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Diplomacy
Currencies of US, China, Russia

Can Russia and China unseat the Dollar from its throne?

by Sauradeep Bag

​Although the dollar continues to be the dominant global currency, Russia and China could dent this dominance. In the aftermath of global financial exclusion, Russia has had to make some strategic adaptations. The West’s sanctions had crippling consequences, and the Kremlin scrambled to find alternatives. In light of these developments, China became an important ally, and the Yuan—its currency—has taken on a more prominent role. It is telling that in Russia, the yuan has surpassed the United States Dollar (USD) in trading volume, a feat achieved a year after the Ukraine conflict, which triggered a series of sanctions against Moscow. As Russia and China band together, one wonders what other shifts will take place and how they will shape the future. Change is afoot, and the Russian market bears witness. The month of February saw a watershed moment as the yuan surged past the dollar in monthly trading volume for the first time. The momentum continued into March as the gap between the two currencies widened, showcasing the growing sway of the yuan. It’s an impressive feat, considering that the yuan’s trading volume on the Russian market was once quite insignificant. The winds of change blew through Russia’s financial system as the year progressed. Additional sanctions had taken their toll on the few remaining banks that still held power to make cross-border transactions in the currencies of countries that had been deemed “unfriendly” by the Kremlin. One such bank was Raiffeisen Bank International AG, whose Russian branch played a significant role in facilitating international payments within the country. However, the lender found itself under the watchful eye of both European and US authorities, which only added to the pressure. These events spurred the Kremlin and Russian companies to shift their foreign-trade transactions to currencies of countries that had not imposed sanctions.Converging coalitionsThe bond between Russia and China is growing stronger, with both nations seeking to bolster their positions on the global stage. Their alliance has spread across various spheres: military, economic, and political. With relations between Russia and the West crumbling, China has emerged as a key partner for Russia, providing it with the necessary support to counter economic and political pressure. On the other hand, China is keen on expanding its global reach, especially in the Eurasian region, and sees Russia as an important ally in this regard. President Xi Jinping’s recent visit to Moscow and his pledge to expand cooperation are likely to take this partnership to greater heights. Trade and investment ties are set to grow stronger, with both nations seeking to reduce their dependence on Western economies. Russia’s focus on infrastructure development and mega projects is also likely to benefit from China’s expertise in these areas. Energy is another significant area of collaboration, with Russia being a leading exporter of oil and gas and China being the world’s largest importer of these resources. Technology is also an essential domain, with both countries investing heavily in research and development to remain competitive in the global economy. While the alliance between Russia and China will likely have far-reaching geopolitical consequences, it is a complicated relationship with both nations pursuing their interests, even as they work towards common goals. As a result of Western sanctions, Russia has shifted its foreign trade transactions away from the dollar and euro to currencies of non-restricted countries. By doing so, the Kremlin and Russian companies hope to decrease their dependence on the Western financial system and explore new avenues for conducting their trade and economic activities. This shift in strategy reflects Russia’s determination to maintain its economic stability despite restrictions on its access to the global financial system. It also underlines the growing importance of alternative currencies in global trade as countries strive to minimise the impact of sanctions and safeguard their economic interests.Structural overhaulsThe Russian Finance Ministry was not immune to the winds of change either. Earlier this year, it made the switch from the dollar to the yuan for its market operations. It even went a step further by devising a new structure for the national wealth fund, earmarking 60 percent of its assets for the yuan. The Bank of Russia joined the chorus, urging its people and businesses to consider moving their assets to the rouble or other currencies considered “friendly.” This would help mitigate the risk of having their funds blocked or frozen. As the world undergoes a seismic geopolitical shift, it seems Russia is moving in tandem, searching for ways to secure its economic future. However, the dollar still reigns supreme in the Russian market. Even with all the changes taking place, it remains the most widely used currency, ceding its throne only occasionally to the yuan. This underscores the enduring dominance of the dollar, which has played a significant role in Russia’s financial landscape for years. However, as the world continues to evolve, one wonders how long it can hold on to its crown.

Diplomacy
Genghis Khan Statue Complex

Mongolia: squeezed between China and Russia fears ‘new cold war’

by Christoph Bluth

Mongolia’s prime minister, Luvsannamsrain Oyun-Erdene, recently expressed his country’s fear that the world is heading towards a new cold war as the relations between Russia and China and the west – particularly Nato – have taken a turn for the worse. “It’s like a divorce,” he said. “When the parents divorce, the children are the ones who get hurt the most.” The country sits landlocked between Russia and China and is fearful of antagonising either. It gets much of its power from Russia, and China buys much of its exports – mainly agricultural goods and minerals such as copper. By pursuing a nimble foreign and trade policy since it transitioned to a multiparty democracy in the early 1990s, Mongolia has established a stable economy, receiving a thumbs up from the World Bank in its latest country report: With vast agricultural, livestock and mineral resources, and an educated population, Mongolia’s development prospects look promising in the long-term assuming the continuation of structural reforms. But the war in Ukraine has brought home to Mongolia just how carefully it must now navigate its foreign and trade policies to remain independent.Smooth transition to democracyFrom 1921 to 1990, Mongolia was effectively part of the Soviet bloc, although not part of the Soviet Union itself. The country’s centralised command economy was almost entirely dependent on Moscow for survival. The collapse of communism in the early 1990s resulted in what proved to be a smooth transition. The then leader, Jambyn Batmönkh, refused to even consider quelling pro-democracy demonstrations, instead saying: “Any force shall not be used. There is no need to utilise the police or involve the military … Actually, these demonstrators, participants, and protesters are our children.” His resignation in 1990 and the emergence of Ardchilsan Kholboo (Mongolian Democratic Union) paved the way for the development of a multiparty democracy. The June 1993 presidential election in Mongolia, which was ruled as free and fair by the International Foundation for Electoral Systems, saw the incumbent president, Ochirbat Punsalmaa – who had been appointed after a ballot by members of the existing Presidium of the People’s Great Khural (the national assembly) – elected for a four-year term. A new constitution was adopted, with a three-part structure under the speaker of the parliament, the prime minister and the president and, while there have been instances of political corruption, Freedom House gives the country a high rating for both political rights and civil liberties. All of which cannot disguise that the fledgling democracy remained wedged between (at the time chaotic) Russia and an increasingly assertive and authoritarian China. The obvious policy for Mongolia to pursue was to attempt to balance the two great powers in the region. Initially, Mongolia’s foreign policy relied heavily on “omni-enmeshment”. This basically meant building relationships with as many partners as possible, both regionally and globally – including, significantly, the US. But since 2000, Mongolia has embraced the policy concept of “balance-of-power” to reduce the country’s reliance on any one nation. To this end, they have partnered with strategic states in Asia, such as Japan and India, and rekindled military ties with Russia by entering a “strategic partnership” and conducting joint military exercises, while still maintaining a strong relationship with China. Mongolia has also strengthened bilateral security relations with the US. Mongolia’s relationship with China is complicated by the fact that a significant part of what was traditionally Mongolia is now an “autonomous region” of China (Inner Mongolia), with a population of ethnic Mongolians larger than that of Mongolia itself. This, and the activities of secessionist groups in the province, is a persistent point of conflict between China and Mongolia.Third neighboursBut Mongolia sees its independence increasingly threatened as Russia and China grow closer. Since the demise of the Soviet Union, Mongolia has adopted a strategy of maintaining strong ties with “third neighbours” – countries that embrace democratic values but also practice market economics, including the US (it was a term first articulated with connection to Mongolian foreign policy in August 1990 by then US secretary of state James Baker). The US and Mongolia formalised their relations as a Strategic Partnership in 2019 and in 2022 – clearly with one eye on Ukraine – the two countries announced they were deepening the partnership “in all areas of mutual interest”, including an “open skies” agreement which would guarantee scheduled nonstop passenger flights between the two countries. The US – with other third-neighbour allies – also takes part in the annual Khaan Quest military exercises.Dangerous timesThe war in Ukraine has brought the precarious geopolitical situation in Ukraine into sharp focus. The latest joint declaration from the US-Mongolia Strategic Partnership stressed that “disputes should be resolved by peaceful means and with respect for the United Nations Charter and international law, including the principles of sovereignty and respect for the independence and territorial integrity of states, and without the threat or use of force”. It added: “To this end, both nations expressed concern over the suffering of the Ukrainian people.” Mongolia has abstained from the UN votes condemning Russia’s invasion of Ukraine, while also refusing to criticise the sanctions imposed on Russia by the west, despite the fact that they have affected Mongolia – for example, sanctions against Russian banks have made it difficult to pay for its imports from Russia. And, for all its efforts to forge ties around the globe, Mongolia remains heavily dependent on both Russia and China. The prospect of a new cold war setting the west against the Beijing-Moscow axis is a major concern for Mongolia. As Elbegdorj Tsakhia, a former prime minister and president of Mongolia – now a member of The Elders group of global leaders – told Time magazine in April 2021: “I feel that we have just one neighbour. China, Russia, have become like one country, surrounding Mongolia … Every day, we face very tough challenges to keep our democracy alive. Mongolia is fighting for its survival.”

