Canada’s Conflict With China Can Be Solved With Joint Tariffs By Democratic Allies

(Front L-R) Brazil President Jair Bolsonaro, French President Emmanuel Macron, Indonesia President Joko Widodo, Chinese President Xi Jinping, US President Donald Trump, Saudi Arabia’s Crown Prince Salman, Japan Prime Minister Shinxo Abe, Argentine President Mauricio Macri, Russian President Vladimir Putin, Turkish President Recep Tayyip Erdogan, South Korean President Moon Jae-in, South African President Cyril Ramaphosa, Netherlands Prime Minister Mark Rutte, (Second row L-R) Spanish Prime Minister Pedro Sanchez, Egypt President Abdel Fattah el-Sisi, President of the European Commission Jean-Claude Juncker, Australia’s Prime Minister Scott Morrison, British Prime Minister Theresa May, India Prime Minister Narendra Modi, Canada Prime Minister Justin Trudeau, Italian Prime Minister Giuseppe Conte, European Union President of the European Council Donald Tusk, Senegal President Macky Sall, Chile President Sebastian Pinera and Singapore Prime Minister Lee Hsien Loong and third row’s invited guests attend the family photo during the G20 Osaka Summit in Osaka on June 28, 2019. Photo by Ludovic MARIN / AFP / Getty

Journal of Political Risk, Vol. 7, No. 6, June 2019 

By Anders Corr

Canada is in an awkward dispute with China. On the one hand, it wants two Canadians, Michael Kovrig and Michael Spavor, released from detention, under conditions some would call torture. The lights are left on 24 hours a day, they cannot see loved ones, they undergo daily interrogations without legal counsel present, and they only get short visits from their consular officials once a month. On the other hand, Canada wants to comply with its extradition treaty with the U.S., which wants Meng Wanzhou for alleged lies to financial institutions in order to evade Iran sanctions. Perhaps more urgently, Canada wants to continue its lucrative trade with China. A solution is for other allied democracies, including in the U.S. and Europe, to use their substantial power to impose tariffs on China to help out their fellow democracy, Canada. Our neighbor to the north could do the same, in its own defense. Canadian tariffs against China, linked to demands for the release of Kovrig and Spavor, would likely get them freed overnight.

China is not too subtle about its demands. It wants Meng sent back safe and sound to China. Until then, apparently, the two Canadians will be detained and Canada will undergo increasing difficulty with its agricultural exports to China. All of Canada’s China problems will go away if it just signs on the line and releases her from home detention, according to China and its Canadian intermediaries.

The Kovrig-Spavor predicament is awkward for Canada because it is arguably a result of decades of democracies’ prioritization of trade over human rights issues. That includes Canada. Now that Canadian citizens have been targeted, Canada is wondering whether it is getting the same cold shoulder from its allies that it gave to human rights activists in the past.

The newly-found Canadian human rights concern for Kovrig and Spavor rings hollow after it largely ignored, for purposes of trade, the thousands killed by China at Tiananmen Square in 1989, and the 1-3 million Uyghurs and other Turkic Muslims detained in reeducation camps. By not taking a stronger stand on all of China’s human rights abuse, but instead focusing on just the two Canadians of the millions harmed by China, Canada undermines its own moral authority, and with it, any advocacy for the human rights of the two Canadians.

Canada’s rule of law argument is unconvincing to the CCP. China sees its own authoritarian rule as preferable to the “chaotic democracy” of Canada and its allies. It sees human rights, including those of the two detained Canadians, as something that should be sacrificed for the greater good of China’s Communist Party rule, which is the type of meritocracy the world needs, according to the most sophisticated of Chinese propaganda. Continue reading

Can the U.S. and Saudi Arabia Defeat Iran?

Journal of Political Risk, Vol. 7, No. 6, June 2019 

By William R. Hawkins

U.S. President Donald Trump (R) meets with Crown Prince Mohammed bin Salman Al Saud (L) of Saudi Arabia in the Oval Office at the White House on March 20, 2018 in Washington, DC. Bandar Algaloud / Saudi Kingdom Council / Handout/Anadolu Agency/Getty Images

There is concern that President Donald Trump’s last minute decision to call off airstrikes against Iran signals weakness in the White House. The Commander in Chief stated, “We were cocked & loaded to retaliate last night on 3 different sights [sic] when I asked, how many will die. 150 people, sir, was the answer from a General. 10 minutes before the strike I stopped it, not….proportionate to shooting down an unmanned drone.” This explanation will feed critics the next time there is an American strike anywhere, for any reason, that kills enemy troops.

