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    Central Asia
     Aug 19, 2008
Page 2 of 2
China seeks Caucasian crisis windfall
By M K Bhadrakumar

commentary offered so far in the People's Daily on August 12 called for a cessation of hostilities in the spirit of the Summer Olympic Games and disapproved of the Russian intervention, which, it said, "rapidly escalated the tension and raised international concerns and public anxiety".

It underscored, "Some analysts even showed the concern that military antagonism could evolve into a new version of the Cold War." There was some advice to the Kremlin: "War is not the way to settle conflicts. The only way to effectively resolve disputes is to disregard old grievances, cease hostilities and negotiate for peace. Only in the backdrop of peace and in the framework of

 

constructive negotiation can a win-win deal be reached."

Significantly, Beijing does not figure in the list of capitals that the Russian Foreign Ministry has been in touch with during the past 10 days.

Reciprocity would have meant a Chinese endorsement of the Russian stance. Indeed, that was how Moscow reacted when trouble broke out in Lhasa in Tibet and China found itself at the receiving end of Western opinion, especially in the US's estimation. Evidently, China estimates it deserved whole-hearted Russian support, and any comparison between Tibet and the Caucasus is untenable. True, there are no analogies in international affairs. But the fact remains that Beijing also affirms that the Sino-Russian relationship today is at an all-time high. A long-standing border demarcation has just been completed.

Beijing's compulsions
Could the coincidence that three generations of the Bush family were joyfully holidaying in China last week and enjoying the Olympics have worked on the Chinese mind? It is hard to say. Looking back, Beijing should have a sense of gratitude to the Bush family. The George W Bush era has been an extremely productive eight-year period for China, notwithstanding what much of the world community might say. It is entirely conceivable that Beijing doesn't want to spoil the party.

Besides, there are calculations to be made. What is in it for China? Beijing will be extremely careful on issues concerning national sovereignty, separatism or anything that smacks of the right of self-determination. That's for sure. And in the Caucasian cauldron, all these dangerous elements are brewing. China will face a nasty predicament if Moscow endorses the independence of South Ossetia and Abkhazia - an eventuality that by no means can be ruled out if Rice succeeds in her mission in Brussels on Tuesday.

As Beijing would see it, Moscow has already entered a dangerous "no-go" zone by conducting military operations inside Georgian territory, by putting conditionalities on the withdrawal of its forces from Georgian soil and by loudly speculating on the (lack of) realism in laboring to preserve Georgia's territorial integrity.

In the Chinese perspective, independence of South Ossetia or Abkhazia is unacceptable, as separatism is evil and self-determination is a dangerous principle. Period.

Shades of Taiwan, Xinjiang and Tibet. There are other considerations. China would see that US-Russia relations are entering a turbulent period. On the contrary, there is reason to hope that neither Senator John McCain nor Senator Barack Obama, if elected president, would substantially alter the benign trajectory of the China policy set during the Bush era. Historically, in the highly complex matrix of US-Russia-China equations, it only worked to China's advantage if US-Russia relations frayed. A chill in ties with Russia almost reflexively prompts Washington to cultivate China. Some signs of it are already there.

US's differentiated approach
A differentiated approach towards Russia and China is already apparent in the US agenda regarding the deployment of the missile defense system. As a Russian commentator put it, "An analysis of America's global missile defense system shows that Washington is deploying its elements primarily in Eastern Europe rather than Japan, or other Asian countries or Australia. This is probably because Washington does not want to irritate China, which could respond by stepping up the development of its own missile program and increasing the number of intercontinental ballistic missiles on combat duty."

China doesn't quite bleep on the US radar as a strategic power of consequence for another 20 years. But Russia has been yesterday's threat and today's challenge, and its resurgence promises to make it a potential threat tomorrow.

As well-known Sovietologist Professor Stephen Cohen wrote recently, "Despite its diminished status following the Soviet breakup in 1991, Russia alone possesses weapons that can destroy the United States, a military-industrial complex nearly America's equal in exporting arms ... and the planet's largest oil and natural gas reserves. It also remains the world's largest territorial country, pivotally situated in the West and the East, at the crossroads of colliding civilizations, with strategic capabilities from Europe, Iran and other Middle East nations to North Korea, China, India, Afghanistan and even Latin America. All things considered, our national security may depend more on Russia than Russia's does on us."

Therefore, the US is not going to limit itself to Poland and the Czech Republic, but once it refines the technology of creating a missile defense deployment in Poland, it will be on the lookout for building more positioning areas, and for the next few years at least, Washington will have its hands full confronting Russia with dozens of positioning areas on its borders. The big ticket will be Ukraine's induction, a country which already possesses advanced missile technologies of the Soviet era. In short, Washington's preoccupations on Russia's western and southwestern borders for the foreseeable future suit China perfectly well.

Russia's energy policies
But China also has to weigh the fallouts on Russia's future energy policies, which are of direct consequence to Beijing. As of now, Russia views Europe as the preferred market for its energy exports. This is despite Moscow paying lip service to Asian markets.

In real terms, Europe is competing with China for Russian energy supplies. This competition may begin to border on rivalry. According to the US Department of Energy, Europe's demand for gas will rise by more than 50% by 2025. There is simply not enough gas going for Europe to sidestep Russian supplies. (Russia already meets 30% to 50% of Europe's energy needs.)

Europe is now hoping to get Russia to feed the Nabucco pipeline, which was promoted by Washington in the first instance, ironically, as a project that bypasses Russian territory and reduces Europe's energy dependence on Moscow. Russian gas already reaches Turkey - Nabucco's hub - via the Blue Stream pipeline. Russia's Gazprom holds a 50% stake in the Baumgarten gas hub in Austria, which is the destination for Nabucco.

Curiously, a Nabucco spokesman was quoted last week as saying, "Nabucco was not planned to be an anti-Russian project, but to be a pro-European project. The main focus is to transport gas from alternate sources." China no doubt watches anxiously whether Nabucco undergoes a metamorphosis and becomes a Russian-European project. If that happens, Moscow would have even less interest in robustly developing China as an alternate market for its energy exports. The North Stream, South Stream and Nabucco - that will be far too much on the Russian plate.

Russia's energy policies in the coming period will largely depend on the political equations between Moscow and major European capitals. The stance that European countries adopt apropos NATO's further expansion will become a determinant of Russian energy policies. China, therefore, has every reason to probe how these equations are affected by the crisis in the Caucasus. Sino-Russian energy consultations are scheduled to be held in Moscow in October. As an energy guzzler, China will be a huge beneficiary if another Berlin Wall were to appear in Russia's relations with Europe at this juncture.

Ambassador M K Bhadrakumar was a career diplomat in the Indian Foreign Service. His assignments included the Soviet Union, South Korea, Sri Lanka, Germany, Afghanistan, Pakistan, Uzbekistan, Kuwait and Turkey.

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