Maintaining ‘Entanglement’: APEC Summit Discussions including the Xi-Biden Bilateral Summit

Doing some quick catch up on the APEC Summit that was held between November 11th and 17th in San Francisco. The main event, as it turned out, was the much discussed bilateral summit between China’s Xi Jinping and US President Joe Biden. While the Indo-Pacific Economic Framework for Prosperity (IPEF) meetings to receive some attention – more for what didn’t happen than what was secured – the APEC gathering activity was dominated by US-China Bilateral Summit and there was some attention paid to the other bilateral Summit of note that between President Xi and the Japanese Prime Minister Fumio Kishida.

The Post here is constructed from several Substack Posts in Alan’s Newsletter: “Maintaining ‘Entanglement‘: APEC Summit discussions and more” and “It’s working; just not like what was anticipated: The sudden rise of Bilaterals”; and “So Success, or What? Final thoughts on the Summits in San Francisco”. Feel free to subscribe to my Substack: Alan’s Newsletter

Maintaining ‘Entanglement’: APEC Summit discussions and more

It appears that we are likely to see a meeting this month of President Xi and President Biden at the margins of the APEC Summit. I think that is a good thing. What can we, or should we, expect from such a summit of leaders of the two leading powers? While contemplating this question, I was caught by two articles written by Brookings colleague, Ryan Hass. Ryan has recently been named director of the John L. Thornton China Center and holds the Chen-Fu and Cecilia Yen Koo Chair in Taiwan Studies at Brooking is also a senior fellow in the Center for East Asia Policy Studies. Ryan has contributed two first rate articles on US-China relations – what they are, and what they need to be.*

First, there is the big question of where US-China relations are, and then where they need to be? There is little question that Ryan is correct in believing that the US and the global order would be far worse off if China were to exit the current international system fragmenting what is still a critical -and I believe necessary – ‘single international community’. As Ryan urged in one of the two contributions, this a recent Foreign Affairs piece:

Washington should aim to preserve a functioning international system that supports U.S. security and prosperity—and that includes China rather than isolates it. Meanwhile, the United States should maintain a strong military to deter China from using force against the United States or its security partners and seek to sustain an overall edge over China in technological innovation, particularly in fields with national security implications. … Washington’s goal should be to keep China entangled in a global system that regulates interstate behavior and pushes Beijing to conclude that the best path to the realization of its national ambitions would be to operate within existing rules and norms.

‘Entanglement’ as a strategic aim strikes me as ‘right on target’.

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Advancing Global Governance by Revitalizing a Regional Institution

While I have suggested earlier that I don’t think an initial  focus on building regional or multilateral institutions is necessarily the best first step in global governance and possibly a means to ‘tone down’ geopolitical competition rhetoric and action, I am now about to contradict myself and this position. For, in the end, there are some obvious regional and international institutions that could encourage collaborative action and push global governance collaboration. And, in fact, I have in mind an obvious one that has – as a current Chinese slang term might well describe it – ‘tang ping’  躺平 – or ‘lying flat’. It is the Trilateral Summit.

Trilateral Summit, you say. Well, yes, actually. The Trilateral Summit is, periodically, a Summit of the ‘key’ East Asia leaders – South Korea, Japan and most meaningfully,  China. A little history here. The Trilateral Summit was first proposed by South Korea in 2004. At that time the three powers met for a separate session at the ASEAN gathering, described as ASEAN plus three. In 2007, at the eighth meeting of the ASEAN plus Three, the leaders agreed to initiate a separate Trilateral Summit. And, in December 2008, the first separate summit was hosted by Japan at Fukuoka. At its initiation the three powers saw the Summit focusing on: closer trilateral relations, the regional economy and disaster relief.  One of the regional security issues that has been in front of leaders repeatedly has been the nuclear weapons program of the Democratic Republic of Korea, the DPRK. In the 2018 summit the FT  described the leaders’ view of the DPRK nuclear weapons program: “the three leaders agreed to co-operate over North Korea and called for Pyongyang to give up its nuclear weapons completely.” While that agreement may no longer hold, it shows the value of this Summit.

