Israel, the US, UK and various ship-flagging states, but the exact provenance of cargoes is not subject to independent verification). They claim that their actions are justified under international conventions designed to prevent genocide, specifically Article One of the Convention on the Prevention and Punishment of the Crime of Genocide (given the wholesale slaughter of Palestinian civilians in Gaza since October 7) and point to UN statements supporting the claim that what Israel is doing in Gaza and the West Bank, if not a “complete” genocide, certainly has the look and feel of ethnic cleansing. The South Africa application to the International Court of Justice charging Israel with genocide in Gaza, now supported by Turkey, Malaysia, Jordan, Bolivia, the Organisation for Islamic Cooperation (OIC) and hundreds of civil rights organisations around the world, is also being used by the Houthi rebel regime (and alternate sovereign) in Yemen as justification for their attacks.

In essence, what has been set up here is a moral-ethical dilemma in the form of a clash of international principles–guaranteeing freedom of navigation, on the one hand, or upholding the duty to protect against genocide on the other.

Needless to say, geopolitics colours all approaches to the conundrum. The Houthis (who are Shia) are clients of Iran (home to Shia Islam), who are also patrons of anti-Israel actors such as the Shia Alawite regime in Syria, Hamas in Palestine, Hezbollah in Lebanon and numerous Iraqi Shiite militias. Iran (and through it its various regional clients and proxies), has strong military ties to Russia and the PRC (for example remember that Russia is using Iranian-made attack drones in the Ukraine). For their part, the NATO alliance and its partners are all major intelligence partners of Israel, as is Bahrain. So the confrontation in the Red Sea may not be so much about the moral-ethical obligations in defending freedom of navigation or resisting genocide per se, but instead is part of larger balance-of-power jousting in which the principles are extra-regional but the agents are in the Middle East.

New Zealand has already chosen a rhetorical side based, presumably, on its support for the principles of freedom of navigation and its rejection of the argument that the Houthis are doing the little that they can to resist genocide in Gaza. Should NZ send a warship to join the CTF-153 naval picket fence protecting commercial ships running the gauntlet at Bad-el-Mandeb, then it will have further staked its position on the side of its Western security partners as well as put its sailors in harm’s way. Some will say that it has placed more value on containers than the lives of Gazan children.

That may be a pragmatic decision based on sincere belief in the “freedom of the seas” principle, disbelief in the Houthi’s sincerity when it comes to resisting genocide (or the argument itself), concern about Iranian machinations and the presence of Russia and the PRC in the regional balance of power contest, indirect support for Israel or simply paying, as former PM John Key once said, “the price for being in the club.” Whatever the reason or combination thereof, it appears to the neutral eye that once again NZ has put facilitation of trade ahead of upholding universal human rights in its foreign policy calculations.

Perhaps the best way to characterise this approach is to call it a matter of prioritising conflicting principles in strategically pragmatic ways. Whether that puts NZ on the right side of history given the larger context at play remains to be seen.

“Second image” issues in NZ foreign policy.

The term “second image” in international relations theory refers to an argument about the domestic sources of a nation-state’s foreign policy. The argument posits that it is the nature of those domestic sources that determines the way in which nation-states perceive and approach foreign policy. Conversely, the phrase “second image reversed” refers to the international/foreign influences on domestic politics in individual nation-states, arguing that the type and extent of foreign influence in a nation-state has a strong impact on the nature of its domestic politics. These notions have been offered in order to explain the differences between authoritarian versus democratic foreign policy-making as well as the impact of power differentials, propaganda, misinformation and disinformation on public perceptions of foreign events as well as on the very nature of political life in targeted countries (such as is claimed to be the case with Chinese influence campaigns in places like NZ). One side sees domestic politics shaping the broad contours of foreign policy; the other sees international events and influences framing the nature and conduct of domestic politics and local approaches to foreign policy.

Both views can be true and co-exist at the same time. The way in which domestic politics influences foreign policy-making can in turn be informed by foreign influence and intervention in domestic politics. Again, the way Chinese interests have influenced political and economic elites in NZ (covertly or overtly) has had a clear impact on the way NZ has approached the PRC as a foreign interlocutor. Academic Anne-Marie Brady has written extensively about PRC use of “magic weapons” such as influence campaigns in NZ and elsewhere, but one only need think of former politicians like Jenny Shipley, Don Brash and John Key sitting on the boards of a Chinese bank and companies with NZ interests to understand how reversed second imagery works.

The second image aspect of foreign policy-making is particularly noteworthy in NZ because of its one-sidedness. As mentioned above, there is plenty to suggest that there are numerous foreign influences helping shape NZ foreign policy-making. Some are legitimate and open in their presence, such as NZ membership in various NGOs, treaties and conventions with binding rules governing standards of behaviour by members, as well as in NZ’s abiding by international norms and conventions when it comes to things like domestic labour laws, environmental regulations, intellectual property and patent rights, emissions trading schemes, various health, welfare and safety standards and the like. Others, such as PRC “sharp power” direct influence campaigns, are more opaque in nature and often unrecognised or unacknowledged by those on the receiving end of them. Whatever form it may take, it is widely recognised that in NZ the reversed second image is very present when it comes to foreign policy-making.

Less so is the second image itself. The NZ foreign policy community is small, with a select number of academic and private sector actors joining government officials in shaping the country’s approach to the outside world. Public involvement in foreign policy is minimal and the political class treat it as if it was rare earth. Not surprisingly, in this year’s election campaigns discussion of foreign policy has been conspicuous by its absence. With some exceptions noted in outlets like Newsroom, the Spinoff, 36th-Parallel.com and the works of people like Matt Nippert, Gordon Campbell, Selwyn Manning and David Fisher, much of this is due to the corporate media’s focus on controversy and gotcha moments rather than on in-depth analysis of substantive issues of any sort, much less those involving foreign relations. NZ based academics like Robert Patman, Rueben Steff and Van Jackson all write thoughtfully about foreign policy matters, to include aspects of NZ foreign policy, but their contributions in the media are (often self-) limited and do not inform campaign or political party policy coverage (as far as I know).