President Trump’s explanation did not address why Iran is shooting at drones (the one downed was not the first targeted). Drones are used to survey Iranian attempts to attack oil tankers, a major threat with the strategic goal of pressuring the international community to lift the sanctions on the sale of Iranian oil which are crippling the Iranian economy. The attack on shipping also threatens the lives of crews. By taking the one drone out of context, its loss seemed too minor to justify retaliation. This was a mistake in analysis that fostered a mistake in principle. Continue reading

Trade Wars, Sanctions and Business Appeasement

Journal of Political Risk, Vol. 7, No. 6, June 2019 

By William R. Hawkins

Chinese President Xi Jinping, center, addresses a U.S.-China business roundtable, comprised of U.S. and Chinese CEOs on September 23, 2015, in Seattle, Washington. The Paulson Institute, in partnership with the China Council for the Promotion of International Trade, co-hosted the event. Elaine Thompson-Pool/Getty Images.

In his book Appeasing Bankers, Jonathan Kirshner, the Stephen and Barbara Friedman Professor of International Political Economy at Cornell, argues that “Bankers dread war. More precisely, financial communities within states favor cautious national security strategies and are acutely averse to war and to policies that risk war.” He finds this to be a “universal” trait (at least within capitalist societies) evident throughout modern history. This should be kept in mind when watching the large swings in the stock market in response to reports about the progress, or lack of, in U.S.-China trade talks, Iranian threats and turmoil at the Mexican border. While Kirshner focuses on “stability” with an emphasis on inflation and debt accumulation, he notes the “breathtaking financial globalization” that took place in the post-Cold War period. This has made markets even more sensitive to the dynamics of a contentious international system. Fortunately, the stock market rapidly recovers from panics generated by headlines thanks to the fundamental strength of the U.S. economy.

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Turkish Breakup with the U.S. and NATO: The Illogical Logics

Journal of Political Risk, Vol. 7, No. 5, May 2019 

Dr. Jahara Matisek and Dr. Buddhika Jayamaha
U.S. Air Force Academy

Change of command ceremony is held at NATO’s Allied Land Command in Izmir, Turkey on August 03, 2018. Evren Atalay/Anadolu Agency/Getty Images

Abstract: With decades of debate about Turkey leaving NATO, the Turkish purchase (and delivery) of a Russian air defense system may be crossing the Rubicon. The Syrian Civil War, combined with how the U.S. and NATO decided to back Kurdish proxies in the fight against the Islamic State, has fed into the domestic logic of survival for Turkish political elites. With President Erdoğan and his revisionist political party ruling over Turkey the last decade, they appear to have finally refashioned the Turkish state by purging secularists from the government and military since the coup hoax of 2016. This new consolidation of political power has created a Turkish state with values incompatible with the West and strategies irreconcilable with NATO. However, these efforts by Erdoğan are undermining the long-term economic viability of the Turkish state, as established norms concerning the rule of law and property rights deteriorate, risking Turkey’s status as a reliable and stable ally in the region. We make these judgements on Turkey provoking its own expulsion from NATO based on interviews and fieldwork in Kurdistan and Turkey.

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US-China Trade War: Time is on the Side of the US

Journal of Political Risk, Vol. 7, No. 5, May 2019

By Ho-fung Hung, Johns Hopkins University

The US-China trade war has unfolded for nearly a year now. After some false hope of a quick deal, China’s backpedaling in May from earlier promises to stop requiring a technology transfer from US firms in China, and to do more to protect intellectual property, obliterated such hope. Trump’s reaction of raising new tariffs on Chinese goods, followed by China’s retaliation in kind, led to an escalation.

