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      Can Chinawood Win Soft Power for Beijing?

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      With movie theaters closed all over the world due to the COVID-19 pandemic, Hollywood studios had little reason for celebration over the past year. In business for over a century, Universal Pictures (founded in 1912), Paramount (1912), Warner Bros. (1923), Walt Disney (1923) and Columbia Pictures (1924) now have an extra reason to be concerned. In 2020, China took over Hollywood’s crown as the world’s biggest movie market, with a revenue of $3.2 billion, 84% of which came from domestic sales.

      Foreign-Language Entertainment Is Having Its Soft-Power Moment

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      Is this new status enough for China? Probably not. New blockbusters will soon rebalance these numbers, but soft power — the ability to seduce people from all over the world through culture — takes time to build up. Soft power also brings lasting income to its country of origin in terms of products and services, like tourism for example. When in 1934, Walt Disney began work on “Snow White and the Seven Dwarfs,” other film studio chiefs derided the project as “Disney’s Folly,” since adults, not children, were considered to be primary consumers. These executives forgot that children watch films over and over again and want all the related merchandise. “Snow White” went on to become the first film in history to gross $100 million, selling 400 million tickets from 1937 to 1948.

      Welcome to Chinawood

      These are just numbers. Disney’s greatest achievement was making his creations into lucrative vehicles of US culture for decades to come. That is what China wants to achieve. It has been taking similar steps ever since farmer-turned-entrepreneur Xu Wenrong began building Hengdian World Studios in the 1990s. Known as Chinawood, it became the largest outdoor film studio in the world and one of China’s biggest domestic tourist attractions, offering historic film sets, a resort hotel and live performances. Marketing itself “China’s tourism and performing arts capital,” Chinawood attracts thousands of TV shows and film productions every year.

      Embed from Getty Images

      Also, since fewer than 40 foreign films are allowed to take a bite of this massive market due to a strict quota system, Chinawood also houses foreign productions like “The Mummy: Tomb of the Dragon Emperor,” a Hollywood-Chinawood co-production (these escape quota restrictions), starring the likes of Brendan Fraser and Jet Li, grossed over $400 million worldwide in the first 21 weeks of its release.

      Is this enough to make Chinawood a new soft power? The answer is, probably not. Because Chinawood productions face a similar challenge as all the other blockbusters shot in the country, these films often lack creativity, self-criticism, audacity and freedom. Take the recent historical war drama, Guan Hu’s “The Eight Hundred,” for example. The film — at $470 million, 2020’s top-grossing production — pushed China to the number one spot in global box office revenues. However, most of this profit comes from China itself and not international markets. While European and US theaters still struggle to open because of COVID-19, even without the pandemic, it’s hard to say that such productions could help the Chinese film industry overseas.

      “The Eight Hundred” was abruptly pulled from a scheduled premiere at the Shanghai Film Festival in 2019 without an explanation. A version shorter by 11 minutes later opened in theaters, with much fewer scenes involving Chiang Kai-shek’s Kuomintang forces. Besides likely censorship, what may explain the little impact the film had internationally, as the film critic Tony Rayns suggests, is that while avoiding the “rabid China-is-top-dog quality of the Wolf Warrior movies,” its “spirit is resolutely neo-nationalist,” with “all the bombast and jingoism of the current moment.”

      Hollywood became an effective soft powerhouse not only because of million-dollar budgets and top-quality products, but also thanks to creative freedom. For instance, Oliver Stone’s “Born on the Fourth of July” (1989) and Francis Ford Coppola’s “Apocalypse Now” (1979), both masterpieces, were expressly critical of US military intervention in Vietnam. The films are also on the patriotic side, with American values overemphasized. However, by criticizing America’s own culture and politics, the films are far from being hard-power propaganda.

      Hard Power Interference

      The Communist Party of China (CPP), on the other hand, interferes directly in cultural productions. According to a report by James Tager, PEN America’s deputy director of Free Expression Research and Policy, since 2011, the CCP’s Central Committee issued a statement declaring the “urgency for China to strengthen its cultural soft power and global cultural influence.” As Louisa Lim and Julia Bergin write in The Guardian, the party is trying to “reshape the global information environment with massive infusions of money” with the aim being to “influence public opinion overseas in order to nudge foreign governments into making policies favorable toward China’s Communist Party.”

      The official People’s Daily once declared, “we cannot be soft on soft power,” calling for culture must be exported in order to strengthen China’s international stance. Chinawood is part of this effort, which includes $10 billion spent annually on public diplomacy, in contrast with $2 billion allocated by the US Department of State in 2018. Soft power works well when China opens hundreds of Confucius Institutes to spread its language and culture around the world. What doesn’t work is when the same party severely punishes Chinese ethnical minorities, like the Muslim Uighurs facing persecution in Xinjiang.

      China already has an important cultural soft power: its art, poetry, painting, sculpture and pottery, from the early imperial dynasties to the 20th century, coveted by museums and collectors around the world. It succeeds because the state hard power doesn’t interfere significantly with it. But when it comes to contemporary culture — films, games, TV shows and apps like Tik Tok — Chinese hard power seems to impose harmful control. That’s not how soft power works. It needs freedom and self-criticism to produce genuine and seductive art.

