United States – The Acorn

America defeats itself

There will be fewer takers for US promises in Asia now

As promised, Donald Trump has pulled the United States out of the Trans-Pacific Partnership (TPP), a regional preferential trade agreement that his predecessor put together to secure American primacy in East Asia against a rising China. It does not matter that the TPP had not yet been tabled for Congressional approval. It does not matter that the TPP might not have yielded the outcomes its proponents claimed it would.

What matters is that in one stroke of a pen, President Trump has confirmed the lingering fears among East Asian countries that the United States is unreliable as a partner in their attempts to manage an aggressively rising China. Barack Obama’s ‘pivot’ to Asia–of which TPP was an important plank–was itself a response to similar fears during his first term. That pivot was at best a promise that the United States will remain engaged in the region, realists in East Asia tended to suspect that it was reassurance without adequate credibility.

The thinking within the Trump establishment appears to be that the United States can take on China on world trade and militarily in the waters of East Asia. Rex Tillerson, who will head the State Department, took a hawkish line on the latter, suggesting that the United States might deny China access to the islands it claims. Mr Trump and his colleagues seem to believe they can confront China in trade and in East Asian waters while eschewing economic engagement with the countries of the region. They will soon find out how mistaken they are.

Economics is the bloodstream of East Asian geopolitics. China is a major actor in the region not because it has gunboats and missiles, but because it has deep and growing economic relationships with almost all countries of the region. The economies of East Asia, South East Asia and Australia depend on China for their prosperity to various extents. Whatever disputes they might have with Beijing, if they do not see an alternative to China-driven growth, they are unlikely to support President Trump’s moves against China. The United States is likely to find itself isolated if it contemplates escalating conflict levels in the region.

It is likely that the powers in the region will seek protection by increasing their military capacity, and the bigger ones might even contemplate nuclearisation. Most will try to make their peace with China—to the extent possible, as long as it is possible. They will look towards India as a potential actor that can help balance China: to what extent this will work depends on how much and how fast New Delhi liberalises the Indian economy. Unfortunately, there is no indication that the Modi government is prepared to accelerate domestic liberalisation at a pace that can reassure its Asian neighbours.

India is in the geography, and over the long term will remain a potential hedge against China. The United States, though, has just about defeated itself.

“If at the end of it all you let [Abe] down, which next Japanese prime minister is going to count on you — not just on trade but on security?…If you are not prepared to deal when it comes to cars and services and agriculture, can we depend on you when it comes to security and military arrangements?”

— Lee Hsien Loong, Singapore’s prime minister, WSJ

Being credible

New Delhi must not buckle to Chinese pressure in its engagement of Indo-Pacific countries.

After hiatus of over a year, I resume my monthly column in the Business Standard on the geopolitics and geoeconomics of the Indo-Pacific region. As the edit page is behind a paywall, I will put up unedited drafts, excerpts or the published column a day or two after it is published.

The central argument of the first innings of this column (September 2010-October 2015) was a simple one: that India should recognise that East Asia is a part of its extended neighbourhood and that it is in our national interest to invest in the stability and security of the Indo-Pacific region.

Why? Because by the mid-2000s, China under Hu Jintao was shedding the facade of ‘peaceful rise’ and beginning to take assertive positions on its territorial disputes and claims in the waters off East and South-East Asia, causing the countries of the region to look towards India for support. In their strategic calculus, if they fail to bring the United States, China and India into a balance, they had little choice but to hop onto the Beijing bandwagon. Month after month, your columnist exhorted New Delhi to exploit the geopolitical and geoeconomic opportunities that Beijing had unintentionally created.

That prescription is just as valid today as it was seven years ago. Chinese foreign policy under Xi Jinping has moved from assertive to aggressive, always arrogant and increasingly adventurous. The men in black suits and hair dye in Beijing have not only completely blown the cover story of ‘peaceful rise’ but have managed to antagonise the regional powers in the Indo-Pacific.

