Saturday, 26 November 2022
India’s Constitution is not static, but a living document (The Sunday Guardian)
Saturday, 19 November 2022
Global interests perish at the altar of Ukraine (The Sunday Guardian)
The only remaining hope for Zelenskyy is that NATO will enter the war in a full scope manner rather than indirectly through assisting Ukraine even at great cost to the interests of its own members.
Who was responsible for punching holes in the two Nordstrom pipelines? If Biden, Sunak, Macron and Scholz are aware of the actual culprit, sooner or later, the identity of the perpetrators will get outed despite their silence, smudging the reputation of these leaders for transparency and straightforwardness. What the world deserves are not just repetitive denials of culpability but the facts that have been uncovered in the investigation into the sabotage of a crucial infrastructure project. Just as it expects the Ukrainian government to list the identities of the many whom they claim were killed by Russian forces in Bucha, a revelation that has yet to be made. Why Biden, Sunak and Scholz are not seeking the release of the names of the Bucha killings has given rise to suspicions that the dead were Russian-speaking. If so, the question needs to be asked as to what was Russia’s motive in apparently killing people that were sympathetic to it? If the Russians did kill them, what explains them leaving a Bucha that was shown as strewn with dead bodies? If the boastful claims of the Ukrainian leadership that its forces are steadily squeezing Russian forces out of territory that had been earlier captured by them are true, the risk of Vladimir Putin using some of the more deadly weapons in his arsenal multiplies rather than chances of his accepting surrender. He is unlikely to follow the carefree path that President Biden took when he surrendered to the Taliban in Afghanistan in August 2021. That self-inflicted defeat was the start of Biden’s fall from grace where US voters were concerned. The Democrats are fortunate that the Republican Supreme Court as well as Donald Trump prevented the unpopularity of the White House from dragging Democratic tallies down. Their Senate win means that India may soon get a US ambassador after two years of waiting. An incoming envoy may try and end a situation where citizens of India wait 900 days for a US visa, in contrast to citizens of the PRC, who get such visas in a jiffy. As for the EU, the wait for a visa for Indians is reported to be 500 days, but less than 50 hours for a Chinese national. The constant chants of the US and the EU of “Viva Democracy” are clearly different from making available visas for citizens of democracies. The whole world is the loser as a consequence of both sides not heeding Narendra Modi’s warning that “this is not the era of war”. The effects of winter sans Russian energy to Europe may at last bring to fruition Modi’s wish.
Saturday, 12 November 2022
DMK must rethink its opposition to EWS quota (The Sunday Guardian)
It would be less than an incentive for domestic and international companies to invest in Tamil Nadu if those governing the state give the impression of being trapped in a time warp.
U.S. midterm elections give Biden a chance to course correct in Eurasia (The Sunday Guardian)
The G20 Summit may show whether President Biden has finally read the memo that this is the era of Cold War 2.0, and that the lead adversary is no longer Moscow but Beijing.
Apart from the Supreme Court, the other factor that boosted vote tallies of Democratic Party candidates was Donald J. Trump. Several independent voters swallowed their distaste for Biden’s unwillingness to minister to voter priorities in his obsession with Russia and Ukraine, and voted Democratic out of fear that a Republican midterm sweep in 2022 would make another Trump bid for the US Presidency in 2024 inevitable. Even if Trump were to lose that contest, which he would unless Joe Biden were his opponent, his consistent refusal to accept any result other than a victory for himself would continue to poison politics and society in the US even from 2024 onwards, to the delight of Xi and Putin. The strands of Trumpian logic, including denying that losing in a fair election was normal in a democracy, brought down Republican candidates such as Mehmet Oz and Karri Lake, who would have won but for their extravagantly advertised embrace of Trump and his views. In contrast, a future superstar, who has yet to be acknowledged as such in US media, J.D. Vance, in effect, only had a handshake with Trump rather than a full embrace, which was why he was elected as a US Senator from Ohio. Tellingly, Vance thanked more than 30 individuals by name in his victory speech, but left out Trump. He was clearly aware that from the 2022 midterms onwards, Trump’s stock was going to be in decline even amongst the Republican faithful, and so the incoming first term Senator did not want his popularity to get dragged down by adherence to Trump in the manner that several other legislators in his party are experiencing. The combination of public dread of a rerun of Trump’s tantrums, together with a Supreme Court that in some of its judgments do not go by the legal logic that is the foundation of democracy, but the belief systems of particular religious theologies mixed with political ideologies, hurt the Republican candidates. The 6:3 majority in the Roberts Court has exhibited a method of deciding cases that had not been anticipated by those who wrote the US Constitution in 1787.