Diplomacy
President Xi Jinping with Vladimir Putin

Putin-Xi Summit Reinforces Anti-U.S. Partnership

by Thomas Graham

The meeting of Russian President Vladimir Putin and Chinese leader Xi Jinping in Moscow helped both give the impression of a united front, but underlying tensions were also discernible. What did the summit achieve for each side?With the pomp of a state visit, Russian President Vladimir Putin and Chinese leader Xi Jinping shined a spotlight on their ­growing strategic alignment, which is aimed at upending the U.S.-led, rules-based international order in favor of a multipolar world. Long on symbolism, short on concrete substance, the summit nevertheless served both leaders’ purposes. Putin welcomed the demonstration that Russia was not, and could not be, isolated on the world stage, as it deepened relations with one of the world’s two superpowers. By showcasing burgeoning commercial ties and unveiling plans to expand them, Putin conveyed confidence that Russia can remain resilient in the face of harsh Western sanctions.      Meanwhile, Xi’s decision to make Moscow his first foreign visit of his third term as president underscored his strong commitment to Russia and to Putin personally. He used the summit to underscore China’s determination to pursue its national interests in defiance of mounting U.S. economic and diplomatic pressure—making the point that China will not abandon its strategic partner in pushing back against U.S. pretensions to global leadership. That was a crucial message for his increasingly nationalistic domestic audience, as well as for the Global South, where the U.S.-led liberal order is under stress. At the same time, Xi subtly let it be known that China is the dominant partner. Putin had little choice but to accept Xi’s proposal that Russia use the yuan, not the ruble, in trade with the Global South to diminish the role of the U.S. dollar in world trade. Xi also gratuitously endorsed Putin for reelection in 2024, even though the Russian president has not declared his intention to run. And at the joint press availability at the end of the summit, Xi was much more restrained in his description of bilateral relations than was Putin, who was eager to lay out all the areas in which the two countries would enhance cooperation in the years ahead. That left the clear impression that Russia needed China much more than China needed Russia.What does the summit mean for the war in Ukraine?Nothing at the summit suggested that the underlying dynamic in the war was about to change. As expected, Beijing continued to provide Moscow with strong diplomatic support, echoing the latter’s narrative blaming the North Atlantic Treaty Organization (NATO) for the conflict. Despite Washington’s fears, however, Xi gave no indication that China was ready to provide lethal military aid that might radically improve Russia’s chances on the battlefield. Putin noted that China’s recently released 12-point peace plan could serve as a basis for negotiations, but neither he nor Xi suggested any practical steps that might give substance to what is largely a list of bromides about respecting sovereignty, avoiding escalation, and seeking a diplomatic solution. The reality is that China benefits from the military stalemate. Russia’s aggression distracts U.S. attention and resources from the Indo-Pacific region, while Western sanctions compel Russia to turn to China as an economic lifeline. China exploits Russia’s predicament to gain access to critical natural resources, especially oil and gas, at discounted prices.  In line with this calculus, Xi provided Putin with sufficient moral and material support so that he could continue the fight, but much less than needed to give Russia the advantage. At the same time, the Chinese continued to drive hard commercial bargains. Notably, no deal was announced to build a second Power of Siberia gas pipeline, which Putin has described as “the deal of the century.” Rather, it was simply noted that further details needed to be negotiated, as China explores alternatives.What does it reveal about the underlying tensions between China and Russia?Except for a brief period after the Communist takeover of China in 1949, China and Russia have been rivals, not partners. Until the end of the Cold War, Russia was by far the superior power.   The dynamic changed dramatically after 1991. Then, the two countries’ economies were roughly the same size. Now, China’s economy is ten times larger, and the gap continues to widen.  Moreover, China now casts a much larger shadow on the global stage: it has overtaken Russia in the development of advanced technology and its conventional military is comparable to Russia’s, even as it is moving toward nuclear parity with both Russia and the United States. What once could have been seen as a roughly equal partnership has evolved to the point where Russia is decidedly the junior partner. Despite the rhetoric of comprehensive partnership and avowals from Putin and Xi that relations have never been better, this asymmetry in power and ambition is in itself a source of friction, in addition to the civilizational clashes, racial prejudices, territorial grievances, and geopolitical competition that have strained relations in the past. But these sources of tension are currently far outweighed by the shared challenge from the United States. Washington’s current policy of dual containment only reinforces their strategic alignment and pushes the tensions further into the background.

Diplomacy
Customers line up outside a grocery store with distance from each other for social distancing during the Corona or Covid 19 virus outbreak

Digital Disinformation and Anti-Chinese Resentment in the Philippines

by Jason Vincent A. Cabanes , Fernando A. Santiago, JR

In the Philippines, digital disinformation campaigns have become central to electoral politics. Unfortunately, their use of vitriolic and socially divisive techniques has become increasingly normalised in the country’s politics, as these techniques are put into play even between national voting seasons. In the Philippines, one pernicious technique that digital disinformation campaigns use is to fan the flames of toxicity on social media. By instigating the loudest and most polarised online supporters to express support for a particular political camp, disinformation producers ignite social media engagement from the broader public. These producers target the most socially divisive of people’s ‘imaginaries’ about politics. As the authors wrote in a previous piece, these imaginaries refer to people’s shared narratives and collective emotions about the political world in which they live.  The year preceding the Philippines 2022 national elections saw disinformation stoking Filipinos’ nationalist and racist sentiments. This was done by hyping up the Chinese military’s supposedly impending occupation of the Philippines and by blaming the pandemic situation on Manila’s rapprochement with China. Such campaigns targeted deep-seated Filipino narratives and emotions of resentment towards the Chinese, which problematically lump together the Chinese state, Chinese nationals, and even Filipinos of Chinese descent.  Some anti-Chinese sentiments are historically rooted. However, more recent resentment has arisen in reaction to China’s increasingly assertive claims in what the Filipinos call the West Philippine Sea (that is, the Philippine-claimed portion of the South China Sea), the feeling of a subtle invasion due to the almost 300 per cent increase of overseas Chinese in-migration to the Philippines between 2016 to 2019, and even the fear of China annexing the Philippines as a province.  Despite former Philippine president Rodrigo Duterte’s so-called pivot to China, Filipinos generally disliked China’s disregard for the 2016 United Nations Permanent Court of Arbitration’s decision favouring the Philippines on the territorial disputes in the West Philippine Sea. The presence of Chinese Philippine offshore gaming operators (or POGO) workers, Chinese-only restaurants, Chinese-subtitled movies in cinemas, and reports of Chinese tourists being rude to Filipinos also heightened the sense that the country was being gradually ‘colonised’. In the lead-up to the 2022 Philippines elections, disinformation drawing from such shared narratives and collective emotions regarding anti-Chinese resentment featured in campaigns across political camps. Supporters of Duterte disseminated content like misleading videos to bolster his image as a strong leader and master tactician. This played into the crafted narrative of him pursuing the Philippines’ best interests by hedging between China and the U.S. Meanwhile, supporters of anti-government factions targeted Duterte’s perceived closeness to Beijing, thinking that this was one of the few weaknesses in his campaign. These anti-Duterte elements put out content falsely attributing quotes to Duterte and his allies that were aimed at amplifying the image of his government as China’s lapdog. To explore the impact of such disinformation on Filipinos, the authors conducted qualitative interviews from June to December 2021 with 15 of Manila’s precarious middle-class citizens. Although these individuals had incomes that technically allowed them a taste of the middle-class lifestyle, they did not live in gated communities and were still exposed to the difficult grind of life in Manila. The interviewees answered questions on disinformation about the Philippines-China territorial disputes and the Covid-19 pandemic. When interviewees who supported Duterte were confronted with disinformation meant to positively portray his government’s approach to Beijing (that included friendlier ties with China), that they would engage in mental acrobatics to reconcile this content with their narratives and emotions of resentment against the Chinese. One of the clearest articulations of this came from a 29-year-old administrative assistant, who disliked feeling that the Philippines was becoming a “province of China”. Without differentiating between Chinese nationals and Chinese Filipinos, she said that Manila’s Chinatown was teeming with Chinese people. She added, however, that even if she were uncomfortable with the Chinese influx into Manila, there was nothing “majorly wrong” with Duterte wanting to be close to China. She could forgive the president for this one thing.  Meanwhile, the interviewees who leaned towards opposing Duterte were adamant that despite their opposition to his stance towards China, they were “not racist”. However, their exasperation that no difficult issue could strike a mortal blow to Duterte’s popularity led to remarks that validated, even if only subtly, their internalised narratives and emotions of anti-Chinese resentment.  For instance, a 45-year-old store supervisor who claimed to have a nuanced view of China-Philippines relations expressed his unfounded belief that 90 per cent of the Chinese migrants presently in the Philippines were “illegal” and had “no papers”. He thought that the government’s laxity with these migrants was probably why Covid-19 spread in the Philippines. This reflects the problematically racist assumption that links the Covid-19 pandemic to the recent increase in the migration of Chinese into the country.  These interviews indicate that anti-Chinese digital disinformation from across political camps does not shift individual Filipinos’ political positions. However, these disinformation campaigns can reinforce toxic nationalism and racism in people’s shared narratives and collective emotions. This kind of impact is an urgent reminder that those engaged in counter-disinformation need to pursue a cross-sectoral code of conduct in election campaigns that explicitly shuns socially vitriolic and marginalising stances, which should include, amongst other factors, racism. 

Diplomacy
Japanese Prime Minister Fumio Kishida during a speech in parliament.

