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    COVID-19 and Populism: A Bad Combination for Europe’s Banks

    As Germany takes over the EU’s rotating presidency, Chancellor Angela Merkel noted that the bloc is facing a triple challenge: the coronavirus pandemic — in retreat but still requiring constant vigilance — the EU’s steepest-ever economic downturn and political demons waiting in the wings, including the specter of populism. With the pandemic somewhat under control, European policymakers’ focus is shifting toward the knock-on effects of months of lockdown.

    Economies in Central, Eastern and Southeast Europe (CESEE) are in a particularly precarious situation, as a number of factors, from bad debt to populist legislation, are cramping the ability of the banking sector —which performs a vital role in stabilizing the economy through loans, payment holidays and other forms of financial support to local businesses in times of crisis  — to withstand a potential economic downturn.

    Bad Loans on the Rise

    A troubling report recently released by the Vienna Initiative (created during the 2008 financial crisis to support emerging Europe’s financial sector) has indicated that CESEE banks are facing a wave of bad loans, or non-performing loans (NPL), caused by the COVID-19 pandemic that could last past 2021. The issue of bad debt is by no means limited to CESEE countries, but the problem is exacerbated by populist political decisions in many nations in the region.

    European banking regulators had previously estimated that EU banks had built up adequate buffers to withstand a certain number of bad loans, with “strong capital and liquidity buffers” that should allow them to “withstand the potential credit risk losses.” But many banks in the CESEE region, operating in more volatile economies and with their reserves already whittled away by populist measures, are uniquely vulnerable if hit by too many NPLs.

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    At the heart of the problem is the fact that an excess of NPLs can drain banks’ capital reserves, making them reliant on support from governments and central banks. If the regulators and politicians don’t then put the necessary measures in place to support banks, the entire economy could be in danger of collapsing.

    Lenders in countries including Hungary, Czech Republic, Croatia, Slovakia and Bulgaria have sought reassurance from national authorities in recent months that they will receive the necessary protections should restrictive COVID-19 measures last much longer, particularly if the continent is hit by a second wave of the virus before a vaccine or an effective treatment is found. At present, it is unclear whether governments across Europe will be willing to continue with the same level of support packages to businesses and employees. 

    It’s not just a matter of renewing special coronavirus provisions. In return for providing additional financial support to businesses, lenders understandably expect reciprocal measures from governments and central banks. These include favorable tax measures, or the relaxation of excessive levies, so that banks are able to maintain their reserve levels, a lowering of countercyclical capital buffers and a guarantee of emergency financial support from central banks if necessary.

    Populist Measures Exacerbate Financial Strain

    In the wake of COVID-19, banking sector outlooks have already been revised to negative in several countries including Poland, Hungary, the Czech Republic and Croatia. These problems are in danger of being intensified by populist political decisions in many CESEE countries, where governments have a tendency to see punitive measures on banks as an easy way of shoring up popular support.

    In particular, many CESEE countries’ financial sectors are still suffering from 2015 decisions to convert loans taken out in Swiss francs into loans denominated in the euro or the local currency. The conversions came in response to a sudden surge in value of the Swiss franc, which had previously allowed lenders to offer low-interest loans. The forced conversions benefited borrowers but left the country’s banks to pick up the tab, making it difficult for them to build up capital buffers.

    While some countries which carried out the forced loan conversions, like Hungary, at least provided lenders with euros from the central bank to ease the blow, others, such as Croatia, left banks to shoulder the full loss. Croatia’s loans conversion, pushed through quickly ahead of the 2015 parliamentary elections, was applied retroactively, foisting a bill of roughly €1 billion on the country’s banks, many of which are subsidiaries of financial institutions from elsewhere in the EU. A pending court ruling on whether or not Croatian borrowers who had taken out Swiss franc loans could apply for further compensation could impose another €2.6 billion in losses on the banks at the worst possible time.

    Nor is the controversial loans conversion the only policy sapping CESEE banks’ capital reserves. As part of its coronavirus recovery plan, the Hungarian government announced a special tax on both banks and multinational retailers back in April. The additional banking tax was worth HUF 55 billion ($176 million). Prime Minister Viktor Orban had already announced the toughest COVID-19 measures of any central or eastern European country, including a suspension of all loan payments until the end of the year. The move ignored a call from Hungary’s OTP Bank for a reduction in taxes to help banks deal with the pandemic’s fallout.

    A number of other countries in the region, including the Czech Republic and Romania — though Romania later eliminated the levy — have raised banking taxes in recent years, making it harder for the financial sectors in these emerging economies to respond to the crisis and has left it in a more precarious position should the effects of COVID-19 continue into 2021.

    The CESEE region’s financial sector suffered greatly in the wake of the 2008-09 global financial crisis, and much work has been done in the intervening years to shield the sector from future downturns. The Vienna Initiative report, however, makes it clear that the region’s banks still face headwinds due to the COVID-19 crisis. Hopefully, policymakers across CESEE will take heed of the report’s findings and realize that trying to scapegoat banks in these uncertain times will only make them more vulnerable, leaving them ill-equipped to deal with the onslaught of loan defaults expected over the next 12 months.

    The views expressed in this article are the author’s own and do not necessarily reflect Fair Observer’s editorial policy. More

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    Getting Qatar’s Tourism Sector Back on Track After COVID-19

    COVID-19 has undoubtedly had a massive impact on the global tourism industry, perhaps none more so than in Europe, where many countries are considering or have already reopened resorts to limit the damage. While Qatar’s tourism sector remains small by comparison, there can be no denying that it has also taken a hit. However, this is not the first time the country has confronted an existential challenge to this increasingly important economic activity.

    Tourism makes a formidable contribution to the global economy. According to the World Travel and Tourism Council, in 2019 the sector accounted for 10.3% of global GDP and approximately 330 million jobs. Unsurprisingly, COVID-19 has been nothing short of a disaster for this vital sector. Thanks to lockdowns and other precautionary measures, this past April and May witnessed a near 100% reduction in tourist arrivals worldwide.

    The United Nations World Tourism Organization (UNWTO) warns that COVID-19 might yet result in the loss of 1.1 billion tourist arrivals, $1.2 trillion in revenues and 120 million jobs. Hotels are already feeling the pinch, with the Intercontinental Group expecting revenue per available room — a commonly used indicator — to have dropped by 80% in April. Other hotel chains have made equally gloomy predictions.

    Trouble Ahead

    Though not as developed as major destinations in Europe, North America and further afield, Qatar’s tourist sector has also suffered under COVID-19. Statistics for March indicate a 78% reduction in tourist arrivals, with the figures for April and May expected to be even worse. With lockdown measures still firmly in place, it remains to be seen how many of the country’s restaurants and local tourist facilities will emerge from the pandemic unscathed.

    Qatar’s hosting of the FIFA World Cup 2022 nevertheless underlines why its tourist industry needs to make as full a recovery as possible from COVID-19. It is expected that millions of fans will visit the country for the world’s top football tournament. Most will require accommodation and entertainment beyond the stadiums.

    In keeping with governments around the world, Qatar has initiated general support and subsidized loan programs to mitigate the impact of the coronavirus on business revenues. The country can also draw inspiration from a number of international efforts to restart the global tourism sector. These include 23 actionable recommendations developed by the UNWTO to mitigate the impact of COVID-19, accelerate recovery through national policies and build resilience through lessons learned.

    In a similar vein, the European Union has developed a comprehensive framework for rejuvenating its tourism sector. This calls for a recovery strategy and a common approach to lifting travel restrictions between member states. Additional measures include the development of detailed health and safety measures for hospitality establishments and the transportation of passengers and personnel to and from tourist destinations. In the case of the latter, Greece has already issued a list of protocols for traveling around its network of islands by ferry.

    When it comes to small states, Singapore has developed two initiatives that might be of interest to Qatar. The Marketing Partnership Program aims to improve cooperation and encourage synergies between stakeholders in the city state’s tourist industry. To assist, the program makes funds available for marketing costs and collaboration between businesses. From there, the Stories Content Fund encourages local and global content creators to create compelling and positive stories about Singapore’s tourist sector.

    Been Here Before

    These are by no means the only initiatives Qatar might look to when reawakening its currently dormant tourist sector. There is also a case for taking the best ideas from as many global efforts as possible to develop a hybrid action plan with two interconnected phases.

    Focusing on the short term, phase one is concerned with mitigating the impact of COVID-19 and restarting tourism activities following the easing of travel and social distancing measures. Taking a cue from Singapore, Qatar could develop public relations activities to highlight that the country is a safe and interesting place to visit. This could be supported by tourism vouchers for Qatar Airways stopover passengers, an initiative that resonates with the EU’s travel vouchers program.

    Phase two is focused on strategic and structural issues. As per the mandate of the Qatar National Tourism Council, the country should accelerate efforts to develop a clear vision for its tourist industry. Inspiration could be drawn from Australia’s bid to become “the most desirable and memorable destination on earth” or Morocco’s practical goal to make tourism an engine of development. Either way, Qatar needs to factor agility and resilience into its future tourism sector. This entails working with stakeholders to identify challenges as well as opportunities to diversify the country’s tourism offerings. Doing so will help shield Qatar from the volatility of limited market penetration.

    It should also be remembered that Qatar has prior experience of navigating its tourism industry through difficult times. In 2016, almost 3 million tourists visited the country, the majority coming from fellow Gulf Cooperation Council and Arab states. Tourist arrivals have nevertheless diminished in recent years due to the reduction of visitors from the states involved in the ongoing blockade of Qatar. According to the Qatar Planning and Statistics Authority, arrivals from the Arab world declined by 76% between 2016 and 2019.

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    Qatar has responded with a strategy to diversify tourist arrivals and new tourism markets. In the immediate aftermath of the blockade, nationals from 80 countries were granted visa-free entry into the country. The development of the Qatar National Museum and other tourist attractions was also expedited. High-profile marketing campaigns such as Qatar Airways’ “A World like Never Before” continue to highlight the diversity of the country’s tourist sector.

    Such initiatives undoubtedly contributed to a 38% increase in tourist arrivals from other parts of the world between 2016 and 2019. Additionally, hotel bookings rose from 4.97 million nights in 2016 to 5.38 million in 2018, suggesting that the average length of stay in Qatar has increased. The country’s museums also benefited from a fresh approach to attracting tourists, with visits rising from 477,000 in 2016 to 597,000 just two years later. According to the UNWTO, Qatar’s tourism sector generated $5.6 billion in 2018 despite the negative impact of the blockade.

    Qatar’s response to the blockade offers key insights into how tourism can get back on track once the worst of COVID-19 is over. Tourism sectors around the world will need to act quickly and decisively upon the resumption of business as usual. Well-executed, creative public relations campaigns should highlight what makes a country, resort or attraction a compelling place to visit. Diversity, safety and resilience will also be at the heart of tomorrow’s tourism strategies.

    The views expressed in this article are the author’s own and do not necessarily reflect Fair Observer’s editorial policy. More

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    The Mount of Autocrats

    Donald Trump would dearly like to add his face to Mount Rushmore as the fifth presidential musketeer. His fireworks-and-fury extravaganza on July 3 was the next best thing. Trump’s dystopian speech was almost beside the point. Much more important was the photo op of his smirking face next to Abraham Lincoln’s.

    More fitting, however, would be to carve Trump’s face into a different Rushmore altogether. This one would be located in a more appropriate badlands, like Mount Hermon in Syria near the border with Israel. There, Trump’s visage would join those of his fellow autocrats, Vladimir Putin and Xi Jinping. To honor the illiberal locals, the stony countenances of Bashar al-Assad and Benjamin Netanyahu would make it a cozy quintet.

