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2331. Japan’s Free and Open Indo-Pacific Strategy: What does it mean for the European Union?

Author:
Nanae Baldauff
Publication Date:
11-2018
Content Type:
Working Paper
Institution:
EGMONT - The Royal Institute for International Relations
Abstract:
Not so long ago Japan seemed to be left out on the diplomatic stage, notably when it decided not to join China’s newly established Asian Investment and Infrastructure Bank (AIIB) in 2015. But while no one can deny China’s impressive global outreach under the banner of the Belt and Road Initiative (BRI), Japan has not been sitting idly by. Quite the contrary, Japan is playing a leading role in shaping the concept of free and open Indo-Pacific region, and has positioned itself as an important political actor that upholds the rule of law under its Free and Open Indo-Pacific Strategy (FOIP). As China becomes more and more assertive economically and militarily, strengthening ties with Japan becomes all the more important for the European Union (EU). As a strategic partner of Japan, the EU more than ever needs to work with Japan in upholding the liberal international order.
Topic:
Regional Cooperation, Military Strategy, European Union, and Investment
Political Geography:
Japan, China, Europe, Asia, and Indo-Pacific

2332. The EU and China: Modest Signs of Convergence?

Author:
Gustaaf Geeraets
Publication Date:
12-2018
Content Type:
Working Paper
Institution:
EGMONT - The Royal Institute for International Relations
Abstract:
Against a background in which the United States is increasingly drawing into question its commitments to free trade and the global commons, the challenge for the EU and China is to deal with a global governance system that is evolving from a multilateral system centred around the US into a more diffuse system resting on the three strong trading poles: China, the EU and the US.
Topic:
International Trade and Finance, Governance, European Union, and Multilateralism
Political Geography:
United States, China, Europe, Asia, and North America

2333. War’s Future: The Risks and Rewards of Grey-Zone Conflict and Hybrid Warfare

Author:
David Carment
Publication Date:
10-2018
Content Type:
Working Paper
Institution:
Canadian Global Affairs Institute (CGAI)
Abstract:
Today’s geopolitical conflicts, especially among great powers, involve a desire to fundamentally revise the order of alliances as well as solidify new norms of conduct. The purpose of our paper is to delineate two distinct phenomena in international affairs – hybrid warfare, which emphasizes the tactical level and grey-zone conflicts, which incorporates a long-term strategic dimension into international disputes. We argue that hybrid warfare can be a tactical subset of grey-zone conflict deployed under certain conditions and in varying degrees. We examine four case studies: China’s application of ‘unrestricted warfare’, Russia’s strategy of ‘hybrid balancing’, ‘regional hybridism’ practiced by Israel and ‘restricted hybridism’ applied by Canada/NATO globally. We conclude that the solution to challenges from Russia and China is not a military one but a political and collective one based on baseline requirements for building resilience. Israel, on the other hand, is largely uninterested in the revision of order of alliances and will continue to utilize its tactical advantage vis-à-vis regional neighbors to achieve victories in short conflicts. We conclude that NATO (and Canada) should work more closely with the Organization for Security and Co-operation in Europe and the European Union to effectively extend security guarantees to its members. In doing so Canada and likeminded countries will involve the costs of engaging in hybrid warfare and the subsequent erosion of democratic accountability.
Topic:
NATO, War, Geopolitics, and Hybrid Warfare
Political Geography:
Russia, China, Eurasia, Middle East, Canada, Israel, and Asia

