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Diplomacy
Paris, France, 25-04-2024 : Visit of the President of the Republic, Emmanuel Macron, for a major speech on Europe at the Sorbonne.

2024 Election Watch: France, the European Union, Germany, and Mexico

by Collin Chapman

한국어로 읽기Leer en españolIn Deutsch lesen Gap اقرأ بالعربيةLire en françaisЧитать на русском Elections in Europe demonstrate the growing popularity of far right parties as key outsiders gain on critical votes. In France, President Emmanuel Macron has moved to dampen Marine Le Pen’s success in the European Parliament with a snap national election. The election calendar for June has already thrown up some surprises, particularly in the northern hemisphere. To be sure, Prime Minister Narendra Modi was re-elected, though with a much-reduced majority which will place limits on his power. But the biggest shock is in Europe where French President Emmanuel Macron decided to call a snap election for 30 June after his most notorious far-right rival, Marine Le Pen, pulled off a decisive victory in the French election for the European Parliament. Macron is taking a massive gamble—that in a national election he can recover some of the popularity he has lost since his re-election as president in 2022, squashing Le Pen’s challenge to his leadership. The initial reaction of the commentariat is that Macron will manage a return to the Élysée palace, largely because the centrist parties holding the middle ground were the overall winners and the Left and the Greens failed to increase, or lost, shares of the vote. “I’ve decided to give you back the choice,” Macron said in an address to the electorate from the Elysée palace. In France, the Rassemblement National (RN) party led by Le Pen won 31.5 percent of the country’s vote, according to early results. In Germany, the three parties in Olaf Scholz’s fragile coalition—the Social Democrats (SPD), Greens, and the liberal FDP—were all overtaken by the far-right Alternative for Germany (AfD), which came in second behind the conservative CDU-CSU opposition. Significant gains by nationalist and ultra-conservative parties were also anticipated by exit polls in Austria, Cyprus, Greece, and the Netherlands. In Italy, prime minister Giorgia Meloni cemented her position in her governing coalition, and potentially her hand in negotiations with other European leaders, with her hard-right Brothers of Italy party taking over 28 percent of the vote in the European parliamentary elections. Attention will now turn to the campaign by Ursula von der Leyen, president of the European Commission, to win another five-year term in office. She has a good record and currently no obvious challenger. Nonetheless, her re-election will hinge on her ability to make uncomfortable choices and deals, taking into account the EU’s clear shift to the right in parliamentary elections on 9 June. Though her centre-right European People’s party won the election, securing 189 seats in the 720-strong assembly, von der Leyen’s allies fared worse and the hard right surged from a fifth to nearly a quarter of seats. Her fate is likely to be decided at an EU summit on 27 June when she will seek the personal backing of the EU’s 27 leaders and aim to demonstrate to them that she has the required support in the European Parliament. Mexico Another remarkable election result this month was in Mexico where the ruling left-wing Morena party won a landslide victory in presidential, congressional, and state elections. While president-elect Claudia Sheinbaum and Morena’s victory on 2 June was not a surprise, the scale of it was. Sheinbaum won more votes than the centre-right Xochiti Galvez across genders, age groups, and in every state bar one, coming in 31 points clear of her rival. After decades of high poverty, glaring inequality, and low wages, the ruling Morena party more than doubled the minimum wage and expanded social programs, endearing itself to Mexico’s long-neglected have-nots. The result has left Mexico’s conservative elite struggling to understand the left’s landslide win, living as they do in gated communities far removed from the lives and feelings of average Mexicans. There are unlikely to be any surprises in the other major election this month—that of Iran on 28 June. Iranian authorities have disqualified prominent moderates as candidates in the snap presidential election, called following the helicopter crash that recently claimed the life of Ebrahim Raisi, the country’s president, and other senior ministers. The field of candidates has been narrowed to five hardliners and one mid-ranking reformist. The United Kingdom has seen a frenzy of election activity this month following Prime Minister Rishi Sunak’s surprise decision to call an early election on 4 July. Polls show that there is likely to be a change of government to the opposition Labour party, which is currently holding a 22 percent lead, after 14 years’ Conservative government.

Defense & Security
France and New Caledonia flags.

France, New Caledonia and the Indo-Pacific

by Denise Fisher

한국어로 읽기Leer en españolIn Deutsch lesen Gap اقرأ بالعربيةLire en françaisЧитать на русском How France manages the first outbreak of serious violence in New Caledonia in 40 years will affect not only its future role there but its acceptance as a resident Pacific, and Indo-Pacific, power. The violence of indigenous independence supporters, many of them very young, signals that the inconclusiveness of earlier peace agreements risks taking New Caledonia back to the bloodshed of the 1980s. The unrest is targeting the capital, Noumea, and its population of Europeans, who mostly support staying French. The wounds are deep. The peace agreements that ended violence in the 1980s largely succeeded because of difficult and constant compromises by the French state, loyalist parties and independence parties. Mutual trust in the promises of those agreements to work towards self-determination underpinned the French state conducting three referendums in New Caledonia from 2018 to 2021. The first two were impeccably organised and showed, respectively, that 56.7 percent and 53.3 percent opposed independence. But the state dropped the ball in a third referendum in 2021, sticking with an intended voting date despite indigenous requests for postponement. At the time, hundreds of Kanaks had died from Covid-19. Their leaders said they could not ask their people to campaign or vote when their traditions required lengthy mourning rituals. The resulting indigenous boycott saw the count of opposition to independence soar to 96.5 percent. Since then, divisions have deepened. Loyalists, backed by the government in Paris, say all three votes were valid and want to cement the territory as part of France. Independence groups reject the third vote and seek another; some refuse to participate in discussion about the future. They rejected Macron’s offer of a chemin de pardon (path of forgiveness) when he visited in July 2023. They did not attend a meeting he convened, and their supporters did not turn out for his major speech there, sending a strong message of discontent. Macron then threatened unilateral action unless local parties came to an agreement. Informal discussions between some parties from each side in December ended with wide divergences, including over a further independence vote and voter eligibility. To set a deadline, Macron introduced legislation postponing local elections from April 2024 to December 2025, and he put forward another bill that would amend the French constitution, imposing broader voter eligibility and thereby diluting the Kanak voting share, unless locals reached agreement before the end of June. Demonstrations erupted into violence on 13 May, the day France’s National Assembly debated imposing from Paris the enlargement of voter eligibility. The destruction perpetrated by young Kanaks signalled not only to France and loyalist parties who were their targets but also to Kanak leaders and neighbouring countries the depth of distress of a new generation who felt disrespected and excluded from determining the future of their homeland. How France responds will be decisive for its sustainable future in New Caledonia. New Caledonia’s population is about 270,000. In the census of 2019, indigenous Kanaks were 41 percent, Europeans 29 percent and other Pacific islanders and ‘others’ composed the remaining 30 percent. Another census is due this year. Kanaks may now exceed 45 percent, since there have been net departures of about 2000 people a year since 2015, almost all presumably non-indigenous. Moreover, some people in the ‘others’ category, which includes the sub-categories of ‘mixed’ and ‘Caldeonian’, would also be Kanaks. And the Kanak share of the population will rise, especially since recent developments may contribute to an increase in non-Kanak departures. While New Caledonia’s neighbours have quietly supported the peace agreements, they remain concerned about the interests of the islanders in the non-self-governing French territory. Some of them took New Caledonia to the United Nations Decolonisation Committee in 1986, ensuring annual UN scrutiny of the territory and France’s dealings with it since then. The Pacific Islands Forum (PIF) has regularly sent missions monitoring implementation of the Noumea Accord and observed each referendum, expressing serious reservations on the third. The Melanesian Spearhead Group (Papua New Guinea, Fiji, Vanuatu, Solomon Islands and New Caledonia’s FLNKS independence coalition) was formed in the mid-1980s specifically to support Kanak independence claims. With the eruption of violence, their silence has broken. Making Australia’s highest-level statement in decades, Prime Minister Anthony Albanese said Australia was closely monitoring the situation and encouraged all parties to work together constructively to shape the institutional future of New Caledonia. PIF Secretary-General Henry Puna said he was not surprised by the riots, noting it was unfortunate that the third referendum had been allowed to go ahead amid the pandemic. PIF chair and Cook Islands Prime Minister Mark Brown said New Caledonia and French Polynesia had been included in the forum ‘in recognition of their calls for greater autonomy coming from their people’, and supported providing help to prevent conflict. Vanuatu Prime Minister and Melanesian Spearhead Group Chair Charlot Salwai publicly opposed France’s constitutional change and urged a return to the spirit of the peace agreements and the sending of a dialogue mission led by a mutually respected person. France has done much to regain the acceptance and trust of the region in recent decades. Responding to island governments’ visceral opposition to its policies in the 1980s, France abandoned nuclear testing in the region and gave greater autonomy to its Pacific territories. It did so by respecting local governments and people. Macron has articulated an Indo-Pacific vision for France that’s firmly based on its sovereignty in the Pacific. But, to maintain France’s claims as an Indo-Pacific power, he must listen to the large and growing indigenous minority in its pre-eminent Pacific territory, New Caledonia. And he must listen to the appeals of Pacific island governments, so they and France can move forward together with humility and respect.

Diplomacy
Vladimir Putin: Answers to questions from journalists following a visit to China