Political parties are not saying much either. Except National, parties have offered short–sometimes very short-– manifestos (thanks to The Spinoff for collating them), and interestingly the Greens have the must robust policy platform, even if in a touchy-feely, tree-hugging, climate-centric sort of way. For its part ACT just wants to increase defense spending and buy more ships, planes and guns because that is what the BIG BOY ALLIES DO, while NZ First as well as ACT want to ignore/withdraw from the UN Declaration on the Rights of Indigenous Peoples (ACT says ignore, NZ First says withdraw, so it is a matter of conjecture as to whether ignoring is better than withdrawing from a legally non-binding Declaration that NZ initially opposed but eventually signed up to).

Te Pati Maori are all about increasing support for Pacifika leaders and not much else, while Labour is pretty much all about trade, trade, more trade, more trade involving Maori and the derivative issues from trade (such a patent and intellectual property rights). Focusing on the blue rinse plate special, Winston and his motley crew of racists (increasingly shared with ACT), anti-vaxxers and QAnon believers want to move the Naval base from Devonport to Marsden Point. The Greens oppose AUKUS, South Pacific militarisation and support using the military for climate change mitigation purposes. Te Pati Maori have nothing much to say about Defence, nor for that matter does Labour in its campaign documents (as much as I have seen of them). Interestingly, no party speaks about intelligence issues in spite of the recently released reports advocating for intelligence community reform in the wake of March 15 and the rise of domestic white supremacist and other forms of seditious extremism. National is especially distinguished because it has nothing much to say on any foreign policy position, but if I was to hazard a guess as to what it may be, I reckon that it would be “more of the same” with a “please be nicer to the PRC” spin added to it. (NOTE: I stand to be corrected if Labour and National have put out comprehensive foreign policy platforms but so far I have not found any when doing cursory searches).

To recap: foreign policy is woefully underrepresented in the current election campaign, much as it was in previous elections. While NZ gets the second image reversed treatment in spades, the domestic sources of foreign policy are limited to a handful of foreign policy elites who in large measure appear to be unchecked by and do not receive significant policy directives from the government and political class of the day. Instead, it is the other way around.

Although foreign policy has always been the province of elites in most countries due to the requirements of educational backgrounds, international knowledge and experience, added to the necessities of maintaining consistent diplomatic relations across home and foreign governments over time, in NZ this is worrisome because the public has virtually no input, via civil society organisations, lobbies or political parties themselves, into foreign policy perspectives and decision-making processes. For example, much is said about (and I have argued against) the notion that NZ has an ‘independent” foreign policy. But how is that informed by domestic agents and interests? Certainly not by public referenda or informed consent voiced in elections. Certainly not by academic debates about the theoretical and practical meanings of the term “independence” in foreign policy. Certainly not by community public hall forums. Certainly not by journalistic challenges to the official line.

Economic elites may have an inside track in foreign policy-making and even work hand-in-glove with Foreign Ministry officials to ensure that trade-centric policies are the core of NZ’s international position regardless of who is in government and what NZ proclaims on other matters, but who else gets a look in? Academics? Perhaps a chosen few (certainly not this ex-professor). Consultants? (Likely more than a few, usually retired diplomats or military officials, and again, certainly not this one). Lobbies (certainly, but in very limited and exclusive numbers). Religious organisations? Unions? Environmental Groups? Human Rights Organisations? Sadly, although these latter groups may have a presence on the home front, their input into the foreign policy process can be considered to be largely negligible.

The hard truth is that foreign policy making in NZ is made by a relatively small group of bureaucrats and well-connected, self-interested private sector insiders and interest groups largely unchecked by the political elite, much less public opinion. They have little accountability of a vertical sort, and even less on a horizontal level (i.e. accountability to their political overseers’ and the public, on the one hand, and to other State bureaucracies on the other). That poses a problem because horizontal and vertical accountability of public agencies is considered a hallmark of liberal democracies. They answer to the public, to politicians and to each other. Unfortunately, in NZ the foreign policy elite largely do not.

This is problematic because of the syllogism involved. If we accept a) that in NZ the second image reversed phenomenon is very real, with foreign influences having a significant impact on foreign policy elite perspectives and decision-making; and b) that little second image input goes into NZ foreign policy-making outside of a small group of overlapped and interconnected elites that are largely unaccountable to anyone but themselves; then c) NZ’s foreign policy is shaped more by foreign-influenced elite perceptions and interests than those of the voting public at large. In an autocracy this would be the normal state of affairs, but for a liberal democracy it is a concerning issue, to say the least.

Perhaps as the election campaign moves closer to decision day there will be more robust discussion of foreign policy issues, including those related to intelligence, defense and international security. Perhaps there will be debate on whether NZ is truly independent or not, whether the trade-centric focus is still fit for purpose, and what NZ’s approach to Great Power competition should be in an era of increased multipolarity and broadening of areas of contestation in regions such as the South Pacific that were once thought to be “benign” strategic environments. But as things stand that seems unlikely, and instead we will be treated to an endless series of stories and debates about which party and candidate sent out the meanest tweet, who got caught out telling porkies and who dog-whistled the most in order get media click-bait coverage.

If so, that is not good enough.

Benign Strategic Nostalgia.