      George Orwell once said that “Journalism is printing what someone does not want printed; everything else is public relations.” The phrase also pertains to the arts and the entertainment industry. When President Xi Jinping says that “the stories of China should be well told, voices of China well spread and characteristics of China well explained,” by “well” he probably means “positive.” That is definitely not how one wins soft power for the long term.

      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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      Fault Lines in Biden’s Approach to China

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      So far, the White House has undertaken a flurry of activity designated to back up President Joe Biden’s pledge to be tough-minded on China. He has warned that Beijing will face “extreme competition” from the United States. Taiwan’s top representative was invited to the presidential inauguration on January 20 and the Biden team has promised to continue US arms sales to Taipei.

      Is China the New Champion of Globalization?

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      Secretary of State Antony Blinken has said he agrees, conceptually at least, that former President Donald Trump “was right in taking a tougher approach to China” and that he supports the prior administration’s finding that Beijing’s treatment of Uighur minorities in Xinjiang constitutes “genocide.” In early February, the new administration conducted naval maneuvers to contest Chinese dominance in the South China Sea and reaffirmed the US security commitment to defending the Senkaku Islands in the East China Sea, which are controlled by Tokyo but claimed by Beijing.

      Veterans of the Obama Administration

      Yet all of this cannot conceal the two major fault lines threatening to undermine President Biden’s promise. The first centers on the heavy presence of Obama-era veterans on his national security team, particularly those associated with that administration’s “strategic pivot” toward the region. Two of President Biden’s top staffers were key architects of the much-touted initiative: Kurt M. Campbell, who was in charge of East Asian affairs in the State Department under President Barack Obama and is now the White House’s Asia policy czar, and Jake Sullivan, who was deputy chief of staff to Secretary of State Hillary Clinton and is now Biden’s national security adviser.

      Embed from Getty Images

      The rhetoric of Obama’s pivot to Asia simultaneously antagonized Beijing while its actual track record largely failed to impress other Asian governments. According to one assessment, the pivot’s hype caused a marked increase in Chinese military spending at the same time that sharp cuts in the Pentagon budget were hampering US military operations in Asia. During a visit to Japan in 2013, the chairman of the Joint Chiefs of Staff admitted that “We are going to have to think about how to remain a global power with fewer resources. I think we are going to have to find ways to accomplish almost the same things but with smaller force structures.” In early 2014, the Pentagon’s acquisitions chief publicly stated that budget constraints were forcing a reconsideration of the initiative.

      As Obama’s coordinator for North Korea policy has acknowledged, the effort “was ill conceived and bungled in its implementation.” In late 2013, the Asahi Shimbun, one of Japan’s largest newspapers, noted an “increasingly widely shared view in Japan and the region that the Obama administration may not have enough political capital or the financial assets to implement” the pivot. It added that some have even come to see it as no more than a “bumper sticker.” Similarly, a leading Australian analyst observed, “There is a growing perception in Asia that the Obama administration’s much-ballyhooed ‘pivot to Asia’ has run out of puff.” By late 2014, a foreign affairs columnist for The New York Times argued that most of Asia had concluded the pivot was nothing more than hot air.

      Memories of this track record persist. A commentator focused on Asian affairs observed last year that “Officials in Tokyo, Taipei, New Delhi, Singapore and other capitals have grown relatively comfortable with Trump and his tough approach on China. The prospect of a Biden presidency, by contrast, brings back uncomfortable memories of an Obama era that many Asian movers and shakers recall as unfocused and soft toward Beijing.”

      Just before the 2020 election, The Washington Post noted that current and former officials of the Taiwanese government and ruling party had “privately expressed concern that a return of Obama-era foreign policy advisers in a potential Biden administration could mean a U.S. approach that is more conciliatory toward China compared with the Trump administration’s — and less supportive of Taiwan.” The Financial Times also reported along similar lines.

      The personnel problem extends to Biden himself, as he is a late convert to the tough-on-China crowd. Prior to his becoming the Democratic Party’s presidential nominee, he had regularly dismissed the notion that China mounted much of a geopolitical challenge. His campaign staffers were reportedly troubled by his naivete, and one adviser later admitted that for the rest of the campaign, Biden had to be “deprogrammed” on China. While this was going on, Robert M. Gates, Obama’s first defense secretary, reaffirmed to CBS News his earlier judgment that Biden has “been wrong on nearly every major foreign policy and national security issue over the past four decades.” 

      Standing Strong vs. Climate Change

      The second fault line running through Biden’s approach to China is the irreconcilability between maintaining a hard line and his administration’s insistence on the pressing urgency of securing Beijing’s cooperation on climate change. Biden officials claim they can somehow manage this tension and will not have to make significant concessions in other policy areas in order to fulfill its global climate ambitions.

      John Kerry, President Obama’s secretary of state when the 2015 Paris climate agreement was signed, is now Biden’s special climate envoy with a spot on the National Security Council. He insists, for example, that climate is a critical stand-alone issue that can be compartmentalized on the US–China bilateral agenda. Administration officials believe that collaboration is so self-evidently in Beijing’s interest that it will naturally sign on to Washington’s new push for significant climate action.

