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Sunday, 18 November 2018

Bigger thriller in Manila: Asean point man to deal with China

Point man: Asean has designated Manila its ‘leader’ in dealings with China, but can the moody Duterte, here shown bonding with Xi on a visit to Beijing in 2016, clinch a an agreement from China for the regional association? — AP

https://youtu.be/iMB26dijZAE https://youtu.be/tedFwDyW2Uo

NOW that the quartet of Asean-related summits is over for the year, so should the niggling criticisms. At least they should – more important matters are at hand.

Over the week Singapore hosted the 2nd RCEP (Regional Comprehensive Economic Partnership) Summit, the 13th East Asia Summit, the 21st Asean Plus Three Summit, and – not least – the 33rd Asean Summit.

These summits were held because it was time they were, and Singapore hosted them because it was its turn. But criticisms were not far behind.

US President Donald Trump was a no-show, and so was Chinese President Xi Jinping. Vice-President Mike Pence and Prime Minister Li Keqiang attended instead.

Trump was criticised for his absence, which allegedly “left the region wide open” for Xi’s China to make further inroads here. That complaint was limited only by Xi’s own absence.

Philippine President Rodrigo Duterte was also criticised for not attending an “informal breakfast summit” between Asean and Australian leaders.

His said it was only an informal event, and it was over breakfast which he did not eat.

A casual observer may be forgiven for sensing that there must be more important developments than these scheduled rounds of handshakes and photo opportunities. There are.

One of these begins in two days: Xi’s state visit to the Philippines, following the scheduled 30th Apec Summit in Papua New Guinea.

Duterte had made three visits to China as President, inviting Xi to visit Manila each time. This will be Xi’s first state visit, coming upon the third invitation to him.

There will be handshakes and photo opportunities too, but the substance and symbolism now may be more than the recent multiple summits in Singapore and Papua New Guinea.

The Philippines has been vocal about rival claims to territory in the South China Sea. The previous The region is generally unsettled by China’s recent occupation and construction of islands, with Vietnam remaining most disturbed. Duterte’s critics have also blamed him for being soft on Beijing.

However, Xi’s visit is expected to be smooth with an emphasis on the positives. These include mutual interests deemed to be larger than interminable disputes over distant rocks and islets.

Last year Chinese Vice-Premier Wang Yang visited Manila for four days amid more audible protests over territory such as Benham Rise. Yet the visit proceeded unhindered.

This time it is President Xi himself, for a state visit of only two days, with no particular complaint against China outstanding. It will also be after one full year of China having become the Philippines’ main trading partner.

For both sides the focus will be quite intense on specific projects backed by Chinese assistance. Duterte left the merrymaking in Papua New Guinea early to return home to prepare for Xi’s arrival.

For China, it would demonstrate to the region how it can cooperate with even a country locked in dispute with it to mutual benefit. This gains added significance when it is the Philippines, historically a US ally.

For the Philippines, there is a host of projects and programmes on Duterte’s wish list requiring Chinese aid. They span his ambitious 9-trillion peso (RM717bil) “Build, Build, Build” infrastructure plan covering all three regions of the Philippines: Luzon, Visayas and Mindanao.

These come under the Six-Year Development Program (SYDP) signed last year with China as a framework for the Philippines’ “Golden Age of Infrastructure.” It is to be Duterte’s legacy for his country.

The 75 projects include a water pump and irrigation scheme, a dam, a north-south railway, a highway, bridges, a park and a rehabilitated power plant. Economic growth is projected to outpace debt.

Duterte is clear-minded enough to know that only China is able and willing to provide the assistance needed. No other country or combination of countries is in a position to do so.

There are also plans for more Chinese business investments, as well as a framework agreement for joint oil and gas explorations at sea. The latter are understood to cover some disputed areas, with China agreeing to only a 40% share of recoverable deposits.

Countries in dispute over territory and the reserves found therein tend to shy from joint exploration, as legally this may imply recognition of the other disputing party’s claim.

But since this condition applies equally to both parties, the Philippines may be confident that China would also be obliged to acknowledge the Philippine claim. Can there be a lesson here for other Asean countries with claims to the South China Sea?