It has been interesting to observe reactions to the release of a cluster of national security-related documents by the NZ government last week. They include threat assessments and forecasts, defense capabilities and priorities, and areas requiring upgrades and reform, and much more. Among the issues being considered is one that I have discussed here before, the question of whether NZ, if it is invited to participate, should join “Pillar 2” of the AUKUS agreement between the US, UK and Australia on submarine and related high technology transfers. NZ is not part of the submarine (Pillar 1) component, where the US and UK will begin to rotate nuclear attack submarines through HMAS Sterling outside of Perth in a few years, then help Australia acquire and eventually build nuclear-propelled attack submarines based on US and UK models now in service. Given its non-nuclear status, NZ is not party to that aspect of the agreement although it will eventually benefit from AUKUS submarine patrols off of its Eastern seaboard and EEZ as well as from the improved signals intelligence collection streams these platforms provide to the 5 Eyes intelligence network that NZ is part of through the GCSB electronic intelligence agency.

Pillar 2 is about establishing local high technology defense industry hubs in Australian locations and perhaps NZ. These would focus on developing indigenous and shared quantum computing, cyber security, artificial intelligence and an assortment of signals and technical intelligence capabilities relevant but not limited to submarine warfare and intelligence collection and which could have trickle-down benefits for commercial and other non-military enterprises. These technologies may not be available from other countries, as they a are part of high security collaboration between close military allies. The Australian federal government has already apportioned billions of dollars to several states so that they can engage in Pillar 2-related industrial development, promising to create thousands of jobs and spin-off business opportunities by doing so. Although I do not see why Australian business interests and local governments would want to share the employment and the short-term as well as trickle-down profit benefits of the Pillar 2 pie with non-nuclear NZ, NZ authorities and businesses have expressed an interest in being included in the non-nuclear aspects of the deal.

That is where the reaction in NZ has gotten interesting. Although the specific details of any participation in Pillar 2 have yet to be announced (in fact, everything so far has consisted of vague declarations of interest on the part of the NZ Defense, Intelligence and Security Minister, Andrew Little), there has been a strong pushback from certain sectors of the foreign policy community, including Foreign Minister Nanaia Mahuta, former Prime Minister Helen Clark, and prominent academics such as Robert Patman. They all think that it is a bad idea, and while they offer a variety of reasons, their arguments against NZ participation in AUKUS Phase 2 appear to boil down to three beliefs: 1) trade dependence makes it dangerous to annoy the PRC because of the risk of economic retaliation (since AUKUS is clearly designed to counter Chinese military expansion and influence in the Southern Pacific and beyond); 2) there is moral equivalence between the PRC and US or the PRC is seen as a benign actor when compared to Western imperialists; 3) NZ must remain neutral when it comes to Great Power competition in order to remain “independent” in foreign affairs. All of these assumptions should be tested in any debate about NZ’s potential role in AUKUS Phase 2 (should it eventuate).

Until the specifics of any invitation for NZ to participate in Pillar 2 are outlined in detail, I remain agnostic on the proposition. I can see the benefits but also remain concerned that the nuclear propulsion component of Pillar 1 of the agreement is a violation of the 1997 Treat of Rarotonga that declares the South Pacific to be a nuclear free zone. Contrary to what some may think, the Treaty prohibits not only nuclear weapons but the presence of nuclear power and storage facilities on land as well. That means that AUKUS nuclear maintenance facilities, should they be constructed at HMAS Sterling, will likely be in violation of the Treaty. It appears that by basing the AUKUS subs on an island outside of Perth in Indian Ocean waters, the AUKUS signatories believe that they have circumvented that prohibition, but if one looks at the original maps that are attached to the Treaty declaration one will see that the coastal waters of Western Australia are in it. That means that practically speaking, AUKUS provides a precedent for the forward basing of other nuclear-powered naval vessels in the region, including from the PLAN (e.g. the PRC Navy, but others as well). That augers poorly for the Pacific remaining nuclear-free even if we acknowledge that nuclear submarines, including those that carry nuclear weapons, in all likelihood already transit Southern Pacific waters on a regular basis.

Although arguments by knowledgeable and reasonable people such as Patman are couched in neutral, objective language, there is also an internal political aspect to the discussion. Helen Clark was the PM when NZ signed the first Western bilateral Free Trade Agreement (FTA) with the PRC, which many NZ trade advocates consider to be the “gold standard” of NZ FTA’s. Clark has a personal stake in that agreement, which was expanded by her successor John Key, so she certainly does not want to see her government’s crowning foreign policy achievement undermined by subsequent Labour governments with different perceptions on international security affairs and the role of the PRC within it. Remember that Clark was very much on the Left of the Labour Party before pragmatic centralism pushed her rightwards once she became PM. Remember also that she eliminated the air combat wing entirely when her government renegaded on the purchase of second-hand F-16s from Pakistan that would have replaced the obsolescent A-4 Skyhawk squadron. At first her government starved the NZDF of resources and delayed replacement of ageing equipment (although it accepted delivery of the completely oversized purchase of 105 LAV wheeled armoured vehicles signed by the previous National government, which then were largely kept in storage, deployed in small numbers and/or damaged in accidents and in operations until recent on-sales to Chile. There are still a few dozen left, most surplus to requirements). In fact, in the early days of her stint as PM, she downplayed the need for robust military forces because, in her infamous words, NZ existed in a “benign strategic environment.” That was before 9/11.