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      The Chinese government so far is not much impressed with this logic, with its foreign ministry stating that climate could not be separated from other issues “unlike flowers that can bloom in a greenhouse despite winter chill.” A Chinese government Twitter account also declared that “China is willing to work with the US on climate change. But such cooperation cannot stand unaffected by the overall China–US relations. It is impossible to ask for China’s support in global affairs while interfering in its domestic affairs and undermining its interests.” 

      Given the White House’s fervor on the issue, one suspects the Biden administration will be making the concessions in the end. During the presidential campaign, Biden asserted that climate change is an “existential threat” and the “number one issue facing humanity.” Now that he is in the Oval Office, Biden believes “we can’t wait any longer.” He signed a directive making the issue the “center of our national security and foreign policy” and ordered government agencies to factor “climate considerations” into their assessment of international priorities. Kerry uses similar language, declaring that “the stakes on climate change just simply couldn’t be any higher than they are right now. It is existential.” He added that Biden “is deeply committed — totally seized by this issue.”

      In shutting down construction of the Keystone XL oil pipeline, as well as freezing new oil and natural gas leases on federal lands and waters, the administration has also shown it is willing to subordinate important domestic goals, such as energy security and employment stability in the middle of a job-killing pandemic, to climate priorities. It has written off large job losses as inevitable and is accepting of a backlash from important labor unions that aided its electoral victory just a few months ago.

      Susan Rice Returns

      It is also telling that Susan Rice, the national security adviser during Obama’s second term, has returned to the White House as President Biden’s top domestic affairs coordinator. Bilahari Kausikan, the former senior Singaporean diplomat widely regarded in East Asia, recently exclaimed that Rice “was among those who thought that the US should deemphasise competition to get China’s cooperation on climate change, which is a fundamental misunderstanding of the nature of international relations.” Another observer has made the same point, noting that “Obama and Rice wanted to work with China on issues such as climate change, but they did so at the cost of treating Beijing with kid gloves.” 

      Influential members of the Democratic foreign policy establishment have advocated the same thing. Anne-Marie Slaughter, the head of an influential think tank in Washington and a former director of policy planning in the Obama-era State Department, recently argued that “Biden should prioritize global issues over geopolitical competition” and that the president’s focus on climate “should guide his foreign policy as well.”

      Rank-and-file party members also share this view. In a recent public opinion survey, Democrats by a wide margin believe climate change to be a more critical threat than the rise of China as a peer competitor to the US. Indeed, according to Democratic respondents, China did not even rank among the top seven challenges facing the country.

      Something will have to give in the new administration’s approach toward China. There is already an early indication of how things will play out. Notwithstanding the protestations about Beijing’s egregious human rights abuses, the Biden team continues to support holding the 2022 Winter Olympics in that city.

      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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      How Tough Is Biden Prepared to Look?

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      A week after taking office, US President Joe Biden made a point of breaking with the position of his predecessor, Donald Trump, who famously blamed China for deliberately spreading the coronavirus. Trump insisted on calling it the Wuhan flu, Kung flu or any other xenophobic alternative. Coming to the defense of the entire Asian community in the United States, Biden issued a memorandum stating the following: “Inflammatory and xenophobic rhetoric has put Asian-American and Pacific Islander persons, families, communities and businesses at risk.”

      The Iran Deal vs. the Logic of History

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      The World Health Organization (WHO) team conducting an investigation in Wuhan released its preliminary findings this week on the origins of SARS-CoV-2, the virus that causes COVID-19. It maintained, as Reuters reports, “that the virus likely came from bats and not a laboratory in the Chinese city of Wuhan.” On February 10, an official of the US State Department announced what appeared to be a retreat to the Trump administration’s position: “The United States will not accept World Health Organization … findings coming out of its coronavirus investigation in Wuhan, China without independently verifying the findings using its own intelligence and conferring with allies.”

      One of the WHO inspectors, British zoologist and expert on disease ecology Peter Daszak, reacting to the State Department’s note, addressed this advice to Biden in a tweet: “Well now this👇. @JoeBiden has to look tough on China. Please don’t rely too much on US intel: increasingly disengaged under Trump & frankly wrong on many aspects. Happy to help.”

      Today’s Daily Devil’s Dictionary definition:

      Look tough:

      1. The principal action required to maintain the status of a bully, a person whose demeanor counts more than their substance
      2. The principal action required to maintain the image of the leader of a hegemon, called upon to make a show of being hyper-aggressive toward nations elected by politicians and the media as an existential threat  

      Contextual Note

      While the WHO team offered no definitive explanation of the origin, it focused on different possibilities of animal transmission requiring further investigation. When asked at a press conference on February 10 whether he had “any interest in punishing China for not being truthful about COVID last year,” President Biden cagily replied, “I’m interested in getting all the facts.” That answer leaves him free to look tough on China or, alternatively, to look tough at the intelligence that for the past four years has done what intelligence always does, responded obsequiously to the political solicitations of the administration in place.

      One American who, for the past four years, has made a point of looking tough and has been regularly featured in the media is Mike Pompeo, the final secretary of state under the Trump administration. In a desperate effort to keep the Trump mystique going to maintain its flagging ratings, Fox News brought Pompeo back to defend the Wuhan flu theme Trump consistently exploited for electoral advantage during last year’s presidential election campaign. In the interview, “Pompeo said ‘significant evidence’ remained that the coronavirus originated in a Chinese laboratory, casting doubt Tuesday on the World Health Organization‘s assessment that it likely spread from animals to humans.”

