Category Archives: Americas

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

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

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]

A line graph shows three upward trends, labelled "Forex reserve", "Stock of external debt" and "FDI net inflow"

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

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Djibouti, New Battlefield of China’s Global Ambitions

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

Jean-Pierre Cabestan
Hong Kong Baptist University

Aircraft carrier of People's Liberation Army photographed on the ocean.

Aircraft carrier of People’s Liberation Army. Source: Wikimedia Commons

On August 1, 2017, China’s People’s Liberation Army (PLA) opened in Djibouti, a former French colony of Eastern Africa, its first outpost overseas. Presented as a logistic support facility rather than a full-fledged military and naval base (1,000 to 2,000 personnel), the PLA presence in this strategic spot is a game changer not only in this part of the world but also globally.

Located next to the Bab el Manded, the strait that controls any southern access to the red sea, Djibouti is of strategic importance not only for China. Since its independence in 1977, it has kept a meaningful albeit diminishing French military presence (1,450 personnel). Since 2002, it also includes a large American military base (4,000). More recently, for anti-piracy operations in the Gulf of Aden, other militaries, for example the Italians and the Japanese, have set foot in this tiny territory not bigger than Belgium.

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Who Set the Real Trap: Thucydides or Cobden?

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

William R. Hawkins
International Economics and National Security Consultant

Two helicopters are photographed in the air. The one suspends a Chinese flag below.

A military parade marks the 70th anniversary of the Chinese people’s victory in the War of Resistance against Japan and the end of World War II, Beijing, 2019. Source: Wikimedia Commons.

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

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

Anders Corr, Ph.D.
Publisher of the Journal of Political Risk

The photograph depicts a statue of a gun tied at the end to prevent it from shooting.

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. Source: Allan Watt via Flickr.

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

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

East Turkestanis and their supporters demonstrate in front of the White House. They are photographed holding blue and white flags and banners.

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

Salih Hudayar
Founder and Political Affairs Officer of the East Turkistan National Awakening Movement 

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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