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    Greater China
     Nov 11, 2006
China's four-play
By Chan Akya

With US President George W Bush in essence rendered to lame-duck status and Republican Party stalwarts such as Donald Rumsfeld missing in action, China has a unique opportunity to accelerate its path toward becoming the world's second superpower.

To achieve this objective, it has to placate ruffled feathers in the US government, implying that it will accept fresh concessions that would impose significant economic cost. In addition, China will 



have to engage the other three horsemen of the apocalypse.

The four horsemen
In a previous article that followed North Korea's nuclear tests, [1] I detailed the likely roles of the United States (war), North Korea (famine), Pakistan and Iran (pestilence and death) in an apocalyptic scenario. The key rationale underpinning that view was the likely continuation of a warlike mentality pervading the US, which pushes countries such as North Korea and Iran to the brink.

Indeed, it is not difficult to imagine that either North Korea or Iran (or both) could gamble desperately on a lack of proportionate response from the US in choosing to attack that country. While that scenario is unlikely in any normal society, neither country currently has a government that actually listens to its people; indeed, North Korea systematically starves its own people in order to devote all its resources to the maintenance of the Kim dynasty.

The key limitation for any US counter-strike would be the damage posed to friendly countries in the vicinity of the intended targets, viz Japan and South Korea in the case of North Korea, and Afghanistan, Iraq, Saudi Arabia and Israel in the case of Iran. In this context, I wrote the following:
A country that cannot stomach civilian losses and is limited from engaging in massive retribution will essentially have to rethink its strategic paradigm. In a matter of a few years, America will go back to defending itself domestically from hostile forces, rather than projecting its power globally. It is the end of the American century.
An expectation of likely hostilities, combined with a weak government, will force the US to accelerate its strategic decline. The vacuum this leaves in the world would be ideally filled by a number of countries ranging from the Eurozone, Russia and by a long stretch even India, but the most likely successor would be China.

The first task for China is to understand the likely spoiler role that will be played by a resurgent Democratic Party in the United States. The biggest worry by far is that China will become the favorite whipping boy of the US government and media in the next two years as the agenda for the next elections is laid out by both parties. I believe that to avoid a significant escalation in US opposition, China will allow its currency to appreciate by up to 10% every year starting early next year. I have noted in previous articles [2] that this would be disastrous for the country's financial sector in the absence of structural reforms. [3]

To defray this significant financial cost, China will have to show its strategic gains to its people, which it will do by engaging the other three horsemen, namely North Korea, Pakistan and Iran.

Handling Kim Jong-il
China 's biggest strategic embarrassment of late has been North Korean leader Kim Jong-il, whose decision to test a nuclear weapon was most likely done without consulting Beijing. In the aftermath, China deftly moved itself to the mainstream, by being the first major power to call for sanctions against North Korea. The tough talking also worked with North Korea, with Beijing confirming that Kim's crowd would not contemplate a second nuclear test.

While the overall situation has evolved to China's benefit, the same cannot be said for how the country will view Kim Jong-il in future. Destabilizing the equilibrium are also the changed tactics of Japan and South Korea, whose increased dependence on Beijing is a strategic positive. Thus it can be argued that it is not in China's interest to stabilize North Korea over the next three to five years, allowing, for example, a peaceful reunion with South Korea. Thus Beijing will play the Kim Jong-il card for a while longer, providing enough economic assistance to keep him in power, while paying lip service to the concerns voiced by the rest of the world.

Terrible twins
Compared with the task of keeping North Korea on a tight leash, handling Pakistan and Iran will be relatively simple for Beijing. Here, the self-preservation instincts of the leadership in the two countries, as against strategic considerations, play a big part in aiding Beijing.

Pakistan's military leaders can survive indefinitely as long as their populace sees India as the sole external threat. Given that a rapprochement between Pakistan and India is strategically impossible, a perpetuation of Pakistan's regime under Chinese tutelage is a given. As I mentioned above, the withdrawal of the US from the Asian arena makes it all the more automatic.

Iran is a tougher nut to crack, particularly given the interest shown by Russia, and the lack of geographical proximity that China enjoys with both North Korea and Pakistan. Even so, the two countries have been joining hands recently, as an article in Asia Times Online this week points out. [4] More than the obvious areas of cooperation such as in natural resources and technology, Iran also needs to have China on its side to avoid any over-dependence on Russia, which has in the past proved to be a fickle partner.

An interesting sidelight of the relatively close relations enjoyed by China with Pakistan and Iran is the fascination it evokes in certain circles, including The Edge forum and the Letters page of Asia Times Online. One correspondent pointed out recently that the Islamic countries remained good friends of China despite its poor treatment of Muslim ethnic minorities. It is my duty perhaps to point out that the correct conjunction in this case is not "despite" but rather "because". Persian, Arab and Turkish invaders failed to crack imperial China in any way similar to how they overran India (at least the former two). The memory of defeats has built into the Muslim psyche a grudging respect for China, much as their memories of selective victories against the West (such as in Afghanistan) embolden them.

It has also been a standard observation that Beijing cultivates its diplomatic channels more arduously than any other country; corrupt governments such as those in Pakistan and Iran are relatively easy targets in front of this machine.

Other contenders
Putatively, other contenders to fill the strategic vacuum would include the Eurozone, Russia and India. The first can be dismissed, if not entirely for demographic reasons, for simple political ones. The United Kingdom, Germany and France are not likely to see eye to eye on global issues any more than Saudi Arabia and Iraq are, therefore any attempts to turn an economically lagging continent into a global superpower would likely produce ridicule. Just think of all the French jokes you know, and then translate them into all the important languages in the world.

Russia certainly has the firepower to regain its status as a superpower, but is demographically destined for extinction sooner than President Vladimir Putin imagines. Lacking a will to fight is one thing, but lacking one to live altogether is a completely different matter. That said, Russia will continue to play a spoiler role for China in years to come. If the Eurozone gains a sufficient foothold in Russia, in the post-Putin era, it is entirely possible that the combined entity would pose a significant threat to both the US and China. Mercifully for the latter, it will be a relatively short reign.

As for India, the potential to perform is only exceeded by the country's record of disappointments. The current political situation is hardly conducive to economic growth, let alone any strategic paradigm shifts in external focus that would necessarily entail strong leadership and a clear understanding of objectives. It has been said that the entire Congress party leadership cannot muster a single backbone, let alone any strategic vision. As with Russia, India can certainly play a spoiler role to China, although its prickly history and frequent government changes render the job of potential suitors more difficult than perhaps the trouble is worth.

Notes
1. Not a major planet, Asia Times Online, October 11.
2. Indian, Chinese banks plunge at different rates, Asia Times Online, August 3.
3. Chinese reforms: The dog didn't bark, Asia Times Online, August 5.
4. Dance of the lion and the dragon, Asia Times Online, November 8.


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