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Europe can still salvage this Nato summit – here’s how

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The Telegraph, 11 July, 2018

The first day of the Nato summit has confirmed the worst fears of Nato’s alliance managers. Despite a seemingly promising Summit Declaration confirming defence for Ukraine and adherence to the Wales 2014 commitments, many problems remain unresolved.

Nato’s latest gathering risks turning into a sham, but Europe can still turn it around

In a similar vein to the letters sent to specific Nato member states thought to be shirking their contributions, President Trump launched into a surprising attack on Germany, asserting that they are “controlled by Russia”. The remark – and the large helping of irony that came with it – provoked German leader Angela Merkel to respond in kind, stating that Germany did quite enough for the alliance, contributing the second largest number of troops to the alliance.

While most Nato leaders will most likely be lining up behind her in this unstatesmanlike confrontation, the fact is – as I have written before – Trump is completely correct: Germany is not doing enough. Given its size and leadership role in Europe, its buck-passing cannot continue indefinitely without pulling the alliance into disarray and eventually decline.

At a recent closed door round table hosted by the Henry Jackson Society in cooperation with Nato in Westminster, Sophia Besche, a research fellow from the Centre for European Reform, admitted as much, citing a recent report on Germany’s military. The report, issued by the German Parliament’s Armed Forces Commissioner, Hans-Peter Bartels in February this year found that overall

  • the Bundeswehr lacks basic equipment (like winter clothing and tents) for Nato missions
  • Germany has a shortage of operational tanks and helicopters and does not have enough parts to maintain those it does have at full readiness (it went from 5,000 tanks in 1990 to 236 in 2017, with many of these being non-operational)
  • Germany lacks enough ships to take part in Nato, EU, and UN missions

​However, rather than chiding the Germans endlessly about not meeting the two per cent, what is necessary is a bold start by all sides in order to rescue the situation in short order. We are speaking about the future of the Western alliance, one of the largest and most advanced military alliances in the modern world. And it’s democratic and filled with overarching liberal ethos. We simply cannot let it walk itself into oblivion. What is required on all sides is some steps toward each other’s position.

We are speaking about the future of the Western alliance, one of the largest and most advanced military alliances in the modern world

First of all, get rid of the two per cent benchmark. Despite the ease of this benchmark, it has become so politically toxic as to be useless. It seems only to get backs up and there are lots of good reasons on why it is not useful.

Second, replace the two per cent benchmark with a capabilities agreement, where member states agree to not only implement the four 30s plan (30 battalions, 30 fighter squadrons, and 30 naval vessels to be read in 30 days), but also to have a baseline of capability, based on meaningful force plans.

Third, create a mechanism by which a new mechanism within Nato the organisation monitors the capability commitments of states to Nato own’s force structure, including whether all states are meeting or failing to meet their targets. This agency should be compelled to make an annual public report.

Fourth, stop grandstanding about the US President. Despite Merkel’s lofty rhetoric about Germany defending the liberal order, German spending has barely grown while Trump has doubled US spending for the European Defense Initiative from $3.4bn in 2017 to $6.5bn.

Fifth, stop pointing to development aid as a contributor to security. The fact is that when all states do this, Germany still does not rank particularly high in this regard. Attempting to use aid to sideline one’s commitments to one’s allies is bad alliance politics. Aid won’t stop Putin’s aggressive foreign policy.

Sixth, be willing to engage on the importance Nato with national publics. One gets the sense from German policy analysts and commentators that those who argue for increased military spending are considered to be “far right” or extreme. The only thing extreme in this scenario is Germany’s complete detachment from the concerns of its Eastern neighbours. Germany’s political leadership has completely failed to make these arguments in a meaningful way to their own people.

Attempting to use aid to sideline one’s commitments to one’s allies is bad alliance politics

As one report by CSIS – a Washington think tank reveals – when one looks at the actual force numbers, it is clear that there is a serious problem in Europe. Even when one considers the shrunken Russian military, it is frightening that in 2014, Putin was able to throw a “snap exercise” with 150,000 men right on Europe’s doorstep. Mustering everything they had and planning for nearly a year, Nato threw its own large exercise – with just under 40,000 men.

