The Bull in the China Shop

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Beijing’s annual trade surplus with India is large enough for it to finance one China-Pakistan Economic Corridor (CPEC) every calendar year and still have a few billion dollars to spare.

Brahma Chellaney, The Hindustan Times, June 29, 2017

Doklam plateau

Just as Indian Prime Minister Narendra Modi was meeting US President Donald Trump at the White House, Beijing ratcheted up pressure on India by officially publicizing a military standoff at the Sikkim-Bhutan-Tibet tri-junction. The shadow of China’s muscle flexing over the Modi-Trump discussions paralleled what happened when Chinese President Xi Jinping paid an official visit to India in 2014. Xi arrived on Modi’s birthday bearing an unusual gift for his host — a major Chinese military encroachment into Ladakh’s Chumar region. And Chinese Premier Li Keqiang’s 2013 visit was preceded by a 19-kilometre incursion into Ladakh’s Depsang Plateau.

In China’s Sun Tsu-style strategy, diplomacy and military pressure, as well as soft and hard tactics, go hand-in-hand. In the same way, China’s xenophobic nationalism goes hand-in-hand with its economic globalization project. Similarly, Beijing poses as a champion of free trade even as it abuses free-trade rules to maintain high trade barriers and to subsidize its exports. In effect, China has grown strong by quietly waging a trade war.  China has held border talks with India while its forces perched on the upper heights of the Tibetan massif have staged fresh incursions.

In Beijing’s view, India is a critical “swing state” that increasingly is moving to the US camp, undercutting Xi’s ambition to establish a Sino-centric Asia through an expanded tianxia system of the 15th century. Given India’s vantage geographical location, China needs its participation to plug key gaps in Xi’s “One Belt, One Road” (OBOR) project. But India not only boycotted Xi’s OBOR summit but has also portrayed OBOR as an opaque, neo-colonial enterprise seeking to ensnare smaller, cash-strapped states in a debt trap.

China, by encroaching on Bhutan’s Doklam enclave, may have orchestrated the tri-junction standoff not so much to cast a shadow over the Modi-Trump discussions as to warn Modi that his increasing tilt toward America will carry long-term costs. China is already stepping up its direct and surrogate threats against India. One example is the proliferation of incursions and other border incidents since the 2005 Indo-US nuclear deal, which laid out a strategic framework for the US to co-opt India. China is also waging psy-war through media.

With Chinese forces aggressively seeking to nibble away at Indian territory, India’s Himalayan challenge has been compounded by a lack of an integrated approach that blends military, economic and diplomatic elements into a coherent strategy. Modi, for example, has allowed China’s trade surplus with India to double on his watch to almost $60 billion. By comparison, India’s trade surplus with the US is about half of that, yet Trump wants urgent Indian action to balance the two-way trade.

By importing $5 worth of goods from China for every $1 worth of exports to it, India not only rewards Chinese belligerence but also foots the bill for Beijing’s encirclement strategy. Beijing’s annual trade surplus with India is large enough for it to finance one China-Pakistan Economic Corridor (CPEC) every calendar year and still have a few billion dollars to spare. India’s most powerful weapon against China is trade. Given China’s proclivity to deploy trade as a political weapon, as against South Korea in the latest case, why doesn’t India take a page out of the Chinese playbook?

India also needs to eschew accommodating rhetoric that plays into China’s hands. Modi’s recent statement that — despite the boundary dispute — “not a single bullet has been fired” was music to Chinese ears, with Beijing going out of its way to welcome it. In truth, China’s bullet-less Himalayan aggression, as the Sikkim episode demonstrates, is similar to the way it has expanded its control in the South China Sea. Indian statements should not give comfort to an adversary that employs furtive, creeping actions to alter the frontier bit by bit.

Meanwhile, China, by arbitrarily suspending Indians’ pilgrimage to the sacred duo of Mount Kailash and Lake Mansarover, is reminding New Delhi to review its Tibet policy. To blunt China’s Tibet-linked claims to Indian territories and to defend against the growing Chinese pressure, India must subtly reopen Tibet as an outstanding issue. Theoretically, India has a better historical claim to Kailash-Mansarover than China has to Arunachal, where no Han Chinese set foot until the 1962 invasion.

Make no mistake: Despite the cosy ties with Washington, India, essentially, is on its own against China. It needs to bolster its border defences and boost its nuclear and missile deterrent capabilities. The U.S., with a price tag of up to $3 billion, is offering 22 unarmed MQ-9B unmanned aerial vehicles (UAVs) for surveillance, not the “hunter-killer” UAVs India needs to counter the emerging Indian Ocean threat from China. By investing that kind of money, India could develop potent new deterrent instruments against China — intercontinental ballistic missiles (ICBMs) and long-range cruise missiles, the symbols of power in today’s world.

Brahma Chellaney is a geostrategist and author.

© The Hindustan Times, 2017.

Vladimir Putin’s geopolitical chessboard

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, The Japan Times

U.S.-led sanctions against Moscow are helping to create a more assertive Russia determined to countervail American power. The bipartisan support in the U.S. Senate Foreign Relations Committee for additional sanctions, even as a special counsel investigates alleged collusion between U.S. President Donald Trump’s election campaign and Moscow, suggests that the U.S.-Russia relationship is likely to remain at a ragged low.

Despite the Russian economy suffering under the combined weight of sanctions and a fall in oil prices, Moscow is spreading its geopolitical influence to new regions and pursuing a major rearmament program involving both its nuclear and conventional forces. Today, Russia is the only power willing to directly challenge U.S. interests in the Middle East, Europe, the Caspian Sea basin, Central Asia and now Afghanistan, where America is stuck in the longest war in its history.

Put simply, the U.S.-led Western sanctions since 2014 are acting as a spur to Russia’s geopolitical resurgence.

In keeping with the maxim that countries have no permanent friends or enemies, only permanent interests, Russia has rejiggered its geopolitical strategy to respond to the biting sanctions against it. Russian President Vladimir Putin has significantly expanded the geopolitical chessboard on which Moscow can play against the United States and NATO.

Historically, strongman governments facing domestic challenges have whipped up nationalism by rallying popular support against foreign adversaries. Who better to blame for Russia’s economic travails than the sanctions-imposing U.S. and its allies? Putin’s jaw-droppingly high approval ratings contrast starkly with the deepening unpopularity at home of his U.S. counterpart.