Vladimir Putin: Answers to questions from journalists following a visit to China

by Vladimir Putin

한국어로 읽기Leer en españolIn Deutsch lesen Gap اقرأ بالعربيةLire en françaisЧитать на русском Vladimir Putin replied to questions from Russian media representatives on the outcomes of his two-day state visit to the People’s Republic of China. Question: It would not be an exaggeration to say that the whole world watched your visit here, as evidenced by a spate of news reports and publications. It is clear that the future of the rapidly changing world largely depends on the positions of Russia and China. Following your talks in China, we would like to know whether Moscow and Beijing have a shared understanding of how the future system of international security and politics should evolve. Vladimir Putin: First of all, I would like to thank President of the People’s Republic of China Xi Jinping and the leadership of China for this invitation and for creating a very favourable and warm atmosphere for our joint work. On the whole, the talks were very meaningful and very substantive. This was an official state visit, but it was also very much a working trip. From morning until evening, we spent virtually the entire day with the President of China and his colleagues. We raised multiple issues for discussion. You said that the future depends on Russia and China, but this is only partly true. The future of humankind depends on the whole of humanity. Certainly, Russia and China are important components of modern civilisation. We have our own views on how we should develop. Certainly, our advancement will influence the advancement of all partners on the planet. We believe that development should be constructive and peaceful, no doubt about it. Apart from our interests, it should heed the interests of all parties to international interaction. Of course, it is necessary to strengthen the emerging multipolar world. There is absolutely no doubt that a new world is taking shape before our eyes and becoming multipolar. I believe all the people are aware of this. It is important that those who are trying to maintain their monopoly on making decisions on all issues globally should realise this (I believe that they do realise it perfectly well). Understanding this, they should do everything possible to facilitate this natural process. I repeat, this process should be peaceful and conflict-free, with the opinions of all parties to the international process fully considered. All of us should seek compromises while making the difficult decisions that lie ahead. We are committed to this approach and to precisely this kind of work. I have discussed this repeatedly, and the President of China has also emphasised this: our interaction, cooperation and strategic partnership with China, Russia-China partnership, is not directed against anyone. Our aim is solely to create better conditions for the development of our countries to improve the well-being of the peoples of China and the Russian Federation. Question: How did your informal meeting with Xi Jinping go? Your aide said it took place in a super-narrow format but was attended by Defence Minister Andrei Belousov and Security Council Secretary Sergei Shoigu. Did you discuss Ukraine? What would you personally consider convincing evidence of Ukraine’s readiness for talks? Earlier both you and Foreign Minister Sergei Lavrov repeatedly said that the Western partners could no longer be trusted. Vladimir Putin: Yes, this meeting took place in the narrow format. We really discussed many issues that are important for bilateral relations. We discussed the issue of settling the Ukrainian crisis. The President of the PRC told me the main theses of what he discussed during his recent visit to Europe. He set forth his position linked with Chinese peace initiatives. We have said more than once that we believe that China is sincerely striving to settle this problem. It offers different options and is very flexible. I believe it is sincerely striving to resolve this problem. We discussed this at some length. As for our counter partners, let’s say in this case these are Ukrainian leaders and their European and overseas bosses. Well, we have spoken about this many times. When our troops stood near Kiev, our Western partners told us: it is impossible to sign documents when the other side puts a gun to your temple. “What should be done?” we asked. “It is necessary to withdraw troops from Kiev.” We did this. On the following day, they threw all our agreements into the dustbin and said: “Now we will fight to the end.” Their Western curators occupied the position that is now known to the whole world – to defeat Russia on the battlefield, to inflict a strategic defeat on it. It wasn’t us who behaved in this way. These were our partners. Ukrainian officials confirmed this, in particular, the head of the Ukrainian delegation at the talks in Minsk and later in Istanbul, said this. The then Prime Minister [of Great Britain] Mr Johnson came to Kiev and advised Ukraine to continue hostilities. Mr Arakhamia, the head of the Ukrainian delegation, who now leads the ruling parliamentary party in Ukrainian parliament, said that otherwise all hostilities would have been ended a year and a half ago. He said this in public, I believe, at his meeting with journalists. Nobody actually had doubts about this. So, let’s sum up this part of my answer to your question – we were cheated again. Now we need to understand whom and how we should deal with, whom we should trust and to what extent. Of course, we are analysing now everything that is taking place in this regard. Of course, we are looking at what is happening around the universally announced meeting in Switzerland, in Geneva. I believe this is the venue of the meeting. We are certainly not going to discuss any formulas about which we know absolutely nothing. But as distinct from Ukraine, we have never rejected talks. It is they who have quit the negotiating process. They announced that they are going to inflict a strategic defeat on us. It is they who said they were “going to fight to the end,” actually not to the end but to the last Ukrainian. They did everything with their own hands. We have a foundation for the negotiating process – what we agreed on in Istanbul and a signature of the head of the Ukrainian delegation under an excerpt from this large document. He initialed it. We have this document with his signature on it. What are these other additional terms about which we have never heard and know nothing? The goal of this event is clear. They want to gather as many countries as possible, declare that everything has been agreed upon with everyone and then present it to Russia as a resolved issue, as an ultimatum. This will never happen. Question: Keeping with the theme of Ukraine… Yesterday, Vladimir Zelensky visited Kharkov and held a general headquarters meeting there. At the same time, we are involved in heavy fighting near Kharkov and our troops seem to be gaining success. Vladimir Putin: The word “seem” is wrong. They are gaining success. Each day, they advance in strict conformity with the plan. Question: What is the plan all about? Are we going to seize Kharkov? Or does our objective consist in creating a sanitary zone, as you said earlier? Thank you. Vladimir Putin: I do not know what the head of the Ukrainian state was saying. The only thing I know is that in the final analysis, they are to blame for what is happening. The origin of the current Kiev authorities is the coup d’etat [that occurred in 2014]. This is the source of the present-day authority in Ukraine. This is my first point. Second, [Kiev’s] Western sponsors allowed the coup to happen by facilitating and orchestrating it. They created the conditions for a smoldering conflict to grow into an armed conflict. They are to blame for this. They are attempting to lay the blame on someone else and make Russia responsible for the current tragic developments. But this is the result of their own policies. As far as the developments in the Kharkov sector are concerned, they are also to blame for these, because they shelled and, regrettably, continue to shell residential areas in border territories [of Russia], including Belgorod. Civilians are dying there, it’s clear for everyone. They fire missiles right at the city centre, at residential areas. I said publicly that if this continues, we will be forced to create a security zone, a sanitary zone. And this is what we are doing today. As for [the seizure of] Kharkov, there are no such plans for now. Question: It has recently been reported that Chinese banks stopped accepting payment transfers from Russian banks. Did you discuss this issue with the Chinese leader? If so, have you reached an agreement? Have you coordinated a potential scheme of settlements that would be immune from Western sanctions? Thank you. Vladimir Putin: Sanctions imposed on third countries engaged in economic activities are doubly or triply illegitimate because sanctions are absolutely illegitimate when adopted without the approval of the UN Security Council. This goes beyond common sense when it comes to third countries. Incidentally, the Americans or Europeans are even using such sanctions against their own allies. Europeans are not using them against the Americans, but the Americans apply such sanctions against European economic operators and often follow them through not only with regard to Russia but also against other countries in other situation. It is a common practice, and Europeans bear with this, proving yet again their vassal dependence on the sovereign over the sea. Well, whatever! As for such decisions, they certainly do direct damage to the global economy, not just to the countries they are adopted against or their economic operators, but also to the global economy as a whole, including energy and other spheres of economic operation, and primarily the issues of settlements that are discussed by the economic operators. Solutions are possible, and there are such solutions. Of course, they should be supported at the level of governments, and I hope that this is how it will be. The reasons behind the behaviour of large financial institutions are understandable: nobody wants to sustain losses because of US actions, even if they are illegal. However, I would like to repeat what I said before: it is silly and a huge mistake of the American political elites because they are inflicting big harm on themselves by undermining trust in the US dollar. They are gradually undermining the status of the dollar as a global settlement and reserve currency, even though they are deriving huge profits from this now. First, they adopted the Bretton Woods system. Then they abandoned the gold standard of the dollar and [formalised a floating exchange rate system under] the Jamaica Agreement. What is it based on? It fully depends on the money printing press, or putting it more gallantly, on the might and quality of the American economy. Yes, this is exactly how things stand. All countries in the world trust the American economy, its might and stability, which is why they accept the dollars. This gives a huge and seemingly inexplicable advantage to the American economy and financial system. However, it can be presented in figures. According to our economists, it amounts to over 10 trillion dollars that have not been earned but are a gift from heaven that comes from the use of the dollar as a global reserve currency. Overall, the obligations of the US financial system to the rest of the world have been estimated at $53.4 trillion. However, by undermining trust in the dollar for political reasons, the US authorities are weakening the main and the most powerful and important instrument of their might – the dollar itself. They are doing irreparable damage to themselves. Using one of popular sayings, they are quarrelling with their own bread and butter. This is thoughtless, but they seem unable to stop doing it. The disadvantage of this for us is that we have to look for other solutions. However, there are also advantages, because it is unacceptable when one side is using financial and economic instruments to force its will on the rest of the world, including on the political stage. I assure you that all countries are aware of this; you only have to look at how fast their dollar-denominated reserves are diminishing. The world is responding. I believe that the [de-dollarisation] process is inevitable. We have started doing this, and it is a correct process. It entails certain shortcomings and problems, but it is correct in general, when we speak about making settlements in national currencies or creating other settlement instruments jointly with other countries. The process is underway; it has begun, and it cannot be stopped. Question: Mr President, let me return to the subject of Ukraine and certain Western initiatives. You have mentioned yesterday’s lengthy discussion with Xi Jinping on this issue. Could you please tell us whether you touched upon Macron’s initiative to declare an “Olympic truce”? Do you believe an Olympic truce is possible now? Or is this another attempt by the West to lure Russia into a trap, especially amid its military successes? Thank you. Vladimir Putin: Yes, President Xi Jinping mentioned this, and we did discuss this issue briefly. What I think is, first, the principles of Olympism, including the Olympic truce concept, are very sound principles. There is a reason the international community has spent centuries working them out. True, few countries ever invoked this particular principle, with the exception of Ancient Greece, but in general, the idea itself is good and constructive. The issue lies elsewhere. It has to do with the current international sports officials themselves violating the principles of the Olympic Charter. They are politicising sport, which is absolutely unacceptable, because the purpose of sport is to serve as a platform for communication between people and for negotiating compromises on other issues, including political ones. They are violating their own rules, now with regard to Russia, by excluding our athletes from the Olympic Games, not allowing them to display their flag, anthem, or national colours. They are violating the rules with regard to us, but they want us to comply with the rules that they dictate to us. Has anyone given this a thought? Is this in line with the elementary norms of justice? No. They are violating the rules but they demand that we comply with them. Well, friends, this is not getting us anywhere. No one has ever reached agreement like this. Before demanding anything or expecting others to do something, one needs to follow these rules. Overall though, sports are certainly progressing, and this progress will continue. I don’t know how the Olympic movement will fare now, with such officials. If they put money first, if money is the only thing that motivates or drives them, if sport becomes a commercial enterprise solely aimed at making a profit, I cannot see a bright future for the Olympic movement. Look, sport has actually transformed into a for-profit corporation. What is their top priority? To raise money from sponsors and to have large information companies pay for broadcasting. This is just a big business profiting from sporting events. But the principle of Olympism is something else – it is about humanitarian values. Question: This week, the US imposed duties on a number of Chinese goods – chips, semi-conductors, metals and solar batteries. Most important, it raised the duty on Chinese electric cars, I believe, four times, up to 100 percent. Can these moves be considered sanctions against China? Is Russia-China cooperation helping counter such attacks? Vladimir Putin: Of course, on the surface, they look like sanctions but these are already elements of an economic war to a certain extent. This is not the first time they have been used. Incidentally, I can assure you that politics, the character of Russia-China relations and the situation in Ukraine have nothing to do with this. These are just elements of unfair competition. We were making an MS-21 aircraft. We agreed on purchasing certain components that we had to put into its wings. These components have nothing to do with military production. They simply denied them to us by including them into a sanctions list. Indicatively, this list was linked with military production whereas the components we wanted had nothing to do with it whatsoever. Yes, we lost time and this production was pushed back by about a year and a half. But eventually, we made these components, these aircraft wing carbon fibre tows. We made them and they are even better than the American ones in quality and durability. The result will be the same in this case. I have just explained at the meeting with students why such restrictions were introduced against the Chinese auto industry, against electric cars. Just because they have become better and cheaper than European or American ones. That’s it. They are simply killing competitors, in this case, the Chinese rival and do not let it into their market. This is a prohibitive duty. The same is taking place in Europe, of course. As soon as some country, a global development centre, as we often put it, is developing and becoming more competitive, they stop it and put it down, they try to make it happen. Can Russia-China cooperation counter this in some way? To prevent this from happening, they are creating problems in financial items because we could purchase more. But we are restricted in purchasing these products because of money transfer problems. Is it possible to do something about this? Yes, it is. We will develop joint productions. This requires time, just as it was with aircraft components when we had to delay their production by half a year. This is the same case. We will go for joint production. This is the most erroneous and stupid way of building an international economic system. The correct idea is that the market decides everything and they were drumming it into our heads for decades, if I may put it this way – pardon the fancy language. But the market will still push them down. Do you understand what the point is? They are creating this problem for themselves with their own hands. What will this lead to? They have introduced sanctions against various goods. What will it lead to? Inflation in the US. This is what they will get. Because they will try to make these products themselves, at their own sites, paying wages to their own workers, paying for their expensive metal and their expensive energy. This is the result – the German economy in Europe is already operating nearly in the red while the French economy is teetering on the brink of recession. If the German economy starts coughing and feels bad, the entire European economy will not feel quite well, putting it mildly. This is the result of such decisions. These are not market decisions. They are completely stupid and have no prospects whatsoever. Question: Please, tell us at what conditions you would attend a peace conference on Ukraine in Switzerland if you should receive such an invitation. Thank you. Vladimir Putin: Well, politics does not know the subjunctive mood: “if only.” We will not continue. You know what would have happened there in other cases. But there are no “ifs.” They do not invite us. Moreover, they say they cannot imagine us being there. So what will we be [talking] about? “If you do this” looks like we are trying to get invited. “But if you do this, and if this is the case, then we would make these decisions.” Well, if they cannot imagine us being there, so much the better. This is first. The second, very important thing, is that we are not going to discuss right away what we do not know. As I said, we had been holding painstaking talks for a long time, almost a month and a half; first in Minsk, then in Istanbul, and reached certain compromises. The Ukrainian side signed an abstract of these documents. The package alone is so thick, but the summary with the fundamental issues outlined there were initialed by the Ukrainian side. So, we worked on it. Now there are some formulas but what are they based on? Based on some wishes and not on the real situation. Well, it is impossible to discuss. However, we are ready for discussion. We never refused. I have just said that, and this is not a joke, I did not make it up. As soon as the troops withdrew, the Westerners immediately told Ukraine: “Do not sign anything. Fight.” They snapped a salute and are following out. While we were immediately told, “Now we will fight to the last man.” This is what we were told. There will be no more talks. Now they see that they cannot succeed. Perhaps they will be able to fight to the last man but they cannot inflict a strategic defeat on Russia, and they can see that. Now they are beginning to squeak . “Let us urgently convene a conference.” – “Sure.” – “Will Russia participate?” “We are ready to participate in peace talks.” “But we will not invite you.” Here you are, Good Lord, there we go. And Russia is being accused of being reluctant to take part. But we have not been invited. You are asking: on what conditions? Why should I be proposing terms and asking to let me come where we are not wanted? And what is it that they want to do? Gather as many countries as possible, convince everyone that the terms proposed by the Ukrainian side are the best offer, and then present this to us as an ultimatum, saying, “You see, the whole world thinks so. Thus you must agree.” Is this a way to conduct substantive and serious talks? Of course, not. This is an attempt to impose. There was an attempt to inflict a strategic defeat, but it failed. The attempt to impose will end the same way. Remark: But still, as I see it, your condition is that the agreements reached must be in force. Vladimir Putin: Of course. This is the basic condition. They initialed it, but the document was not fully signed. It includes very serious issues related to ensuring Ukraine’s security. They are worded in such a way that requires subsequent consideration. But overall, this is the basis. They have been initialed by the Ukrainian side. I think, not least, probably, if not under the diktat, then with the consent of their Western sponsors. But everything is rigorously worded there regarding their interests. There is also something that has been taken into account concerning Russia’s security interests. There are a lot of questions there, which I do not want to go into right now. I remember if not all of them but all the main provisions. We are ready to discuss this. But then they dumped it because they wanted to gain an advantage on the battlefield and achieve a strategic position, which did not work out; so now they are handing out their terms. Have they gone nuts? Why on earth? Of course, we will proceed from the realities on the ground. This goes without saying. Question: My question isabout China and supplies of our hydrocarbons to it. Has an agreement in principle been reached on the Power of Siberia 2 project? When will construction start: this year or next year? Have there been any talks about a possible increase in supplies? Vladimir Putin: Yes. I am not ready to speak about technical details now, but both sides have confirmed their interest in implementing these projects. Since the Chinese economy is growing, it requires, accordingly, more energy resources needed to maintain this growth. Nothing is more reliable (I think this is clear) than supplies from Russia. We have a huge common border, and no one will interfere here: neither sanctions against the tanker fleet, nor even sanctions against financial institutions. We will buy and sell everything in national currencies. Therefore, the interest on both sides has been reaffirmed. On the one hand, there is interest in receiving additional volumes, on the other hand, there is interest in selling on the Chinese market. This is always a complicated process, involving the question of prices, the question of who will earn and how much. However, strategically we are absolutely interested, both the countries, in implementing these projects, and we will move forward with them. Gazprom and our oil companies will certainly come to terms. There are different routes. One of them runs via Mongolia, and both gas and oil pipelines can be laid in the same corridor. Specialists will have to decide how best to proceed. It is possible to use the Northern Sea Route. We can buy extra tankers and set up supplies via the Northern Sea Route, which is almost the same as the pipeline. All these alternatives are possible. They are all acceptable and economically expedient. It is necessary to choose the best ones. I am confident that this work will be completed as well. Question: My question is also about Ukraine, if I may. Vladimir Zelensky’s term of office is about to end, it expires on May 20. Will Russia no longer consider him a legitimate president after that date? And would it matter to you, will you be ready to talk to him afterwards? Vladimir Putin: We used to talk with him; we were in constant contact with him before the conflict entered the extreme phase of armed struggle. As for legitimacy, this question must first of all be resolved by the political and legal systems of Ukraine itself. There are all sorts of options in their Constitution. This is a question of assessment. This assessment, of course, should be primarily made by the Constitutional Court and in general, by the political system of Ukraine. But for us, of course, it matters, because if it comes to signing some documents, we certainly will have to sign documents in such a crucial area with the legitimate authorities, this is an obvious fact. But, I reiterate, this question must be answered by the political and legal (juridical) systems of Ukraine itself. Thank you very much. Question: Did you discuss with President Xi Jinping the fact that China had been invited to this international conference? Vladimir Putin: We discussed this issue as part of the package. Thank you very much for your attention. Question: Mr Putin, what about the French army in Ukraine? Vladimir Putin: I am not the president of France. Why are you asking me this? I am not the one to make this decision. Question: Mr Macron has repeatedly conveyed that he was ready to send troops there. If regular French troops move to Ukraine, will it mean a direct conflict, a war with the French? Vladimir Putin: First, you should have him answer your question about the French troops in Ukraine. Once you get the answer, we will start considering the consequences of this step. Question: Mr Putin, may I ask about the figure of [Defence Minister Andrei] Belousov? Excuse me, please, this is my last question. Why was Belousov appointed the Defence Minister? We are now at a critical juncture of the special military operation. Vladimir Putin: I covered that already. Mr Peskov covered that, too, because I asked him to do so. I will go over it again. This year, the level of defence spending for the Defence Ministry alone amounted to 6.7 percent of GDP. If you combine that with the amounts spent on law enforcement and security agencies, the total amount will slightly exceed 8 percent. The Defence Ministry accounts for the bulk of the spending meaning that the amount of spending of law enforcement and security agencies depends on how much the Defence Ministry spends. The Defence Ministry is the first to make purchases followed by law enforcement and security agencies. Their choices depend on the Defence Ministry’s choices. In addition, the Defence Ministry is charged with building the national defence system which is does with the enlistment of other security agencies. Their spending depends on that, too. So, with the Defence Ministry spending 6.7 percent, and the total defence and security spending coming at slightly over 8 percent, this amount of spending is not critical. Defence spending in the Soviet Union in 1985–1986 stood at 13 percent. Taking into account the state of the economy, macroeconomic indicators, and budget revenue forecasts, combined defence and security spending at slightly 8 percent is not critical and is absolutely safe. Experts are even saying it could be larger since the budget is robust enough to handle that. But this level of spending is what we currently have. As you are aware, Mr Belousov served as the Minister of Economy. He is considered a good economist, one of the best in the country. He was my aide on economic matters. He also served as the First Deputy Prime Minister. In this sense, he is, without a doubt, able to coordinate the Defence Ministry’s work with other ministries and agencies, as well as the regions. This is important as well. I am talking not only about the border regions, but other regions as well, because they, too, to a certain extent, are economic agents. This is my first point. My second point covers his mission. He must open the Defence Ministry to constructive interaction with the research centres and economic agents in the broad sense of the word, the manufacturers of the military-technical products and components that are needed for the production of military equipment. His job is to open the Defence Ministry to innovation. Indeed, Mr Shoigu has taken the initial steps towards this end. However, I believe that given his job functions in the recent past, the former Deputy Prime Minister will find it easier to accomplish this. These were the motives behind appointing him to this position. You all saw Mr Shoigu – it was widely covered – often visit and tour enterprises. He is fully aware of what is going on. He knows what the Armed Forces need in the medium and short term, and knows our industrial capabilities. To a certain extent, he was involved in the contacts with our foreign defence cooperation partners, because the Federal Service for Military-Technical Cooperation was under the Defence Ministry, and he oversaw it. Considering this, he will have an enormous layer of work to deal with. It is all combined now. If you paid attention, I supported the idea of appointing Mr Manturov First Deputy Prime Minister precisely because we plan to focus the administrative resources on achieving the main objective facing the country today which is gaining the special military operation results that we need. Thank you very much.