As one of Europe’s primary defence providers and one of Nato’s founding nations, Britain must act as a bridge between a hardening US position and Germany’s entrenched stubbornness. Pulled between the both, the alliance could fragment, losing any serious capability to provide security for the continent. This would be a disaster for the UK and a windfall for Moscow and Beijing. Despite our own domestic travails – does any good news come from the Continent? – London must continue to help keep Nato together.

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Sydney Morning Herald, Latika Bourke, 30 June, 2018

“I think the British government has now woken up to the fact that the Chinese are not on our side on a number of issues,” [Lord] Howarth says.

John Hemmings, a close observer of China at the Westminster think tank the Henry Jackson Society, agrees.

“Despite Brexit, some aspects of UK government have quietly begun to shift into the new paradigm vis a vis a rising geopolitically ambitious China,” he says. “On the home front, they have begun to follow the lead of countries like the US, Germany and Australia in screening Chinese state-led investing into sensitive sectors of the economy.”

 


It’s not just Rolls-Royce: China is stealing every technology that isn’t nailed down

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The Telegraph, 16 June, 2018

The arrest two days ago of a Rolls Royce engineer for allegedly spying on his employers on behalf of China did not shock many in aerospace. It’s no secret that China is attempting to develop an indigenous aerospace industry and will do everything it can to get its hand on modern Western-designed jet engines. Such is the complexity of these engines that they are virtually impossible to reverse-engineer.

But this story has become a bit of a motif of late. Nearly every week, we hear of another story of alleged hacking of corporate secrets by some Chinese entity – or, worse, resorting to outright robbery, as might have happened to Pelamis Wave Power, a Scottish alternative energy company that saw a Chinese start-up appear only months after its offices were burgled.

So what’s behind it all? What is driving these stories? Well, to some extent, China is a driver of its own success and a driver of its own reputation. Over the past two decades, China has been implementing policies that some say unfairly help its firms to acquire foreign technology, either at home in the Chinese market, or abroad, when they invest in overseas markets, including the British one.

Rather than developing indigenous technologies, they prefer to steal, beg or borrow those of others, leapfrogging up the technology ladder. And they don’t mind stooping to different means: China’s current domination of solar energy technologies is alleged to have come after Chinese hackers stole files on panel technology from Solar World America. The subsequent government support for Chinese firms to build solar panels at much cheaper prices than US and European firms put many Western solar power companies out of business.

Are these policies illegal according to the World Trade Organisation? Indeed, they are, but getting them to that stage takes political support from their own governments.

The Chinese government policy most associated with this issue is Made in China: 2025, which has been widely criticised by the US government, the German government, among many others. According to James Lewis, a technology expert at the Washington-based Center for Strategic and International Studies (CSIC), the policy seems to have three stages.

The first is to require foreign firms attempting to enter China’s market to hand over their intellectual property in critical sectors such as robotics, alternative energies, quantum, and new energy vehicles. The second is to provide government subsidies to Chinese firms to go out into the international market and sell these newly-acquired products for cheaper prices. The third is to dominate these sectors by driving out foreign competitors.

According to Peter Navarro, an economic advisor to Donald Trump, these sectors have a strategic implication for the future of Western security, as national governments look more and more to the high-tech sector for the next generation of military technologies.

The news this week that the European Council and European Parliament have passed investment screening mechanisms shows that Western governments are seeking to maintain a level playing field for their own firms and stopping buy-outs that either seem driven purely by the desire of China to gain intellectual property with military connotations. Germany passed legislation last year screening investment and the US has also tightened up its own Committee for Foreign Investment in the United States (CFIUS), making sure that Chinese firms cannot simply swoop in and buy high-tech firms and give their IP to Chinese competitors.