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    Let’s be frank: Thomas Jefferson and George Washington are not the company that Trump keeps, despite his “America First” pretensions. His ideological compatriots are to be found in other countries: Jair Bolsonaro of Brazil, Narendra Modi of India, Rodrigo Duterte of the Philippines, Daniel Ortega of Nicaragua, Viktor Orban of Hungary and so on. Alas, this global Rushmore of autocrats is becoming as crowded as a football team pressed together for a selfie.

    But Putin and Xi stand out from the rest. They get pride of place because of their long records of authoritarian policies and the sheer brazenness of their recent power grabs. By comparison, Trump is the arrogant newcomer who may well not last the season, an impulsive sprinter in the marathon of geopolitics. If things go badly for Team Trump in November, America will suddenly be busy air-brushing 45 out of history and gratefully chiseling his face out of the global Rushmore. Putin and Xi, however, are in it for the long haul.

    Leader for Life

    At the end of June, Russia held a referendum on a raft of constitutional changes that President Putin proposed earlier in the year. In front of Russian voters were over 200 proposed amendments. No wonder the authorities gave Russians a full week to vote. They should have provided mandatory seminars on constitutional law as well.

    Of course, the Russian government wasn’t looking to stimulate a wide-ranging discussion of governance. The Russian parliament had already approved the changes. Putin simply wanted Russian voters to rubber-stamp his nationalist-conservative remaking of his country.

    At the same time, a poor turnout would not have been a good look. To guarantee what the Kremlin’s spokesman described as a “triumphant referendum on confidence” in Putin, workplaces pressured their employees to vote and the government distributed lottery prizes. Some people managed to vote more than once. On top of that, widespread fraud was necessary to achieve the preordained positive outcome.

    Instead of voting on each of the amendments, Russians had to approve or disapprove the whole package. Among the constitutional changes were declarations that marriage is only between a man and a woman, that Russians believe in God and that the Russian Constitution takes precedence over international law. Several measures increased executive power over the ministries and the judiciary. A few sops were thrown to Putin’s core constituencies, like pensioners. Who was going to vote against God or retirees?

    But the jewel in the crown was the amendment that allows Putin to run for the presidency two more times. Given his systematic suppression of the opposition, up to and including assassination, Putin will likely be in office until he’s 84 years old. That gives him plenty of time to, depending on your perspective, make Russia great again or make Russia into Putin, Inc.

    The Russian president does not dream of world domination. He has regional ambitions at best. Yet these ambitions have brought Russia into conflict with the United States over Ukraine, Syria, even outer space. And then there’s the perennial friction over Afghanistan. Much has been made in the US press about Putin offering the Taliban bounties for US and coalition soldiers. It’s ugly stuff, but no uglier than what the United States was doing back in the 1980s.

    Did you think that all the US money going to the mujahideen was to cultivate opium poppies, run madrasas and plan someday to bite the hand that fed them? The US government was giving the Afghan “freedom fighters” guns and funds to kill Soviet soldiers, nearly 15,000 of whom died over the course of the war. The Russians have been far less effective. At most, the Taliban have killed 18 US soldiers since the beginning of 2019, with perhaps a couple tied to the bounty program.

    Still, it is expected that a US president would protest such a direct targeting of US soldiers even if he has no intention to retaliate. Instead, Trump has claimed that Putin’s bounty program is a hoax. “The Russia Bounty story is just another made up by Fake News tale that is told only to damage me and the Republican Party,” Trump tweeted.

    Knowing how sensitive the US president and the public are to the death of America soldiers overseas, Putin couldn’t resist raising the stakes in Afghanistan and making US withdrawal that much more certain. Taking the United States out of the equation — reducing the transatlantic alliance, edging US troops out of the Middle East, applauding Washington’s exit from various international organizations — provides Russia with greater maneuvering room to consolidate power in the Eurasian space.

    Trump has dismissed pretty much every unsavory Kremlin act as a hoax, from US election interference to assassinations of critics overseas. Trump cares little about Ukraine, has been lukewarm if not hostile toward US sanctions against Moscow, and has consistently attempted to bring Russia back into the G8. Yet he has also undermined the most important mechanism of engagement with Russia, namely arms control treaties.

    President Trump’s servile approach to Putin and disengaged approach to Russia is the exact opposite of the kind of principled engagement policy that Washington should be constructing. The United States should be identifying common interests with Russia over nuclear weapons, climate, regional ceasefires, reviving the Iran nuclear deal — and, at the same time, criticizing Russian conduct that violates international norms.

    Territory Grab

    China’s Xi Jinping has already made himself leader for life, and he didn’t need to go to the pretense of a referendum on constitutional changes. In 2018, the National People’s Congress simply removed the two-term limit on the presidency and boom: Xi can be on top ‘til he drops. Forget about collective leadership within the party. And certainly forget about some kind of evolution toward democracy. Under President Xi, China has returned to the one-man rule of the Mao period.

    So, while Putin was busy securing his future this past weekend, Xi focused instead on securing China’s future as an integrated, politically homogeneous entity. In other words, Xi moved on Hong Kong.

    Hong Kong once had great economic value for Beijing as a gateway to the global economy. Now that China has all the access to the global economy that it needs and then some, Hong Kong has only symbolic value, as a former colonial territory returned to the Chinese nation in 1997. To the extent that Hong Kong remains an enclave of free-thinkers who take potshots at the Communist Party, Beijing will step by step deprive it of democracy.

    On June 30, a new national security law went into effect in Hong Kong. “The new law names four offences: secession, subversion, terrorism, and collusion with foreign forces,” Matt Ho writes in the South China Morning Post. “It also laid out new law enforcement powers and established government agencies responsible for national security. Conviction under the law includes sentences of life in prison.”

    The protests that have roiled Hong Kong for the past many months, from Beijing’s point of view, violate the national security law in all four categories. So, violators may now face very long prison sentences indeed, and police have already arrested a number of people accused of violating the new law. The new law extends to virtually all aspects of society, including the schools, which now must “harmonize” their teaching with the party line in Beijing.

    What’s happening in Hong Kong, however, is still a dilute version of the crackdown taking place on the mainland. This week, the authorities in Beijing arrested Xu Zhangrun, a law professor and prominent critic of Xi. He joins other detainees, like real-estate mogul Ren Zhiqiang, who was linked to an article calling Xi a “clown with no clothes on who was still determined to play emperor” and Xu Zhiyong, who called on Xi to resign for his handling of the coronavirus crisis.

    Meanwhile, Beijing’s treatment of Muslims in Xinjiang province amounts to collective punishment: more than a million consigned to “reeducation camps,” children separated from their families, forced sterilization. Uighur exiles have charged China with genocide and war crimes before the International Criminal Court.

    Like Putin, Xi has aligned himself with a conservative nationalism that appeals to a large portion of the population. Unlike Putin, the Chinese leader doesn’t have to worry about approval ratings or periodic elections. He is also sitting on a far-larger economy, much greater foreign currency reserves, and the means to construct an illiberal internationalism to replace the Washington consensus that has prevailed for several decades. Moreover, there are no political alternatives on the horizon in China that could challenge Xi or his particular fusion of capitalism and nationalism.

    Trump has pursued the same kind of unprincipled engagement with China as he has with Russia: flattery of the king, indifference toward human rights and a focus on profit. Again, principled engagement requires working with China on points of common concern while pushing back against its human rights violations. Of course, that’s not going to happen under the human rights violation that currently occupies the White House.

    And Trump Makes Three

    Trump aspires to become a leader for life like his buddies Putin and Xi, as he has “joked” on numerous occasions. He has similarly attacked the mainstays of a democratic society — the free press, independent judges, inspectors general. He has embraced the same nationalist-conservative cultural policies. And he has branded his opponents as enemies of the people. In his Rushmore speech on July 3, Trump lashed out against:

    “… a new far-left fascism that demands absolute allegiance. If you do not speak its language, perform its rituals, recite its mantras, and follow its commandments, then you will be censored, banished, blacklisted, persecuted, and punished. It’s not going to happen to us. Make no mistake: this left-wing cultural revolution is designed to overthrow the American Revolution. In so doing, they would destroy the very civilization that rescued billions from poverty, disease, violence, and hunger, and that lifted humanity to new heights of achievement, discovery, and progress.”

    He went on to describe his crackdown on protesters, his opposition to “liberal Democrats,” his efforts to root out opposition in schools, newsrooms and “even our corporate boardrooms.” Like Putin, he sang the praises of the American family and religious values. He described an American people that stood with him and the Rushmore Four and against all those who have exercised their constitutional rights of speech and assembly. You’d never know from the president’s diatribe that protesters were trying to overthrow not the American Revolution but the remnants of the Confederacy.

    Trump’s supporters have taken to heart the president’s attacks on America’s “enemies.” Since the protests around George Floyd’s killing began in May, there have been at least 50 cases of cars ramming into demonstrators, a favorite tactic used by white supremacists. There have been over 400 reports of press freedom violations. T. Greg Doucette, a “never Trump” conservative lawyer, has collected over 700 videos of police misconduct, usually violent, toward peaceful demonstrators.

    As I’ve written, there is no left-wing “cultural revolution” sweeping the United States. It is Donald Trump who is hoping to unleash a cultural revolution carried out by a mob of violent backlashers who revere the Confederate flag, white supremacy and the Mussolini-like president who looks out upon all the American carnage from his perch on the global Rushmore of autocrats.

    *[This article was originally published by FPIF.]

    The views expressed in this article are the author’s own and do not necessarily reflect Fair Observer’s editorial policy. More

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    A New Hysteria Around History in the US

    In its report on US President Donald Trump’s Fourth of July weekend in the shadow of Mount Rushmore, the Associated Press characterized his speech as “a direct appeal to disaffected white voters four months before Election Day.”

    While Trump himself “zeroed in on the desecration by some protesters of monuments and statues across the country that honor those who have benefited from slavery, including some past presidents,” the AP notes that Kristi Noem, a Republican governor, “echoed Trump’s attacks against his opponents who ‘are trying to wipe away the lessons of history.’”

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    Americans suddenly seem obsessed with history, which used to be dismissed simply as “the past” and subjected to the proverb, “It’s no use crying over spilt milk.” So, what could the phrase “the lessons of history” possibly mean to a contemporary American?

    Here is today’s 3D definition:

    Lessons of history:

    1) From a historian’s point of view, the nuanced conclusions that can be reached about the possible meaning of events in the past, including the unintended consequences of decisions made by historical persons or institutions 
    2) For the layman in the United States, the simplistic chauvinistic anecdotes and bullet points dispensed in schools, especially when the content derives from books published in Texas

    Contextual Note

    As a prominent actor in what will soon be called an epoch of history — the Trump era — the president is living proof that obtaining a degree from Wharton doesn’t require a solid appreciation for or understanding of history. According to John Bolton, the former national security adviser, Trump may still be ignorant of the fact that the United Kingdom acquired nuclear weapons nearly 70 years ago and that Finland declared independence from Russia more than a century ago. Perhaps those two events took place in the too distant past to pique his curiosity or have so little bearing on today’s geopolitics that they merit forgetting.

    Bolton is not the only commentator to maintain that Trump’s grasp of history or of geopolitical reality is less than impeccable. But just as the killing of George Floyd in police custody has sparked a vast movement of people seeking to reevaluate some salient aspects of US history, Trump has decided that though he may not understand it, he has the duty to defend “history.” He appears to see it as a damsel in distress, bound by the villain to railroad tracks as the locomotive steams toward the captive in the kind of cliffhanger Trump probably remembers from his exposure to the history of cinema.

    Trump is right. History has long been manhandled in the US. And this is the moment to honor it. After all, the history of the now-globalized human race has taken a highly visible turn at least since 2001, with a notable acceleration since Trump was elected in 2016. Given the stakes, Americans should finally not just invest in history’s defense but inject it with the life it deserves. 