Defense & Security
Angry bear against the background of the Russian flag

Boil the bear: The risky path in the face of Russian aggression

by Enrico Tomaselli

한국어로 읽기Leer en españolIn Deutsch lesen Gap اقرأ بالعربيةLire en françaisЧитать на русском According to the EU, Russia had set several red lines, but then allowed them to be crossed without reacting. Therefore, gradually increasing the temperature can be a good strategy... Whereas, throughout the first two years of NATO's war against Russia in Ukraine, the record of warmongering was almost equally shared between the US and the UK, more recently it has been attributed to Macron. The reasons are diverse, ranging from the great difficulty France is currently facing to the illusion of being able to take advantage of the German crisis to assume European leadership, including the political dwarfism of its president. But the underlying reason is that European leaders, almost unanimously, have essentially resigned themselves to carrying out the task left by the US: taking on the burden of the conflict in the East, supporting Kiev even beyond the last Ukrainian, if necessary. Also in this case, the reasons why Europeans have convinced themselves that they cannot escape this task are multiple. What matters is understanding how they believe they will do it, when they believe they will do it, and, obviously, if they really believe they can do it. Judging by how interventionist statements are intensifying, it seems that the timeline is not so distant; probably, in the European offices, they envision initiating an operational phase at least after the US elections, also to have a clearer idea of the White House's orientations and the timing of their public announcements. At the same time, the evolution on the battlefield does not seem very compatible with these optimistic forecasts: the arrival of good weather has already revitalized the Russian initiative along the entire front line, and the structural deficiencies of the Ukrainian army are evident. Events, therefore, could accelerate. Regarding the how, it seems quite clear that the idea is to boil the Russian bear like the proverbial frog. Step by step, counting on Moscow wanting to avoid an escalation, they will end up letting things happen without a strong response. In conclusion, it is believed that Russia had set several red lines, but then allowed them to be crossed without reacting. Therefore, gradually increasing the temperature can be a good strategy. Furthermore, the public discourse (the narrative used to prepare public opinion) is a mix of nonsense and half-truths, but reading them carefully, the design becomes clear. Macron puffs up his chest and makes aggressive statements, but then between Ukrainian requests and European readiness, the scheme emerges: start by training the Ukrainians in Ukraine (150,000 men...) so they are closer (and prepared) to the front [1]. After all, NATO countries have been training them for years, only the location changes... One imagines that such a debut would be more acceptable to European citizens, and that after all Moscow would not react beyond "strong protests." Then we'll see from there. Clearly, the weak point is the actual possibility of creating the design according to your own scheme. Firstly, the premise is that Russia behaves exactly as expected in Brussels, which, however, is not at all a fact. As always, caught up in their autism, European leaders do not listen, and even if they do, they do not understand. Here, in fact, we are beyond the light statements of Medvedev; when a diplomat like Lavrov clearly says that if Europeans want war they are prepared, it should not be taken lightly. Moreover, when Monti in turn says that "to build Europe" blood must be shed, he is simply more sincere and pragmatic than Macron. The problem, of course, is that a small-step scheme simply runs the risk of resulting in a series of useless steps. The critical problems of the Ukrainian army are basically three: lack of artillery ammunition, lack of personnel, lack of anti-missile and anti-aircraft systems. For the first one, Europeans are unable to remedy it. Even if the Russian industrial relative production did not grow (as it is happening) and remained at current levels, Europeans would take years and years to match it. As for the second one, the difficulties to solve it would be at least the same. Sending even 20-30,000 men would not have a decisive impact. Firstly, we would be talking about men with no real combat experience, let alone in a war of attrition like the one being fought. The logistic support would be very complicated, as the rear would have to be located in Poland and/or Romania, a thousand kilometers from the front. And anyway, even such a figure would amount to 5,000-6,000 men in combat. Irrelevant. It would be necessary to send at least 200 or 300 thousand men, practically the entire European NATO force, to have any impact. The Europeans could transfer almost all of their missile/anti-aircraft defense systems, leaving their respective countries almost defenseless, but this would also have a limited impact over time: the Russians would exploit the large quantities they have to saturate the defenses and destroy the batteries one after another (as Iran did with Israel). The only thing that could introduce an element of discontinuity would be the intervention of the air force. European fighter-bombers taking off from airfields outside of Ukraine, striking Russian rear areas. But this would inevitably bring the war to European soil, as it is clear that at that point the Russians would strike the departure air bases with their ballistic and hypersonic missiles. The same would happen if missile defense batteries from neighboring countries were used. Furthermore, if this level of intervention were to create problems for the Russian armed forces, it is virtually certain that at that point Moscow would resort to tactical nuclear weapons. Because for Russia, the risk of defeat in this war equates to an existential threat. And here Macron comes into play again, boldly promising the coverage of the French nuclear umbrella, the 'force de frappe'. Unfortunately, the comparison with the Russian Federation is ruthless, and the quantity of French nuclear weapons (as well as the aircraft carriers to deliver them to the target) is ridiculously smaller: At most, France can offer the shelter of a cocktail umbrella, and Moscow would turn Paris into a milkshake. Therefore, the European strategy of boiling the Russian bear slowly – though as stupid as a frog - cannot work. Gradualness simply runs the risk of exacting a very high price (in terms of casualties, wounded, destroyed weapon systems, etc.) without achieving any noteworthy result. On the other hand, an acceleration, by promptly engaging a significant force in combat, is practically equivalent to plunging Europe into a prolonged conflict, without equally managing to change the terms of the equation. Without direct intervention from the US, European countries alone are absolutely incapable of significantly engaging Russia [2]. But direct engagement is exactly what Washington shies away from, and they are very aware that once you put boots on the ground, there's no turning back, and the logic of war drags you deeper and deeper. Something they learned well from Vietnam, and they have never forgotten. Therefore, combat continues to present itself as a gamble. It's like having far fewer chips than your opponent and still betting everything without even holding a pair of twos in your hand. In all of this, of course, we have not taken into account at all the fact that there is no unified point of view - beyond the facade - among the different European capitals. Likely, there are countries - not only Hungary, or Slovakia, but also Germany and Italy... - that secretly hope for an immediate collapse of the Ukrainian army, to render any hypothesis of deploying their own forces useless. Although the scenario briefly described is very realistic, it is clear that there are those who believe that Europeans would have an excellent opportunity in a confrontation with Russia. That this is believed possible among political leaders, although dangerously disheartening, is also plausible; much worse is when it is supported by senior NATO military commanders, whose opinion cannot fail to influence political decisions. And quite a few generals, French, German, and from other countries, seem convinced that they can win the game (or perhaps just dream of a moment of glory, after a lifetime behind a desk or playing war games). [3] Certainly, what happens on the European chessboard also depends on what happens elsewhere, because this is a global game where everything is interconnected. The problem is that European leaders not only lack decision-making power, not even marginally, regarding this dimension, but they also completely lack global vision. The real one, of course, not the one that appears in the news. The coming months, therefore, will be full of consequences for the Europeans, but they will also be largely played as pawns, with their movements directed largely from outside, while the effects will be almost entirely at our expense. And it is clear that the interest of the US is to push the Europeans, but not NATO, to assume the risks and burdens of the conflict, which Washington would like to prolong indefinitely. [4] The inadequacy of leadership is another risk factor, in addition to the objectives. In this context, as we see, these leaders tend to curl up like a hedgehog; aware of their own weakness, both against the enemy they are confronting and their own citizens who do not wish to die for Kiev (not even for Washington), they are increasingly moving towards the militarization of public space, the restriction of democratic spaces, and an authoritarian shift. They wage war on the dissent of their citizens today so that they can wage war on Russia tomorrow. And if the European peoples lose this war, they will be dragged into another one, in which defeat could coincide with the extinction of European civilization as we have known it. Notes [1] According to The New York Times, due to the shortage of troops, the Kiev government has asked the US and NATO to "contribute to the training of 150,000 new recruits" within Ukraine so that they can be deployed to the front lines quicker. Obviously, this is a gigantic absurdity. However, these training camps should be located as far away from the front lines as possible to minimize the risk of being targeted (large troop concentrations are obviously an attractive target), and they would require adequate protection against air attacks; the risks and logistical efforts would far outweigh the minimal benefit of having recruits in training a little closer to the battle line. This is blatantly a ploy to bring NATO military personnel onto the ground. [2] A research done by the British newspaper 'The Daily Mail' established that in the event of an open conflict between NATO and Russia, NATO forces would not be sufficient. Although the strength of the Atlantic Alliance appears superior in numerical terms, this superiority is essentially due to the armed forces of the US, without which it significantly deteriorates. Additionally, the research does not consider, even marginally, factors such as industrial production, experience, combat capability, etc. [3] According to the commander of the combined armed forces of the Alliance in Europe, General Christopher Cavoli (USA), the Russian armed forces "lack the skills and capabilities to operate on the scale necessary to exploit any advances to gain a strategic advantage." [4] In this regard, a reputable American magazine like 'Foreign Affairs' has explicitly indicated this direction, and certainly not by chance. According to the FA, which is obviously closely aligned with the State Department, "European countries must do more [...] They should seriously consider deploying troops in Ukraine to provide logistical support and training, to protect Ukraine's borders and critical infrastructure, or even to defend Ukrainian cities. They must make it clear to Russia that Europe is willing to protect Ukraine's territorial sovereignty". After dismissing the idea that this could lead to World War III, the authors cunningly suggest that "a strictly non-combat mission would be easier to sell in most European capitals". However, they immediately stress that "Europe should consider a direct combat mission to help protect Ukrainian territory". In fact, "since European forces would operate outside the framework and territory of NATO, any losses would not trigger a response under Article 5 and would not involve the United States". And to reassure European leaders - to whom the message is clearly directed - they add: "At a certain point, European leaders must ignore Putin's threats, as they are nothing more than propaganda." The article was translated and licensed under CC BY-NC-SA 3.0 ES (Atribución-NoComercial-CompartirIgual 3.0 España).