Japanese PM Kishida’s struggle for political survival

by Professor Purnendra Jain and Takeshi Kobayash

Japanese Prime Minister Fumio Kishida and his Liberal Democratic Party (LDP) are facing one of the worst financial scandals in decades, resulting in growing public distrust of the party and threatening the stability of his government. The Kishida government, which took office in October 2021, was already facing headwinds as its cabinet’s popularity declined due to concerns about the economy, social security and the LDP’s links to the Unification Church. The assassination of former prime minister Shinzo Abe in 2022 during an election campaign further complicates matters. The assailant claimed that Abe supported the Unification Church, which he said caused his family’s bankruptcy and forced his mother into making donations. Many other LDP parliamentarians are known supporters of the Church. Kishida and the LDP are yet to be transparent about this issue. Despite falling popularity, the LDP’s approval ratings hovered in the 30s between October and November 2023. Analysts suggested that, despite his low popularity, Kishida would continue and that there were no imminent threats to his prime ministership. That scenario changed dramatically at the close of November 2023. One poll suggests that Kishida’s cabinet approval rate has plummeted to 17 per cent, marking the lowest prime ministerial approval rating since the LDP regained power in 2012. The drop in popularity occurred after it was revealed that LDP factions and the individual parliamentarians associated with them had failed to report all revenues from ticket sales at fundraising events. The slush fund, estimated to be millions of dollars, was used for political purposes, violating the Public Funds Control Law. The Public Prosecutors Office has launched investigations into the LDP’s largest and most influential faction, the Seiwakai, commonly referred to as the Abe faction. Reports suggest that four other major factions, including the one led by Kishida, might also be implicated. Kishida has replaced four key cabinet ministers from the Abe faction. The position of Chief Cabinet Secretary — which serves as the face of the government — has gone to Yoshimasa Hayashi. Kishida had removed Hayashi from his position as foreign minister and, facing difficulty in persuading other colleagues to assume the Chief Cabinet Secretary position, Kishida opted for Hayashi, a member of his own faction. The other three ministerial positions went to factions led by Taro Aso, Toshimitsu Motegi and Hiroshi Moriyama. The cabinet reshuffle does not address the core problem — money politics. Money politics remains endemic in Japan’s political system, despite past reforms. In the 1970s, former prime minister Kakuei Tanaka resigned due to a bribery scandal. Following Tanaka’s resignation, the LDP sought to regain public trust by turning to ‘Mr Clean’, former prime minister Takeo Miki. But it was not long before another large-scale financial scandal — the Recruit Scandal — emerged in the late 1980s. The scandal led to former prime minister Noboru Takeshita’s resignation, his secretary’s suicide and the resignation of many high-profile politicians. Takeshita’s successor, former prime minister Sosuke Uno, resigned within months following revelations of sexual misconduct. Amid the scandals, the LDP called in another Mr Clean, former prime minister Toshiki Kaifu. But the LDP’s troubles persisted. The 1993 Sagawa Kyubin financial scandal resulted in the arrest and subsequent imprisonment of LDP ‘strongman’ Shin Kanemaru on tax evasion charges. These scandals ultimately led to the LDP’s electoral defeat in 1993, marking what was supposed to be a new era in Japanese politics. But opposition parties have struggled to win government and sustain it. The LDP regained power within two years of its 1993 defeat. Similarly, the LDP returned to government within three years by defeating the Democratic Party of Japan in 2012. Even during the Abe administration, reports of financial scandals emerged. But Abe’s strong popularity allowed him to survive. The current fundraising scandal and its scale are still unfolding. More resignations are likely. Many details regarding the unlawful accumulation of political funds remain unknown. The Public Prosecutors Office may shed light on the scandal after its investigation. Regardless of the outcome of the investigation, Kishida’s position appears untenable. Though not directly implicated like Tanaka, Takeshita and Uno in the past, the public expects Kishida, as President of the LDP, to own up to the rot in the party and step down. Despite the reshuffle of his cabinet and his statement committing to spearhead reforms in the LDP, it will be a political miracle if he survives this scandal ahead of the LDP presidential election in September 2024. The LDP and its Prime Minister face a choice. They can follow the same path as their predecessors by temporarily presenting a ‘clean’ face and then reverting back to business as usual. Alternatively, the new generation of LDP politicians can challenge the established path and set a different course for the party, one that is policy-focused, transparent, less factional and not hereditary. But it remains uncertain whether the new generation of LDP politicians is inclined to take on this challenge. The opposition parties remain weak, fragmented and unable to replace the LDP. Yet they play a crucial role in keeping the LDP government accountable. Without the Japanese Communist Party’s scrutiny, the present fundraising scandal might never have come to light.

