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    Does the World Need to Contain China?

    The rise of China has revived the rhetoric of Cold War-era containment to depict competition between dominant powers, although the state of international relations is fundamentally different. Containment strategy toward China featured prominently in former US President Donald Trump’s policy, and many believe that strategic competition will continue to define the relationship under the Biden administration but in a different form. However, the necessity to contain China is a contested idea both on economic and ethical levels.

    In the first place, it should be understood that the world “includes many different groups with varying degrees of dependence from China,” says Domingo Sugranyes, director of a seminar on ethics and technology at Pablo VI Foundation. Therefore, he adds, “the need for containment will be seen differently if you are looking at textile supply chains, workers’ rights in [Xinjiang], data privacy rules, markets for European cars.”

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    Oscar Ugarteche, a Peruvian professor of economics, believes the emergence of a new superpower competing with other Western countries may be “positive, particularly for the Global South.” That said, we are undeniably witnessing “the emergence of a new distribution of power in which relative weights are shifting away from the United States and its allies, although the absolute political and economic power of these nations is and will remain considerable,” he mentions.

    Some, such as researcher Valerio Bruno, see the rise of China not only in the economic and military domains, but also as an ideological confrontation — “between two Weltanschauungen” — that determines whether the future world order will be defined by liberal or authoritarian ideas. Proponents of a containment policy believe that China does not offer a realistic alternative to the liberal order and that it should be obliged to comply with those rules. How? According to economist Etienne Perrot, it could be through “multilateral agreements and targeted alliances” designed to bring European powers more firmly into the containment effort in the economic and technological domains.

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    In contrast, some observers question the necessity of containment. Kara Tan Bhala, president and founder of Seven Pillars Institute for Global Finance and Ethics, argues that “a deliberate policy of containing another country, and thereby not allowing many to achieve their human potential” may not be morally justified. States should “respect the diversity of systems … while encouraging each other to become ‘better socialists’ and ‘better capitalists’ serving humanity,” says Christoph Stuckelberger, a professor of ethics. On the economic front, Ugarteche says, “the technological competition between the USA and China is positive for all of us as it speeds up innovation and reduces costs and consumer prices.”

    At first glance, the Cold War rhetoric of containment refers to a bipolar world, which is not (yet) the case. Multipolarity seems to be the best guarantee to avoid the world sliding into bipolarity, with a risk of falling once again into a Thucydides’ Trap. In this perspective, the swift assertion of the European Union as a global, active player is urgently needed to leverage a new negotiated equilibrium anchored in a minimal level of mutual commitment on most urgent global challenges. In that sense, the notion of containment may be reformulated in terms of the world’s self-containment, especially, as Edward Dommen says, when we look “at the way the world economy abuses the planet.”

    By Virgile Perret and Paul Dembinski

    Author’s note: From Virus to Vitamin invites experts to comment on issues relevant to finance and the economy in relation to society, ethics and the environment. Below, you will find views from a variety of perspectives, practical experiences and academic disciplines. The topic of this discussion is: Does the world need to contain China and, if so, how?

    “… multilateral agreements and targeted alliances…”

    “Yes. China, by virtue of its human capacities, its natural resources and its organization, is today the dominant power (in terms of purchasing power parity). Opposite, the United States retains a monetary and military advantage, which China seeks to steal from them. Knowing that “power corrupts” (Lord Acton) and that “only power stops power” (Montesquieu), how to contain China without submitting to the USA? Through multilateral agreements and targeted alliances against MNCs [multinational companies] who, in the global market, behave like privateers in the service of their country of origin, sometimes even like pirates without faith or law.”

    Etienne Perrot — Jesuit, economist and editorial board member of the Choisir magazine (Geneva) and adviser to the journal Etudes (Paris)

    “… China does not export its politics.”

    “Is it the world or is it the West? Did the world need to contain Great Britain or Spain or the US in its time? What we are facing is a new superpower emerging that will compete with other Western countries and the result should be positive, particularly for the Global South. “The more, the merrier.” The technological competition between the USA and China is positive for all of us as it speeds up innovation and reduces costs and consumer prices. All else is irrelevant. China does not export its politics.”

    Oscar Ugarteche — visiting professor of economics at various universities

    “…negotiate with a clear understanding of issues at stake…”

    “The ‘world’ is no geopolitical actor; it includes many different groups with varying degrees of dependence from China. The need for containment will be seen differently if you are looking at textile supply chains, workers’ rights in [Xinjiang], data privacy rules, markets for European cars and machinery, monetary balances, Taiwan security and microprocessor supplies, loans to Africa and Latin America, or rare earth resources. … If the question refers to containment from the ‘West’ or, more precisely, the European Union, then the answer is no. We should negotiate with a clear understanding of issues at stake, as in the case of the proposed comprehensive agreement on investment. Above all, we should learn more facts about the incoming largest economic power.”

    Domingo Sugranyes — director of a seminar on ethics and technology at Pablo VI Foundation, past executive vice-chairman of MAPFRE international insurance group

    “One world — diverse systems”

    “How should the role of China be in the world? Three options: 1) China is disconnected from the world, sealed off, as it was to some extent 1949-1979, based on self-reliance and autonomous development; 2) China is fully integrated in the globalized world and follows the Western model of so-called capitalism and democracy as many powers in the West hoped that China, with its Open Door Policy since 1979, would develop; and 3) China is integrated in the world, but with its ‘Chinese characteristics’ of ‘third way’ combining planned and market economy, socialist one-party system with elements of consultative participatory processes and controlled civil society. The ethics of international relations needs to respect the diversity of systems as in option 3, while encouraging each other to become ‘better socialists’ and ‘better capitalists’ serving humanity.

    Christoph Stuckelberger — professor of ethics, founder and president of Globethics.net foundation in Geneva, visiting professor in Nigeria, China, Russia and the UK

    “…we are witnessing the emergence of a new distribution of power…”

    “The danger of conflict arises when there is no longer a consensus regarding the real power situation of the major parties — in this case, Russia as well as China and the United States. Conflict can become real when the parties, acting on significantly different subjective visions of the objective situation, come into collision. The purpose of conflict will be to demonstrate what the real power relationships have become and to establish some new consensus. Avoidance of conflict requires peaceful development of such a consensus, for which prerequisites will be acceptance by previously dominant countries that we are witnessing the emergence of a new distribution of power in which relative weights are shifting away from the United States and its allies, although the absolute political and economic power of these nations is and will remain considerable.”

