Trending Now
We have updated our Privacy Policy and Terms of Use for Eurasia Group and its affiliates, including GZERO Media, to clarify the types of data we collect, how we collect it, how we use data and with whom we share data. By using our website you consent to our Terms and Conditions and Privacy Policy, including the transfer of your personal data to the United States from your country of residence, and our use of cookies described in our Cookie Policy.
{{ subpage.title }}
A club for hemming China in
On Monday — the day that Prime Minister Justin Trudeau told reporters that Canada is interested in joining the AUKUS defense alliance — documents were released at a public inquiry that showed that Canada’s intelligence agency believes China “clandestinely and deceptively interfered in both the 2019 and 2021 general elections.”
Also on Monday, as Chinese ships carried out exercises in disputed waters in the South China Sea, the US, UK, and Australia announced that they were talking to Japan about inviting that country to participate in Pillar II of the security pact.
China’s growing military and political belligerence is rattling other countries, and they are responding by drawing together in a way that would have been out of the question a decade ago.
Neighbors under pressure
Pillar I of AUKUS, which was announced in 2021, is a collaboration between Australia, the Americans, and the Brits aimed at adding a powerful new capacity to Australia’s military: nuclear-powered (though conventionally armed) submarines. This is a huge spend for Australia — $368 billion over 30 years — that carries an inherent political risk. And to make the deal, