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BOTTOM LINE • Taiwan’s presidential election is scheduled for January 13, 2024. • A down-to-the-wire effort by two of the three opposition candidates to unite against front-runner William Lai Ching-te failed dramatically, while the third candidate made a grand last-minute exit. • Disarray among the opposition will not necessarily guarantee Lai’s election, with the latest polls showing him barely ahead of his two remaining challengers. • Both challengers, though averring their preference for a strong relationship with the United States, favor warmer relations with Beijing in a manner that may portend some degree of willingness to accept unification with China that would adversely impact US and Japanese security interests • Chinese efforts to influence the vote have included military intimidation, veiled threats of invasion, and disinformation. On Saturday, January 13, 2024, Taiwan will go to the polls to choose itsa next president and 113 seats in the country’s unicameral Legislative Yuan (LY). Current president Tsai Ing-wen is term-limited and at first four, now three, contenders are seeking to succeed her, making this the most contested election since 2000. What’s at Stake for the United States The United States is significantly involved in one war in the Middle East, another in Eastern Europe, and is hence at pains to avoid confrontation in Asia. It has sent two aircraft carrier groups and ammunition to support Israel as well as large quantities of weapons to the Ukrainian government, leaving concerns in both America and Taiwan about how much assistance it could give the country should Xi Jinping decide to attack. Given China’s avowed desire to annex the island by force if Taiwan’s citizens do not agree to unification amicably, and Beijing’s strong reaction to anything that it construes as moves to further legitimize Taiwan’s de facto independence, the Biden administration prefers a Taiwanese president who will avoid both actions that could prompt an attack and measures that would bring the island under Beijing’s control. More than democracy and human rights are at issue: Since Taiwan sits astride sea lanes that are vital for international commerce and security, ceding the country to China would enhance Beijing’s control of both. An estimated 40 percent of world trade passes through the South China Sea, which China has increasingly asserted its control over. Japan, a US treaty ally, has what is arguably an even greater stake in stability in the Taiwan Strait since a Taiwan under Chinese control would bring its territorial waters perilously close to Japan as well as potentially adversely impact the shipping that is so vital to its economy. China also contests control of areas of the East China Sea with Japan. Since Okinawa hosts the only US bases within 500 miles (the unrefueled combat radius of US fighters) from Taiwan, China might well strike those bases at the outset of a conflict. Japanese leaders have explicitly said that a Taiwan emergency is a Japanese emergency and therefore an emergency for the Japan-US alliance. The Dramatis Personae Lai Ching-te (English name William Lai) is Taiwan’s incumbent vice-president and the nominee of the Democratic Progressive Party (DPP). Born in 1959 and the son of a coal miner, he is a medical doctor with expertise in spinal cord injuries, though he has dedicated his later career to politics. Regarded as a lackluster campaigner, he can however point to his extensive record in office as a legislator, then premier, and most recently as vice-president. Hou Yu-ih, born in 1957 and the son of pork sellers, represents the Kuomintang (KMT) or Chinese Nationalist Party. After graduating from the Central Police Agency and obtaining a doctoral degree in crime prevention and corrections, he had a long career in law enforcement before becoming deputy mayor and later mayor of New Taipei City. Hou says that his background in police work is excellent preparation for service as president. Ko Wen-je, born in 1959, is a medical doctor known for his expertise in organ transplants before going into politics. Ko successfully ran for mayor of Taipei as an independent, though with the endorsement of the DPP. In 2019, Ko founded the Taiwan People’s Party (TPP) as a challenge to the KMT and DPP. Terry Gou (Chinese name Guo Tai-ming) was born in 1950. A late entry into the race and formerly a KMT member who twice sought and was twice refused the party’s endorsement for nominee, he then announced he would run as an independent backed by the $7 billion fortune he made as founder of Hon Hai Precision Industries. Hon Hai, known abroad as Foxconn, is the world’s largest contract manufacturer of electronics. His parents, from Shanxi, fled to Taiwan in 1949, with his policeman father having fought for the KMT during the war. Gou believes that his extensive business experience makes him ideally suited for the presidency. Where They Stand All candidates face the dilemma of having to solicit the support of voters who overwhelmingly reject unification with China while not antagonizing China with its oft-repeated vow to achieve the “sacred task” of unification by whatever means. A poll released in late November showed almost no support for this: only 0.7 percent of respondents replied that they supported independence as soon as possible with 11.5 percent advocating maintaining the status quo while working toward unification. By contrast, 35.8 percent supported maintaining the status quo while working toward independence and 44.3 percent favored forever maintaining the status quo. On other issues, as do politicians worldwide, they must be wary of making promises they will find difficult to deliver on if elected. Lai, who has previously described himself as an advocate of Taiwanese independence, is careful to qualify the statement by adding that, since Taiwan is already an independent sovereign state known as the Republic of China, there is no need for a declaration of independence. He has rejected the so-called 1992 Consensus and pledged to continue Tsai Ing-wen’s non-confrontational policies. The 1992 Consensus refers to the outcome of a meeting in Singapore between the allegedly unofficial representatives of the Chinese Communist Party and the KMT, which then governed in the name of the Republic of China. Members of the opposition party objected. The Consensus, a term that did not exist until 2000, eight years later, holds that each side agreed that there is but one China and that Taiwan is part of China, but that each side has its own understanding of what China is: for the CCP, it is the People’s Republic of China; for the KMT, it is the Republic of China. KMT supporters continue to accept the latter definition, while the opposition DPP reject it, arguing that Taiwan is a sovereign state independent of the PRC. In 2010, newly elected president Tsai Ing-wen offered a concession in that she accepted the historical fact of the conference, but Beijing immediately rejected it as “an incomplete test paper.” The only one of the four candidates to support gay marriage, which has been legal in Taiwan since 2019, Lai wore a rainbow-colored scarf and spoke at a large parade in October to celebrate the law, declaring that equal marriage was not the end but the starting point for diversity. None of the other three presidential candidates attended, although the KMT’s youth wing did, with its members shouting that their party also supported equality as they passed by Lai. Hou Yu-ih accepts the 1992 Consensus, though adds that he objects to both a formal declaration of Taiwan’s independence and China’s offer to rule the country under Beijing’s interpretation of the one-country, two-systems formula. In a Foreign Affairs article that was obviously aimed at a US audience, Hou stressed the importance of urging both sides of the Taiwan Strait to jointly promote democracy, human rights, and mutual trust. He accepts, however, the need for deterrence against invasion and that Taiwan must deepen collaboration with the United States in areas such as intelligence sharing and regular joint training exercises. Hou has vowed to defend the Republic of China if it were attacked. It is significant that he did not use the word Taiwan, thereby implicitly endorsing his party’s position on the One China policy. On healthcare, Hou has promised to raise spending levels on national health insurance to 8 percent from its current 6.5 percent. Observers were puzzled at his choosing to emphasize this policy against two rivals who are medical doctors. Lai immediately countered that rather than announce a spending target, Hou should explain specifically what areas should be targeted for improvement and then suggested several that he, Lai, would pursue. Ko Wen-je emphasizes his pragmatism and rationality. On cross-strait relations, he advocates a middle-of-the-road approach that is neither anti-China nor overly pro-China. Ko has called for regular security talks among senior officials from Japan, Taiwan, and the United States regarding China’s intimidation of Taiwan. He argues that cutting off communication with China increases the risk of war and has expressed willingness to sign economic agreements with Beijing while also advocating that Taiwan follow the United States in de-risking. Agreements would be reviewed and referred to the Legislative Yuan for ratification—a backhanded reference to former president Ma Ying-jeou’s effort to push through a trade agreement with China that aroused a massive protest and closed down the Legislative Yuan for weeks. Ko has called on China to propose a new framework for engagement with Taiwan that explains what Beijing has to offer, telling inquisitive foreign reporters that “it’s their obligation [to do so] not mine” and adding that Beijing must also define exactly what it means by One China, whether it be political or economic. While economic cooperation with China is negotiable, he claims that politically there is “nothing we can do,” though he has said elsewhere that confrontation can be eased through dialogue and cultural, sports, and economic exchanges. Ko has also proposed turning the small offshore island of Jinmen, also known as Kinmen, into an experimental zone for peace between Taiwan and China. Critics immediately pointed out that, apart from being unconstitutional, Ko has not explained whether he would countenance