Putin has shown himself to be a very skilled player of geopolitical chess. Despite Russia’s gross domestic product shrinking to below that of Italy, Putin has managed to build significant Russian clout in several regions. The blunders of Western powers in Iraq, Libya and Yemen, of course, have aided Russian designs in the Middle East.

Putin has made Russia the central player in the bloody Syrian conflict, fueled by outside powers. Until Russia launched its own air war in Syria in September 2015, the U.S.-British-French alliance had the upper hand there, aiding supposedly “moderate” jihadist rebels against Syrian President Bashar Assad’s government and staging separate bombing campaigns against the Islamic State terrorist organization. Russia’s direct intervention, without bogging down its military in the Syrian quagmire, has helped turn around Assad’s fortunes and reshaped Moscow’s relationships with Turkey, Israel and Iran.

As part of his multidimensional chess game, Putin is also building Russian leverage in other countries that are the key focus of U.S. attention — from North Korea to Libya. But it is Russia’s warming relationship with the medieval Taliban militia — the U.S. military’s main battlefield foe in Afghanistan — that has stood out.

Russia’s new coziness with the Taliban, of course, does not mean that the enemy of its enemy is necessarily a permanent friend. Putin is opportunistically seeking to use the Taliban as a tool to weigh down the U.S. military in Afghanistan.

Because of the Taliban’s command-and-control base and guerrilla sanctuaries in Pakistan, Moscow has also sought to befriend that country. This imperative has been reinforced by the continued U.S. unwillingness to bomb the Taliban’s command and control in Pakistan.

The revival of the “Great Game” in Afghanistan is just one manifestation of the U.S.-Russian relationship turning more poisonous. Another sign is Moscow’s stepped-up courting of China. The U.S.-led sanctions have compelled Russia to pivot to China. Putin attended the recent “One Belt, One Road” summit in Beijing despite his concern that China is using that project to displace Russia as the dominant influence in Central Asia.

To be clear, Russia’s growing ties with India’s regional adversaries, China and Pakistan, have introduced strains in the traditionally close relations between Moscow and New Delhi. The paradox is that as India has moved strategically closer to the U.S., American policy has propelled Russia to forge closer ties with Beijing and to build new relationships with the Taliban and Pakistan.

The Russia-U.S. equation has a significant bearing on Asian and international security. Trump came into office taking potshots at the Chinese leadership but wanting to be friends with Russia. However, the opposite has happened: America’s relationship with Russia, according to U.S. Secretary of State Rex Tillerson, has hit its lowest point in years while Trump has developed a strong personal relationship with China’s top autocrat, Xi Jinping, who welcomes his mercantile, transactional approach to foreign policy.

This pirouette has happened because, in reality, Trump is battling those who, in the 21st century, are unwilling to forgo a Cold War mentality. Washington may be more divided and polarized than ever but, on one issue, there remains strong bipartisanship — Russia phobia. This has come handy to those seeking to inflict death by a thousand cuts on the Trump presidency, including by calculatedly leaking classified information and keeping the spotlight on the alleged Russia scandal in which there is still no shred of evidence of collusion between the Trump campaign and Moscow.

Against this backdrop, America’s sanctions against Russia are unlikely to go, despite clear evidence that they are fostering increasing Moscow-Beijing closeness by making Russia more dependent on China. The sanctions effectively undercut a central U.S. policy objective since the 1972 “opening” to Beijing by President Richard Nixon — to drive a wedge between China and Russia.

For Putin, the sanctions represent war by other means and a justification for him to make his next moves on the grand chessboard. With U.S. Senate Foreign Relations Committee Chairman Bob Corker determined to slap Moscow with additional sanctions, U.S.-Russian tensions and rivalries will continue to serve as a strategic boon for China even as they roil regional and international security.

Longtime Japan Times contributor Brahma Chellaney is a geostrategist and author.

© The Japan Times, 2017.

India’s nuclear industry deserves a place in the sun

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New nuclear power has become increasingly uneconomical in the West but electricity from Indian-made reactors is still competitive.

Brahma Chellaney, Nikkei Asian Review, July 3-9, 2017.

22_06_2017_016_023_010The Indian government recently approved the construction of 10 commercial nuclear power reactors of indigenous design, initiating the largest nuclear building program in the world since the 2011 Fukushima disaster in Japan. The global nuclear power industry is still reeling from that calamity: Just three of Japan’s 42 reactors are currently operating, while France — the poster child for nuclear power — plans to cut its reliance on atomic energy significantly.

New nuclear power has become increasingly uneconomical in the West, in part because of rapidly spiraling plant-construction costs, prompting the U.S. and France to push reactor exports aggressively, including to “nuclear newcomers” such as the cash-laden oil and gas sheikhdoms of the Arabian peninsula. Still, the bulk of the new reactors under construction or planned worldwide are located in just four countries — China, Russia, South Korea and India.

The Indian decision to turn to a “fully homegrown initiative” reflects the continuing problems in implementing a 2005 agreement on nuclear power with the U.S. Nine years after the U.S. Congress ratified the landmark deal, commercialization is still not within sight.

India, duped by its own hype over the nuclear deal, had announced plans to import reactors costing tens of billions of dollars from two U.S.-based vendors, Westinghouse Electric and GE Hitachi Nuclear Energy, and France’s state-owned Areva. The Indian plans helped motivate Toshiba to acquire Westinghouse — a takeover that ultimately proved a huge blunder, plunging Toshiba into a grave financial crisis. Westinghouse filed for bankruptcy protection in March.

One missing link in commercializing the U.S.-India deal has been Japan, which signed a separate civil nuclear agreement with New Delhi only in 2016 after other supplier-nations had already concluded such accords. The Japanese parliament’s approval in early June of the agreement with India clears the legal path for Japanese exports. The accord is to take effect in early July.

Japan is a top nuclear equipment supplier, not merely because Toshiba largely owns Westinghouse. Hitachi has a global nuclear power alliance with GE, while Mitsubishi Heavy has one with Areva. Just one Japan-based company, Japan Steel Works, controls 80% of the international market for heavy nuclear forgings.

