Greenpeace Working to Close Rare Earth Processing Facility in Malaysia: the World’s Only Major REE Processing Facility in Competition with China

Journal of Political Risk, Vol. 7, No. 10, October 2019

By Michael K. Cohen

Partial screenshot from the Greenpeace website, taken on 10/3/2019, detailing Greenpeace’s leading role in the ‘Stop Lynas’ campaign. Source: Greenpeace.

Rare earth – the colorful metals derived from 17 extraordinarily hard-to-mine chemical elements – are a little-known part of all of our lives. They are crucial elements of mobile phones, flat screen televisions and more than 200 other consumer electronic devices that we use every day.

But these exotic elements are needed for more than just phones and televisions. Their lightweight properties, and unique magnetic attributes, are indispensable to military assets that use sonar, radar or guidance systems, lasers, electronic displays, and myriad other mechanisms.

The vast majority of rare earths that countries need to protect themselves are produced by one country: The People’s Republic of China. And it does not appear that the situation will change in the near future. China has in recent years worked to monopolize the production of these elements as a strategic resource.

China has made rare earths available to countries around the world that need them, but that could abruptly change. Chinese state-controlled media has warned that sales of rare earths to the United States could be restricted as part of a new front in the ongoing trade war. Continue reading

Defeating China: Five Strategies

Journal of Political Risk, Vol. 7, No. 7, July 2019

By Anders Corr

Fighter jets of the U.S. Navy Blue Angels demonstration squadron fly over the Lincoln Memorial during the Fourth of July Celebration ‘Salute to America’ event in Washington, D.C., U.S., on Thursday, July 4, 2019. Al Drago/Bloomberg via Getty Images

Since 1989, when China massacred thousands of its own people in Tiananmen Square to stop a pro-democracy protest, the country has arguably grown into the world’s most powerful and centralized state. China’s GDP by purchasing power parity (PPP) is approximately $25.4 trillion, while the U.S. GDP PPP is only about $20.5 trillion.[1] One man, Chinese President Xi Jinping, has almost total control of China’s economy and a leadership position for life. U.S. President Donald Trump, however, has only partial control of the smaller (by purchasing power parity) U.S. economy, and must be reelected this year to continue his tenure for a maximum of an additional four years.

China’s accelerating economy has fueled its military spending, which increased approximately three-fold since 2008 to $177.5 billion in 2019,[2] not including substantial programs hidden from public sight. Military and political analysts estimate that in the South China Sea and environs, China’s military capabilities already match or exceed those of the United States in many respects, as does China’s diplomatic influence. This puts pressure on the U.S. military to withdraw from the region, claimed as territory by Beijing. Over the next 30 years, China’s global military capabilities could exceed those of the United States, which would make it difficult for the U.S. to pose a credible threat against China’s already ongoing territorial expansion.[3]

China’s actions are now indistinguishable from those that would serve a goal of China’s global rule in perpetuity. Hopes for engagement as a strategy to turn China into a democracy have now been dashed. Instead of us changing them, they are changing us through influence of our own political and economic leadership. There is a danger that as China ascends to the world’s most powerful nation, other nations will follow its lead through bandwagoning. The dual and increasing danger of bandwagoning and China’s influence means that a shift in strategy is needed.

Engagement should give way to a more aggressive strategy against China in order to defend freedom, democracy and human rights globally, and to incent allies and potential allies to declare themselves on the right side of the dispute before they enter the gravitational field of China’s economic influence.[4]

As argued below, this should include labeling China as not just a competitor, which would imply that all play by the same rules, but as an adversary or even an enemy. Strategies must be calibrated accordingly to defeat the country, and more specifically, its guiding organization, the Chinese Communist Party (CCP).

There are at least five interrelated and overlapping strategies required to defeat the CCP: 1) Defend, 2) Ally, 3) Contain, 4) Divide, and 5) Democratize. Many of these strategies are overlapping, and have been proposed previously by a range of authors, cited here. They are all underway to some extent in various countries, however they are not being implemented at the scale and intensity needed to win. That should change now, or we risk continued relative weakening against the enemy.

Continue reading

Geopolitics and the Western Pacific: An Interview with Leszek Buszynski

The book cover of Geopolitics and the Western Pacific: China, Japan and the US, by Dr. Leszek Buszynski. Routledge, 2019.

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

This interview with Dr. Leszek Buszynski, author of Geopolitics and the Western Pacific: China, Japan and the U.S. (Routledge, 2019), took place by email with Dr. Anders Corr between May 31 and June 12.

Anders: What are some of your recommendations in the book?

Leszek: The recommendations are in the final chapter and have been written from the perspective of Australia as a a middle power and ally of the US.  Basically, the U.S. relies excessively on military power to counter China but this is creating the fear of a US-China clash in the region from which China benefits, particularly within ASEAN.  Scuttling the Trans-Pacific Partnership (TPP) was a mistake because it is a way of bringing together the states of the region into cooperation with the U.S., Japan and Australia in a way which would offset Chinese influence.

Anders: Don’t you think that China is also creating fear with its military buildup? Wouldn’t countries like Japan and South Korea be even more fearful if they did not have the U.S. military there to protect them?

Leszek: This is not the issue, the answer is of course. But without a broader US presence in the region, one that is not just military based, regional countries such as those in ASEAN would feel the pressure to gravitate to China.  China has a way of undermining the U.S. presence and its alliance system by playing on regional fears of conflict and instability, the Philippines under Rodrigo Duterte is a case in point. America has to counteract that. Continue reading