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      Pompeo, a former CIA director, admitted in 2019 that his job at the Central Intelligence Agency consisted of lying, cheating and stealing. He implied that he was now telling the truth, a fact ironically borne out by his honest admission of duplicity while at the CIA. And yet, there may be reason even today to believe that Pompeo has retained something of his talent for lying, which he will be willing to use for what he deems virtuous purposes. 

      The language people like Pompeo use often reveals how they manage to bend the truth when they aren’t simply betraying it. In the Fox interview, Pompeo explains, “I continue to know that there was significant evidence that this may well have come from that laboratory.” What can Pompeo possibly mean when he says, “I continue to know”? Is knowledge for Pompeo something that can appear and disappear? Knowledge is a state of awareness of truth, not an act of will, something one can decide according to the circumstances. 

      And because what someone knows must be a fact, what is the solid fact he says he continues to know? He tells us that it is the idea that the coronavirus “may have come from” the Wuhan laboratory. But something that “may” be true is at best a reasonable hypothesis and at worst a fabricated lie. Something that “may” be true cannot be called knowledge. Any honest speaker would use the verb “suspect.” But, in this age of conspiracy theories, people tend to suspect anything that is merely suspected. And Fox News has always preferred assertions to suspicions.

      In the same interview, Pompeo describes his recommendations for the US policy on China. He says the nation must “continue to make sure that the next century remains one dominated by rule of law, sovereignty and the things that the America first foreign policy put in place.” 

      Besides the fact that Pompeo offers another example of his favorite verb, “continue,” his odd assertion that “the next century” (the 22nd?) must be “dominated by rule of law” offers a curious yoking of two theoretically antinomic ideas: dominance and rule of law. The very idea of “rule of law” posits a relationship of equality between all concerned parties. It opposes the effect of domination. Rule of law is about level playing fields and fair play. Pompeo’s formulation reveals that he thinks of the rule of law as a specific tool of American domination. This is of course consistent with the facts, whatever the administration. The US still steadfastly refuses the jurisdiction of the International Criminal Court and Trump’s “America First” policy refused any law other than its own.

      For those wondering why Fox News has taken the trouble to interview the former secretary of state of a president now being tried for sedition, the journalists reveal the interest at the end of the interview. Fox sees Pompeo as a worthy contender for the 2024 presidential campaign. He’s a cleaner version of Trump, but one who will always talk and look tough.

      Historical Note

      After the most contentious presidential election in its history, the US has been preparing to experience the transition from one radical style of hyperreality to another — from Donald Trump’s outlandish display of petulant rhetoric committed to reshaping the world in his image to Joe Biden’s reserved and fundamentally uncommitted avuncular manner. Just as in 2008, when they voted in Barack Obama after eight years of George W. Bush’s chaotic wars and a Wall Street crash, Americans are expecting a change of style and focus from the never-ending drama of the Trump years. 

      But just as the self-proclaimed change candidate Obama, once in office, showed more respect for continuity than commitment to renewal, on the theme of foreign policy, President Biden appears to be following Trump’s lead while simply reducing the tone. This phenomenon reflects a more fundamental reality at the core of today’s pseudo-democratic oligarchy. It is regularly masked by the transition from Republican to Democrat and vice versa. The reigning political hyperreality, despite the contrasting personal styles of successive presidents, will always prevail. Continuity trumps change.

      Embed from Getty Images

      Biden’s future policy on both China and Iran provides two cases in point. The clock is ticking on the need to recalibrate both of these relationships, more particularly on Iran, which has an election coming in just a few months. As the world anxiously awaits the new orientations of the Biden administration, the kind of continuity Pompeo appreciates may prove more dominant than the reversal people have come to expect. After all, Trump set about reversing everything Obama did, so why shouldn’t Biden do the same? The answer may simply be that that’s not what Democrats do.

      The average American has never been seriously interested in foreign policy. That very fact has consistently led to the kind of Manichaean thinking that dominated during the Cold War. In his 2000 election campaign, the inimitable George W. Bush summed up how that Manichaean system works: “When I was coming up, it was a dangerous world, and you knew exactly who they were. It was us versus them, and it was clear who them was. Today, we are not so sure who the they are, but we know they’re there.” As John Keats once wrote, “That is all Ye know on earth, and all ye need to know.” 

      *[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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      Is China the New Champion of Globalization?

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      On January 25, addressing a virtual World Economic Forum, China’s President Xi Jinping not only strongly advocated for a multilateral approach to the COVID-19 pandemic but insisted on the virtues and systemic benefits of free trade and globalization. Jeopardizing those elements may introduce conflict into the international system, Xi warned, clearly referring to, although not mentioning, the United States. This is not the first time Xi has credited himself as the “champion of globalization,” in particular when attending meetings in Davos. In 2017, in the early days of Donald Trump’s presidency, with the long shadow of barriers to trade and isolationist policies just starting to appear on the horizon, China’s president made important remarks encouraging free trade and opening up the markets.