Even as Beijing pushes Chinese hegemony under clever phrases such as “One Belt, One Road” (OBOR), Maritime Silk Road and “China Pakistan Economic Corridor” (CPEC), it does so in the absence of the regional goodwill that enabled its entry into the ASEAN-centred economic and security architectures in the early-2000s. South East Asian countries watch with increasing anxiety as their more of their ASEAN counterparts are attracted or coerced onto China’s camp. The divide that your columnist had predicted within ASEAN is now gaping wide.

President Xi appears to have moved beyond merely maintaining China’s claim in a dispute to pressing it. He might have calculated that Beijing is now strong enough to negotiate where it cannot just coerce the other side into caving in. In November last year, Hong Kong authorities seized military vehicles belonging to the Singapore Armed Forces on their way back from routine exercises in Taiwan. Given that the Singaporean armed forces have been training in Taiwan since the 1970s with China’s tacit non-disapproval, it is clear that Mr Xi deliberately upped the ante. Similarly, Beijing coerced Mongolia into submission after the latter allowed the Dalai Lama to visit the Gandan Monastery in Ulaanbaatar the same month. Since the Dalai Lama had visited Mongolia at least eight times earlier, Beijing’s reaction this time stands out as extraordinary.

This week, China sent its aircraft carrier through the Taiwan straits quite likely signalling a more aggressive stance on that issue. This comes a few weeks after it challenged the US Navy in the region by stealing an underwater drone from under its noses. It is uncertain how the incoming administration of Donald Trump will handle the military dimension of its relations with China, but Mr Xi is not done with testing the nerve of Washington’s new establishment.

As much as there is a regional demand for India to play a stronger role in regional security, it has become harder and riskier for New Delhi to do so. The Modi government is reportedly considering selling medium-range surface-to-air missiles to Viet Nam. Both New Delhi and Hanoi will come under Chinese pressure and possible retaliation if the deal goes through. It would be imprudent for New Delhi or Hanoi to back down under pressure. It is in Beijing’s interest to create a perception that India is unreliable as a partner, whose promise falls short of delivery. Chinese commentators suggested as much after Beijing arm-twisted Mongolia over the Dalai Lama’s visit, drawing attention to the fact that New Delhi’s promised $1 billion line of credit failed to save Ulaanbaatar from China’s economic coercion.

New Delhi should thus be scrupulously careful about the commitments that it makes, implies, or might be construed. Once made, it should not hesitate to keep them in the face of China’s opposition. With rising risks and emerging uncertainties, credibility is the new currency in the Indo-Pacific.

This is by no means an argument to deliberately antagonise China: it is in India’s interests to nurture a close relationship with its northern neighbour. To be an effective swing power, we must enjoy better relations with China and the United States than they have with each other.

This will not come by wishing for it, especially if the wishing is one-sided. Nor will it come by succumbing to Chinese hegemony. To the extent New Delhi accumulates economic strength and demonstrates foreign policy credibility, Beijing is likely to reciprocate India’s desire for amicable bilateral relations.

Geopolitics in Trump’s age

Perhaps it’s time for new champions of democracy, liberty and open economies

I was in a panel discussion with Steve Coll, dean of the Columbia Journalism School and T K Arun, senior editor of the Deccan Herald at the Deccan Herald Spotlight, Taj West End, Bangalore on 9th January 2017. The topic of discussion was Trump and geopolitics. The following is an outline of my initial remarks. (Read the newspaper report here)

The bases for US global leadership have become uncertain
- Resilience of its democracy is uncertain (more than merely risky)
- Its status as a magnet for the world’s most talented people is also uncertain
Trump’s rhetoric and posturing will cause others to adopt protectionist policies and withdraw behind walls and fences, at least in the short term.
- This might reverse in the longer term but we can’t be sure how long that will take and what we’ll have to endure in the meantime
For the first time, the factors that propelled India’s & China’s unprecedented growth will come under a cloud. China is luckier because it started earlier and was most focused.
- For India the challenge will be to generate 8% growth without a benign external environment
- How fast can India integrate domestically and iron out the kinks regarding movement of people, goods and capital across state boundaries
- How fast can India create external relationships that will allow growth to take place?
In geopolitics, it all the more clear that India will have to become a swing power. This means selective alignment with the US and China where interests coincide, without joining any one camp.
- Better relations with US and China than they have with each other
- Ability and willingness to inflict pain and give pleasure
Finally, a more mischievous point: if the West is ceding leadership of values of democracy, liberty and free markets, then India should stake its claim to that leadership.
- Do we really need so many illiberal democracies and authoritarian states in the permanent membership of the UNSC?
- Do we need four or five Putins in the UN Security Council