The Japanese parliamentary approval, although an important development, has come at a time when Westinghouse, GE Hitachi and Areva — which dominate the international reactor export business — are in a dire financial state, with their futures at stake. These are the companies that were to principally benefit from the U.S.-India nuclear deal, although none had secured a supply contract thus far.

Fading promise

Having invested considerable political capital in the vaunted nuclear deal with the U.S., India today confronts an embarrassing situation: The nuclear power promise is fading globally before New Delhi has signed a single reactor contract as part of that deal. To save face, India, with one of the world’s oldest nuclear energy programs, has embarked on a major expansion of domestically designed power reactors.

The monumental nature of the decision to construct 10 reactors with 700 megawatts of capacity each is underscored by the fact that the total size of these units surpasses the current installed nuclear generating capacity in the country. India has 22 nuclear reactors in operation which produce 6,219MWe of electricity. The 10 new reactors will be in addition to seven others already under construction which will have a combined capacity of 5,300MWe.

The 10-reactor decision fits well with India’s commitment under the Paris climate accord to reduce reliance on fossil fuels. India is committed to cutting the carbon intensity of its economy by about a third by 2030, including by generating 40% of its electricity from non-fossil fuels. The single-minded focus on carbon, however, threatens to exacerbate India’s water crisis, given the water-guzzling nature of the energy sector, especially nuclear power.

Moreover, U.S. President Donald Trump’s decision to exit the Paris accord has cast unflattering light on the onerous climate-related obligations India has taken on before it has provided electricity to all its citizens. According to a review of global trends by the Netherlands Environmental Assessment Agency the U.S. produces eight times more carbon dioxide emissions than India, on a per capita basis. Under current plans, India will link the last remaining 4,141 villages without power to its electricity grid in 2018, but 24-hour electricity will not be available nationwide to all communities until 2022.

India’s decision to ramp up its nuclear power capacity may contribute little to meeting the 2022 goal, given that the time frame for domestic nuclear plant construction averages seven years. But it will yield major economic dividends, including boosting domestic industry and creating thousands of jobs. By providing $11 billion worth of likely manufacturing orders to Indian industry, the 10-reactor decision will help to transform the domestic nuclear industry, according to Prime Minister Narendra Modi.

By contrast, had India relied primarily on imports of Western reactors to accelerate new capacity additions, the financial costs would have been substantially higher, without tangible benefits accruing to domestic industry. India is already a top weapons importer. Reliance on Western reactors would have made it the world’s largest importer of nuclear power plants — a double whammy for Indian taxpayers, especially given that the country is the only major Asian economy that is import-dependent rather than export driven.

In this light, the travails of the nuclear deal with the U.S. may be a blessing in disguise for India. But for the serious financial woes of Westinghouse, GE Hitachi and Areva — each of which was to build a cluster of reactors at a separate Indian park — Indian taxpayers would have been potentially saddled with plants like Areva’s reactor project in Finland, which is currently almost a decade behind schedule and billions of euros over budget.

Rightful place

To be sure, a dispute with Western suppliers over nuclear accident liability also put a break on India’s reactor-import plans. After India’s 2010 legislation put off foreign reactor vendors by giving plant operators the right of recourse against equipment suppliers in the event of a nuclear accident resulting from substandard equipment or material, New Delhi established a nuclear insurance pool in 2016 to extend protection to suppliers. By then, however, the global nuclear power scene had fundamentally changed due to the impact of the Fukushima disaster.

mapNuclear power may be on a downward trajectory globally, yet it has earned a rightful place in India’s energy mix. The country’s domestic nuclear power industry, without technological assistance from overseas, has done a good job in beating the mean global plant-construction time frame and in producing electricity at a price that is the envy of Western reactor vendors. As a result, power from domestic reactor models is competitive with cheap coal-fired electricity. By contrast, in the U.S., where five reactor closures have been announced since 2013, utilities are seeking greater state subsidies to keep other nuclear plants operating.

India was compelled to establish nuclear autarky, including an independent fuel cycle, because it was excluded from international civil nuclear trade on the grounds that it developed nuclear-weapons capability in 1974 after the Nuclear Non-Proliferation Treaty had already taken effect in 1970. (The five countries that tested bombs before the NPT was concluded were accorded the status of nuclear-weapons states under the NPT.) The Indo-U.S. nuclear deal sought to remedy this situation somewhat by opening civil nuclear commerce to India while recognizing the reality of its nuclear-weapons capability.

For many in India’s governing elite, the nuclear deal with the U.S. — despite the conditions quietly put into the American ratifying legislation — became the acme of their aspirations for the country. They believed the deal would turn the U.S. into India’s enduring benefactor and catapult the country into the big-power league. Years later, for example, New Delhi is still not in the U.S.-led Nuclear Suppliers Group, with China unyielding in its opposition to India’s entry.

A cost-benefit analysis against this background is helping to lower India’s expectations from the nuclear deal. By expanding construction of its own reactor models, India is laying the base for its emergence as a reactor exporter. Compared with the larger reactors of Westinghouse, GE Hitachi and Areva, India’s midsize reactors are better suited for the developing countries, considering their grid limitations.

India may still buy some Western reactors, but the latest decision clearly signals that its focus will be on building its own reactors. It has taken 12 years for Indian hype over the nuclear deal to give way to sober realism. The inward turn reaffirms India’s embrace of a zero-carbon power source and underscores its faith in the likely advent of commercially attractive reactors based not on uranium — a resource it lacks — but on thorium, which it has in plenty.

Brahma Chellaney is a geostrategist and the author of nine books, including the award-winning “Water, Peace, and War.”

© Nikkei Asian Review, 2017.

 

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The Kudankulam nuclear power plant seen from a beach in the southern Indian state of Tamil Nadu © Reuters

Countering China’s High-Altitude Land Grab

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A column internationally syndicated by Project Syndicate.

Bite by kilometer-size bite, China is eating away at India’s Himalayan borderlands. For decades, Asia’s two giants have fought a bulletless war for territory along their high-altitude border. Recently, though, China has become more assertive, underscoring the need for a new Indian containment strategy.

On average, China launches one stealth incursion into India every 24 hours. Kiren Rijiju, India’s Minister of State for Home Affairs, says the People’s Liberation Army is actively intruding into vacant border space with the objective of occupying it. And according to a former top official with India’s Intelligence Bureau, India has lost nearly 2,000 square kilometers to PLA encroachments over the last decade.