      However, with Trump out and Joe Biden now in the Oval Office, there seems little to suggest any substantial change in US policy, at least in the foreseeable future. If the US isn’t particularly eager to work with China toward free trade and multilateral cooperation, the European Union, and Germany in particular, quickly opted for a completely different approach, signing a key investment deal with Beijing at the end of last year. The Comprehensive Agreement on Investment (CAI) will grant a greater level of market access for investors than ever before, including new important market openings.

      Forecasting the US-China Relationship

      READ MORE

      Washington did not miss the opportunity to express its concerns about a deal that suddenly and unexpectedly sidelined the United States at a moment when, after four years of relative anarchy and opportunism, restarting transatlantic relations should be a priority. Writing in the Financial Times, Gideon Rachman recently pointed out how little sense it makes to rely on a US security guarantee in Europe while undermining its security policy in the Pacific, considering how much Europe has benefitted from the fact that for the past 70 years, the world’s most powerful nation has been a liberal democracy. Germany, in fact, was able over the last decades to exercise a sui generis role of Zivilmacht (civilian power) by framing its national interest in geoeconomic terms, encouraging German exports worldwide while outsourcing its defense to the reassuring presence of US troops.

      To better understand Xi’s quasi-imperial stance at the World Economic Forum, it has to be placed not only against the backdrop of the recent investment deals with the European Union or with the 15 countries of the Asia-Pacific region, but on the big news that China is on course to overtake the US as the world’s biggest economy by 2028, five years ahead of earlier predictions, mainly due to the asymmetric impact of COVID-19. While it is clear that China has successfully contained the Sars-Cov-2 outbreak and the Chinese economy is now recovering at a higher speed than other countries, it is also true that a lack of transparency and delays in sharing information with the international community about the virus have contributed to an acceleration of the pandemic at a global level.

      Embed from Getty Images

      Nonetheless, in the current debate over shaping more efficient emergency policies, China is still emerging as the model to follow and imitate, despite being unpopular. There is little doubt that in the “social imaginary” of liberal societies, as reports from Europe and the US suggest, authoritarian regimes are seen by many as more efficient and better prepared to deal with crises than democracies. Yet we must not forget that this efficiency comes at the inevitable cost of political and civil rights.

      Xi Jinping 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 World Economic Forum better than the recent economic successes. After all, political and civil rights are China’s Achilles’ heel. Criticism of the Communist Party, let alone advocating for basic human rights such as freedom of speech or the rule of law, inexorably leads to repression that falls with equal severity on the rich metropolis of Hong Kong and the poor areas of Xinjiang, sweeping up ordinary citizens and billionaires alike, from Joshua Wong to Jack Ma.

      Can China credibly profess the virtues of globalization to achieve harmony and balance in an international system if it doesn’t adhere to international law? Can Beijing speak of cooperation to solve global problems when it has withheld vital information about the threat of the COVID-19 pandemic? 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. Will these two Weltanschauungen, two comprehensively different conceptions of the world, sooner or later present the international community with a choice?

      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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      Forecasting the US-China Relationship

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      With a new US administration about to be inaugurated, it is prudent to look at the dynamics and variables shaping the future of one of the world’s most important relationships, that between Washington and Beijing. President Donald Trump came into office looking to take a more aggressive approach toward China. Trump’s reliance on figures like Peter Navarro and Mike Pompeo put American foreign policy on a forceful path. While Navarro, as Trump’s trade adviser, was focused on conducting trade wars, Secretary of State Pompeo was centered on military balancing. In the final year of the Trump presidency, relations with China were rapidly disintegrating, with little room left for cooperation.

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      If President Trump presided over a rapid deterioration of the US-China relationship, under President Joe Biden, the relationship is likely experience a stable deterioration. A stable deterioration is typified by two features: the continuance of deviating trajectories and the transactional nature of future cooperation. These two features interact to create a new status quo in the US-China relationship.

      Deviating Trajectories

      The era of engagement between Beijing and Washington was sustained through a shared interest in China’s economic and political integration in the international community. Today, China under President Xi Jinping has sought to both blunt international political institutions and create international financial bodies, thereby challenging US spuremacy and allowing for more Chinese dexterity. Xi’s international revisionism struggles against American national interests, creating a split between the two global giants.

      As President-elect Joe Biden is in the final stages of forming his national security team, he sends a strong, clear signal: This will not be a third Barack Obama term. Biden has declared that he plans on nominating Antony Blinken as secretary of state and Jake Sullivan as national security adviser. While both are veterans of the Obama administration, their tone and language signal a break from the Obama years. Both Blinken and Sullivan have acknowledged the need to develop a new strategy for China that goes beyond traditional engagement into managing competition.

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      At a Hudson Institute event last summer, Blinken stated, “We are in a competition with China — and there’s nothing wrong with competition, if it’s fair.” Continuing the theme of managing competition with China, a piece for Foreign Affairs co-authored by Sullivan with Kurt Campbell, the CEO of the Asia Group, suggests that “the signs that China is gearing up to contest America’s global leadership are unmistakable, and they are ubiquitous.”