suspending Jinmen’s elections, regulating its residents’ freedom of speech due to Beijing’s censorship and insistence on “internet sovereignty,” or imposing social controls on them to conform with Chinese practice. Terry Gou, whose Foxconn has over a million employees in its factories in China, has denounced the Taiwan independence movement while calling for de-escalating Sino-American tensions. He accepts the 1992 Consensus and advocates positioning Taiwan as equidistant from both the United States and China. As of now, it is “like prey on a tightrope”: If either America or China increases tensions even a little bit, Taiwan “will die a horrible death.” Critics believe that Foxconn’s heavy presence in China would make him vulnerable to pressures from Beijing; Gou responded that he has not managed the company’s operations since 2019 and in fact resigned from Foxconn’s board of directors in September 2023. Denying that he has ever been controlled by China, Gou vowed to reply “yes, do it!” if Beijing threatens Foxconn’s assets. As if to test his mettle, two months later, China announced an investigation into the tax and land use of Foxconn subsidiaries in several provinces, without supplying details. Foxconn management replied that it would “actively comply” with the investigators. Gou is an avowed opponent of gay marriage. Now no longer formally a candidate, he has vowed to keep advocating for these policy views. Taiwan does not possess indigenous fuels, so the energy issue is highly controversial. Opponents of nuclear energy argue that a Fukushima-type meltdown would devastate the much smaller and similarly earthquake-prone island. Proponents point out that without nuclear power, Taiwan would become still more vulnerable if it completely depended on imports to keep its heavily trade-dependent economy healthy. Due to a 2016 government decision to phase out nuclear power by 2025, usage has declined from over 20 percent to about 9 percent at present. Most citizens voted in 2021 to reject finishing a partially built plant whose completion has been suspended for three decades. Only Lai has vowed to make Taiwan a nuclear-free country by 2025, although he has not ruled out retaining some nuclear capability in case of emergencies like a Chinese invasion or blockade. All three other candidates claim that the nuclear-free homeland policy has failed, with Hou explicitly saying that he would revive nuclear power, including restarting two already decommissioned units, extending the operational period of a third, and evaluating whether to revive an abandoned fourth nuclear power plant. While warning of power shortages, no candidate has addressed the questions of safety or of finding a long-term solution for storing nuclear waste. Who’s Ahead? Taiwan, perhaps one of the most extensively polled countries in the world, has so many organizations collecting data that the Taiwan News regularly reports a poll of polls. Lai has been the consistent front-runner. Except for briefly exceeding 40 percent after a stopover trip to the United States en route to Paraguay, he until recently polled in the mid-thirties, with Ko and Hou in the mid-to-high twenties and Guo in the low teens. But Lai’s lead has been eroding. More concerning to the DPP, at the end of October Ko and KMT head Eric Chu reached an uneasy agreement—notably, Hou was not present— to share candidates in some constituencies in order to get a majority in the Legislative Yuan. If this succeeds and Lai is elected, the coalition could block Lai’s initiatives, leading to gridlock, as indeed happened during Chen Shui-bian’s presidency. It would also encourage Beijing to court them, as it has done during previous DPP administrations. Since the DPP has been in power for eight years, it has a track record that its opposition and non-committed voters can criticize. Rural citizens interviewed by a Canadian researcher believe that the party has forgotten about them while urbanites complain about inflation and lack of affordable housing and point out that wages have remained stagnant despite healthy growth rates. The youth vote, which had previously been a mainstay of DPP strength, has shown signs of shifting to the TPP. Many, including supporters of the party, believe that a social justice program is badly needed. They accuse the DPP of positioning itself as a progressive party but not behaving like one, urging it to enact policies that meaningfully tax the rich and invest the money in green technology, infrastructure, and innovation. The opposition has said that a DPP victory would mean war with China. Chinese Efforts to Influence the Election Beijing’s least favorite candidate is surely Lai. Rather than overtly interfere, a strategy that backfired badly in the 1996 election, it has tried a mixture of sticks and carrots. Sticks include Chinese fighter jets so regularly crossing the median line in the Taiwan Strait that a new normal now exists, ominous warnings from high military figures, and covert attempts such as disinformation. Carrots include hosting youth delegations to visit China, and a plan to make Fujian province a zone for integrated development with Taiwan, including encouraging Taiwanese firms to list on Chinese stock exchanges and supporting innovative ways of cross-strait capital cooperation. Entry and exit visas for “Taiwan compatriots” are being eased. While such initiatives are above board, some others are not. In late October, Taiwan’s Ministry of Justice Investigation Bureau seized $354.6 million in illegal remittances to candidates regarded as sympathetic to China. Among the conduits were businesspeople, contributions to temple charity events, dummy accounts through unregistered banks, and cryptocurrency. It is difficult to tell how successful these tactics are, with anecdotal evidence indicating that while some people are intimidated by China’s threats, others respond negatively. Taiwanese are well aware of the fate of Hong Kong, where the party-state ruthlessly quashed civil liberties in contravention of the promises it was treaty-bound to honor and often used as a cautionary tale to those few who view unification more favorably. Unexpected Last-Minute Developments At the meeting to discuss cooperation on fielding candidates for the Legislative Yuan, Ko and Hou also discussed having one of them agree to become vice-president while the other would be the presidential nominee. Assuming—a big if—that most of the supporters of one would agree to vote with supporters of the other, they would comfortably beat Lai. The possibility of an alliance at the top was always risky: In addition to each man having a healthy ego that would make subordinating himself to the other difficult, Ko was on record as saying that the things he hates most are “mosquitoes, cockroaches and the KMT.” He founded the TPP as a counterweight to both KMT and DPP, attracting many supporters, particularly among the young, who were disenchanted with the two. While some of the young voters might accept an alliance, others would likely feel betrayed. Whether Ko or Hou would get top billing, they pledged to abide by the opinion polls on who was the stronger. After much discussion, the two settled on accepting six of the nine major polls, but then disagreed on who was ahead based on differing interpretations of the margins of error. Former president Ma Ying-jeou then stepped in to mediate, summoning Ko and Hou to his office on November 24, the deadline for filing for the election. Only Hou appeared, waiting several hours fruitlessly. Ko later agreed to meet at a hotel and even then arrived late as a gaggle of media waited impatiently outside. The result was a dramatic failure with the candidates sniping at each other live on the country’s television networks: They will run separately. The event even upstaged Terry Gou’s also dramatic departure wherein the typically flamboyant Gou announced that although he “might be forgotten by the people,” he had chosen to sacrifice himself for the greater good, showing his “utmost dedication to his homeland.” With barely five weeks before the election, analysts have scrutinized the newly announced vice-presidential picks of the remaining three candidates. Lai has chosen Hsiao Bi-khim, the highly regarded woman who has served as Taiwan’s de facto ambassador to Washington for the past several years. But whether and by how much the choice will increase Lai’s popularity remains to be seen. Beijing has denounced Hsiao as a “diehard secessionist” and says the decision could “mean war for Taiwan,” which could scare some voters. Asked about this at a television interview soon after her selection, Hsiao responded carefully, saying that all Taiwanese reject war and that any candidate “must approach [relations with China] with utmost responsibility.” Hou’s choice for vice-president, the avowed pro-unificationist media executive Jaw Shaw-kong, also has negatives as well as positives. Presumably chosen to appeal to the KMT’s conservative base, Jaw is apt to alienate more moderate KMT members and voters who fear unification. His more assertive personality and markedly different view of unification raise the possibility of friction between him and Hou. Kou’s vice-presidential pick, Cynthia Wu, is likewise problematic. With very little political experience, she has been an executive of a family-founded major life insurance company that has been fined for speculation and questionable land deals. This undercuts the TPP’s claim to be the party that represents the interests of the young and underprivileged. Meanwhile, polls show Lai’s lead over Hou shrinking to about one point, with Ko less than four points behind Hou. At this point, the election is too close to call. Expect the Unexpected? Should it have to live with Lai, Beijing’s least bad scenario would be a divided Legislative Yuan, which would enable it to work with the opposition, as it also has done with previous DPP-led administrations. Assuming, as is likely, that Lai can be trusted to keep his promise to continue his predecessor’s nonconfrontational policies, he is certainly Washington’s preferred candidate. But, as evidenced by the events of the past few weeks, Taiwan’s politics are full of surprises: Neither the United States nor China can be sure that the election will go in its preferred direction. Dealing with democracies is inherently uncertain, for both autocracies and other democratic countries.