Diplomacy
Flag of Japan between flags of US and China

Japan’s policy amidst growing US-China rivalry

by Kristina Voda

AnnotationThe article is devoted to the analysis of Japan’s policy amidst growing competition between the United States and China in the Indo-Pacific region. It assesses the Japan’s place in US strategy to contain China in the economic and political spheres. Particular attention is paid to the events that took place in 2021, the first year of the Biden administration in the US.  The Biden administration, which came to the White House on January 20, 2021, immediately announced a course of rivalry with China. In his very first foreign policy speech, the 46th President of the United States called the PRC the most serious rival of the United States, declared his desire to rebuff "the growing ambitions of authoritarian China, challenging American leadership". The U.S. Interim National Security Strategy Guide, published in March 2021, called China “the only competitor with the potential to combine its economic, diplomatic, military, and technological might to mount a sustained challenge to a stable and open international system”. The Biden administration's course of confronting Beijing also included countering Chinese illegal trade practices, cybercrime, and countering Beijing's so-called coercive economic measures that undermine the competitive advantage of the American economy. At the same time, Joe Biden, unlike his predecessor D. Trump, who pursued a policy in the spirit of “America first”, promised to rely on allies and partners in the implementation of his international policy. The Interim Strategic National Security Guide of the United States called the American allies “the most important strategic resource”, allowing them to act as a united front against global and regional rivals, including China. The United States promised to reaffirm and strengthen its commitment to alliances in Europe and the Indo-Pacific region, and to encourage allies to develop their military and political capabilities to counter common current and future threats. Japan, the most important military and political ally of the United States in the Indo-Pacific region (ITR), supported Joe Biden's course of rivalry with China on a wide range of issues. At the same time, the growing competition between Washington and Beijing is challenging Tokyo's national interests, forcing it to revise the key parameters of its economic and foreign policy strategy and adapt it to changing international political conditions.Military-political sphereIn 2021, Japan began coordinating its PRC strategy with the new American administration. On March 16, Tokyo hosted the first meeting of the new heads of the US Foreign and Defense Departments — A. Blinken and L. Austin — with their Japanese counterparts, which took place in the 2+2 format. Following the meeting, the parties stated that China's activities in the political, economic, military and technological spheres pose a challenge to the Japan-US alliance and the entire world community when they do not comply with the existing international order. The ministers announced their determination to resist Beijing's actions if they put pressure on regional players or destabilize the situation, which undermines the "rules-based" international system. During Biden's first Japan-US summit in Washington on April 16, 2021, the parties expressed concern about China's behavior that violates international order, including the use of economic and other forms of coercion. In addition, J. Biden and Y. Suga spoke out against China's territorial claims in the South China Sea, and also expressed concern about the human rights situation in Hong Kong and the Xinjiang Uygur Autonomous Region of China. For the first time in 52 years (since 1969), the leaders of Japan and the United States mentioned the "Taiwan issue" in a joint statement: they declared the importance of peace and stability in the Taiwan Strait and expressed concern about the current situation around Taiwan. A desire was declared to develop cooperation between Washington and Tokyo on the basis of universal values and common principles. The parties also stressed the need for deterrence to maintain peace and stability in the region. At the same time, J. Biden and Y. Suga noted that it is important to have a frank dialogue with Beijing, directly express their concerns and work with it on topics of interest. The United States remains Japan's most important military and political partner, guaranteeing the security of the Japanese state from outside attacks. According to official Japanese government documents, the most serious security threat to Japan is the lack of transparency in the increase in the combat capability of the Chinese military. In addition, China's attempts to change the status quo in the East China and South China Seas pose a threat to Japan. There is particular concern about China's activity around the Senkaku Islands in the East China Sea, which threatens Japan's sovereignty over the islands. In addition, the development of the DPRK's nuclear and missile programs is considered a security threat to Japan. Tokyo is concerned about the significant progress made by Pyongyang in the development of a new type of ballistic missile. On these most sensitive issues, Tokyo is seeking guarantees from Washington to ensure its security. The growing confrontation between the US and China in the international military-political sphere poses new challenges to the alliance between Japan and the US. In the 2010s - early 2020s. with the active assistance of the Japanese government, military cooperation between Tokyo and Washington has expanded markedly. The change in the interpretation of the Constitution by the government of S. Abe in 2013 allowed Japan to apply the right to collective self-defense in limited cases. The Japanese Self-Defense Forces gained the ability to come to the aid of their allies in joint operations outside the Japanese islands. As a result, the scope of the Japanese-American alliance has expanded virtually to the whole world. The creation in 2015 of the Coordinating Mechanism between the armed forces of the two countries is aimed at strengthening cooperation between Tokyo and Washington in the military sphere. It was used to monitor the situation on the Korean Peninsula during the escalation of tensions in 2017. In addition, Japan increased the volume of purchases of American weapons, including F-35 aircraft, SM3 ballistic missile interceptors, RQ-4 Global Hawk long-range unmanned reconnaissance aircraft, Osprey convertiplanes, E-2D Advanced Hawkeye AWACS aircraft, etc. Tokyo's more active involvement in the confrontation between Washington and Beijing is supported by some American political experts. In recent years, there has been an increase in the number of publications substantiating the important role of Japan in the US strategy in the Indo-Pacific region. It is noted that during the years of D. Trump's presidency, the United States refused to participate in a number of global and regional multilateral initiatives, undermining its credibility as the leader of the liberal international order. At the same time, it was Japan that assumed the role of a conductor and defender of liberal values in the IPR. As S. Smith, senior fellow at the American Council on Foreign Affairs, notes, along with maintaining an unshakable commitment to an alliance with the United States, Japan has acquired a more prominent role in international coalitions in the ITR in recent years. This is evidenced by its participation in naval exercises with the United States, Australia, India, and others. Further involvement of Japan in the US-Chinese confrontation on the side of the United States will require Tokyo to build up its military potential and increase its defense budget, strengthen coordination between its three types of armed forces, between the armed forces of the United States and Japan, as well as the unification of their commands. Such changes in Japan's military sphere will require further modifications of its defense legislation, including a revision of the restrictions imposed by the anti-war Article 9 of the Constitution. Although part of the political elite, including members of the ruling Liberal Democratic Party and former Prime Ministers S. Abe and Y. Suga, advocates the need to revise the Constitution and further expand Japan's military capabilities, about half of the public still does not support this course and adheres to pacifist views. In the short term, radical changes in Japan are unlikely, which will impose restrictions on Japanese-American cooperation in the military sphere. As for relations between Japan and China, during the period of D. Trump's administration in the United States, there was limited convergence on economic and political issues between Tokyo and Beijing in 2017-2019. The visit of Prime Minister S. Abe to Beijing in 2018 gave an impetus to the expansion of economic interaction between the two largest Asian economies. China and Japan signed 52 agreements totaling about $18 billion, announced plans to cooperate in third countries in the field of infrastructure construction, agreed to cooperate in the field of innovation development and intellectual property protection, renewed a $30.4 billion currency swap agreement, expressed the need to jointly develop free trade regimes in the region. Tokyo and Beijing have taken steps towards each other in the field of regulating tension in the East China Sea. The parties reaffirmed their long-standing intention to turn the East China Sea into a "sea of peace, cooperation and friendship" and agreed to prevent the emergence of dangerous situations at sea and in the air. On December 28, 2021, Japan and China again announced their intention to open a “hot line” between military departments to monitor the situation in the East China Sea around the Senkaku Islands, the sovereignty over which is disputed by Beijing. In the military-political sphere, serious contradictions remain between Japan and the PRC, including the territorial dispute, the problem of historical memory, as well as competition for influence in the IPR. At the same time, Tokyo maintains channels of communication with Beijing and its own agenda of bilateral relations. According to R. Sahashi, a Tokyo University researcher, Japan's task in its relations with China since establishing diplomatic relations in the 1970s has been to involve China in the international political order through the development of bilateral economic relations while maintaining its alliance with the United States. Japan's response to the current intensification of confrontation between the United States and China has been to increase cooperation with the United States in the military-political sphere and in the field of economic security, as well as the development of interaction with countries that share views with Tokyo on a preferred international order while maintaining diplomatic relations with China. Japan's long-term interest lies in the creation in the IPR of certain institutions in the field of economy, politics and security, which should lead to the formation of an order based on universal values.Trade and economic sphereIn 2021, the policy of the Joe Biden administration in the trade and economic sphere in the Indo-Pacific region was in the process of formation. Many of D. Trump's measures, primarily in relation to China, have retained their effect. A number of new initiatives were proposed to restore the US position in the IPR, lost during the years of the previous administration. With respect to the PRC, Washington upheld the tariffs imposed by Trump on imports of Chinese products worth about $370 billion (on 75% of exports of Chinese manufacturers to the United States). In addition, sanctions remain against high-tech Chinese companies ZTE and Huawei. In response to US restrictive measures, China imposed 25% tariffs on $110 billion of US imports in 2018. The trade dispute between the United States and China, the active phase of which fell on 2018-2019, led to the signing by the parties on January 16, 2020 of the so-called first phase of the trade agreement. It assumed an increase in Beijing's purchases of American products in 2020-2021. by $200 billion compared to 2017. It also committed China to make progress in enforcing intellectual property rights, remove non-tariff barriers to agricultural imports, and liberalize its financial services sector. The Biden administration continued to insist that China fulfill the terms of the first phase of the bilateral agreement. In October 2021, the new US Trade Representative K. Tai announced her intention to continue consultations with the Chinese side on trade and economic issues, as well as to raise issues such as subsidizing by the PRC government of certain sectors of the economy and special measures to support state-owned enterprises, which Washington is considering in as Beijing's "non-market trading practices". The trade dispute between the United States and China has led to a slowdown in the global economy and world trade, a decline in business confidence and increased uncertainty about future developments. Japan's trade volume in 2019 also decreased by 5% compared to 2018. Japanese exports to China fell by 7%, imports decreased by 3%. China remains Japan's largest trading partner: China's share in Japanese trade in 2018-2019 was 22%, and at the end of 2020 it increased to 24%, while the share of the USA was at the level of 15%. The trade dispute between Washington and Beijing had a negative impact on the economic performance of Japanese multinational corporations (TNCs) with Chinese subsidiaries. Since the US imposed tariffs on Chinese products in 2018, there has been a decline in sales from Chinese affiliates of Japanese TNCs trading with North American countries. Declines in the value of shares on the exchange (Nikkei 225 Index) were recorded for Japanese TNCs, whose operations are related to trade between the US and China. The share price of TNCs, whose Chinese subsidiaries had a higher share of imports from Japan, fell most noticeably. This is because, as sales to the US fell, the volume and value of imports from Japan also fell, resulting in a decline in the share price. To avoid an increase in the negative effect of the trade war, some Japanese corporations were forced to transfer production. So, Mitsubishi Electric in 2018-2019 moved part of the production of semiconductors and equipment for customers from the United States to Japan. Other companies have increased the capacity of their plants in North America and Southeast Asia. Electric motor maker Nidec Corporation moved production to Mexico in October 2018, Ricoh moved printer production to Thailand, and Sharp moved some laptop production from China to Vietnam. Washington’s course to confront Beijing in the economic and technological spheres in 2021 was supplemented by an initiative aimed at reducing the dependence of the US economy on high-tech products made in China and reformatting existing supply chains with the possible exclusion of China from them. In February 2021, Washington announced its intention to encourage the transfer of production of critical products from China to the United States and allied countries, including Japan, South Korea, Taiwan, Australia, and India. At the same time, special attention in the United States is paid to the production of semiconductors, an industry that is one of the key drivers of global economic growth. The semiconductor shortage in 2021 exposed the vulnerability of existing supply chains and undermined the global production of cars, computers and electronics. On June 8, 2021, the U.S. Senate passed the Innovation and Competition Act, which provides $250 billion for the development of the semiconductor, quantum computing, and artificial intelligence industries. 52 billion of them is planned to be directed to expanding the production of semiconductors in the United States. The purpose of this bill is to increase the competitiveness of the United States in the technological competition with China, where as part of the "Made in China 2025" strategy, the amount of state support for semiconductor-producing companies is stated to be 1.4 trillion dollars. The Japanese government is also taking steps to reduce dependence on China. According to Japanese expert A. Furuse, Tokyo realized the need to diversify its supply chains as early as 2010 after the escalation of tensions around the Senkaku Islands in the East China Sea caused interruptions in the supply of rare earth metals to Japan from China. Today, when the whole world is facing supply disruptions, the importance of cooperation between allies and partners in high-tech industries is increasing. Partner countries will be able to reduce the risks of dependence on China, share the financial burden on research and development, and take their industrial cooperation to a new level. On June 4, 2021, the Government of Japan released the "Semiconductor and Digital Industries Strategy" covering activities in three sectors: semiconductors, digital infrastructure, and digital industry. It states that ensuring the security of production and supply of semiconductors is an issue directly related to economic security in the face of technological competition between the United States and China. To this end, Japan will promote joint development with advanced foreign manufacturers. Another document released by Japan's Ministry of Economy, Trade and Industry on June 29, 2021 said that with the rivalry between the US and China intensifying, Japan should diversify its suppliers and cooperate with the US and other countries to protect supply chains. It also emphasizes the need to take measures to prevent the leakage of sensitive technologies from Japan. Another important issue is the prospects for the participation of the US and China in multilateral trade formats in the ITR. Now China's share of international trade in the region far exceeds that of the United States. On November 15, 2020, the Regional Comprehensive Economic Partnership (RCEP) was signed and entered into force on January 1, 2022 for ten countries (Australia, Brunei, Cambodia, China, Japan, Laos, New Zealand, Singapore, Thailand and Vietnam). In the absence of India, which pulled out of negotiations in early 2020, China is taking the lead in this world's largest free trade zone, covering 30% of the world's population. After the United States withdrew from the Trans-Pacific Partnership (TPP) in 2017, the remaining 11 countries participating in the negotiations entered into a new agreement called the Comprehensive and Progressive Agreement on the Trans-Pacific Partnership (CPTPP). Japan, after the withdrawal of the United States, took the place of the leader of the association and thereby guaranteed itself participation in the formation of rules and norms for conducting trade and economic activities in the region. In September 2021, China applied to join the CPTPP. Although many are skeptical about the prospects of China's participation in the CPTPP, China's share in the trade of all its members already exceeds that of the United States. The accession of the United States to the CPTPP in the near future is also unlikely, primarily for domestic political reasons. Nevertheless, in 2021, the Biden administration made an attempt to return to the discussion of trade and economic issues in the IPR on a multilateral basis. Speaking at the East Asia Summit (EAS) on October 27, 2021, which was held online, Biden announced the initiative to create the Indo-Pacific economic framework. According to him, its activities will be aimed at facilitating trade procedures, setting standards for the digital economy and technologies, strengthening the sustainability of supply chains, decarbonization and development of clean energy, infrastructure development, improving labor standards, and so on. But this initiative, unlike multilateral free trade agreements, will not be binding, it does not include trade and investment liberalization goals, and it does not guarantee preferences in the attractive US market. These circumstances will reduce the value of the American proposal for the IPR countries in comparison with the already existing multilateral formats. Washington's unwillingness to participate in free trade agreements in the IPR reduces the involvement and influence of the United States in the rules and norms of trade and economic activity being developed here. In turn, Beijing, the leading trading partner of most regional economies, during the 2010s put in significant efforts in creating its own international institutions designed to strengthen the influence of the PRC on international economic relations and at the same time increase independence from external rules and norms. Under these conditions, Japan sees its task as the formation of a multifaceted trade and economic system with unified rules and norms in the ITR, which will be able to not only balance China's growing influence but also create a liberal economic order that both China and the United States will be forced to reckon with. Thus, Japan hopes that its multilateral trade policy will be able to limit the unilateral actions of Beijing and Washington and reduce the potential negative effects of the trade war between China and the United States on the national and global economy.