Energy & Economics
SHENZHEN, CHINA - CIRCA NOVEMBER 2019: ZTE room at the High-Tech Fair China 2019 at Shenzhen Convention & Exhibition Center.

What should Europeans do about the U.S.-China Rivalry in key strategic technologies?

by Roberta Haar , Hengyi Yang

한국어로 읽기Leer en españolIn Deutsch lesen Gap اقرأ بالعربيةLire en françaisЧитать на русском In October 2023, the EU Commission identified four technology fields as critical: advanced semiconductors; artificial intelligence (AI); quantum, and; biotechnologies.[1] All four areas are greatly impacted by the U.S.-China rivalry in technology, making it essential for Europeans to understand the Sino-American competition. This article examines this rivalry from the Chinese and U.S. perspectives. It recounts their prevailing attitudes, which are shaped by recent events, and that, in turn, mold Chinese and American strategic approaches. From the Chinese policymakers’ perspective, its geo-technological competition with the U.S. is novel and passively learned. During Xi Jinping’s first term, the Chinese government still positioned technology under the economic-oriented strategy of innovation-driven development. This stance followed the idea that ‘science and technology constitute a primary productive force’ and the ‘peaceful development’ principles set during Deng Xiaoping’s era. However, around 2018, two sanctions incidents that targeted Chinese telecommunications giants shifted Chinese leaders’ understanding of tech strategy into the geopolitical context. The first sanction incident involved ZTE, China’s second-largest communications equipment manufacturer. In 2016, the Barack Obama administration accused ZTE of selling telecom equipment containing American chip technology to Iran, which violated U.S. sanctions. In 2017, ZTE pleaded guilty and paid a fine of $1.2 billion. However, in 2018, Trump’s government stated that ZTE did not comply with the settlement agreement, coupling previous sanctions with export controls on ZTE in April 2018. The second incident involved Meng Wanzhou, then Vice-Chairwoman and CFO of the Chinese telecommunications giant Huawei, who was arrested in Vancouver, Canada, during a layover in December 2018. Her detention was at the extradition request of the Trump administration, which levied charges related to alleged violations of U.S. sanctions against Iran. These included bank and wire fraud and outright violations of U.S. sanctions via a subsidiary called Skycom Tech, which allegedly concealed Huawei’s activities in Iran. The necessity of a strategic adjustment These two incidents caused an uproar in the Chinese media, followed by a surge in public patriotic sentiment. However, for the Chinese government, the impact and significance of the two cases were quite different. The essence of the ZTE case was commercial sanctions, which meant that ZTE violated business norms and deserved economic punishment. The official Chinese government stance was that ‘this is just an individual case of corporate violation.’ Despite this position, the fact that the government was actively involved nonetheless politicized the incident within China. It was Xi Jinping himself who negotiated with Trump to save ZTE from bankruptcy after which ZTE became a state-owned enterprise with absolute state control—a move that ultimately resulted in ZTE gaining a greater domestic market share than Huawei. At the international level, the top-level nature of negotiations prevented the ZTE incident from overly politicizing then-ongoing trade frictions between the U.S. and China. While the ZTE episode was resolved with little rancor, Chinese senior officials became concerned about the impact that the U.S. might have on China’s strategic technology companies.[2] In November 2018, Tan Tieniu, then Deputy Secretary-General of the Chinese Academy of Sciences, reported to China’s top leaders that they should learn from the ZTE incident. They should avoid overreliance on imports of core electronic components and chips, and they should not repeat mistakes made by ZTE. In the same month, Xi Jinping mentioned in a speech that ‘internationally, advanced technology and key technology is more and more difficult to obtain… forcing us to travel the road of self-reliance.’ Terms like technological security, technology ‘chokepoints’ (卡脖子), and core technologies in key fields (关键核心技术) began to appear frequently in Chinese official discourse. These reflected Chinese leadership’s views about the ZTE incident that were in turn shaping strategic thoughts on the geopolitical technology competition with the United States. It was the Meng Wanzhou incident at the end of 2018 that for Chinese leaders confirmed the necessity of a strategic adjustment. As in the ZTE case, Huawei was involved in a business violation that from the Chinese perspective should have resulted in corporate punishment. Instead, a personal arrest warrant was issued for Meng, thereby escalating a commercial sanction into a political and diplomatic incident. Le Yucheng, then Deputy Minister of Foreign Affairs, urgently summoned the U.S. and Canadian ambassadors to China and issued a stern protest. The Chinese government also arrested two Canadian citizens in China, sentencing one to 11 years in prison. The Chinese Ambassador to Canada wrote that the Meng Wanzhou case was a ‘premeditated political act in which the United States wields its regime power to hunt a Chinese high-tech company out of political consideration.’ Chinese Defensive Deterrence These two episodes shaped and reinforced Chinese leaders’ strategic thinking about its geopolitical technology competition with the U.S. The 14th Five-Year Plan issued by the CCP in 2020 proposed ‘making technological self-reliance’ a strategic goal. Soon all official documents established a new tone for China’s technology strategy based on self-reliance. Previously, China pursued a reassurance strategy, a strategy that showed goodwill towards the U.S. and the system it led. Thus, in theory, China had two strategic options: reassurance and/or deterrence. The former strategy involves showing friendliness towards the U.S. and its allies, thereby releasing tension, and maybe re-joining the U.S.-led system. A reassurance strategy allowed China more time for stable development—the logic of ‘keeping a low profile’ of the Deng Xiaoping era. The Xi Jinping government picked the second option, deterrence, which is to show strength or use countermeasures to reduce the likelihood of further U.S. trade or coercive action. To make a deterrence strategy work, however, Xi further believed China needed to gain strong capacity in key tech fields. Therefore, Xi first mobilized domestic R&D resources and tried to acquire advanced technologies before using diplomatic countermeasures. The core logic underlying this geopolitical technology strategy is one of ‘defensive deterrence.’ A typical example of this strategy in play concerns the semiconductor industry. Facing export controls on semiconductor equipment from the U.S., the Netherlands, and Japan, the Chinese government first increased R&D investment in the sector, trying to overcome ‘chokepoint’ technologies. As a result, China’s investment in semiconductor R&D grew from $10 billion in 2018 to $25 billion in 2022, an increase of 150%. At the same time, the Chinese government increased investment in the production of key raw materials (silicon, gallium nitride, etc.) and semiconductor production bases. It also guided industries upstream while also pushing for downstream integration through policies to improve and strengthen supply-chain security. Chinese policy also moved to increase international supply-chain dependence on China through its comparative advantages in the semiconductor industry (and even other industries) in a hedging move against the U.S. and its allies. For example, in the automotive chip sector, in the supply of vital raw materials, and in the semiconductor equipment markets, China sought to utilize its significant comparative advantages. In August 2023, the Chinese government announced export controls on gallium and germanium, two key materials for manufacturing semiconductors. China Seeking More Regulatory Power But in addition to responding to what was perceived as U.S. containment policies in the area of technology, China’s strategic use of technology followed another approach, one led by the Ministry of Foreign Affairs (MFA) and the Ministry of Industry and Information Technology (MIIT). This third approach sought more regulatory power, for example, in the areas of civilian AI where China has huge potential.[3] Starting in 2018, the Chinese government showed a strong determination to introduce and study AI ethics and technical standards.[4] Based on these domestic framework policies, various diplomatic initiatives, and standards proposals, the MFA and MIIT expanded China’s regulatory influence in the field of AI. For example, the MFA proposed the ‘Global Data Security Initiative’ in 2020 and the ‘Global Artificial Intelligence Governance Initiative’ in 2023. Minister Wang Yi explicitly stated ‘We hope to provide a blueprint for related international discussions and rule-making.’ The China Electronics Standardization Institute, affiliated with the MIIT, also actively participates in the formulation of international new technology standards. Selectively decoupling: U.S. Attitudes and Strategies When it comes to strategic technologies, the Joe Biden administration has generally maintained a stance toward China that aligns closely with the previous administration led by Donald J. Trump. This is especially the case concerning competitive technologies such as 5G/6G, the specialized processors designed to handle the computational demands of AI, quantum computing, and electric vehicles (EVs). Taking a page from U.S. President Ronald Reagan’s Cold War playbook of outspending the Soviet Union, president Biden initiated a $2.25 trillion infrastructure plan. This plan, not unlike China’s policy to increase domestic innovation and strength, allocated funds for sectors such as transportation, manufacturing, renewable energy, clean water, and high-speed broadband for both wired and wireless technologies. The justification for these investments, part of the Build Back Better Act (BBB) policy and later incorporated into the Inflation Reduction Act (IRA) and the Creating Helpful Incentives to Produce Semiconductors (CHIPS) and Science Act, was that they were a response to Xi Jinping’s ambitious goals of doubling China’s economy by 2035, intending to establish China as a global leader in biotechnology, green energy, and AI. In addition to a spending strategy to boost U.S. competitiveness in strategic technologies, the Biden administration continued with some of Trump’s punitive measures. For example, Biden maintained tariffs amounting to approximately $300 billion. He also continued action against Huawei, which has the potential to outcompete in 5G/6G mobile network technology. The Trump administration used the Bureau of Industry and Security to exclude Huawei from global semiconductor supply chains and it placed the company on the Commerce Department’s Entity List, thus requiring U.S. companies to obtain a license before exporting to Huawei. As discussed above, Trump’s executive branch also brought fraud allegations against Huawei’s Chief Financial Officer Meng. While Biden kept in place Trump-era prohibitions on sales of U.S. goods to companies like Huawei, as well as maintaining restrictions on exports of U.S. critical technology, he did quickly resolve the dispute over Meng. Within hours of the deal for her release, the two men caught up in the game of hostage diplomacy left China on a flight back to Canada. Highlighting the political nature of the incident, when Meng returned to China, senior local officials at the airport met her. Encourage Multilateralism to meet Global Challenges Along with strident measures, the Biden administration also sought a more nuanced stance. Indications that suggest a less hawkish approach to China include emphasizing a collaborative approach toward global challenges like climate change and future pandemics. Biden further pushed for engagement in high-level meetings with, for example, Secretary of State, Antony Blinken, and National Security Advisor, Jake Sullivan, who held talks with their Chinese counterparts, Yang Jiechi and Wang Yi, in Anchorage, Alaska, in March 2021. These talks were frostier than U.S. officials would have preferred but they got the two sides to engage in some dialogue. Similarly, Biden sought to engage with China in multilateral forums and organizations where both countries are members, such as the recent Asia-Pacific Economic Cooperation (APEC) forum that Biden hosted in November 2023. Even the choice of San Francisco as the venue was designed to be conciliatory as it has historic ties to Asia as well as a central role in global technology as the home of Silicon Valley. Still, one must keep in mind that in deciding on a strategy towards China, Biden must also contend with a Congress and public opinion that are growing increasingly skeptical of doing business with China, which they believe steals good jobs and sends balloons over American territory to spy on U.S. critical infrastructure. One primary shaper of U.S. attitudes towards China are the leaders of the House Select Committee on the Chinese Communist Party, Republican Representative Mike Gallagher and Democratic Representative Raja Krishnamoorthi, who lead one of the last bastions of functioning bipartisanship in Washington, D.C. With their many investigations, subpoenas, and policy recommendations, the House China Committee has become the ‘beating heart’ of U.S. Congressional policy, which, with regards to technology, argues for selectively decoupling from China for national security reasons.[5] A way forward Faced with the U.S.’ decoupling or blunting strategies and China’s defensive deterrence strategy, what steps might European nations take to navigate through the choppy, contentious waters of strategic technologies? Are there also steps that Europeans can take to mitigate the impact on their own strategic technology vulnerability? First, recognizing the pivotal role of technology in the rapidly digitizing global economy, Europeans need to stress that it is in the collective interest of everyone to establish institutions, norms, and policies for effective global governance. Rather than engaging in reactive geopolitical maneuvers resembling a chess game, these institutions could concentrate on constructing a more cooperative foundation for crucial technology sectors. Second, along with this recognition, efforts could be directed toward the development of future institutions, policies, and norms that set standards for next-generation and sensitive technologies. Such efforts should take into account initiatives already made by the Chinese and the Americans. Such efforts could also coincide with a third approach of encouraging the Biden administration to adopt a comprehensive multilateral approach. The U.S. needs to push for collaboration beyond issues such as climate change and economic inequality to encompass the intensely competitive areas in technology like those discussed in this article. For one, Europeans could point out that U.S. blunting strategies are simply not working and may even be backfiring by accelerating Chinese technological advances. In September 2023, Huawei released the Mate 60 Pro smartphone equipped with a 7nm domestic chip, revealing that China has overcome some hurdles that U.S. bans were designed to stymie.[6] Since no one knows how long China’s defensive deterrence strategy will hold (and shift to what Chinese leaders believe is a more offensive deterrence), nor whether Trump or someone as equally anti-multilateral as Trump will be (re)elected, Europeans have many incentives to encourage a softer engagement between China and the U.S. Changing the narrative is a fourth important recommendation. It is essential to recognize that the essence of the Sino-American technology competition is more about narrative construction than a description of the current situation. One indication of this is that both sides believe that the other side started what has been described as the ‘new Cold War.’[7] It does not help that both sides have engaged in behavior that supports the other side’s narrative with some hawkish actors employing similar bash-the-other tactics to gain political advantage.[8] Typically, the factual basis for technological competition is grounded in industrial competition, corporate rivalry, or intellectual property disputes. However, the high-tech relationship between China and the United States has been one of complementarity as well as rivalry. Both China and the United States, as well as European stakeholders, need to be careful of the narratives they espouse, lest they become a self-fulfilling prophecy. This work has been funded by the REMIT project, funded from the European Union’s Horizon Europe research and innovation programme under grant agreement No. 101094228 Footnotes [1] EU Commission Recommendation of 3.10.2023 on critical technology areas for the EU’s economic security for further risk assessment with Member States. [2] Gregory C. Allen. 2023. ‘China’s New Strategy for Waging the Microchip Tech War.’ csis.org, May 3. [3] Jing Cheng and Jinghan Zeng. 2023. ‘Shaping AI’s Future? China in Global AI Governance.’ Journal of Contemporary China 32(143): 794-810. [4] See White Paper on AI Standardization, a Guide to the Building of a National Standard Framework for New Generation AI, a report on Ethical Norms for New Generation AI, a White Paper on Trustworthy AI as well as other regulatory documents. [5] Robbie Gramer. 2023. ‘The Masterminds: Washington wants to get tough on China, and the leaders of the House China Committee are in the driver’s seat.’ foreignpolicy.com, November 27. [6] Weiwen Wang. (2023). ‘China Breaks Through 7nm Chip Technology, Has the China-U.S. Tech War Entered Phase 2.0?’ (中国突破7纳米芯片技术 中美科技战进入2.0阶段?). Lianhe Zaobao (联合早报), September 17. Retrieved from https://www.zaobao.com.sg/news/china/story20230917-1433739 [7] Patricia M. Kim, Matthew Turpin, Joseph S. Nye Jr., Jessica Chen Weiss, Eun A Jo, Ryan Hass, and Emilie Kimball. 2023. ‘Should the US pursue a new Cold War with China?’ Brookings.edu, September 1. [8] Roberta N. Haar. 2020. ‘Will China replace the U.S. as the world’s predominant power?’ Atlantisch Perspectief 44(3):9-13.