Former Japanese Prime Minister Taro Aso is an outspoken advocate of Japan’s joining AUKUS – as reflected in his recent speech in Canberra to the AIIA. He also has a record of hawkish comments on Taiwan, but how much influence does he wield within the Japanese government and in his own party? Vice-President of Japan’s ruling Liberal Democratic Party (LDP), Taro Aso, was typically outspoken in his speech to the Australian Institute of International Affairs Gala Dinner in Canberra in November, advocating that Japan be added to the AUKUS group. Not only did he claim that Japan’s participation in AUKUS would “contribute greatly” to Australia’s moves to strengthen its submarine capabilities, but he also advanced a strategic argument to justify his position asserting: “Australia is a clear choice” as a new ally for Japan in countering China. He reasoned that as China was out “to control the second line of islands (from Japan’s Izu Islands to Guam) with its maritime power,” this would serve to restrain US naval activities in the region, hence the need for more cooperation among Japan, Australia, and the United States. While explaining that the establishment of a group called “JAUKUS” was “his personal idea,” Aso also argued that it would be “symbolic” and would “send a message” to deter China. He added that Australia and Japan could build allied relations (domei kankei) based on three commonalities: they were both located on the same “vertical line” in the Pacific Ocean; they shared the same democratic philosophy, and they were both US allies. If the three countries were to join forces, “US deterrence in the Indo-Pacific would be doubled, tripled, or even quadrupled.” Japan’s joining AUKUS would also “allow the United States, Australia and Japan to speak with one voice to signal their opposition to a change of Taiwan’s status through force.” Aso has a record of making hawkish comments on Taiwan and a reputation for being one of Taiwan’s strongest supporters among Japanese politicians. In early August 2023 he conducted a three-day visit to the country – the highest ranking LDP official to visit the island since 1972 when Japan officially severed diplomatic ties. The objective of his visit was to underscore Japan’s support for Taiwan by holding talks with President Tsai-Ing Wen and other senior politicians as well as discussing regional security issues, semiconductor supplies critical to the Japanese economy, and other issues relating to economic security. At Taiwan’s Foreign Ministry Aso delivered a lecture on Japan’s defence policy and in a keynote speech at a security forum in Taipei, he argued that “Japan, the United States and other likeminded countries making it clear that they would be prepared to go to war to defend Taiwan…[was] the best way to deter a Chinese invasion.” He declared: “Friendly nations must be prepared to defend the island in the event of a Taiwan emergency….Beijing needs to be convinced that if push comes to shove, we will use our defensive capabilities to defend Taiwan….[adding] Clearly conveying that intention to the other side will serve as a deterrent….for Japan, Taiwan, the United States and other like-minded parties, displaying the resolve to fight will serve as a strong deterrent.” While his remarks appeared to be out of sync with the Japanese government’s “strategic ambiguity” on its response to a Taiwan contingency, Japan’s Mainichi newspaper claimed that Aso had consulted in advance with the Prime Minister’s Office (Kantei), Japan’s Ministry of Foreign Affairs, and the National Security Secretariat about what to say in his speech. Pointing out that Aso was Prime Minister Fumio Kishida’s so-called “guardian,” and that the LDP political heavyweight had played a key diplomatic role in the Kishida administration, the newspaper interpreted Aso’s message as a “carefully worded” warning from the prime minister that although Tokyo was strongly committed to pursuing bilateral reconciliation with China, it had no intention of compromising when it came to national security, including on the issue of Taiwan. These remarks echoed Aso’s clear statement in July 2021 when speaking at an LDP fundraising event as deputy prime minister, finance minister, and member of the National Security Council. He argued that “If a major incident happened [in Taiwan], it would not be strange at all if it touches on a situation threatening [Japan’s] survival. If that is the case, Japan and the U.S. must defend Taiwan together.” In January 2023, he had also called for a drastic strengthening of Japan’s defence capabilities, pointing out that if China were to invade Taiwan, the result could be a military conflict on Japanese territory, including Okinawa, and emphasising to the Japanese public that “one must defend one’s own country.” In his words, “In the event of a Taiwan contingency, it is only natural that the flames of war would fall on Japanese territories close to Taiwan, such as Yonaguni Island in Okinawa Prefecture.” In June 2023 Aso had also met with the Taiwanese Vice-President Wen-tsan Cheng during the latter’s visit to Tokyo where they discussed East Asian security, including the Taiwan situation. In terms of policy standing Aso wields influence as a former prime minister, deputy prime minister, and finance minister, and in terms of political authority wielded within the LDP, he has served as chairman of the party’s Policy Affairs Research Council – its highest policymaking body – and is currently vice-president of the ruling LDP as well as being the leader of the third largest faction in the LDP – the Shikokai. He also ranks second to the LDP’s secretary-general among the top six LDP executives who meet most frequently with the prime minister. He was one of a group of top LDP executives that Prime Minister Kishida consulted in early December 2023 about when to begin collecting the higher taxes necessary to finance a bigger defence budget. Aso, however, opposed the option of submitting legislation to the Diet that would set a schedule for legislation to raise taxes to fund the planned increases in defence spending. Moreover, he will not stay on as LDP vice-president when his current term expires in September 2024. However, having now reportedly “given up” on Kishida and looking to elect current Secretary-General Toshimitsu Motegi as his successor, Aso is endeavouring to remain the “kingpin” in a post-Kishida administration. At the same time, Aso’s views on JAUKUS are far from reflecting a consensus in his own party. In a domestic political context, the option is currently non-viable. Support for Japan’s participation in AUKUS extends no further than a few key figures in the LDP such as Digital Affairs Minister and possible successor to Kishida, Taro Kono, who has expressed strong support for Japan’s participating in AUKUS. Kono was one of the candidates in the race to become prime minister in October 2021 (a month after the launch of AUKUS), and when asked whether Japan should also seek to build nuclear-power submarines with assistance from the US and UK, he stated: “As a capability, it is very important for Japan to have nuclear submarines.” For the time being, however, far from support for the AUKUS option, there would be active resistance from within the LDP led by Kishida against Japan’s participating in AUKUS Pillar One – acquiring nuclear-powered submarines. As long as Kishida is prime minister, he will continue to promote the cause of nuclear disarmament and non-proliferation given his well-known “nuclear allergy,” reflected in his 2020 book entitled Toward a World Without Nuclear Weapons [Kakuheiki no nai Sekai e]. In early December he also vowed to “exercise leadership for the abolition of nuclear weapons” at a meeting of the International Group of Eminent Persons for a World without Nuclear Weapons held in Nagasaki. Moreover, Kishida believes strongly in maintaining a segregated framework of bilateral security relations with each of the AUKUS partners. In the short-to-medium term, the only politically viable option for Japan might potentially be to participate in the expanding field of so-called AUKUS Pillar Two hi-tech, military technology-related capabilities such as artificial intelligence, quantum technologies, hypersonic and counter-hypersonic capabilities, electronic warfare, defence innovation, and undersea capabilities. The Japanese government, for example, is currently promoting the development and use of autonomous underwater vehicles.