Diplomacy
Mumbai, India. Migrant workers sit in the queue at a train terminus to board on a train for their journey back home during a nationwide lockdown

South Asian Migration to Western Europe: Origins, Trends, Perspectives

by Andrey Volodin

Migration flows from South Asia to Western Europe have a long history, the origins of which can be traced in the colonial development of the states of this region.  The end of British colonial rule in India in 1947 was accompanied by the split of the once unified territorial space of Hindustan into two national entities - India and Pakistan. During the first decades after independence, there were intense migratory movements from the former colony to the former metropolis. British migration policy determined the direction and intensity of migration flows from the Hindustan Peninsula to the United Kingdom. The first post-colonial migration flows were based on the following reasons: Britain's interest in the influx of additional labor force, mostly of low qualification; the practice (which existed before 1947) of free human movements from the colonies to the mother country; features of the immigration policy of the United Kingdom, which allowed citizens of the countries of the British Commonwealth to choose their country of residence and even have their own companies in the UK. The vast majority of migrants from India were Sikhs, people from a peasant environment (mainly middle-class farms), who served in the colonial army and police units, as well as their relatives, who did not fail to take advantage of the opportunity to leave. Prior to the adoption of The British Commonwealth Immigration Acts 1962 and 1968 by the Parliament of the United Kingdom, indians, as Commonwealth citizens, had unlimited rights to enter the territory of the former metropolis. Many of the new arrivals settled in industrial centers such as Leicester or Birmingham. Newly arrived migrants were employed in the textile and service industries. A significant part of them were employed in the services of Heathrow Airport in west London. The 1962 Act, which restricted the freedom of migration to the British Isles from the Commonwealth countries, actually already encouraged immigrants from India and other South Asian countries to settle on British territory. Soon their family members joined them. By the mid-1960s, most Indians arriving in the UK were listed as "dependants", as British government statistics described them. Dependents made up 75% of immigrants in 1965 and 80% in 1966. Migration flows from India to the former metropolis peaked in 1968, when the number of arrivals in the United Kingdom exceeded 23 thousand people. Migration flows from India intensified sharply between 1995 and 2005. Data from population censuses shows that the number of Indian migrants actually tripled between 1961 and 2001, from 166,000 to 470,000. To be fair, we note that the British, who were born in India, were also immigrants. In 2001, the Indian community in the United Kingdom numbered about 1 million people, with about a fifth of its composition coming from South Africa and former East African colonies. In 2007, the number of Indians in the UK increased to 1.3 million people. Until the early 1990s, the former metropolis remained the main haven for Indian migrants, but gradually their influx began to spread to Western and, to an increasing extent, Eastern Europe. For the period 1995–2005 about half of the migrants from India heading for Europe ended up in the UK. The rest preferred other EU countries, primarily Germany and Italy, which accounted for 18 and 12% of Indian migrants respectively. During the period under review, there was an increase, albeit slowly, in the number of Indians moving to Belgium and Sweden. Approximately 1,000 settlers per year settled in France, where the Indian community, which by the mid-2000s was about 65,000 people, largely consisted of ethnic Indians from Madagascar, the Seychelles, Reunion and Mauritius. For a better understanding of the reasons for the intensification of migration flows from India and other countries culturally related to this country, it is worth recalling the policy deliberately pursued by a number of European governments, the meaning of which was to invite skilled and relatively inexpensive labor from the “largest democracy in the world”. Thus, the temporary “green card” migration initiative that operated in Germany from 2000 to 2005 was initially focused on attracting Indian information technology specialists. In Italy, the Indian community was formed from those who initially entered the Apennines illegally, and subsequently received legal grounds for staying in the country. The vast majority of Indian migrants in Italy are from Punjab, working on dairy farms and other agricultural sectors. The development of information technology and related industrial clusters in India, the high-quality professional training of graduates from Indian institutes of technology - these and other factors predetermined the interest of the United States, Western Europe, and Australia in attracting skilled labor from India. Already in 2000, at least one third of migrants in the field of information technology in the UK represented India. In 2000–2004 more than 245 thousand migrants of this profession settled in the USA. In this kind of "migration competition" India was second only to Mexico, China and the Philippines. In the UK, in October 2004, a program was adopted to "naturalize" successful Indian students (as well as representatives of other Commonwealth countries) in the specialties: physical sciences, mathematics and engineering. The naturalization program has become an additional source of attraction to the United Kingdom of future specialists in the field of natural sciences and exact sciences from India, Pakistan, Bangladesh, Sri Lanka and Nepal. At the same time, this program has become a tool for managed migration to the UK. This practice is followed by the United States, Canada, Australia, New Zealand, Ireland, as well as France, Germany and the Netherlands. Demand for foreign labor with a high share of added intellectual value is ultimately determined by the characteristics of the socio-demographic structure of the population of Western European countries. The rapid “aging” of the workforce in the countries of the historical “core” of the current EU encourages the governing bodies of this organization to use such tools to attract future workers in the “knowledge economy” as educational fairs. At the same time, the use of foreign “intellectual production proletarians” is conceived as the provision of appropriate services without staying in a Western European country on a permanent basis. The movement of human capital from India and South Asian countries to Western Europe, in the understanding of local elites, has a twofold goal: 1) to increase the competitiveness of Western European economies in the world economy and at the same time 2) to deprive the countries of the South Asian region of independence in choosing national models for the development of the information technology industry. There are also restrictions even for this type of migration: the EU authorities are seriously afraid that the massive import of labor from India and other (not only South Asian) countries with a high share of added intellectual value may in the future undermine the reproduction of national scientific schools in Western European countries employed by developments in the field of information technology and their application in the economy. Finally, a group of political factors is of no small importance in the formation of the migration policy of the EU countries, in particular, dissatisfaction with the “substratum of other civilizations” in the Western European cultural environment on the part of forces supporting national populism. A significant proportion of Pakistani migrants to the UK originate from the Mirpur district in Azad Kashmir (area now under Pakistani control). The county has a long history of emigration. So, people from Mirpur worked as stokers on British ships, whose home ports were Bombay and Karachi. Subsequently, in the late 19th and early 20th centuries, some of them settled in the United Kingdom. Post-war Pakistani migrants in the British Isles took jobs in the textile factories of Lancashire, Yorkshire, Manchester and Bradford, in the car factories of the West Midlands and its largest city of Birmingham, filled the light industry development zones in cities such as Luton and Slough. Among other groups of migrants from Pakistan, it is customary to single out Punjabis who settled mainly in Glasgow, Birmingham and Southall, an area of west London that is often called “little Punjab”. The main migration flows from Bangladesh to the British Isles occurred in the first half of the 1970s. They were a reaction to civil unrest in the newly formed state and affected primarily the Sylhet region in the north-east of the country, located directly near the Bangladeshi-Indian border. Initially, Bangladeshi migrants were employed in steel mills and textile mills throughout the UK, but after the closure of these enterprises due to the economic crisis, Bangladeshi migrants rushed into small businesses, primarily in tailoring and catering, including restaurant business. Many people from Bangladesh actively joined the network of Indian restaurants, which was rapidly developing in those years, and subsequently took over a significant part of it. The first migration flow from the relatively developed Sri Lanka (before 1972 - Ceylon) to the UK, modest in size, falls on the 1960s-1970s. Migrants arriving from the former colony were employed in the UK National Health Service, as well as in other areas of the economy where white-collar workers work, becoming employees, administrators, managers, etc. For the most part, the migrants who arrived in the British Isles were from wealthy families and well-educated. They quickly found a use for their abilities in the United Kingdom. The second wave of Sri Lankan migration to the UK occurred in the 80s and was a product of the civil war that swept the island at that time. A significant number of wealthy Sri Lankan Tamils sought refuge in the former metropolis. The migrants of the second wave were not as well-born as their predecessors, however, like many refugees to the West, they did not belong to the "lower classes" of society. Sri Lankans are employed in the traditional segment of the service sector: in shops and restaurants, and some of them even managed to open their own business. CONSEQUENCES OF THE MIGRATION CRISIS OF 2015 Significant adjustments to the intensity of the movement of people from the territories of the “global South” to the space of the “historical North” were introduced by “truncated globalization” (which further exacerbated the contradictions between the leaders of the world economy, primarily the United States, Western Europe, Japan, with on the one hand, and the rest on the other). It gave rise to both active (“passionary” anti-globalization movements and projects) and passive (intensification of migration flows towards the original “core” of the EU) response of transitional societies – the main part of the ecumene. It is believed that the main migration “corridors” from transitional societies to industrialized countries will retain their main direction in the future, especially since demographic processes in the “global South” will continue to exert migration pressure on future generations in the coming decades. India (and South Asia in a broad sense) remains the territory of origin of the largest number of international migrants: 17.5 million Indians live abroad. For the countries of South Asia, a region with significant labor surpluses, migration eases labor market strains while contributing to poverty alleviation through remittances. It is therefore not surprising that the countries of the South Asian region remain the largest recipients of remittances in the world: in 2018, in countries such as Pakistan, Sri Lanka and Bangladesh, remittances from abroad exceeded 5% of the GDP of these states. It is also worth noting the factor of internal migration in the countries of South Asia: for the period 2001–2011 the urban population of these countries increased by 130 million people, which became an additional incentive for external migration. The most desirable destination regions for illegal migrants from South Asia are Western Europe, North America and Oceania. Demographers note that South Asian migrants bound for Western Europe are smuggled to their destination mainly through Central Asia and the Russian Federation, but also through the Middle East towards the Western Balkans. Finally, South Asians are driven to move to Western Europe and the Gulf region by the constant risk of natural disasters, which primarily affect Bangladesh, India and Pakistan. Obviously, the most socialized and adapted groups of the urban population of South Asia are ready to change their way of life. As of 2019, the largest migrant groups in the United Kingdom were immigrants from India, Poland and Pakistan. In the UK, France and Germany, there is a positive correlation between the high quality of human capital among migrants and their innovative activity. Migration flows are expected to influence the activation of the forces of national populism in Western Europe. Thus, after the migration crisis of 2015, the influence of the respective parties is rapidly growing, winning back positions from the centrists and social democrats. “People's parties” are becoming more and more successful, uniting various segments of the population, including those who are dissatisfied with the growing influx of “other civilizational substrate” into the countries