    Andrew Cornford — counselor at Observatoire de la Finance, past staff member of the United Nations Conference on Trade and Development (UNCTAD), with special responsibility for financial regulation and international trade in financial services

    “…foster friendly and mutually fruitful relations…”

    “Does the world need to contain China? The USA? Itself? To contain oneself is always good advice, and if we look at the way the world economy abuses the planet, the world ought indeed to contain itself. However, to struggle to contain another party normally provokes a hostile reaction, and things go from bad to worse. Better to converse with it and thus to foster friendly and mutually fruitful relations. Trade is a form of that kind of conversation. As Adam Smith said, “It is the great multiplication of the productions of all the different arts, in consequence of the division of labour, which occasions, in a well-governed society … universal opulence.”

    Edward Dommen — specialist in economic ethics, former university professor and researcher at UNCTAD and president of Geneva’s Ecumenical Workshop in Theology.

    “…climate change will do more to change China…”

    “Containing China may be too big a task, and not all the world necessarily agrees on this goal. Indeed, it’s questionable if a deliberate policy of containing another country, and thereby not allowing many to achieve their human potential, is morally justified. Certainly, we should robustly oppose her monstrous conduct in Xinjiang, Tibet and Hong Kong and counter the Chinese Communist Party’s unacceptable behavior, for example, in trade and IP [intellectual property] in a targeted manner. But the demographics of an aging and gender skewed population, and the devastating effects of climate change will do more to change China than any containment strategy. One final thought: Should the world have contained the US when it destroyed indigenous peoples or practiced slavery?

    Kara Tan Bhala — president and founder of Seven Pillars Institute for Global Finance and Ethics

    “…two comprehensively different conceptions of the world…”

    “As Xi Jinping continues to steer the Middle Kingdom out of its historical isolation, avoiding challenging the United States for the position of world leader will be difficult, given China’s demographics and economic status. These two Weltanschauungen, two comprehensively different conceptions of the world, sooner or later will present the international community with a choice. Xi is well aware that the Biden administration can finally change course for the US and its allies, forging a united and progressive front after years of populist, nativist and authoritarian politics. Perhaps this element can help understand Xi’s assertiveness at the last World Economic Forum better than the recent economic successes. After all, political and civil rights are China’s Achilles’ heel.”

    Valerio Bruno — researcher in politics and senior research fellow at the Centre for Analysis of the Radical Right (CARR).

    “…obliging China to follow the rules…”

    “Present international relations cannot be correctly interpreted in the Cold War terms. The current confrontation between the United States and China is not Cold War 2.0 — it has a different nature. A historicist attempts to adapt the strategy of containment to post-Cold War realities are doomed to failure. The heterogeneous world is not able to be either an opponent or a proponent of the People’s Republic of China; only the consolidated West can be such an actor. China is a revisionist power. [It] criticizes the liberal world order but does not offer a realistic alternative. The most effective way to minimize Beijing’s destructive influence is to improve a rule-based order, and therefore a liberal order, by obliging China to follow those rules.

    Yuriy Temirov — associate professor, dean of the Faculty of History and International Relations at Vasyl Stus Donetsk National University in Ukraine

    *[A version of this article was originally published by From Virus to Vitamin and Agefi.]

    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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    They Are Coming for Us

    Quoting its favorite source for everything we need to know about the world, The New York Times clarifies the burning question of UFOs: “American intelligence officials have found no evidence that aerial phenomena witnessed by Navy pilots in recent years are alien spacecraft.” This is The Times’ way of telling its readers that there ain’t much there.

    The fact that The Times cites “intelligence officials” is unfortunate. Intelligence officials are trained in the dual skills of obscuring the truth and fabricating alternative truth. That is in essence the purpose of intelligence. Its agents are also trained to exploit the media, and The New York Times in particular, to spread their message. The trusting relationship between The Times and the intelligence community is what enables the newspaper to be the first to give credible shape to whatever stories the intelligence community wants the public to believe.

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    The Times journalists, Julian Barnes and Helene Cooper, inform us that “a vast majority of more than 120 incidents over the past two decades did not originate from any American military or other advanced U.S. government technology.” The Times, as expected, takes that statement at face value. “That determination would appear to eliminate the possibility that Navy pilots who reported seeing unexplained aircraft might have encountered programs the government meant to keep secret,” Barnes and Cooper write.

    Today’s Daily Devil’s Dictionary definition:

    Unexplained aircraft:

    The opposite of explained aircraft. Flying objects that for the past 80 years have been seen by Americans and no one else.

    Contextual Note

    CNN gets straight to the point when, quoting “one of its sources,” it explains that “US officials also cannot rule out the possibility that these flying objects were aircraft belonging to American adversaries, namely Russia and China.” The Times less dramatically reports that there is simply “worry among intelligence and military officials that China or Russia could be experimenting with hypersonic technology.” Of course, they “could be” doing lots of other things.

    MSNBC’s Chuck Todd requisitioned Barack Obama’s former CIA director, Leon Panetta, to offer some clarity on the issue. Todd asked him, “Is it your assumption that it is Russia or China testing some crazy technology that we somehow don’t have, or are we sort of over-assuming the abilities of China and Russia and that the only other explanation is that if it is not us ourselves then it is something otherworldly?”

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    This confused question should surprise no one. A significant part of Todd’s job at MSNBC is to focus the public’s fear on Russia and China. Panetta stepped willingly into his role of respected authority. He quite reasonably suggested that the most likely place to look would be in the direction of drone technology, which has become far more sophisticated than most people imagine. As expected, Panetta cited Russia and China, but few commentators have noticed that he didn’t stop. “I believe a lot of this stuff probably could be countries like Russia, like China, like others, who are you know using now drones, using the kind of sophisticated weaponry that could very well be involved in a lot of these sightings,” he said.

    Who could the “others” be that Panetta mentions after the obligatory Russia and China? This could produce an interesting guessing game. Could it be Cuba, a nation that once threatened the US with Soviet missiles? Or Mexico? But it seems to have its hands full with the war on the drug cartels. India, which has begun to assert itself as an active player in space? What about the Europeans, especially France and the UK? As part of NATO, they wouldn’t dare. The list could go on, but when every other nation besides Russia and China is eliminated, only one remains: the United States.

    On the CIA’s “Innovation and Tech” website, the agency proudly announces its deep engagement in technology. The spy agency’s research is not directly connected to what the Pentagon does and certainly not shared with it at anything but the highest strategic level. The website proudly announces: “At CIA, we’ve pioneered bold and innovative technologies for decades.” It invites the visitor to appreciate its work. “Learn how our cutting edge solutions have helped solve America’s biggest intelligence challenges.”