U.S. RELIABILITY UNDER A CLOUD
As had been predicted much earlier in these columns, the November 2022 US midterms have shown that Donald Trump would be the ideal Republican candidate for a Democratic opponent to defeat, provided that such a candidate not be Joe Biden. Although known to be well-intentioned and straightforward, Biden’s hyperactivity in leading NATO’s proxy war on the Russian Federation in the battlegrounds of Ukraine has crippled the 46th President of the US in the way that the Vietnam War made the continuation in office of Lyndon Baines Johnson beyond the close of his Presidential term in 1969 impossible. So blinded have key Europeanist advisers of the White House been in their fixation on kneecapping “Putin’s Russia” that they neglected to take account of the collateral damage that the US and its allies would suffer, especially in economic terms, because of the Biden-led sanctions that were imposed on Russia that accelerated in wave after wave since the invasion of Ukraine by Russian forces on 24 February 2022. The harm to citizens in the US, EU and the UK (not to mention the rest of the world) that has been caused by worldwide shortages and price rise (including within key NATO member states) in the aftermath of each round of western sanctions on Russia has yet to deter the frenzied effort by that alliance to “teach Putin a lesson”, but it has made a growing number of US-UK-EU voters turn away from those NATO leaders who are responsible for such policies, including Biden and Scholz. In the 1960s, President Johnson was persuaded to expand US involvement in the Vietnam War by Kennedy-era holdovers such as NSA McGeorge Bundy and Defence Secretary Robert Strange McNamara. After Biden’s victory over Trump in 2020, the still thriving Cold War 1.0 (USSR-US) enthusiasts, who had come of age in matters of policy under President Clinton, individuals such as Jake Sullivan and Antony Blinken, convinced President Biden that the very future of western civilisation was at stake in the Ukraine conflict. In the 1960s, Bundy and McNamara had similarly convinced President Johnson that the future of non-communist Asia was at stake in the paddy fields of Vietnam. Despite scuttling the political fortunes of their boss President Johnson, both Bundy and McNamara went on to lucrative careers in prosperous institutions, as no doubt Blinken and Sullivan will after Joe Biden becomes wholly unelectable by the initial months of 2023 as a consequence of the fallout of the intensity of the tactics the US President has signed on to in the Ukraine conflict. The US taxpayer largesse showered on that country stands in contrast to the absence of any armaments given away gratis by the US to India, the Philippines, Vietnam or Taiwan, despite Xi Jinping’s repeated efforts at encroaching on their sovereignty in land, sea and air. Given the contrast between the assistance given free of cost to the Ukrainian military and the pell-mell withdrawal during June-August 2021 of all US support to the Afghan National Army that had been till then been battling the Taliban at great cost in lives, the reliability of the US as a partner in defence and security matters has come to be doubted within the GCC, South Asia, East Asia and ASEAN.