Bipartisan Support of Trade War with China

This escalation of the trade war, interestingly, has not unleashed criticism of President Trump in the US. Sources from the US negotiation team and those from its Chinese counterparts both verified China’s last-minute withdrawal of earlier commitments. There is little doubt that Beijing rather than Trump is to be blamed for this re-escalation. Trump’s strong response to the Chinese backpedaling instead got rare bipartisan support. Congress Democrats are on the same side with the President, judging by Senate Minority Leader Chuck Schumer tweet, “Hang tough on China, President @realDonaldTrump. Don’t back down. Strength is the only way to win with China.”[1]

Figure 1. China’s External Financial Position. (Source: World Bank)

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Ukraine’s Election Indicates A Strengthening Democracy

Journal of Political Risk, Vol. 7, No. 5, May 2019

By Robert T. Person, United States Military Academy

Petro Poroshenko, Ukraine’s president, left, speaks as Volodymyr Zelenskiy, comic and presidential candidate, listens during a debate at the Kiev Stadium in Kiev, Ukraine, on April 19, 2019. The two candidates for Ukraine’s presidency squared off in a long-awaited and often bad-tempered debate, their last chance to sway opinion before the April 21 runoff, which Zelenskiy won. Vincent Mundy/Bloomberg via Getty Images

With Ukraine’s 2019 presidential campaign now complete, the country finds itself – as it has on numerous occasions in the last 15 years – at a historic crossroads.  Actor-comedian Volodymyr Zelenskiy’s stunning landslide victory over incumbent president Petro Poroshenko by a margin of 73.2 percent to 24.4 percent presents challenges and opportunities with far-reaching implications for Ukraine, Russia, the European Union, and the United States.  On the domestic front, another peaceful transition of power through democratic elections indicates that Ukrainian democracy – though far from perfect – is alive and gaining strength.  In public comments Zelenskiy has reaffirmed Ukraine’s commitment to democratic rule, drawing a sharp contrast with Russia’s authoritarian politics.  On the foreign policy front, he has pledged to stand up to Russia and continue Ukraine’s path to NATO membership, even while expressing a willingness to “negotiate with the devil” to bring the war in Eastern Ukraine to an end.   This is something the prior president, Petro Poroshenko, refused to do, though Zelenskiy’s chances of breaking the stalemate in the Donbas remain slim.  Though it is too early to tell what the future holds for the new Ukrainian president and the country he leads, there can be little doubt that Ukraine will continue to be a key zone of strategic competition – and likely conflict – in Eastern Europe, much as it has been for the last five years.

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Who Set the Real Trap: Thucydides or Cobden?

Journal of Political Risk, Vol. 7, No. 4, April 2019

By William R. Hawkins

Chinese President Xi Jinping speaks as Chinese and foreign naval officials listen during an event to commemorate the 70th anniversary of the Chinese People’s Liberation Army (PLA) Navy in Qingdao, in eastern China’s Shandong province on April 23, 2019. China celebrated the 70th anniversary of its navy by showing off its growing fleet in a sea parade featuring a brand new guided-missile destroyer. Mark Schiefelbein / POOL / AFP / Getty

The People’s Republic of China (PRC) has been presenting the world with a number of recent events and declarations which appeasers in the West will undoubtedly use to reinforce the claim by Graham Allison that resisting China’s rise is no longer possible because “China has already passed the United States” in economic strength and military potential.

The People’s Liberation Army Navy celebrated its 70th anniversary with several provocative exercises (including around Taiwan) and a multinational naval review which featured new designs for surface warships and nuclear submarines, as well as China’s first aircraft carrier, the Liaoning (named for a province on the North Korean border). The PLAN has declared that the carrier has graduated from training and testing to a combat ship ready for action. Two more carriers are under construction. The one similar to the Liaoning is expected to enter service by year’s end. The second is much larger and will bring China’s capabilities to new levels. At the naval review, a new class of guided missile destroyer was unveiled. It is larger with more missile-launching cells than the U.S. Navy’s Burke-class destroyers which are the mainstay of our surface fleet. Showing his commitment to China’s naval expansion, President Xi Jinping donned a military uniform and sailed with the armada during the April 23 celebration.