The May government is current considering a White Paper on investment-screening, having already tightened up the current Enterprise Act (2002) and broadened the remit of the Competition and Market Authority (CMA). Given China’s voracious appetite for British high-tech and the impact its theft has on British companies, this is a welcome and appropriate response. Britain is open for business, but in a fair way that gives all sides a level playing field.


Hindustan Times, Prasun Sonwalkar, May 27, 2018

Britain needs to focus on the Indo-Pacific region to avoid being caught between two worlds– not quite a European power nor a global power – post Brexit, a leading think-tank has said .

To do this, Britain will need to go to Asia by sea, even if it may remind many of its erstwhile empire built mostly through its naval power, a study titled Global Britain in the Indo-Pacific by the influential Henry Jackson Society says.

The analysis by John Hemmings has been released in the context of the recent visit of Prime Minister Narendra Modi when, for the first time, the phrase “Indo-Pacific” was mentioned in an India-UK defence statement on future plans of the Royal Navy and Indian Navy.

The report says: “Despite the threats and challenges on the UK’s periphery like Russia and the Middle East, the fact is the future of global trade, global geopolitics, and global power are trending toward Asia and the UK must go there or risk being left behind.

“There are also trends in maritime trade and maritime security that mean that if Global Britain is going to go to Asia, it must go by sea. While such maritime arguments sound like a Britain harking back to a glorious past, in fact a Global Britain that renews its naval and maritime commercial capabilities will one that is preparing for a prosperous and engaged future.”

Mentioning the so-called “quad countries” of India, Australia, Japan and the United States, the report sees much potential for Britain to engage closely with the group in the context of China’s growing presence and plans in the area, including the Belt and Road Initiative.

Hemmings writes: “Britain and India are developing robust security ties across a broad range of ties; I suggest that the Indian Navy and the Royal Navy – who are brothers with a common history and common traditions – could do so much more together, both bilaterally, or in conjunction with India’s other partners: France, Japan, the US, and Australia.”

Besides the existing strengths in India-UK ties, the report says that Britain could work with Japan to financially support India’s desire to match China’s infrastructure projects. It also sees the potential to develop a UK-India-France trilateral maritime cooperation.

The report specifically recommends that Britain offer diplomatic support when key states – such as India, Singapore, or Japan – come under pressure within the region. It also calls for the utilisation, along with India, of the Commonwealth to bolster democracy with other states in the Indo-Pacific such as the Maldives, Fiji, Malaysia, and Sri Lanka.

It also calls for the UK investing in Asian language programmes at British universities, particularly focussing on Hindi, Japanese and Chinese.


Global Britain in the Indo-Pacific

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Henry Jackson Society,  22 May, 2018

The weight of the global economy is going to Asia, it is going by sea – and the United Kingdom must act now if we are to build a truly Global Britain, according to a new report from The Henry Jackson Society.

Global Britain in the Indo-Pacific notes how the future of both the economic order and the rules-based international system will be decided in the Indo-Pacific. China’s growing naval power, its militarisation of sea lanes and its Belt and Road Initiative indicate not only a power determined to become wealthy, but one determined to set the rules of the coming age. However, many of China’s Asian neighbours seek to defend rules over power.

With Britain looking for new opportunities abroad in the wake of Brexit and the economic and demographic realities pointing east, the report argues that the UK must reinvigorate its partnerships with historic allies in the region, not least India and Japan – while also redeveloping new “special relationships” with Commonwealth countries such as Singapore.

The report highlights that:

  • The global middle class will grow 50% by 2030, with much of that growth taking place in the Indo-Pacific – spawning hundreds of new cities, industries and opportunities.
  • Over 90% of global trade is carried by sea and that maritime trade will only increase as regional powers struggle to bring consumer goods and energy to these new cities.
  • China seeks to exert control over these sea lanes in order to protect its own sea lanes, constrain India’s rise and set the rules for the coming era.
  • The Indo-Pacific is becoming a forum for competing visions of international relations – with many of Britain’s historic allies beginning to align in loose security groupings based on respect for maritime conventions and law.
  • The UK, dependent on the rules-based order and the sea lanes in the region, will ultimately have to adopt the “engage and balance” approach that most Asian powers have adopted towards China.