According to reports from Chinese media in late November, Beijing has refused to invest in the construction of the Power of Siberia-2 natural gas pipeline, proposing instead that Moscow fully cover the multibillion-dollar project. China also insists on substantial discounts for Russian gas, demonstrating strong “bargaining power” in negotiations with the Kremlin (South China Morning Post, November 24). Power of Siberia-2 is pivotal for Russia in mitigating the losses incurred after Gazprom’s withdrawal from the European market. As Western sanctions have weakened Moscow’s geopolitical leverage with its energy resources, Beijing has capitalized on the situation to increase energy flows to China at cheaper prices. Most economists argue that Moscow cannot fully compensate for the losses resulting from limited access to European markets. They also point out that the gas supplies currently flowing through the Power of Siberia-1 pipeline are already being sold to China at almost half the price of rates for the European Union and Turkey. Russian oil and gas analyst Mikhail Krutikhin emphasizes that Beijing has little interest in the construction of the Power of Siberia-2 pipeline, as China does not require large quantities of natural gas. He notes that the planned capacity of the new pipeline is 50 billion cubic meters (bcm), while Gazprom, on average, has exported 155 bcm to the West. According to Krutikhin, with the discounts, Russian gas exports to China do not even cover the operational costs of their extraction and transportation. The Kremlin, nevertheless, is forced to construct a second gas pipeline because it cannot guarantee the promised gas supplies of existing agreements without it due to the limited gas deposits supporting Power of Siberia-1 (VOA Russian Service, November 28). China’s exploitation of Russian vulnerabilities should not come as a surprise. Experts observed last spring that Beijing only supports Moscow to serve Chinese interests, for example, leveraging Russian anti-Western narratives in its own propaganda and treating the Russian Far East as a “resource colony” (see EDM, February 6). China will not assist Russia to its own detriment. Marina Rudyak, a professor of Sinology at Heidelberg University, believes that the Chinese government may genuinely fear that a Russian victory in Ukraine could strengthen Moscow’s influence in Central Asia and beyond (Svoboda, May 21, 2022). At the same time, Beijing has provided practical assistance to Moscow for projects personally important to Russian President Vladimir Putin. For example, China has actively shared its experience with censorship and digital control over the Internet since 2015, offering insights on the functions and capabilities of China’s “Great Firewall” (Kremlin.ru, June 5, 2019; Radio Free Europe/Radio Liberty, April 5). This cooperation, however, does not prevent China from competing with Russia for influence in Central Asia, the South Caucasus, and other regions (Gazeta.ru, September 20, 2019; see EDM, October 5, 2022, November 15, 2022, May 24, August 10). Moscow’s predicament lies in unrealistic expectations for cooperation with its “Eastern partners,” including China and other “non-Western” countries. Putin has repeatedly stated that the expansion of the BRICS countries (originally Brazil, Russia, India, China, and South Africa) will become a movement “against the hegemony and neo-colonialism policy of the West” (Izvestiya, August 23). In contrast, the organization’s members are not planning to sever relations with Western countries and are attempting to extract maximum benefits in finding a balance between the East and West. Another of the Kremlin’s unrealistic hopes was the dream of creating a single currency for BRICS members to strengthen Moscow’s ability to circumvent sanctions. Such talks began emerging in the Russian press at the end of last year (Sibnovosti.ru, December 3, 2022). By mid-summer, central Russian media predicted that the currency would be created in August, noting that the realization of this idea was “closer than ever before” (Moskovskij komsomolets, July 9). Pro-Kremlin experts discussed how the new currency would replace the “toxic and inconvenient” US dollar and be used for intergovernmental payments and settlements (Vechernyaya Moskva, July 3). The most optimistic among them speculated that the dollar might not withstand this challenge (Iarex.ru, May 17). Following the August BRICS summit, Russian officials were compelled to acknowledge that their partners had no intention of creating a single currency in the near future. On August 24, Foreign Minister Sergei Lavrov officially relented on Moscow’s hopes for a unified currency at the summit in Johannesburg (Rossiyskaya gazeta, August 24). That same day, South African Finance Minister Enoch Godongwana announced that the creation of a single currency had never been discussed within the BRICS format, even informally (Forbes.ru, August 24). A parallel situation of unrealistic expectations for allies is unfolding for Russia with Iran. In early 2022, Russia extended a credit line of $1.4 billion for the construction of the Sirik thermal power station in Iran, a debt that Tehran has yet to settle. In July 2022, Gazprom and the National Iranian Oil Company signed a memorandum of understanding and cooperation, leading to agreements on projects valued at $40 billion. These projects encompass the development of the Kish and North Pars gas fields and Russia’s involvement in the operations of the South Pars field (Nezavisimaya gazeta, November 7, 2022). Even with the agreements in hand, little tangible progress has been made. The lack of progress in joint Russian-Iranian projects closely mirrors the breakdown in Russian-Chinese cooperation with Power of Siberia-2. Independent analysts noted last year that Moscow should not anticipate Iran’s assistance in modernizing underdeveloped infrastructure along the “North-South” corridor. Russia has sought to develop this route to connect with the Persian Gulf and Indian Ocean via the Caspian Sea and Iran. Even if the new corridor is further developed, it will not be able to wholly replace the traditional transit routes Russia utilized before its war against Ukraine (Carnegie Politika, October 28, 2022). Russia is being increasingly forced to supply strategic resources to partners on highly unfavorable terms in exchange for minor displays of political support and assistance. In the long run, such a policy will likely result in significant losses for Moscow. While cooperation with China and Iran has improved in some areas, the current circumstances underline that, in the end, both Beijing and Tehran will pursue their own interests, even at Moscow’s expense.

“Originally published by Homi Kharas at Brookings Future Development on 21 November 2023,” “Middle-class life satisfaction rests on two pillars. The first is the idea that hard work and self-initiative will lead to prosperity. The second is that thanks to this prosperity, the children of middle-class families will enjoy even more opportunities for the good life. Both pillars are shaking.” Joining the middle class has been a ticket to the good life for two centuries now, a history I trace in a new book “The Rise of the Global Middle Class.” The American Dream, the glorious years of European reconstruction after World War II, miracle economic growth in Japan and other East Asian countries, Xi Jinping’s great rejuvenation of the Chinese nation, and India’s software revolution each brought hundreds of millions of people into the ranks of the global middle class. Today, thanks to this progress, most of the world, upwards of 4 billion people, enjoy a middle-class or better lifestyle for the first time ever. Yet, across the world there is a clear sense of disquiet in the middle class. In the U.S., Princeton economists Anne Case and Angus Deaton have documented the prevalence of “deaths of despair” due to suicides, opioids, and alcohol poisoning among non-college educated white middle-class males. The Japanese have coined a specific word, karoshi, to describe deaths due to overwork among salaried professionals. China is seeing a campaign of tang ping, or lying flat, to protest the “996” expectations of employers—9 a.m. to 9 p.m. 6 days a week. India ranks 126th out of 137 in the rankings of the 2023 World Happiness Report. What is amiss? Middle-class life satisfaction rests on two pillars. The first is the idea that hard work and self-initiative will lead to prosperity. The second is that thanks to this prosperity, the children of middle-class families will enjoy even more opportunities for the good life. Both pillars are shaking. The first is threatened by the effects of technological change on jobs. The foundations of the second are being undermined by climate change, pollution, and the destruction of nature. For most of history, technology has changed the nature of work by reducing repetitive, routine, and manual labor. During COVID-19 and the ensuing recovery, many workers changed occupations. Those with good jobs, requiring cognitive, non-routine tasks, did better than those engaged in manual, repetitive tasks. There are pathways to high-wage work, but, as my Brookings colleagues Maria Escobari and co-authors have shown, access to these paths is unequal, and that is creating stress and mental health problems for many middle-class workers. Stepping-stone occupations that serve as a bridge between low-and higher-wage occupations, and even high-wage occupations themselves, are increasingly under threat from artificial intelligence. When the Writers Guild of America went on strike in May 2023, they demanded that ChatGPT be used only as a research tool, not for actual script writing, the creative process that is at the heart of their jobs. The wobbly second pillar of middle-class satisfaction is that young people are worrying that the mass consumption of the middle-class is responsible for unsustainable levels of greenhouse gas emissions, pollution and species extinction. On current trajectories, children born today will live in a world that is at least 3 degrees warmer than pre-industrial levels. The impact of such changes, according to the best available science, is terrifying. “Is a middle-class lifestyle consistent with a livable planet? Thankfully, the answer is yes, but only if there is significant change in economic policies.” This science forces the middle class to confront an existential question. Is a middle-class lifestyle consistent with a livable planet? Thankfully, the answer is yes, but only if there is significant change in economic policies. Consider the case of Switzerland, one of the richest economies in the world. The Swiss emit only 5 tonnes of greenhouse gases per person per year, less than one-third the U.S. level. One reason is that Switzerland buys a lot of electricity from France’s nuclear reactors. But on other measures, too, such as building efficiency, moving people on electric trains and buses, and insulating homes, the Swiss middle class outperform many of their peers. True, this is not enough. The 5 tonnes must be reduced to zero by 2050, but Switzerland’s case shows that most of the current levels of carbon emissions are not tied to middle-class standards of living but simply to bad or thoughtless policies in rich countries that can be readily corrected. In similar vein, pollution is a man-made problem, not a necessary corollary of high living standards. In its current form, recycling is not effective. A new concept of a circular economy offers much more promise. The idea is to “design out” waste and pollution, recycle materials and regenerate nature. One of the first problems the circular economy concept is tackling is the issue of plastic packaging. Because of its ubiquity, plastic continues to accumulate in our oceans (and increasingly in our bodies). There are, however, alternative materials that can be used for packaging, and already the European Union is on track to make all packaging recyclable by 2030. A third area of concern is human encroachment into nature. The current global system of food production is based on expanding croplands to grow feed or as pasture for animals, especially cattle and sheep. This system has a double cost. It contributes significantly to greenhouse gas emissions, and it destroys wildlands and biodiversity. The simplest option would be to encourage the middle class to switch to a vegetarian diet. If this magically happened in the world, a land area stretching from Alaska to Tierra del Fuego could be returned to nature. In a less extreme version, if beef and lamb were taken out of our diets, an area the size of North America could be re-wilded. These examples are not offered as realistic policy options in the medium term. They do, however, serve to make a point. If the middle-class is serious about preserving nature, it will require a major change in diet. That could come about through taxes on land-intensive foods or through technology—lab-grown meat is available but only at a higher price point, and it has yet to scale. The common theme in these threats to a middle-class lifestyle is that the values of hard work and personal responsibility that are the hallmark of middle-class success are no longer enough. Policymakers are caught in trying to deliver higher living standards to their citizens and more sustainable living standards for their children. There are long-run strategies where economic growth and sustainability go hand-in-hand, but no countries have yet shown how to manage the transition onto these low-carbon pathways in a rapid, credible way. So the future is uncertain, and the middle-class, which hates uncertainty, will remain disquieted until they are clear about how to best secure the lifestyles and progress to which they have become accustomed.