To ensure the success of Xi’s visit, there had been a positive build-up of Philippines-China relations in recent months. Xi’s state visit in turn is envisaged to lead to even better bilateral relations.

Last August, joint simulated naval exercises were held in Singapore among Asean countries and China without US participation. Manila defended that decision by saying that the “tabletop” drill was meant only for neighbouring countries in the region.

Now as Xi prepares for his visit, the US Pacific Fleet is reportedly readying a series of naval operations as a “show of force” in the South China Sea and the Taiwan Straits. In response to China’s stated concern, the Philippines said it will have no part in those operations.Xi’s visit is important not just for the Philippines but also Asean, which had designated Manila the “point man” in dealings with China. Can Duterte clinch an agreement from China for Asean?

Manila had said that a legally binding Code of Conduct (CoC) in the South China Sea was on the agenda, but Singapore Prime Minister Lee Hsien Loong said it may take another three years.

If China really wants to prove its goodwill in Manila, Xi could suggest it may happen considerably sooner.

The last Chinese President to make a state visit to the Philippines was Hu Jintao in 2005. That occasion also marked the 30th anniversary of bilateral relations, which is as auspicious a time as any.

This Tuesday’s visit by Xi will be the first Chinese state visit in 13 years. That is an auspicious number in Chinese, but not so in Western culture.

Will it be auspicious for the Philippines, the only Christian-majority country in the region once colonised by Spain and then the US? Duterte’s original style of leadership may yet make the difference.
Bunn Nagara



Bunn Nagara is a Senior Fellow at the Institute of Strategic and International Studies (ISIS) Malaysia.


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Saturday, 17 November 2018

Asia-Pacific Economic Cooperation (APEC) CEO Summit 2018: Good reason for China's rising popularity in South Pacific

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Pence's APEC speech offers nothing new

 

Good reason for China's rising popularity in South Pacific


Chinese President Xi Jinping met with leaders of eight Pacific island countries and officials in the Papua New Guinea (PNG) capital on Friday and all agreed to elevate their relations to a comprehensive strategic partnership based on mutual respect and common development.

On Friday, Xi also attended the hand-over ceremony of the China-assisted Independence Boulevard, as well as an opening ceremony for the Butuka Academy, a public service project funded by China. This is seen as evidence of the enhanced cooperation between China and Pacific island nations.

The US and Australia have mixed feelings about the cooperation between China and Pacific island countries. Their anxieties stem from their long-standing view of geopolitics. Australia has announced a plan to increase investment to Pacific island nations, while the US is also setting up a fund to boost aid in the region to counter China's perceived influence.

Interestingly, China has entered the Pacific island region with nothing but technology, funds and its friendly willingness to cooperate. Although the region has been regarded as being under Australia's influence, it was half-abandoned by Canberra. Western countries have become used to poverty in the islands. Now China has come to improve infrastructure, which has not only stimulated regional economies, but also caused the region to reclaim the attention of Western countries, such as Australia and the US.

Pacific Island countries certainly have every reason to welcome China because China's cooperation has revitalized the region. China's aid is pragmatic, and not subject to any political conditions. It benefits those countries, without causing harm.

Some have made the analogy that just like some member states of the Association of Southeast Asian Nations (ASEAN) want to see a balance between the US and China in the region, Pacific nations also expect China to weigh in to counter the influence of Australia. However, what makes this case different is that China brings engineering equipment to the Pacific, while in contrast, the US sends warships to the South China Sea. Pacific island countries hope to see more Chinese equipment, but ASEAN is calling on the US to stop its sabre rattling. On Friday, Malaysia's Prime Minister Mahathir Mohamad told the US that it does not wish to see warships in ASEAN waters, but that small patrol boats are fine.

Geopolitics still exist in today's international arena, but it must not be the dominant issue. It is understandable that Australia and the US have doubts about China's cooperation with Pacific Island countries. However, everyone should refrain from the "geopolitical reverie," and fully respect the growing influence of international economics.

China's Belt and Road Initiative (BRI) has gradually formed a tie among some Pacific Island nations, and it is based on economy to economy. If we were to summarize its political significance, it has built up friendships and increased mutual trust among countries. It also highlights new relations between nations in the region.