2334. The Security Dimension of a China Free Trade Agreement: Balancing Benefits and Risk

Author:
Gordon Houlden
Publication Date:
08-2018
Content Type:
Working Paper
Institution:
Canadian Global Affairs Institute (CGAI)
Abstract:
In 2017, Canada engaged in several rounds of exploratory discussions for a potential free trade agreement (FTA) with the People’s Republic of China. It seemed probable that this exploratory phase would be followed by the opening of formal rounds of negotiations, to be announced during Prime Minister Justin Trudeau’s visit to China in December 2017. An FTA appeared to be a priority for Trudeau since his government came into office in 2015 (Global Affairs Canada, 2017a; Lu, 2017; PMO, 2017); however, such negotiations were put on hold indefinitely, ostensibly due to irreconcilable differences on gender and labour issues. Despite this setback, it is likely that the Canadian government will continue to explore this option in the coming years, particularly with the North American Free Trade Agreement (NAFTA) in jeopardy. While there are many potential benefits of a Canada-China free trade agreement (CCFTA), there are also significant national security implications that will deserve particular attention. The security dimension will be the focus of this paper. Prospective CCFTA negotiations with China would be both complex and time consuming, in part due to the wide divergences between the Canadian and Chinese economies, as well as differences between Canadian and Chinese administrative and legal systems. Negotiations could therefore take several years to conclude, and might not be finished until well after the 2019 federal election. It took a full decade to sign and ratify the China-Australia Free Trade Agreement (ChAFTA), although it appears that the most difficult portion of the negotiations was wrapped up in the final two years. It is unlikely that a CCFTA will move as slowly as the Australian FTA did, in part because of the established Australian precedent and because of China’s increasing familiarity with FTA negotiations that involve advanced economies. For this reason, Canada would benefit from approaching a CCFTA after Australia, but before many other Western countries. Chinese and Canadian negotiators will be consumed with elaborating the principles of each side’s responsive FTA approaches, as well as the myriad of details involving thousands of products and services that a CCFTA’s provisions would affect. Canadian negotiators will seek a high-quality FTA that covers a large percentage of our export and import products with China, as well as an agreement that covers all key sectors and industries. There is also likely to be a Canadian focus on addressing China’s use of non-tariff barriers to trade which currently inhibit Canadian firms from taking full advantage of the massive China market. Such measures include the Chinese Ministry of Health’s 2013 changes to food safety standards which required all imported food products to list detailed nutritional components in Chinese. Procedural barriers such as this represent a significant hurdle for Canadian firms, and cause uncertainty among international exporters that want to break into the Chinese domestic market. In theory, the centralized Chinese economy lacks the regional complexity of the Canadian federal state, characterized by sub-national units, but in reality, China’s provinces and municipalities can, and often do, impose barriers to foreign imports, often to protect market share for local substantive industries. To date, China has FTAs with only a handful of developed countries. Australia, Korea, Switzerland, Iceland, Singapore and New Zealand currently have bilateral FTAs with China, and several others, such as Norway and Israel, are in FTA negotiations. China is also floating ideas for FTAs with developing countries, including India. China is far more trade-dependent than the United States, although by comparison China is not nearly as trade-dependent as Canada is.1 The balance of trade is currently in China’s favour: China exports US$46 billion to Canada, versus the US$16 billion that it imports from Canada (MIT, 2016a). However, it is important to note that China’s exports to Canada account for only 2.2 per cent of China’s total merchandise exports (MIT, 2016b).
Topic:
Security, Intellectual Property/Copyright, Free Trade, and Trade
Political Geography:
China, Canada, Asia, and United States of America

2335. The Dragon and Great Power Rivalry at the Top of the World: China’s Hawkish, Revisionist Voices Within Mainstream Discourse on Arctic Affairs

Author:
David Curtis Wright
Publication Date:
09-2018
Content Type:
Working Paper
Institution:
Canadian Global Affairs Institute (CGAI)
Abstract:
This paper discusses China’s Arctic policy white paper, covers China’s appreciation of the region’s strategic value, and samples scholarly articles across the wide spectrum of opinion and policy recommendation regarding China’s participation in Arctic affairs. It describes the articles, offers translated segments from them, and refers readers who want to read more about the articles and more extensive translated passages from them to the Appendix, where they are included in fuller form. This paper’s main contention and conclusion is that the military and strategic dimensions of China’s interests in the Arctic are part and parcel of mainstream Chinese discourse on the Arctic today. One important motivation behind China’s burgeoning interest and engagement in Arctic affairs is the eventual utilisation of the region as strategic space from which to threaten the security of North America. China’s activities in the Arctic bear close, careful, and continuous scrutiny. It is imperative that Canada not succumb to the siren song of complacency and inaction regarding China’s ambitions in the Arctic region.
Topic:
Foreign Policy, Power Politics, Military Affairs, and Geopolitics
Political Geography:
China, Europe, Asia, North America, and Arctic