      These statements follow a larger trend within the Democratic Party of getting tougher on China. For example, in the 2016 Democratic Party Platform, China is only mentioned seven times. In the 2020 document, mentions were up to 22 and included language like “push back against” and “stand up to.” A Biden administration is going to bring strategic clarity to US-China competition. Key advisers like Sullivan and Blinken are not pollyannish about the relationship and recognize the dramatic change that has been occurring for nearly a decade. As Biden leaves America’s engagement strategy behind, he will advance a more confident and more energetic foreign policy in defense of US interests and values.

      Meanwhile, on the Chinese side of the relationship, President Xi Jinping has pursued an aggressive posture that has shaken the regional order. His ambitious “national rejuvenation” strategy has created consternation. Xi has abandoned institutional integration and instead established his own multilateral financial institutions to blunt the influence of the World Bank and the International Monetary Fund. The People’s Liberation Army has also been more assertive in promoting Beijing’s territorial claims in the South China Sea. The complete political absorption of Hong Kong has alarmed neighboring Taiwan. Lastly, Xi’s extraordinary Belt and Road Initiative has expanded China’s political influence across the region.

      President Xi’s national rejuvenation campaign is in direct conflict with the interests of the United States and its allies. The US stands atop of an international order that promotes political and economic liberty. Through this alliance system, the United States promotes and secures a free and open Indo-Pacific. Under Xi’s helmsmanship, China wants to displace, if not replace, the US and develop a new, Sinocentric order. These trajectories will only continue to deviate until a new status quo can develop.

      Areas of Cooperation

      While the chasm in the US-China relationship widens and deepens, there are several areas where American and Chinese interests align. The United States and China must develop procedures for collaboration in these areas. If the relationship is only limited to competition, problems will arise that could otherwise be solved. Additionally, neither country gains from complete destruction of bilateral relations.

      The stabilization of the Korean Peninsula will require significant coordination between Washington and Beijing. Neither the Chinese nor the Americans want to see conventional or nuclear conflict on the peninsula. The two countries do not need to feign friendship to achieve stabilization, but it does require communication.

      Climate change is an issue that is not only an opportunity for cooperation but a problem that demands collaboration. As the world’s two largest economies, the US and China have a lot of influence in affecting the trajectory of global warming and climate change. Both countries stand only to gain from working together on this issue. Collaboration on the environment does not require a new proclamation of camaraderie between the two nations. Each government can recognize that cooperation on climate change is important without declaring a new era of relations. The business-like, transactional nature of US-China cooperation creates an environment where the two countries can work together without upsetting the aggressive factions within their respective countries.

      When accounting for these dynamics, the most likely scenario to play out under the Biden administration is stable deterioration. Stable deterioration recognizes the continued decline in bilateral relations brought about by the deviating trajectories of the two countries but understands that there is a limit to that decline. Both countries accept collaboration when interests align, but the nature of cooperation is transactional. Through managing competition and transactional cooperation, a new status quo in the US-China relationship will develop.

      This scenario assumes that neither President Biden nor President Xi perceives any value in the destruction of bilateral relations, but both recognize that competition is unavoidable. Both countries will continue to pursue their interests in the region, and neither will apologize for it. But both the United States and China will work together to develop a new relationship that allows them to compete without the total abandonment of the relationship.   

      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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      In China’s Net City, Opportunity Comes at Uncertain Costs

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      The one thing the city of Shenzhen — whose nearly 13 million people comprise the industrial engine of China’s Guangdong province — seems unwilling to reimagine is its name. The name Shenzhen, which loosely translates to “irrigation ditch” or “drainage dump,” is the only piece of the city’s incredible story that remains stuck in the past.

      Beginning in 2020, Shenzhen, in partnership with Chinese tech behemoth Tencent and NBBJ Architects, embarked on the design of a coastal, sustainable, state-of-the-art neighborhood called Net City to serve as the exclamation point capping Shenzhen’s status as China’s Silicon Valley. And yet, upon its completion in 2027, Net City, like Shenzhen itself, will represent far more than just another technology company’s tricked-out corporate campus. In fact, Net City might just set the global standard for urban development in the 21st century. That is if it can navigate the perilous waters that have sunk so many similarly intentioned projects in the past.

      Policies, Principles, People

      Green, tech-infused infrastructure is no longer groundbreaking in and of itself, but neither is the desire of major global firms to directly fund urban investment as a business strategy. Examples of this often quixotic foray range from Google’s disappointing but understandable discontinuation of investments in a Toronto smart city project to Fordlandia, Ford Motor Company’s failed Amazonian utopia chronicled brilliantly in Greg Grandin’s 2009 award-winning book. For both the Googles of today and those of generations past, it appears that products remain significantly easier to manufacture than physical places.

      Any local economic development professional, or for that matter anyone who has tried to renovate a kitchen, will tell you that construction projects, no matter their scale, are marked by an eternal struggle between the perfect and the possible. What, then, can set Tencent’s Net City apart from these previous failures? To borrow the time-honored language of geopolitical analysis, the potential answers come in three “buckets”: policies, principles and people.

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      On the policy front, the analysis must begin with the fact that there exists no better example of the opening of markets, however gradually and cautiously, as an accelerant for innovation, growth and prosperity than Shenzhen. It is stunning how much economic dynamism has been unleashed in this former fishing village over the past few decades, and the same innovation-spurring economic policy framework that enabled the city’s rise will similarly nurture the growth and ongoing vitality of the Net City project as it matures.