The Summit is not quite a leaders’ gathering. While South Korea is often represented by its President and Japan by its Prime Minister, China has generally been led by its premier, not the President.

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Evaluating Prime Minister Shinzo Abe’s Legacy

 

The remarkable thing about former Prime Minister Abe is that he started out as a nationalist. In his early years as a politician he focused on restoring Japan’s pride after the shame of World War II and the Tokyo Tribunal. As a prime minister, however, he took both a more pragmatic and a more internationalist approach. Shinzo Abe ended up having a global impact: not only, did he build more regional connections across the Indo-Pacific than any previous Japanese Prime Minister; he also rose up to become the defender of the liberal international order during the Trump Presidency, making strides both in developing international trade agreements and in advancing security alliances.

Shinzo Abe came from a blue blood political family, based in a Yamaguchi prefecture, the former Chōshū Domain (長州藩, Chōshū-han) that led the Meiji Restoration along with Satsuma and Tosa. His grandfather Kishi had led the industrial development of Manchukuo in the 1930s and served as Minister of Commerce in the Tojo Cabinet. Arrested by the American military in 1945 as suspected war criminal, he was released without trial in 1948, in part due his potential role as conservative leader in post-war Japan. He served as Prime Minister from 1957-1960, during which he led the renewal of the US-Japan Security Treaty. Abe’s uncle, Sato Eisaku was also Prime Minister from 1964 to 1972. In fact Prime Minister Eisaku was the longest uninterrupted Prime Minister until Shinzo Abe outlasted him!  Abe’s father, Abe Shintaro, was a leading politician in his time, serving as minister in various portfolios (including the Ministry of Economy, Trade and Industry (METI) and Foreign Affairs) between 1972 and 1986. He was narrowly defeated as potential Prime Minister.

In the 1990s and 2000s, Shinzo Abe was well-known for his denunciation of the Tokyo tribunal and its conclusions on Japanese guilt, his links with nationalist groups, and advocacy of a “beautiful” or normal Japan with full autonomy and a real army. The issue that motivated him the most throughout his political life was to change the constitution written by the American occupiers, particularly Article 9, which formally forbade Japan to hold an Army or have the right of belligerency. This was a mission inherited from his grandfather, Kishi. And Shinzo Abe did bring that agenda to office in his first term as Prime Minister in 2006-2007, and quickly lost public support for it.

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Summit for Democracy – Who and Where is the Threat?

 

So, the Summit for Democracy has come and gone. Much commentary preceded, accompanied, and then followed this December 9th and 10th gathering. Truth be told there is a continuing stream of observations still. Various countries openly applauded the Summit though unsurprisingly those uninvited pushed back starkly including in the case of China holding a conference of many of the uninvited.

The lingering question for the global order and its key participants remain: what does this Summit announced early on by then presidential candidate Joesph Biden tell us about current US foreign policy; what is Biden’s strategic policy framework particularly in relationship to China and Russia – the two most evident rivals and authoritarian states; and what is the conclusion drawn by close US allies and partners? What has been gained; what has been hindered and harmed?

The lack of clarity over the purpose of this Summit is fairly evident. This Administration has left seemingly a variety of presumed goals ‘on the table’. It appears in fact as though  the Administration identified at least three goals: an anti-corruption initiative; a protection of human right and more broadly a protection of democracy; and an autocracy versus democracy foreign policy approach, presumably part of a US democracy promotion goal.

On the democracy protection front the Administration offered a number of policy initiatives, including funding: As President Biden identified these efforts in his opening remarks:

Working with our Congress, we’re planning to commit as much as $224 million[$424 million] in the next year to shore up transparent and accountable governance, including supporting media freedom, fighting international corruption, standing with democratic reformers, promoting technology that advances democracy, and defining and defending what a fair election is. 

