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    China-India Clash Wakes Up Tibet’s Ghost of Independence

    Wildfires have been burning in California, Brazil and Siberia. Brexit is causing unending headaches in both Europe and the UK. The American election campaign has kicked off in high gear. Deaths from COVID-19 have crossed one million. US President Donald Trump’s taxes were the talk of the town, before he landed in hospital with COVID-19 himself. In such a milieu, it is easy to overlook a tempest in Asia. On October 5, China threatened to make India’s latest strategic tunnel unserviceable even as Indian engineers race against time and tough conditions to bolster their country’s border infrastructure.

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    For the last few months, India and China have been clashing over icy heights on the roof of the world. Their undefined border and contesting claims are causing increasing unease in the world’s largest and most populous continent. They are also leading to new moves on the geopolitical chessboard that might have historic consequences.

    Tibetan Troops, Article 370 and Ladakh

    Tenzin Nyima, a company leader in India’s shadowy Special Frontier Force (SFF) and a stateless Tibetan refugee, died on the contested Line of Actual Control that separates territories controlled by India and China. Hundreds of thousands of Tibetan refugees have lived in India since the Dalai Lama’s flight to the country in 1959. A select few serve in the SFF, an extremely tough outfit that excels in high-altitude operations.

    The Tibetan Kashag was the de facto independent government of Tibet before the invasion by China’s People’s Liberation Army (PLA) in 1950, which was condemned by the United Nations General Assembly. The SFF fights under the snow lion flag of the Tibetan Kashag. The Central Tibetan Administration, known as the Tibetan Government in Exile, also uses the same flag. Understandably, the PLA, the Communist Party of China (CCP) and Chinese nationalists are not too fond of this symbol.

    Nyima’s funeral in Ladakh occurred with much honor. Importantly, Ram Madhav, then the general secretary of India’s ruling Bharatiya Janata Party (BJP), was present at the funeral. His admirers refer to him as the “Kissinger of India.” More pertinently, Madhav is one of the most influential political figures in India and a key ideologue on strategic matters. He was a key architect of the BJP’s Kashmir policy and was instrumental in removing Article 370 last year, which ended Jammu and Kashmir’s autonomy. By honoring Nyima, Madhav is making a symbolic but profound point: He is signaling support for the Tibetan cause.

    As most Indians and India hands know, the BJP had been vowing to remove Article 370 for decades. Once Prime Minister Narendra Modi won historic reelection last year, the BJP made a bold bet and removed this article from the constitution. It carved out Ladakh from the state of Jammu and Kashmir as a separate union territory. The people of this land practice Tibetan Buddhism, share ethnic kinship with Tibetans and follow the Dalai Lama. By removing Article 370 and giving Ladakhis their own territory, India has upset not only Pakistan but also China.

    Salami Tactics

    Historically, India’s stand on Tibet has been ineffectual. Despite domestic opposition, Jawaharlal Nehru acquiesced to the Chinese conquest of Tibet. Even after the disastrous defeat of 1962, India’s first prime minister did not come down on the side of the Tibetans. The Dalai Lama has lived in India for decades, but Delhi has never openly supported Tibetan independence or autonomy. In contrast, China has allied with Pakistan and opposed India’s interests in Jammu, Kashmir and Ladakh.

    Since Modi came to power in 2014, he has met Chinese President Xi Jinping 18 times. He has been conciliatory and accommodating to Xi. Even before Modi, India opened its markets to Chinese products. This economic engagement was for a strategic reason: India wanted peace with its larger neighbor and aimed to wean it away from Pakistan. Instead, China has consistently followed salami tactics, and, this year, it cut off a larger slice of Indian territory.

    Chinese actions led to Modi losing face earlier this year. The Indian National Congress (INC) party tried to paint him as the new Nehru. For the Nehru dynasty that still leads the INC, a debacle for Modi would wash off Nehru’s sins and damage the BJP. In the brutal battle for national dominance, an embarrassment for Modi would boost the INC. Hence, it is no surprise that Modi and Madhav are pushing back so strongly against China.

    In recent years, India has been preparing for a two-front war. In 2018, India’s Air Force conducted its largest exercise to counter a joint China-Pakistan invasion. The junior minister in charge of border roads is General V.K. Singh, the former army chief. More than most, he understands the key need for border infrastructure and has been pushing hard for it. This has caused the Chinese grief because Indian infrastructure upgradation of its Central Asian tracts chips away at the PLA’s strategic advantage.