The strategy underlying China’s actions is more remarkable than their scope. On land, like at sea, China uses civilian resources – herders, farmers, and grazers – as the tip of the spear. Once civilians settle on contested land, army troops gain control of the disputed area, paving the way for the establishment of more permanent encampments or observation posts. Similarly, in the South China Sea, China’s naval forces follow fishermen to carve out space for the reclamation of rocks or reefs. In both theaters, China has deployed no missiles, drones, or bullets to advance its objectives.

China’s non-violent terrestrial aggression has garnered less opposition than its blue-water ambition, which has been challenged by the United States and under international law (albeit with little effect). Indian leaders have at times even seemed to condone China’s actions. During a recent panel discussion in Russia, for example, Indian Prime Minister Narendra Modi said that although China and India are at odds over borders, it was remarkable that “in the last 40 years, not a single bullet has been fired because of [it].” The Chinese foreign ministry responded by praising Modi’s “positive remarks.”

Moreover, Modi’s predecessor, Manmohan Singh, used to claim that, in their 5,000-year history, India and China fought only one war, in 1962. What this rose-tinted history failed to acknowledge was that China and India became neighbors only after China annexed the buffer Tibet in 1951.

Given India’s accommodating rhetoric, it is easy to view the country as a paper tiger. While Modi has used the phrase “inch toward miles” as the motto of India-China cooperation, the PLA has continued its cynical territorial aggrandizement by translating that slogan into incremental advance. After spending so many years on the defensive, India must retake the narrative.

The first order of business is to abandon the platitudes. Modi’s calls for border peace and tranquility might be sincere, but his tone has made India look like a meek enabler.

yh9Tk17LChina’s fast-growing trade surplus with India, which has doubled to almost $60 billion on Modi’s watch, has increased Chinese President Xi Jinping’s territorial assertiveness. The absence of clarity about the frontier – China reneged on a 2001 promise to exchange maps with India – serves as cover for the PLA’s aggression, with China denying all incursions and claiming that its troops are operating on “Chinese land.” But, by acquiescing on bilateral trade – the dumping of Chinese-made steel on the Indian market is just one of many examples – India has inadvertently helped foot the bill for the PLA’s encirclement strategy.

China’s financial regional leverage has grown dramatically in the past decade, as it has become almost all Asian economies’ largest trade and investment partner. In turn, many of the region’s developing countries have moved toward China on matters of regional security and transport connectivity. But, as Modi himself has stressed, there remains plenty of room for India to engage in Asia’s economic development. A more regionally integrated Indian economy would, by default, serve as a counterweight to China’s territorial expansion.

India should also beef up its border security forces to become a more formidable barrier to the PLA. India’s under-resourced Indo-Tibetan Border Police, under the command of the home ministry, is little more than a doorman. Training and equipping these units properly, and placing them under the command of the army, would signal to China that the days of an open door are over.

If the tables were turned, and Indian forces were attempting to chip away at Chinese territory, the PLA would surely respond with more than words. But in many cases, Indian border police patrolling the area don’t even carry weapons. With such a docile response, China has been able to do as it pleases along India’s northern frontier. China’s support of the Pakistani military, whose forces often fire at Indian troops along the disputed Kashmir frontier, should be viewed in this light.

The PLA began honing its “salami tactics” in the Himalayas in the 1950s, when it sliced off the Switzerland-size Aksai Chin plateau. Later, China inflicted a humiliating defeat on India in the 1962 border war, securing peace, as a state mouthpiece crowed in 2012, on its own terms. Today, China pursues a “cabbage” approach to borders, cutting off access to an adversary’s previously controlled territory and gradually surrounding it with multiple civilian and security layers.

Against this backdrop, the true sign of Himalayan peace will not be the holstering of guns, but rather the end of border incursions. India’s accommodating approach has failed to deter China. To halt further encroachments, India will need to bare its own teeth.

© 1995-2017 Project Syndicate.

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The Age of Blowback Terror

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A column internationally syndicated by Project Syndicate.

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World powers have often been known to intervene, overtly and covertly, to overthrow other countries’ governments, install pliant regimes, and then prop up those regimes, even with military action. But, more often than not, what seems like a good idea in the short term often brings about disastrous unintended consequences, with intervention causing countries to dissolve into conflict, and intervening powers emerging as targets of violence. That sequence is starkly apparent today, as countries that have meddled in the Middle East face a surge in terrorist attacks.

Last month, Salman Ramadan Abedi – a 22-year-old British-born son of Libyan immigrants – carried out a suicide bombing at the concert of the American pop star Ariana Grande in Manchester, England. The bombing – the worst terrorist attack in the United Kingdom in more than a decade – can be described only as blowback from the activities of the UK and its allies in Libya, where external intervention has given rise to a battle-worn terrorist haven.

The UK has not just actively aided jihadists in Libya; it encouraged foreign fighters, including British Libyans, to get involved in the NATO-led operation that toppled Colonel Muammar el-Qaddafi’s regime in 2011. Among those fighters was Abedi’s father, a longtime member of the al-Qaeda-linked Libyan Islamic Fighting Group, whose functionaries were imprisoned or forced into exile during Qaddafi’s rule. The elder Abedi returned to Libya six years ago to fight alongside a new Western-backed Islamist militia known as the Tripoli Brigade. His son had recently returned from a visit to Libya when he carried out the Manchester Arena attack.

This was not the first time a former “Islamic holy warrior” passed jihadism to his Western-born son. Omar Saddiqui Mateen, who carried out last June’s Pulse nightclub shooting in Orlando, Florida – the deadliest single-day mass shooting in US history – also drew inspiration from his father, who fought with the US-backed mujahedeen forces that drove the Soviet Union out of Afghanistan in the 1980s.

In fact, the United States’ activities in Afghanistan at that time may be the single biggest source of blowback terrorism today. With the help of Pakistan’s Inter-Services Intelligence agency and Saudi Arabia’s money, the CIA staged what remains the largest covert operation in its history, training and arming thousands of anti-Soviet insurgents. The US also spent $50 million on a “jihad literacy” project to inspire Afghans to fight the Soviet “infidels” and to portray the CIA-trained guerrillas as “holy warriors.”