Then things changed. After 9/11 the Clark government saw the opportunity to ingratiate itself to the US (after the freeze in security relations occasioned by the 1984 non-nuclear declaration that ended ANZUS) by offering support for the so-called “War on Terror.” Along with disgraced former SIS Director Richard Wood (now still feeding at the public trough as Chair of the NZ Environmental Management Risk Management Authority (ERMA). He is also Chair of the NZ/France Friendship Fund, a nice sinecure for a former ambassador to Paris and Algiers), Clark was front and centre in orchestrating the malicious framing and railroading of Algerian asylum seeker Ahmed Zaoui as an al-Qaeda linked terrorist. Although Zaoui was less dangerous to NZ that any number of Christchurch skinheads, he was imprisoned in a maximum security prison for several years until a team of dedicated advocacy lawyers proved his innocence, including that the SIS under Woods’s direction and at the Clark government’s behalf had lied and produced false evidence of his alleged crimes (the Vietnam “scouting” trip video being the most ludicrous of them). She also ordered the NZ intelligence community to focus its resources on the anti-jihadist crusade in Aotearoa and elsewhere (which may well have included NZSIS complicity in the US extraordinary rendition and black site operations against suspected al-Qaeda terrorists and supporters, the details of which remain suppressed), and to top things off attempted to use the newly-minted powers of the Terrorism Suppression Act (TSA) to arrest and jail the so-called Urewera 18 band of leftists and Maori sovereignty activists (charges were dropped against all but four defendants, and the remaining were convicted of minor weapons charges after years of costly litigation, as had been the case with Zaoui).

Terrorism became the foil for Clark’s turn to security toughness even if the jihadist threat, both before and after 9/11, has been more talk than walk (no Muslim has been involved in an ideologically-motivated violent attack in NZ before or after 9/11. The 2021 supermarket stabber was, as I have written before, a lonely and homesick mentally ill person with a blade fetish and no effective counselling support, not an ideologically committed extremist). Sensing the tenor of the times, Clark dropped her progressivism on both domestic and foreign policy issues and turned rightwards out of political expediency (remember her opposition to cannabis legalisation while in office? She now supports it), thereby setting the stage for a change in NZ’s security perspective and assessment of threats.

At the same time she was polishing her anti-jihadist bonafides on the back of an innocent man and settling scores with pesky activists, she authorised NZDF deployments to Afghanistan and Iraq (even while not formally supporting the US-led invasion of Iraq in 2003). Not all of those deployed, shall we say, were NZDF engineers, and those deployments turned into a longer-term engagement in both countries that did not end until the end of the 2010s/early 2020s. In the end both countries reverted to form once the NZDF vacated the premises, leaving as a result 10 dead soldiers, several more wounded, credible accusations of war crimes and a cost of millions of dollars.

The turn towards revitalising ties with Western security partners began with her government. Under her watch NZ negotiated the core of the bilateral Wellington and Washington Agreements on US-NZ defense cooperation (later signed into force by her successors). NZ also deepened its ties within the 5 Eyes signals-technical intelligence network involving Anglophone partners. That makes it pretty rich of her to now claim that NZ has become too ensnared in the 5 Eyes “vice” and has adopted too much of a Western-centric security perspective. In fact, it appears that beyond her obvious hypocrisy, Clark has returned in retirement to her lefty roots in order to burnish her tarnished progressive credentials with certain domestic and foreign audiences. But that does not make her right when it comes to NZ’s national security and contradicts her actions on the security front while in office.

Beyond her personal foibles, the Clark interjections in current NZ security debates is evidence that she clearly is out of the loop when it comes to current NZ intelligence and defence threat assessments, but more importantly, is more proof of a significant fracture within Labour Party circles (the domestic aspects concerning tax policy and other issues having already become public). For example, Foreign Minister Mahuta has been demoted within Cabinet and appears increasingly confined to ceremonial roles rather than substantive engagement with foreign policy formulation. Minister Little has clearly assumed a dominant role in foreign policy decision-making as well as in security affairs, having repeatedly stated that NZ “no longer operates in a benign strategic environment” in a pointed message for Clark to pull her head in (and to be sure, the rightward drift in Labour after Jacinda Ardern’s tenure as PM is palpable this election year).

He, of course, is objectively correct on that score. NZ has to adapt its strategic posture to the times, and these times are not those extant during Clark’s tenure as PM. She and like-minded others need to stop living in the past, clinging to outdated notions of foreign policy “independence,” and treating the PRC as a benign global actor. As I have written before, NZ operates with bounded autonomy in our foreign affairs, something that gives it flexibility but which does not allow it complete freedom of choice or action when it comes to things like Great Power competition. But for NZ to be flexible in light of existing constraints, it must clear-eyed about what is and what is not in its medium to long-term interests. That is because in these fluid transitional times re-shaping the increasingly multipolar global order, trade opportunism is just a short-term solution, especially when it runs counter to longer-term international security trends.

If I were to be charitable, I would simply say that Clark and her fellow travellers need to understand that the PRC of 2008, when the FTA was negotiated, no longer exists. Gone is the relative openness and transparency of the CCP regime led by Hu Jintao and in its wake has risen the repressive and expansionist regime led by Xi Jinping. Clark and others may wax nostalgic for a past where the PRC would adopt liberal internationalist principles when it comes to foreign affairs and join the community of nations as a democratising Great Power, but that sadly has not happened. Instead, Xi has consolidated his grip on power, increased authoritarian powers against civil society, moved to culturally extinguish restive minorities like the Uyghurs, and de facto annexed Hong Kong while sabre-rattling against Taiwan and usurping the maritime territory of its littoral neighbours around the South China Sea. All while expanding its military capabilities (including its nuclear arsenal) and conducting global political influence (United Front) and espionage campaigns that include large-scale as well as focused cyber intrusions, intimidation of diaspora populations and industrial-size patent and copyright theft. That in turn has reconfigured the threat environment in which NZ is situated. The recently released package of NZ security documents pointedly make reference to these facts, among other things.

Even if we agree that rising Great Powers like the PRC have to do what they have to do when it comes to expanding their power, and recognising that Western countries have done similar things and worse well up to the recent past, it is nevertheless clear that the PRC is not operating as good international partner on all fronts, and that its behaviour is very much inimical to the rules-based order that NZ professes to uphold in the international system. In fact, the PRC under President Xi explicitly rejects the premise of liberal internationalism citing, perhaps at least partially correctly, that the international institutional status quo was built by and for Western imperial and neo-imperial powers and their allies, not for the Global South.

