Category Archives: Economics

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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5G Fight With China: Politicization Leads to Suboptimal US Outcome

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

The photograph depicts a man wearing a virtual reality headset.

A customer wearing a headset plays a virtual reality (VR) game, 2018. Source: Marco Verch via Flickr.

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

The Federal Communications Commission (FCC) announced a national 5G auction of large slices (up to 3.4 gigahertz) of the millimeter wave (mmWave) spectrum, along with $20.4 billion in subsidies over 10 years for rural connections, on April 12. The plan ignores expert cyber-security advice, has major security, timing, strategic and financial problems, and will not facilitate new competitors in the telecommunications market. The announcement by President Trump and FCC Chairman Ajit Pai, likely under the influence of telecommunications lobbyists, was a surprise to most experts and took place with no real public input. The auction of the mmWave spectrum is set for December 10. At the press conference announcing the decision, Chairman Pai thanked Director of the National Economic Council Larry Kudlow and Ivanka Trump for their assistance, with Ms. Trump giving a speech in support of the plan.

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President Trump Has Authority to Rebuild American Industry: Use the Defense Production Act of 1950

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

William R. Hawkins
International Economics and National

Security Consultant

Two aircraft carriers are photographed from above in the ocean.

The aircraft carriers USS Dwight D. Eisenhower (CVN 69), top, and USS Harry S. Truman (CVN 75) transit the Arabian Sea. Source: U.S. Navy via Flickr.

President Donald Trump’s trade reform campaign is not meant only to redress the massive deficit with the People’s Republic of China ($419 billion in goods last year, a net figure of how much American money is supporting jobs and production in China rather than at home). His policies have been rooted in national security concerns with a focus on the dangerous transfer of capital and technology that has empowered Beijing’s military buildup and aggressive behavior along the Pacific Rim and beyond. There is concern that the momentum of his efforts is slowing. He delayed elevating tariffs on Chinese goods from 10% to 25% on March 1st to give negotiations more time to reach a deal. But the PRC regime will never curb its pursuit of the wealth and capabilities it needs to replace the U.S. as the world’s preeminent power. It is a long-term economic contest between rivals for the highest of stakes imaginable.

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State Sponsorship of Uyghur Separatists: the History and Current Policy Options for East Turkestan (Xinjiang, China)

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

The map depicts China highlighting the different provinces of the country. It appears to be an old map.

A 1922 map of China. Source: John Bartholomew, The Times Atlas, London, 1922.

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

This article is a slight revision of a talk given on March 25, 2019, in Oxford, England. The associated university is not named at the request of the host organization’s president, who was concerned about possible repercussions.

I would like to thank the Terrorism Research Society (TRS) for kindly hosting this event. 

The historical map shown here is from 1922, and shows what China looked like when the Chinese Communist Party was founded in 1921 in Shanghai. It shows East Turkestan and Tibet in the west as autonomous regions — much more autonomous than they are today.

East Turkestan is now occupied militarily by China and officially called the Xinjiang region of northwestern China. In Chinese, “Xinjiang” means “new frontier”. But Xinjiang has an ancient history as a culturally diverse crossroads of trading on what the Chinese call “the silk road”, but which was actually more Iranian than Chinese. It was central to the ancient Persian trading areas called the Sogdian network by historians. It has been home to Uyghurs and other Turkic Muslims, to Mongolians, Indians, Greeks, Koreans, Buddhists, and Christians. Since at least the First East Turkestan Republic of 1933 is has been called East Turkestan by Turkic Muslim residents. The Chinese Communist Party in Beijing has indiscriminately labeled Uyghurs who support an independent East Turkestan today, as separatist and terrorist in their goals and means. The acronym of the Chinese Communist Party is the “CCP”. The CCP seeks to colonize and extinguish all linguistic, ethnic and religious diversity in Xinjiang today, in order to assimilate the territory under its own preferred Han Chinese race, and their own atheist communist ideology.

In the face of such extreme repression, some Uyghurs have indeed advocated separatism and utilized terrorism and violence, including street riots, as a means.

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Tariff Benefits Will Exceed Costs When National Goals Are Met

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

US President Donald Trump is photographed behind a podium, giving a speech outside. The US flag is visible in the background.

US President Donald Trump gives a speech. Source: Picryl

William R. Hawkins

International Economics and National Security Consultant

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