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SPEAKING FREELY
High price to pay for overturning China arms ban
By Richard A Bitzinger

Speaking Freely is an Asia Times Online feature that allows guest writers to have their say. Please click here if you are interested in contributing.

The European Union recently dodged a bullet by refusing to take up the issue of overturning its 15-year-old ban on selling arms to China. Supporters of lifting the embargo, led by France and Germany, are unlikely to abandon their quest, however, and the ban is likely to come up again for review, perhaps as early as this summer. If it is lifted, the EU risks further damaging a trans-Atlantic alliance already strained over Iraq and other issues, with very little likelihood that its defense industry would see much, if any, benefit.

Advocates of ending the arms embargo - implemented, along with the United States', after the 1989 Tiananmen Square massacre - base their case on two arguments. The first is that China has "changed" - that Beijing has significantly reformed its system of government and its economy, and moderated its aggressive tendencies in the Asia-Pacific - and should be rewarded for this. France in particular has called the arms embargo "outdated" and says it no longer corresponds to the "political reality of the contemporary world".

Yet as recently as last December, the EU Parliament condemned China's human-rights record, while the president of the EU Commission stated in April that Beijing still needs to do more to show that it is making progress in this regard. At the same time, China continues to pursue double-digit increases in defense spending and to build up its military forces, particularly along the Taiwan Strait.

Supporters of overturning the ban usually add that the EU Code of Conduct on arms sales, which aims to promote "high common standards" for arms exports, will still apply, and will therefore prevent abuses when it comes to exporting arms to China. But the Code of Conduct - which is not legally binding in any case - explicitly restricts arms sales to countries that might use these weapons for internal repression, for external aggression, or where human rights are being seriously violated. If such descriptors do not apply to China, then where might they?

The second argument - that China is a huge, largely untapped market for Europe's beleaguered arms producers - is more cynical. But at least it's more honest. Beijing, which has greatly increased defense spending over the past decade, has been on a major shopping spree for foreign weapons. According to the Congressional Research Service, China has signed new arms-import agreements worth in excess of US$11 billion since 1999; in 2002 alone, it purchased $3.6 billion worth of foreign weapon systems.

Most of these sales have gone to Russia, which does not observe the arms embargo on China. Obviously, Europe would love to get in on the gravy train. To Europe's arms manufacturers and its governments, China - and indeed, the whole of the Asia-Pacific region - is just another market. In fact, it is an increasingly critical market for a regional defense industry that increasingly views itself as besieged by its US counterpart.

But ending the arms embargo is unlikely to result in Beijing buying German submarines or French-made fighter jets. European defense firms cannot hope to compete with Russia's sweetheart pricing or technology-transfer arrangement, plus there is the fact that Russian weapons are simply a better fit when it comes to the Chinese People's Liberation Army (PLA), based as it is on Soviet designs and technology. More likely, European arms producers would mainly provide Beijing with competing bids in order to extract better deals from Moscow.

Of course, Europe might be able to sell components or subsystems that could greatly contribute to the modernization of the PLA, particularly in such areas as command and control, communications, or sensors. But in that case, the EU does not need to end the arms embargo to allow the export of these items to China. The United Kingdom and France have, despite the arms ban, long permitted the transfer to China of non-lethal equipment such as helicopters, airborne early-warning radar, and jet engines.

So what does the EU stand to gain from ending the arms embargo? Actually, it is Europe's large commercial enterprises that stand a far better chance of benefiting than its defense sectors. Lifting the arms ban would amount to the political rehabilitation of China, in return for which Beijing could reward Europe by buying more passenger jets from Airbus, satellites from Astrium, or telecommunications systems from Ericsson or Siemens. China might also turn to Europe for nuclear power plants or high-speed rail systems. It is also worth pointing out that China is already a risk-sharing partner in Europe's Galileo satellite navigation project.

Of course, this EU-China coziness will come at the potentially high price of adding further stress to an already tense US-European relationship. Even if Europe fails to make any large arms sales to China, the damage done by explicitly overturning the embargo and visibly fracturing the once-unanimous Western stance on this policy issue will be enormous. And it will hand Beijing a significant victory: in effect, a de facto recognition of its post-Tiananmen human-rights policy.

So long as Europe views weapons sales to China in strictly an economic sense, it will clash with Washington, which has to deal with the regional military and strategic repercussions of these sales. Europe's defense industry is unlikely to gain much from lifting the arms ban, and certainly the trans-Atlantic relationship will suffer greatly. Only Beijing will be the big winner.

Richard A Bitzinger is associate research professor at the Asia-Pacific Center for Security Studies in Honolulu, Hawaii.

Speaking Freely is an Asia Times Online feature that allows guest writers to have their say.
Please click here if you are interested in contributing.


May 1, 2004



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(Apr 7, '04)

EU turns to India's arms market
(Apr 6, '04)

France, Germany seek to resume China arms sales (Feb 12, '04)

More Russian weapons go to China (Jan 30, '04)

 


   
         
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