In that light AUKUS may not be the solution to the changes in the South Pacific strategic landscape and in fact it might make things worse if it serves as a precedent for the erosion of its non-nuclear status and catalyst for further militarisation of the region. But resorting to knee-jerk objections based on a rosy vision of some ethereal past does not help advance the debate about where should NZ situate itself in the equation and what moral, ethical, and practical utility AUKUS rests upon, especially since as far as the AUKUS partners are concerned, it is a fait accompli whether NZ is involved or not.

In that light, assessments and arguments based on nostalgia for a benign strategic past where issue-linkage could be abandoned and trade and security could be decoupled now seems naive at best and foolhardy at worst. But then again, I do not have skin in the game when it comes to past foreign policy decisions that have, in a path-dependent way, led us to where we are today.

Media Link: “AVFA” on NZ-PRC trade and Prigozhin’s “pronouncement.”

In this week’s “A View from Afar” podcast Selwyn Manning and I decided to do a “near-far” sequence and look at the recent NZ trade mission to the PRC in broader context before turning our attention a discussion of what the Wagner Group incursion into Russia means in the short and medium terms. Short answer: Who knows? You can find the podcast here.

Geopolitical balancing in the W/SW Pacific.

Last year the People’s Republic of China (PRC) and the Solomon Islands signed a bilateral security agreement that includes police training and port visits by Chinese security advisors and naval vessels. This includes training in “crowd control” and protection of Chinese investments in the Solomons and opens the door to the possibility of forward basing of Peoples Liberation Army Navy (PLAN) assets in the archipelago. Needless to say, Western governments, including the US, Australia and New Zealand, reacted negatively to the deal (whose terms have not been entirely released), as have some members of the Pacific Island Forum community.

This year, the Australia, the UK and the US formally signed the AUKUS nuclear submarine agreement whereby Australia would first acquire, then manufacture nuclear powered submarines based on US and British attack submarine designs. The PRC and several Pacific Island Forum (PIF) states reacted negatively to the agreement (which may violate the 1997 Treaty of Rarotonga establishing a South Pacific nuclear free zone), although other Western Pacific Rim nations were either muted or supportive in their responses.

Also this year the US and Papua New Guinea (PNG) signed a bilateral security agreement that will allow US forces to operate on and from PNG soil and which includes a significant economic development component as part of the package. More recently, Japan and New Zealand signed a bilateral military cooperation agreement that is focused on joint operations in the South Pacific, initially for humanitarian reasons (such as the recent disaster relief efforts after the volcanic eruption in Tonga, where Japan participated) but opening the possibility of future joint military training and exercises in kinetic operations, especially in the West and SW Pacific maritime security environment. This follows on an intelligence-sharing agreement between Japan and NZ signed last year that allows better Japanese access to the 5 Eyes signals and technical intelligence collection alliance involving the US, UK, Australia and Canada as well as NZ, and which may pave the way for eventual Japanese integration into the alliance. Since intelligence sharing is part of military synergies and interoperability between different armed forces, this sequence of bilateral agreements would seem to be a natural progression in the NZ-Japanese security relationship.

What does all of this have in common? it is part of what might be seen as balance of power gamesmanship between the PRC and various rival powers in the SW Pacific region. Balances of power are, as the name implies, about balancing the power of one or more states against that of other states. These balances involve military, economic and diplomatic power and/or influence projection. Some so-called balances of power are actually not balanced at all and involve the domination by one state of a given strategic arena. This was the case for the US in the greater Pacific basin from WW2 up until recently. Now, with the decline of the US as a unipolar international “hegemon” and the rise of an emerging multipolar world that includes the PRC as a Great Power contender, the Western reaches of the Pacific basin have become a zone of contestation in which US and Chinese influence and power projection compete.

Other balances of power may be between two or more states sometimes operating as partners against common rivals and sometimes operating as sub-sets of a larger arrangement. Most balance of power subsets involve regional subsets of global rivalries.For example, NATO and the Warsaw Pact were European regional balancing vehicles contained within the larger bi-polar balance of power between the US and USSR during the Cold War. The contemporary rivalry between the Sunni Arab oligarchies and the Persian theocratic regime in Iran is a Middle East example of a regional balance of power in which competition for influence and support for armed proxies is part of the balancing game.

In East and Southeast Asia, several states have joined US-led coalitions in order to balance out the increasing PRC military presence in that part of the world. The Philippines, Singapore, Malyasia, Vietnam and Thailand, to say nothing of South Korea, Japan and Taiwan, all have bilateral military-security agreements with the US that are specifically designed to help counter Chinese power projection in Western Pacific Rim area of operations (AOR).

A way to think about this multi-tiered/multi-faceted geopolitical balancing is to envision as what economists call a “nested” game, i.e. a game or games played within a larger game or games. The largest game sets the broad contours of what happens within it, with smaller games or subsets focused on specific meso- or micro-aspects of the larger (macro) game and with each level of games reinforcing balancing plays on the others. A less academic way is to think of balance of power games as being akin to a Matryoshka Doll with the largest game holding within it a number of smaller subsets that give internal substance to the overall representation.

The action/reaction dynamic between the PRC and rival powers involves a) the attempt to ring-fence the PRC in terms of its power projection in order to limit its capability to influence, via the threat of coercion or otherwise, regional politics; and b) the attempts by the PRC to break out of the corralling project erected against it. Arguments aside about whether the breakout move or the ring-fencing project came first, that is now a fait accompli. The dynamic is out in the open in the South China Sea, where the PRC has abandoned its insular, land-based strategic perspective and announced its maritime presence with its island-building project in international waters and its increased deployments of armed vessels off the coasts of its littoral neighbours as well as out into the blue waters of the West and Southwestern Pacific.