BIDEN’S FAVOURITE COUNTRY
In the gifting of abundant supplies, President Biden’s open heartedness to Ukraine stands in contrast to his relative inattention to countries where human suffering is much worse, such as Somalia or Ethiopia. This has been noted in countries that are not part of what is referred to as the “civilised world” aka “international community” in media outlets of member-states of NATO. For the Cold War 1.0 policymakers within NATO the need is for continuing the war until their hopes are realised of Russia under Putin entering a meltdown. Unfortunately for them, the Ukraine war has resulted in domestic constituencies tiring of the pain to themselves of the rising volume of aftershocks of the war and sanctions, even though President Biden appears focused on expanding US involvement even in 2023, exactly as President Johnson was fixated on increased US involvement in Vietnam in the 1960s. Seeing that candidates embracing Trumpian logic such as Karri Lake could overcome moderate Republican alternatives to get nominated as candidates in the midterms, although many subsequently lost to the Democrats, ex-President Trump’s hopes for the Republican nomination in the 2024 US Presidential elections remain alive. While there remains a chance that Trump may still get his party’s nomination in 2024 and go on to lose to a rival so long as he or she is not Joe Biden, discontent within the Democratic Party base at the Biden White House is likely to ensure that President Biden gets defeated in the 2024 Democratic primaries, should he make the mistake of seeking a second term in the White House. Should Vice-President Kamala Harris detach herself from the White House in a way that Hubert Humphrey was unable to do in 1968, she may yet emerge as the Democratic nominee, but that seems unlikely. In the case of the Republicans, should Trump understand that he would lose in 2024 just as he lost in 2020, he could back son Donald for a Senate seat in 2024 rather than seek a rerun himself. A balanced 2024 Republican ticket that showcases moderation and ethnic diversity may result in a Red Wave in 2024 that has been absent in 2022. In its effort at flipping seats, the Republican Party backing Independent Tulsi Gabbard for the US Senate from Hawaii may be the best way of flipping a Democratic seat in that scenic state. The economic storm intensifying as a consequence of Biden’s expensive and risky prosecution of the Ukraine war, plus the effect on much of Europe of facing winter cold without Russian energy will show that Gabbard was right in warning about the costs to ordinary US citizens of the Ukraine war. Unfortunately for the regional powers focused on ensuring that the Indo-Pacific remain free and open to all, Biden is led by Cold War 1.0 enthusiasts in an administration that seems ignorant of the fact that the US and the rest of the world have decades ago slipped into the era of Cold War 2.0 (between the PRC and the US principally). In Cold War 2.0, Russia is only a secondary threat, in the way then US ally China was to its foe the USSR during most of Cold War 1.0 between the USSR and the US.
TO CHINA, WITH LOVE
Facts speak louder than statements, and if reports emanating from Washington are to be believed, despite the number of applicants from the PRC for a US visa being higher than the number of Indian citizens applying, it takes less than nine days for a citizen of the PRC to get a US visa and 900 days for a citizen of India. What the charm of Xi Jinping is that enables him to so influence the White House in a favourable direction remains unclear, but what is obvious is the growing doubt in the world’s most consequential continent about the sincerity of the protestations of President Biden that he has as much concern for Asia as he so evidently has for Europe minus Russia. Friends of India such as Representative Raja Krishnamurthy and Senator Marco Rubio are still present in the US Congress, but the White House will need to do much more to not just improve its standing among US citizens but in that other huge democracy. And despite several accommodative signals of the Biden administration to Beijing, this is not the People’s Republic of China but the Republic of India.
ASIA WATCHING BIDEN
The G20 Summit may show whether President Biden has finally got the memo that this is the era of Cold War 2.0, and that the lead adversary is no longer Moscow but Beijing. 2023 will show whether Biden can get passed his societally transformative agenda, thereby replicating the feat of Lyndon B. Johnson in the 1960s. The year will show whether Biden shows in action rather than merely in honeyed expressions that the White House understands that India, the Philippines, Taiwan and Vietnam are much in the front line of US security interests as France, Germany and the UK were in the Cold War 1.0 era. Despite Biden, aided by the shadow of the US Supreme Court and Trump, the Democrats have managed to avoid a midterm collapse. As a consequence, the US President has the opportunity to course correct policies and actions concerning Eurasia. Whether Biden has the will to do so will become clear before the winter retreats in early 2023.