While endorsing the ‘cautious engagement’ approach of Prime Minister Theresa May to China, the report recommends that Britain should:

  • Seek a number of overlapping security relationships across the Indo-Pacific with large numbers of partners – including the ‘Quad’ of the United States, Japan, India and Australia.
  • Create “special partners” in ASEAN – not least Singapore, where Britain should explore the possibility for regular ‘2+2’ meetings between the two countries’ defence and foreign ministers.
  • Renew her security relationship with Australia – a useful “node of access” for the UK, as Australia is developing closer relations with key allies including the US, Japan and France.

Standing up for the rules-based international order in the face of the challenge from China should also involve:

  • An incremental increase in Britain’s defence spending, from the current 2% of GDP to 3%. This, with a particular focus on the future of naval and air power, would equip the UK with the requisite tools to have a truly ‘global’ influence.
  • Invest in soft power diplomacy to improve ties with Asian countries. These should involve a rise in funding for language programmes at British universities, particularly in Japanese, Chinese and Hindi; and providing help financing infrastructure development across the region, to counter the Belt and Road Initiative.

Read the full report here.


Global Britain and an emerging India in the backdrop of the Commonwealth Summit

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Observer Research Foundation, with Tanya Sen, 4 May, 2018

British civil servants responsible for the recent Commonwealth Heads of Government Meeting held in London breathed a sigh of relief seeing India’s Prime Minister Narendra Modi walk down the aircraft stairs. Waiting alongside the High Commissioner to greet Modi was Boris Johnson and a retinue of senior officials from the Foreign and Commonwealth Office. There had been a lot riding on Modi’s attendance; after all, the leader of India represents more than 50 percent of the Commonwealth’s total population. It is as much an Indian endeavour as a British one, in that sense. Certainly, London’s diplomatic corps were out in style to greet leaders from 53 countries and to explore the future prospects of an institution — the Commonwealth — that might be a key plank in Britain’s global posture. Modi’s attendance was crucial to the event, and given the fact that no Indian leader had attended in 10 years, his acceptance was a significant message to London. Back in India, the media portrayed Modi’s attendance as an effort to step up its role across global forums. While the overall summit has been judged largely a success, the real significance is where an emerging India stands in relation to a Global Britain.


Modi’s attendance was crucial to the event, and given the fact that no Indian leader had attended in 10 years, his acceptance was a significant message to London.


Brexit is occurring at a not⎯auspicious time. The current international political order is in flux, perhaps the victim of its own success. As this ORF paper notes, it is a “period of unprecedented global structural changes and shifts in balance⎯of⎯power equations.” While some have portrayed this as “the rise of the rest,” this has evolved into a more traditional binary — with the rise of China and India falling into geostrategic, Mahanian patterns over the future of what is now being called the Indo⎯Pacific. The New Great Game is manifesting itself in both maritime and naval interconnectivity — and the implied control of sea lanes and ports — and in “development diplomacy.” Xi is redrawing the map of the Asian landmass with the Belt and Road Initiative, while securing China’s energy and trade routes through a ‘String of Pearls’. India, surrounded — and some might even say “contained” — by China’s grand projects, is wary of Beijing’s ambitions in its near⎯abroad. Are these projects built to extend Chinese power or diminish India’s? Of late, view from India has pointed toward the latter of these two options.

The New Great Game is manifesting itself in both maritime and naval interconnectivity — and the implied control of sea lanes and ports — and in “development diplomacy”.