1021324883After the Soviets left, however, many of those holy warriors ended up forming al-Qaeda, the Taliban, and other terrorist groups. Some, such as Osama bin Laden, remained in the Afghanistan-Pakistan belt, turning it into a base for organizing international terrorism, like the September 11, 2001, attacks in the US. Others returned to their home countries – from Egypt to the Philippines – to wage terror campaigns against what they viewed as Western-tainted governments. “We helped to create the problem that we are now fighting,” then-Secretary of State Hillary Clinton admitted in 2010.

Yet the US – indeed, the entire West – seems not to have learned its lesson. Clinton herself was instrumental in coaxing a hesitant President Barack Obama to back military action to depose Qaddafi in Libya. As a result, just as President George W. Bush will be remembered for the unraveling of Iraq, one of Obama’s central legacies is the mayhem in Libya.

In Syria, the CIA is again supporting supposedly “moderate” jihadist rebel factions, many of which have links to groups like al-Qaeda. Russia, for its part, has been propping up its client, President Bashar al-Assad – and experiencing blowback of its own, exemplified by the 2015 downing of a Russian airliner over the Sinai Peninsula. Russia has also been seeking to use the Taliban to tie down the US militarily in Afghanistan.

As for Europe, two jihadist citadels – Syria and Libya – now sit on its doorstep, and the blowback from its past interventions, exemplified by terrorist attacks in France, Germany, and the UK, is intensifying. Meanwhile, Bin Laden’s favorite son, Hamza bin Laden, is seeking to revive al-Qaeda’s global network.

Of course, regional powers, too, have had plenty to do with perpetuating the cycle of chaos and conflict in the Middle East. Saudi Arabia may have fallen out with a fellow jihad-bankrolling state, Qatar, but it continues to engage in a brutal proxy war with Iran in Yemen, which has brought that country, like Iraq and Libya, to the brink of state failure.

Moreover, Saudi Arabia has been the chief exporter of intolerant and extremist Wahhabi Islam since the second half of the Cold War. Western powers, which viewed Wahhabism as an antidote to communism and the 1979 Shia “revolution” in Iran, tacitly encouraged it.

Ultimately, Wahhabi fanaticism became the basis of modern Sunni Islamist terror, and Saudi Arabia itself is now threatened by its own creation. Pakistan – another major state sponsor of terrorism – is also seeing its chickens coming home to roost, with a spate of terrorist attacks.

It is high time for a new approach. Recognizing that arming or supporting Islamist radicals anywhere ultimately fuels international terrorism, such alliances of convenience should be avoided. In general, Western powers should resist the temptation to intervene at all. Instead, they should work systematically to discredit what British Prime Minister Theresa May has called “the evil ideology of Islamist extremism.”

On this front, US President Donald Trump has already sent the wrong message. On his first foreign trip, he visited Saudi Arabia, a decadent theocracy where, ironically, he opened the Global Center for Combating Extremist Ideology. As the US and its allies continue to face terrorist blowback, one hopes that Trump comes to his senses, and helps to turn the seemingly interminable War on Terror that Bush launched in 2001 into a battle that can actually be won.

Brahma Chellaney, Professor of Strategic Studies at the New Delhi-based Center for Policy Research and Fellow at the Robert Bosch Academy in Berlin, is the author of nine books, including Asian Juggernaut, Water: Asia’s New Battleground, and Water, Peace, and War: Confronting the Global Water Crisis.

© 1995-2017 Project Syndicate.

Modi’s Russia Challenge

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Russian President Putin shakes hands with India's Prime Minister Modi during a photo opportunity ahead of their meeting at Hyderabad House in New Delhi

Brahma Chellaney, The Hindustan Times, June 2, 2017

Indian Prime Minister Narendra Modi’s Russia visit raises a fundamental question: Is Moscow still India’s ‘tried and trusted’ friend? Russia’s growing relations with India’s adversaries, China and Pakistan, have spurred unease in New Delhi. However, many in India have failed to grasp the factors driving Moscow’s overtures to Pakistan or its sale of offensive weapon systems to China.

Such moves have little to do with India. Russia may be in decline economically but, geopolitically, it is a resurgent power, spreading its geopolitical influence to new regions and pursuing rearmament at home. Russia is the only power willing to directly challenge US interests in the Middle East, Europe, Caspian Sea basin, Central Asia and now Afghanistan, where America is stuck in the longest war in its history.

In keeping with the maxim that countries have no permanent friends or enemies, only permanent interests, Russia has rejigged its geopolitical strategy to respond to the biting US-led sanctions against it since 2014. Russian President Vladimir Putin has significantly expanded the geopolitical chessboard on which Moscow can play against the US and NATO.

Putin has made Russia the central player in the bloody Syrian conflict, fuelled by outside powers. Until Russia launched its own air war in Syria in September 2015, the US-British-French alliance had the upper hand there, aiding supposedly ‘moderate’ jihadist rebels against Bashar al-Assad’s regime and staging separate bombing campaigns against ISIS. Russia’s direct intervention, without bogging down its military in the Syrian quagmire, has helped turn around Assad’s fortunes and reshaped Moscow’s relationships with Turkey, Israel and Iran.

As part of his multidimensional chess game, Putin is also building Russian leverage in other countries that are the key focus of US attention — from North Korea to Libya. But it is Russia’s warming relationship with the medieval Taliban — the US military’s main battlefield foe in Afghanistan — that seriously conflicts with India’s interest.

Russia’s new coziness with the Taliban, of course, does not mean that the enemy of its enemy is necessarily a permanent friend. Moscow is opportunistically seeking to use the Taliban as a tool to weigh down the US military in Afghanistan. Because of the Taliban’s command-and-control base and guerrilla sanctuaries in Pakistan, Moscow has also sought to befriend Islamabad. This imperative has been reinforced by the US refusal to bomb the Taliban’s command and control in Pakistan.

The paradox is that as India has moved strategically closer to the US, American policy has worked against India’s regional interests, propelling Russia to forge closer ties with Beijing and to build new relationships with the Taliban and Pakistan. The US still continues to fecklessly accommodate China and battle the Taliban on just one side of the Afghanistan-Pakistan divide. Russia is equally nonchalant if its geopolitical chess play squeezes Indian interests.