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    To defend history, the best place to begin is to examine the methodology of historians. The word itself is borrowed from French, where the noun histoire signifies both “history” and “story.” History as a discipline can justifiably be described as an imperfect version of the most accurate and complete story we can honestly tell about the past after having examined all the available evidence.” In some sense — on the storytelling side — it’s a discipline closer to literature than science. But Trump refuses to see it as a discipline, preferring to treat history as political advertising. Advertising also tells a story, though no reasonable person would call it a discipline.

    Why is this important? Because the citizens of such a comparatively youthful nation have never really known what to do with history, especially their own history. Among the myths that Americans are taught in school is the idea that the American Revolution sealed the definitive rejection by a forward-looking people of the stale, sclerotic traditions of Europe, whose nations were the prisoners of their history. America was all about creating a new civilization, not adulating the past. With such a vision, even the idea of the past became permanently irrelevant to a people on the move.

    Trump complains that the protest movement is no more than “a merciless campaign to wipe out our history, defame our heroes, erase our values and indoctrinate our children.” The opposite is of course true. History has already been wiped out of Americans’ field of awareness. History has actors, not heroes. Some stand out symbolically as either heroes or villains, at least for the sake of storytelling.

    Concerning the erasing of values, the famed “Puritan values” the US has traditionally been proud of were long ago replaced by the pursuit of wealth and fame, the two values that have guided Trump’s own life story. As for indoctrinating the children, some of us have an idea of what indoctrination looks like. Many of us were taught at school that Christopher Columbus’ contemporaries believed that the world was flat (false) and that a teenage George Washington, after castrating his father (i.e., chopping down his “favorite” cherry tree), proudly proclaimed, “I cannot tell a lie” (ridiculous).

    Speaking as if preparing his political supporters for battle, Trump declared that “just as patriots did in centuries past, the American people will stand in their way, and we will win, and win quickly.” Time is, after all, money, and short episodes of history are easier to commit to memory. 

    “[W]e will not be tyrannized, we will not be demeaned, we will not be intimidated by bad, evil people,” Trump added, imagining the mustachioed villains clad in black (with skin color to match) who have conspired to bind the damsel to the rails.

    Historical Note

    Donald Trump didn’t just complain. In a bold gesture, he announced an executive order to create a “National Garden of American Heroes” with his own list of obligatory denizens of the garden, the criterion being that they must be “historically significant Americans.” 

    The problem with this approach is that if history is reduced to stories about heroes, the damsel history would remain bound to the tracks. Heroes of various kinds do exist, but because they are deemed heroic, their stories take us outside of history into something closer to dramatic fiction. Worse, heroes can only be understood as champions of some collective endeavor — a cause, venture, belief or even an art form — that students of history need to come to grips with before they can assess the relative virtues and contributions of the heroes. There is little doubt, however, that the idea of celebrating heroes as role models would appeal to the host of a former reality-TV show called “Celebrity Apprentice.”

    Asawin Suebsaeng and Allison Quinn at The Daily Beast describe Trump’s drift as nothing less than a call for a new civil war. But the conflicts Trump typically cites tend to be the war of independence and World War II. The Daily Beast tells us that Trump repeatedly found ways “to compare himself and his supporters to Patriots during the American Revolution—and protesters to members of the British Army.” 

    But Trump then shifted his allusion to the 20th century and World War II when he declared “there is a new far-left fascism that demands absolute allegiance.” He even glanced at China’s Chairman Mao Zedong: “[T]his left-wing cultural revolution is designed to overthrow the American Revolution.” Heroes are important, but so are recognized villains.

    Trump’s understanding of history resembles a jigsaw puzzle in a tempest where the wind has blown away most of the pieces. Interpreting the scattered ones that are left requires an imagination guided by whatever fantasies happen to be tumbling around in Trump’s unconscious. To be fair, that pretty much corresponds to the way the lessons of history tend to be written by totalitarian regimes. In the end, Trump may be far more normal than people give him credit for.

    *[In the age of Oscar Wilde and Mark Twain, another American wit, the journalist Ambrose Bierce, produced a series of satirical definitions of commonly used terms, throwing light on their hidden meanings in real discourse. Bierce eventually collected and published them as a book, The Devil’s Dictionary, in 1911. We have shamelessly appropriated his title in the interest of continuing his wholesome pedagogical effort to enlighten generations of readers of the news. Click here to read more of The Daily Devil’s Dictionary on Fair Observer.]

    The views expressed in this article are the author’s own and do not necessarily reflect Fair Observer’s editorial policy. More

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    Han and Hindu Nationalism Come Face to Face

    As dusk fell on June 15, a bloody clash broke out between Chinese and Indian soldiers in the Galwan Valley on the northwest China-India border, where a tributary of the Indus flows westward from Aksai Chin to Ladakh. In line with China’s recent expansionist policy elsewhere, its military had been pushing forward into territory claimed by both nations, altering facts on the ground. In line with India’s status quo policy to maintain its territorial integrity, its troops moved against Chinese intrusion, and a clash ensued. It was a throwback to the past. No one used guns, grenades or bombs. Men fought hand to hand, with fence posts, clubs wrapped in barbed wire, rods studded with nails, knives and even bayonets.

    The fight took place on craggy cliffs at icy Himalayan heights. At least 20 Indian soldiers died, including a colonel. China has not revealed its casualties, but reliable sources estimate them to be higher than India’s. Satellite images show that China had been building bunkers, tents and storage units for military hardware near the site of the clash. The Chinese struck the first blow at a time and place of their choosing. They were surprised by the ferocity of the Indian response. Clashes between troops of both countries have occurred regularly along the contested border, but this is the first deadly one for 45 years.

    For thousands of years, empires based in China and India did not clash. The mighty Himalayas acted as an insurmountable barrier. The bitter cold and low oxygen levels of the highest mountains in the world were too high even for a Hannibal or a Napoleon. Chinese armies that conquered Tibet were already at the limits of their supply lines, and the Himalayas were more forbidding than the Great Wall of China even for the dreaded Mongol hordes. For the Indian armies, the fabled riches of spice-laden south India were more alluring than the barren, frosty peaks of the north. Hence, many independent Himalayan kingdoms survived until relatively recently. The Buddhist Kingdom of Bhutan is the last of the Mohicans and still acts as a buffer state between two Asian giants.

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    Tensions between China and India are a recent phenomenon. Both are new postcolonial states. The former is heir to the expansionist Qing Empire and is a revisionist power. It seeks to rewrite the rigged rules of the game of the international order. European powers and the United States forced this order down Chinese gullets when it was going through decline, disorder and disgrace. India is the child of the British Empire that seeks to preserve the status quo. It no longer identifies with the Mughal Empire, Britain’s predecessor.

    Hindu India now sees the Mughals as Muslim oppressors who smashed temples, killed spiritual leaders, made Farsi the language of their empire and looked to Central Asia or the Middle East for inspiration. Today, India’s official language is English. Its laws, political systems and bureaucratic structures are legacies of the British, not of earlier empires. It has inherited the British conflict with the Qing.

    At its essence, tensions between the two Asian giants boil down to one simple fact: India seeks to preserve British boundaries, while China seeks to reassert Qing ones. To make sense of what is going on and what might happen next, we have no choice but to go back into the past.

    String of Pearls

    China and India share a 3,440-kilometer border. Each claims territory controlled by the other. This territorial rivalry has led to only one war, in distant 1962, when Jawaharlal Nehru was India’s prime minister, Zhou Enlai was Nehru’s Chinese counterpart, and Mao Zedong was the chairman of the Chinese Communist Party (CCP). India lost that war ignominiously.

    Since then, India and China have been uncomfortable neighbors. In 1963, Pakistan ceded Shaksgam Valley to China and commenced a relationship that has strengthened over time. Starting from 1969, Richard Nixon and Henry Kissinger used Islamabad as a backdoor to Beijing. In July 1971, Kissinger made a secret trip to China while on a visit to Pakistan. Islamabad was receptive to American blandishments, while New Delhi started the Non-Aligned Movement (NAM) at the height of the Cold War. Its Marxist-tinged view of Western imperialism clashed with the American Cold War view of international relations. Naturally, the US sided with Pakistan against India when the two countries fought later that year.

    Things have come a long way since 1971. The Soviet Union has fallen. China has become the workshop of the world. Pakistan is perceived more as the hiding place for Osama bin Laden than an entryway to Beijing. In 1991, India began a political, economic and philosophical transformation. Until recently, it was progressively rejecting statism. In its own gradualist manner, India has become less fearful of American neocolonialism and evolved into a more confident world power. India and the US have now made up. Both increasingly fear the rise of the Middle Kingdom.

    In fact, India has real fears of a two-front war. What happens if Pakistan and China gang up against it? There are also concerns about the “string of pearls” China has built around India — ports in the Indian Ocean in Myanmar, Bangladesh, Sri Lanka and Pakistan. New Delhi fears that Beijing might use its string to garotte India. Then there is another tiny little matter: In remote Tibet, looming high above the Indian plains, lies the source of the Brahmaputra, the Indus and other important rivers. Chinese dams could pose an existential risk to hundreds of millions living downstream.

    Just as India fears China, the Middle Kingdom fears an alliance of India, Japan, Australia and the US — the Quadrilateral Security Dialogue (QSD), also known as the Quad. The Chinese still face what then-president Hu Jintao termed “the Malacca Dilemma” in 2003. About 80% of their oil goes through the Strait of Malacca. A visit to this strait is shocking for a geostrategist: At any given time, dozens of ships are visible, funneling their way for 900 kilometers through a body of water that at its narrowest point is no more than 2 kilometers wide.

    If geography is destiny, then China and India seem fated to clash. After all, how can two rising giants with competing strategic interests fail to clash? Graham Allison of the Harvard Kennedy School has popularized the term “the Thucydides Trap.” As per Allison’s argument, the probability of bloodshed runs high when a rising power confronts a ruling power. Allison posited that the US and China might be facing the Thucydides Trap. In the Asian context, China and India might be walking into the very same trap.

    History Matters, Especially for Dragons and Elephants

    If we were to view the world through Samuel Huntington’s prism, both China and India have laid claim over Tibet’s soul. After the Tibetan Empire collapsed by the 9th century, Lhasa frequently fell under Beijing’s yoke. Both the Mongol Yuan and the Manchu Qing dynasties exercised suzerainty over Tibet. However, Tibet has always been connected to India culturally. The founder of Tibetan Buddhism arrived from Nalanda, the legendary university of the fertile Gangetic plains. Nalanda no longer exists — the Turks sacked it. Buddhism is a religion practiced in certain regions and limited sections of Indian society. Yet Tibetan philosophy has more in common with its Indian counterpart than with the philosophies of Confucius, Mencius or Lao Tzu.

    Indian philosophy might have found fertile ground in the barren Tibetan Plateau, but it was China that took charge of this territory. Often confused as a nation-state, the Middle Kingdom was, in more ways than one, an empire. In 1998, Nicola Di Cosmo published an iconic paper analyzing Qing colonial administration in Inner Asia. He concluded that “the modern notion of China as a timeless union of many ‘nationalities’” obscures “the tensions and internal contradictions inherent in the process of Chinese empire building.”

    The Qing were Manchus. Like the Mongols, they were outsiders who seized control of Beijing in 1644. A peasant rebellion led by Li Zicheng gave these northern barbarians their chance. They purported to ride in to rescue the Ming and promptly took over. Like previous conquerors, the Qing made enormous efforts to assimilate into Chinese culture, retained Han officials who served the Ming and promoted Confucian values.