U.S. midterm elections give Biden a chance to course correct in Eurasia
Saturday, 5 November 2022
Appeasement of dictators results in tragedy, not farce (The Sunday Guardian)
The capitulation of Daladier and Chamberlain to all of Hitler’s maximalist negotiating positions made Hitler certain that neither Britain nor France would take up arms against Germany.
The capitulation of Daladier and Chamberlain to all of Hitler’s maximalist negotiating positions made Hitler certain that neither Britain nor France would take up arms against Germany, were Hitler to next annex Poland after throwing a few scraps Stalin’s way, as he had intended from the start. Julia Boyd’s book shows the shock of those few who understood the mind of Hitler, knew that he would keep wanting more with each concession, with each perceived show of Allied lack of resolve. Other recollections show the surprise and joy among the Nazi faithful at the unexpected news that Chamberlain and Daladier abandoned Czechoslovakia to the Nazis in August 1939 much the way President Biden abandoned Afghanistan in August 2021. Will a present-day dictator draw from Biden’s surrender to the Taliban the conclusion that there would be little or no substantive blowback from the US (and therefore its Atlanticist allies) to a PRC invasion of Taiwan? Or another PLA attempt at grabbing Ladakh and Arunachal from India? Marx was wrong. A tragedy in history need not repeat itself only as farce, but could return as yet another tragedy. If only the White House had received that memo in time.
Saturday, 29 October 2022
Ukraine war spreads suffering across the globe (The Sunday Guardian)
If UK, EU, US are suffering, so must Asia, Africa, South America through no fault of their own.
So hypercharged is the media-driven frenzy within the Atlantic Alliance to in effect destroy themselves to “save Ukraine” that even feeble efforts at restoring sanity to policy such as Progressive Caucus Chairperson Pramila Jayapal’s letter asking for a negotiated peace in the conflict was retracted after the White House intervened. President Biden and his UK and EU counterparts seem unaware or uncaring of the travails that their sanctions are causing, toxic measures that in no way have held back Vladimir Putin from continuing with the Ukraine campaign. Rishi Sunak must know how deadly the impact of draining UK resources to feed the insatiable appetite of the Ukrainian militias fighting Russia is, and yet (as shown by the re-appointment of Ben Wallace) he seems unable to prevent the train wreck that Ukraine is proving to be for the Atlantic Alliance. From the start of the conflict in February, this analyst was clear that CCP General Secretary Xi Jinping would seek to prolong it, and this he is doing by keeping the Russian military machine afloat through the cash and goods given in exchange for Russian resources at discounted prices. Compared with China’s, the Indian contribution to the Kremlin’s coffers is tiny, and yet is the cause of much hand wringing by Atlanticist politicians and media. In that estimation, Xi would like the proxy war being fought by NATO with Russia in Ukraine to continue at least until the initial months of 2023. Meanwhile, the trans-Atlantic formation seems motivated by an insistence on the rest of the world (except of course China) enduring an even higher level of privation as a consequence of policies formulated entirely in Whitehall, the White House and Brussels. If the UK, EU and the US are suffering, so must Asia, Africa and South America through no fault of their own. Charming.
Xi relying on ‘Chissia’ to power PRC expansion (The Sunday Guardian)
Xi is banking on a combination of cheap Russian energy and Chinese manufacturing to turbocharge the PRC’s geopolitical challenge to the democracies, at a time when the West is scoring self-goal after self-goal.