The revival of the “Great Game” in Afghanistan is just one manifestation of the US-Russian relationship turning more poisonous. Another sign is Moscow’s stepped-up courting of China. For example, with Russia staying quiet, last year’s BRICS Goa Declaration, at China’s insistence, omitted any reference to cross-border terrorism or to any Pakistan-based group yet mentioned ISIS and al-Nusra. Putin attended the recent “One Belt, One Road” summit in Beijing despite his concern that China is using that project to displace Russia as the dominant influence in Central Asia.

With Russia becoming the largest crude oil exporter to China, Moscow-Beijing ties are booming economically, yet underlying political suspicions and wariness remain. In the India-Russia case, it is the reverse: Relations are warm politically but the two-way trade is in sharp decline, slumping to less than $8 billion in 2015. US-led sanctions against Russia, by promoting Moscow-Beijing closeness, are undercutting a central US policy objective since the 1972 opening to Beijing — to drive a wedge between China and Russia.

For Putin, the sanctions represent war by other means and a justification for Russia to countervail US power. With the US Congress threatening to impose additional sanctions even as a special counsel investigates alleged collusion between President Donald Trump’s election campaign and Moscow, US-Russian tensions and rivalries will continue to buffet India’s regional interests, but serve as a strategic boon for China.

Against this background, Modi faces an exigent challenge to revitalize a flagging partnership with Russia while safeguarding India’s regional security and its $3 billion development aid to Afghanistan since 2002. This challenge is compounded by the fact that a robust relationship with Moscow is vital to a balanced Indian foreign policy, to leveraging India’s ties with other powers, and to managing an increasingly muscular China. A drifting relationship with Russia would crimp India’s options, to its serious detriment.

Brahma Chellaney is a geostrategist and author.

© The Hindustan Times, 2017. 

China’s Imperial Overreach

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A column internationally syndicated by Project Syndicate

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HONG KONG – Chinese President Xi Jinping’s tenure has been marked by high ambition. His vision – the “Chinese dream” – is to make China the world’s leading power by 2049, the centenary of communist rule. But Xi may be biting off more than he can chew.

A critical element of Xi’s strategy to realize the Chinese dream is the “one belt, one road” (OBOR) initiative, whereby China will invest in infrastructure projects abroad, with the goal of bringing countries from Central Asia to Europe firmly into China’s orbit. When Xi calls it “the project of the century,” he may not be exaggerating.

In terms of scale or scope, OBOR has no parallel in modern history. It is more than 12 times the size of the Marshall Plan, America’s post-World War II initiative to aid the reconstruction of Western Europe’s devastated economies. Even if China cannot implement its entire plan, OBOR will have a significant and lasting impact.

Of course, OBOR is not the only challenge Xi has mounted against an aging Western-dominated international order. He has also spearheaded the creation of the Asian Infrastructure Investment Bank, and turned to China’s advantage the two institutions associated with the BRICS grouping of emerging economies (the Shanghai-based New Development Bank and the $100 billion Contingent Reserve Arrangement). At the same time, he has asserted Chinese territorial claims in the South China Sea more aggressively, while seeking to project Chinese power in the western Pacific.

But OBOR takes China’s ambitions a large step further. With it, Xi is attempting to remake globalization on China’s terms, by creating new markets for Chinese firms, which face a growth slowdown and overcapacity at home.

With the recently concluded OBOR summit in Beijing having drawn 29 of the more than 100 invited heads of state or government, Xi is now in a strong position to pursue his vision. But before he does, he will seek to emerge from the National Congress of the Chinese Communist Party later this year as the country’s most powerful leader since Mao Zedong.

Since taking power in 2012, Xi has increasingly centralized power, while tightening censorship and using anti-corruption probes to take down political enemies. Last October, the CCP bestowed on him the title of “core” leader.

Yet Xi has set his sights much higher: he aspires to become modern China’s most transformative leader. Just as Mao helped to create a reunified and independent China, and Deng Xiaoping launched China’s “reform and opening up,” Xi wants to make China the central player in the global economy and the international order.

So, repeating a mantra of connectivity, China dangles low-interest loans in front of countries in urgent need of infrastructure, thereby pulling those countries into its economic and security sphere. China stunned the world by buying the Greek port of Piraeus for $420 million. From there to the Seychelles, Djibouti, and Pakistan, port projects that China insisted were purely commercial have acquired military dimensions.

But Xi’s ambition may be blinding him to the dangers of his approach. Given China’s insistence on government-to-government deals on projects and loans, the risks to lenders and borrowers have continued to grow. Concessionary financing may help China’s state-owned companies bag huge overseas contracts; but, by spawning new asset-quality risks, it also exacerbates the challenges faced by the Chinese banking system.

The risk of non-performing loans at state-owned banks is already clouding China’s future economic prospects. Since reaching a peak of $4 trillion in 2014, the country’s foreign-exchange reserves have fallen by about a quarter. The ratings agency Fitch has warned that many OBOR projects – most of which are being pursued in vulnerable countries with speculative-grade credit ratings – face high execution risks, and could prove unprofitable.

Xi’s approach is not helping China’s international reputation, either. OBOR projects lack transparency and entail no commitment to social or environmental sustainability. They are increasingly viewed as advancing China’s interests – including access to key commodities or strategic maritime and overland passages – at the expense of others.

In a sense, OBOR seems to represent the dawn of a new colonial era – the twenty-first-century equivalent of the East India Company, which paved the way for British imperialism in the East. But, if China is building an empire, it seems already to have succumbed to what the historian Paul Kennedy famously called “imperial overstretch.”

And, indeed, countries are already pushing back. Sri Lanka, despite having slipped into debt servitude to China, recently turned away a Chinese submarine attempting to dock at the Chinese-owned Colombo container terminal. And popular opposition to a 15,000-acre industrial zone in the country has held up China’s move to purchase an 80% stake in the loss-making Hambantota port that it built nearby.

Shi Yinhong, an academic who serves as a counselor to China’s government, the State Council, has warned of the growing risk of Chinese strategic overreach. And he is already being proved right. Xi has gotten so caught up in his aggressive foreign policy that he has undermined his own diplomatic aspirations, failing to recognize that brute force is no substitute for leadership. In the process, he has stretched China’s resources at a time when the economy is already struggling and a shrinking working-age population presages long-term stagnation.