Defense & Security
Map of New Caledonia, world tourism, travel destination, world trade and economy

Why is New Caledonia on fire? According to local women, the deadly riots are about more than voting rights

by Nicole George

한국어로 읽기Leer en españolIn Deutsch lesen Gap اقرأ بالعربيةLire en françaisЧитать на русском New Caledonia’s capital city, Noumea, has endured widespread violent rioting over the past 48 hours. This crisis intensified rapidly, taking local authorities by surprise. Peaceful protests had been occurring across the country in the preceding weeks as the French National Assembly in Paris deliberated on a constitutional amendment that would increase the territory’s electoral roll. As the date for the vote grew closer, however, protests became more obstructive and by Monday night had spiralled into uncontrolled violence. Since then, countless public buildings, business locations and private dwellings have been subjected to arson. Blockades erected by protesters prevent movement around greater Noumea. Four people have died. Security reinforcements have been deployed, the city is under nightly curfew, and a state of emergency has been declared. Citizens in many areas of Noumea are now also establishing their own neighbourhood protection militias. To understand how this situation has spiralled so quickly, it’s important to consider the complex currents of political and socioeconomic alienation at play. The political dispute At one level, the crisis is political, reflecting contention over a constitutional vote taken in Paris that will expand citizens’ voting rights. The change adds roughly 25,000 voters to the electoral role in New Caledonia by extending voting rights to French people who’ve lived on the island for ten years. This reform makes clear the political power that France continues to exercise over the territory. The current changes have proven divisive because they undo provisions in the 1998 Noumea Accord, particularly the restriction of voting rights. The accord was designed to “rebalance” political inequalities so the interests of Indigenous Kanaks and the descendants of French settlers would be equally recognised. This helped to consolidate peace between these groups after a long period of conflict in the 1980s, known locally as “the evenements”. A loyalist group of elected representatives in New Caledonia’s parliament reject the contemporary significance of “rebalancing” (in French “rééquilibrage”) with regard to the electoral status of Kanak people. They argue after three referendums on the question of New Caledonian independence, held between 2018 and 2021, all of which produced a majority no vote, the time for electoral reform is well overdue. This position is made clear by Nicolas Metzdorf. A key loyalist, he defined the constitutional amendment, which was passed by the National Assembly in Paris on Tuesday, as a vote for democracy and “universalism”. Yet this view is roundly rejected by Kanak pro-independence leaders who say these amendments undermine the political status of Indigenous Kanak people, who constitute a minority of the voting population. These leaders also refuse to accept that the decolonisation agenda has been concluded, as loyalists assert. Instead, they dispute the outcome of the final 2021 referendum which, they argue, was forced on the territory by French authorities too soon after the outbreak of the COVID pandemic. This disregarded the fact that Kanak communities bore disproportionate impacts of the pandemic and were unable able to fully mobilise before the vote. Demands that the referendum be delayed were rejected, and many Kanak people abstained as a result. In this context, the disputed electoral reforms decided in Paris this week are seen by pro-independence camps as yet another political prescription imposed on Kanak people. A leading figure of one Indigenous Kanak women’s organisation described the vote to me as a solution that pushes “Kanak people into the gutter”, one that would have “us living on our knees”. Beyond the politics Many political commentators are likening the violence observed in recent days to the political violence of les événements of the 1980s, which exacted a heavy toll on the country. Yet this is disputed by local women leaders with whom I am in conversation, who have encouraged me to look beyond the central political factors in analysing this crisis. Some female leaders reject the view this violence is simply an echo of past political grievances. They point to the highly visible wealth disparities in the country. These fuel resentment and the profound racial inequalities that deprive Kanak youths of opportunity and contribute to their alienation. Women have also told me they’re concerned about the unpredictability of the current situation. In the 1980s, violent campaigns were coordinated by Kanak leaders, they tell me. They were organised. They were controlled. In contrast, today it is the youth taking the lead and using violence because they feel they have no other choice. There is no coordination. They are acting through frustration and because they feel they have “no other means” to be recognised. There’s also frustration with political leaders on all sides. Late on Wednesday, Kanak pro-independence political leaders held a press conference. They echoed their loyalist political opponents in condemning the violence and issuing calls for dialogue. The leaders made specific calls to the “youths” engaged in the violence to respect the importance of a political process and warned against a logic of vengeance. The women civil society leaders I have been speaking to were frustrated by the weakness of this messaging. The women say political leaders on all sides have failed to address the realities faced by Kanak youths. They argue if dialogue remains simply focused on the political roots of the dispute, and only involves the same elites that have dominated the debate so far, little will be understood and little will be resolved. Likewise, they lament the heaviness of the current “command and control” state security response. It contradicts the calls for dialogue and makes little room for civil society participation of any sort. These approaches put a lid on grievances, but they do not resolve them. Women leaders observing the current situation are anguished and heartbroken for their country and its people. They say if the crisis is to be resolved sustainably, the solutions cannot be imposed and the words cannot be empty. Instead, they call for the space to be heard and to contribute to a resolution. Until that time they live with anxiety and uncertainty, waiting for the fires to subside, and the smoke currently hanging over a wounded Noumea to clear.

Diplomacy
Russian President Vladimir Putin (L) and Chinese President Xi Jinping (R) attend the welcoming ceremony in Beijing, China, June 25, 2016.

Six Reasons for Vladimir Putin to Go to China

by Andrey Kortunov

한국어로 읽기Leer en españolIn Deutsch lesen Gap اقرأ بالعربيةLire en françaisЧитать на русском In mid-May Russia’s President Vladimir Putin will fly to China on an official state visit. A sceptic would say that this visit is not really a big deal: the Russian leader and his Chinese counterpart, Chairman Xi Jinping had bilateral meetings at least forty times since 2013, when Xi was first elected as Chairman of PRC. The Russian President was in Beijing last time no longer ago than in October of 2023, when he participated to the high level “One belt, one road” Forum. Still, there are a couple of reasons for him to come to China again at this particular moment; the trip is likely to be quite special and important. Let us outline some of the most important motivations behind the planned trip. First, courtesy. In March of 2023, after he had been reelected as 7th Chairman of the People's Republic of China, XI Jinping chose Moscow as his first foreign destination. This decision was duly appreciated by everyone in Russia, including even those who do not follow international affairs. Vladimir Putin was reelected as 3rd President of the Russian Federation in March of this year and it is only natural that he wants to pay back courtesy to his longtime partner and friend by going to China prior to exploring other travel itineraries. Symbolically, this decision underscores the importance of Beijing to the Kremlin. After having met Xi Jinping, the Russian leader may consider visiting a number of other non-Western capitals, including Ankara, Tehran and Pyongyang. Second, bilateral relations. It is essential for the two leaders to compare notes on the current state of the bilateral relations that evolved significantly since their last meeting in October. 2023 turned out to be a very successful year for the Russia-China economic cooperation with the bilateral trade reaching the all-time record of 240 billion US dollars. However, the West remains firmly committed to disrupt this trend and the Western pressure on Beijing is constantly growing. Not surprisingly, the Chinese private sector is getting increasingly concerned about the scope of the likely negative impact that secondary sanctions might have on their business prospects. After the European Union had introduced its 12th package of restrictive measures against Moscow, a number of the leading China’s banks became reluctant to accept dollar payments from Russia; as a result, in March the bilateral trade suffered a mild setback of 2%. With the Chinese export to Russia going down by 14% on the yearly basis (from USD 8,9 billion to USD 7,6 billion), while the Russian export to China continued to grow and reached USD 12 billion. The most recent trip of US Secretary of State Antony Blinken to China in April confirmed once again that the Biden Administration will continue to complicate the Russia-China economic interaction to the extent possible. Apparently, Putin and Xi should focus on how to make sure that the United States will not succeed in its efforts and that the bilateral trade by the end of 2024 will indeed amount to USD 280–290 billion as planned. Summit meetings usually serve as powerful catalysts for bilateral trade and investments; let’s hope that this pattern will be confirmed once again by the forthcoming Putin-Xi summit. Third, global developments. Those who hoped that 2024 would become a turning point in global politics shifting it from conflicts and confrontation to peace and reconciliation were bitterly disappointed: we have entered yet another dramatic year with many tragic events taking place in various corners of the world. The Russian-Ukrainian and the Israeli-Palestinian conflicts are not stopped, the Houthis continue to target military and commercial vessels in the Red Sea, Sahel countries and Sudan are simmering and can explode at any moment, global defense spending and global arms trade in 2024 reached their historic highs. On the other hand, 2024 also offers a number of opportunities that should not be overlooked. It is the year for BRICS to properly digest and absorb its recent enlargement, and Russia will have to manage the process chairing the club and hosting the next BRICS summit in fall. The Shanghai Cooperation Organization might also start changing by accepting Belarus as a member and exploring new opportunities for multilateral cooperation. Clear enough, the Russian and Chinese leaders have a lot of issues to discuss on the volatile global situation and to coordinate their reactions to swift changes. Fourth, frictions with the West. The two leaders will definitely not omit an opportunity to talk about their nations’ respective uneasy relations with the West. By the time he meets President Putin, Chairman Xi will still be quite fresh from his trip to Paris, Belgrade and Budapest, which is scheduled for May 5–10 and is the first such tour in five years. He is likely to share his impressions with the colleague from Moscow. My feeling is that the two leaders have not quite opposite, but somewhat different views on Europe: while Putin remains highly skeptical of any ‘strategic autonomy’ of European nations from the United States, Xi apparently still hopes that Beijing’s cooperation with major European powers as well as with the European Union in general, can be preserved even if the China-US relations continue going sour. The jury is still in session on this critical question, but a candid exchange of views on Europe and on the political trends within the United States, the likely outcome of the November elections including, should constitute a significant item of the Putin-Xi agenda. Fifth, emerging world order. The two leaders are also likely to discuss more general matters of the emerging new world order, such as the preferred role of the UN system, the future of strategic stability along with various dimensions of global and regional governance. Many specific dimensions of the new world order remain very vague and ambiguous; for instance, it is not clear what might happen to the existing nonproliferation regime, how to coordinate efforts to defeat international terrorism and to contain the reckless arms race, what can be done to enhance the efficiency of international law and so on. However, it is crystal-clear that one of the key challenges for both Moscow and Beijing is about how to provide tangible global commons in a highly volatile and unpredictable world with no universally accepted hegemonic power in charge. The Russian and the Chinese visions on the desirable international transition are not identical, but they are very close to each other; it is therefore essential to discuss both converging and diverging views on major components of the emerging world order. Sixth, human dimensions. The trip might well produce some other positive results, which do not look really breathtaking, but nonetheless are very important not only for ordinary Russian and Chinese citizens, but for the two nations at large, because they are weaving the social fabric of the relationship. The approaching 75-years anniversary since the establishment of diplomatic relations between Moscow and Beijing is a nice opportunity not only to stage a standard chain of public fora, cultural events, business-to-business meetings and academic conferences, but also to promote grass-roots people-to-people contacts. In particular, the two leaders are likely to pay special attention to expanding bilateral links in higher education, in R&D projects and in transborder interactions. Personally, I would like Putin and Xi to make a breakthrough on moving to the non-visa regime between the two neighboring countries. It is hard to understand why, given the excellent state of the Russia-China relations, many of us on both sides of the border still have to stand in long lines waiting for single-entry visas to be stamped in our passports. A lot of Putin-Xi conversations will take place behind closed doors, which is only natural under the current challenging geopolitical circumstances. However, the two leaders can release a political statement or a joint declaration that would reflect the areas of consensus and the list of priorities that their nations share. When and if such a document becomes publicly available, it will definitely deserve a very careful and attentive reading by everyone interested in monitoring the Russia-China relations. These days, even foreigners know that in China the number 'six' is associated with the meaning of "smooth" as it shares the same pronunciation as the character 溜. This number promises a successful and productive conclusion of business. Let’s hope that all the above mentioned six items of the anticipated Putin’s agenda in China will be properly covered and considered. Yet, we should stay realistic and manage our expectations. A single meeting between two political leaders, even if the two leaders happen to be Vladimir Putin and Xi Jinping, cannot possibly reverse all the ongoing negative trends in the global developments. The meeting will not produce miracles or replace the need for a continuous and meticulous work of bureaucrats, diplomats, military, media, baseness and civil society leaders. Neither stable and productive Russian-Chinese relations can be considered a substitute to inclusive and efficient multilateral arrangements. Still, it cannot be denied that a strong personal bond between Putin and Xi serves as a significant factor contributing to the overall stability in our less than stable world.