In return, the US has shifted sixty percent of its naval assets to the Pacific (rather its traditional focus on the Atlantic), and moved significant contingents of long-range bombers and fighter aircraft to bases in Guam, Okinawa and in the near future Australia. It has bolstered troop numbers and rotations in places like the Philippines, South Korea and Australia and increased the tempo of joint exercises with a host of regional partners. Likewise, the French have increased the size of their Pacific army and naval fleets (headquartered in Noumea and Papeete, respectively), as well as the number of exercises with Australian and US forces in the SW Pacific. The ring-fencing versus breakout balancing project, in other words, is well underway.

For a podcast discussion based on this post, please head to “A View from Afar.”

This begs a larger question. Does the PRC have legitimate interests in the Pacific and as a Great Power should those interests be understood and respected? Think of the Belt and Road Initiative and other large Chinese investments in foreign infrastructure development and resource extraction and the great risks that they carry. Accordingly, the PRC has an interest in maintaining access to major sea lanes and potential resource opportunities in the Pacific region. The question is whether it wants to work in accordance with international norms and in concert with the international community on things like freedom of navigation and regulation of seabed mining or does it wish to control sea lanes and set its own rules when it comes to exploiting natural resources in the Western Pacific.

The issue seems to be not about the legitimacy of PRC interests but the way it behaves in pursuit of them. The South China Sea is an example: bullying of neighbors, violating international norms with its island-building projects, the illegitimate extension of sovereignty claims over the whole South China Sea basin, the attempt to claim and control key choke points in international waters like the Taiwan Straits. All of these moves would seem to set a bad precedent for PRC power projection aspirations further South and are therefore the basis for regional concern about its growing presence. Then there is the issue of governance and PRC checkbook/debt diplomacy reinforcing corruption in the PIF states.

All of this suggests that, contrary to expectations two decades ago, the PRC behaves like a bad global/regional “citizen.” It violates norms and the rules based order and ignores established codes of conduct regarding the pursuit of national interests when projecting power and influence abroad. It is militarily and diplomatically aggressive when asserting its claims abroad, and as the pandemic response demonstrates, it is less than transparent and truthful when dealing with the motivations for and consequences of its actions.

To be sure, it is equally true that the “rules-based international order” was made for and by Western Great Powers before and after WW2, and the PRC is correct in noting that when calling for a new global regime that is not dominated by Western interests. Western colonialism and neo-imperialism has much to answer for. But it should also be understood that the setting of international rules by Western powers was as much a form of self-limiting strategy o themselves as it was an imposed (Western dominated) status quo.

That is, the Western great powers agreed to set rules that limited their relative freedom of action in the international sphere as much as it consolidated their dominant positions within it. The reason for this was that by establishing mutually accepted self-limiting rules as codes of conduct in various arenas (say, trade), Western powers reduced the chances that competition could turn into conflict because mediation and arbitration clauses are part of the rules-based order. More than dominate the global South, they wanted to reduce the risk of unfettered competition on any front leading to conflict among them.

One of the assumptions that underpinned inviting the PRC into the WTO and World Bank was that the PRC would understand and accept the self-limiting strategy that was the conceptual basis of the rules-based order. It was assumed that by playing by the rules the PRC could be integrated peacefully as an emerging Great Power into the community of nations. The trouble is that those assumptions proved false and under Xi Jinping the PRC has embarked on a project of individual aggrandizement rather than multinational cooperation. In its military posturing and wolf warrior diplomacy, violation of things like intellectual property and patent rights, use of telecommunication technologies for espionage, violation of resource protection regulations etc., the PRC’s behaviour shows its contempt for the self-limiting premise of the rules-based order.

That could well be what alarms the West as much as any specific instance of Chinese aggression. If the rules-based order can be successfully ignored or challenged, then a turn to a Hobbesian state of nature or international state of anarchy becomes potential reality. Russia has already signalled its rejection of the rules-based order and is in a strategic alliance with the PRC that explicitly claims a need for the establishment of a new world order. Many in the global South, tired of Western imperialism, interventionism and rigging of the trade and diplomatic rules and mores of the current “liberal” internationalist system., have indicated support for a new global regime led by Russia and the PRC. Thus the concern in the West and allied nations is not about any specific action on the part of the PRC but about said actions being a trigger point that not only could lead to military conflict but to a collapse of the international consensus in support of the rules-based order (and of liberal internationalism in general).

The West-led ring-fencing coalition will argue that the matter is not about thwarting PRC ambitions but about getting it to accept the mutual self-limiting logic of the li, rules-based liberal international order. The Chinese will argue that the issue is precisely about thwarting PRC breakout ambitions to national greatness on the world stage.

In the end the argument will be made in Western security circles and amongst their allies that the regional balancing acts going on in the Western Pacific are due to the need for a defensive response to contemporary PRC military-diplomatic belligerency that, along with other authoritarian challenges, attempt to usurp the rules-based liberal international order. The PRC will counter that its breakout policies are designed to overcome years of Western-imposed containment pursuant to claiming its rightful place as a global Great Power leading a revamped multipolar international system. The arguments one way or the other are themselves evidence of geopolitical balancing at work, but the consequences should miscalculations occur or mistakes happen have the potential to make for much more than an imbalance in or rebalancing of relative power projection capabilities in the West and Southwest Pacific. At that point mutual self-limitation as a foreign policy consensus may become a thing of the past.

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Media Link: ” A View from Afar” first show of 2023.