    Remembering how they had taken over Beijing, the Qing recognized the threat of a Mongol-Tibetan alliance. They embarked on an empire-building project of territorial expansion, which “was accompanied by military occupation and a new administrative structure.” The empire of the Qing came to comprise thrice the size of the empire of the Ming. Its population grew from about 150 million to over 450 million.

    Mongolia, Central Asia and Tibet were all annexed. In 1720, the Kangxi Emperor sent troops to Lhasa. The Lifan Yuan, the court for the outer provinces of Mongolia, Tibet, Qinghai and Xinjiang, sent two ambans, or frontier specialists, to Lhasa. The powers of the ambans gradually increased through the 18th century, but the Qing ruled Tibet with a light touch.

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    Even as the Qing were expanding, the mighty Mughals were declining. Akbar died in 1605, and his successors did not prove as able. His grandson Shah Jahan took charge in 1628 and is famous for building the Taj Mahal, but it was paid for by oppressive taxation. The English traveler Peter Mundy observed “putrefying corpses of the victims of famine” and paints a sorry picture of the Mughal realm during his journey through the country.

    In 1658, Shah Jahan’s fanatical son, Aurangzeb, killed his brothers and imprisoned his father. He smashed temples, persecuted non-Muslims and triggered widespread rebellion. Until today, Aurangzeb is one of the most hated names in Hindu and Sikh families with children told tales of his cruelty. The last of the mighty Mughals died in 1707, and the empire disintegrated. Just five decades later, Robert Clive won the historic 1757 Battle of Plassey. An expansionist British India replaced a crumbling Mughal India.

    The Many Games and the Great Game

    In Rudyard Kipling’s “Kim,” the eponymous hero of the novel becomes the chela, the Hindi word for disciple, of a Tibetan lama. Together, they wander through dusty plains and the invigorating Himalayas. Indeed, it is the lama who pays for Kim’s education. The former seeks enlightenment while the latter learns the art of espionage, a sine qua non to play a role in the Great Game. The spellbinding yarn of Kim has some basis in reality. Like the Ottomans and the Mughals, the Qing were declining precipitously by the 18th and 19th centuries. Internal disorder and external invasion threatened the dynasty. The Qing military had become pathetic and its mandarins useless. Corruption stalked the land, and the peasants were grossly overtaxed.

    During this period, Warren Hastings, the first governor general of India, dispatched George Bogle to Tibet. The Scottish adventurer met the third Panchen Lama in 1775 and established friendly relations. He purportedly went on to marry a close relative of the lama. Bogle’s mission was not followed up by much. The British had the rest of India to conquer and consolidate. The 1857 uprising and transferring sovereignty from the British East India Company to Queen Victoria put Tibet off their agenda in the 19th century.

    Even as the British kept themselves busy in India, they eyed China. The British thrashed the Middle Kingdom in the First Opium War of 1839-42. The war was fought on the principle of free trade. The British insisted that they have the right to export opium to China. Naturally, they grew poppy in India to make the opium. As spoils of victory, the Chinese ceded Hong Kong to Great Britain to serve as a comptoir to China. The British extracted a hefty indemnity as well. More importantly, they now had the legal right to export opium to the Middle Kingdom — perversely about the only “good” the Chinese seemed willing to buy from the “barbarian” British.

    The Chinese capitulation to British arms demonstrated that the Qing emperor had no clothes. The Taiping Rebellion, with its fanatical local version of Christianity but fundamentally a manifestation of a China in utter disarray and decay, broke out in 1850 and lasted until 1864. Even as this revolt raged, China lost the Second Opium War of 1856-60. Both Britain and France teamed up to carve out the Chinese carcass.  

    It was the era of mercantile imperialism, and the Europeans rivaled with each other even as they cooperated to divide up the hopelessly self-absorbed and utterly sclerotic but potentially lucrative Chinese empire. The Europeans wanted to expand the opium trade to the interior and, of course, more reparations. At home, European leaders justified much of their expansion to their own peoples by demanding freedom to preach Christianity. Sometimes, they were even sincere about advancing the word while planting the flag. In 1860, the two reigning European superpowers, Britain and France, achieved total victory in what The New York Times called a “dashing little campaign.”

    Lord Elgin, the son of the man who took away the Elgin Marbles from Greece and later the viceroy of India, commanded an overwhelming British-French force that involved some Indian troops. When his messenger was killed by the Chinese, the great lord responded in a manner befitting none other than the great Genghis Khan. European troops torched the magnificent Summer Palace to the ground and engaged in an extraordinary orgy of loot. Patriotic Chinese still feel a burning sense of shame about this incident. Many still “resent and distrust” the West.

    Barely had the dust settled on the ruins of the palace when the Dungan Revolt broke out in 1862. This time it was Muslims instead of Christians who struck out against Beijing. Riots broke out between the Hui minority and Han majority in many areas after Taiping rebels invaded the northwest province of Shensi. Ethnic cleansing became par for the course, and the rebellion lasted 15 years. What the scholar Wen-djang Chu wrote in 1958 stands true today: This revolt covered 3,191,680 square kilometers and is still “greatly underestimated.” The surge of Muslim revolts in the far west of China in fact was more responsible for the final collapse of the tottering Qing dynasty than the red-haired barbarians from the West.  

    Ripe for the Picking

    Like the Ottoman Empire, the Qing Empire was ripe for the picking. Internal revolt was the order of the day. Foreign powers sensed their chance. After the Meiji Restoration in 1868, Japan joined the party. The First Sino-Japanese War of 1894-95 ended in calamity for China. Japan’s British-trained navy and Prussian-modeled army crushed the Qing forces, altering the balance of power in East Asia and whetting Japan’s appetite for empire. Now, the land of the rising sun was the rising Asian power.

    Tibet increasingly enjoyed de facto independence after the First Opium War, as China struggled to stay afoot. This was also a time when Tibetans had to deal with invasion from the west, not the east. A new Sikh Empire emerged in the east. Its Dogra generals conquered Kashmir. Zorawar Singh Kahluria, the most dashing of the Dogras, led audacious campaigns in high altitude to conquer Buddhist Ladakh, a tributary of Tibet. 

    Kahluria tried conquering western Tibet but in 1841 ended up with a lance in his chest. The Dogras avenged their general by winning the 1842 Battle of Chushul and then signed a treaty establishing the status quo ante bellum. The Sikh story did not last long — by 1849, the British crushed them. The new masters of India’s northwest gave Kashmir to the Dogras for having stabbed their Sikh overlords in the back. Notably, the Dogras still retained some territory in Tibet, especially in areas holy to the Hindus.

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    The British seemed to reach the limits of their power of expansion to the north of India in the disastrous First Afghan War of 1839-42. The Afghans killed the entire British expeditionary force of 4,500 soldiers and 12,000 camp followers under General Elphinstone. Only one person survived. He was an army doctor who rode into Jalalabad to tell the sorry tale. Despite this disastrous British defeat, the Great Game continued without. Both Britain and Russia continued to expand their influence into Afghanistan. Eventually, the Second Anglo-Afghan War broke out in 1878. From the British point of view, it was an opportunity to avenge the rout of 1842 and contain Russian expansion.

    Now, the theater of the Great Game shifted to Tibet. Ngawang Dorjee, a Russian-born monk, was received by Tsar Nicholas II at St. Petersburg as Tibet’s special envoy in 1901. Naturally, this made the British nervous. In 1904, Colonel Francis Younghusband appeared at the gates of Lhasa with a significant body of troops on a so-called diplomatic mission, designed primarily to forestall Russian inroads to Britain’s sphere of interest extending north from India, Britain’s “crown jewel.” The 13th Dalai Lama, the predecessor to the current one, fled to Mongolia.

    The British did not build upon their success in Lhasa. They did not want an international incident. Tensions in Europe were rising, and Britain was coming to view an alliance with Russia as desirable. Therefore, the British government ignored Younghusband’s Anglo-Tibetan Convention of 1904. Instead, they took the indemnity China offered on Tibet’s behalf and signed an Anglo-Chinese convention in 1906, recognizing Chinese sovereignty over Tibet. A year later, an Anglo-Russian agreement on Tibet affirmed the 1906 accord.

    The European intervention in Tibet provoked a response. After nearly two centuries of ruling with a light touch, the Manchu Qing, even though it was on its last legs, decided to reassert control over Tibet. Ethnic Tibetan areas east of the Yangtze River were put under Beijing’s direct administrative control. They are now a part of Sichuan Province. In 1909-10, an army led by Zhao Erfeng arrived in Lhasa. 

    The 13th Dalai Lama fled to exile again, this time to Darjeeling, a lovely hill station in British India. He developed a close friendship with Sir Charles Bell, the British political officer in the then Himalayan kingdom of Sikkim. It was here that the 13th Dalai Lama organized a military force to win back power. Destiny would smile on him soon. The 1911 Revolution led to the end of the Qing dynasty by 1912. The very next year, the 13th Dalai Lama expelled Chinese troops and officials from Lhasa. He also declared complete self-rule, and Tibet achieved de facto independence. It was to last nearly four decades.

    Han Nationalism Replaces Manchu Empire

    It is important to note that none of the Chinese leaders of the 1911 Revolution accepted Tibetan independence. Yuan Shikai, the man who took over from the Qing, claimed “the Five Races [Han, Tibetan, Manchu, Mongol, Muslim] deeply united into one family” were all part of “the Yellow Church.” Sun Yat-sen, the “father of the revolution,” called for “the creation of a strong Chinese state that would expel the Japanese from Manchuria, the Russians from Mongolia and the British from Tibet.”

    Thanks to the 1911 Revolution, the Han were back in the emperor’s palanquin. The Manchus were out after a 268-year rule. It was time to restore China to its millennial greatness. Regaining control of Tibet became an article of faith. Luckily for the Tibetans, the Chinese disintegrated into yet another civil war and then had to deal with a brutal Japanese invasion. Tibetan elites ran the country the way they deemed fit.

    However, Tibet was unable to gain formal independence. Unlike Sikkim or Bhutan, Tibet did not end up as an Indian protectorate. The British summoned Chinese and Tibetan representatives to Simla, the de facto capital of British India in 1913. After months of discussion, the Simla Convention was signed in July 1914 by Tibet and Britain. China refused to sign this agreement even though it acknowledged Chinese suzerainty over Tibet.

    Like most British treaties, this one was rather advantageous to them. It obtained for British India a vast territory east of Bhutan that now forms the state of Arunachal Pradesh. Tibetans lost Tawang, a large Buddhist monastery they revere greatly. Only in 2008 did the Dalai Lama finally accept Tawang to be a part of India. In 1914, Britain was curiously willing to accept vast territory from Tibet without Chinese approval but was unwilling to recognize Tibet’s independence.

    Such lack of formal recognition came to haunt Tibet, starting on October 1, 1949, when the People’s Republic of China (PRC) was founded. Mao’s communists were good Chinese nationalists and wanted to reunify the disparate parts of China under a strong central government. The Red Army invaded Tibet’s eastern province in October 1950, posing as an army of liberation from Western imperialism. This was roughly as accurate as European claims about 90 years before that Christ must accompany the flag into China. In May 1951, the Dalai Lama signed the Seventeen Point Agreement with the Chinese. For the first time, an agreement formally recognized Chinese sovereignty over Tibet.

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    Initially, the CCP followed the Soviet Union’s nationality system. As Melvyn Goldstein observed in 2004, the communists even “allowed the feudal system, with its serflike peasantry, to persist,” allowing the Dalai Lama to rule with relative autonomy. The CCP officials presented themselves to Tibetans as the “new Chinese,” who were in the country to develop, not exploit. As soon as it had consolidated its power, however, the CCP reverted to its guiding principles. In 1955-56, officials launched socialist land reform in the Kham and Amdo regions of Sichuan and Qinghai provinces. This effectively meant the abolition of private property. Bloody rebellion followed. Starting in 1957, Tibetan refugees streamed into Lhasa. By this time, the Cold War has been defining international relations for over a decade. The US had fought China in Korea from 1950 to 1953. It sensed an opportunity to create a problem for the Chinese.