Diplomacy
PARIS, FRANCE - February 8, 2023: French President Emmanuel Macron welcomes Ukrainian President Volodymyr Zelensky with Chancellor Olaf Scholz at the Elysée Palace

The Impact of the War in Ukraine on the European Union

by Tomasz G. Grosse

한국어로 읽기Leer en españolIn Deutsch lesen Gap اقرأ بالعربيةLire en françaisЧитать на русском French and German credibility has reached new lows on the Ukraine issue, risking European security as each seeks to sure up political and geopolitical influence. Solidarity is weak, and arms corporations have proven influential in national decisions for EU integration on security matters. In the numerous crises that hit the European Union (EU) in the 21st century – the role of the so-called “integration engine,” as the French-German duopoly is called – was crucial. However, after Moscow’s aggression against Ukraine in 2022, both integration leaders from Western Europe receded into the background. The leaders of aid for fighting Ukraine were mainly the countries of NATO’s eastern flank, led by Poland and the Baltic states. Germany and France defended themselves against too radical sanctions imposed on Moscow, did not support Kiev, and did not want, among other things, either Ukraine’s accession to the EU nor to NATO. Why did Paris and Berlin distance themselves from Russian aggression in 2022, which violated European values and human rights and also threatened the EU itself? In short, the war hit various economic interests that France and Germany conducted with Vladimir Putin’s regime. An example of this was the expansion of Nord Stream, a gas pipeline through the Baltic Sea, after Putin’s first military aggression against eastern Ukraine in 2014. It is worth recalling that the entire climate transformation in the EU in its initial phase was based on cheap Russian gas. Economic ties were not the only reason for the strange behavior of Berlin and Paris in the face of Moscow’s aggression. Geopolitical considerations were even more important. The elites of Western Europe have traditionally, with minor interruptions, cooperated with Russia and considered it an important economic and political partner. The geopolitical goal of both Western European countries was to seek strategic autonomy from Washington and rapprochement with Moscow and Beijing. Historically, Central Eastern Europe has been treated as an area of influence of Berlin and Moscow, which they share or (less frequently) compete for. Before 2022, for Berlin, this sphere of influence included the Central European countries and the Baltic states; for Moscow, this included Belarus and Ukraine. This is why, among other things, Western Europe distanced itself from Moscow’s aggression in 2022. It did not want to spoil relations with Moscow. It also did not want to provoke even greater Russian aggression, fearing a full-scale war with NATO. Western Europe wanted to reach an agreement with Putin as quickly as possible and return to the previous economic and geopolitical arrangement. However, in 2024, there was a clear change in Western Europe’s position towards the war in Ukraine. First, Germany increased its financial and military assistance, although it continued to block the delivery to Kiev of the most modern weapons requested by President Volodymyr Zelensky. France and Germany increased the scope of sanctions imposed on Moscow, although they were still full of loopholes that allowed the Kremlin to avoid them. Meanwhile, Berlin and Paris unblocked their veto on Ukraine’s accession to the EU, nevertheless they continued to maintain their opposition to Kiev’s membership in NATO. Under the influence of both Western European countries, the EU’s financial and military assistance to Kiev increased. It was still too small in relation to Ukraine’s needs, and Brussels faced great problems and delays in fulfilling aid declarations. The most radicalized person was President Emmanuel Macron who announced in 2024 that he would send troops to Ukraine. In the same year, German politicians proposed that NATO troops should protect the sky over western Ukraine from the territory of Romania and Poland. What caused this radical turn in Berlin and Paris? First of all, it turned out that both countries were losing credibility in NATO and the EU, and thus political influence in Central Europe and Ukraine. What was no less dangerous – especially for German politicians – was the growing dissatisfaction with their attitude in the US. The Germans feared that Washington would lose trust in Berlin and focus on NATO’s eastern flank, mainly Warsaw. Furthermore, Germany and France believed less and less in renewing good relations with Moscow. They also had little hope that their “neutral attitude” could protect Europe from further aggression by Putin, including his attack on NATO and EU countries. At this point, both Western European countries launched a diplomatic offensive to introduce changes in the European Union. It was primarily about revising EU treaties to strengthen the political influence of the two largest countries in Western Europe. Therefore, it was proposed, among others, the abolition of voting based on unanimity in foreign and defense policy, which gave a decision-making advantage to the countries with the greatest voting power (Germany and France). In addition, efforts were made to strengthen the Common Security and Defense Policy (CSDP). The main goal was to increase the production of ammunition and weapons from EU funds. Typically, such actions were aimed at strengthening the potential of arms corporations in Western Europe, as well as limiting arms exports from outside the EU, including from the US and South Korea. It goes without saying that in the event of a real threat from the East, the EU should not limit the transportation of weapons from non-European allies, because Europe itself produces too little ammunition and weapons. Nevertheless, subsequent actions of the European Commission after 2022 clearly rewarded aid for German and French corporations, as well as restricting access to arms imports from outside the EU. These attempts to strengthen the strategic autonomy of the EU against Washington are short-sighted in the face of a real threat on the EU and NATO. Moreover, instead of primarily supporting coordination within NATO, France and Germany have sought to duplicate the structures of the North Atlantic Alliance, focusing on the expansion of EU’s rapid reaction forces (rather than NATO’s rapid reaction forces), which were much more modest in terms of numbers and equipment. In other words, their goals were political, not real defense. The idea was to strengthen Franco-German leadership in Europe, and this was to be achieved by supporting the development of EU structures in the area of security. All these aspirations to expand the CSDP could encounter serious obstacles in implementation. First, Germany and France often disagree on EU security considerations, particularly when it comes to their own national interests. For example, the French were disappointed with Germany’s decision to purchase the American F-35 multi-role fighter capable of carrying nuclear warheads. This affected plans to build a sixth-generation aircraft in cooperation between German, French, and Spanish corporations. Moreover, Berlin was developing its own anti-aircraft and anti-missile defense project in the EU (European Sky Shield Initiative), to which it did not invite the French, and even competed with their own European defense program (La défense aérienne du continent). Therefore, Macron criticized the German shield initiative, which he considered hasty and incomplete. Instead, he promoted a truly “European initiative,” where the French arms industry is the dominant force. Secondly, the actions of France and Germany in the field of defense have been delayed and ineffective. More than two years after the announcement of the famous Zeitenwende, the modernisation of the Bundeswehr, the federal government in Berlin managed to order only eighteen Leopard 2 tanks and twelve Panzerhaubitz 2000. Thirdly, it became increasingly clear early on that Germany and France were not ready to defend NATO’s eastern flank in solidarity, wanting rather to show initiative and leadership in order to maintain geopolitical influence in Europe. In terms of real security, their subsequent ideas were controversial. They were certainly beneficial to their arms corporations. For all these reasons, the credibility of Germany and France has been trending downwards on eastern EU security considerations. For the time being, it is difficult to predict whether the plans of Paris and Berlin will ultimately be implemented and whether cooperation within the CSDP will be strengthened. However, if this does not happen, it will paradoxically be a good solution for the security of the eastern flank. Efforts to defend it will be focused within NATO and, above all, located in the countries most at risk from Moscow’s aggression. This analysis is based on a recent article published by the Journal of International Affairs.