More than ever before, there has been unprecedented competition in the South Pacific, and more and more funding has been channeled into the region. Pacific Island countries have never enjoyed so many options and for those countries, such competition is a good thing.

On the international stage, competitions introduced by the BRI are always positive. From the Pacific Ocean to the Indian Ocean, such benign competitions are indeed a phenomenon that has not seen before. Although some countries have made inappropriate comments regarding the BRI, they are using funds and technology to participate in the competitive process.

China has been implementing the principle of achieving shared growth through discussion and collaboration under the BRI. The "zero sum" struggle has recurred throughout Western history, which shows that China's firm pursuit of mutual benefit and win-win requires time.

China is confident and patient about reaching more consensus, but what is important is that Western society must also emancipate their minds of the 21st century international relations and break free from the shackles of the "zero sum" struggle and various historical memories.

There are six countries in the Pacific that have so-called "diplomatic" relations with Taiwan. Economic cooperation between Beijing and Pacific island nations that have established diplomatic relations with Beijing may change the mindset of Taiwan's allies in the region. Taiwan shall find nobody to blame for the change of the political landscape. As a proverb says, it is common that "man struggles upwards, and water flows downwards."

Australia and New Zealand are China's largest partners in the South Pacific region. There is no reason for China and the two countries to get into a duel in the region. Instead, the South Pacific should become a platform where new types of international relations are forged and tested.- Global Times

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Friday, 16 November 2018

Environmental impact of cryptocurrency

Ten years ago, an anonymous cryptographer laid out the principles of an online currency that would operate beyond the reach of governments and central banks. — dpa

BITCOIN was supposed to solve the problems of analogue currencies. Instead, it created a new one: an enormous amount of global energy consumption that rivals the power usage of an entire country like Ireland.

According to findings of a new study, the implementation of this cryptocurrency could lead to enough emissions being produced so that global temperatures rise 2°C by 2033.

The study, which was published in the journal Nature Climate Change, found that the hardware and electricity needs of Bitcoin alone could significantly impact climate change for the worse.

“Currently, the emissions from transportation, housing and food are considered the main contributors to ongoing climate change. This research illustrates that Bitcoin should be added to this list,” said Katie Taladay, one of the paper’s co-authors from the University of Hawaii at Manoa.

The technical design of how transactions are processed causes Bitcoin and many of the growing numbers of rival cryptocurrencies to consume an enormous amount of energy in so-called Bitcoin mining centres around the world.

And yet the digital currency Bitcoin is still enjoying hype as one of the greatest financial phenomenons of our time.

The foundation for Bitcoin was laid out 10 years ago when an anonymous cryptographer using the name “Satoshi Nakamoto” published a paper laying out the principles for autonomous digital money.

The ideas it contained were revolutionary: No control by central banks, no national borders.

Instead, a mechanism called blockchain would provide trust and security in the system. In broad strokes, blockchain is a publicly viewable ledger of transactions, each saved one after the other.

But as the cryptocurrency’s wild fluctuations and electricity needs have attracted a lot of media attention, the ramifications of the latter have only recently been brought to light.

In a different article published in May by financial economist and blockchain specialist Alex de Vries, the electricity consumption of Bitcoin was estimated to be around the same as the electricity use of the Republic of Ireland.

De Vries also predicted that Bitcoin could be using as much as half of a percent of the world’s total electricity consumption by the end of this year.

“To me, half a percent is already quite shocking. It’s an extreme difference compared to the regular financial system, and this increasing electricity demand is definitely not going to help us reach our climate goals,” de Vries said.

“With the ever-growing devastation created by hazardous climate conditions, humanity is coming to terms with the fact that climate change is as real and personal as it can be,” said Camilo Mora, associate professor of geography in the College of Social Sciences at UH Manoa, Hawaii.

“Clearly, any further development of cryptocurrencies should critically aim to reduce electricity demand,” Mora, the lead author of the new study warns.

So as Bitcoin celebrates 10 years since its creation and it gains more and more supporters each year, we should probably take a moment and give this energy-sucking technology a re-think. – dpa By AMY WALKER

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