After considerable delays related to the impact on Cyclone Gabrielle on both North Island coasts, the “A View from Afar” podcast with Selwyn Manning and I has resumed. After a brief introduction talking about the storm aftermath, we follow up the previous KP post about AUKUS, then briefly talk about the Discord classified material leaks and the power struggle in Russia. You can find the podcast here.

NZ and AUKUS PIllar 2.

As part of our preparations for the resumption of the “A View from Afar” podcasts, Selwyn Manning and I have been discussing topics for the first show. We have agreed on a micro/near-macro/far focus, with the first segment being about NZ, specifically about whether NZ should join the proposed “Pillar 2” of the recently announced AUKUS agreement that will see Australia acquire nuclear-propelled submarines based on US and UK submarine technologies. We will then move on to the impact of the Discord classified material leaks and perhaps, time permitting, what is going on in Russia recently. As part of my preparations, I shall use this post to outline some of the issues involved in NZ’s potential involvement with AUKUS Pillar 2.

AUKUS Pillar 1 involves the forward rotation of US Virginia class attack submarines based in Guam to HMAS Stirling outside of Perth, Western Australia beginning in 2027 and then the introduction of Australian nuclear-powered submarines based on the Virginia Class and UK Astute class attack submarines in the 2030s, followed by a new Australian class (the AUKUS class) in the 2040s. The SSNs (designation for nuclear powered attack submarines) will have the capability to conduct extended patrols off of New Zealand’s East Coast (which the current Collins-class diesel-electric Australian submarines cannot do) without entering NZ territorial waters (the 12 mile limit). This allows them to monitor adversary surface and submarine activity in and around NZ’s EEZ and further off-shore as well as conduct the submarine intelligence collection and intercept operations that modern submarines are primarily used for in times of peace. Undersea fiberoptic cables linking the US and Western Pacific are a major point of interest to all nations with a submarine intelligence operations capability since these are the main data exchange conduits across and within the Pacific that can be used for both offensive as well as defensive purposes in times of peace as well as war. The AUKUS submarines will certainly be used to these intelligence collection and interception ends.

It is very likely that, as has been the case with RNZAF P-3 maritime patrol and ASW aircraft in recent decades, the new RNZAF P-8 maritime patrol/ASW aircraft will be in regular contact with Australian and US naval assets, including the new RAN submarines. There is nothing new in that since the NZDF works towards seamless interoperability with Australian defense forces on land, sea and air and regularly conducts joint operations with ADF, US and other “friendly” forces across all battlefield dimensions, including tactical signals and technical intelligence. In a sense, nothing changes for NZ in terms of its defense posture now that AUKUS is in place. What does change is the modernity of the Australian naval platforms that it will be able to interact with in future operations as well as the broader range of Australian submarine coverage around all NZ shores (which in turn frees up US submarines for patrols further North in the Western Pacific). Otherwise, the current status quo remains.

For its part AUKUS Pillar 2 involves the non-nuclear, mostly economic and scientific aspects of the agreement. NZ would not have to loosen its non-nuclear status in order to participate in Pillar 2, either with regard to the submarines themselves or the land-based technologies that might be based or developed on its soil. The technologies involved include quantum computing, artificial intelligence, robotics, nano-technologies, unmanned aviation and sub-surface platforms, various sensing capabilities (e.g. acoustic, thermal, electronic, cyber) and related supply chain industries that have the potential for commercial as well as military-intelligence applications. For the Australian military industrial complex, AUKUS is a win-win. For NZ defense industrial circles, the same might apply if NZ joins Pillar 2.

When the agreement was announced Australian authorities touted the economic and scientific benefits that will accrue to Australia as a result of its signing. As the host state, Western Australia will not only see HMAS Stirling upgraded and jobs added to it in order to accomodate the presence of the nuclear submarines, but Perth and other parts of the state are envisioned to be in line to get some spill-over business in the form of input suppliers to the base. Seeing that, other Australian states have lobbied the federal government for a piece of the potential economic pie, noting for example that South Australia has a well-established boat-building capability and Victoria and New South Wales have extensive high technology sectors clustered around their main urban centres. Business leaders have joined the defense and security community in highlighting the high tech, value-added nature of both the products being developed as well as the jobs created by involvement with Pillar 2 initiatives.

Where does that leave NZ? A little while ago Minister of Defense Andrew Little said that his government “might consider” involvement in Pillar 2 once the specific details of it become known. His focus was strictly on the economic ripple effects and possible benefits to NZ of involvement in the scheme. However, in the past week Foreign Minister Nanaia Mahuta has rejected the very idea of involvement in Pillar 2, stating that policy decisions “are made by cabinet,” not by officials in the foreign or defense ministries. She went on to say that involvement in AUKUS was contrary to the “Pacific Way” of consensus building on key regional policy issues. This suggests that there is a fracture between the left and right wings of the Labour Party on the subject, something that will undoubtably come back into play as the October General Election draws closer.

We can safely assume that as a means of burnishing its conservative security and pro-business credentials, National will welcome involvement in Pillar 2 should it win in October. That is, to paraphrase notorious Iran invasion hawk Donald Rumsfeld, a “known known.” It may therefore be a better strategy for Labour to walk back its interest in Pilar 2 at least until the elections are over, if for no other reason than to not court problems with potential coalition partners like the Greens and Te Pati Maori. For their part, Australian security and business elites are unlikely to want to share the potential wealth of Pillar 2, so to speak, with NZ precisely because NZ politics is too unreliable when it comes to defense and security, especially when nuclear anything is involved. Unless Australian businesses are involved on NZ soil, why should the economic benefits of AUKUS extend beyond Australia, the US and the UK? As far as the agreement goes, NZ might as well be Canada in terms of economic involvement, and the Canadians do not constantly display a virtue signaling posture when it comes to nukes. From the standpoint of the principals involved, NZ is just trying to free-ride on their hard work.