Defense & Security
Troop carrier and tank with Ukrainian flag, Ukraine

The War in Ukraine among contemporary Armed Conflicts

by Anton Bebler

한국어로 읽기Leer en españolIn Deutsch lesen Gap اقرأ بالعربيةLire en françaisЧитать на русском Abstract The war in Ukraine is the biggest, bloodiest and longest war in Europe since 1945. Its initial stage holds similarities with several other armed conflicts and wars in the last 50 years on Cyprus and in the territories of the former Soviet Union and the Socialist Federal Republic of Yugoslavia (SFRY). Among the cases in ex-Yugoslavia the greatest similarity is seen with the war in Croatia (1991–1995). These conflicts stemmed from almost simultaneous breakdowns of two multinational ‘socialist federations’ and their communist regimes. The dissimilarity of the second stage of the war in Ukraine and the war in Croatia is primarily due to the processes of NATO and EU enlargement coupled with the USA’s policy of using NATO enlargement and Ukraine as tools to harm and weaken Russia. The conflict about Ukraine developed into an indirect war between Russia and the US-led West, where Ukraine is the West’s proxy and the main victim. The final outcome of the war in Ukraine will be decided on the battlefield and not around a diplomatic table. Still, it will be very different from that in Croatia. Responsibility for the war in Ukraine and its consequences must be shared between the two direct belligerents, the co-responsible USA and other NATO members. Introduction Among about four dozen contemporary wars, the armed conflict in Ukraine since 2014 stands out as an exceptional event. It involves in its second stage four nuclear powers –one as a direct belligerent and three as providers of many-sided assistance to the second belligerent, with the presence of military personnel of all four nuclear powers on the territory of Ukraine. The war has been the biggest, bloodiest and longest war in Europe since 1945. It has also produced a strong impact on Europe and the broader international community. According to two measures (at least), the war in Ukraine has been exceeded by a number of other wars since 1945, namely those occurring in Asia and Africa. In terms of mortality, it has been exceeded by the wars in Korea, Vietnam, Algeria, Sudan, Rwanda, Burundi and Iraq. In terms of duration, it is unlikely to be longer than the wars in Vietnam, Algeria, Sudan and Afghanistan. Among all these armed conflicts, the war in Ukraine may be sharply distinguished by the reverse ratio between military and civilian mortality. In the European framework, the central trigger of the first stage of the war in Ukraine was similar to what caused the armed conflicts and outright wars occurring between 1974 and 1999 on Cyprus, in Moldova, Georgia, the Russian Federation, Azerbaijan as well as on the territory of the SFRY. Among the former, the first stage of the war in Ukraine most resembled the war in Croatia (1991–1995). The war in Croatia, which started prior to its international recognition, and the war in Ukraine 22 years after its recognition as an independent state, display a number of similarities that not accidental. The second stage of the war in Ukraine has had several similarities with the war in the Federal Republic of Yugoslavia (1999) which ended up with forceful separation of Kosovo from Serbia. The similarities The wars in Croatia and Ukraine involved two adversary pairs of neighboring and partly overlapping Slavic nations. These wars unfolded in the territories of two defunct ‘socialist federations’ – the SFRY and the USSR. The causes of both wars were closely related to the almost simultaneous breakdowns of these two federations in 1991 and the demise of their communist regimes that had preceded and caused the breakdowns. The institutional structure of the SFRY was modelled after and closely resembled the structure of the older ‘socialist federation’, the USSR. Shared features of the two included the division of each federation into full-fledged republics and autonomies. Most or all of these federal units were ethnically designated. The minorities of the biggest ethnic groups (Serbs and Russians) were not accorded autonomy within other republics. In both cases, war followed the declarations of ‘sovereignty’ and ‘autonomy’ and referenda organized by some members of the Serbian community in southwest Croatia and some members of the Russian and Russian-speaking community living in Eastern Ukraine. In each case, the central governments refused to negotiate with the insurgents and decided to suppress them militarily. The armed conflicts in Croatia and Ukraine developed into partly different combinations of civil and interstate wars. The civil war component referred to an armed conflict between the ultranationalist regime in the former second-most populous republic on one hand, and part of the biggest national minority related to the largest ethnic group in the former federation, on the other. The civil war deepened the divisions based on loyalty within both the Serbian community in Croatia and the Russian community in Ukraine. Each war was fought almost exclusively on the territory of the former second-most populous republic, which suffered the most. In both wars, the two sides were responsible for gross violations of international humanitarian law. International sanctions were applied in these two wars. The causes of each war were tangibly related to profound geopolitical changes underway in Europe about 35 years ago. These changes entailed the slackening and termination of the Cold War between two military-political blocs and the wave of liberal-democratic transformation of political systems in Eastern Europe. Over the span of 3 years, about 30 different state entities declared their sovereignty in the area of 3 ‘socialist federations’ (Yugoslavia, Soviet Union, Czechoslovakia). Of these, 23 entities survived and soon gained universal recognition as sovereign states, including Croatia and Ukraine. The specificity of the war in Ukraine Ancestors of today’s Russians and Ukrainians shared in the distant past close to 400 years of common history in Kievan Rus. In the XIII century this large state formation was destroyed by the invasion of Tatars-Mongols. The subsequent centuries-long domination of Lithuanian and Polish feudal rulers over the ancestors of today’s Ukrainians contributed greatly to their cultural and language distancing from the Russians. In 1648, the Cossack ancestors of some of today’s Ukrainians rebelled against Polish feudal rule, in 1654 begged for protection and voluntarily submitted themselves to Moscow Tsardom. For two and a half centuries, until 1917 they remained as part of the Russian empire, named Ruthenia and later Malorossiya. In 1918, an independent state was proclaimed under the new name Ukrainian People’s Republic. The name Ukraine remained under the Bolsheviks and in 1922 Soviet Ukraine became a constituent republic of the Soviet Union. Over several decades, the territory of Soviet Ukraine was more than doubled by Moscow in several successive stages in 1920–1922, 1939–1940, 1945–1947 and 1954. This was accomplished by including into it the lands of Novorossiya, with millions of Russian and Russian-speaking people in the East and South, as well as annexed parts of Poland, Czechoslovakia, Romania and part of Moldova in the West. In all of these cases, this was done without their population’s consent. In 1992, all these territorial gains became parts of independent Ukraine within its internationally recognized borders, whereas the collective rights of the Russian and Russian-speaking population were left unprotected. From 1945 for more than four and a half decades Ukraine enjoyed Moscow’s symbolic gift – the status of a UN founding member although it had been a constituing part of another UN founding member (USSR). When Ukraine, at Moscow’s initiative attained independence it did not have to apply for UN membership which from then on it deserved. Divergent political and economic developments in the two independent states exposed a number of different interests and of problems unresolved at the time of separation. These issues, in somewhat different combinations during the two stages of the war contributed to three groups of conflictual relations: (1) between the Russian Federation and Ukraine, (2) inside Ukraine and (3) between the Russian Federation and the West, primarily USA. The non-recognition of collective minority rights by the Ukrainian authorities became a growing political problem with the rise of Ukrainian ultranationalism. Combined with divergent attitudes in Western and Eastern parts of the country concerning Ukraine’s relations with Russia, EU and NATO, language-related problems contributed tangibly to political explosions in Ukraine in February/March 2014. Since 1991, two processes have altered the geopolitical map of Europe. These are the Eastward expansion of the US-dominated NATO along with the closely intertwined enlargement of the European Union. The first stage of these two processes in 1990–1991 – the absorption of Eastern Germany into both organizations – had no impact on the internal crisis in Yugoslavia, including the conflict in Croatia. Two decades later, however, the process of NATO expansion had already reached the borders of both Ukraine and Russia, thereby adding a very real extra-regional component to the conflict in and about Ukraine. For over two decades, one of the USA’s geostrategic goals has been by fostering ‘color revolutions’ to bring about regime change in the post-Soviet space, including Ukraine and also Russia. By using Ukraine as a tool, the USA has endeavored to harm and weaken Russia. Under US pressure and notwithstanding German and French objections, at the NATO summit held in Bucharest in April 2008 Ukraine was promised membership in the alliance, yet without stating a date. Openly and strongly opposed by Russia, this decision unleashed a chain of events, 6 years later leading to a war in Ukraine. The European Union and its policy of Eastern neighborhood negatively contributed to these developments. The prospect of an association agreement with the EU deepened the internal political conflict in Ukraine and motivated a mass protest movement that was exploited in February 2014 to stage a US-guided coup d’état in Kyiv. The combination of Ukraine’s promised membership in NATO and the new regime in Kyiv fully dependent on the USA foretold that Russia would certainly lose its old naval base in Sevastopol, for which it had paid high rent since 1992. Moreover, as a NATO naval and air base, Sevastopol would pose a direct threat to Russia and its geopolitical position in the Black Sea and Mediterranean area. To thwart this threat, lightly armed detachments of Russian marines, already legally stationed on Crimea, were ordered to move in unmarked uniforms to take control of the entire peninsula. They did so without facing any resistance, on Kyiv’s strict orders, from the about 22,000 Ukrainian troops or inflicting any casualties. The Ukrainian officialdom then simply vacated Crimea. This takeover was soon followed by a successful referendum accompanied by international observers on approving Crimea’s legal separation from Ukraine and it rejoining Russia. Moscow thus took back Nikita Khrushchev’s present to Ukraine on the occasion of the 300th anniversary of its unification with Russia. First stage of the war in Ukraine Closely related to the dramatic developments in Kyiv, there were uprisings in several Ukrainian cities and proclamations of ‘‘sovereignty’’ and ‘‘autonomy’’ in Lugansk and Donetsk. These uprisings largely featured protests against the discriminatory measures adopted by the new authorities against the Russian and Russian-speaking population. The ultranationalist regime in Kyiv responded on 13 April 2014 by branding the protesters ‘‘terrorists’’, declaring a “wide anti-terrorist operation” and entrusting the Ukrainian Army to carry it out. This military operation launched the first stage of the war in Ukraine. In its attacks on the Donbas autonomists, the Ukrainian Army employed bombers, tanks, armoured vehicles and artillery while battalions of Ukrainian ultranationalist volunteers with neo-Nazi leanings and financed by Ukrainian oligarchs used artillery and light weapons. On the defending side, there were about 35,000 members of the territorial people’s militias of the Donetsk and Lugansk People’s Republics as well as Russian and other (including Serbian) volunteers. The Russian Federation offered multi-sided support to the two besieged republics, encompassing financial, material, humanitarian and military assistance. Russian professional military personnel were integrated into the local militias and did not operate as separate and regular units of the Russian Army. At the same time, the US and British armed forces offered very sizeable material and other military assistance to the Ukrainian Army, also involving thousands of advisors and instructors. In numbers, they were comparable to the Russian military personnel on the other side of the frontline. By February 2022, this armed conflict had led to 14,000 to 20,000 dead. Two armistice agreements, Minsk 1 and Minsk 2, did not halt the Ukrainian shelling of Ukrainian territory, which was responsible for thousands of casualties among the civilian population of the two self-proclaimed republics. These attacks continued for more than 9 years, accompanied by gross violations of international humanitarian law. In February 2015, Petro Poroshenko, the President of Ukraine signed the Minsk 2 agreement. It was co-signed by the leaders of Germany, France and Russia and unanimously adopted as a resolution by the UN Security Council, thereby becoming part of international law. The Minsk 2 agreement provided for peaceful resolution of the conflict in Donbas. Nonetheless, Petro Poroshenko and his successor Volodimir Zelenski refused to implement most of Ukraine’s 12 obligations, including the key provisions under which Ukraine was to grant constitutionally guaranteed autonomy to the Russian and Russian-speaking population in Donbas. In addition, Zelenski reneged on his pre-election promise that saw him win the election in 2019 and did not stop the war. Second stage of the war in Ukraine On 21 March 2021, Zelenski blatantly violated the Minsk 2 agreement and international law by ordering the Ukrainian Army to liberate the territories of the two republics and Crimea. The bulk of the Ukrainian Army was then relocated to their vicinity, clearly visible by Russian satellites. Instead of peaceful resolution of the conflict, Zelenski, no doubt with the USA’s full approval, thus decided on full-scale military suppression of the Donbas autonomists and on reconquering Crimea, well aware that it would provoke a strong reaction from Russia. On 16 February 2022, upon his order the Ukrainian Army initiated the second and much more violent stage of the war. From that date on, the intensity of Ukrainian shelling started to grow from several tens to 1,500 explosions daily. Combined with movements of Ukrainian troops, this strongly indicated that a massive attack was coming as part of implementation of the March 2021 order. It was very similar to the Georgian offensive against the self-proclaimed Republic of Southern Ossetia on 7 August 2008. This escalation was no doubt coordinated with US President Joe Biden, who publicly predicted that Russia would invade on 16 February 2022. Ukraine’s stepping up the level of violence successfully provoked a predictable Russian response. On the political and legal levels, this entailed the Russian Federation’s recognition of the two republics as independent states, signing two agreements on friendship, cooperation and mutual assistance, accepting their pleas for assistance and protection in line with Art. 51 of the UN Charter and invoking the Responsibility for Protect. In the latter the Russian Federation used a very similar justification as did NATO in 1999 for its aggression against the Federal Republic of Yugoslavia. On the military level, Putin was faced with the real prospect of Ukraine quashing the two client Russian-speaking parastates. This would have submitted their discriminated Russian and Russian-speaking majority population to retribution by the Ukrainian ultranationalist and assimilationist regime, causing it to flee en masse across the border. He later explained that moral duty is higher than legality. Putin could not, also for domestic reasons, afford a humiliating political defeat similar to that suffered by Slobodan Milosevic in Croatia in August 1995. Unlike in August 2008 in Georgia, he did not wait for an all-out Ukrainian attack. Putin knew full well that stronger Western sanctions than those currently in place would follow, even if Russia’s response to the Ukrainian offensive were only moderate. Probably on the basis of a faulty assessment of both Ukraine’s capacity and determination to resist and the West’s response, he precipitously and knowingly in violation of international law ordered a ‘special military operation’ with an invasion of Ukraine on February 24, 2022, by a limited contingent of Russian land forces. This move was combined with extensive destruction of the Ukrainian air force, the air defense system, and other military infrastructure. Ignoring an axiom of military science, an invading force of some 90,000 Russian land troops was sent against the Ukrainian Army thrice superior in numbers. It was also grossly insufficient and unprepared to accomplish the officially declared task of “demilitarizing” and “denazifying” entire Ukraine. In spite of its shortcomings, this force managed to swiftly occupy additional 15% or so of Ukrainian territory (some as a diversion and only temporarily) and effectively protected the two republics. It additionally established and secured a land bridge between Crimea and Donbas, made the Azov Sea part of Russia’s internal waters, took control of the largest European nuclear power station at Zaporizhie, and deprived Ukraine of its stocks of plutonium and uranium. These stocks would have been sufficient to make Ukraine the world’s fourth-strongest nuclear power. The latter was an effective response to Zelenski’s earlier declaration that Ukraine was intending to again acquire nuclear weapons. Preventing this dangerous prospect certainly served as an additional and important incentive for Putin’s decision. For USA, the by far most frequent transgressor of international law, provoking Russia into an act of aggression fitted nicely with the their strategic goal. Russia’s invasion of Ukraine provided a perfect occasion for demonizing and isolating it internationally and for uniting the West under USA’s guidance on imposing on Russia an unprecedented array of drastic economic and other sanctions. These punitive measures were expected to quickly ruin the Russian economy, hopefully bring down Vladimir Putin’s regime, defeat Russia militarily without losing American lives, and cause the fragmentation of Russia into several states (as elaborated earlier publicly by Zbigniew Brzezinski and the RAND Corporation). However, these hopes have not materialized. Moreover, the effects of the Western sanctions proved to be more harmful to the EU economies than to Russia while in no way helping Ukraine. The two wars compared Still officially undeclared by both direct belligerents, the war in Ukraine is already twice as long as the war in Croatia, and is still ongoing. There are also other important differences caused by the mismatch between Croatia and Ukraine in the size of their population and territory (approximately 1:10), and by the different configuration and extent of the theatres of war. Further, there are differences in the size and structure of the armed forces involved, in the disparities between Serbia’s and Russia’s military capabilities compared to the respective capabilities of Croatia and Ukraine. The war in Ukraine in its second stage is also unlike the war in Croatia due to the massive use of particular weapons systems (notably drones and missiles). Vast differences also exist in the direct involvement of international organizations and other external actors in the two wars. In the autumn of 1991, the European Economic Community (EEC) sent Croatia its first mission of white-clad and unarmed observers who as impartial intermediaries tried unsuccessfully to stop the armed clashes between the Croatian police and Serbian insurgents. The United Nations established UNPROFOR (UN Protection Force) in February 1992, operating from Zagreb. It was followed by UNCRO (UN Confidence Restoration Operation in Croatia) in 1995–1998, UNTAES (UN Transitional Administration in Eastern Croatia) in 1996–1998, and UNMOP (UN Mission of Observers in Prevlaka) in 1996–1997. For several years, the UN-supported International Conference on Former Yugoslavia was active operating from Geneva. In comparison, there have been no UN or EU peacekeeping or observer missions in Ukraine. The UN General assembly has adopted a number of resolutions related to the war in Ukraine. In several resolutions it deplored and condemned Russia’s invasion with huge majorities for and only five votes against. The OSCE had no observer missions in Croatia, but deployed two such missions in Ukraine, notably the sizeable OSCE Special Monitoring Mission from 2015 until March 2022. In addition, the OSCE played an active role in facilitating the Minsk 1 and Minsk 2 ceasefire agreements. Extra-regional states were not openly involved in the war in Croatia. In 1991–1992, the Croatian forces included 456 foreign fighters (British, French, German et.al.), accompanied by about 2,000 private American military instructors. On the other hand, Ukraine has received huge support from several dozen foreign states, in particular the USA, as well as other NATO and EU members in the form of heavy arms, ammunition, training, intelligence, economic and humanitarian assistance. According to the Russian Ministry of Defense, since 2022, 13.387 foreign fighters, mercenaries and volunteers joined the Ukrainian Army of whom 5.962 lost their lives. Polish citizens have been most numerous in both categories – 2.960 enlisted and 1.497 dead. They are followed by Americans and others. This strong external involvement transformed the local war into an extra-regional armed conflict between Russia and the US-led collective West, with Ukraine acting and sacrificing its soldiers and itself as the West’s proxy. The war in Croatia and its outcome were closely linked with the war in neighboring Bosnia and Herzegovina, while there has been no similar regional linkage of the war in Ukraine. The war in Ukraine has also had by far a bigger international political and economic impact on other countries, not only in Europe, than the war in Croatia. Most importantly, there are enormous differences between the two wars in the number of dead (at least 1:25), number of refugees and displaced persons (approximately 1:25), and extent of destruction and amount of economic damage (at least 1:20). The war has inflicted considerably greater damage on Ukraine as a state and on Ukrainian society than the war did on Croatia. Since 2014, the population under Kyiv’s control has so far been reduced by at least one-third and the territory by close to one-fifth. It is estimated that the Ukrainian Army, National Guard and volunteers have suffered well over 400,000 deaths. Ukraine has also lost a good deal of its industrial capacity, agriculture, energy generation and critical infrastructure. The war’s continuation suits the USA’s geostrategic, chiefly anti-Russian objectives, whereas Ukraine is paying a horrible price for them. The dragging on war of attrition is sapping Ukraine’s ability to sustain itself, at least in its already rump shape. It increases the probability of Ukraine becoming (again) a landlocked country on less than a half of its territory internationally recognized since 1992. The first stage of the war in Ukraine and the war in Croatia revealed substantial similarities as far as their causes and destructive consequences were concerned. On the other hand the second stage of the war in Ukraine strongly differs by being predominantly an interstate war and the first interstate armed conflict in Europe caused by NATO enlargement. As a result, the war in Ukraine is sharply distinguished by its magnitude, destructive outcomes, violations of international humanitarian law, international impact, and the involvement of great powers. At the beginning of the second stage of the war in Ukraine, the Russian Army pre-empted the anticipated Ukrainian version of an offensive akin to the Croatian operations “Flash” and “Storm”. It not only prevented the possibility of Volodimir Zelenski’s triumphant entrance in Donetsk like Franjo Tudjman’s entrance in Knin. The Russian Federation also annexed four Ukrainian provinces with Russian and Russian-speaking majorities in their populations and the Russian Army occupied a good share of them. In 2014 and 2022, Moscow thus took back a considerable part of former Novorossiya given to Soviet Ukraine in 1920 and 1954. Unlike in Croatia, but like in Kosovo (1999) the war in Ukraine has extended the list of the more than three dozen new or de facto changed borders between European states since 1945. Responsibility for the war in Ukraine In a speech given at the UN General Assembly, US President Joe Biden ascribed Russia with full responsibility for the war in Ukraine. Yet, in fact, a number of states are directly responsible or co-responsible for its outbreak and continuation, including notably USA. First, the war was initiated by the Ukrainian Army in April 2014 according to orders of the Ukrainian interim Presidency. Under two subsequent Presidents Poroshenko and Zelenski, Ukraine violated two armistice agreements and sabotaged realization of the Minsk 2 agreement on peaceful resolution of the Donbas conflict. President Zelenski failed to fulfil his pre-election pledge to end the war, a pledge that had seen him win the election in 2019. On 21 March 2021, he ordered the Ukrainian Army to attack Donbas and Crimea in direct violation of both the Minsk 2 agreement and of international law. The Ukrainian leadership’s orders to steeply increase the artillery shelling of Donetsk from February 16, 2022 on, together with the movement of troops provoked an invasion by the Russian army. This led to the armed conflict transforming from an internal to largely an interstate war. In April 2022, President Zelenski reneged on an initialed agreement with the Russian Federation on resolving the conflict, as forged with assistance from the leaders of Israel and Turkey as intermediaries. Ukraine is responsible for the casualties and damage caused by its forces in Ukraine and in the Russian Federation. On the other hand, the Russian Federation has grossly violated the UN Charter, the Helsinki principles, and a dozen international treaties and agreements by which it guaranteed Ukraine’s security and sovereignty within its internationally recognized borders. In February 2014, it committed an act of aggression by occupying and annexing Crimea. On 24 February 2022, it committed a second act of aggression by invading, occupying and annexing four Ukrainian provinces. The Russian Federation is responsible for the casualties and huge damage the Russian armed forces have caused on Ukrainian territory. The leading NATO members are co-responsible for the outbreak and continuation of the interstate conflict and war in and over Ukraine. This primarily applies to the USA, which knowingly unleashed a chain reaction in the conflictual relations between NATO and Russia. The USA used NATO to embroil EU in this conflict, even though that contradicts the objective economic and other interests of many EU members, notably Germany. This chain reaction led to the political conflict deteriorating into a war in which the USA is using Ukraine as a tool to harm and weaken Russia. Germany and France with their swindling signatures under the Minsk 2 agreement and with subsequent policies for 7 years allowed Ukraine’s sabotaging of peaceful solution of the Donbas conflict. As leaders in the European Union’s collective foreign policy, they encouraged and supported Ukraine’s active preparations for a war with Russia. The Western powers became co-responsible for the transformation from a relatively limited internal war in Ukraine into a wider, much more lethal, bloody and destructive, predominantly interstate war. In April 2022, the USA and Great Britain prevented the conclusion of an initialed Russian-Ukrainian agreement on resolving the conflict. The members of NATO and EU by politically encouraging and by providing arms and funds to Ukraine have been enabling the continuation of this war. Without this intrusion, the war in Ukraine would already be over and very probably on better terms for Ukraine than there will actually be. The NATO and EU members will certainly fail to achieve their main declared goal – Ukraine’s victory and hence Russia’s military and political defeat. This applies chiefly to the leader of the West. After that in Afghanistan, the USA will suffer one more political defeat. On the other hand, the USA has this time been rather successful in realizing several related goals. The USA has solidified its hegemony in the Western camp and in most of Europe, reactivated NATO, attracted two new members Finland and Sweden, bolstered its dominant role in the alliance, subordinated even further and simultaneously economically and politically weakened the European Union, for quite some time poisoned Germany’s and the EU’s relations with Russia, and inflicted very considerable economic and political damage on Russia. Conclusion Ukraine is today much farther away from accomplishing its cardinal strategic goal – to re-establish its sovereignty on the entire internationally recognized territory – than it was in February 2022, let alone in February 2014. Moreover, another goal remains unattained. It was stated in Zelenski’s decree as a condition for lifting the prohibition on any negotiations with the Russian Federation – to remove Putin from the position of President. However, with his mandate expired in May 2024 Zelenski himself will certainly be out of his presidential office much sooner than Putin will be from his. On the other hand, the Russian Federation has achieved some of its strategic goals, albeit not the two declared principal ones – Ukraine’s permanent “neutralization” and “demilitarization”. Due to the two sides’ mutually excluding objectives, the final outcome of the war in Ukraine will not be decided around a diplomatic table as a compromise. Like what happened in Croatia in August 1995 and very recently in September 2023 with the fate of Nagorno-Karabakh, it will be decided on the battlefield. Still, the outcome will be very different from both cases mentioned above and certainly will not be viewed as just by both belligerents. Just like how almost all wars end. SELECT BIBLIOGRAPHY Baud, Jacques (2023): Ukraine entre Guerre et Paix. Paris, Max Milo. Bebler, Anton (ed.). (2015): ‘Frozen conflicts’ in Europe. Opladen, Barbara Budrich. Brzezinski, Zbigniew (1997): Geostrategy for Eurasia. Foreign Affairs 76 (5): 56–68. Goldstein, Ivo (2008): Hrvaška zgodovina. Ljubljana, Društvo Slovenska Matica. Larrabee, F. Stephen, Peter A. Wilson and John Gordon (2015): The Ukrainian Crisis and European Security. Santa Monica, RAND Corporation. Maver, Aleš (2023): Ukrajina: Od Igre Prestolov do Vojne za Samostojnost. Celje, Celjska Mohorjeva Družba. Pleiner, H. (2023): Der Konflict um die Ukraine. ÖMZ 5: 571–583. Wien. Plokhy, Serhii (2022): Vrata Evrope: zgodovina Ukrajine. Ljubljana, UMCO.