New Delhi: Within policymaking bodies in the Lutyens Zone, fragments of Chindia (the assumed synergistic fusion between India and China) still litter some minds. Deng Xiaoping began his wooing of India with the 1981 opening of a route from India to Kailas Mansarovar. Since then, trade between India and China has ballooned, and is presently witnessing a surplus of trade in that country’s favour that has crossed US$80 billion. Although Deng kept the PLA on a leash, the military was set free under Jiang Zemin and Hu Jintao. Salami-sliced expansion further into India of the Line of Actual Control (which remains unrecognized by Beijing) co-existed with honeyed language from PRC diplomats and interlocuters. Until the always visibly assertive, often aggressive Xi Jinping took charge as CCP General Secretary in 2012, the promise of Chindia was kept alive even though Beijing refused to backtrack on border issues, all the while deepening its cooperation with GHQ Rawalpindi, including through providing logistical and other support in operations directed at India. While Aksai Chin has from the 1950s been occupied by China, after Xi’s ascent to the highest office in his country, Pakistan-occupied Kashmir too has entered on a path of becoming a protectorate of the PRC, with the eager consent of the Pakistan Army. Since the second 5-year term of Xi began, hardly any attention has been given to the concept of the Russia-India-China axis, while intense effort has gone into strengthening the bilateral relationship between Beijing and Moscow. It is no secret that the CCP considers large chunks of Siberian land as having been taken from China by Russia in the past. Nor that Xi’s desire is to dominate the European part of Eurasia once he manages to establish not just ascendancy but control over the Asian part. In such a schema, Moscow will need to be content to serve as a junior partner to Beijing, a status that Moscow appears to have silently accepted.
CHINA-RUSSIA CONFLICT UNLIKELY
Despite their historical differences, once the Sino-Russian boundary was officially demarcated by mutual agreement, a kinetic conflict between the two countries comprising “Chissia” has become very unlikely. In contrast, China has refused to enter into a boundary
settlement with India, thereby reserving the right to launch another border conflict in the future. A warning bell was the distribution by the PRC delegation of maps of the SCO countries during the 15-16 September Samarkand summit. These maps show Arunachal and Ladakh as part of China, and Kashmir as part of Pakistan. There was no bilateral between Prime Minister Narendra Modi and Xi Jinping in the SCO summit, unlike in the past. Since 2016, India has been moving from chasing the illusion of Chindia into factoring in the reality of Chissia. Unlike his predecessors, Prime Minister Narendra Modi, from the start of his coming to power in 2014, was clear-eyed about the objectives of the CCP leadership core, and has strengthened military defences on the boundary with China in a way not seen earlier. Now that Xi has secured a third term, he needs to deliver on his promise of expanding the territorial boundaries of the PRC before seeking his fourth (and possibly final) 5-year term in 2027. Given that the ASEAN Sea (otherwise known as the South China Sea) has substantially come under Chinese occupation, that leaves Taiwan and lands south of the Himalayas as obvious targets for attempts at takeover through the PLA.
XI WANTS UKRAINE WAR TO CONTINUE
While NATO capitals have from the start of the 24 February 2022 Russian invasion of Ukraine believed that Xi could be persuaded to reel back Vladimir Putin from his adventure, the reality is that the CCP leadership core prefers that the ongoing proxy conflict between NATO and the Russian Federation continues well into 2023. As a consequence, the bulk of the financial and other resources needed by Moscow to prosecute the war have their origin in China. Since the start of the year, Xi has studied the sanctions imposed on Russia and begun taking preventive steps designed to reduce to a minimum damage done to China in the event of similar sanctions being imposed on the PRC by NATO member states together with Japan, Australia and South Korea. Chinese dollar (as well as euro, Swiss franc and Japanese yen) reserves are in the process of being replaced, including with additions to the official gold stock. If the silent effort at depreciating the RMB yuan to 8 per dollar is judged insufficient to boost exports in a depressed global market, the level of 10 RMB to a dollar would be the next step, followed by the Hong Kong dollar (HKD) snapping its peg to the US dollar. That peg has tied Hong Kong to the policies of the US Federal Reserve, which seems to be set on a course that would make the US a more and more expensive location to invest in, and to produce and sell from. A higher USD would raise the debt burden on countries that have been given Belt & Road Initiative loans, all of which have been dollar denominated. As a consequence, physical assets worth inflated sums of money would come into the ownership of China from countries unable to repay BRI debt on the lines already witnessed in some countries. The risks to China from Taiwan-related sanctions by western countries that have been hyperactive in sanctioning Russia are being sought to be minimised through an increasing volume of commodity trade being settled in currencies other than USD. This would be helpful in the worst case scenario of the US Federal Reserve seeking to confiscate or starve China of access to USD. Under Prime Minister Modi, countermoves in the event of kinetic scenarios involving the PLA are being worked out. Similar is the case in Taiwan, where the central government has been active in dealing with the risks inherent in Xi’s penchant for expansionism. If further proof of Xi’s intentions towards India are needed, unlike in the case with Russia, the PRC has insisted that the surplus secured through Chinese exports to India should be paid in USD and not through a rupee-yuan arrangement, with predictable consequences for the dollar-rupee ratio.