      That said, Shenzhen is not the only part of China that has grown. And, in immediate relevance to Net City, it would not be the only place where China has invested untold billions only to end up with what are commonly referred to now as ghost cities. A Net City skeptic might point to both the ambiguous nature of the true costs of this ambitious urban development and those still unoccupied, debt-funded townscapes littering China’s interior still awaiting their first residents as the fodder for their wariness.

      Product and Place

      Skeptics are also right to cite the lingering uncertainty of COVID-19 and fissures with nearby Hong Kong as risks to the sizable foreign direct investment Shenzhen has enjoyed throughout its rise. While the Chinese government and Tencent have every incentive to ensure the successful development of Net City, even these giants are not immune to the conditions of the world economy and thus should double down on the (relatively) open policy frameworks and diversified, reliable financing strategies that have thus far enabled Shenzhen’s rise.

      Next, as it relates to the principles upon which Net City has unapologetically been founded, its focused, intentional blending of work and leisure with the natural world place sustainability at its core in a manner and at a scale no previous corporate community can claim. Limitations on cars in favor of pedestrian-friendly walkable spaces coupled with reliance on renewable energy sources will provide a rising China with beautiful, tangible evidence that it, too, is taking steps to combat climate change and to shape the next century of life on this planet in ways the rest of the world might cheer.

      These commitments to sustainability, while encouraging, cannot only be for show. Net City provides China with an opportunity to demonstrate not only its desire to lead the world as a center of innovation, but as an upholder of the shared values and responsibilities that come with the terra firma for any global power.

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      Lastly, as it relates to the people who will someday call this new neighborhood home, it is possible that no single neighborhood in the world has ever rooted itself so enthusiastically in the philosophy of user-centered design as Net City. The blurring of lines between work and play to come upon its completion will pale in comparison to the implications of Net City’s more meta-level, but no less intentional, blurring of product and place. But just as fatefully as the designers of Fordlandia discovered that places are not products, so too must Net City’s master planners remember that people are not products either.

      Net City’s development has begun at a moment when the familiar dueling concepts of work and life have also merged into one amorphous, quarantine soup of time and space. While billions around the world cannot wait to return to certain elements of pre-COVID work-life balance, a more realistic forecaster will admit that work and life have become intertwined in ways that have transformed experiences on both fronts and will not soon be undone.

      This march may appear inevitable, but it remains an open question how much further people will willingly participate in the elimination of boundaries between home and work, of private and public spaces and of restrictions instead of rights. Whether discussing a new piece of technology or a new smart city, the tired bargain between new features and old freedoms is a false one. Smart cities need not — and should not — dangle the possibility of positive environmental outcomes behind the acceptance of stricter, tech-fueled surveillance states.

      The ongoing development of this initiative will fascinate global analysts for the majority of the next decade that stands to reveal the level of commitment its designers have to the lofty promises they have made at its outset. But beneath all that potential and possibility Net City might also reveal the answer to a deeper question: Is the internet a place we want to live?

      *[Fair Observer is a media partner of Young Professionals in Foreign Policy.]

      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 Road Leading to the India-China Standoff

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      The reason for the China-India standoff in the Galwan Valley may not be the oft-mentioned construction of the Darbuk-Shyok-Daulat Beg Oldie (DSDBO) road. The new thoroughfare improved Indian logistics in the Ladakh area, meaning that supplies and troops can be deployed with far greater speed. While the DSDBO might have irked China, Beijing has deeper …
      Continue Reading “The Road Leading to the India-China Standoff”
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      In Asia, a New Kid on the Trade Bloc

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      History undergoes serious change thanks in particular to slow events that fly below the media’s radar. Focusing on dramatic, immediate events, the media tends to neglect the major shifts that unfold over time. Paradoxically, slowly developing events that often go unreported tell the true story of history. Most often, the exciting, explosive events that dominate the news merely serve to accelerate longer-term trends.

      There is a simple scientific reason for this. Systems react immediately to dramatic events that occur quickly and unexpectedly. They typically mobilize their defenses to improvise a rapid reply. Rather than signaling change, such actions serve to protect and reinforce the status quo.

      The 9/11 attacks, clearly the most dramatic event of the past two decades, provoked a massive response from the US government. The effort to oppose the emergence of the new shape of terrorism appeared to mark a decisive shift in contemporary political history. The response consisted of a global military alliance intent on defending the prevailing “rule of law” and the elaboration of a powerful security state.

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      The effort piloted by George W. Bush and Tony Blair ended up simply reinforcing the focus of Western nuclear powers on the idea that sophisticated military technology provided the key for governing the world. It confirmed and consolidated the long-term trend of building the entire Western economy and culture around the American military-industrial complex.

      Distracted by a relatively meaningless transfer of power in the US following Joe Biden’s election and other colorful events such as the comic melodrama of relations within British Prime Minister Boris Johnson’s chaotic Brexit team, today’s media have paid scant attention to one event of monumental importance that took place on Sunday. The event itself was unremarkable, but it is a powerful indicator of historical change. The signing on Sunday of the act that brought Asia’s Regional Comprehensive Economic Partnership (RCEP) into existence marked a crucial moment in a slowly evolving shift that began nearly a decade ago and will have a profound impact on history in the coming years.