Trump is not Putin’s puppet

Stop worrying about Trump being in Putin’s pocket. Start thinking of how to deal with him.

Donald Trump’s attitude and statements both during the election campaign and after his victory have led many analysts to conclude that the new president of the United States will share an unprecedented cosy relationship with Vladimir Putin, the long-time president of Russia. The uncharitable view is that Mr Trump is in Mr Putin’s pocket. The charitable view is that Mr Trump’s affinity for Mr Putin will cause US foreign policy to be less antagonistic to Russia.

Here’s the thing though: for all his statements, posturing and actions, it is unlikely that Mr Trump is a sellout. Why so? First, his populist credentials will not survive a concession to Russia that hurts the United States’ interests or prestige. Second, the Republican party might have changed over the past few years, but cannot condone a pro-Russia policy where that is against the party’s institutional interests. Third, there are strong bureaucratic bases for foreign policy that cannot simply change because a new president is in power. Like every new head of government, Mr Trump will discover that once he occupies the office. Finally, for all appearances and commentary there is the possibility that Mr Trump is not Putin’s puppet at all.

Some of the more astute analysts I have discussed the issue with think that Mr Trump will be the dealmaking, transactional president. What this means is allies, partners, neutrals and adversaries will need to figure out what they are prepared to concede to the United States obtain what they wish to procure. A deal is a deal only when there is mutual agreement on the give and the take. Mr Trump’s prejudices, campaign rhetoric and political interests will both determine his administration’s priorities and constrain his dealmaking. With Russia as with Japan. With China as with India. On climate change as with nuclear weapons, trade and so on.

Seen from this perspective, Mr Trump might well have — intentionally or willy nilly — created favourable negotiating conditions with respect to Mr Putin. Consider. Will Mr Putin be willing to risk jeopardising a friendly relationship with Mr Trump should the United States push Russia to yield a little more on some issue? With Mr Trump in the White House, the Russian president will have to choose between a hard line on a specific issue and the long term advantage of having a friendly relationship with his US counterpart. He is unlikely to want to throw away his advantage quickly or cheaply.

And if Mr Trump is the dealmaker that he believes he is, he won’t pass up this chance to secure an advantage.

Trump is fantastic. Don’t worry.

Mr Trump’s telephone conversations with world leaders are indicative of his style, not substance.

Donald Trump’s phone calls with world leaders, screams a headline in the New York Times are “upsetting decades of diplomacy.” An already excited commentariat — around the world — is aghast at the fantastic manner in which the new US president-elect has been conducting the sublime act of statesmanship that is a telephone conversation. Just after some experts assessed that his fantastic phone call with the Pakistani prime minister might be unwelcome in India, their were jolted into assessing that Beijing would be upset (okay, make that apoplectic) after he announced that he spoke with the Taiwanese president. He even reportedly spoke to Rodrigo Duterte, the foul-mouthed president of the Philippines who had recently made a great show of insulting Barack Obama and kowtowing to Beijing. Oh yes, Mr Trump has violated the norms of the subtle, contrived and staid world of international diplomacy.

That is not a bad thing in itself. Nor is it much of a bad thing as far as US foreign policy towards Pakistan, China and the Philippines is concerned.

Mr Trump’s remarks to Nawaz Sharif appear more like the polite comments tourists make to their hosts regardless of the reality they observe. If he really meant what he said, then Pakistanis need to be worried right after they get over the surprise and puzzlement. Whoever believes that India should be concerned, less consider them unwelcome, is living in the 1990s. Analysts who believe that New Delhi is vying with Islamabad to court Washington’s favour must enlarge their frame of reference to the Indo-Pacific region, and set their watches to the present.