Pyongyang successfully launched its first military reconnaissance satellite after two previous failures. North Korea has developed a robust missile arsenal but, until now, lacked a remote reconnaissance capability to identify, track, and attack U.S., South Korean, and Japanese military targets. The satellite’s capabilities, as well as whether it incorporated Russian technology, remain unknown. North Korea announced the satellite surveilled U.S. military bases in Guam and vowed to launch several additional reconnaissance satellites “in a short span of time.” South Korea responded by suspending portions of an inter-Korean military agreement meant to prevent military clashes along the DMZ, raising tensions on the peninsula even further. On November 21, Pyongyang conducted its third attempt at launching its Malligyong-1 military reconnaissance satellite onboard a Chollima-1 rocket. Previous launches in August 2023 failed to achieve orbit, but clearly, North Korea learned some valuable lessons. The South Korean navy salvaged some of the rocket and satellite debris from the ocean floor, enabling technical analysis, though the results have not been disclosed. Kim Jong-un declared the regime’s intention to develop a military reconnaissance satellite in his January 2021 directive to the regime’s defense industry. Other delineated military projects included a solid-fuel ICBM, tactical nuclear warheads, hypersonic gliding flight warheads, and a nuclear-powered submarine. >>> North Korea and Russia: How Far Could Their Partnership Go? North Korea reported an “important final-stage test” in December 2022 involving a mock satellite and subsequently released two poor-quality images of the Korean Peninsula. Experts denigrated the grainy, low-resolution images as being of far worse capability than commercially available imagery. Kim Yo-jong, the sister of North Korea’s leader, responded angrily that the test was to show the feasibility of the system rather than the eventual quality of the imagery. In April 2023, Kim underscored the importance of having “several reconnaissance satellites on different orbits [for] securing real-time information about the hostile forces’ military scenario and moves.” Ironically, North Korea’s most recent satellite launch occurred the same day the regime criticized South Korea and the United States for “recklessly” militarizing space, describing Seoul’s upcoming launch of its own reconnaissance satellite as an “extremely dangerous military provocation.” It is possible that Russia provided technology to improve North Korea’s satellite launch capabilities in return for Pyongyang’s shipments of massive amounts of artillery ammunition to Moscow. During Kim’s September 2023 trip to Vladivostok, President Vladimir Putin hinted at providing military and technological support to North Korea. Secretary of State Antony Blinken warned Russia was providing “technology and support” for North Korea’s military programs, though without elaborating on details. A South Korean military official told reporters that an 80-ton liquid fuel engine was transferred from Russia to North Korea even before the September summit. Russian engineers traveled to North Korea after the summit. More likely, however, North Korea’s long-planned launch occurred too quickly after the Kim-Putin summit to have incorporated new Russian technology. Pyongyang announced it had developed the satellite and launcher “by its own efforts and technologies.” Pyongyang has frequently failed initial tests of new missile systems before eventually succeeding. South Korea responded to the launch by partially suspending the 2018 Comprehensive Military Agreement, which then-President Moon Jae-in hailed as a major step in improving relations with Pyongyang. The accord established mutual risk reduction and confidence-building measures to reduce the potential for inadvertent military escalation. However, the Yoon Suk Yeol administration declared that North Korea repeatedly violated the agreement and criticized provisions of the deal, which curtailed allied reconnaissance and military training activities. The Yoon administration announced it would suspend Article 1, Clause 3 of the agreement and restore airborne reconnaissance operations along the DMZ. >>> Next-Generation Interceptor Needed in Greater Quantities to Stay Ahead of the North Korean Missile Threat Any North Korean launch using “ballistic missile technology” is a violation of numerous U.N. resolutions, regardless of whether it is depicted as a civilian space launch. While China and Russia will veto approval of any new U.N. resolutions, the United States should step up its enforcement of U.S. and U.N. sanctions and work systematically with the international community to target North Korean violators, as well as entities in Russia, China, and elsewhere that facilitate Pyongyang’s transgressions. The U.S. should also counter the growing North Korean military threat by strengthening security cooperation with allies South Korea and Japan, while encouraging these two allies to improve their bilateral cooperation. Last year, the U.S. resumed large-scale military exercises with South Korea and restarted rotational deployments of strategic assets, both after a four-year hiatus. Washington, Seoul, and Tokyo also restarted trilateral military exercises. These measures have augmented allied deterrence and defense capabilities. The three nations should consider a return to pre-2018 training levels as a minimum requirement for future training schedules. Given the escalating growth in North Korean nuclear and missile forces, Washington should confer with Seoul and Tokyo on a training regimen that includes all military services and goes beyond ballistic missile defense and anti-submarine exercises to include air and ground forces. The historic trilateral Camp David Summit in August paved the way for greater American-led military, economic, and technological cooperation against common security threats in the Indo-Pacific. The three leaders, however, will need to operationalize the extensive security agreements they reached as well as commit greater resources to offset advancing Chinese and North Korean military capabilities represented by this launch. This piece originally appeared in The National Interest https://nationalinterest.org/feature/north-koreas-spy-satellite-launch-one-giant-and-dangerous-question-mark-207448

In early November 2023, Estonia announced a decision to allow Taiwan to open an unofficial, non-diplomatic economic and cultural representative office in Tallinn. The opening of an office does not mean that Tallinn and Taipei are establishing official diplomatic relations, nor does it mean that Estonia is opening its own office in Taiwan. It is following in the footsteps of countries around the world that have unofficial ties with Taipei and want an unofficial government presence in the country to facilitate economic relations. For its part, Beijing has expressly condemned the decision by Tallinn to allow Taipei to decide if it wants an office in Estonia, with China’s Foreign Ministry making a clear statement calling for Estonia to reverse course. Estonia’s announcement occurred just before Taiwan’s Foreign Minister Joseph Wu embarked on a three-country tour of the Baltic states — a rare trip for the foreign minister to visit three countries with which Taiwan does not have formal diplomatic relations. Baltic leaders and ministers stated that they had no plans to meet directly with Wu, though Lithuanian Foreign Minister Gabrielius Landsbergis spoke at the same event as Wu, and his grandfather, the first president of post-Soviet, Lithuania Vytautas Landsbergis, did meet with Wu. Estonia’s move to open a representative office comes after Lithuania made a similar decision, sparking controversy and drawing political and economic ire from Beijing. The Vilnius office, which opened in November 2021, is called the “Taiwanese Representative Office in Lithuania,” which balks the traditional use of “Taipei” over “Taiwan” to avoid Beijing’s complaints and any alleged notions of formal relations. The opening of the Vilnius office resulted in the downgrading of the bilateral relationship with China and the expulsion of the Lithuanian ambassador from Beijing; the removal of Lithuania as a “country of origin” for Chinese trade; and a formal World Trade Organization complaint against China, supported by the United States and European Union. Beijing’s main complaint at the time was that the office provided legitimacy to Taiwan by using the word “Taiwanese,” thus the reason for the strong reaction. Lithuanian President Gitanas Nausėda conceded the point, “I think it was not the opening of the Taiwanese office that was a mistake, it was its name, which was not coordinated with me.” Now, with Estonia’s announcement, that complaint has proven hollow. It is not the “Taiwanese” reference with which Beijing has a problem — the real issue is the expansion of Taiwan’s international space. As I argued in January 2022, “The name of the office [in Lithuania] is the supposed sticking point, but the reality of the matter is that Beijing wants to prevent the expansion of Taiwan’s international space. The mere opening of an office, regardless of name, represents the expansion of Taiwan-Lithuania ties. Likewise, any new de facto embassy would be perceived as offensive to Beijing. … As more countries build ties with Taiwan, leaders will be able to better assess the risks and benefits of diplomacy with Taiwan. Beijing’s wolf warriors now cry foul at any perceived attempt to foster closer relations with Taipei.” Beijing perceives any “win” by Taiwan as a direct threat to its long-term plan to completely isolate Taipei. A possible office in Estonia provides Taipei with the ability to more easily interact with the Estonian people, expand bilateral trade, and demonstrate itself to be a good international partner — all of which threaten Beijing’s ability to shape the narrative regarding cross-Strait relations. As expected, PRC Foreign Ministry Spokesperson Wang Wenbin made clear the Lithuania office name issue was fake. During his regular press conference on November 8, Wang called for Estonia to change course, making no mention of the prospective name of a future office: “We firmly oppose any form of official interaction between the Taiwan region and countries having diplomatic ties with China and oppose any action supporting ‘Taiwan independence’ separatist forces. We call on Estonia to stay committed to its solemn commitment