      In its article on the event, Al Jazeera quotes one American expert, Jeffrey Wilson, who sees RCEP as “a much-needed platform for the Indo-Pacific’s post-COVID recovery.”

      Today’s Daily Devil’s Dictionary definition:

      Post-COVID recovery:

      The idea which some people consider to be phantasy that the global economy may some day return to normal once COVID-19 is eradicated.

      Contextual Note

      The New York Times notes that RCEP has been in the plans for eight years and describes it as “designed by Beijing partly as a counterweight to American influence in the region.” In other words, this is a chapter of a story that lives within the context of a massive and continual decades-long shift of momentum in the global economy. The center of gravity of the global economy has been silently but steadily migrating from the North Atlantic following World War II on a south-eastward course toward Asia.

      Back in 2015, Reuters market analyst John Kemp pointed to the West’s failure to sense this movement, stating that “Most western policymakers and journalists view the world economy through a framework that is 10-15 years out of date.” He further points out that “India’s economy has also started to become a major source of global growth, which will ensure the centre of gravity continues to move more deeply into Asia over the next 50 years.” Analysts who have even attempted to assess the speed of the shift appear to agree on a “rate of about 100 kilometres or more per year.” It may have accelerated since 2015, and even intensified as a consequence of the implicit isolationism of Trump’s “America First” philosophy.

      Embed from Getty Images

      Fearful of the threat to US hegemony posed by the RCEP, the Obama administration launched the Trans-Pacific Partnership (TPP), designed to eclipse the RCEP and protect some of the key historical advantages that underpinned US economic hegemony. Once Trump decided to leave the TPP, the US could no longer take advantage of its provisions to protect industrial property rights or oblige other nations to respect unified labor standards.

      The US has literally been left behind in the race to define and enforce the rules that will govern commerce and economic development throughout the Asia zone over the next 50 years. Most commentators suspect that once president-elect Joe Biden is in office, he will not in the short term make an effort to catch up. In the midst of a complex health and economic crisis, there are other priorities. But Jeffrey Wilson’s comment about “Indo-Pacific’s post-COVID recovery” reveals that Asia, under China’s leadership, today has a clear head start and can set the tone for what a post-coronavirus world will look like. This is a question every nation is grappling with. There are no obvious answers. But there can be little doubt that the world that emerges once COVID-19 is completely under control or eradicated will be very different from what preceded the pandemic.

      The Times signals the fact that “to some trade experts, the signing of the R.C.E.P. shows that the rest of the world will not wait around for the United States.” Many commentators have noted that four years of Donald Trump have convinced European leaders that depending on the ideological and geopolitical framework provided by the US is too risky an engagement. It may even transpire that, despite the intensified military cooperation between India and the US directed against the Chinese threat, as reported in this column by Vikram Sood, Atul Singh and Manu Sharma, India could eventually be attracted to the RCEP. Security is one thing. A humming economy is another.

      India could, for example, be positioned to profit from a key feature of RCEP. The Times quotes Mary Lovely, a senior fellow at the Peterson Institute for International Economics in Washington, who notes that “R.C.E.P. gives foreign companies enhanced flexibility in navigating between the two giants. Lower tariffs within the region increase the value of operating within the Asian region, while the uniform rules of origin make it easier to pull production away from the Chinese mainland while retaining that access.” Narendra Modi’s India has not yet managed to fulfill its promises to expand manufacturing in India. Could RCEP be the key to providing conditions favorable to that evolution?

      In short, the world is faced with a formidable number of variables that combine in a variety of different ways. As Brexit demonstrated, today’s political alignments can be nullified in a trice as the perception of economic opportunities and the pressure of uncontrollable crises such as the COVID-19 pandemic lead to new geopolitical configurations. Those trends are far more powerful than bilateral agreements.

      Historical Note

      Asia’s Regional Comprehensive Economic Partnership will only begin to produce practical effects two or three years down the line. But it already opens channels of communication and coordination between fifteen countries. This will not only confirm the shift of the global economy’s center of gravity but also accelerate the shift toward a new power relationship between the US and China. As the recent presidential campaign highlighted, Americans tend to see this as a binary relationship. Yet all the indicators point toward a multipolar reordering.

      The Times article reminds readers of the historical situation when RCEP was first proposed: “The prospect of China’s forging closer economic ties with its neighbors has prompted concern in Washington. President Barack Obama’s response was the T.P.P.” Trump’s action upon taking office of killing the TPP before it could be signed opened the door to the eventual 15 nation agreement, with the roles of the US and China inverted. Obama designed the TPP to allow China in through the back door. RCEP is designed to allow the US in through the back door.

      The world awaits the evolution and hoped-for denouement of a series of crises nested each within the other. However painful and disruptive, these crises have the merit of signaling the existence of a common interest for all of humanity in stark contrast with the traditional model of geopolitical reasoning based on national rivalries. It is in everyone’s interest to keep our eyes fixed on the slow but deep movements of history as well as the superficial ones that the media throw in our faces every day.

      *[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