Month: October 2018

The USMCA, China and the Politicisation of Economic Intercourse

ICSLeave a comment

Uday Khanapurkar, Research Intern, Institute of Chinese Studies

Strategic competition between the USA and China continues apace in the economic domain with tit-for-tat tariffs and strengthened investment regulations. This reassertion of sovereignty has irredeemably politicised economic intercourse. The market share that a state’s productive agents command has, akin to a conventional resource such as oil, emerged as a veritably prominent component of national power, thus bringing the zero-sum character of the international system to the fore. So much so, that the restructured Free Trade Agreement (FTA) between the US, Mexico and Canada, or the USMCA, also reflects the adversarial tenor in US-China relations.

Much attention has duly been afforded to article 32.10 of the USMCA since it quite explicitly targets China. According to this provision, should any signatory to the agreement enter into an FTA with a non-market economy (read China), the other parties reserve the right to dismantle the USMCA following a six-month notice. Continue reading “The USMCA, China and the Politicisation of Economic Intercourse” →

Re-emerging importance of South Pacific Islands

ICSLeave a comment

Ms. Prarthana Basu, Research Assistant, Institute of Chinese Studies

At the Pacific Islands Forum in September this year, Nauru, a ‘small’ island country, accused China of heavy-handed behaviour in its attempts to ‘buy’ its way through the region. This brings into sharp focus the increasing centrality of the South Pacific region in the tumultuous geopolitical landscape of the Indo-Pacific. The South  Pacific islands have come into prominence owing to two main factors: climate change, and several layers of power tussles, the most significant of which is between China and the US.

Climate change has had a devastating impact on several island countries of the region, including but not limited to flooding and tsunamis, which has also fuelled fears about its future consequences. On the strategic tussle front, China has invested heavily in these islands to counter Taiwan’s growing relationships in the region, such as with Nauru, Continue reading “Re-emerging importance of South Pacific Islands” →

Understanding US responses to the South China Sea Dispute

ICSLeave a comment

Saurav Sarkar, Research Assistant, Institute of Chinese Studies

The National Bureau of Asian Research, an American non-profit research institution, recently published a study titled ‘Tenets of a Regional Defense Strategy: Considerations for the Indo-Pacific’. The study comprehensively outlines multiple challenges facing American policymakers in the near future in the Indo-Pacific region – ranging from tensions between India and Pakistan to the militarisation of the South China Sea (SCS).

While the study in itself deserves a read to better understand the present situation and potential crises in the region, there was one particular footnote that demands particular attention. In it, Admiral (Retd) Jonathan Greenert, former Admiral in the United States Navy, talks about his interactions with Admiral (Retd.) Wu Shengli, former Commander of the People’s Liberation Army Navy (PLAN), who made it clear to Greenert that China expected a more ‘forceful’ reaction from the US when it first began building islands in the SCS. The Barack Obama administration’s response, apparently, was not robust enough, which further emboldened China.

On 1 October in New Delhi, a conversation was held between former Australian Prime Minister Kevin Rudd and former Indian Foreign Secretary, Shyam Saran, on ‘Shift in Power Balance – India, US and China’. Continue reading “Understanding US responses to the South China Sea Dispute” →

Rohingya Crisis: an opportunity for China?

ICSLeave a comment

Navreet Kaur Kullar, Research Intern, Institute of Chinese Studies,

The plight of Rohingya Muslims in Myanmar’s Rakhine state has drawn considerable international attention. The attacks carried out by the Arakan Rohingya Salvation Army (ARSA) on the security installations, sparked the Tatmadaw’s crackdown on the ethnic Rohingyas and thousands of them lost their lives and hundreds of thousands more got displaced. The bloodshed has smeared the international standing of Nobel Peace laureate Aung San Suu Kyi, who led National League for Democracy to a victory in historic elections of 2015. Her supporters have realised that she is either unable or unwilling to take on the military, which is still considered to be the most powerful institution in the country, despite the recent democratic reforms. Continue reading “Rohingya Crisis: an opportunity for China?” →

Tightrope walk for incoming Maldivian president

ICSLeave a comment

Gunjan Singh, Research Associate, Institute of Chinese Studies

The results of the recent election in Maldives are an indication that a major challenge to the Chinese Belt and Road Initiative is emerging from the vicissitudes of domestic politics in BRI partner nations.The victory of Ibrahim Mohamed Solih of the Maldivian Democratic Party (MDP) in the island nation’s presidential election reiterates the fact that there is something very wrong with the direction of Chinese investment. In the last few years there has been a rise in sentiment against Chinese investment in the countries where the BRI is in play.

The election also strengthens the impression that in the South Asian region, China will have to work at multiple levels to counter Indian influence. Continue reading “Tightrope walk for incoming Maldivian president” →

China-North Korea Relations under Xi Jinping

ICSLeave a comment

Gunjan Singh, Research Associate, Institute of Chinese Studies

North Korea has regarded China as its most natural ally and supporter since the Korean War. The relationship had begun to show signs of strain after the continued nuclear tests by North Korea and it became increasingly difficult since Xi Jinping came to power. The last Chinese leader to visit North Korea was Hu Jintao in 2005. Even though China is the only country helping North Korea manage its domestic problems and economic difficulties, the relationship has started to show signs of strain. Beijing will not totally abandon Pyongyang or push it towards a total breakup as the influx of refugees is a major concern for China and for its border security and regional peace. However, the last few years have highlighted that China is ready to use its leverage to steer North Korea’s behaviour in a more acceptable direction.

There were reports that Xi Jinping may visit Pyongyang on September 9 for the 70th anniversary of the North Korea’s Foundation Day. Continue reading “China-North Korea Relations under Xi Jinping” →