    The CIA began training and arming Tibetan guerrillas. Despite the fact that monasteries and feudal lords still controlled their estates and serfs in Tibet, an anti-Chinese uprising erupted in March 1959. The Chinese government crushed the Lhasa uprising. The Dalai Lama renounced the Seventeen Point Agreement and wearisomely fled Tibet yet again — to India, where he remains to this day.

    This was a bad time for China. The Great Leap Forward resulted not in progress but in the Great Chinese Famine of 1959-61. As Cormac Ó Gráda wrote in 2015, it was “the greatest famine in recorded history.” Like Joseph Stalin’s first five-year plan of 1928-32, Mao’s forced collectivization resulted in cataclysm. Estimates vary widely but, as per modern demographic analyses, between 20 and 30 million died.

    Han nationalism did not die, however. The more “revolutionary” CCP cadres blamed Mao’s moderation in Tibet for the Dalai Lama’s duplicity. They remembered how his predecessor had also fled to India and plotted to overthrow Chinese rule. They feared an encore. Emulating the Dalai Lama, the CCP abandoned the Seventeen Point Agreement, terminated traditional Tibetan government, confiscated monastic and aristocratic estates and closed down thousands of monasteries. Out went the gradualist policy of accommodation, in came domination by Han CCP apparatchiks promoting class warfare and proletarian solidarity. Under Mao, this was inevitable. Like the laws of physics, Maoist ideology has proven to be totalitarian, inexorable and inescapable over time.

    A Historically Undefined Border

    Just as the CCP is the inheritor of the Qing empire, India is the successor to British India, the jewel in the crown of the once-global British Empire. Neither the British nor the Qing came to an agreement over the border. Once the Qing fell, its successors rejected the Simla Convention of 1914, which the British and the Tibetans agreed upon.

    The British themselves were never clear as to the border. To begin with, W.H. Johnson drew an expansive line in 1865 that included all of Aksai Chin in what was then the princely state of Jammu and Kashmir. In 1873, the British drew a Foreign Office Line, which stands largely forgotten. In 1897, Major-General Sir John Charles Ardagh followed suit. In the light of China waning and Russia waxing, he proposed a boundary line along the crest of the Kunlun Mountains north of the Yarkand River. This line is now known as the Johnson-Ardagh Line.

    Barely was the ink dry on the map, when George Macartney, the consul general at the oasis city of Kashgar in Xinjiang proposed a revised boundary to the Qing in 1899. Lord Elgin, the sacker of the Summer Palace turned viceroy of India, took a fancy to Macartney’s idea. The new border was to run along the Karakoram Mountains, forming a natural boundary. British India and its allies would control the Indus River watershed, while the Chinese would be in charge of the Tarim River watershed. Colonel Sir Claude Maxwell MacDonald, Queen Victoria’s minister in China, authored a diplomatic note proposing the new border to the Chinese. This line is now known as the Macartney-MacDonald Line. Notably, the Qing court never responded to MacDonald’s note.

    After the 1911 Revolution, the British reverted to using the Johnson-Ardagh Line as the border in official documents. However, they did not attempt to establish posts or exercise actual control over Aksai Chin. As if these lines were not confusing enough, the Simla Convention that led to an Anglo-Tibetan agreement forged a new boundary named after Lieutenant Colonel Sir Vincent Arthur Henry McMahon, a swashbuckling multilingual military man-turned-diplomat in charge of the British delegation. This line lay to the east of the Foreign Office Line and the west of the Johnson-Ardagh Line, which India claims as its rightful border on the northwest. Each of these lines matters because choosing one or the other as a reference point might make China or India gain or lose valuable strategic territory.

    McMahon went on to serve in the Middle East as World War I raged. His career ended when the newly formed Soviet Union revealed the secret Anglo-French Sykes-Picot Agreement to carve up the Ottoman Empire. This revelation came when Colonel Thomas Edward Lawrence — the famous Lawrence of Arabia — was promising independence to the Arabs to get them to fight the Turks, and McMahon himself was championing a pro-Arabist policy. His reputation was now tarnished. Therefore, the British quietly dropped references to the McMahon Line with Tibet, which now enjoyed de facto independence. Lhasa even controlled territories such as Tawang that the Simla Convention had deemed a part of India. 

    Only in 1935 did the colonial British government resuscitate the McMahon Line. It feared renewed Chinese interest in Tibet. When Tibetan authorities arrested English botanist Francis Kingdon-Ward for entering the country illegally, the British made their move. In 1937, the Survey of India published a map showing the McMahon Line as the official boundary. As if on cue, Captain Gordon Lightfoot marched to Tawang in 1938 but met fierce Tibetan resistance. For the moment, Tawang remained in Tibetan hands. This changed during World War II. In 1944, James Philip Mills, a noted colonial administrator, took charge of the area south of Tawang.

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    After India became independent in August 1947, Tibet protested British acquisitions. In October 1947, it demanded that India return Ladakh, Sikkim and Darjeeling. It did not. In October 1950, Chinese troops routed Tibetan forces at Chamdo. When India demurred, China brushed aside its protests. This led to a rift in the Indian government. Sardar Vallabhbhai Patel, the deputy prime minister, wrote a letter to Nehru expressing anxiety over “the problem of Tibet.” Patel’s views mattered. He was a close associate and friend of Mahatma Gandhi. Under Patel’s leadership, India had assimilated the more than 500 princely states that comprised 40% of the area of pre-independence India and 22% of its population. It had earned the deputy prime minister the epithet of the “Iron Man of India.”

    A month after the People’s Liberation Army (PLA) invaded Tibet, Nehru categorically declared, “Our maps show that the McMahon Line is our boundary and that is our boundary — map or no map.” With this parliamentary statement on November 20, 1950, the die was cast. In February 1951, Indian troops took over Tawang town and removed the Tibetan administration.

    Line of Actual Control

    Patel saw Chinese action against the Tibetans as “little short of perfidy.” Chinese officials had assured India they would settle the Tibetan question peacefully but had gone back on their word. Patel felt betrayed because India had been the first non-socialist country to recognize the new communist regime and was championing China’s entry into the United Nations. He worried about China as a threat to India’s borders and that it was encouraging communists within the country to foment a revolution. 

    Even at that early stage, India was facing insurgency from armed communist groups, and many in its intelligentsia were seduced by the success of the communist revolutions first in the USSR and then in the PRC. Presciently, Patel warned against “Chinese irredentism and communist imperialism.” He took the view that the Middle Kingdom’s “ideological expansion concealed racial, national or historical claims. Patel recommended a “reconsideration of [India’s] retrenchment plans to the Army in the light of the new threat” as well no longer advocating Chinese entry into the United Nations.

    Nehru disagreed with his older deputy. On November 18, two days before declaring the McMahon Line as the international boundary, the prime minister responded that India could not lose its “sense of perspective and world strategy and give way to unreasoning fears.” The idealistic, anglicized Kashmiri Brahmin and the realpolitik-oriented, earthy member of a Gujarati landowning caste seemed headed for a showdown over China. Patel’s death on December 15, 1950, averted this crisis. From now on, the Nehruvian view occupied the commanding heights of Indian foreign policy.

    In 1954, India published maps showing Aksai Chin as part of the country, setting the Ardagh-Johnson Line as its northwest border with China and adding 37,244 square kilometers to its territory. The Middle Kingdom had never accepted this to be its border and claimed this territory as its own. In 1957, India was incensed to discover that China had built a road through Aksai Chin, connecting Xinjiang to Tibet. China National Highway 219 is a marvel of civil engineering. The Chinese began work on it in 1951 and completed it in 1957. Today, this 1,455-kilometer road runs from Yecheng in Xinjiang to Shiquanhe in Tibet and is known as the Sky Road because it goes through vertigo-inducing elevation of 5,248 meters above sea level. Right from the start, this road had a military purpose and increased India-China tensions.

    To cool down these tensions, Zhou Enlai wrote to Nehru on September 8, 1959, about “the Sino-Indian boundary question.” He argued that the current boundary was a result of British imperialist aggression and was “therefore decidedly illegal.” Zhou declared that the Chinese government “absolutely [did] not recognize the so-called McMahon Line.” He complained that Indian troops were trespassing into Chinese territory and harboring Tibetan rebels. Instead, Zhou proposed maintaining “the long-existing status quo of the border” and resolving the issues step by step over time. This disputed border has come to be called the Line of Actual Control (LAC).

    It is poorly defined. Indian and Chinese troops constantly patrol it and occasionally clash over what neither Beijing nor New Delhi accepts as a legitimate boundary. Writing on June 22, 2020, Lieutenant General P.J.S. Pannu observed that both India and China are still “defending a historically undefined border line.” Both sides still control the territory that the other claims. At stake are thousands of square kilometers of the Himalayas.  

    Realpolitik Versus Romance

    A simple question arises: Why was Nehru so naive about China and communism? In a magisterial piece, M.J. Akbar explains the basis of the Nehruvian view. India’s first prime minister was a passionate anti-imperialist who believed in the solidarity of the subjugated peoples. Very early, he saw India and China as two ancient civilizations emerging as modern nations and acting as harbingers of a more just world. Nehru romanticized not only China but also communism.

    During a 1927 visit to the USSR, he was deeply impressed by Soviet economic policy, which became an exemplar for Nehruvian socialism. Notably, Nehru considered Vladimir Lenin to be the greatest man of action in the 20th century — and the most selfless. In contrast to Patel, Nehru was fascinated by communism and thus blind to its dangers.

    The key to understanding Nehru’s benign view of China comes from his youth. As a student at Cambridge and a barrister in London, he had sought inspiration from thinkers of the Fabian Society. In an age of empires, he felt the pull of the left. In 1927, Nehru attended the International Congress against Colonial Oppression and Imperialism in Brussels. It rightly discussed Britain and presciently warned against American exploitation of Latin America. The conference designated three nations to lead the world out of oppression: China, Mexico and India. 

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    Nehru was a member of the presiding committee and an inaugural speaker. It was a heady experience for this Harrow-educated dreamy-eyed idealist. For most anti-imperialists of the late 19th and the first half of the 20th centuries, communism was the obvious champion for colonized peoples. More importantly, Nehru made some Chinese friends in Brussels. One of them was Soong Ching-ling, the widow of Sun Yat-sen. Soon, Nehru became friends with Chiang Kai-shek, Sun Yat-sen’s successor. Nehru saw China as “India’s sister in ancient history” and closer relations between the two countries as a civilizational imperative. In 1937, he declared September 26 to be China Day. In opposition to Japan’s invasion of China, he called for the boycott of Japanese goods and for donations to support the Chinese war effort. He went on to visit China in August 1939 as Chiang Kai-shek’s guest.

    When Nehru became the head of the interim government before independence in September 1946, the first conference he organized was not on national unity but on Asian relations. It was here that Indian romance would first crash against Chinese reality. When Nehru’s old friend Chiang Kai-shek learned that Tibetan delegates were attending, he threatened to pull China out of the conference. Nehru promised that Tibet’s status would not be raised and instructed Tibetan delegates to hold their tongues.

    Nehru’s generosity to the Chinese soon turned excessive. In 1950, the US offered India China’s permanent seat in the United Nations Security Council. In 1955, the Soviet Union made a similar offer. Nehru spurned both offers because he did not want a break between India and China. In the 1954 Sino-Indian Treaty on Tibet, Nehru agreed to withdraw Indian troops from the country. He also gave away postal, telegraph and telephone facilities that India had operated in Tibet. China gave India precious little in return.