HIGH USD FUELS GLOBAL INFLATION
Given the economic and social carnage wreaked as a consequence of the 2020 Covid-19 pandemic caused by a lab leak from the Wuhan Institute of Virology, the manner in which boomeranging sanctions were imposed by NATO members has created choppy waters for the global economy. In a panic reaction to the pandemic in 2020, unprecedented lockdowns were implemented by numerous governments that had severe effects on the economies of the countries enforcing them. In attempts to mitigate the pain caused by the lockdowns, the US Federal Reserve and some other central banks unleashed Quantitative Easing (QE) directly into fiscal injections of liquidity. Such boosts in money supply led to price rises when conjoined with supply disruptions caused by the pandemic. QE was followed by the US Federal Reserve Board raising interest rates repeatedly since 2021 to “curb inflation”. Such moves are a throwback to monetary policy in the 1930s, that helped cause the Great Depression, and has had little effect on slowing down inflation, given that much of the price rise was caused by the supply and other disruptions caused by western sanctions imposed on Russia since its invasion of Ukraine. While the USD has shot up in value, this has had a devastating effect on the currencies of several US partners and allies, including in Europe. The debt to GDP ratio in the US has crossed World War II levels together with high inflation and the risk of stagflation to a level last seen in the 1970s. That crisis caused the current monetary system to be born. Another may result in a fresh transformational change that, in the expectation of the Sino-Russian alliance, could see the demise of the USD as the global reserve currency of choice.
WESTERN BANKS ENTER DANGER ZONE
Given the buffeting since 2020 of the Covid-19 and the Ukraine shock, major systemic cracks have started to appear in the US Treasury, which till now has been the anchor asset of global financial system. Treasuries should not be equated with the USD, which remains the global reserve currency, but which has steadily lost ground in the 21st century. Among the reasons why Liz Truss had to make way for Rishi Sunak at 10 Downing Street was fear of a UK pension crisis. Should the Ukraine war and western sanctions on Russia continue, most Western countries may face a similar situation. Democracies such as those in Europe as well as Japan and Korea may be pushed into a structural trade deficit. At the same time, Chissia has enabled President Putin to resist sanctions by the West. The ruble is among the few currencies that have strengthened against the USD, despite foreign reserve and individual asset confiscations by western countries, measures that have lowered confidence in the safety associated with parking reserves and property in western financial institutions. Western currencies have in 2022 begun to be perceived as less than a safe reserve, given the shifting geopolitical currents and consequent arbitrary actions taken in countries that prided themselves on the Rule of Law and due process. This may tip several western financial institutions into the danger zone, a point already reached by some such as Credit Suisse. The ban has been harmed as a consequence of Switzerland abandoning its neutrality in the proxy war between the Sino-Russian alliance and NATO. Given that the PRC is the main challenger to the primacy of the West, the dire situation of that grouping has been cause not for alarm but for jubilation in Moscow and Beijing.
COMMUNIST CHINA’S GAME PLAN
Among the scenarios likely to be followed given the context of recent events, the probable game plan of the CCP core appears to be as follows:
Xi depreciates RMB to 8 per US dollar, then subsequently to 10, which may trigger a repeat of the cause of the 1997 Asian Financial Crisis, resembling in its effects the 2008 global financial crisis in scale due to excessive system leverage and diminishing firepower by both fiscal and monetary authorities.
