“Winning” the Geopolitical Competition with China

Journal of Political Risk, Vol. 9, No. 2, February 2021

By Randall H. Cook

Source: Wikimedia

By all accounts, the U.S.-China strategic competition is alive and well.  The news that China displaced the United States in 2020 as the world’s preferred destination for Foreign Direct Investment (FDI) was followed closely by publication of a new “Longer Telegram” proposing a U.S. whole of government strategy to contain PRC Premier Xi Jinping’s ambition to realign the geopolitical structure with China as the new fulcrum.  The Biden Administration has sharply changed tack from its predecessor on a range of policies.  But on China, there is remarkable continuity.  The Trump Administration reset the U.S. strategic paradigm and there will be no going back.  Complex interdependent engagement is out; realist bipolar competition is the name of the new (but really, a back to the future sort of) game.

This framing tends to draw commentators and policy makers into some familiar debates and blind alleys.  Shouldn’t the U.S. oppose Chinese influence everywhere and always?  Isn’t every Chinese advantage necessarily a U.S. loss?  If the U.S. has fallen behind in the FDI race, this conventional wisdom holds, then the U.S. must “do something” to win back the FDI flow.  While this elegant approach to ‘keeping score” in the geopolitical competition is intuitively appealing, it fails to account for a real world that, in fact, remains dynamic and complex.  Worse, it leads to a reactive approach to interpreting events and choosing strategies that ultimately will disadvantage the U.S. in the ways that matter most. Continue reading

China Celebrates The Anniversary Of Its “Victory” In The Korean War

Journal of Political Risk, Vol. 8, No. 11, November 2020

By William R. Hawkins

Korean War. Units of the Korean People’s Army and the Chinese People’s Volunteers celebrating their joint defeat of an attack by US forces. 1953. (Photo by: Sovfoto/Universal Images Group via Getty Images)

On October 23, Chinese President Xi Jinping delivered a speech at a major gathering in Beijing to commemorate the 70th anniversary of the Chinese People’s Volunteers (CPV) entering the Democratic People’s Republic of Korea (DPRK) in 1950. He claimed the purpose of military intervention was to help North Korea resist U.S. aggression. The speech is representative of the kind of propaganda Beijing creates to send messages to audiences both at home and abroad at a time of rising tensions across the Indo-Pacific.

Xi’s speech is not the only event staged to celebrate China’s role in the Korean War. Wang Huning, a member of the Standing Committee of the Political Bureau of the CPC Central Committee, delivered a speech at the opening ceremony of a new exhibit dedicated to the war on October 19. According to state media, Wang’s history ran as follows. On October 19, 1950, as requested by the DPRK, CPV forces crossed the Yalu River to aid the DPRK’s fight in the “War to Resist U.S. Aggression and Aid Korea” (Beijing’s official name for the conflict). The war lasted until a truce was signed in 1953. A total of 2.9 million CPV soldiers entered the battlefield, and 197,653 died. New films and books are also being released pushing the theme that China was acting to defend Korea from an American invasion, motivated only by a desire to regain peace and stability. Continue reading

Facebook Libra And Reliance Jio Compete With WeChat By Targeting The Unbanked

Journal of Political Risk, Vol. 8, No. 9, September 2020

By Vikram Chopra

Source: Tim Bennett, (Unsplash).

There’s a technology arms race developing between the West and China. At the frontier are emerging technologies such as 5G, Big Data, AI, Blockchain and Crypto. China already has an advantageous position in many of these areas, including 5G and AI, and is looking to challenge Bitcoin and the US dollar with its digital Yuan.

Facebook’s recent moves with Whatsapp and Libra are interesting strategies in this larger game of global tech domination where the likes of WeChat and TikTok have been resoundingly successful market leaders. A big reason for the success of WeChat is its complete market domination within China’s 1.4 billion population. Furthermore, Wechat has seamlessly integrated into the daily lives of its users. It’s more than just a chat application: it’s a platform for shopping, ordering groceries, booking travel, dry-cleaning, reserving a table at a preferred restaurant and sending money among other services. Add the 40 million global Chinese diaspora who use WeChat to communicate with loved ones back home, and you can see why WeChat is one of the leading social media networks with over 1.2 billion users globally. Continue reading

China: The Struggle for Territory Eclipses Trade

Journal of Political Risk, Vol. 8, No. 6, June 2020

By William R. Hawkins

A tank unit of the Chinese Army underway. The number of tanks in China’s armored forces ranks third in the world. The main battle tanks have the ability to fight under nuclear and night conditions. Photo by: Sovfoto/Universal Images Group via Getty Images

In February 1999, President Bill Clinton opened a major foreign policy speech by  claiming, “Perhaps for the first time in history, the world’s leading nations are not engaged in a struggle with each other for security or territory. The world clearly is coming together.” This was the height of the post-Cold War delusion that history had come to an end and that a new world order had dawned based on a global partnership for economic development. Yet, Clinton knew that this was still a work in progress. In the same San Francisco speech he talked about conflicts in the Middle East, Southwest Asia and the Balkans, the threat of nuclear proliferation, and the need to bring Russia and China “into the international system as open, prosperous, stable nations.” The emphasis, however, was always on economics, a peaceful way to rise within classical liberal theory, transcending political issues and separating wealth from power in an interdependent world.

The classical liberal view held that wealth could be best pursued outside the bounds of sovereign territory. Borders were not to impede the movement of people, capital or goods which were motivated by material gain and self-improvement. Their frame of reference was the efficient use of resources world-wide to maximize global output, not their relative use among national sub-units. Peace would be the result of economic interdependence as trade could gain access to resources at less cost than conquest, and that once entangled in global supply chains, the cost of disruption for political reasons would be unbearable. The classical worldview was very popular in the 19th century prior to World War I and revived briefly during the interwar years only to be once again vanquished by World War II. The rapid onset of the Cold War kept such idealism in check, but it burst forth again after the Berlin Wall came down, symbolically opening the world to new possibilities.

Continue reading

Black Lives Matter: What The Attorney General Should Have Said

Journal of Political Risk, Vol. 8, No. 6, June 2020

By Barbara Childs

Attorney General William Barr and other U.S. officials speak at a press conference on June 4, 2020 in Washington, DC. Source: Wikimedia Commons.

Editor’s note: On June 4, Attorney General William Barr gave a press conference on the Black Lives Matter protests.

Attorney General William Barr was reasonable and respectful of the press at his conference. But I think it is unfortunately another example of what neuro-psychologist Rick Hanson calls “negativity bias”, an evolutionary phenomenon that “overlooks good news, highlights bad news and creates anxiety and pessimism.” In the past negativity bias worked to protect us. Now it can blind us to the present reality. Here is what I wish the Attorney General, President Trump and all our leaders would say instead.  Continue reading