of Western Europe. Thus, the policy of "traditional" parties contributes to the growth of the influence of the forces of national populism. Traditional parties justify their policy of accepting migrants by the need to integrate the labor market in the face of a growing shortage of skilled labor. According to traditionalists, the integration of the labor market has an inevitable consequence of strengthening the economic viability of society and increasing the viability of its political institutions, as well as the feeling of new arrivals of their belonging to the host society. The problem of socio-economic (as well as cultural) adaptation of migrants in the societies of Western Europe remains acute: in 2017 in the EU, the unemployment rate among migrants was 13.3%, while among the autochthonous population it did not exceed 6.9%. The coronavirus pandemic has made significant adjustments to the intensity of migration flows. As a result of the pandemic, the IMF blog writes, “migration flows suddenly stopped. The Great Lockdown is temporary, but the pandemic could reinforce general sentiments of insularity and disbelief in opening up to the outside world and have a more lasting effect on countries' propensity to accept migrants. Decline in immigration and high unemployment in destination countries will have a negative impact on the situation in its origin countries, especially the poorer ones, which are heavily dependent on the remittances that migrant workers send home”. The costs of migration also include the need to overcome geographical and linguistic barriers. Integration into the economic system of the host country implies a thorough mastery of its language, which is a precondition for the adaptation of migrants in a different cultural and social environment. So, immigrants from Bangladesh adapted well to the Apennine Peninsula because they were able to master the Italian language, which is difficult for the inhabitants of South Asia. As the Italians believe, people from Bangladesh are more industrious and less pretentious than Indians, and are ready to work in the most adverse conditions. Finally, migration from Bangladesh is economically beneficial for Italians: migrants with skills in light industry are welcome “guests” in the Apennines, since they make up a significant part of the staff of textile enterprises that manufacture products with the “Made in Italy” identification label especially valued by foreigners. Other dangers await the settlers. It is worth remembering that migrants to the West often find themselves in a “poverty trap” due to insufficient funds to pay the costs associated with migration. Nevertheless, experts believe that a one percentage point increase in migrant influx relative to total employment increases output by almost 1% by the fifth year of the resettlement in a new place. The desire of South Asians to move to Western Europe may be due to the fact that in the case of immigration to countries with emerging markets and transition societies, such a positive impact of labor productivity growth is not observed, primarily due to the difficulties of adapting to the conditions of local markets of underdeveloped countries. Migration can also create problems in the area of income distribution in the host society, since in some segments of the labor market, local workers (or people from Eastern and Central Europe who have already settled down in Western Europe) may suffer material damage, at least temporarily. Modern migration and migration policy in Western European countries continue to be influenced by the experience of previous decades. Thus, post-war migration to Western Europe from the former colonies was structured both by centuries of experience in moving along the route of the colony-mother country, and by a significant demand for relatively inexpensive labor for the needs of modernizing the economies of Western European countries after World War II. And some former colonial powers, such as the Kingdom of the Netherlands, were engaged in the movement of labor from their eastern possessions (Indonesia) to South America (Suriname). Historical memory is also invisibly present in the migration policy of France. So, in the 30s, almost a third of the population of this country was in the status of migrants, mainly they were immigrants from the countries of Southern Europe. Memories of the past, coupled with the migratory consequences of imperial existence, gave rise to the phenomenon of anti-immigrant political parties. The growth of the influence of the forces of anti-migrant populism was already observed in the 90s. Then the “National Front” quickly gained influence. As if responding to the challenge of anti-migrant populism, the right-wing government headed by E. Balladur is taking tough measures to limit the migration flow to the maximum and minimize emigration for political reasons. Subsequently, migration reforms were somewhat relaxed, but entry into France was strictly controlled, and the labor market was tightly regulated. The authorities of another colonial empire, Great Britain, acted in approximately the same way, pursuing a liberal line in relation to highly qualified migrants and implementing strict restrictive measures against refugees for political reasons. When assessing the prospects for resettlement of immigrants from India and other South Asian countries to Western European countries, it is necessary to take into account the EU factor, which has become a central element in building a new migration space in the unity of institutional rules for the movement of migrants and patterns of movement of peoples in the vastness of this integration association. It is important to keep in mind that migration is not a long-term solution to the demographic problems of the developed countries of Europe. It is assumed that most EU members, with the exception of France, Ireland and the United Kingdom, are doomed to a serious reduction in working-age populations in the coming decades. In addition, according to experts, labor markets in the EU countries are more inert and less flexible in relation to changing circumstances than in the US. Potential resettlers have to reckon with growing migration concerns in the EU's leading countries. At the same time, the attitude of receiving countries towards migration varies from country to country. Thus, in the countries of Southern Europe (Spain, Greece, Portugal), a “permissive” political culture that does not condemn migration is still influential. It is no coincidence that almost half of the migrants who have arrived in the EU since 2000 began their journey to Europe from Spain. However, even in Spain, new arrivals are viewed by public opinion not only as a socio-economic challenge, but also as a threat to cultural and ethnic identity. Since the early 1990s, the UK has been implementing a policy aimed at limiting the number of refugees and migrants as much as possible. Sometimes the authorities of the United Kingdom resort to frankly everyday motivation for their anti-migration actions, referring to the aggravation of the housing problem and the growth of social tension in London and southeast England. Nevertheless, the UK remains one of the preferred destinations for migration to Western Europe. Moreover, the very policy of the Western European states remains contradictory. On the one hand, the desire to appease public opinion results in uncompromising rhetoric against irregular migration. On the other hand, the desire to attract the skilled labor force necessary for the economy dictates an emphasis on the temporary nature of migration, which does not imply the granting of citizenship or residence permits. Nevertheless, since 2002, the number of people entering the EU has been an impressive figure - from 1.5 million to 2 million people. In other words, the conflict between the principles of the functioning of the nation-state and the guiding principles of multiculturalism defended by the settlers (as a method of managing interethnic relations in the host society) is becoming an integral part of the political development of many European countries. From now on, the confrontation between the principles of assimilation and multiculturalism becomes the axis of the entire socio-political development of the West. Until recently, multiculturalism had a strong influence on the attitude towards migrants in the Scandinavian countries, while assimilation has become clear in Greece, Austria, Poland, and Hungary. However, within the EU, the “multicultural consensus” is being increasingly tested for strength, in particular in Sweden. Similar trends are observed in the UK, France and the Netherlands. The sheer number of migrants can sometimes be misleading. Thus, the largest number of immigrants is recorded in large countries (Germany, France, Spain and the United Kingdom), while their highest proportions are noted in small states (Austria, Denmark, the Netherlands and Switzerland), which has an inevitable projection on the sphere of political relations. In addition, many countries do not keep statistics on the religious affiliation of the population, which is done in the name of the sacred principles of secularism. However, the situation is starting to change. Thus, in the UK in 2001, they began to take into account the confessional identity of the population, primarily to control migration flows from India and South Asia. At the same time, in the censuses in France and Germany, religious affiliation is not yet recorded. By the ratio of the principles of multiculturalism and assimilation, it is customary to single out several groups of European states. States that do not officially recognize the fact of multiculturalism (Germany, France, Greece, Denmark, Austria, Portugal, Finland, Ireland). At the same time, Italy, Finland, Germany, and Ireland practice bilingualism in relation to compact national minorities that have been living in these countries since ancient times. This principle does not apply to migrants. States that have delegated “linguistic powers” to several languages (Spain, Switzerland, Belgium). The envisaged status for French and Flemish in Belgium and the similar legal status for Catalan and Basque in Spain are intended to stop separatist tendencies in these societies and do not apply to the linguistic means of communication of migrants. States where multiculturalism has historically existed (United Kingdom, comprising England, Scotland, Wales and Northern Ireland), but its principles do not apply to migrants. States with a detailed policy towards migrants on a secular basis (Sweden, Norway), which is subjected to extensive criticism by various socio-political forces. States that initially accepted multiculturalism but subsequently rejected it (Netherlands). On the one hand, in Amsterdam and Rotterdam, the largest centers of multiculturalism, special services for helping migrants have been preserved. On the other hand, the main socio-political forces of the country and the parties expressing their interests are strongly opposed to further external migration, and not only from the “global South”. The attitude towards the principles of assimilation and multiculturalism is also manifested in the life attitudes and practical activities of various social forces. Thus, liberals and social democrats prefer the discourse of multiculturalism, while conservatives present themselves as the guardians of the values of the nation-state, Christian ethics and national culture. However, the above dichotomy acquires important clarifying characteristics and nuances when the analysis program includes the contradictory position of trade unions, on the one hand, belonging to the left side of the political spectrum, and on the other hand, forced by the logic of internal political development to counteract the migration of foreign labor and the adaptation of migrants in the host country. The attitude towards migration of the business community, conservative in its cultural orientations and attitudes, and at the same time interested in the import of foreign labor as a factor in “compensating” the insufficient demographic potential of an “aging society” and an instrument of economic growth within a particular Western European country, is also distinguished by a considerable originality. The initial unfriendly reaction of the local population to the new arrivals was dictated by fears of an exclusively economic nature, that is, the unwillingness to financially support migrants. Settlers were not then seen as a threat to national culture and national identity. However, as refugees settled in a new place, their families increased, religious buildings were built, and European politics were actively involved, the attitude of Europeans towards migrants began to change. The “clash of civilizations” (SP Huntington) in Europe intensified. The “racial riots” of 1958 in Great Britain can be considered the historical starting point for the escalation of conflicts on a civilizational basis. In this country, most migrants had the status of subjects of the British Empire, which definitely facilitated their entry into the arena of political life. Race remained at the heart of the issue of multiculturalism in the UK until at least the late 1990s. At first, no serious significance was attached to the factor of religion as a fundamentally different model of behavior in Western Europe. The spread of Islamist radicalism and terrorism, rooted, as some politicians now argue, in the Islamic value system, has become a kind of watershed. The essence of their ideas boils down to the fact that Islam is allegedly in a state of “permanent war” with the West in general and with Christianity and democracy in particular. This kind of sentiment is supported by a part of the Western European press, which regularly publishes anti-Islamic stories coming from the Middle East and Central Asia. Shifts in the positions of political parties in Western European countries on migration issues can be summarized as follows:  - there is a strengthening of the motives of national culture, the principles of assimilation and loyalty to European political values; - control over migration processes is being tightened, including increased attention to political refugees;  - the “horizontal” interaction of the migration authorities of the interested European countries in the field of control over the movement of foreigners to the EU countries is being strengthened;  - there is an actual refusal of the political elites of Western Europe from the principles of multiculturalism, as well as from the concept of "universal values";  - attempts are being made to introduce “rational” (that is, deliberately complicated) concepts of migration policy into the life of the EU countries;  - organizational resources and political powers of organizations supervising migration processes are increasing.  