2336. Finding "Win-Win": China's Arctic Policy and What It Means for Canada

Author:
Adam Lajeunesse
Publication Date:
12-2018
Content Type:
Working Paper
Institution:
Canadian Global Affairs Institute (CGAI)
Abstract:
China is a “Near Arctic State” with national interests in Arctic resources, shipping lanes, and regional governance. That was the message delivered to the world in China’s new Arctic policy (China 2018). The philosophy espoused in the Chinese White Paper is one of cooperation and mutual profit – what the Chinese have dubbed “win-win” polar partnerships. These partnerships have been expanding in recent years. Tens of billions of dollars in Chinese capital has flowed into oil and gas projects in Siberia and the Russian Arctic offshore, new shipping routes are being tested, and state-owned mining companies have acquired rich mineral deposits in Greenland and – to a lesser extent – Canada. These resources, and the sea lanes that connect them, have been labelled the “Polar Silk Road,” a maritime trade and shipping route supported by Chinese infrastructure spending (theoretically) running through the Northwest Passage and other circumpolar channels. China’s increasingly confident posture in the North represents real opportunities – and challenges – for Canada. Managed properly, Chinese money can support the decades old Canadian dream of developing the Northwest Passage as a useable sea route, decreasing shipping costs, supporting development and improving the quality of life for Arctic residents. Managed incorrectly, Chinese activity might leave the Asian power with a degree of de facto control over the Arctic, damaging Canadian sovereignty and imperiling the country’s ability to manage this increasingly important region on Canadian terms. This new White Paper is as clear a signal as can be sent that China is coming into the Arctic with long-term strategic ambitions. Canada should not fear this development, but it must be prepared for it.
Topic:
Natural Resources, Geopolitics, and Strategic Competition
Political Geography:
China, Canada, Asia, and Arctic

2337. Energy, Trade and Geopolitics In Asia: The Implications for Canada

Author:
Jeff Kucharski
Publication Date:
07-2018
Content Type:
Working Paper
Institution:
Canadian Global Affairs Institute (CGAI)
Abstract:
Canada’s growing interest in trade with countries in the Indo-Pacific region corresponds with an ominous growth in geopolitical instability and insecurity in that part of the globe. With Indo-Pacific hunger for oil expected to soar – especially in China, where demand will translate to 80 per cent of imports in 10 years – Canada needs to develop policies to deal with the region’s turbulent realities. The Indo-Pacific comprises countries in South Asia and Southeast Asia, and includes such unstable and unpredictable players as North Korea and Pakistan, both of which have nuclear weapons and long-simmering border tensions. India is an emerging economic and military rival to China. In the next 20 years, China and India are expected to lead the global demand for gas as coal consumption continues to decline, and Canada has a stake in this prosperous future. Along with territorial squabbles in the region, Canada will have to deal with complex issues such as terrorism, human trafficking, transnational crime, piracy and cyber-crime, as well as the struggle for global dominance between China and the U.S. One key area for potential conflict is China’s recent construction and militarization of artificial islands in the South China Sea. The Canadian government’s new military strategy, Strong, Secure, Engaged does little more than make a plea for peace and the rule of law in the South China Sea. However, more trade crosses the Pacific Ocean from Canada than crosses the Atlantic. And with Canada signing on to the Comprehensive and Progressive Trans-Pacific Partnership (CPTPP), the region’s troubles will need to be resolved by more than good intentions on paper. Canada must shift more diplomatic, security and military resources to the Indo- Pacific; otherwise, its efforts will be spread too thinly to be effective in the region. Trade, especially through a major route like the Strait of Malacca, could easily be disrupted by any one of a number of disputes, such as a conflict between China and Taiwan or if historic resentments boil over among competing territorial claimants in the region. Thus, Canada needs to step up and reaffirm its security commitments to the Association of Southeast Asian Nations (ASEAN) as a partner in the region. Participating in maritime exercises and Freedom of Navigation (FON) operations would also help to reinforce to countries in the region the importance of abiding by international law. Meanwhile, Canada should set aside for now any intentions to negotiate a free trade agreement with China. China does not share some of Canada’s key trade and security goals and its aggressive behaviour in the South and East China Seas clearly signal that now is not the time to talk about a trade pact. China must demonstrate that it is willing to take a more cooperative approach to resolving trade and security issues in the Indo-Pacific and to support and respect the rule of law in the region. Canada has the potential to become a reliable, stable source of energy for Indo-Pacific countries. There is also an opportunity for provinces such as Alberta to strike their own strategic deals to provide energy resources to countries in that region, in return for trade and investment benefits. However, while investing at home in the necessary infrastructure and export capability to expand its role, Canada must also strive to bring its own unique approach to enhancing regional and energy security in the Indo-Pacific.
Topic:
Security, Energy Policy, Geopolitics, and Trade
Political Geography:
China, Canada, Asia, and North America