    In 1954, India and China signed the Panchsheel Treaty, which comprised five principles of peaceful coexistence. Zhou Enlai showed up in New Delhi to sign some form of peace treaty and to rally India against a potential American invasion of Vietnam. The slogan “Hindi-Chini bhai-bhai,” which means “Indians and Chinese are brothers,” was in the air. Nehru visited China later that year and was cheered in the streets. It did seem that India and China would lead an Asian resurgence together as per Nehru’s statesmanly vision. Everyone loves a parade.

    Yet trouble was brewing. Noted historian Neville Maxwell records that neither side raised the boundary question. China did not bring it up because it wanted to avoid any discussion about Tibet. India assumed that the “boundary was well-known and beyond dispute, and there could be no question regarding it.” In 1954, its maps showed Aksai Chin as part of Indian territory. As mentioned above, the discovery of the road through Aksai Chin in 1957 and the Dalai Lama’s flight to India in 1959 hardened positions on both sides. India’s romance with China started souring. The first border clash occurred at Longju in August 1959. Nehru’s romance was dead, Patel’s realpolitik was back.

    War and Peace

    In 1959, Zhou proposed maintaining the status quo in his famous letter proposing the LAC. He followed up with a visit to India in 1960 with an offer: China would recognize India’s claim to the 84,000-square-kilometer area that now comprises Arunachal Pradesh despite its historical connections to Tibet if India accepted China’s claim to the 38,000-square-kilometer area of Aksai Chin. Nehru rejected Zhou’s offer.

    In 1961, Nehru took two bold decisions. On November 2, 1961, he kicked off the so-called “forward policy.” Indian troops were to patrol as far forward as possible toward the international border recognized by India. The next month, he ordered troops to liberate Goa after years of diplomacy had failed. Portugal had conquered this coastal state in 1510 and held it for 451 years. Western powers such as the US and the UK condemned Indian action, but African and Asian countries supported it wholeheartedly. Nehru’s stock was flying high.

    In 1962, Nehru continued with his foreign policy. Once inconvenient generals were replaced by pliant ones, he no longer met any opposition from the army high command. Indian troops set up forward posts on the China border, some even north of the McMahon Line. This riled Beijing, and by mid-summer tensions were running high. Domestic criticism of Nehru was rising by the day. Many accused him of being too conciliatory with China. So, Nehru put a key precondition to talks: India’s boundaries were non-negotiable. 

    Yet even as Nehru took what he believed to be a hard line, every Indian forward post was being outmatched by more numerous Chinese garrisons. India’s position was increasingly untenable. China called India’s bluff. After a limited action on October 20, 1962, Chinese troops waited for a few days. Then, between November 15 and 19, they destroyed or broke up every organized Indian force in the disputed areas at key points across a front more than 3,000 meters wide. Then, Beijing announced a unilateral ceasefire on the same terms as Zhou had suggested in 1959.

    The 1962 war is still a source of shame in India. Its troops were ill prepared and lost badly. Nehru made far too many blunders. He first viewed China romantically and gave it a carte blanche. Then, Nehru embarked on an ill-advised forward policy, with insufficient force that left Indian troops exceedingly vulnerable. Perhaps the biggest blunder of all was Nehru’s appointment of Vengalil Krishnan Krishna Menon as defense minister in 1957. 

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    Energetic, eloquent and brilliant, Menon had made a name for himself in London and New York as a passionate advocate for India’s independence, Nehru’s policy of non-alignment and freedom for long-oppressed colonies. Like Nehru, Menon was a great champion of China and was convinced that India’s only threat came from Pakistan. This line of thinking proved to be disastrous. He sidelined outstanding officers like General Kodendera Subayya Thimayya and Field Marshal Sam Manekshaw. Menon shamelessly promoted sycophants like Pran Nath Thapar and Brij Mohan Kaul, both relatives of Nehru. Menon also weakened India’s defense production, which had been the best in Asia when the country won independence in 1947. After India’s defeat along the McMahon Line, Menon resigned but Nehru did not. Like Mao and unlike George Washington, this Harrow and Cambridge man would die on the throne.

    Only five years after the 1962 war, Indian and Chinese troops clashed again at the passes of Nathu La and Cho La connecting Sikkim to Tibet. In 1967, India had increased the number of its mountain divisions, improved equipment and beaten Pakistan in 1965. Indian troops held the higher ground, and China had just embarked on the Cultural Revolution. As a result, China came off worse in this brief battle, bolstering Indian morale. In the 1971 Indo-Pakistani War, China sided with Pakistan. Its support for Pakistan was, and remains, an obvious way to put pressure on India. In 1975, India absorbed the Himalayan kingdom of Sikkim as an Indian state. Soon thereafter, the Chinese ambushed an Indian patrol, killing four soldiers. Those were the last soldiers on either side to die for 45 years — until the evening of June 15, 2020.  

    Starting from 1978, relations between the two countries improved. That year, Atal Bihari Vajpayee, then foreign minister and later prime minister, visited Beijing to reestablish diplomatic ties. China softened its stand on both Sikkim and Bhutan. Tensions flared in 1986 when Indian troops encountered Chinese occupation of Sumdorong Chu Valley. The following year, India created the new state of Arunachal Pradesh, angering Beijing in the process.

    Tensions eased in 1988 when then-Indian Prime Minister Rajiv Gandhi visited China. The two sides established better relations, which improved further after the fall of the Soviet Union in 1991. In 1993, India and China signed a peace and tranquility border agreement. For the next two decades, India and China avoided any major confrontation. In 1996, both sides even agreed not to “conduct blast operations or hunt with guns or explosives within two kilometers from the Line of Actual Control.” Leaders visited each other’s countries, increased trade and signed mutual cooperation agreements. Yet despite 22 rounds of talks, they have failed to settle the boundary question. 

    National Renaissance

    In recent years, confrontations between Chinese and Indian troops have been on the rise. Scuffles, fistfights and stone-throwing often break out between patrolling platoons. Both sides have embarked on infrastructure projects such as roads, tunnels and bunkers along the poorly defined LAC. Each side views the other’s steps as threatening the “correlation of forces” and capabilities. Both sides refuse to accept the other’s measures. This has led to three major confrontations: at Depsang in northern Ladakh in 2013, at Chumar in eastern Ladakh in 2014 and at Doklam on the China-Bhutan border in 2017. Now, in 2020, Indian and Chinese tensions are at their highest since 1962. Two questions arise: Why, and why now?

    China has become more assertive globally since Xi Jinping took charge in 2012. Xi has consolidated power and launched a personality cult reminiscent of Mao. Indeed, he is the son of a Maoist and has dethroned Deng Xiaoping’s more moderate acolytes from the CCP throne. Xi had the rubber stamp congress in Beijing remove term limits for the numerous positions he occupies. He is modernizing the military and adopting a more muscular foreign policy. In 2013, Xi launched the Belt and Road Initiative (BRI) and has invested billions into projects in numerous countries. China is becoming a great power once again. However, for the first time in history, China is seeking to assert its power beyond its traditional borders. 

    In 2018, former Australian prime minister Kevin Rudd gave a lecture at West Point on understanding China’s rise under Xi Jinping. Rudd is a career diplomat, speaks Mandarin and studies China closely. He made a very important point: Xi looks closely at the past for inspiration. Since the very day Xi came to power, he has declared China’s national mission to be guojia fuxing — a national renaissance. This red engineer, an alumnus of the fabled Tsinghua University, has concentrated enormous power in his hands and in his party. The CCP now plays a bigger role in daily life, business and even the military than at any time since perhaps the death of the Great Helmsman in 1976. Xi has “cleaned up” the government and, in the process, eliminated all his political opponents. 

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    Superficially, Xi may appear to be a technocrat. Importantly, however, Xi’s father was aligned with the “left” revolutionary wing of the CCP. This leftist faction opposed the economic and political reforms implemented by Deng Xiaoping and his allies. Xi’s views on the role of the state and the supremacy of the CCP are far closer to his father’s and to Mao’s than to any of his post-Mao predecessors. Additionally, there is the weight of China’s history and culture, despite the CCP’s often murderous efforts to stamp it out. Xi’s views on the role of the state, harmony, and social and personal hierarchy are closer to those of a mandarin or an emperor in the Forbidden City than to reformists like Deng.

    For 40 years following the death of Chairman Mao, all Chinese leaders have moved away from the cult of personality. But, in a touch of hubris, Xi has formally enshrined Xi Jinping Thought in the constitution. Xi is now chairman of everything and the great atheist god of China. In this brave new China, blasphemy does not go unpunished. Those who post seemingly innocuous photos online comparing Xi to Winnie the Pooh find themselves in jail for “creating a negative social impact.” After decades of incremental liberalization, Xi has turned back the clock. He has destroyed any alternative power or authority to that of the CCP. It seems that Xi and the CCP fear that their communist state lacks legitimacy. Also, like all previous Confucian leaders, they believe that the exercise of power by the masses would disturb the harmony of the state and could destroy it.

    The solution, again as with all totalitarian states, is to identify the legitimacy of the regime with that of the nation. Chinese nationalism is now arguably the essential component of CCP ideology. Confucius has been incongruously married to Marx to legitimize a strong, modern, authoritarian hierarchical state. Xi’s CCP subjects people to constant propaganda and consummate censorship.

    In Xi’s and the CCP’s version of the world, China is “encircled” by revanchist imperial powers. Chinese greatness and strength will return by rectifying all the wrongs to China’s borders, and that government and society suffered during the century of humiliation. China has always been the Middle Kingdom, the center of the world, and has to resume its rightful place in it. To do so, China cannot be passive. It must extend its direct influence beyond its borders. This will win Xi the support of China’s population, affirm the leadership of the CCP and assure the stability and increasing strength of his country so that in the coming decade or two China assumes its rightful place as the world’s greatest power.   

    Emperor Xi

    Yet something is not quite right in the realm of Emperor Xi. The domestic security apparatus has a larger budget and employs more people than the PLA. Like the Qing, the CCP worries deeply about separatism, disorder and downfall because it seized and continues to maintain power through the barrel of a gun. It remembers the lesson of 1989, when on the night of June 3, tanks rolled into Tiananmen Square, crushing student protests and massacring some 10,000 pro-democracy protesters to preserve communist rule. In contrast, German and Soviet communists capitulated on November 9, 1989, when millions flocked to the Berlin Wall.

    The specter of communist collapse and Soviet disintegration haunts the CCP to this day. Rudd tells us that the CCP’s top two priorities are to continue its stranglehold on power and maintain the unity of the motherland.

    Under Xi, the CCP has tightened screws on Tibet, Xinjiang and, most recently, Hong Kong. Human Rights Watch tells us that “new regulations in Tibet now criminalize even traditional forms of social action, including community mediation by religious figures.” In Xinjiang, over 1 million people have been detained in China’s infamous “reeducation camps.” They are mainly Uighurs. Under Chinese communism, reeducation is merely a sick totalitarian euphemism for the destruction of Muslim Uighur culture that is seen as a threat to the unity of China. 

    Xi’s CCP has been forcibly “Han-icizing” the entire Uighur population, which simply put is a policy of cultural genocide. As per a recent report by China scholar Adrian Zenz, the Chinese authorities have been forcibly sterilizing Uighur women or fitting them with contraceptive devices. Zenz also calls China’s coercive birth control a “demographic campaign of genocide” against the Uighurs.

    For quite some time, China’s security services have been kidnapping book store owners, journalists, students and other dissenters from Hong Kong. Selling books or sponsoring gatherings or making speeches that the CCP considers threatening to its primacy brings swift and severe retribution. Beijing has passed a security law giving it new powers over Hong Kong. In the name of national security, the CCP can now curb free speech, the right to protest and undermine Hong Kong’s largely independent judiciary. Hong Kong’s autonomous status no longer exists. Winnie the Pooh is no more safe in Hong Kong now than in what used to be called mainland China.  