of adhering to the one-China principle, not to allow Taiwan to set up any organization of official nature, and earnestly safeguard the political foundation of its relations with China.” Wang’s language and warnings are less strident than what could be expected, but given that the announcement of the office in Estonia was just made, details are not yet firm. Estonian Foreign Minister Margus Tsahkna hinted to Politico that the office would be “representation—economical representation—of Taipei, not Taiwan,” which, if the name is the true issue, should appease Beijing’s concerns. As more is known, Beijing will assuredly increase its pressure on Estonia, which already includes the Chinese ambassador in Estonia threatening to leave the country if the office opens. The true test will come once details about the office are released. How will Beijing seek to punish Estonia for the move? Will the reaction be less severe than what China did to Lithuania? How will the European Union and the United States support Tallinn should Beijing utilize its coercive toolkit again? Beijing’s response to the office will demonstrate a few key things in the aftermath of the Lithuania example. How Beijing responded to Lithuania created immense international support and attention for Vilnius. Taiwan President Tsai Ing-wen opened up a $1 billion fund for joint Taiwanese-Lithuanian projects and another $200 million fund for Taiwanese investment in Lithuania’s industrial sector to show support for the decision, and the Biden administration announced a $600 million credit line. Because Beijing initiated pressure on other countries, such as Germany, to push Lithuania to change course, the overreaction became a critical case study in China’s coercive toolkit. The collective West closed ranks, supported Lithuania for the decision, and warned Beijing against further reprisals. If Beijing treats Tallinn in a similar way as Vilnius, then it will be clear that Beijing will ignore international warnings to serve its own goals — bluster over substance and compromise. The most important thing for Estonia to do in the coming days and weeks is to be resolute in the decision. Divisions within Vilnius prolonged Beijing’s attempt to pressure politicians into changing course. Knowing how angry President Nausėda was about the ordeal provided an opening, but other actors did not back down. At the moment, Estonia’s Foreign Minister Tsahkna is taking the lead in publicly responding, but the coalition government needs to adhere to the same line to diminish Beijing’s ability to pressure specific politicians. If Estonia does not back down, the country could stand to benefit from new Taiwanese-Estonian projects. Since the Taiwanese and Lithuanian offices opened in the respective capitals, Taipei has agreed to assist in building an 8-inch semiconductor wafer production line in Lithuania. The two also agreed to open a joint research center on laser technology in Taiwan. Lithuania is home to two projects funded by Taiwan’s National Development Fund (NDF). Another Lithuanian company, Solitek, received around $8.5 million from the $1 billion fund. During a recent visit to Taipei by Seimas Speaker Viktorija Cmilyte-Nielsen, the two sides signed a memorandum of understanding on health and made a decision to eliminate double taxation — the latter of which is still an issue that Taiwan has with the United States. Progress between Taipei and Vilnius has been slow, but it has gained steam with these investments. Tallinn can expect to reap some new investments with a Taiwan office and take part in the NDF. However, the benefits that Tallinn receives not only from Taiwan but also from the United States will likely depend on how loudly and forcefully Beijing complains — and acts on those complaints. No matter how much investment Estonia receives as a result of this new office opening, Tallinn is now a part of the cross-Strait competition — in an election year. With the upcoming January 2024 presidential election in Taiwan, Tallinn may have inadvertently become a foreign policy issue for the candidates, but that largely depends on Chinese retaliation. Any office will likely open under a new leader in Taipei, so while the announcement and prospective investment promises will occur under President Tsai, the implementation of such things will be up to her successor. After Lithuania defied China and its intense pressure to reverse course, Beijing is now in a situation where another Baltic country has allowed Taiwan to expand its unofficial international space — and thus expanded the threat landscape in its push to eliminate Taiwan’s presence abroad. The more these seemingly small countries defy China and the more they are backed by large countries (and, more importantly, fulfilled promises from Taiwan), the harder it will be for Beijing to keep the next case of Taiwan fever from spreading. The views and opinions expressed in this article solely belong to the author and do not represent the perspectives or stance of World and New World Journal, nor do they reflect the opinions of any of our employees. World and New World Journal does not endorse or take responsibility for the content, opinions, or information presented in this article. Readers are encouraged to consider multiple sources and viewpoints for a comprehensive understanding of the subject matter. Thank you for your understanding.

Although the visit to Saudi Arabia was brief, President Ferdinand R. Marcos Jr. said that it was a successful and productive one with various engagements accomplished to reaffirm the Philippines’ commitment to the partnership between the GCC and ASEAN countries, as well as to promote the country to prospect investors. In his arrival speech on Saturday following his visit to Riyadh, the President ticked off his accomplishments, mentioning the business-to-business agreements that would guarantee additional employment for Filipino workers. President Marcos described the ASEAN-GCC Summit held in Riyadh as a landmark event, adding that it was the first time that ASEAN and GCC Member States gathered together to discuss regional and international issues and on future cooperation. The six GCC member countries are Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates while Brunei, Myanmar, Cambodia, Indonesia, Laos, Malaysia, Philippines, Singapore, Thailand and Vietnam compose the ASEAN. “The Summit provided an opportunity to project the Philippines’ long-standing promotion of a rules-based international order, which is essential to the maintenance of peace, security, and stability in our regions which sit astride two of the most vibrant sea-lanes of trade and communications in the world,” President Marcos said. The President said that the Summit also provided an opportunity for the Philippines to secure a US$120-million Memorandum of Understanding (MOU) that would establish a 500-person capacity training facility in the country to upskill Filipino workers in the construction industry. “The facility aims to train at least 3,000 Filipinos a year and more than 15,000 in the next 5 years, ready for deployment at any time,” President Marcos said. Another three business-to-business agreements were also discussed among Saudi and Philippine human resource companies “for the training and employment of Filipinos across a wide range of industries including healthcare; hotel, restaurant, and catering; and maintenance and operations, amongst other operations.” “These agreements are expected to generate more than USD 4.2 billion and additional 220,000 jobs for Filipinos over the next few years,” he said. President Marcos also reported resolving the outstanding bilateral issue with Kuwait at the sidelines of the Summit, including working out the lifting of the deployment ban of Filipino workers. “Now, that will end and we will now return to the normal state of affairs with the Kuwaiti government,” he said. The President said he also had the opportunity to meet with the Crown Prince and Prime Minister of Saudi Arabia, and he referred to their discussion as “very encouraging,” with anticipated capital investments pledged by the government of Saudi Arabia to the Philippines. “We exchanged views on issues of common concern to our two countries, and I expressed hope that we can sustain the momentum of high-level exchanges as we expand cooperation in key areas of mutual benefit to our peoples,” President Marcos said. In his arrival speech, President Marcos reiterated his commitment to continue to advance the country’s interest and at the same time, expand the Philippines’ partnership with ally nations. “Let me assure you that we will continue to advance our national interests as we further expand our partnerships abroad,” Marcos said. In his speech during the Summit, President Marcos emphasized further cooperation in key areas including energy and food security and enhancement of logistic chains. He also called for safeguarding of rights and welfare of Filipino workers. President Marcos arrived at the Villamor Air Base in Pasay City at 2:50 p.m. Saturday. PND