This may coincide with (1) Xi repegging the RMB to gold at a much higher gold price, so to create an arbitrage drain of the already low western physical gold stockpile, and (2) nationwide rollout by China of its digital currency to boost the global credibility of RMB, followed by (3) de-pegging of the HKD to USD and re-pegging of the HKD to RMB. The CCP leadership core anticipates that its covert economic war on overly leveraged economies (such as those of the US and its NATO allies) due to the combined effects of Asia Financial Crisis 2.0 plus physical gold drain could elevate RMB’s international status, including via a repurposed HKD. Given the massive increases in the funds made available to the PLA, Xi believes that China is strong enough to seize BRI hard assets and projects into its own control under current contract terms. The snail’s pace of the development of Quad into a full-fledged defence and security alliance is also creating a window for economic and diplomatic power play backed by PLA muscle. When the Quad will be willing and able to offer reassurance to countries at risk of losing control of assets as a consequence of dollar-denominated BRI debt remains an open question.
US MUST AGAIN BE ARSENAL OF DEMOCRACIES
The democracies, though, are not without defences. Rather than lapse into a growth-destructive, inflation-fuelling mode, the US Federal Reserve could be used to promote global growth in democracies, as overall it remains potentially among the most destructive weapon against the enemies of democracy. Despite being infiltrated by the CCP based on recent Congressional reports, the Fed has the capacity to weaponize in defence of US allies. This was evident during the 2020 Covid pandemic via the “FIMA” facility of emergency lending of hard USD to allied countries, but not to China. The US, India and other major democracies have many cards under their sleeve. Their outcomes would of course depend on strategic awareness (including grey zone warfare initiatives) and the speed of recognition of threats and implementation of counter measures to disruptive actions carried out by the Sino-Russian alliance (Chissia). The developing situation is causing a realignment within the global community of the traditional three axes of power. These are (1) energy/commodities such as OPEC, (2) labour/production where China is the present and the future is India, as well as (3) capital, including GCC. The severing of the collaborating links among the three caused by the twin shocks of Covid-19 and the Ukraine war marked the end of structurally low inflation, low interest rates and low geopolitical risks. Xi is banking on a combination of cheap Russian energy and Chinese manufacturing so as to turbocharge the PRC’s geopolitical challenge to the democracies, at a time when the West is scoring self-goal after self-goal. India does not have the luxury of remaining on the sidelines, but needs to position itself in the ongoing contest between the democracies and the countries that regard such a system as anathema. Calculations as to what is the best way of doing this would be going on in the Prime Minister’s Office at South Block on an almost daily basis.
Xi relying on ‘Chissia’ to power PRC expansion
Saturday, 22 October 2022
‘Fight the enemy’ has become Xi’s motto (The Sunday Guardian)
In Xi’s speech to the 20th Party Congress, the word that was prominently used was ‘fight’, of course in its Chinese equivalent.
In Xi’s speech to the 20th Party Congress, the word that was prominently used was “fight”, of course in its Chinese equivalent. Since 2015, Xi has spoken of hostile countries seeking to throttle the PRC and once again subject the Chinese people to bondage. Unlike his predecessors Jiang Zemin and Hu Jintao, Xi was explicit in promising to annex Taiwan during his period in office. Given that he would need to build up support for a fourth term almost as soon as he enters on his third, Xi may regard the conquest of Taiwan as being necessary to make the CCP ignore the economic headwinds caused by his policies, and focus instead on the achievement of what has long been proclaimed as a key objective of Communist Chinese policy. Should the proxy war between Russia and NATO being played out in Ukraine continue in 2023, Xi may gamble that the adverse impact on their own economies of US-UK-EU sanctions on Russia would reduce to almost a nullity any chance of similar sanctions being imposed on China by the countries that have been sanctioning Russia since 2008. And if NATO is unwilling to directly intervene in a conflict involving a European power that has linked itself to the countries forming that alliance since 2014, would it intervene directly in a conflict involving an Asian power, given the legacy of Vietnam and Afghanistan? CCP planners may see that outcome as wholly improbable. Since Xi took charge in 2012, and not entirely by coincidence, the PLA has been building up its capabilities in the East China and South China ( or ASEAN) Sea, and its planners believe that it has the capacity to block any shipment of weapons from NATO to Taiwan in a manner that Russia has been unable to do in Ukraine. And that without such supplies flowing in a plentiful fashion, the Taiwanese military would be unable to hold back the PLA for very long. As of now, those voices opposing a policy of accelerated decoupling of industrial units of the democracies from China still seem ascendant, if trade volumes are any guide. However, public opinion in the democracies is hardening against the PRC, now that it is led by Xi, and this is influencing even politicians who in the past were regarded as pro-PRC into changing their views. An example is the technology ban imposed by President Biden, which is way more destructive of Chinese capabilities than anything done under President Trump. The third term of President Xi may turn out to be the most consequential in terms of outcomes. Xi is riding the tiger of hyper-nationalism, and if he dismounts, he will suffer the same or a worse fate than CPSU General Secretary Nikita Khrushchev when he blinked in the 1962 Cuban standoff with President Kennedy. From that time onwards, Khrushchev was doomed politically, and finally had to leave an otherwise impregnable office in disgrace in 1964. A warning from history that would not be lost on Xi Jinping.