According to a Chinese proverb, “To feed the ambition in your heart is like carrying a tiger under your arm.” The further Xi carries OBOR, the more likely it is to bite him.

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Money trumps anti-terror task

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Donald Trump’s embrace of a country he long excoriated for its role in sponsoring terrorism reflects the fact that Saudi Arabia is a cash cow for American defense, energy and manufacturing companies.

BY , The Japan Times

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Want evidence that money speaks louder than the international imperative to counter a rapidly metastasizing global jihadi threat, as symbolized by the latest attack in Manchester? Look no further than U.S. President Donald Trump’s recent visit to the world’s chief ideological sponsor of jihadism, Saudi Arabia. The trip yielded business and investment deals for the United States valued at up to almost $400 billion, including a contract to sell $109.7 billion worth of arms to a country that Trump previously accused of being complicit in 9/11.

By exporting Wahhabism — the hyper-conservative strain of Islam that has instilled the spirit of martyrdom and become the source of modern Islamist terror — Saudi Arabia is snuffing out the more liberal Islamic traditions in many countries. Indeed, Saudi Arabia’s Wahhabi fanaticism is the root from which Islamist terrorist organizations ranging from the Islamic State group (which claimed responsibility for the Manchester concert attack) to al-Qaida draw their ideological sustenance.

The Manchester attack, occurring close on the heels of Trump’s Saudi visit, has cast an unflattering light on his choice of a decadent theocracy for his first presidential visit overseas. The previous four U.S. presidents made their first trips to a neighboring ally — either Mexico or Canada, which are flourishing democracies. But Trump, the businessman, always seeks opportunities to strike deals, as underscored by his 100-day trade deal with the world’s largest autocracy, China.

But Trump is not alone. In thrall to Saudi money, British Prime Minister Theresa May traveled to Riyadh six weeks before Trump on her most controversial visit since taking office. As if to signal that a post-Bexit Britain would increasingly cozy up to rich despotic states, May flew to Saudi Arabia shortly after triggering Article 50, an action that started a two-year countdown for her country’s exit from the European Union. She has also stepped up her courting of China and enthusiastically endorsed Beijing’s “One Belt, One Road” program, which many EU states see as lacking in transparency and social and environmental accountability.

Anglo-American support and weapons have aided Saudi war crimes in Yemen, which is now on the brink of famine. Mass starvation would ensue there if the Saudis execute their threat to attack the city of Hodeida, now the main port for entry of Yemen’s food supplies. Britain alone has sold over £3 billion worth of arms to Riyadh since the cloistered Saudi royals began their bombardment and naval blockade of Yemen more than two years ago. While London is planning to sell more weapon systems, Trump’s arms package for the Saudis includes guided munitions that were held up by his predecessor, Barack Obama.

Salvaging the global war on terror demands a sustained information campaign to discredit the ideology of radical Islam. But as long as Saudi Arabia continues to shield its insidious role in aiding and abetting extremism by doling out multibillion-dollar contracts to key powers like the U.S. and Britain, it will be difficult to bring the war on terror back on track.

Trump exemplifies the challenge. In a speech to leaders from across the Muslim world who had gathered in Saudi Arabia, the “Make America Great Again” campaigner championed “Make Islam Great Again.” After earlier saying “Islam hates us” and calling for a “total and complete shutdown” of Muslims entering the U.S., Trump described Islam as “one of the world’s great faiths” and urged “tolerance and respect for each other.”

It was weird, though, that Trump spoke about the growing dangers of Islamic extremism from the stronghold of global jihadism, Saudi Arabia. The new Global Center for Combating Extremist Ideology that he opened in Riyadh promises to stand out as a symbol of U.S. hypocrisy.

The long-standing U.S. alliances with Arab monarchs have persisted despite these royals bankrolling Islamic militant groups and Islamic seminaries in other countries. Trump cannot hope to deliver credible or enduring counterterrorism results without disciplining Saudi Arabia, Qatar and the other oil sheikhdoms that continue to export Islamic radicalism. But he has already discovered that this is no easy task.

For example, the U.S. alliance with Saudi Arabia yields exceptionally huge contracts and investments for the American economy. In short, Saudi Arabia is a cash cow for American defense, energy and manufacturing companies, as the latest mega-deals illustrate.

Against this background, Trump’s embrace of a country that he long excoriated reflects the success of the American “deep state” in taming him. Hyping the threat from Iran, even if it fuels the deep-seated Sunni-Shiite rivalry, helps to bolster U.S. alliances with Arab royals and win lucrative arms contracts.

Ominously, Trump in Saudi Arabia spoke of building a stronger alliance with Sunni countries, with U.S. officials saying the defense arrangements could evolve into an “Arab NATO.” However, the Sunni arc of nations is not only roiled by deep fissures, but also it is the incubator of transnational jihadis who have become a potent threat to secular, democratic states near and far. IS, al-Qaida, the Taliban, Laskar-e-Taiba, Boko Haram and al-Shabaab are all Saudi-inspired Sunni groups that blend hostility toward non-Sunnis and anti-modern romanticism into nihilistic rage.

In this light, Trump’s Sunni-oriented approach could worsen the problems of jihadism and sectarianism, undermining the anti-terror fight.

The murky economic and geopolitical considerations presently at play foreshadow a long and difficult international battle against the forces of terrorism. The key to battling violent Islamism is stemming the spread of the ideology that has fostered “jihad factories.” There can be no success without closing the wellspring of terrorism — Wahhabi fanaticism. But who will have the courage to bell the cat?

A long-standing contributor to The JapanTimes, Brahma Chellaney is a geostrategist and the author of nine books, including “Water, Peace, and War” (Rowman & Littlefield).

© The Japan Times, 2017.

A win comes with a challenge for India

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Brahma Chellaney, DNA

Clipboard01Pakistan is an incorrigibly scofflaw state for whom international law matters little. Still, India was left with no option but to haul Pakistan before the International Court of Justice after a secret Pakistani military court sentenced to death a former Indian naval officer, Kulbhushan Jadhav, for being an Indian “spy”. At a time when there was no hope to save Jadhav, the ICJ interim order has come as a shot in the arm for India diplomatically.