This initiative was part of the US effort to encourage all participants to set goals and report back in a follow up on these commitments. As the President expressed it:

… and to make concrete commitments of how — how to strengthen our own democracies and push back on authoritarianism, fight corruption, promote and protect human rights of people everywhere. To act. To act. This summit is a kick-off of a year in action for all of our countries to follow through on our commitments and to report back next year on the progress we’ve made. 

Still the clarity surrounding the Summit was never very evident to most.  Indeed there appears to be no agreement on the nature of the declared initiatives . Observers have taken the above to be democratic promotion and not protection.  This multiplicity of goals and their accompanying confusion have enabled experts, officials and commentators to choose their own goal from the menu of options offered by the Administration. Ben Judah at the New Atlanticist described one view of the Summit: Continue reading

How Japan Can Navigate Growing US-China Tensions

US-China tensions have emerged to dominate the geopolitical space. How is this rivalry affecting states, particularly in the Asian context? Japan, a long-standing ally to the US, and at the same time a key economic partner to China, finds itself, as do other states in the region, in a difficult position. Still the US-China rivalry alone fails to fully define the foreign policy challenges Japan faces currently. With the Olympics just recently completed in Japan, and COVID-19 numbers on the rise, vaccination numbers still relatively low, continuing cool relations with South Korea, nuclear tensions with North Korea, and finally a looming national election, it is important to recognize that there are a variety of serious issues that Japan’s current political leadership faces.

The US provides Japan with defence and security, but China boosts the Japanese economy, with 22% of Japanese exports going to China in 2019 alone and increasing another 5.1 percent in 2020. Japan is wary of losing its status as a major power but understands that choosing between the two superpowers is surely a lose-lose proposition.

Territorial Disputes

Territorial disputes are a long-standing issue for Japan. Between 2010-2012 tensions began escalating with China over the Senkaku Islands in the East China Sea. However, while the Senkaku Islands remain an area of contention, the question of Taiwan is a cause for even greater concern. Japan’s southernmost island, Yonaguni, is just some 111km east of Taiwan, and in recent months, China’s presence around Taiwan has grown. Threats have increased. In April 2021, when Prime Minister Suga visited President Biden in Washington, their joint statement on the renewal of the US-Japan partnership mentioned “Taiwan” for the first time since 1969: “We underscore the importance of peace and stability across the Taiwan Strait and encourage the peaceful resolution of cross-Strait issues.”

Beijing responded harshly to the statement and accused the US of interfering in “internal affairs”. For a country like Japan, a response of this nature raises concern: China’s been known to utilize economic means to retaliate against countries that condemn their actions. Therefore, while it may be important for Japan to collaborate and work with the US on matters relating to Taiwan, Japan is treading quite carefully with China.

Former Japanese Prime Minister Yukio Hatoyama argued that the US-Japan Joint Statement’s mentioning of “Taiwan” was counterproductive to seeking cooperative relations with China. However, various US military officials in the Indo-Pacific have argued conflict between China and Taiwan is highly probable in the next six years. Given Japan’s proximity to Taiwan and the US’s presence in the region, Japan must consider the wider geopolitical implications.

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The March of Global Order

This Post is a collaboration with Yves Tiberghien Professor of Political Science at UBC and RisingBRICSAM blogger Alan Alexandroff.both Principals at the Vision20. It underscores that key actors in Asia, Europe and elsewhere are not waiting on the United States to return to global collaboration and multilateral action.

Out of Asia there is a major push on various global governance fronts. The world is not waiting for the United States. And in fact Joe Biden, the President Elect and his people are going to have to think ‘hard’ about whether they are prepared to be ‘left behind’ in the march forward of various multilateral gatherings. Are the demands of domestic politics and the Democratic Party’s distaste for ‘free trade arrangements’ going to leave the Biden Administration lukewarm to rejoining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership or CPTPP? Lukewarm leaves the United States on the outside of efforts to integrate trade and investment in Asia and beyond.

