Tag: China

Why Is Washington the Policeman of the South China Sea?

For months, the United States has contemplated launching a series of naval patrols in the South China Sea.  Pentagon leaders are especially determined to defy China’s position that building “reclaimed” or artificial reefs and islands also creates rights to new territorial waters surrounding those entities.  On October 27, the Navy sent the guided-missile destroyer USS Lassen on a “freedom of navigation” patrol within 12-miles of a man-made island in the Spratly chain.  That action triggered an immediate outburst, with China’s Foreign Ministry admonishing the United States to “immediately correct its mistake and not take any dangerous or provocative acts that threaten China’s sovereignty and security interests.”

Washington’s action is a dangerous escalation of already worrisome tensions in the South China Sea.  It is understandable that, as the world’s leading maritime power, the United States is unwilling to accept Beijing’s extremely broad territorial claims in that body of water.  The full extent of China’s claims would cover nearly 90 percent of the South China Sea.  U.S. officials stress the importance of the sea lanes that pass through the area.  They note that some $5 trillion in oceanic commerce is involved, and that unimpeded navigation is especially crucial to the trade and overall economies of Japan, South Korea, Australia, and other U.S. allies in East Asia.

The importance of continued free navigation in the South China Sea is obvious, but two points are relevant.  First, China has made no credible threat to disrupt the trade routes.  Indeed, given China’s vast stake in international trade, threatening trade flows in any region would be risky to the point of self-destructive folly.  Second, one has to ask why the United States is expected to take the lead in dealing with this issue.  A Reuters article notes that “U.S. allies such as Japan and Australia, are unlikely to follow with their own direct challenges to China, despite their concerns over freedom of navigation along vital trade routes.”

If China truly poses a threat to trade routes that are so essentiall to countries in the immediate neighborhood, why aren’t those countries initiating naval patrols to challenge Beijing’s claims?  Why is the United States, whose homeland lies thousands of miles away, the only challenger?  The answer is that such reticence by the East Asian countries continues a long-standing habit of free riding on U.S. security exertions.  That is never going to change unless and until Washington conveys the message to those countries that the United States is through bearing the expense and incurring the risks of dealing with matters that are (or at least ought to be) far more important to them than to us.

The trajectory of U.S. policy in the South China Sea creates a crisis atmosphere and entails the grave risk of a direct military confrontation with China.  The potential benefits flowing from an aggressive U.S. policy are, at most, quite modest.  China’s East Asian neighbors should not be allowed to stand on the sidelines while Washington does their dirty work for them.

Propaganda Posters Document the Madness of Chinese Communism

SHANGHAI, CHINA—Shanghai is China’s financial capital. A former Western concession, the city today shows little sign of the many bitter political battles fought over the last century. Tourists throng the Bund along the Huangpu River while global corporations fill the skyscrapers in Pudong, across the water.

But politics in China today is a blood sport. President Xi Jinping has been taking down powerful opponents, so-called “tigers.” However, he has not revived propaganda posters, once a pervasive political weapon.

Yang Pei Ming, a tour guide, started collecting posters in 1995. He eventually set up the Shanghai Propaganda Poster Art Center. Explained Yang: “With the shift toward a more modern and forward-thinking China, it would be a mistake to forget our history.”

Now licensed by the government, the exhibit’s official name is the Shanghai Yang Pei Ming Propaganda Poster Art Museum. Yang accumulated 6000 different propaganda posters and a plethora of other tchotchke from Mao’s suffocating personality cult.

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China: Historic Empire Transformed, Fragile Leader In The Making?

SHANGHAI, CHINA—Shanghai, China’s financial capital, enjoys a double skyline. The city proper, or “old city,” sports a fascinating mix of colonial buildings and modern architecture. The “New Area” of Pudong hosts Shanghai’s four tallest structures, on the east bank of the Huangpu River.

In contrast, when I first visited Shanghai a couple decades ago there were few buildings, commercial or residential, racing skyward. Pudong was mostly empty, with more brush and trash blowing down the streets than buildings with people working in them.

But there is another China. More distant towns offer a vision into the past—more traditional, less advanced, more isolated. Shift to the nearby countryside and incomes drop substantially, averaging less than $2000 per capita. My traveling group stopped by the remains of an ancient fortress and the Great Wall, which required walking along dirt roads lined by homes constructed with bricks taken from the ruins. The primitive toilet had holes in the wooden floor, through which the ground was visible.

U.S.–China Relations Hurt by American Antidumping Abuse

As expected, Chinese President Xi Jinping raised the issue of antidumping abuse during his recent visit to Washington.  Specifically, he called on the United States to stop using “nonmarket economy” methodology when imposing antidumping duties on imports from China.  The issue is going to become more and more pressing as a diplomatic problem over the next year, because the United States is required under WTO rules to end NME treatment by December 2016. 

NME methodology is one of many ways the United States inflates the protectionist impact of U.S. antidumping law.  My colleague Dan Ikenson has thoroughly documented the senselessness of NME treatment.  Last year, I wrote a Cato Policy Analysis looking at how U.S. officials and policymakers might respond to the December 2016 deadline.

That deadline coincides closely with the end of President Obama’s term in office.  The president can choose to leave his successor years of trade conflict and WTO litigation by refusing to act.  Or he can do the right thing for the American economy and U.S.–China relations by ending NME treatment as soon as possible. 

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Europe Must Abide TTIP’s Geopolitical and Security Implications

In today’s Cato Online Forum essay, Judy Dempsey of Carnegie Europe argues that the geopolitical and security implications of TTIP are immense, and that the EU and its member states need to wake up, smell the coffee, and acknowledge reality. This is the third essay focused on the geopolitical implications of the TTIP published in conjunction with the Cato Institute conference taking place October 12.  Previous essays – to compare and contrast – were written by Phil Levy and Peter Rashish

Read them. Provide feedback.  And please register to attend the conference.

China Recycles: Another Attempt at Cap and Trade

China’s announcement of the implementation of a cap and trade system is not the first we’ve heard of their efforts to combat their rising carbon emissions. In November, China and the United States hyped an agreement in which China “intends” to curb emissions “around” 2030. Reproduced below is an article on that “agreement,” which will certainly be greatly referenced over the course of Xi Jinping’s visit.

For today’s announcement, as with all international pronouncements on climate change, we must wait until we see the fine print. The road to global warming has traditionally been paved with good intentions.

The Difference between Being Tough and Being Stupid toward China

Whenever China is mentioned in a presidential campaign, the consequences are rarely good. In 2012 residents of Ohio, where anti-Beijing ads proliferated, might have believed that the campaign hinged on China. This time U.S. policy toward the People’s Republic of China might become a broader election issue, leading to serious damage in the relationship.

Unfortunately, political campaigns generally are not well-suited for the thoughtful discussion of complex international issues. Especially today, when many Republican voters are skeptical of any foreign policy message that does not involve pummeling one nation or another.

One of Beijing’s loudest critics is Donald Trump, though so far he has focused on economic issues, as did Barack Obama and Mitt Romney when they battled for Ohio’s votes three years ago.

Carly Fiorina promised to be “more aggressive in helping our allies … push back against new Chinese aggression.” Marco Rubio denounced the PRC’s “increasingly aggressive regional expansionism” and the administration’s alleged “willingness to ignore human rights violations in the hope of appeasing the Chinese leadership.”