Energy & Economics
Chinese Yuan on the map of South America. Trade between China and Latin American countries, economy and investment

Ahead of the curve: Why the EU and US risk falling behind China in Latin America

by Ángel Melguizo , Margaret Myers

한국어로 읽기 Leer en español In Deutsch lesen Gap اقرأ بالعربية Lire en français Читать на русском As Beijing’s investment approach to Latin America focuses on industries of strategic importance, the EU and US will need to contend with growing Chinese competition China is pouring less foreign direct investment (FDI) into Latin America. But while this may seem like a sign of Beijing’s disinterest in the region, data suggests that Chinese companies are simply recalibrating, not retreating. In doing so, they are becoming important players in sectors key to Western interests: critical minerals, fintech, electric vehicles, and green energy. While the European Union and the United States have long been top investors in Latin America, increased competition with Chinese investment now jeopardises their interests in the Latin American industries that will become most crucial to the digital and green transitions. The number of Chinese projects in Latin America grew by 33 per cent from 2018-2023, compared with the previous five-year period of 2013-2017, even as the total value declined. In other words, Chinese companies are making more investments in the region but are pursuing smaller-scale projects on average. These investments are also more focused on what China calls “new infrastructure“ (新基建), a term which encompasses telecommunications, fintech, renewable energy, and other innovation-related industries. In 2022, 60 per cent of China’s investments were in these frontier sectors, a key economic priority for the country. Beijing also views smaller projects in these industries as incurring less operational and reputational risk, especially compared to some of the large-scale infrastructure investment projects often associated with the Belt and Road initiative. Like China, the investment priorities of the G7 grouping – particularly the US and the EU – are centring on critical minerals, fintech, electric vehicles, and green energy as they aim to grow and reinforce existing economic and political partnerships in Latin America. However, both the US and the EU risk falling short of China’s investment strategy in the region. The US has signalled want for greater economic engagement with the region, especially in sectors of strategic interest. However, to date, US efforts to compete with China remain largely focused on building US domestic capacity in these strategic sectors, even as some US companies, such as Intel, are increasingly focused on including regional partners in their supply chains. Some see opportunity for Latin America in Joe Biden’s landmark legislation, the Inflation Reduction Act (IRA), which is aimed at incentivising the energy transition while also de-risking critical supply chains. For example, certain countries in the region may benefit from preferential market access for their lithium or other key inputs to new energy and technology supply chains. However, the reach of the IRA – which remains a largely domestic policy – does not stretch as far as China’s current investment reshuffle. The Americas Act, announced by members of Congress in March could generate promising new investment opportunities for the region, as it encourages US companies and others to move their operations out of China, to which Latin America stands as a promising replacement. But Americas Act reshoring would primarily incentivise textiles and potentially medical equipment manufacturing, with less overall focus on the range of “new infrastructure” industries that China is prioritising. Chinese interests in information and communication technologies reveal a similar story. While the US has focused its policy on 5G equipment sales, China is undertaking a process of vertical integration in Latin American tech sectors that will dramatically boost its competitiveness. For instance, Chinese company Huawei is rapidly expanding its focus to include data centres, cloud computing, cybersecurity, and other services, especially in Argentina, Brazil, Chile, Colombia, Mexico, and Peru. (Computing accounted for a sizable 41 per cent of total Chinese information technology investment in the region between 2018 and the first half of 2023.) At the same time, Global Gateway, the EU’s proposal for a global investment initiative is yet to reach its potential in the region. Brussels is looking to be Latin America’s partner of choice by building local capacity for making batteries and final products like electric vehicles, as European Commission president Ursula von der Leyen noted last year. Yet even as the EU signals renewed commitment, China is becoming increasingly dominant in the electric vehicle market in Latin America and other regions. China surpassed the US in electric vehicle sales in 2023, with Chinese companies accounting for 45 per cent of total global sales and three times that of Germany’s. What is more, China has invested $11 billion in lithium extraction in the region since 2018, as part of a bid to control a third of global lithium-mine production capacity. Meanwhile the EU has secured some access to lithium as part of trade deals with Chile, alongside other nations, but this pales in comparison to what will be required to fuel the future of EU battery production. Latin America as a whole accounts for an estimated 60 per cent of the world’s lithium reserves. Based on its current levels of engagement in the region, the EU risks falling short of lithium, stalling its battery production and subsequently, its electric vehicle sales, just as China advances in this field. The window is closing for the EU, the US, and other partners looking to both maintain market share and compete with China in these Latin American industries, despite still-high rates of US and EU investment in and trade with the region. Indeed, US automakers increasingly see Chinese competition across the globe as an “extinction-level event.” Ensuring competitiveness in “new infrastructure” and related sectors will require a continuous commitment by partners to building and supporting project pipelines, and to delivering products and services at price points that can compete with China’s subsidised offerings. Both the EU and the US remain critical economic partners for Latin America and are contributing in ways that China is not. Still, complacency risks allowing China to take the lead in emerging industries in the region, some of which weigh heavily in the EU’s green and digital transformation. To protect their own future industries, the EU and the US need to first take a longer look at Latin America’s – especially as China vies for a dominant position.