What about China? Hasn’t Mr Trump provoked the People’s Republic of China by exposing Beijing’s most dearly held—and most forcefully enforced—myth that the Republic of China on Taiwan does not exist as a normal state? Yes, and that’s not a bad thing at all. Perhaps due to the Western perception of its supposed exoticness, Beijing has usually had its way by pressing foreign governments to ‘respect its sensitivities’ over the Taiwan, the Dalai Lama, Xinjiang and the various territorial disputes it has with its neighbours. When the United States yields to this coercion, the rest of the world follows. If the United States were to be less inclined to ‘respect China’s sensitivities’, others are more likely to follow suit.

Beijing is quite likely to retaliate, but then, it has taken sharp foreign policy positions over the past decade without provocation. Let Beijing decide how long it wishes to play tit-for-tat with a much more powerful adversary. It remains to be seen if Mr Trump has the stomach for such a game.

It makes good sense for Mr Trump to reach out to Mr Duterte: at worst, it will confuse the Philippines establishment as it explores alignments with China and Russia. At best, it can cause Mr Duterte to execute a wild swing back towards Washington. To argue that Mr Trump must shun or punish Mr Duterte merely because the latter insulted President Obama would be to trade in foreign policy realism for soap opera sentimentalism. There is no evidence that the latter outperforms the former as a basis for pursuing a state’s interests.

For all his bluster, Mr Trump is out of his depth on matters of statecraft. He’s likely to learn on the job. Regardless of the value judgements we place on their content, it would be incorrect to take the fantastic man’s telephone conversations as indicators of his future administration’s real foreign policy positions.

China warns Singapore

As Singapore confronts difficult choices, it must sound out New Delhi.

It is an open secret that the Singapore Armed Forces (SAF) train in the Republic of China in Taiwan, and the two countries have enjoyed a quiet, but very productive partnership since the early 1970s. Like how actors in ’70s Hindi movies used to become totally unrecognisable merely by putting on a moustache and a beard, Singapore’s soldiers would become Taiwanese ones when they exercised in that country. The subterfuge was out of respect for diplomatic niceties, to placate the People’s Republic of China. For instance, Singapore service personnel would assume Taiwanese aliases. Sometimes this would lead to hilarious outcomes: like when my friend, an ethnic-Tamil Singaporean infantry platoon commander, had to pass off as Chong Wai-kiong.

Singapore’s defence cooperation with Taiwan (Project Starlight) predates the establishment of diplomatic relations with China. For its part, Beijing was content with this arrangement, even when it came close to war with Taiwan in the mid-1990s. Ian Storey writes that Li Peng, then China’s Premier, said that China ‘should not mind too much’ if Singapore continued its military relationship with Taiwan, but had asked that this be done discreetly.

So last week, when Hong Kong customs authorities — tipped off by their Chinese counterparts — seized nine infantry vehicles on a ship that was making its way from Taiwan to Singapore, it appears that Beijing has decided to deliver a warning. Or more.

It comes as a surprise, but is clearly yet another manifestation of an emboldened China taking aggressive positions in its extended neighbourhood. Even if Beijing were to end the impasse by releasing SAF’s equipment in return for renewed Singaporean commitment to the One China policy, it would further strengthen the perception among East Asian countries that it is best not to antagonise China. It would also put greater caution, and perhaps even a suspension of the four-decade old Singapore-Taiwan military cooperation. Chastising Singapore has multiple benefits for China.

It is too early to tell if Beijing’s actions are informed by an expectation that the upcoming Trump administration will disengage from Asia, leaving the field open to China. China’s actions over the past few years suggest that Beijing is confident of upping the ante even in the face of US “pivot” to Asia. It may be American conceit to believe that Trump is leaving East Asia to China. The rulers in Beijing perhaps believe they already have Asia.