2338. Canada’s Progressive Trade Agenda and a Free Trade Agreement with China: Are They Incompatible?

Author:
Hugh Stephens
Publication Date:
10-2018
Content Type:
Working Paper
Institution:
Canadian Global Affairs Institute (CGAI)
Abstract:
The “non-market” clause in the just-concluded update of NAFTA, now known as the U.S.-Mexico-Canada Agreement (USMCA) would appear to limit Canada’s options in terms of negotiating a free trade agreement with China at the present time (given the de facto U.S. veto over a Canada-China agreement that it provides), yet Prime Minister Trudeau has already reaffirmed Canada’s intention to pursue closer economic ties with China despite this apparent limitation. If negotiations proceed, negotiating a free trade agreement (FTA) with China will be very different from negotiating one with a country that shares Canada’s Western values. However, a trade agreement with China makes good economic sense, and while there are some unique obstacles to reaching such an agreement owing to differing views of progressive trade, these are not insurmountable. In fact, Canada can use the same models in negotiating with China that it has used with Western countries. Such an approach combines trade goals with respecting Chinese cultural and political differences, particularly those that fall into the category of progressivism. This category includes labour rights, Indigenous and gender issues, and governance. Prime Minister Justin Trudeau’s government has been focused on progressive elements in trade deals, while China has made it clear it is not interested in including them in any such pact. Concluding an agreement would mean that China and Canada must both recognize the political requirements and dynamics on the opposite side of the negotiating table, while seeking common ground diplomatically. Side agreements such as those that exist in the original NAFTA and in the Comprehensive Economic and Trade Agreement (CETA) are one way to work with the two countries’ differences. Many of the provisions in a side agreement are not binding and thus not subject to the agreement’s dispute settlement mechanism or trade sanctions. Instead, they are more aspirational and sometimes lay out a process for civil society groups to raise issues and help the thinking on those issues evolve, rather than simply holding the parties accountable for breaches. Canada is rightly concerned about Chinese stances on human rights, labour, environmental and gender issues. However, instead of including these issues in the main document on trade, they can be dealt with as shared interests between the two countries. Establishing separate but parallel mechanisms to deal with these issues would be a practical way to make progress. Focusing on micro, small and medium-sized businesses as one Chapter of the Trans-Pacific Partnership (TPP) did, could be another successful approach. Women own many of these businesses in developing countries, so such a focus would make a substantial contribution to their welfare. None of this means Canada should kowtow to China or look the other way on important values and issues. Side agreements and special focuses have formed parts of agreements with other countries that already share Canada’s Western values. This type of give-and-take is present even when Canada negotiates with countries that are not polar opposites. No country’s interests are exactly the same as those of any other and it’s unrealistic to expect unanimity on every issue. Language and firm commitments on progressive issues are still evolving in many of Canada’s free trade agreements, including the USMCA. It would be unreasonable to hope that everything can be achieved in an agreement with China on the first go-around. Rather, viewing a trade agreement with China as a work-in-progress means controversial elements can be brought into the negotiations and language used that reflects the understanding that these issues are evolving. It will require creative thinking, flexibility and joint commitment to find a solution, but—assuming that the USMCA does not rule out Canada-China negotiations toward a trade agreement— it should be possible to find sufficient common ground without having to resort to obfuscation and “creative ambiguity”.
Topic:
Treaties and Agreements, Bilateral Relations, Sanctions, NAFTA, Free Trade, and Trade
Political Geography:
China, Canada, Asia, and North America

2339. China-Israel Relations: Growing Cooperation Amidst Conflicting Interests

Author:
Omer Dostri
Publication Date:
10-2018
Content Type:
Working Paper
Institution:
Jerusalem Institute for Strategy and Security (JISS)
Abstract:
In the past decade, relations between Israel and China have become closer, following a decision in Jerusalem to diversify and expand Israel’s ties with emerging powers and countries that do not belong to the European Union and are less identified with the American coalition. The visit to Israel by China’s vice president is evidence of the warming of relations between the two countries.
Topic:
Diplomacy, International Cooperation, Hegemony, and Emerging Powers
Political Geography:
China, Europe, Middle East, Israel, Asia, North America, and United States of America

2340. Not Quite that Close: Israel’s Policy towards China

Author:
Eran Lerman
Publication Date:
11-2018
Content Type:
Working Paper
Institution:
Jerusalem Institute for Strategy and Security (JISS)
Abstract:
Israel’s strategy toward China doesn’t conflict with American interests; rather, it serves and reinforces them. Partnering with Beijing can help stabilize the Middle East. Partnering with Asian nations threatened by Beijing can help build a counterbalance to Chinese power.
Topic:
International Cooperation, Hegemony, Economic Cooperation, and Regional Power
Political Geography:
China, Middle East, Israel, Asia, North America, and United States of America