    What the site describes is impressive. This should lead any discerning visitor to speculate about what it doesn’t describe. A former high-level CIA operative once explained to us in a private conversation that when the CIA technology team briefed insiders, even at his level, about research on drone technology, they were only allowed to show technology from the past, which was already mind-blowing. In other words, it is unlikely that if the unusual behavior of an unidentified aerial phenomenon (UAP) observed by a Navy pilot happened to be a CIA invention, that pilot would have any clue to what it might be. And in no case would they be briefed afterwards on the experience. The CIA is specialized in keeping all kinds of things “unidentified.”

    Does this mean that The New York Times, CNN, MSNBC and the others are unaware of the possibility that it could be “our guys” who are up to these visual tricks? Both The Times and Chuck Todd evoke the possibility, only to dismiss it with no further discussion. That alone should raise questions in the public’s mind. 

    When The Times’ journalists write that “a vast majority of more than 120 incidents over the past two decades did not originate from any American military or other advanced U.S. government technology,” and then state that that “would appear to eliminate the possibility that Navy pilots … might have encountered programs the government meant to keep secret,” they are admitting two things while creating the opposite impression. By evoking a “vast majority,” they admit that a significant minority actually did originate with US technology. The journalists never bother exploring that paradox. And when, in a Times article sourced from the intelligence community, a sentence begins with “would appear to eliminate the possibility,” the discerning reader should see the verb “would appear” as a signal that the possibility in fact exists.

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    Panetta may have inadvertently revealed the truth to Todd, who, as an inquiring journalist, could have asked the former CIA chief which “others” he had in mind. But the media have a mission to reduce the question to exactly two possible explanations of the UAPs: extra-terrestrial invaders, on the one hand, or one of the two officially recognized adversaries of the US, Russia or China (or both), on the other.

    The further implication is that because serious scientists have pretty much dismissed the thesis of intelligent, technologically advanced extra-terrestrial visitors, there is one logical conclusion: The US needs to beef up its military technology in a new arms race justified by what the media have been promoting for at least five years: a new cold war. Donald Trump provided the nation with a new branch of the military, the Space Force. It’s time for President Joe Biden to make it work.

    Historical Note

    With his novel, “War of the Worlds,” the British author H.G. Wells launched a new genre of fiction involving space travel. The serialized novel was later turned into several Hollywood films and a famous radio broadcast by Orson Welles in 1938. Advances in aerial, military and rocket technology that came to prominence during the Second World War turned extra-terrestrial science fiction into a genre that quickly displaced the Western in Hollywood’s culture. Martians vs. earthlings came to replace cowboys vs. Indians.

    Unsurprisingly, Wells set his story in England. Equally unsurprisingly, Hollywood’s extra-terrestrial dramas always take place in the US. Those movies may have tipped off the non-fictional extra-terrestrials about where to guide their crafts, though no one has bothered to explain how they managed to access the films.

    On “60 Minutes,” former US Navy pilot Ryan Graves claimed that pilots training off the Atlantic coast were seeing UAPs regularly: “Every day for at least a couple years.” The fact that the tell-tale sightings all seem to occur in or near the US tells us that either the intergalactic visitors are fascinated by US culture or there is some magnetic force that draws them to North America. Unless, of course, the technology itself, which may be the drones Leon Panetta mentions or nothing more than optical illusions, was made in America.

    *[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. 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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    Biden Aims to Bolster U.S. Alliances in Europe, but Challenges Loom