However, Pakistan’s response to the provisional but binding order that it does not accept ICJ’s jurisdiction in national security-related matters underscores India’s challenge in dealing with a country that violates canons of civilized conduct and engages in barbaric acts, as exemplified by the recent beheading of two Indian soldiers. The concept of good-neighbourly relations seems alien to Pakistan. For example, in the Kashmir Valley, the Pakistani military establishment is actively promoting civil resistance after its strategy of inciting an armed insurrection against India has yielded limited results.

For years, India has stoically put up with the Pakistani military’s export of terrorism. Even as Pakistan violates the core terms of the Simla peace treaty, India faithfully adheres to the Indus Waters Treaty (IWT).

Significantly, the ICJ’s welcome interim order has followed a string of setbacks suffered by India between 2013 and 2016 in three separate cases before international arbitral tribunals. One case involved a maritime boundary dispute in the Bay of Bengal, with the tribunal awarding Bangladesh almost four-fifths of the disputed territory.

A second case, instituted by Pakistan, related to the IWT and centred on its challenge to India’s tiny 330-megawatt Kishenganga hydropower plant. The third case was filed by Italy over India’s initiation of criminal proceedings against two Italian marines, who were arrested for killing two unarmed Indian fishermen.

Despite apparent flaws in the decisions of the tribunals in all three cases, India abided by them. The ICJ is a higher judicial organ than any tribunal, yet it lacks any practical mechanism to enforce its rulings. If Pakistan does not abide by the ICJ order, it will expose itself thoroughly as a rogue state.

In a world in which power respects power, the international justice system cannot tame a wayward state like Pakistan. In the final analysis, India has to tame Pakistan on its own. The ICJ interim order should not obscure this harsh reality.

© DNA, 2017.

Water pincer against India

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China steps up its challenge to India by signing an accord with Pakistan to fund and build two mega-dams in Gilgit-Baltistan, which the United Nations recognizes as a disputed region and part of Jammu and Kashmir.

Brahma Chellaney, The Times of India, May 16, 2017

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China, which is working to re-engineer the trans-boundary flows of rivers originating in Tibet, has taken its dam-building frenzy to Pakistan-occupied Gilgit-Baltistan, which is part of Jammu and Kashmir. In a new challenge to India, which claims Gilgit-Baltistan as its own territory, China will fund and build two Indus mega-dams at a total cost of $27 billion, according to a memorandum of understanding (MoU) signed in Beijing during Prime Minister Nawaz Sharif’s visit. The MoU came the same day India announced its boycott of China’s “one belt, one road” (OBOR) summit, saying no country “can accept a project that ignores its core concerns on sovereignty and territorial integrity”.

Such is the mammoth size of the planned 7,100-megawatt Bunji Dam and the 4,500-megawatt Bhasha Dam that India does not have a single dam measuring even one-third of Bunji in power-generating-capacity terms. In fact, the total installed hydropower generating capacity in India’s part of J&K currently does not equal the size of even the smaller of the two planned dams in Gilgit. Still, Pakistan disingenuously rails against India’s modest hydropower projects in J&K and has sought fresh international arbitral tribunal proceedings against India over two projects, including the tiny 330-megawatt Kishenganga.

Even more striking is China’s hypocrisy: It bellicosely protested, almost on a daily basis, the Dalai Lama’s recent visit to Arunachal Pradesh, claiming it to be a “disputed territory”, although only Beijing disputes India’s control over Arunachal. It also held out threats against India jointly exploring with Vietnam for offshore hydrocarbons in Vietnam’s exclusive economic zone. Yet it has no compunctions about unveiling projects — under the “China-Pakistan Economic Corridor” (CPEC) banner — in Pakistan-occupied Jammu and Kashmir, a UN-recognized disputed region.

C_6ju34UQAAiEYXCPEC — OBOR’s flagship programme, which will cement Pakistan’s status as China’s economic and security client — has become a convenient cover for Beijing to include major strategic projects, stretching from Gilgit-Baltistan to Pakistan’s Chinese-built Gwadar port. The Bunji and Bhasha dams are also claimed to be part of CPEC, which, by linking the maritime and overland “Silk Roads” that China is creating, will gravely impinge on India’s security. A grateful Pakistan has given China exclusive rights to run Gwadar port for the next 40 years.

The Bunji and Bhasha dams, which will largely benefit the dominant Punjab province, located downstream, are set to enlarge China’s strategic footprint in the restive, Shia-majority Gilgit-Baltistan. For years, China has stationed several thousand of its own troops in Gilgit-Baltistan, ostensibly to protect its strategic projects there, including upgrading the Karakoram Highway and building a new railway and secret tunnels. CPEC has spurred increased concern that Gilgit-Baltistan, like Tibet, could get overwhelmed by the Chinese behemoth.

Pakistani authorities are responding harshly to anti-CPEC protests in Gilgit-Baltistan, where the corridor is widely seen as opening the path to the region’s enslavement by China. The fact that China rules Gilgit-Baltistan’s Shaksgam, Raskam, Shimshal, and Aghil valleys — ceded by Pakistan in 1963 to cement its strategic alliance with Beijing — has only added to the grassroots resistance against Chinese projects, which extend to mineral-resource extraction.

Indeed, the Bunji and Bhasha dam projects are already facing grassroots resistance because they are viewed locally as instruments to expropriate Gilgit-Baltistan’s water resources for Punjab province. The Bhasha Dam alone will flood 200 square kilometers of Gilgit-Baltistan, displacing at least 28,000 residents and submerging some significant archaeological sites.

As China uses CPEC to turn Pakistan into a colonial outpost, its new dam projects in Gilgit promise to bring the Indus Waters Treaty (IWT) under greater pressure. The paradox here is that China does not accept even the concept of water sharing but its activities in Gilgit are likely to impinge on the world’s most generous water-sharing treaty that remains a colossus among water pacts in the world.

The 57-year-old IWT has survived mainly because of India’s goodwill and full adherence, even as Pakistan violates the Simla peace treaty and canons of civilized conduct. China’s construction of dams in a disputed region is set to make Pakistan’s water relationship with India murkier. The IWT is binational but China has emerged as the third party through its Gilgit dam activities and upstream control of two of the six Indus-system rivers. The Chinese role will not only cast a pall on the IWT’s future but it could also deal a mortal blow to the treaty.

Brahma Chellaney is a geostrategist.

© The Times of India, 2017.