Saturday, 15 October 2022
Danger signal from Russia on Xi Jinping (The Sunday Guardian)
Russian analysts have begun changing the nomenclature of Ladakh and Arunachal into the Mandarin substitutes now promoted in maps by the PRC. Such cartographic shifts have in the past preceded acts of aggression by the PRC.
In recent weeks, there has been a spurt in actions directed against India by some of the most consequential members of NATO, especially the UK and the US. UK Home Secretary Suella Braverman was candid about her contempt for Indians, however poisoned such an attitude may have made UK-India relations in the Liz Truss era. It is difficult to believe that actions such as the getting of a Canadian, US or indeed many European visas has become close to impossible for citizens of India are unrelated to the refusal by the Government of India to join NATO in once again shifting focus to Russia in the way that counterparts in Canberra, Seoul or Tokyo have. Indeed, NATO as an alliance is clearly suffering from a genetic birth defect, which is that it is inflexibly focused on Russia as the primary threat to humanity. Although mouthing and even committing to the record ritualistic statements about the China threat, its heart is not in anything other than continuing to fixate on Russia. NATO does indeed seek to intrude into the Indo-Pacific, but by its actions on ground, sea and air, it is clear that the predominant motive for this is to try and strangle those trade routes within Asia that are frequented by Russia. Of course, such attention to Russia coexists with China being given a pass on whatever it does, barring verbal protestations and symbolic posturing indicating unease and opposition.
The 2022 sanctions blitzkrieg against Russia led by President Biden, and encouraged by cheerleaders such as Jens Stoltenberg or Ursula von der Leyen, plus the consequences on the PRC economy of Xi Jinping Thought, are causing waves of pain in the rest of the world. While sanctions that are more than symbolic would be inevitable were Xi to intensify his kinetic moves against Taiwan, it is considered by the CCP leadership to be extremely unlikely that the US, the UK and other NATO member states would impose substantive sanctions on China in the event of another PLA foray into Indian territory. The Russians have flashed a warning sign to the Indian side of the danger posed by such a view in Beijing. This they have indicated by its analysts beginning to change the nomenclature of Ladakh and Arunachal into the Mandarin substitutes given in the latest maps that are now being shown by the CCP. Such cartographic shifts have in the past preceded acts of aggression by the PLA. Maps showing Ladakh and Arunachal as Chinese territory and Kashmir as Pakistani were distributed by some in the Chinese delegation to the September meeting of the SCO at Samarkand. Those in the Lutyens Zone who believe that there is no way that the PLA would initiate a kinetic showdown across the Himalayas at least until the close of the decade may be proved wrong. The tossing of a sweetener to the Atlanticist powers through Indian support of their resolution on Xinjiang against China at the UNHRC may have been a better option than abstaining from voting, rather than in joining countries who backed an investigation into the situation in Xinjiang.