    The good will President Biden brings on his first trip abroad papers over lingering doubts about U.S. reliability and the cost that Europe will be expected to pay.WASHINGTON — It should not be that hard to be an American leader visiting Europe for the first time after President Donald J. Trump.But President Biden will face his own challenges when he departs on Wednesday, especially as the United States confronts a disruptive Russia and a rising China while trying to reassemble and rally the shaken Western alliance as it emerges from the coronavirus pandemic.Mr. Biden, who will arrive for a series of summit meetings buoyed by a successful vaccination program and a rebounding economy, will spend the next week making the case that America is back and ready to lead the West anew in what he calls an existential collision between democracies and autocracies.On the agenda are meetings in Britain with leaders of the Group of 7 nations, followed by visits to NATO and the European Union. On Mr. Biden’s final day, in Geneva, he will hold his first meeting as president with President Vladimir V. Putin of Russia.Mr. Biden’s overarching task is to deliver the diplomatic serenity that eluded such gatherings during four years in which Mr. Trump scorched longstanding relationships with close allies, threatened to pull out of NATO and embraced Mr. Putin and other autocrats, admiring their strength.But the good will Mr. Biden brings simply by not being Mr. Trump papers over lingering doubts about his durability, American reliability and the cost that Europe will be expected to pay. At 78, is Mr. Biden the last gasp of an old-style, internationalist foreign policy? Will Europe bear the cost of what increasingly looks like a new Cold War with Russia? Is it being asked to sign up for a China containment policy? And will Mr. Biden deliver on climate?Those questions will loom as he deals with disagreements over trade, new restrictions on investing in and buying from China and his ever-evolving stance on a natural gas pipeline that will route directly from Russia to Europe, bypassing Ukraine.Throughout, Mr. Biden will face European leaders who are wary of the United States in a way they have not been since 1945 and are wondering where it is headed.“They have seen the state of the Republican Party,” said Barry Pavel, the director of the Scowcroft Center for Strategy and Security at The Atlantic Council. “They’ve seen Jan. 6. They know you could have another president in 2024.”White House officials say that stable American diplomacy is back for good, but of course they cannot offer any guarantees after January 2025. European officials are following the raging political arguments in the United States, and they note that Mr. Trump’s grip on his party is hardly weakening.Days before Mr. Biden’s departure, Republicans in Congress rejected the creation of a bipartisan commission to examine the Capitol riot. Republican lawmakers embrace Mr. Trump’s false claims that the 2020 election was stolen. Democrats are faltering in their efforts to pass sweeping legislation to counter Republican attacks on voting rights at the state level.Through it all, Mr. Trump keeps hinting at a political comeback in four years. “There’s an anxiety about American politics,” said Ian Lesser, a vice president at the German Marshall Fund of the United States. “Simply, what is going to happen in the midterm elections? Whether Trumpism will prove more durable than Mr. Trump. What is coming next in American politics?”If the future of the United States is the long-term concern, how to manage a disruptive Russia is the immediate agenda. No part of the trip will be more charged than a daylong meeting with Mr. Putin.Mr. Biden called for the meeting — the first since Mr. Trump embraced Mr. Putin’s denials of election interference at a summit in Helsinki, Finland, three years ago — despite warnings from human rights activists that doing so would strengthen and embolden the Russian leader. Jake Sullivan, Mr. Biden’s national security adviser, has noted that American presidents met with their Soviet counterparts throughout the Cold War, and their Russian successors afterward. But on Monday, he said Mr. Biden would warn Mr. Putin directly that without a change in behavior, “there will be responses.”Yet veterans of the struggle between Washington and Moscow say disruption is Mr. Putin’s true superpower.President Donald J. Trump embraced the denials of President Vladimir V. Putin of Russia in Helsinki, Finland, in 2018.Doug Mills/The New York Times“Putin doesn’t necessarily want a more stable or predictable relationship,” said Alexander Vershbow, who was an ambassador to Russia under President George W. Bush. “The best case one can hope for is that the two leaders will argue about a lot of things but continue the dialogue.”White House officials say the president has no intention of trying to reset the relationship with Russia. Having called Mr. Putin a “killer” this year, Mr. Biden is cleareyed about his adversary, they said: He regards Mr. Putin more as a hardened mafia boss, ordering hits with the country’s supply of nerve agents, than a national leader.But Mr. Biden is determined to put guardrails on the relationship, seeing out some measure of cooperation, starting with the future of their nuclear arsenals.But there is a dawning awareness in Europe that while Mr. Putin cherishes his growing arsenal, Russia’s nuclear ability is a strategic remnant of an era of superpower conflict. In what Mr. Putin recently called a new Cold War with the United States, the weapons of choice are cyberweapons, ransomware wielded by gangs operating from Russian territory and the ability to shake neighbors like Ukraine by massing troops on the border.Mr. Biden will embrace NATO and Article V of its charter, the section that commits every member of the alliance to consider an armed attack on one as an armed attack on all. But it is less clear what constitutes an armed attack in the modern age: a cyberstrike like the SolarWinds hacking that infiltrated corporate and government networks? The movement of intermediate-range missiles and Russian troops to the border of Ukraine, which is not a NATO member?Mr. Biden’s associates say the key is for him to make clear that he has seen Mr. Putin’s bravado before and that it does not faze him.“Joe Biden is not Donald Trump,” said Thomas E. Donilon, who was a national security adviser to President Barack Obama and whose wife and brother are key aides to Mr. Biden. “You’re not going to have this inexplicable reluctance of a U.S. president to criticize a Russian president who is leading a country that is actively hostile to the United States in so many areas. You won’t have that.”When Mr. Biden defines the current struggle as “a battle between the utility of democracies in the 21st century and autocracies,” though, he appears to be worrying more about China’s appeal as a trading partner and source of technology than Russia’s disruptions. And while Europeans largely do not see China as the kind of rising technological, ideological and military threat that Washington does, it is an argument Mr. Biden is beginning to win.The British are deploying the largest fleet of its Navy warships to the Pacific since the Falklands War, nearly 40 years ago. The idea is to re-establish at least a visiting presence in a region that once was part of its empire, with stops in Singapore, Malaysia, Australia and New Zealand. But at the same time, Prime Minister Boris Johnson has signed on to the effort by Washington — begun by Mr. Trump and accelerated by Mr. Biden — to assure that Huawei, the Chinese telecommunications company, does not win new contracts to install 5G cellular networks in Britain.Some in Europe are following suit, but Mr. Biden’s aides said they felt blindsided last year when the European Union announced an investment agreement with China days before Mr. Biden’s inauguration. It was a reflection of fears that if the continent got sucked into the U.S.-China rivalry, European companies would bear the brunt, starting with the luxury auto industry in Germany.The future of the agreement is unclear, but Mr. Biden is going the other way: Last week he signed an executive order banning Americans from investing in Chinese companies that are linked to the country’s military or ones that sell surveillance technology used to repress dissent or religious minorities, both inside and outside China. But to be effective, the allies would have to join; so far, few have expressed enthusiasm for the effort.Mr. Biden may be able to win over skeptics with his embrace of the goal of combating climate change, even though he will run into questions about whether he is doing enough.Four years ago, at Mr. Trump’s first G7 meeting, six world leaders reaffirmed their commitment to the Paris climate accord while the United States declared it was “not in a position to join the consensus.”Protesters outside the White House in 2017 as Mr. Trump announced his decision to withdraw from the Paris climate accord.Stephen Crowley/The New York TimesMr. Biden is reversing that stance, pledging to cut U.S. emissions 50 percent to 52 percent below 2005 levels by the end of the decade and writing in an op-ed in The Washington Post before the summit that with the United States back at the table, countries “have an opportunity to deliver ambitious progress.”But world leaders said they remained wary of the United States’ willingness to enact serious legislation to tackle its emissions and deliver on financial promises to poorer countries.“They have shown the right approach, not necessarily to the level of magnitude that they could,” said Graça Machel, the former education and culture minister of Mozambique.Key to reaching ambitious climate goals is China, which emits more than the United States, Europe and Japan combined. Peter Betts, the former lead climate negotiator for Britain and the European Union, said the test for Mr. Biden was whether he could lead the G7 countries in a successful pressure campaign.China, he said, “does care what the developing world thinks.”Lisa Friedman More

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    US Senate approves $50bn boost for computer chip and AI technology to counter China