This is a crucial period for India’s own Act East policy. New Delhi must reassure Singapore, Hanoi, Jakarta, Seoul, Tokyo and Canberra that India has the wherewithal and a commitment to shape an Asian balance that does not surrender to Chinese hegemony. If the United States wishes to be part of such an arrangement, then it is all for the better. If not, the six Indo Pacific powers must manage on their own. Let’s not forget that if the United States is no longer in the picture, India is the only nuclear power on the other side of China.

President Trump. What now for India?

Play the ball as it comes to the bat

Peter Thiel, a Silicon Valley billionaire who backed Donald Trump’s candidacy, perhaps best explained the latter’s political appeal. Journalists and analysts, he said, took Mr Trump literally but not seriously, and wanted to know details of how he would implement some of the outrageous ideas he proposed. Ordinary people, on the other hand, took him seriously but not literally, and were persuaded that he intented to take policies in directions that they agreed with; the exact details didn’t matter. In the uncertainties that prevail in Washington and elsewhere on what policies President Trump would pursue, Mr Thiel’s explanation is a very useful signpost.

It would only be conceit for anyone at this stage to predict Trump’s foreign policy positions. Candidate Trump and his core supporters were anti-immigration, anti-Muslim and anti-trade. Mr Trump threatened to pull out of NATO, repudiate free trade agreements, engage Russia’s Vladimir Putin, withdraw the security umbrella from over treaty allies, renegotiate the Iran nuclear deal, deal with ISIS, back Israel and grab the oil in Iraq. And yes, build that wall on the border with Mexico. At this point, it is best to take all these, as Mr Thiel suggests, seriously but not literally.

To the extent that President Trump attempts to throw international regimes, norms and institutions up in the air, New Delhi will encounter opportunities that it must be prepared to seize. This means the level of diplomatic imagination and boldness in the external affairs, commerce and defence ministries must be boosted. India is far better placed today than ever before to take advantage of possible shifts in global order.

Of course there are risks. A world that retreats from free trade will hurt India’s growth and development trajectory. A global recession will shave off significant percentage points from India’s economic growth rate. Throttling of free movement of people — in the US as in Europe — will necessitate painful business and human readjustments, although the result might be more business for India’s outsourcing/offshoring industry. Most of these risks can be managed by proceeding with structural economic reforms, or Reforms 2.0 (yes, I sound like a broken record, but the point is valid and important to make).

The path to success in the world of President Trump is nimbleness, deftness and speed. New Delhi’s diplomats and policymakers will need to see the opportunities early and act faster than others, without being constrained by historical baggage. No pre-determined strokes: see the ball early and play it accordingly.

Related Link: My colleague Pranay Kotasthane has an opinion piece on this in the New Indian Express today.

Manila on the Chinese bandwagon

The Philippines becomes the first Indo-Pacific country to declare itself for Beijing

On the geopolitics of the Indo-Pacific, I have long argued that “the small- and medium-sized countries of the region will prefer a balance where no single power dominates over them. If they do not see this forthcoming, they are likely to join the stronger side.”

Rodrigo Duterte, the president of the Philippines, appears to have decided that that stronger side is China.

“America has lost now. I’ve realigned myself in your ideological flow,” he said at a business forum in Beijing on Thursday. “And maybe I will also go to Russia to talk to Putin and tell him that there are three of us against the world: China, Philippines and Russia. It’s the only way.” [CNN]

There were indications of this for the last few months, but the manner in which he announced a “separation” from the United States, the Philippines’ treaty ally since 1951, could not have been more designed to ingratiate Beijing, his newfound benefactor. Mr Duterte calculates — correctly, in all likelihood — that China will now shower the Philippines with exemplary largesse. It is in Beijing’s interests to demonstrate that those who decide to join the Chinese side will be rewarded, as long as they are willing to ignore some trifling territorial disputes and international arbitration verdicts.

I have also argued that there is a Chinese wedge between ASEAN states that have a dispute with Beijing and those that don’t. That wedge has just gotten deeper and wider. The ASEAN agenda on maritime cooperation is now in question, as Philippines joins other pro-China ASEAN members in being uninterested in confronting China. Vietnam, in particular, will be under a lot more pressure.