There were smiles for the camera, handshakes, warm words and the unveiling of a couple of agreements. But beyond the optics of the first meeting in over a year between the leaders of the world’s two biggest economies, not an awful lot had changed: There was nothing to suggest a “reset” in U.S. and China relations that in recent years have been rooted in suspicion and competition. President Joe Biden hinted as much just hours after the face-to-face talks, confirming that he still considered his Chinese counterpart, Xi Jinping, a “dictator.” Beijing hit back, with foreign ministry spokesperson Mao Ning telling reporters Biden’s remark was “extremely wrong and irresponsible political manipulation.” As a scholar of U.S.-China relations, I believe the relationship between the two countries can be best described as an “enduring rivalry” – a term used by political scientists to denote two powers that have singled each other out for intense security competition. Examples from history include India and Pakistan, France and England, and the West and the Soviet Union. Over the past two centuries, such rivals have accounted for only 1% of the world’s international relationships but 80% of its wars. History suggest these rivalries last around 40 years and end only when one side loses the ability to compete – or when the two sides ally against a common enemy. Neither scenario looks likely any time soon in regards to China and the U.S. How enduring rivalries end China “is a communist country … based on a form of government totally different than ours,” Biden said after his meeting with Xi. That comment gets to the heart of why diplomacy alone cannot reset the U.S.-China relationship. Washington and Beijing are not rivals due to any misunderstanding that can be sorted out through talks alone. Rather, they are rivals because of the opposite reason: They understand each other only too well and have come to the conclusion that their respective world outlooks cannot be reconciled. The same is true for many of the issues that divide the two countries – they are framed as binary win-lose scenarios. Taiwan can be governed from Taipei or Beijing, but not both. Similarly, the East China and South China seas can be international waters or Chinese territory; Russia can be crippled or supported. For the United States, its Asian alliances are a force for stability; for China, they’re hostile encirclement. And both countries are right in their respective assessments. Diplomacy alone is insufficient to resolve a rivalry. At best, it can help manage it. When the US calls, who picks up? Part of this management of the U.S-China rivalry involves finding areas of agreement that can be committed to. And on Nov. 15, Biden and Xi announced deals over curbing China’s production of the deadly drug fentanyl and the restoring of high-level, military-to-military dialogue between the two countries. But the fentanyl announcement is very similar to the one Xi gave to then-President Donald Trump in 2019. The U.S. administration later accused China of reneging on the agreement. Similarly, committing to restarting high-level dialogue is one thing; following up on it is another. History is dotted with occasions when having an open line between Beijing and Washington hasn’t meant a whole lot in times of crisis. In 2001, when a U.S. surveillance aircraft collided with a Chinese jet over Hainan Island, Beijing didn’t pick up the phone. Likewise, during the Tiananmen Square massacre, then-President George H.W. Bush urgently tried to call his counterpart Deng Xiaoping but was unable to get through. Moreover, focusing on what was agreed to in talks also highlights what wasn’t – and is unlikely to ever be – agreed to without a substantial shift in power that forces one side to concede to the other. For example, China wants the U.S. to stop selling arms to Taiwan. But Washington has no intention of doing this, as it knows that this will make the disputed island more vulnerable to Beijing. Washington would like China to end its military displays of strength over the Taiwan Strait; Beijing knows doing so risks seeing Taiwan drift toward independence. American policymakers have long said what they want is China to “change” – by which it means to liberalize its system of governance. But the Chinese Communist Party knows that doing so means self-liquidation – every communist regime that has allowed space for alternative political parties has unraveled. Which is why American attempts to engage China are often met with suspicion in China. As former Chinese leader Jiang Zemin commented, engagement and containment policies have the same aim: to end China’s socialist system. For similar reasons, Xi has shunned attempts by the U.S. to bring China further into the rules-based international order. The Chinese leader saw what happened when Soviet leader Mikhail Gorbachev tried to integrate the Soviet Union into the Western order in the late 1980s – it only hastened the demise of the socialist entity. Instead, Xi calls for a massive military buildup, the reassertion of Chinese Communist Party control and an economic policy based on self-reliance. Actions speak louder … The encouraging words and limited agreements hammered out in the latest meeting between Xi and Biden should also not distract from the actions that continue to push the U.S. and China further apart. China’s show of force in the Taiwan Strait has been sustained for three years now and shows no sign of abating. Meanwhile, Beijing’s navy continues to harass other nations in the South China Sea. Similarly, Biden has continued the U.S. path toward military alliances aimed at countering China’s threat. It recently entered a trilateral agreement between the U.S., Japan and South Korea. And that came two years after the establishment of AUKUS, a security partnership between the the U.S., Australia and the U.K. that has similar aims. Meanwhile, the U.S. administration will continue to tighten the screws on China’s economy through investment restrictions. Biden is well aware that easy flowing money from Wall Street is helping China weather choppier economic waters of late and is keen to turn off the tap. The point of diplomacy This isn’t to say that diplomacy and face-to-face talks are pointless. They do, in fact, serve a number of interests. For both men involved, there is a domestic upside. For Biden, playing nice with China projects the image of a statesman – especially at a time when, due to U.S. positions on Ukraine and the Middle East, he is facing accusations from the political left of being a “warmonger.” And encouraging Beijing to tread softly during the U.S. election year may blunt a potential line of attack from Republicans that the administration’s China policy is not working. Meanwhile, Xi is able to showcase his own diplomatic skills and present China as an alternative superpower to the U.S. and to potentially cleave the Western business community – and perhaps even major European nations – from what he would see as the U.S. anti-China coalition. Moreover, summits like the one in San Francisco signal that both the U.S. and China are jointly committed to at least keep talking, helping ensure that a rocky relationship doesn’t descend into anything more belligerent – even it that doesn’t make them any friendlier.

The meeting at San Francisco between Presidents Joe Biden and Xi Jinping offers a short respite in the broader strategic conflict that both states have been waging since at least 2017. The friends and trade partners of both nations now have an opportunity to employ middle power diplomacy to advocate for their interests and also the moderation of competition. In his book Destined for War: Can America and China Escape Thucydides’s Trap?, Graham Allison provided historical examples of when a status quo power met a rising power and whether and why it resulted in war. Unlike his peer John Mearsheimer, author of the Tragedy of Great Power Politics, who concludes that competition and conflict between the US and China are inevitable due to the structure of the international system, Allison’s book provides a warning to both the US and China that the decisions they make could be positively or negatively consequential, leaving room for agency to be the final arbiter of the fate of bilateral relations. The pre-APEC meeting between President Joe Biden and President Xi Jinping was an invitro international relations experiment testing the premises of Allison and Mearsheimer as to whether US-China strategic competition will be shaped by the agency of leaders or the structure of the system. Superficially, the 15 November 2023 meeting allowed for an agreement limiting the precursors of fentanyl coming into the United States and, importantly, reviving regular talks under what is known as the military maritime consultation agreement. These modest but important agreements followed a throng of high-level cabinet visits to Beijing and reciprocal visits by Wang Yi, China’s foreign minister, that were meant to stabilise US-China relations. These agreements suggest that leaders in both countries can find diplomatic crosswalks to stabilise the relationship in functional areas. It also intimates that other window of cooperation such as climate change, anti-terrorism, transnational disease prevention, and poverty alleviation may be fertile ground for collaboration if leaders choose to move forward. While the modest takeaways from the meeting in San Francisco underscores that agency does have a role in bilateral relations, we should be realistic that they also reflect the deep structural challenges that exist between the United States and China. Moreover, they also represent the intractable nature of the structural challenges in the relationship, placing friends and allies of the United States and major trading partners of China, such as Australia, Japan, Canada, and Southeast Asian nations, with a difficult quandary: How to balance their economic prosperity and stability through a vibrant and beneficial trade relationship with China while maintaining a strong, comprehensive relationship with the United States as it deepens its strategic competition with China? In the US, there is bipartisan consensus that China represents a challenge to US leadership that needs to be dealt with comprehensively. Under the Biden administration, we have seen a systemic, sequential, and allied-first approach to competing with China. It has brought accolades from friends and allies and, predictably, criticism from China that Biden has not only adopted a continuation of policies towards China from the Trump administration, but that his policies are even more severe. The Biden administration has reinforced and reified its alliance partnerships with South Korea and Japan. It then enhanced its commitment to the Quadrilateral Security Dialogue (Quad) and demonstrated substantial leadership in terms of pushing back against Russia’s invasion of the Ukraine. More recently, the Biden administration forged a new trilateral partnership between South Korea, Japan, and the United States, under the so-called Camp David Principles. It also strengthened the quadrilateral security dialogue and its efforts to provide public goods to the Indo Pacific region. And we’ve gradually seen a more coherent AUKUS strategy that aims to create synergy between the UK, Australia, and the United States in the areas of AI research, quantum computing, hypersonic missiles, cyber, and importantly nuclear power submarines. Last, but not least, the adoption of the Chips Act, limiting the sale of sophisticated semiconductor chips to China and the associated technologies, suggests that the United States is not stepping down from its competition with China, but stepping up in the same way that the United States transformed every aspect of its governance following the 911 attacks. Similarly, there seems to be consensus in the Chinese political elite that the US and its allies are intent on containing China and attenuating its