    The US Senate has overwhelmingly approved a bill to boost American semiconductor production and the development of artificial intelligence and other technology in the face of growing international competition, most notably from China.The 68-32 vote for the bill on Tuesday demonstrates how confronting China economically is an issue that unites both parties in Congress. It is a rare unifying issue in an era of division as pressure grows on Democrats to change Senate rules to push past Republican opposition and gridlock.The centerpiece of the bill is a $50bn emergency allotment to the US commerce department to boost semiconductor development and manufacturing through research and incentive programs previously authorised by Congress. Overall, the bill would increase spending by about $250bn, with most of the spending occurring in the first five years.The bill now heads to the House of Representatives, which earlier passed a different version. The two will have to be reconciled into a single bill before it is sent to the White House for the president’s signature.Joe Biden said he was “encouraged” by the Senate’s passage of the United States Innovation and Competition Act.“We are in a competition to win the 21st century, and the starting gun has gone off,” Biden said.“As other countries continue to invest in their own research and development, we cannot risk falling behind. America must maintain its position as the most innovative and productive nation on Earth.”Supporters described the bill as the biggest investment in scientific research that the country has seen in decades. It comes as the nation’s share of semiconductor manufacturing globally has steadily eroded from 37% in 1990 to about 12% now, and as a chip shortage has exposed vulnerabilities in the US supply chain.“The premise is simple, if we want American workers and American companies to keep leading the world, the federal government must invest in science, basic research and innovation, just as we did decades after the second world war,” said Senate majority leader, Chuck Schumer.“Whoever wins the race to the technologies of the future is going to be the global economic leader, with profound consequences for foreign policy and national security as well.“If we do nothing, our days as the dominant superpower may be ending. We don’t mean to let those days end on our watch. We don’t mean to see America become a middling nation in this century.”The bill has a number of other China-related provisions, including prohibiting the social media app TikTok from being downloaded on government devices, and would block the purchase of drones manufactured and sold by companies backed by the Chinese government.It would also allow diplomats and Taiwanese military to display their flag and wear their uniforms while in the US on official businesses, and creates broad new mandatory sanctions on Chinese entities engaged in US cyberattacks or theft of US intellectual property from US firms. It provides for a review of export controls on items that could be used to support human rights abuses.The Senate minority leader, Mitch McConnell, backed the bill but said it was incomplete because it did not incorporate more Republican-sponsored amendments.“Needless to say, final passage of this legislation cannot be the Senate’s final word on our competition with China,” he said. “It certainly won’t be mine.”Senators slogged through days of debates and amendments leading up to Tuesday’s final vote. Schumer’s office said 18 Republican amendments will have received votes as part of passage of the bill. It also said the Senate this year has already held as many roll call votes on amendments than it did in the last Congress, when the Senate was under Republican control.While the bill enjoys bipartisan support, a core group of Republican senators has reservations about its costs.One of the bill’s provisions would create a new directorate focused on artificial intelligence and quantum science with the National Science Foundation. The bill would authorize up to $29bn over five years for the new branch within the foundation, with an additional $52bn for its programs.Rand Paul, a Republican senator for Kentucky, said Congress should be cutting the foundation’s budget, not increasing it. He called the agency “the king of wasteful spending”. The agency finances about a quarter of all federally supported research conducted by America’s colleges and universities.The lead Republican on the committee also weighed in to support the bill.“This is an opportunity for the United States to strike a blow on behalf of answering the unfair competition that we are seeing from communist China,” said Roger Wicker.Senators have tried to strike a balance when calling attention to China’s growing influence. They want to avoid fanning divisive anti-Asian rhetoric when hate crimes against Asian Americans have spiked during the coronavirus pandemic.Senators added provisions that reflect shifting attitudes toward China’s handling of the Covid-19 outbreak. One would prevent federal money for the Wuhan Institute of Virology as fresh investigations proceed into the origins of the virus and possible connections to the lab’s research. The city registered some of the first coronavirus cases. More

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    Joe Biden’s mission at the G7 summit: to recruit allies for the next cold war | Rafael Behr

    Joe Biden crosses the Atlantic this week on a tide of goodwill. After four years of Donald Trump, European leaders are grateful for the mere fact of a US president who believes in democracy and understands diplomacy.Trump had no concept of historical alliance, strategic partnership or mutual interest. He saw multilateral institutions as conspiracies against US power, which he could not distinguish from his own ego. He heard European talk of a rules-based international order as the contemptible bleating of weakling nations.Biden’s stated purpose is bolstering that order. In an article published in the Washington Post on the eve of his trip, the president talks about “renewed” and “unwavering” commitment to a transatlantic relationship based on “shared democratic values”.The itinerary starts in Cornwall with a gathering of G7 leaders. Then comes Brussels for a Nato summit, plus meetings with presidents of the European Council and Commission. Biden intends to orchestrate a surge of western solidarity as mood music ahead of a final stop in Geneva, where he sits down with Vladimir Putin. On that front, a stable chilling of relations will count as progress after the downright weirdness of Trump’s willing bamboozlement by the Kremlin strongman.A re-enactment of cold war choreography would suit Putin by flattering his pretence that Russia is still a superpower. In reality, Washington sees Moscow as a declining force that compensates for its shrunken influence by lashing out where it can, causing mischief and sowing discord. Putin is seen as an irritant, not a rival.That is in marked contrast to the view of China – an actual superpower and the eastern pole that Biden has in mind when he talks about reviving an alliance of western democracies. In that respect, the repudiation of Trumpian wrecking-ball rhetoric can be misleading. It sounds to European ears as if the new White House administration is hoping to set the clock back to a calmer, less combative epoch. In reality, Biden is coming to tell Europe to get its act together in the coming race for global supremacy with Beijing.By Europe, in this context, the president also means Britain. Boris Johnson might imagine himself a world leader of continental stature, but a US president is not required to indulge that fantasy.Biden takes a dim view of Brexit, seeing it as a pointless sabotage of European unity. The White House preferred Britain as a pro-US voice wielding influence inside the EU. Since that function is lost, Brexit’s only utility is in making it easier for the UK to embrace economic and strategic vassalage to the US. That means toeing a hawkish line on China.European nations should not really have to pause for long if the choice is alignment with Washington or Beijing. It is easy to muster resentment of US global swagger and point out hypocrisies in its claim to be a beacon of political freedom. But the alternative is an expansionist totalitarian state that militates against democracy and is currently engaged in a genocide against the Uyghurs.If China were a poorer country, Biden’s mission would be easier. But the economic gap between the established superpower and the challenger is closing. Per capita, Americans are still much better off, but China could overtake the US in gross domestic product by the end of this decade. With that heft comes world-leading technological capability with crossover military application that keeps the Pentagon up at night.During the cold war, the Kremlin maintained a credible military rivalry with the west but was not an economic competitor for long. The collapse of the Soviet model seemed to prove that political freedom and prosperity came as a package. There could be no enterprise without markets, no markets without fair rules, and no enforceable rules without democracy. The Chinese Communist party’s hybrid model of authoritarian capitalism appears to have disproved that theory.When the G7 was conceived in the 1970s, its combined membership – the US, Canada, Britain, France, Germany, Italy and Japan – comfortably represented a commanding share of global wealth. There was a natural association of liberal democratic institutions and economic success. Today, those seven nations’ combined GDP is down to 40% of the world total. The west is still rich, but it is no longer the world’s envied super league.Chinese money gives Europe commercial incentives that compete with its high-minded rhetoric on democratic values. China is Germany’s biggest export market. Smaller EU members have welcomed Chinese investment in infrastructure and businesses, although qualms are steadily growing about built-in political strings and security trapdoors. A huge Brussels-Beijing trade deal, signed last year (much to Washington’s dismay), is currently frozen as part of a tit-for-tat dispute over European criticism of Chinese human rights abuses.But EU governments simply don’t feel US levels of urgency to contain China. Geography is a factor – the US has a Pacific coast and strategic commitments to Taiwan, where Britain and France, for all their naval bravado, are little more than spectators. There is a conceptual difference too. As one diplomat puts it, Europe doesn’t like what China does, but the US doesn’t like what China is. The idea of the US being superseded as the paramount global power within the current century is existentially appalling for Washington.The Trump phenomenon compounds that anxiety for the current White House administration. It was a near-death experience for America’s constitutional order; an intimation of mortality for a political and economic model that looked insuperable at the dawn of the 21st century. The US president urges fellow western leaders to show strength in solidarity because the prospect of division, decline and the discrediting of democracy is more real than at any time in his five-decade Washington career.During that time, Biden has succeeded by patience, diplomacy and soft-spoken understatement. That style earns him a grateful audience in Europe, but the president’s manners should not be mistaken for mildness of purpose; the modest style is deployed in service of a tough message. He is not flying across the Atlantic to wallow in nostalgia for the alliances that won the first cold war. He is drumming up recruits for the second one. More