The Philippines remains a pro-American country. It is also likely that parts of the country’s security establishment have deep links with the US armed forces. How Mr Duterte’s policy will go down with the people and the security establishment remains to be seen.

The Great American Election. Yawn.

Just enjoy the drama, if that’s your cup of tea.

Every four years the news-consuming people of India get caught up discussing politics—US politics. They seem to know a lot about the potential candidates, the nominees, the primaries and so on. Things seem to get a lot more exciting when the candidates square off on television. It’s a grand spectacle, much song, dance and drama, rivalling the Olympic Games and the Cricket World Cup.

It’s all very nice if you see this as good harmless entertainment. But if you are not a voter, and perhaps if you are not a certain Russian political leader, you don’t have a, er, dog in this fight. Enjoy the television if that’s your favourite poison, but hey, don’t even begin to ask “what will it mean for India?” Not even this time.

Now, I’ve had a lot of fun over the past year trolling my American friends with questions like “So, how will this change under President Trump?”, to sophisticated explanations of how the US party systems and electoral colleges work; and to decreasingly confident pronouncements of why that will never happen.

For the rest of the world, you play the ball as it comes to the bat. Perhaps Mr Trump will do this if he becomes president, but then again, maybe the policy roulette will point in a different direction. Perhaps Mrs Clinton will do that if she becomes president, but then again, global events might cause her to chart a different course. Or the other way around. We just don’t know. Analysts claiming to predict foreign policies under future presidents are demonstrating more conceit than analysis.

In foreign policy, it is mostly better to be prepared to manage consequences than try predicting the future. Let’s wait for whoever US citizens vote in as their president. And then let’s deal with him. Or even her.

Why India should not get into the fight against ISIS

The jihadi threat to India comes from Pakistan, not Syria.

Upon his return from the United States, defence minister has announced that India is prepared for an operation against ISIS under a UN resolution. He must have said this under pressure from Washington, for there it makes little sense for India to step into what is essentially a Middle Eastern problem.

The core of ISIS is not really interested in India, at least at this time. Its focus is on Syria, Lebanon, Iraq and their neighbouring countries. Its attacks on European cities in pursuit of its core goals.

Sure, ISIS has announced a wilayah or province in the subcontinent, but that is as real as an ISIS province on the moon. It might be aspirational, it might help them in its propaganda to project itself as bigger than it is, but Abu Bakr al-Baghdadi has far more to worry about for a long time before he can be interested in planting his flag somewhere in India. New Delhi will have enough time to prepare before ISIS decides to pay attention to conquering India. Till such time, it is in India’s interests to let the galaxy of powers currently involved in fighting the ISIS to do so, and to prevail.

What about Indians who are going to Syria to fight for the ISIS? Well, the best strategy is to hope that they don’t come back, and ensure that they are interrogated and charged if they do. This is the kind of work India’s intelligence agencies and law enforcement authorities do, and ought to step up.

Finally, what about Islamists in India who wave the ISIS flag during protests? Shouldn’t we take them to be supporters of ISIS? Well, no. The ISIS flag is as much an inspirational totem to them as portraits of Khomeini, Arafat and bin Laden that used to be seen in their times. The effect is not unlike that of auto rickshaw driver gangs that organise themselves around portraits of movie stars. It is very unlikely that the said movie stars have any opinion on auto rickshaw fares and policies. For the drivers, though, the portraits are a totem to organise around and differentiate themselves from their counterparts. In the case of ISIS, police and intelligence agencies ought to identify individuals and groups claiming inspiration from it, and keep them under surveillance.

The primary jihadi threat to India still comes from Pakistan: the Jamaat-ud-Dawa/Lashkar-e-Taiba and other groups controlled by the Pakistani military establishment remain the principal threat. Few Western countries want to engage in seriously countering this threat, as it is not vital to their national interest. India, on the other hand, has no choice but to fight. It is important to concentrate on this project and not open unnecessary fronts in the Middle East.

Related Link: My colleague Rohan Joshi asks if a clash between ISIS and Jamaat-ud-Dawa is imminent.