While the Regional Comprehensive Economic Partnership (RCEP) is a limited integration of trade and investment, nevertheless the RCEP is the largest regional agreement concluded in Asia. The Pact covers 2.2 billion people and 15 countries . It includes China and other major economic actors including Japan and South Korea. As the NYTimes (2020) points out:

The pact will most likely formalize, rather than remake, business among the signatory countries. Its so-called rules of origin will set common standards to determine whether a final product qualifies for duty-free treatment, potentially making it simpler for companies to set up supply chains in several different countries.

While the RCEP lacks significant and needed steps to further liberalization and common regulation in key areas such as services trade, e-commerce, intellectual property protection and the elimination of manufacturing subsidies it is a key advance for the Asian region. As pointed out by Yves Tiberghien (2020) in a just published EastAsiaForum post:

RCEP will advance the acceleration of regional economic integration in Asia, and pushes back on Trump’s strategy of decoupling of US allies from China. While Southeast Asian countries, Japan, South Korea, and Australia may all be wary of China at the moment and seek diversity in their trade relations, they simply cannot sustain their prosperity without stabilisation of trade relations with China. Asia is criss-crossed by ever intensifying value chains, and China’s still an integral part of that. Vietnam and other ASEAN countries are rising as manufacturing hubs, but that’s a process accompanied by increased imports of intermediary goods from China.

But RCEP is also of global significance. The agreement, signed off in the middle of a pandemic and US–China trade war, reminds the world, first, that East Asia countries, unlike the Americas and Europe, have broadly succeeded in controlling COVID-19. That success, across different types of political regime, with a similar respect for science, expertise, and trust in government, was accompanied by general acceptance of mask-wearing and community rules.

Second, it also reminds the world that the biggest trading group in the world economy is doubling down on the rules-based multilateral system. Research by Homi Kharas shows that most of the increase in the global middle class until 2030 will take place in China and Asia.

 

RCEP also embeds the first trilateral agreement between China, South Korea and Japan, itself a huge deal. The common interests of these three countries have over-ridden tense geopolitical relations across the Asia Pacific. RCEP underscores the pragmatic efforts of Japan to balance its strong security stance on the South China Sea and in the East China Sea with stability in the bilateral relationship with China. After the completion of the CPTPP, the EU–Japan partnership, and the US–Japan agreement, this marks the completion of the Abe trade agenda (even though Japan would have preferred India to join RCEP). …

As well, RCEP brings significant institutionalization to Japan’s economic relations with China, including a new chapter on e-commerce (with a ban on data localisation requirements), rules on government procurement, and rules on intellectual property rights that go beyond WTO rules. The same calculations drive Australia’s readiness to sign RCEP in the midst of a bitter, but hopefully short-lived, trade fight with China.

The coming Biden Administration needs to rethink its reluctance to rejoin the CPTPP. If it fails to do this it could be on the outside of growing multilateral economic integration and possibly more.

Image Credit: Vietnam News Agency, via Associated Press.

At Least a Better Tone – On Sino-US Relations

Xi-Obama at Sunnylands

A noticeable difference in tenor.  That is the first thing that struck me about this Dialogue meeting just recently concluded in Beijing.  The tenor of this Harvard-CASS Think Tank Dialogue on “Towards a New Model of Major-Country Relations between China and the United States” differed significantly from the Harvard-Beida Conference of January 2013.  The earlier Harvard-Beida Conference was filled with defensiveness and harsh questioning by our Chinese colleagues over the ‘American pivot’.  Chinese experts made repeated references to US efforts to contain China.  The suspicions over US policy and its intentions in Asia – especially US efforts to contain China – were largely absent from this meeting – apparently the 9th in the series.  Instead, in this meeting there were numerous references to the 35th anniversary of US-China relations.

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