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    What Planet Will Our Children and Grandchildren Inherit?

    Let me start with my friend and the boat. Admittedly, they might not seem to have anything to do with each other. The boat, a guided-missile destroyer named the USS Curtis Wilbur, reportedly passed through the Straits of Taiwan and into the South China Sea, skirting the Paracel Islands that China has claimed as its own. It represented yet another Biden-era challenge to the planet’s rising power from its falling one. My friend was thousands of miles away on the West Coast of the United States, well vaccinated and going nowhere in COVID-stricken but improving America.

    As it happens, she’s slightly younger than me, but still getting up there, and we were chatting on the phone about our world, about the all-too-early first wildfire near Los Angeles, the intensifying mega-drought across the West and Southwest, the increasing nightmare of hurricane season in the Atlantic and so on. We were talking about the way in which we humans — and we Americans, in particular (though you could toss in the Chinese without a blink) — have been wreaking fossil-fuelized havoc on this planet and what was to come.

    Could This Have Been a Zoom Call?

    READ MORE

    And, oh yes, we were talking about our own deaths, also to come at some unknown future moment but one not as far away as either of us might wish. My friend then said to me abashedly, “I sometimes think it’s lucky I won’t be here to see what’s going to happen to the world.” And even as she began stumbling all over herself apologizing for saying such a thing, I understood exactly what she meant. I had had the very same thought and sense of shame and horror at even thinking it — at even thinking I would, in some strange sense, get off easy and leave a world from hell to my children and grandchildren. Nothing, in fact, could make me sadder.

    And you know what’s the worst thing? Whether I’m thinking about that “destroyer” in the Strait of Taiwan or the destruction of planet Earth, one thing is clear enough: It wouldn’t have to be this way.

    China on the Brain

    Now, let’s focus on the Curtis Wilbur for a moment. And in case you hadn’t noticed, US President Joe Biden and his foreign-policy team have China on the brain. No surprise there, though, only history. Don’t you remember how, when Biden was still vice-president, President Barack Obama announced that, in foreign and especially military policy, the US was planning a “pivot to Asia”? His administration was, in other words, planning on leaving this country’s war-on-terror disasters in the greater Middle East behind (not that he would actually prove capable of doing so) and refocusing on this planet’s true rising power. Donald Trump would prove similarly eager to dump America’s greater Middle Eastern wars (though he, too, failed to do so) and refocus on Beijing — tariffs first, but warships not far behind.

    Now, as the US withdraws its last troops from Afghanistan, the Biden team finds itself deep in its own version of a pivot-to-Asia strategy, with its collective foreign-policy brain remarkably focused on challenging China (at least until Israel briefly got in the way).

    Embed from Getty Images

    Think of it as a kind of pandemic of anxiety, a fear that, without a major refocus, the US might indeed be heading for the imperial scrapheap of history. In a sense, this may prove to be the true Achilles’ heel of the Biden era. Or put another way, the president’s foreign-policy crew seems, at some visceral level, to fear deeply for the America they’ve known and valued so, the one that was expected to loom invincibly over the rest of the planet once the Soviet Union collapsed in 1991; the imperial power our politicians (until Trump) had long hailed as the greatest, most “exceptional” nation on the planet; the one with “the finest fighting force that the world has ever known” (Obama), aka “the greatest force for freedom in the history of the world” (George W. Bush).

    We’re talking, of course, about the same great power that, after almost 20 years of disastrous wars, drone strikes, and counterterror operations across vast stretches of the planet, looks like it is sinking fast, a country whose political parties can no longer agree on anything that matters. In such a context, let’s consider for a moment that flu-like China obsession, the one that leaves Washington’s politicians and military leaders with strikingly high temperatures and an irrational urge to send American warships into distant waters near the coast of China, while regularly upping the ante, militarily and politically.

    In that context, here’s an obsessional fact of our moment: These days, it seems as if President Biden can hardly appear anywhere or talk to anyone without mentioning China or that sinking country he now heads and that sinking feeling he has about it. He did it the other week in an interview with David Brooks when, with an obvious on-the-page shudder, he told The New York Times columnist, “We’re kind of at a place where the rest of the world is beginning to look to China.” Brrr… it’s cold in here (or maybe too hot to handle?) in an increasingly chaotic, still partly Trumpian, deeply divided Washington and in a country where, from suppressing the vote to suppressing the teaching of history to encouraging the carrying of unlicensed weapons, democracy is looking ill indeed.

    Oh, and that very same week when the president talked to Brooks, he went to the Coast Guard Academy to address its graduating class and promptly began discussing — yes! — that crucial, central subject for Washingtonians these days: freedom of navigation in the South China Sea. (“When nations try to game the system or tip the rules in their favor, it throws everything off balance,” Biden said. “That’s why we are so adamant that these areas of the world that are the arteries of trade and shipping remain peaceful — whether that’s the South China Sea, the Arabian Gulf, and, increasingly, the Arctic.”) You didn’t know, did you, that a guided-missile destroyer, not to speak of aircraft carrier battle groups, and other naval vessels had been anointed with the job of keeping “freedom of navigation” alive halfway across the planet or that the US Coast Guard simply guards our coastlines.

