Sanction Hong Kong, For Its Own Sake

Journal of Political Risk, Vol. 7, No. 10, October 2018 

Silhouette of man standing on top of mountain with reflection of urban cityscape. Source: Getty Images.

By Ho-fung Hung, Ph.D.

The decision of the Hong Kong government to expel Financial Times Asia editor Victor Mallet from Hong Kong has already provoked widespread concern about freedom of speech and autonomy of Hong Kong in the international community. Mr. Mallet broke no law, and the Hong Kong government’s decision is obviously based on his role as moderator of an August 14 talk by pro-independence activist Andy Chan at the Foreign Correspondents Club. This unprecedented expulsion of a foreign journalist takes Hong Kong a big step closer to the status quo in mainland China.

The UK Foreign Office, US Consulate in Hong Kong, European Union, and American Chamber of Commerce in Hong Kong, all issued statements criticizing the decision of the Hong Kong government. In particular, AmCham president Tara Joseph pertinently links the case to the concern about Hong Kong’s continuous viability as a financial center, saying that, “The rejection of a renewal of work visa for FT correspondent Victor Mallet sends a worrying signal. Without a free press, capital markets cannot properly function, and business and trade cannot be reliably conducted.”

Beijing has long said that Hong Kong is no longer important to China economically, because China’s GDP has been roaring ahead over the last two decades since Hong Kong’s sovereignty handover. But in fact, Hong Kong’s special status as an autonomous economy separate from mainland China is still serving China very well.

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Remove Duterte And Modernize The Armed Forces Philippines

Journal of Political Risk, Vol. 7, No. 10, October 2018 

By an Anonymous Filipino

Troops pledge their allegiance to the Philippine government and constitution during a prayer rally in Camp Aguinaldo, Quezon City suburban Manila on May 3, 2010. Photo: Jay Directo/AFP/Getty Images.

This is a critical time for the Philippines, in terms of economics, politics, and national defense. Immediately at the start of President Rodrigo Duterte’s term the congress was already submissive to him. There were just a few dissenting Senators. But Duterte is taking them down one by one, especially the opposition stalwarts. Senator Leila de Lima was accused of a sham case, conspiracy to commit illegal drug trading (1), and is now in prison. Senator Antonio Trillanes is having his amnesty revoked [2]. Duterte is under criminal investigation, breaking the Constitution, running the Philippines into the ground, and gradually giving our sovereignty away to China. The Armed Forces of the Philippines (AFP) is slowly losing its allies and competitive edge against China, the Philippines’ biggest threat. Duterte should immediately be removed, and the AFP should seek the help from its traditional allies to quickly modernize.

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China Swaggers, But Time Not On Its Side

Journal of Political Risk, Vol. 6, No. 1, January 2018

By Arthur Waldron

I have some thoughts about the “year of doom” 2018 that appeared on the web yesterday. They are as follows:

(1) China has undertaken her dangerous policies for internal reasons. That is how China is. She has no pressing or other need for Scarborough Shoal in the Philippines EEZ, for example.

(2) We know (1) is true because Xi Jin Ping goes on an on about loyalty, reshuffles the army, creates the most boring flag raising ceremony in history, and was reported to get in a fight with a general about whether the army should be made national instead of party. Who after all is going to take a bullet for Xi? We need to get to the root of this domestic phenomenon, but how is an almost impossible question.

(3) China’s tactics have sought to win without fighting by overawing small countries (and not-so-small countries, like India and Indonesia) using their awesome military as no more than a threat and their awesome economy likewise. The problems are (a) even the Philippines is not overawed and China is very much on the wrong side of international law and (b) this is important: China overestimates her own achievements. Maoism was a cesspool. She has gotten out rinsed off, and started some large but financially dodgy corporations. Skyscrapers have sprouted and tilted.

Group of People’s Liberation Army (PLA) soldiers in China. Credit: Getty Images.

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Perspectives for development of China-EU relations in the infrastructure investment sector: a case study of COVEC’s investment in Poland

Journal of Political Risk, Vol. 5, No. 8, August 2017

By Paulina Kanarek

In 2009 China Overseas Engineering Group (COVEC) was the first Chinese company to win a public works contract in a member state of the European Union. Two years later COVEC decided to withdraw from Poland and its failure to construct a section of the A2 motorway between Warsaw and Łódź brought up questions regarding access to the EU’s public procurement market by third countries.

This research explores the implications of COVEC’s investment for bilateral relations between China and Poland. Through analysis of this particular case study of the unsuccessful entrance to the EU infrastructure market, this work attempts to uncover whether the fault lies in the communication gap between European and Chinese actors and zero-sum mentality or it is a case of policy failure.

This study will reveal the particular model of operations that the Chinese companies try to pursue in Europe, basing on their previous experiences in the African construction market. By showing that the model which relies on offering the lowest bid and then renegotiating the contract cannot work due to the European Union’s legal framework and Polish domestic laws, this evidence-based research will argue that COVEC’s investment was a classic example of project management failure.

Furthermore, this research aims at casting light on the broader context of the political economy of China’s relations with the European Union. Following the national interest while adhering to its obligations as a member state of the EU, Poland serves as a good example to show the complexity of relations between the PRC and highly fragmented EU.

Through qualitative research, including elite interviews, this work intends to fill in the gap in academic research on China’s relations with the Central and Eastern European states, assessing whether there is space for progress in China-EU relations in the infrastructure investment sector.
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DUP’s Ascent in Westminister and Renewed Political Instability In Belfast

Journal of Political Risk, Vol. 5, No. 7, August 2017

By Arindrajit Basu

As the United Kingdom attempts to recover from the fall-out of Theresa May’s failed gamble via an artificial ‘confidence and supply’[i] arrangement with the Democratic Unionist Party from Northern Ireland, we must consider what this billion pound deal[ii] means for the immediate future of the ‘troubled’ devolved Parliament in Stormont.

United Kingdom Prime Minister Theresa May meets with Arlene Foster, head of the Democratic Unionist Party.

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Serbia’s EU bid and the Kosovo dialogue

A Serbian police officer guards a mass grave site in the village of Rudnica, 280 kilometers (170 miles) south of Belgrade, Serbia, Thursday, April 17, 2014. The mass grave is believed to contain at least 250 bodies of Albanian victims killed during the Kosovo war. (AP Photo/Darko Vojinovic)

A Serbian police officer guards a mass grave site in the village of Rudnica, 280 kilometers (170 miles) south of Belgrade, Serbia, Thursday, April 17, 2014. The mass grave is believed to contain at least 250 bodies of Albanian victims killed during the Kosovo war. (AP Photographer: Darko Vojinovic)

Journal of Political Risk, Vol. 2, No. 4, April 2014.

By Raquel Montes Torralba

With Serbia seeking to join the European Union (EU), as did Croatia in July 2013, European officials have advanced a pre-condition to be resolution of major disputes with Kosovo. In April 2014, Serbia and Kosovo celebrate the first anniversary of an agreement meant to normalize relations. Positive developments include the March 2014 election of a pro-EU majority in Serbia’s parliament, local elections in North Kosovo held in a generally peaceful manner, as well as progress on technical issues such as border control and police transfer. Nevertheless, the political context for 2014 could be derailed by upcoming general elections in Kosovo, the creation of a Kosovo Army, and establishment of a war crimes court for Kosovo’s ethnic Albanian rebels. More particularly, all these factors could impact the creation of a Community of Serb Municipalities, the keystone of the Serbia-Kosovo Agreement. Continue reading