Such steps by the Western European elites, which do not formally abolish the principles of racial equality and the practice of religious rites by migrants, actually exclude the further development of the principles of multiculturalism. The situation of migrants is also complicated by the unwillingness of orthodox Muslim activists to compromise with the authorities of the host country in the sphere of religious rites, which undermines the position of supporters of multiculturalism in Western Europe. In the current conditions, militant opponents of multiculturalism are turning for support not only to Western European lumpen and outcasts, but also to a significant part of the middle class and anti-migrant parties that advocate Christian values. For their part, members of the Muslim community believe that the "war against terror" in the West, started in 2001, has escalated into a "war against Islam." In the smaller EU countries, fears of being “absorbed” by a foreign culture are constantly fueling radical, anti-immigrant sentiments.  It can be assumed that the events of the beginning of this century (September 11, 2001, the wars in Afghanistan and Iraq, terrorist attacks in the countries of Western and Southern Europe, etc.), as well as the European migration crisis of 2015–2016 laid the foundation for shifts in the public consciousness of the population of the EU leaders that are unfavorable for migrants. The dominance of multiculturalism was replaced by the idea of the nation-state as a community bound by the unity of interests and the norms of Christian culture. At present, in the broad sections of the population of Western Europe, the idea of the ongoing erosion of the fundamental principles of the life of society, which undermines its integrity, is being strengthened. In the current reality, even highly educated migrants are beginning to be seen as a threat to the national unity of society. Such mindsets are constantly fueled by the systemic economic crisis, which calls into question the once stable notions of multiculturalism as a force capable of simultaneously ensuring the prosperity and security of Western society. CURRENT TRENDS IN MIGRATION FROM SOUTH ASIA TO THE EU The migration crisis of 2015–2016 turned the problem of migration into a central political issue in the internal life of the leading Western European countries. In the new conditions, socio-political forces and parties that advocate tough restrictive measures against the influx of migrants of other cultures into the EU receive more and more significant support in the new conditions. However, the resettlement of immigrants from South Asian countries to Western Europe continues, which is confirmed by the example of the Netherlands and Italy. Migration from India and other South Asian countries to these two countries is mostly “productive” in nature: for the Netherlands, an influx of quality labor in the information technology sector is important, while Italy needs a “demographic dividend” in the agro-industrial complex. In the Netherlands, where there is a need for qualified personnel for a rapidly growing information technology cluster, educated migrants from India have benefited from the liberalization of migration policy in important segments of the economy. True, in this country, a kind of Damocles sword is suspended over the problem of migration: the murder of film director Theo van Gogh in 2004 by a native of North Africa stimulated the growth of anti-migrant sentiment in the Netherlands, which traditionally had a reputation as a “home of tolerance”. Note that the need for skilled workers in the Netherlands is higher than the EU average (by 10%). Here, as in other countries of Western Europe (primarily in the UK), expat Indians represent the most dynamically growing group of migrants. In the Netherlands, this community includes workers with the necessary professional training in the fields of information technology, consulting services, engineering, and enterprise personnel management. Significant Indian migration to the Netherlands began in the 1980s. By the beginning of the 2010s, about 22 thousand Indians lived in the country (compared to 9 thousand in 1996). The Kingdom attracts Indian migrants, first of all, with a favorable living environment, a high standard of living, the widespread use of the English language in the country, a tolerant attitude towards foreigners, etc.  Young educated Indians find themselves in the Netherlands in several ways. In addition to the traditional recruitment practices of Dutch companies, the factor of expanding the activities of Indian companies in the kingdom is becoming increasingly important. Thus, currently more than 200 companies from India, mainly from the information technology sector, are active in this country. It should be taken into account that the information technology sector, on the one hand, is a powerful driving force for economic growth in India, and on the other hand, this segment of the national economy accounts for more than 45% of all exports of services from India. Another way of delivering Indian labor to the Netherlands is the activity of transnational companies (TNCs) operating in the country, interested in attracting from India the profile workforce of the required quality. The reluctance of some Dutch people to perform certain types of activities in the information technology segment also plays a role. In this case, English-speaking and law-abiding Indians are perhaps the best candidates for high-paying positions in this sector. In other words, the Netherlands attracts skilled, expensive labor to the country, the price of which (as of the beginning of 2019) starts at 4.5 thousand euros per month and 3.2 thousand euros per month for people under 30 years old. In turn, the Italian economy is experiencing a need to increase the volume of dairy production, which opens up opportunities for the Indian labor force, primarily from the northern state of Punjab. Many migrants from India arrived in the Apennine peninsula without an accurate understanding of the nature of the Italian labor market and the peculiarities of Italian society. Some migrants have joined families of relatives who have already arrived in the EU. Arriving in the Apennines, Indian settlers from the Punjab countryside quickly adapted to northern Italy, an industrial zone that lacks quality labor for the agricultural sector. However, this was more a happy coincidence than the result of the successful functioning of the labor market due to the competent intervention of Italian government departments. Indian migrants have recently turned their attention to Italy. Thus, in 2003, the total number of Indian migrants to the Apennine Peninsula was fixed at around 35.5 thousand people, while by 2018 it had more than quadrupled to 151.7 thousand peoplef. As a result, India has now moved from 10th to 6th place in the list of the main “suppliers” of migrants to the EU countries (and to 5th place among non-EU countries). The configuration of the main concentrations of Indian immigrants to Italy has also become somewhat different. If in 2003 the Indians settled unevenly in the central subregions of northern Italy and in Rome, then at present the contours of settlement have become more dispersed: the Indians live mainly in ten provinces, and their largest concentration is in Brescia (14 thousand people per 200 thousand of the local population). Unlike the Netherlands, migration to Italy is often carried out on an unplanned basis - as a result of a situational shortage of labor in a particular segment of the labor market or as a situational reaction of the Italian migration system to migration flows from non-Western societies. It should be noted that in Italy the majority of Indians are engaged in low-skilled labor outside the agro-industrial complex, in particular in industry. In terms of the share of employment in this segment of the national economy, immigrants from India do not stand out among migrants who came from non-Western societies. The agricultural sector, being the area of activity of 28.6% (2016) of migrants, remains the main area for the application of labor skills for Indian migrants (24.1% of the total labor force from outside the EU countries). Even among self-employed workers who came from countries outside the EU, the share of Indians (7% in 2016) has increased almost sixfold since 2007. It should be noted that agriculture is a relatively small and ever-shrinking segment of the Italian economy, accounting for no more than 2% of the country's GDP and in which wages are only half of the total level in the national economy. However, when assessing the potential of the agro-industrial complex, nuances are important. Thus, with the declining role of agriculture, agricultural production in Lombardy, Emilia-Romagna and Veneto tends to increase - not least due to the hard work of Indian immigrants. The dynamic dynamics of development in these regions is shown by dairy production. An illustrative example is Cremona (population - about 75 thousand people), the administrative center of the Italian province of the same name. The resettlement of Indians began in the first half of the 90s with the use of tourist visas. Dairy production in the region was affected by the technological modernization of this sector, which began in the 60s and sharply reduced the demand for labor in Italian agriculture. However, the reduction in the supply of labor in the dairy sector was so significant that it was necessary to attract skilled labor from abroad, and this was a historic opportunity for hardworking Punjabis. A particularly significant contribution of Indian migrants was to the preservation of the cheese industry in the province of Cremona. In other words, the traditions of working on the ground were in demand in the north of Italy, where climatic conditions and temperature conditions almost perfectly match those of the Punjabi. Finally, the hard work of the Indians, their willingness to work on weekends and holidays, as well as overtime, are invariably noted by Italian employers. However, the interest of Indians to work in Italy has its own practical reasons. On the one hand, overtime work allows you to earn up to 3 thousand euros per month, receiving part of the payment “in an envelope” (a procedure common in Italy). Thus, the total income increases, which allows not only to send part of the proceeds to Punjab, but also to invest in the future - to invest savings in various sectors of the Italian economy. On the other hand, living on farms at work allows Indians to avoid the vicissitudes of the housing market in Italy, including discrimination against newcomers. In addition, employers highly appreciate the role of family ties among Indians as a stimulant of productive work. It is significant that employers have a positive attitude towards such qualities of Indians as internal balance, punctuality in the performance of official duties, enthusiasm for work, and note their lower predisposition to conflicts (both with the employer and with colleagues), which favorably distinguishes Indians from, for example, Egyptians and Moroccans. However, it should be taken into account that the Punjabis are a historically formed community of high-quality labor force. Their qualifications are highly valued far beyond the borders of India, whose national economy clearly lacks professionally trained workers capable of performing modern production operations. European migration crisis in 2015–2016 made significant adjustments both to the routes of movement of immigrants, and to the intensity of the human flows themselves from the “global South” to the “historical North”. India and other countries of South Asia remain one of the main sources of migration activity in the world. The examples of the Netherlands and Italy show that there is a “demographic dividend” in the South Asia region that can be used to benefit economic growth and development in industrialized countries. Both the Dutch and the Italians use the services of India's competitive populations. This experience, perhaps, should be used by Russia, which is in need of importing a “demographic dividend”. However, it is advisable to remember that the Indian authorities, conducting relevant negotiations with the Russian leadership, offer labor with low qualification characteristics for export. Defending national interests in such a specific area of bilateral relations will contribute to a better understanding by the Indian side of our real needs in the import of human capital and will confirm Russia's serious attitude towards multidisciplinary cooperation with the "largest democracy in the world." 