    Public Sympathy

    In recent weeks, Modi has gained public sympathy. The Indian public blames Xi for backstabbing him and the Indian intelligentsia for being too naive, if not deluded, about China. This public support has allowed Modi to take a stronger stance against Beijing. The PLA and Xi have been caught off guard. At high altitudes, Chinese troops have been weighed, measured and found wanting. Indian troops have not rolled over as in 1962. In fact, they have given the PLA a bloody nose. This is deeply embarrassing for a country with superpower pretensions. China is setting itself up as a counterpart to the US. Anything short of a conclusive victory against a country China deems to be its inferior would be nothing short of a national disaster.

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    As two of the authors explained in a historical analysis of the India-China conflict, Beijing has become more aggressive since Xi came to power. The PLA has consistently and constantly claimed territory India considers its own. As a result, confrontations have been on the rise. There is a real risk that Xi might be overplaying his hand.

    What Xi fails to appreciate is that 2020 is not 1962. Over the last few months, China has lost the element of surprise. Indian troops are mobilized all along the border and have more experience of high altitudes. Furthermore, Tibetans and other mountain troops fighting for India are local lads with old scores to settle with the PLA. They come from communities who practice Tibetan Buddhism. Hence, they resent Beijing for cultural genocide in Tibet and do not want to live under its yoke. These troops are fighting for their freedom and are in a do-or-die mood. The next clash could easily spill over into an all-out war.

    Xi forgets that India has less to lose in case of war. A decisive defeat would merely confirm its underdog status and win international sympathy. Even if India loses but its troops acquit themselves well, China would be humbled. However, if China loses, Xi himself and his CCP might find themselves in trouble. On a simple cost-benefit calculus, a Xi-led China has no rational reason to go to war against a Modi-led India.

    There is another key reason for China to wind down tensions. After decades of licking their wounds, Tibetans have now openly entered the fray under their fabled snow lion flag and with the blessing of India’s political leadership. It is no longer two militaries clashing for icy crags but two ideas colliding head-on. A military clash might be about to turn into a political, religious and cultural conflict. The Tibetan snow lion of independence threatens Beijing’s holy cow of Greater China.

    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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    Will China’s Digital Currency Revolutionize Global Payments?

    China is well on its way to becoming a cashless society. More than 600 million Chinese already use Alibaba’s Alipay and Tencent’s WeChat Pay to pay for much of what they purchase. Between them, the two companies control approximately 90% of China’s mobile payments market, which totaled some $17 trillion in 2019. A wide variety of sectors throughout China have since adopted Blockchain to pay bills, settle disputes in court and track shipments. The Chinese government understands that, via Blockchain, the issuance of its own cryptocurrency is an excellent way to track and record the movement of payments, goods and people.

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    The unsexily named Digital Currency/Electronic Payments (DCEP) is intended to be used by anyone around the world to purchase anything. It has the potential to revolutionize the global payments system. Assuming it succeeds, many other countries will want to emulate it. Some other governments have already launched similar initiatives, but not on the scope or scale of the DCEP, which promises to be the first global digital currency.

    Digital Wallets

    What appears to have spurred the Chinese government to actively pursue the DCEP in 2019 was the birth of an organization that also has the potential to revolutionize the global payments system, the Libra Association. Libra is a grouping of more than two dozen organizations creating the world’s first Blockchain-derived global payment system, specifically founded on best practices in regulation and governance. Its stated objective is to transparently bring access to financial services to billions of people who either have limited or no access to the existing global banking system.

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    Given that it is an American-led initiative that will use the US dollar to determine its benchmark value, Beijing viewed Libra as an attempt to establish US dominance over the global cryptocurrency marketplace. It previously viewed other cryptocurrencies as a threat to its own hegemony over capital controls in China.

    Although its motivations to counter the US are clear enough, much remains unknown about the DCEP. One has to wonder just how much focus it will have on transparency, governance or best practices. It will not be available on cryptocurrency exchanges, nor will it be available for speculative purposes. Embracing Blockchain and creating a DCEP ecosystem will give the Chinese Central Bank unprecedented power over capital movements — certainly in China, but also around the world.