More pointedly, as Jim Rolfe kindly alerted us in his comment below, most of what might be covered in Pillar 2 is already (at least seemingly) covered by the Five Country Technical Cooperation Program (TTCP). The TTCP is an extensive science and technology information-sharing arrangement between the 5 Eyes partners that covers a broad range of defense and intelligence-related scientific and technical subjects. Perhaps there are substantive and technical aspects to Pillar 2 that extend beyond what is covered by the TTCP remit and hence can be seen as a complement to or upgrade of already extant arrangements or a means of piggy-backing on what is already there when it comes to defense, security and intelligence industry collaboration. Remember that the pitch coming from Minister Little (as far as can be discerned) is about economic benefits that have the potential for “dual use” (i.e. military and civilian) applications, with the attendant spin-off civilian commercial effects highlighted rather than the military-security related flow-on effects per se.

One argument against NZ involvement in Pillar 2 is that it will be seen as a provocation by the PRC and thus invite retaliation. The PRC has a record for over-reacting to perceived snubs and NZ is a very dependent and hence vulnerable trade partner of it. Unlike Australia, which has strategic minerals that the PRC needs for sustain its industrial development and economic growth, NZ exports low value-added primary goods and derivatives to the PRC (think milk powders, lamb and beef, paua, crayfish and logs). When the PRC cut off Australian imports because of a diplomatic row, it went after things like wine and other non-essential goods, not the strategic minerals. NZ has no such export diversity from which to choose from when it comes to selective PRC trade sanctions, and with a third of its GDP grounded in primary good exports to the PRC, the direct and ripple effects of Chinese retaliation would be severe.

But there is a catch. The PRC already well knows which side NZ is on when it comes to international security affairs. It is well aware that NZ is part of 5 Eyes if for no other reason than the PRC is a prime target of 5 Eyes intelligence-gathering efforts, which includes a role for the NZ signals and technical intelligence agency, the GCSB. NZ has a military alliance with Australia, is a non-NATO NATO ally and has not one but two bilateral security agreements with the US (the Wellington and Washington agreements). Involvement in Pillar 2 is not necessarily an anti-PRC turn in NZ’s defense posture even if it may indirectly help the ring-fencing strategy that the US and its Pacific allies are currently undertaking vis a vis the PRC in the Western Pacific.

For the PRC, there are far more immediate concerns: the diplomatic-security (not full military) QUAD alliance involving Australia, India, Japan and the US; the recently renewed bilateral defense and security ties between the US and the Philippines, including forward basing rights for US troops as well as regular joint exercises; the change in the Japanese constitution that moves away from pacifist principles and which has facilitated a dramatic increase in defense expenditure, including on offensive weapons; the so-called US military “pivot” to the Indo-Pacific which has seen a majority of its naval assets moved into that theater along with increased numbers of amphibious troops such as the recently established US Marine expeditionary force based in Darwin and forward deployment of increased US Air Force assets in Guam; and the revitalisation of bilateral defense pacts between the US and various Southeast Asia states such as Singapore, which now has a permanent US navy presence at its naval base at Changi. There is the pushback from the US and regional allies against PRC belligerency towards Taiwan and its sovereignty-expanding island-building projects in disputed atolls across the South China Sea. The ramifications of all of these potential contingency scenarios are more pressing when it comes to Chinese military planning, so it is doubtful that NZ signing on to Pillar 2 will cause the PRC to react in an unexpected way even if it has that track record of over-reaction to perceived slights.

Plus, there is way for the PRC to exploit an advantage when it comes to NZ’s potential involvement in Pillar 2. It can use its extensive intelligence networks inside of NZ to try and obtain sensitive information about the industries and technologies involved as well as the political and military decisions that may surround them. Without firing a shot the PRC may well be able to undermine some aspects of AUKUS if it uses its intelligence assets in NZ and Australia wisely and adroitly. We can only assume that the NZ intelligence community is aware of this possibility and along with its AUKUS partners is planning counter-espionage efforts accordingly.

A significant aspect of AUKUS is that it violates the South Pacific Nuclear-Free Zone Treaty (an update of the 1986 Treaty of Rarotonga), especially Article 4 relevant to nuclear propulsion and the storage of fissile material. The stationing of the AUKUS submarines at HMAS Stirling may be an attempt to circumvent the Treat by claiming that the base is located on the Indian Ocean and outside of the SPNFZT area of coverage. But the truth is spelled out in the language of the original Treaty as well as its refinements. This is the area covered by the SPNFZT:

page10image36970000Should Australia breach (which is what many believe that it is doing) or renounce the SPNFZT, then it sets a precedent for other nuclear states to establish a non-weapons nuclear presence in the South Pacific if they can find a willing partner in the region (say, by forward basing a nuclear powered submarine in a Pacific Island Forum country much as the US will be doing at HMAS Stirling later this decade). The recent PRC-Solomon Islands bilateral security pact opens the door for such a possibility, and if that does in fact occur in the Solomons or elsewhere, then the taboo on stationing nuclear material of any sort in the region will have been broken.

On balance, for reasons both internal to NZ as well as those intrinsic to Australia, NZ involvement in Pillar 2 is in my opinion at least temporarily dead in the water. When it comes to high tech/value added production, perhaps NZ is better off supporting its nascent gaming, unmanned avionics and rocket booster-building industries rather than those associated with AUKUS, especially because the ripple effects of AUKUS will be felt in NZ anyway, however lightly in terms of public consumption. Moreover, with non-involvement the threat of PRC retaliation is mooted and the costs of conducting increased counter-espionage efforts against it are avoided as well.

From a political-diplomatic standpoint, Minister Mahuta may be right: NZ participation in Pillar 2 is letra morta.