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Great Power Political Convergence and UN Reform: Solving the Democratic Deficit

Journal of Political Risk, Vol. 7, No. 4, April 2019

By Anders Corr

A bronze sculpture titled “Non-Violence” by Swedish artist Carl Fredrik Reuterswärd stands to the north of the United Nations Building in New York. It depicts the knotted barrel of a Colt Python .357 Magnum. Reuterswärd designed the sculpture following the murder of songwriter John Lennon. Credit: Vicente Montoya/Getty.

The international system operates across military, economic, and diplomatic hierarchies of states situated in competing alliances and international organizations. The major powers assert the predominance of influence in these alliances and international organizations, leading to a severe and global democratic deficit. Huge numbers of people, most notably the approximately 18% of the world’s population living in China, and 2% of the population living in Russia, have no democratically-appointed representation at the United Nations or influence in the world’s most important alliance systems.

The global democratic deficit leads to critical inefficiencies and unfair policies. States use unequal access to military, wealth, and knowledge resources to influence international organizations and alliance systems for individual state gains that lead to global inefficiencies and trade-offs where individual major power goals contradict the public good, or the national interests of other states. Perhaps the most dangerous such inefficiency is the rising risk of nuclear war, as countries like the U.S. and China compete to impose their competing visions of the future on the world.

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East Turkistan Needs You

Journal of Political Risk, Vol. 7, No. 3, March 2019

East Turkestanis and their supporters demonstrate in front of the White House, calling for US support for an independent East Turkestan, currently occupied by China. The demonstration occurred on November 12, 2018, the anniversary of the founding of the First and Second East Turkestan Republics. Photo: ETNAM

By Salih Hudayar

Few Americans have ever heard of “Xinjiang”. Even fewer have ever heard it called by its proper name (the name its oppressed inhabitants use): “East Turkistan”. This strategically-significant region, my ancestral Homeland, is home to an ethnically Turkic, Muslim population of people called the Uyghurs. On official maps, it borders eight countries, but most Uyghurs will count China and Tibet as separate, independent countries and tell you that it borders ten. And therein lies the issue.

The vast majority of Uyghurs, like the vast majority of Tibetans, don’t see themselves as part of China. They see China as an occupying force, and rightly so. Up until late 1949 — when the Chinese Communist Party invaded the region and overthrew our government — it was an independent Republic. Most Uyghurs feel no connection to Beijing. Imagine for a moment that the United States Army invaded the Canadian province of Alberta. Surely the residents of Alberta would feel no connection to Washington, D.C.

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The Quad of India, Japan, Australia and the US: A Work in Progress

Journal of Political Risk, Vol. 7, No. 3, March 2019

By Commodore Anil Jai Singh, IN (Retd)

An Indian Navy sailor stands guard on the deck of the INS Shivalik during the inauguration of joint naval exercises with the United States and Japan in Chennai on July 10, 2017.
ARUN SANKAR/AFP/GETTY

The recent statement by the Commander-in Chief of the US Indo-Pacific Command Admiral Phil Davidson at a press conference in Singapore that the ‘Quad’ or the Quadrilateral Security Dialogue between the USA, Australia, India and Japan may need to be shelved was met with a mixed reaction in the regional maritime security discourse. However, this was not a fatalistic view but rather a tacit acknowledgement of the divergent views amongst the Quad partners on certain fundamental issues. He made this statement based on his discussions with Admiral Sunil Lanba, the Chief of the Indian Navy at the recent Raisina Dialogue in New Delhi where Admiral Lanba said that there was not an immediate potential for the Quad.

The idea of a Quad was first articulated by the Japanese Prime Minister Shinzo Abe during the East Asia Summit in 2007; in the same year he spoke of the confluence of the two oceans – the Indian and the Pacific- and introduced the term Indo-Pacific during an address to the Indian Parliament. The first attempt to shape the Quad was the decision to enhance Exercise Malabar — the annual bilateral Indo-US naval exercise into a quadrilateral construct. However, China understandably expressed strong reservations about this as an anti-China initiative. Australia succumbed but a trilateral exercise was nevertheless held between the US, Japan and India.  For the next decade, while the Quad was spoken of periodically at various fora, very little was actually happening on the ground to give it concrete shape.

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