Diplomacy
Flags of China, Uzbekistan, Kyrgyzstan, Turkmenistan, Tajikistan, and Kazakhstan in one frame

China and Central Asia: a new path to joint development

by Shiri Shiriev

Another important event on the international agenda was the Second Forum of Think Tanks "China + five countries of Central Asia", organized by: the Institute of Russia, Eastern Europe and Central Asia of the CASS, the Kazakhstan Institute for Strategic Studies under the President of the Republic of Kazakhstan, the National Institute for Strategic Studies under the President of the Kyrgyz Republic Republic, Center for Strategic Studies under the President of the Republic of Tajikistan, Institute of International Relations of the Ministry of Foreign Affairs of Turkmenistan, Institute for Strategic and Interregional Studies under the President of the Republic of Uzbekistan. The connecting link for all forum participants was the Chinese Academy of Social Sciences (CASS) with the support of the Institute of Russia, Eastern Europe and Central Asia of the CASS, the Secretariat of the Council of High-Level Think Tanks of the CASS and the All-China Association for the Study of Russia, Eastern Europe and Central Asia. The two-day program of the forum, which was held in a hybrid mode with a central communication platform in Beijing, included speeches of the heads of the above-mentioned structures, diplomatic missions, foreign ministers, the Secretary General of the Shanghai Cooperation Organization, who considered the most important issues on the “agenda” dedicated to the search for new ways and formats for joint development. The experts focused on various topical aspects, presenting their vision of how China's relations with each of the states of Central Asia and the region as a whole should develop at the present stage. As for our country, the rector of the Institute of International Relations of the Ministry of Foreign Affairs of Turkmenistan, Djumamurad Gurbangeldiyev, spoke about the state and prospects of Turkmen-Chinese cooperation, in particular, noting that the peaceful foreign policy successfully pursued under the leadership of President Serdar Berdimuhamedov, gaining momentum, contributes to the achievement of new frontiers in the system of international relations by Turkmenistan. In the modern era, the whole world respects the legal status of Turkmenistan's neutrality with great respect. Among the priority areas of the peace-loving policy and diplomacy implemented under the leadership of the head of state, a special role is given to relations with the states of the Asia-Pacific region. The People's Republic of China is one of the friendly partner states of Turkmenistan. The Turkmen and Chinese people are connected by historical, spiritual and cultural ties that originate from the depths of centuries. These common historical roots, the bonds of friendship that go deep into history, form the basis of the Turkmen-Chinese interstate cooperation, in which a special place is given to interaction in the scientific and educational sphere. An important role in the formation of new approaches of the parties to topical issues of international relations and cooperation between the states of the region with China is played by the accumulated experience in this area and the First Forum of Experts of Analytical Centers "China + Five Central Asian Countries" held in November 2021. The broad horizons for the development of partnership that are currently opening in accordance with the realities of modernity form new areas of cooperation between Turkmenistan and China. This is clear evidence of the success of our country's foreign policy strategy. The head of the Higher School of Diplomacy of Turkmenistan also focused on the fact that Hero-Arkadag, in his speech at the China + Five Central Asian Countries Summit held in January 2022, emphasized that it is the heads of states of Central Asia who are widely promoting strategically important proposals and initiatives for issues of world politics. In this context, it was emphasized that Central Asia is a region that attracts the attention of the whole world due to its huge natural resources and advantageous geographical location. In the system of international relations, the importance of the Central Asian region is growing due to the presence of large reserves, especially energy resources, favorable geopolitical and geo-economic advantages. At the end of the 20th century, the number of states interested in including the countries of Central Asia in the orbit of cooperation increased. This is confirmed by the fact that in the last 20 years the phrase "Central Asia +" has become widely used in political terminology. And the People's Republic of China, one of the first states that showed interest in this format, has the largest economy in the world, a great influential force in world geopolitics. The head of the Turkmen university, noting the features of the main directions of China's policy, emphasized that the foreign policy of the Celestial Empire, aimed at becoming a developed state of the world and based on ancient Chinese principles, implies the interest of this country in increasing influence in the world through cooperation. In supporting the international initiatives of the Central Asian countries aimed at ensuring peace, security and sustainable development in the region, the political assistance of China, which is a permanent member of the UN Security Council, is very necessary. The states of Central Asia are cooperating in the field of consolidating efforts in the field of security and countering terrorism with the Shanghai Cooperation Organization, established at the initiative of China. The speech also noted that the partnership of the countries of Central Asia with the People's Republic of China in the effective implementation of the new philosophy of the Hero-Arkadag "Dialogue is a guarantee of peace" in international life, aimed at eliminating the mutual distrust that has spread today in international relations, was of particular importance. It is no coincidence that energy is the key vector of the partnership between China + the five countries of Central Asia. As you know, a powerful Chinese economy requires a significant part of its energy capacities to be imported from outside. China attaches particular importance to Central Asia in providing its rapidly developing economy with guaranteed energy sources. In this context, a great success of Turkmen and at the same time Chinese diplomacy is the Turkmenistan-China gas pipeline project, built on the initiative of Hero-Arkadag in a very short time - just over two years - has become another clear evidence of Turkmenistan's commitment to the principle of using its energy resources for the benefit of all mankind. The development of the transport sector is also important. If China stands at the origins of the creation of the Great Silk Road, then Turkmenistan is its heart, the driving force. Within the framework of cooperation in the "China + five countries of Central Asia" format, given the new geopolitical, geo-economic reality of the III millennium, great importance is attached to the revival of the Great Silk Road. The project of the Hero-Arkadag "Revival of the Great Silk Road", designed to give a powerful impetus to the economic development of Eurasia, is closely interconnected in its philosophy and geo-economic content with the all-China project "One Belt - One Road". The already implemented and ongoing multilateral transport and transit projects coincide with the interests of the China + five countries of Central Asia interaction format. Continuing the topic related to the “China + five countries of Central Asia” format as a factor of strategic and regional stability, ensuring the sustainable development of friendly states in the new conditions, I would like to recall that at the beginning of the 2000s, many similar platforms for interaction appeared and took shape in the world. Nevertheless, in my opinion, as time and the realities of life have shown, today the China + Five Countries of Central Asia Project is one of the most famous, authoritative, multilateral formats with great prospects for development. And this is natural and logical, since the ties between the peoples of the Central Asian region and China have a long history. In the process of their long communication, a huge and unique experience of interaction, good neighborliness, exchange of knowledge and achievements in all areas of human life was accumulated. The Great Silk Road passed through the territory of Central Asia from China, which, by developing trade relations between countries, already then demonstrated the possibility of maintaining an atmosphere of calm and stability to the world, including in the territory of present-day Central Asia. And today we can say with full confidence that it was the reliance on this outstanding heritage, the continuity of historical destinies, that was embodied when the countries of the region, having gained independence, resumed active all-round relations with the People's Republic of China. Without a doubt, the current cooperation of all the countries of the region has a noticeable constructive impact on the provision of global peace and stability. It is based on the closeness and coincidence of approaches to fundamental issues on the global agenda. Together we stand for equality and justice in international affairs, respect for territorial integrity and non-interference in the affairs of sovereign states, for the implementation of the Sustainable Development Goals, we support the measures taken by the world community to effectively counter international terrorism, extremism and other challenges. Not so long ago, the states of the region celebrated the 30th anniversary of diplomatic relations with China. 30 years of mutual trust, friendship and close cooperation have shown that by adhering to the basic principles of mutual respect, good neighborliness, friendship, mutual assistance and mutual benefit, China and the countries of Central Asia have been able to build healthy and effective interstate relations of a new type. Today, the world is undergoing changes not seen in a century. The structure of international politics and economics is undergoing profound changes and needs to be adjusted. Geopolitical conflicts, disordered global governance create new challenges for development both globally and regionally. Under these conditions, the presence of objective mutual interests of the Central Asian countries and China in line with the China + Five Central Asian countries partnership format on a practical basis opens up additional opportunities for increasing the pace of effective cooperation. Using their huge potential, the countries of this alliance set a course for the modernization of the mechanism of mutual cooperation in the format "China + five countries of Central Asia". It from the moment of its appearance as a specific body for the comprehensive rapprochement of the Central Asian countries, has been and remains an important factor in the stable development of the region. Further cooperation within its framework will improve the well-being of the peoples and significantly raise the standard of living. I am sure that all the states of the region, using their authority and established cooperation mechanisms, will be able to make an important joint contribution to establishing a new agenda of peace and trust in international affairs, reducing tension, de-escalating conflicts, moving to dialogue and negotiation methods for resolving disputes and contradictions based on the UN Charter.

Diplomacy
Taiwan Naional soldiers in parade

What’s at Stake in Upcoming Taiwan Election

by June Teufel Dreyer

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