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    Even as China tightens the screws at home, it is now acting more aggressively abroad. There is a new nationalism in and an excessive prickliness to Xi’s China. The Middle Kingdom now squabbles more with its neighbors. A new “wolf warrior” diplomacy has emerged. It is building artificial islands and air bases in the South China Sea. It is making all sorts of territorial claims and alienating its neighbors. China now challenges more openly and aggressively the legitimacy of international agreements, boundaries or conventions when they do not serve its national objectives. Beijing denounces them as unjust impositions by an imperialist West. International rules were made without China’s fair input and, therefore, are invalid. Thus, woe to states with border or maritime disputes with China and to any state that dares challenge a position that the CCP takes on Chinese domestic issues such as Hong Kong’s civil rights or international issues such as the sovereignty of the South China Sea. To be fair, China has resolved some border disputes peacefully, but that was in the pre-Xi era.

    Perhaps increasing economic pressures also contribute to China’s new nationalism. China’s phenomenal growth has been centered on global integration and strong exports. The Middle Kingdom became the workshop of the world because of three key factors. First, China’s leaders have allowed the Chinese to engage in de facto private enterprise and investment. Second, the state invested heavily in public infrastructure in the form of telecommunications, broadband, road, rail, port, power generation, transmission and distribution. Third, small enterprises took to low-wage, labor-intensive manufacturing.   

    This Chinese model can no longer drive economic growth as it once did. When Deng Xiaoping embraced market economics in 1979, wages were low. Today, China has become a higher wage economy with numerous low-wage rivals and has a declining, aging workforce that peaked in 2011. By 2018, it had shrunk by 2.8%. Besides, the country has now reached economic and scientific maturity in many sectors. Its high catch-up growth rates are bound to slow down.

    In manufacturing, Vietnam, Bangladesh and Indonesia are emerging as new rivals. They have lower wages than China, making them more competitive for labor-intensive industries. Also, a new form of smart manufacturing is emerging in Europe and the US, threatening Chinese dominance. High-quality products are increasingly manufactured through a combination of research, robotics, new materials, additive manufacturing and cheap computing. A new economy based on interdisciplinary collaboration, international talent and cutting-edge technologies has emerged.

    In geopolitical terms, China threatens the US, and the ruling superpower is determined to stay top dog. President Barack Obama negotiated a gargantuan trade deal in the form of the Trans-Pacific Partnership (TPP). He sought to create a free-trade regime to strengthen the economic system that has underpinned international economic relations since 1945. Pointedly, the Middle Kingdom was not part of the TPP because the trade deal was meant to counterbalance China’s rise and to pressure China to adhere to and embrace these hard-won free trade, free market norms. Obama’s Asia Pivot was also designed to check China.

    Unlike Obama’s collaborative, multilateral effort, Donald Trump has opted for a bar fight by unleashing a full-fledged trade war on Beijing. He is following mercantilist and isolationist policies. Trump has steadily withdrawn the US from the Pacific, weakening its post-World War II role as global hegemon. Nonetheless, Trump has directly, if in a ham-fisted way, called China out on decades of intellectual property theft and unbalanced domestic market protectionism. It is increasingly clear that the US-China trade war has rattled the CCP leadership. As if these pressures were not enough, there are persistent fears that China’s gigantic debt bubble might burst. This could cause huge numbers of bankruptcies, a crash of the renminbi, a fall in growth rates and a potentially destabilizing surge in unemployment.

    Ratcheting Up Pressure

    Xi might appear serene, but he must be deeply worried about the stresses and creaks in his realm. With many nations, internal tensions have often led to external aggression. This phenomenon might be contributing to China’s aggressive actions against India. There are six other proximate reasons why China might be ratcheting up the pressure on India’s borders.

    First, China has been touchy about Tibet, Aksai Chin and its border with India since the days of Mao Zedong and Zhou Enlai. In 1962, it taught India a lesson after it refused to back down on its forward policy and turned down its boundary deal. Last year, India ended the special status for Jammu and Kashmir. New Delhi also carved out a brand new union territory of Ladakh. Official maps show Pakistani-held Gilgit and Baltistan as well as China-held Aksai Chin to be a part of Ladakh. In 1954, Mao’s China was not pleased with India’s maps. In 2019, Xi’s China is similarly displeased.

    Furthermore, India has built the world’s highest airfield at Daulat Beg Oldi, a spectacular feat of effort and engineering. Once this was an old campsite on the base of the strategic Karakoram Pass that leads to the Tarim Basin in southern Xinjiang. It lies on the fabled Silk Route where travelers rested on their long journeys from Beijing to Constantinople. Located at 5,065 meters above sea level, this airfield is close to Siachen Glacier, where Indian and Pakistani troops face off. After 20 years of work, engineers also have built the 255-kilometer Darbuk-Shyok-Daulat Beg Oldie road that offers India far better access to the LAC.

    India has been belatedly building its border infrastructure to match its Chinese counterpart. Naturally, the CCP wants to preserve its advantage. Ma Jiali, an India analyst at the China Reform Forum, a think tank affiliated with the CCP’s elite Central Party School, blames the June 15 clash on India’s “forward-moving posture” in the disputed area. He claims India’s infrastructure development triggered a Chinese response.

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    Second, Pakistan was incensed by India’s fait accompli in Jammu and Kashmir but wishes to avoid a full-out war in response. For decades, China has maintained close relations with Pakistan, which it uses as a lever to pressure India. China’s increasing pressure on India along the border is a way to help Pakistan meddle in Kashmir, and both China and Pakistan want to make India pay some price for its unilateral action.  

    Third, China is always touchy about Taiwan. Under Xi, Beijing has been increasing pressure on Taipei and on all other nations to hew to China’s claims to Taiwan. In May, two Bharatiya Janata Party (BJP) members of parliament virtually attended Taiwanese President Tsai Ing-wen’s swearing-in ceremony. This was an affront to the CCP’s “One China” policy. 

    Fourth, India opposed the BRI last year on the grounds of territorial sovereignty. The Doklam confrontation in 2017 occurred when India did not attend the first BRI summit earlier that year. In 2019, not only did India categorically oppose BRI, but it also won American support for its stance.

    Fifth, India has questioned China’s suppression of information and China’s influence on the World Health Organization (WHO) in the global spread of the COVID-19 pandemic. China’s health minister is now the chairman of the WHO’s executive board. So, India’s stand and comments on the pandemic gall China.

    Sixth, India has made noises about attracting manufacturing away from China in the post-COVID-19 world. It has made a big deal about a higher trust factor. It is a democracy with a free press. It has a multidecade experience of peaceful transfer of power through the ballot box, and foreign investment has lower long-term risk. China is particularly sensitive to this argument.

    Why Is the Asian Teapot Boiling Again?

    On the Indian side, New Delhi has grown tired of Beijing undercutting it repeatedly. Indian Prime Minister Narendra Modi has met Xi 18 times. He has visited China five times, more than any other prime minister in the past. Modi has personally invested in a good relationship with Xi. Now, critics are painting him to be another Nehru. China’s actions have inflamed Indian public opinion. Modi has no option but to stand up to the Middle Kingdom.

    India also sees China’s behavior on the LAC as yet another betrayal. Over the years, the Chinese have been developing their infrastructure on the Tibetan Plateau as well as the LAC, expanding their operations and following salami-slicing tactics to claim more territory. In the words of Ashley Tellis, the Chinese have been “singularly mischievous” not only by gobbling up strategic territory on the LAC but also reneging on their commitment to exchange maps that define each country’s positions. Since last year, China has also belligerently backed Pakistan in international forums against India’s policy in Kashmir — an issue as sensitive for India as Tibet is for China.

    There is another matter that irks Indians. All sorts of Chinese goods flood the Indian market, from active pharmaceutical ingredients to cell phones. As a result, China had a significant trade surplus of over $58 billion with India in 2018, accounting for 16% of China’s 2018 overall trade surplus. Only the US and the EU account for greater shares of China’s trade surplus. Indians feel they have contributed to making China richer only to be maltreated again. All these events have occurred at a time when the Indian government has adopted more clearly nationalistic policies than at any time since India won its independence. 

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    Over the last few years, India has been going through a democratic version of a political revolution. After decades of dominance, the Congress Party led by the Nehru family lost power in 2014 and was replaced by the Hindu nationalist BJP. It believes Hindus have been soft for centuries, and numerous invaders have taken advantage of them. The BJP disdains the Congress for being soft on national security. It has promised to end decades if not centuries of national diffidence. Modi, who styles himself as a strongman, has claimed to have a 56-inch chest. His willingness to use military force against Pakistan has made him wildly popular and contributed to his resounding reelection in 2019. Modi has brilliantly tapped into a new mood of nationalism. Hindu India no longer wants to roll over when invading armies appear. To maintain its winning brand, the BJP must appear strong, so it wants to fight back. Hence, a call to boycott Chinese goods has proved immensely popular. 

    Partly in response to public sentiment, the Indian government has restricted Chinese investment, and Indian Railways has canceled its contract with a Chinese company. It has banned 59 Chinese apps, including TikTok, Helo and WeChat. Global Times estimates the total number of active users of the 59 Chinese apps in India to be over 800 million, with TikTok alone claiming an estimated 120 million. This ban is a big blow, and a bigger one may be about to come. India might soon bar Chinese 5G equipment and join the US in checking Huawei’s global ambitions. China cannot be too pleased.

    Some say that India’s trade war on China was long overdue. Chinese firms had access to cheaper capital, government subsidies and other unfair advantages, dumping its cheap goods on India. While India opened its market for goods where China has an advantage, the Middle Kingdom never reciprocated for services where its southern neighbor is a better choice. The trade war will cut India’s trade deficit, force it to focus on manufacturing instead of the opiate of cheap Chinese goods and perhaps emerge with more robust domestic industries.

    This argument has some merit but overlooks the pain, even if only short term, that the Indian consumer will experience as a result of higher prices of everyday goods such as cell phones and nail cutters. Furthermore, it ignores the fact that Chinese investment in Indian startups grew from $381 million in 2016 to $4.6 billion in 2019. India is short on capital, and cutting off a growing source of capital will hurt. Yet China will suffer too because it is the country running a trade surplus and, if China keeps turning the screw militarily, India will keep responding economically.

    What Happens Next: Trade War, War or Peace?

    Many believe that the two nuclear-armed neighbors could not possibly go to war. The threat of uncontrollable escalation is appalling. Others think that India is no match to China. The Indian GDP is a little more than $3 trillion, while the Chinese economy has crossed $13 trillion. India’s per capita GDP is a little more than $2,000, while China’s is a bit under $10,000. When it comes to defense, India’s budget this year is about $57 billion while China’s is almost $179 billion. In a long war, Chinese economic might, industrial production and defense superiority would guarantee victory.

    The Belfer Center of the Harvard Kennedy School and the Center for a New American Security (CNAS) make a different argument. India has an advantage in the air because of superior aircraft, better bases and greater combat experience. Chinese air bases are at high altitudes in Tibet and Xinjiang. Their fighters can only carry half their fuel and design payload. Furthermore, geographic and weather conditions are difficult. Indian jets can take off from bases at lower altitudes in better conditions.

    Many soldiers and intelligence professionals in Israel, the UK and the US have a similar view to the Belfer Center and CNAS. So do Indian military men who are confident that 2020 is not 1962. India has fought low-intensity conflict for decades. Its infantry is battle-tested, seasoned and hardened. Its officers lead from the front in keeping with their British colonial tradition. With their rural roots, Indian soldiers are tough, hardy and brave. India’s all-volunteer army is professional and well trained, which does not suffer from political interference. Also, modern wars between sophisticated militaries may be of higher intensity but shorter duration than past wars, given changes in the technology of weapons and doctrine. That may give India an edge.