    These days, it should really be called the Coasts Guard. After all, you can find its members “guarding” coasts ranging from Iran’s in the Persian Gulf to the South China Sea. Evidently, even the coast of the island of Taiwan, which, since 1949, China has always claimed as its own and where a subtle dance between Beijing and Washington has long played out, has become just another coast for guarding in nothing less than a new “partnership.” (“Our new agreement for the Coast Guard to partner with Taiwan,” said the president, “will help ensure that we’re positioned to better respond to shared threats in the region and to conduct coordinated humanitarian and environmental missions.”) Consider that a clear challenge to the globe’s rising power in what’s become ever more of a showdown at the naval equivalent of the OK Corral, part of an emerging new cold war between the US and China.

    And none of this is out of the ordinary. In his late April address to Congress, for instance, President Biden anxiously told the assembled senators and congressional representatives that “we’re in a competition with China and other countries to win the 21st century. … China and other countries are closing in fast.” In his own strange way, Trump exhibited similar worries.

    What Aren’t We Guarding?

    Now, here’s the one thing that doesn’t seem to strike anyone in Congress, at the Coast Guard Academy or at The New York Times as particularly strange: that American ships should be protecting “maritime freedom” on the other side of the globe, or that the Coast Guard should be partnering for the same. Imagine, just for a second, that Chinese naval vessels and their Coast Guard equivalent were patrolling our coasts, or parts of the Caribbean, while edging ever closer to Florida. You know just what an uproar of shock and outrage, what cries of horror would result. But it’s assumed that the equivalent on the other side of the globe is a role too obvious even to bother to explain and that our leaders should indeed be crying out in horror at China’s challenges to it.

    It’s increasingly clear that, from Japan to the Taiwan Strait to the South China Sea to the Indian Ocean, Washington is pushing China hard, challenging its positions big time and often in a military fashion. And no, China itself, whether in the South China Sea or elsewhere, is no angel. Still, the US military, while trying to leave its failed terror wars in the dust, is visibly facing off against that economically rising power in an ever more threatening manner, one that already seems too close to a possible military conflict of some sort. And you don’t even want to know what sort of warfare this country’s military leaders are now imagining there as, in fact, they did so long ago. (Daniel Ellsberg of Pentagon Papers fame only recently revealed that, according to a still-classified document, in response to the Chinese shelling of Taiwan in 1958, US military leaders seriously considered launching nuclear strikes against mainland China.)

    Indeed, as US Navy ships are eternally sent to challenge China, challenging words in Washington only escalate as well. As Deputy Secretary of Defense Kathleen Hicks put it in March, while plugging for an ever-larger Pentagon budget, “Beijing is the only competitor potentially capable of combining its economic, diplomatic, military, and technological power to mount a sustained challenge to a stable and open international system… Secretary [of Defense Lloyd] Austin and I believe that the [People’s Republic of China] is the pacing challenge for the United States military.”

    Embed from Getty Images

    And in that context, the US Navy, the Air Force and the Coast Guard are all “pacing” away. The latest proposed version of an always-rising Pentagon budget, for instance, now includes $5.1 billion for what’s called the Pacific Deterrence Initiative, “a fund created by Congress to counter China in the Indo-Pacific region.” In fact, the US Indo-Pacific Command is also requesting $27 billion in extra spending between 2022 and 2027 for “new missiles and air defenses, radar systems, staging areas, intelligence-sharing centers, supply depots and testing ranges throughout the region.” And so it goes in the pandemic world of 2021.

    Though seldom asked, the real question, the saddest one I think, the one that brings us back to my conversation with my friend about the world we may leave behind us, is: What aren’t we guarding on this planet of ours?

    A New Cold War on a Melting Planet?

    Let’s start with this. The old pattern of rising and falling empires should be seen as a thing of the past. It’s true that, in a traditional sense, China is now rising and the US seemingly falling, at least economically speaking. But something else is rising and something else is falling, too. I’m thinking, of course, about rising global temperatures that, sometime in the next five years, have a reasonable chance of exceeding the 1.5 degree Celsius limit (above the pre-industrial era) set by the 2015 Paris climate accords and what that future heat may do to the very idea of a habitable planet.

    Meanwhile, when it comes to the US, the Atlantic hurricane season is only expected to worsen, the mega-drought in the Southwest to intensify — as fires burn ever higher in previously wetter mountainous elevations in that region — and so on. Within this century, major coastal cities in the US and China like New Orleans, Miami, Shanghai and Hong Kong could find themselves flooded out by rising sea levels, thanks in part to the melting of Antarctica and Greenland. As for a rising China, that supposedly ultimate power of the future, even its leadership must know that parts of the north China plain, now home to 400 million people, could become quite literally uninhabitable by century’s end due to heat waves capable of killing the healthy within hours.

    In such a context, on such a planet, ask yourself: Is there really a future for us in which the essential relationship between the US and China — the two largest greenhouse gas emitters of this moment — is a warlike one? Whether a literal war results or not, one thing should be clear enough: If the two greatest carbon emitters can’t figure out how to cooperate instead of picking endless fights with each other, the human future is likely to prove grim and dim indeed. “Containing” China is the foreign-policy focus of the moment, a throwback to another age in Washington. And yet this is the very time when what truly needs to be contained is the overheating of this planet. And in truth, given human ingenuity, climate change should indeed be containable.

    And yet the foreign-policy wing of the Biden administration and Congress — where Democrats are successfully infusing money into the economy under the rubric of a struggle with China, a rare subject the Republicans can go all in on — seems focused on creating a future of eternal Sino-American hostility and endless armed competition. In the already overheated world we inhabit, who could honestly claim that this is a formula for “national security”?

    Returning to the conversation with my friend, I wonder why this approach to our planet doesn’t seem to more people like an obvious formula for disaster. Why aren’t more of us screaming at the top of our lungs about the dangers of Washington’s urge to return to a world in which a “cold war” is a formula for success? It leaves me ever more fearful for the planet that, one of these days, I will indeed be leaving to others who deserved so much better.

    *[This article was originally published by TomDispatch.]