development. Xi Jinping’s 20th Workers Party Report at the 20th Party Congress highlighted the concerns China has about its external environment and advocated for strengthening the PLA to deal with separatist forces and external threats, while consolidating it political, social, economic, and ideological systems. Through the Belt and Road Initiative (BRI), the expansion of the BRICS and Shanghai Cooperation Organization, and the advocacy of the Global Development/ Security and Civilization Initiatives, China under the leadership of Xi Jinping is aiming to transform itself, its periphery, and the international system such that all are more conducive to China’s core interests, including preserving its political system. These realities suggest that rather than fostering a reset in bilateral relations, what we are seeing is both China and the United States taking a tactical pause in their strategic competition to amass the resources they need to compete successfully in the Mearsheimer world of great power politics and the maximisation of power. In closed-door discussions on China with Japanese, South Koreans, Australians, Canadians, Southeast and South Asians, as well as Europeans, we hear similar refrains: while China represents a “systemic challenge” in the case of the Europeans and NATO, or is a “disruptive power” in the case of Canada, or as Japan writes in its 2022 National Security Strategy, “the greatest strategic challenge in ensuring the peace and security of Japan and the peace and stability of the international community,” China is also an important and largely irreplaceable economic partner and essential player in dealing with global challenges such as climate change. The question for friends and allies of the United States is how to balance the increasingly difficult and competitive relationship between China and the United States in a way that ensures that they can continue to have strong economic relationships with China while building resilience into their economies and into their economic relationship, such that the economic weaponization of supply chains and the monopolisation of resources cannot negatively affect trading partners of China. Part of these states’ responses to protect their national interests from the structural realities of Sino-U.S. strategic competition will be a middle power diplomacy that aims to shape the competitive nature of the relationship between the US and China. This will be implemented through coordinating their diplomacy and proactively lobbying, insulating, and investing in rulemaking in the realms of security, trade, and international law alongside their like-minded ally the US, but at times also in opposition to the US. This will require investing in diplomatic resources in both the US and China, in the broader Indo-Pacific region, and at the subnational level to forge strong state to state relations to effectively lobby US policy makers to inculcate the interests of allies and friends of the US in their strategic rivalry with China. Similarly, through forging stronger relations with Chinese provincial leaders though trade and investment, middle powers and stakeholders in the US-China strategic competition may be able to have their interests reflected in a moderation of China’s approach to competition with the US.

Long-standing unresolved colonial history and territorial issues between China and Japan, as well as the two countries’ opposing world views, have increasingly manifested in the escalation of tensions. With high-level political/diplomatic communication at a standstill, the relationship has become adrift. In August 2023, the latest spate erupted when Japan decided to release treated radioactive wastewater from the Fukushima nuclear power plant into the Pacific Ocean. Although approved by the International Atomic Energy Agency, and considered safe by scientists, the discharge sparked vehement criticism from China which rejected the IAEA assessment. Yet it is common knowledge that China, South Korea, and Taiwan as well as many countries with nuclear facilities release radioactive tritium into the sea. Nevertheless, in China’s words, the Pacific Ocean is being used as “Japan’s private sewer.” Stating concerns with “food safety,” the Chinese government has suspended all Japanese seafood imports with an immediate economic impact and price falls in Japanese domestic seafood markets. Beyond the diplomatic row, trolling on Chinese social media and nuisance calls in their thousands have hit Japanese government agencies and businesses. China’s Global Times has characterised Japan as a “rogue state.” With the further planned releases of water, this issue will continue to simmer. Violent attacks in words and actions through Chinese social media and street demonstrations against Japan are not new. Attacks on Japanese establishments in China and anti-Japanese demonstrations have happened before. In 2005, when a new set of history textbooks was released in Japan, many Japanese establishments including the Japanese Embassy in Beijing became targets of attacks from protestors opposing what they called Japan’s attempt to whitewash history. Attacks on Japanese-brand cars and smashing windows of Japanese-owned businesses occurred again in the 2010s following Japan’s decision to nationalise the Senkaku islands which Japan administers but China claims and calls the Diaoyu islands. Tensions had begun to build in 2010 when a Chinese fishing boat rammed two Japanese Coast Guard vessels in the waters near disputed Islands and Japan detained the captain. It was not always like this. Japan and China enjoyed a long honeymoon period and close economic and diplomatic relations after they “normalised” ties and signed a peace treaty in the 1970s. Private investment and government aid poured enormous capital, technology, and human resources into the country, setting China on the path of modernisation. Exchanges at all levels intensified, shelving historical and territorial issues, ushering in an apparent golden era of bilateral ties. The cracks began to open as China started to overtake Japan when the latter was only slowly emerging from years of economic malaise. China overtook Japan as the world’s second-largest economy in 2010, a status Japan had enjoyed for four decades. With China’s prosperity came its economic dominance and military muscle flexing. Since the 2010s, old wounds once papered over, have reopened. China maintains and often claims that Japan has not properly apologised for its colonial and wartime atrocities and that their territorial disputes must be settled (in its favour). Tokyo though, believes it has done all it can and that Japan’s ownership of the Senkaku islands is indisputable. Given China’s now highly confrontational views, the once-strong pro-China constituency in Japan is thinning fast. Public opinion on both sides is now overwhelmingly negative towards the other. Japan considers its neighbourhood strategically far more challenging and dangerous today than at any time in the recent past. Besides North Korea’s sabre rattling and its deteriorating ties with Russia, China’s designs on Taiwan are of special concern as any forceful change in the status quo will have major implications for Japan’s security. Partially reflecting this belief, high-ranking Japanese politicians’ visits to Taiwan in recent months, including that of the Vice President of the ruling Liberal Democratic Party and former Prime Minister Taro Aso’s in August, are very significant. Aso’s call to deter China sends strong signals that Japan takes the China threat very seriously. As a result, Japan is substantially increasing its defence budget and has committed to a significant military build-up. Prime Minister Fumio Kishida has often referred to the war in Ukraine as akin to what possibly might happen in East Asia, that is, a possible Chinese invasion of Taiwan. These developments have enraged China, causing further deterioration in the relationship. China even cancelled a planned August visit by Natsuo Yamaguchi, the leader of the ruling party’s coalition ally, Komeito. This leaves no room for summitry at the leader level in the near future. Notably, Komeito, the political arm of the Buddhist Soka Gakkai, has been a key interlocutor between Tokyo and Beijing, since the 1970s. Japan-China tensions are not just limited to bilateral matters. Irreconcilable differences stem from their broader perspectives on world politics. Japan is deeply embedded in Western systems and advances the free-and-open Indo-Pacific, and has strengthenied military ties with the United States and its allies and partners. Japan offers alternative models of development to the Global South, such as quality infrastructure initiatives as opposed to China’s Belt and Road Initiative. Japan’s Quad initiatives, leadership in the Comprehensive and Progressive Trans Pacific Partnership and its support for AUKUS stand in contrast to China’s leadership in the BRICS, Shanghai Cooperation Organization, its “no limits” ties with Russia, and support for North Korea. Japan long separated politics and economics (seikei bunri) in its ties with China, but the boundaries which once kept economic ties strong despite political differences have weakened with what Japan calls China’s increasing economic coercion. The earlier narrative of “hot economics and cold politics” has given way to a new reality with all matters including an increasingly securitised economic relationship. With China’s “coercive and intimidating” behaviour such as its 2010 export ban on rare earth elements and the latest ban on seafood, Japan is cautiously but constantly trying to de-couple and de-risk as well as carry out onshoring and “friendshoring.” China remains Japan’s number one trading partner and a major destination for private capital, but this may well change, albeit gradually as Japanese businesses consider other options. Signs of some improvement through then Prime Minister Shinzo Abe’s visit to Beijing in 2018, and Prime Minister Fumio Kishida and President Xi Jinping’s meeting on the sidelines of a multilateral forum in 2022, may give a false impression of thawing, because the relationship has become so fractious and adversarial that progress remains elusive. As long as China continues flexing its military muscle and deploys economic coercion while building spheres of influence countering Japan; and Japan in turn strengthens its military ties with the US and establishes strategic partnerships to balance China, the relationship is unlikely to improve.