    In contrast, the PLA suffers from politicization. Loyalty to the CCP is often more important than mastery of warcraft. Many soldiers are conscripts and have little combat experience. Their performance under pressure and the ability to take casualties is untested. Furthermore, conscription and corruption often damage morale. Officers in the PLA tend not to lead from the front.

    The last time China experienced conflict was in Vietnam. In 1979, David gave Goliath a bloody nose. When it comes to 1962, however, there is an argument to be made that China was David. At that time, it had just experienced a terrible famine. India was faring better economically, and its top officers had been trained by the British. Like the 1979 Vietnamese forces, the PLA of 1962 was battle-tested. It had the experience of the Long March, combat with the Japanese, the conquest of Tibet and war in Korea. The fervor of the revolution still ran strong in 1962 and Chinese soldiers were willing to die. That fervor has abated in 2020.

    It is on sea where India commands the most advantage. Its navy has been the most professional of India’s three armed forces. Its size is small and the scale of its operations is limited. However, it has one major geographical advantage. The Strait of Malacca lies within striking distance. It is here that India could cause China most pain, severely disrupting its energy supplies. To escalate the decades-old border dispute to the Malacca Straits, however, would have powerful national and global repercussions, and is hard to imagine. Yet Mars is known for his fury, not his judgment.  

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    China’s aggression on the border demonstrates a staggering lack of understanding of its southern neighbor. This is a classic error in diplomacy. The BJP, India’s ruling party, and the Rashtriya Swayamsevak Sangh (RSS), its parent organization, have constantly viewed Pakistan as India’s mortal foe. Buried deep in their consciousness is the memory of Islamic invaders sacking temples, seizing women and imposing jazia, the infamous poll tax that Hindus paid their Muslim rulers until the 18thcentury. The BJP and the RSS have never seen China as a foe. Culturally, they see the Middle Kingdom as a kindred civilization and would prefer trade over war with it. Some even dream of adopting China’s Xinjiang policy in Kashmir. The CCP has been unwise in alienating, instead of cultivating, the BJP and the RSS.   

    The CCP might have overestimated India’s internal weaknesses. Protests are common in India’s rambunctious democracy. Demonstrations against a new citizenship law continued for months. Riots broke out in New Delhi during Donald Trump’s visit. COVID-19 is spreading fast as the economy continues to shrink. With 50% of the population under 25, protests could have erupted against the government. Instead, an enemy at the gates has unified a nation and given its people purpose.

    From COVID-19 to border transgressions, many Indians now blame China for everything, and a significant number of nationalists want to go to war with it. Ominously, the government has permitted ground commanders to use firearms in “rare” cases. The 1996 agreement not to use firearms or explosives at the LAC stands suspended. 

    On July 3, Narendra Modi has given a rousing speech to troops on the border. He has declared an end to the era of Chinese expansionism, vowed not to cede an inch of territory and saluted “Mother India” as well as the mothers of valiant soldiers. Using a Sanskrit phrase, “Veer Bhogya Vasundhara,” which literally means “the brave enjoy the earth,” Modi evoked Lord Krishna and declared India was ready for war.

    Despite rising nationalism and angry public sentiment, both countries know that war would be expensive. They would lose blood and treasure. Both have lost face during the recent border tensions. The Chinese have gobbled up territory Indians believe to be theirs. In response, the Indians have given the Chinese a bloody nose in a brutal brawl. Since 1962, tensions have never been higher. Han and Hindu nationalism have come face to face. Yet peace is still possible. It would involve a quid pro quo of the sort Zhou proposed to Nehru in 1960 in closed rooms over endless cups of tea.

    The views expressed in this article are the author’s own and do not necessarily reflect Fair Observer’s editorial policy. More

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    Should Hezbollah Be Disarmed?

    Amid Lebanon’s ongoing anti-government protests, various demonstrators have held signs demanding “No weapons but legal weapons. 1559, make it happen.” This is a clear reference to Hezbollah, a hybrid organization, political party, social movement and a regional player with global reach.

    There is a long history of Hezbollah and the disarmament issue being part of Lebanon’s political discourse. The issue is complex and contentious. There are various angles. First, one needs to distinguish between the internal Lebanese debate and the demands imposed externally by Western countries. Both perspectives are interconnected.

    Within the Lebanese context, Hezbollah has over time toned down its Islamic narrative and burnished its Lebanese credentials. The party has had representatives elected to parliament, various members in the cabinet, and stated that it would be willing to discuss disarmament within the framework of national dialogue. Hezbollah has pointed out that the Lebanese government itself has sanctioned and acknowledged the Shia organization’s role as a resistance movement. It has also repeatedly claimed that it would be willing to integrate into the national defense system once the Lebanese government is run efficiently, with the Lebanese armed forces proving capable of protecting the country.  

    A number of Western and Arab states and Israel have designated Hezbollah a terrorist organization. These governments view the Iranian-sponsored group as a major obstacle that is guilty of impairing progress in the Middle East, sowing chaos and advancing Iran and Syria’s sinister plans. A common narrative in Washington, some Gulf Arab capitals and Tel Aviv is that Hezbollah is mainly an Iranian stooge and/or a Syrian agent. The Shia organization, from this perspective, is a “state within a state” that willfully undermines the sovereignty of the Lebanese state while stripping the government of having the sole monopoly over the use of force in the country. The externally driven disarmament rhetoric, some have argued, is intended to demonize Iran as “harboring and abetting” terrorist movements and hence isolating it further.

    Protesters in Beirut, Lebanon on 10/28/2019 © Diplomedia / ShutterstockThe Taif Accords of 1989, which was the formal peace treaty that ended the Lebanese Civil War, stipulated and mandated that all militias be disbanded within a certain timeframe. Hezbollah was exempt from this and was allowed to hold on to its arms, which must be understood within the context of the Israeli occupation of parts of Lebanon that lasted from 1982 to 2000. For Hezbollah, holding on to its arms fulfilled various purposes.

    Rationale for Retaining Its Weapons

    The Lebanese group has used the disarmament issue in order to strengthen its leverage vis-à-vis various parties, especially the state. While Hezbollah has participated in various elections and had representatives elected to parliament, the organization feels the system has not adequately reflected its legitimate grievances and power-sharing concerns. For many, Hezbollah has taken on a pragmatic wait-and-see approach, hoping that a political opportunity would arise. Giving up its arms would weaken its position and imply a strategic loss to the party. As some have claimed, this would jeopardize its survival as a party and as a movement as such.

    However, regarding recent events, Dr. Aurelie Daher, a researcher at Sciences Po in Paris, warns: “One has to keep in mind that Hezbollah is not a party in the sense that Western political science would give the notion, as much as it is a lobby. Hezbollah does not intend to rule, does not intend to grasp all the governmental portfolios or take all and any kind of decisions at every level.”

    She adds: “Their presence in Lebanese politics has been, since its beginning in the early 1990s, motivated by a will to prevent any threat against the interests [of the organization]. As long as the other political parties and groups do not jeopardize the Islamic Republic’s [Iran’s] weapons, Hezbollah is ready to leave rather a comfortable room for maneuver to the other political actors — whether they are friends or foes.”

    Hezbollah has repeatedly stressed its exclusive Lebanese identity while admitting to its longstanding ties to Iran and Syria. Undeniably, both countries are strategic allies that have played critical and essential roles in Hezbollah’s expansion of influence across Lebanon, the greater Middle East and presumably to other parts of the world, such as Africa, Asia, Europe and Latin America.

    A poster of Hassan Nasrallah in Beirut, Lebanon on 8/23/2006. © Umut Rosa / ShutterstockGiving up its arms would not just substantially weaken Hezbollah, but its major patrons in Tehran and Damascus would be less inclined to invest significant amounts of funding in a group that has had to give up its major asset, namely its military capacity. Of course, Hezbollah has been very astute at diversifying its funding sources over the years and is no longer exclusively reliant on Iranian cash, which has gradually declined.

    Another factor that has emboldened Hezbollah to hold on to its arms is its openly-declared success against Israel in its various confrontations, such as in the summer of 2006. Hezbollah representatives have used this event to point out the necessity of resisting Israel further. Although many argue that Hezbollah provoked the encounter with Israel and was viewed by many as instigating the conflict, it managed to take advantage of Israel’s misguided policy of coming down hard on the whole of Lebanon. By resisting the surge mounted by Israeli forces and by presenting itself as victorious in the conflict with Israel, Hezbollah managed to remind onlookers of its strength and its continued importance as a resistance movement.

    In the wake of the 34-day conflict, Hezbollah once again used its well-established social welfare system to supply money to distraught Lebanese citizens who lost their homes and property. Over time, Hezbollah’s arms narrative has evolved from liberation to resistance to deterrence.

    A Moment of Change?

    At the beginning of Lebanon’s thawra (also dubbed the “WhatsApp Revolution”) back in October 2019, there was little discussion about Hezbollah. Most of the protesters’ attention centered on issues such as corruption, mainstream politicians, sectarianism and the corrupt political system as such. Hassan Nasrallah, the secretary-general of Hezbollah, took the high ground by pointing to the party’s fight at Lebanon’s southern border with Israel and its moral stance of being a “clean” and “pure” party.

    The picture started to change when Hezbollah supporters started attacking demonstrators, according to certain sources such as Amnesty International. Many demonstrators subsequently felt that Hezbollah, in actuality, was part of the corrupt political system that has been “controlling” the Lebanese people. Many have come to see Hezbollah as the primary backer of the current government, along with its allies, the Amal Movement and the Free Patriotic Movement.

    Protesters in Beirut, Lebanon on 11/22/2019 © Karim Naamani / ShutterstockHowever, according to Nicholas Blanford, a nonresident senior fellow at the Atlantic Council, Hezbollah also faces an array of challenges. He says these include “financial difficulties, largely due to US sanctions against it and its supporters and against Iran; corruption issues which have surfaced in the past decade-plus in part because of the party’s sudden and huge expansion in numbers after the 2006 war; [and] the weakening resistance narrative — a whole new generation of Lebanese Shias have grown up since the Israelis departed Lebanon in May 2000, and they have no memory of the Israeli threat.”

    He adds: “The last major engagement with Israel was 14 years ago. Since then, Hezbollah has been fighting Arab Sunnis rather than Israeli Jews. The party has become deeply enmeshed in Lebanese politics, not out of choice but in order to better defend its resistance priority. But playing a greater political role brings its own complications.”

    Instability in Syria

    Looking ahead, the situation in Syria and the ways in which the US-imposed sanctions on Damascus, known as the Caesar Act, play out in the war-torn country will heavily impact on Hezbollah’s future. To be sure, the crisis in Syria is not resolved, as underscored by the situation in Idlib, the last rebel stronghold. Moreover, with anti-Assad protests breaking out in regime-controlled parts of Syria, saying that the government in Damascus faces major challenges would be an understatement.

    Within this context, many Lebanese, including the majority of Shia and Christian citizens, will see Hezbollah disarming as too dangerous from a security standpoint, given that Lebanon’s border with Syria could again become porous. Most likely, wealthier Lebanese citizens who are anti-Hezbollah will leave the country as a result of the Caesar Act’s destabilizing impact on Lebanon amidst other crises stemming from the unrest resulting from the WhatsApp Revolution, the financial crisis and the COVID-19 pandemic.

    Perhaps this will all serve Hezbollah and its allies, who will defend the arsenal of the world’s most-heavily armed non-state actor.

    *[Gulf State Analytics is a partner institution of Fair Observer.]

    The views expressed in this article are the author’s own and do not necessarily reflect Fair Observer’s editorial policy. More

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