    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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    Biden trumpets democracy abroad in Post op-ed – as threats spread at home

    Joe Biden will use his visit to Europe this week to “rally the world’s democracies” in a reset of US foreign policy after four turbulent years under Donald Trump – all while threats to American democracy, stoked by Trump, proliferate at home.The president’s plan for the trip was set out in a column for the Washington Post on Saturday night, as Trump spoke to Republicans in North Carolina.Previewing meetings with “many of our closest democratic partners” and Vladimir Putin, Biden promised to “demonstrate the capacity of democracies to both meet the challenges and deter the threats of this new age”.Critics may point out that the president would do well to face up to attacks on democracy at home. He has put Vice-President Kamala Harris in charge of the matter but there are many fronts to the battle.In the states, Republicans have passed laws to restrict ballot access and to make it possible to overturn election results.On the stump, Trump continues to peddle his lie that Biden’s victory in November was the result of fraud. In Greenville on Saturday, the former president called his defeat “the crime of the century”.In Washington last month, Republicans in the Senate blocked a bipartisan commission to investigate the attack on the US Capitol on 6 January, by supporters Trump told to “fight like hell” in his cause.In Biden’s own party, centrist senators stand in the way of voting rights protections.In his column for the Post, Biden tied another domestic priority – infrastructure spending, currently tied up in seemingly doomed negotiations with Republicans – to a chief foreign policy aim.“Just as it does at home,” he wrote, “honing the ability of democracies to compete and protecting our people against unforeseen threats requires us to invest in infrastructure. The world’s major democracies will be offering a high-standard alternative to China for upgrading physical, digital and health infrastructure that is more resilient and supports global development.”In North Carolina, Trump said China should pay the US and the world $10tn in reparations for its handling of the coronavirus outbreak, while nations should cancel debt to Beijing.Biden touted domestic successes – progress against the coronavirus and the passage of his relief and stimulus package (without a single Republican vote) – and said: “The United States must lead the world from a position of strength.”He saluted the announcement on Saturday by G7 finance ministers of a global minimum corporate tax rate. Further distancing himself from Trump, who withdrew from the Paris climate deal, he said: “We have an opportunity to deliver ambitious progress that curbs the climate crisis and creates jobs by driving a global clean-energy transition.”In office, Trump attacked Nato. Biden saluted the “shared democratic values” of “the most successful alliance in world history. In Brussels, at the Nato summit, I will affirm the United States’ unwavering commitment to … ensuring our alliance is strong in the face of every challenge, including threats like cyberattacks on our critical infrastructure.”Amid proliferating such attacks, he said, it was important that “when I meet with Vladimir Putin in Geneva, it will be after high-level discussions with friends, partners and allies who see the world through the same lens as the United States”.Trump famously caused consternation among the US press corps in Helsinki in 2018, meeting Putin without aides and seeming cowed in his presence.Biden said the US and its allies were “standing united to address Russia’s challenges to European security … and there will be no doubt about the resolve of the United States to defend our democratic values, which we cannot separate from our interests.”Some have asked what Biden hopes to gain from meeting Putin – former Trump national security adviser John Bolton told the Guardian this week, “You meet when you have a strategy in place of how to deal with Russia and I don’t think he has one.”In the Post, Biden heralded his extension of the New Start nuclear arms treaty and responses to cyberattacks.“I will again underscore the commitment of the United States, Europe and like-minded democracies to stand up for human rights and dignity,” he wrote.“This is a defining question of our time: can democracies come together to deliver real results for our people in a rapidly changing world? Will the democratic alliances and institutions that shaped so much of the last century prove their capacity against modern-day threats and adversaries?“I believe the answer is yes. And this week in Europe, we have the chance to prove it.” More

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    Biden bans US investment in Chinese military and tech surveillance sectors

    Joe Biden has signed an executive order that bans American entities from investing in dozens of Chinese companies with alleged ties to defense or surveillance technology sectors.In a move that his administration says will expand the scope of a legally flawed Trump-era order, the US treasury will enforce and update on a “rolling basis” the new ban list of about 59 companies.It also bars buying or selling publicly traded securities in target companies, and replaces an earlier list from the defense department, senior administration officials told reporters.The order prevents US investment from supporting the Chinese military-industrial complex, as well as military, intelligence, and security research and development programs, Biden said in the order.“In addition, I find that the use of Chinese surveillance technology outside [China] and the development or use of Chinese surveillance technology to facilitate repression or serious human rights abuse constitute unusual and extraordinary threats,” Biden said.A White House fact sheet on the order said the policy would take effect for those companies listed on 2 August.Major Chinese firms included on the previous defense department list were also placed on the updated list, including Aviation Industry Corp of China (AVIC), China Mobile Communications Group, China National Offshore Oil Corp (CNOOC), Hangzhou Hikvision Digital Technology, Huawei Technologies and Semiconductor Manufacturing International Corp (SMIC).SMIC is key to China’s national drive to boost its domestic chip sector.“We fully expect that in the months ahead … we’ll be adding additional companies to the new executive order’s restrictions,” one of the senior officials said.A second official told reporters that the inclusion of Chinese surveillance technology companies expanded the scope of the Trump administration’s initial order last year, which the White House argues was carelessly drafted, leaving it open to court challenges.The president has been reviewing a number of aspects of US policy toward China, and his administration had extended a deadline for implementation set by Donald Trump’s order while it crafted its new policy framework.The move is part of Biden’s broader series of steps to counter China, including reinforcing US alliances and pursuing large domestic investments to bolster American economic competitiveness, amid increasingly sour relations between the world’s two most powerful countries.Biden’s Indo-Pacific policy coordinator, Kurt Campbell, said last month that a period of engagement with China had come to an end and that the dominant paradigm in bilateral ties going forward would be one of competition.Senior officials said the treasury would give guidance later on what the scope of surveillance technology means, including whether companies are facilitating “repression or serious human rights abuses”.“We really want to make sure that any future prohibitions are on legally solid ground. So, our first listings really reflect that,” a second senior administration official said.Investors would have time to “unwind” investments, a third official said.The new list provided few surprises for investors looking to see if they need to unload even more Chinese stocks and bonds.But some previously identified companies, such as Commercial Aircraft Corp of China (COMAC), which is spearheading Chinese efforts to compete with Boeing and Airbus, as well as two companies that had challenged the ban in court, Gowin Semiconductor Corp and Luokung Technology Corp, were not included.In May, a judge signed an order removing the designation on Chinese mobile phone maker Xiaomi, which was among the more high-profile Chinese technology companies that the Trump administration targeted for alleged ties to China’s military. More