In response, India has turned East with its Act East Policy under which it is improving relations with countries like Vietnam that Beijing might view to be inside its own 9⎯dashed sphere of influence. Paralleling Beijing’s own tactics in Sri Lanka, the Maldives, and others, New Delhi is using trade and diplomacy as a basis for these relations, and interestingly promoting Buddhism as a unifying element. In direct response to China’s apparent encirclement, India has also been working to become more active in its own maritime domain by initiating agreements and projects with its neighbours and allies. One major project, which might push Indian life into the Asian continent is the new International North South Transport Corridor (INSTC) linking India, Russia and Iran by a land route through 13 countries. This year will mark the official operation of this trade route, potentially leveraging Indian soft power in the region. While the recent Xi⎯Modi meeting was designed to press the “reset button” on bilateral relations, structuralists will argue that the two Asian powers are bound to continue to compete as they rise.

No longer the great imperial power it once was, Britain has a delicate dance to perform in this grand sweeping maelstrom of events. Global Britain remains an aspiration, a dream, and perhaps even — a slogan for UK trade missions. But there is room for optimism as well as cynicism, given the UK’s own government language on the “rules⎯based order.” In freeing itself from the European continent, Britain’s primary concern remains Russia. But there is a genuine search for a new global role among London’s foreign policy elites. One saw this in the miles of red carpet rolled out for its historical partners in the Commonwealth and the Anglosphere. The dynamics in the Indo⎯Pacific are far away, but they remain of deep strategic interest to London because of the maritime and trading aspects. After all, many of the region’s newest powers are merely mimicking what Britain perfected over 300 years — the synthesis of great power strength through a maritime trading empire.

In the modern era, the Sino⎯Indian competition compels Britain to a certain posture. While China remains an important trading partner, its links to India are much greater, across the political, legal and civil sectors, and across peoples. Lest we forget, 1.5 million Britons are of Indian ethnic origin; the largest minority in the UK. The presence of such a strong diasporic network enriches cultural exchange, forming a ‘living bridge’ between the two countries. While there is a large scope of improvement in the areas of trade, business and economy, there seems to be hints of optimism pointing to the outlooks. Modi’s April visit saw the two agree to a new Tech Partnership and a Trade Partnership, with the motive of driving a 15 percent jump in trade. Given India’s population, its rapidly advancing economy and its growing importance in the world order, Theresa May’s government is only one of a long line of recent Prime Ministers who view the bilateral is punching below its weight.

While it is too early to tell, the possibility that over the next few years the Commonwealth might become an Anglo⎯Indian project, is now in the air. After all, if the UK gives a greater role for India, it becomes a tool for Delhi to exert a global leadership that it has yet to satisfy through BRICS and the SCO. For its part, by aligning with Delhi, London takes a major step into the Indo⎯Pacific as a strong partner to the rising power that respects democracy and human rights. It also enables the UK’s elites to refashion rhetoric around the rules⎯based order, into a framework for Global Britain. On the other, India would have to itself ‘a prospective forum for its power projection’ in which China is not a member. The India⎯Commonwealth Small and Medium Enterprises (SME) Trade Summit hosted in 2017 is an example of the scope of integration the Commonwealth could achieve in the future should member countries be given a greater say. One cannot disregard the political scope of an institution with 53 member countries spanning five continents in today’s increasingly interlinked and complex world order. Britain and India are both in need of ways to further their foreign policy agendas and strengthening bilateral ties. As an international platform, the Commonwealth could play a pivotal role in the pursuit of their short⎯term and long⎯term strategic goals. To quote Modi, “Once we have decided to do something, we can go miles ahead.”


The Telegraph: Brexit Britain should be wary of striking quick trade deals with China, Indian CEO says

The Telegraph, James Rothwell, 5 March, 2018

“Experts pointed out that several countries have forged close trade links with China while co-operating with India on security issues without running into major trouble.

‘There is no contradiction in strong economic ties with China on the one hand, and strong security ties with states like Japan, India, and the United States,’ said John Hemmings, the director of the Henry Jackson Society’s Asia Centre.

‘Indeed, all of those states have themselves very robust economic relationships with Beijing.'”

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