    Like Alipay and WeChat, the DCEP will require a digital wallet, but it will not require a bank account. Commercial banks will issue the digital wallets, but no internet connection will be required to conduct transactions via the DCEP. All that will be required is that a phone has battery power. While a certain degree of anonymity will be present with the DCEP, the Chinese Central Bank will still be able to track who spent or received funds, when, where and from whom. The Chinese government calls the concept “controllable anonymity” and will rely on Big Data to identify behavioral characteristics of the individuals and businesses using DCEP. Doing so will help the government identify money laundering, tax evasion and terrorist financing. It will, of course, also permit a higher degree and quality of state surveillance of Chinese citizens and citizens of any other country that may use it.

    Since the Chinese government will be the first to launch a global digital currency, it will gain a considerable lead over the world’s nations and provide it with the ability to perfect its surveillance capabilities in China and around the world for any country that chooses to adopt the DCEP. It will also help to internationalize the yuan and simultaneously create less dependence on the US dollar. So, the Chinese government intends to stay a step ahead of the competition, enhance its ability to monitor its citizens, broaden its soft power and increase China’s appeal to other countries while countering the supremacy of the US dollar in the process.

    Alternative System

    By issuing the DCEP, the Chinese government hopes that demand for yuan reserves will follow, facilitating a digital version of the yuan as a global alternative to dollar reserves, especially in Belt and Road Initiative (BRI) member nations seeking to modernize their financial sectors. It could also help internationalize China’s e-payment systems, which are not used outside of China. In the absence of an American cryptocurrency, which seems to be a long way off, doing so could in theory make the DCEP the cryptocurrency of choice among BRI (and other) countries.

    Such an alternative system may be particularly appealing for countries under US sanctions, which may wish to avoid using the US dollar entirely, or for countries or businesses engaged in trading, investment or lending with Chinese companies. But the yuan remains not fully convertible, with just 1% of international payments using it. That could have a significant impact on the government’s implementation strategy. In addition, the Chinese government is attempting to centralize what is a decentralized technology by requiring that all “nodes” using the Blockchain register with the government and provide information about their users.

    While the Chinese people are accustomed to having their government pry into, and try to control, their private lives, most of the world’s population wants nothing of the sort. It remains to be seen just how broadly the DCEP will be adopted, or whether it will turn out to be a net positive for the nations that choose to use it, but having the first-mover advantage will surely serve Beijing well. Despite its apparent flaws, if it also helps to bring some of the world’s poorest nations with the least access to basic and global financial services on par with the world’s developed nations in that regard, Beijing will have done much of the world’s population a great service in the process.

    *[Daniel Wagner is the author of “The Chinese Vortex: The Belt and Road Initiative and its Impact on the World.”]

    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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    Trump First now drives US foreign policy. Even if it leads to war… | Simon Tisdall

    It’s clear Donald Trump will do almost anything to cling to office. Lie about Ruth Bader Ginsburg’s dying wish? Go for it. Label Joe Biden a radical socialist? Silly, but worth a punt. Start a war with China or Iran? Pause right there. This is not beyond the realms of possibility, given his pathological need to win.As November’s poll nears, Trump is weaponising foreign policy – not to defend US security and national interests, but to help him grab a second term. It’s not about putting “America First”. It’s all about putting “Trump First” – by any dangerous means, and at any cost.Trump has no big international successes to his name. On the contrary, he has trashed America’s global reputation and alienated its friends. His North Korea jamboree was all hot air. His Afghan policy is retreat without honour. Israel’s shabby deals with Gulf dictatorships, stitched up by the White House, undermine the quest for Middle East peace.Scornful of traditional diplomacy and lacking significant achievements, Trump chooses confrontation. He exploits visceral fears, just like he does when campaigning at home: fear of nefarious foreign foes, fear of the other, fear of difference.His China-baiting at the UN last week was typical scaremongering. He characterised the pandemic as a global war triggered by Beijing. Covid-19 was the “invisible enemy”, a “plague” and the “China virus” – terms intended to frighten and divide. Just in case Xi Jinping and the other watching Johnny Foreigners did not get the message, the US, he said, had spent $2.5tn on defence since 2016. “We have the most powerful military anywhere in the world.”Was this a threat? Maybe the entire planet should put its hands up and surrender. More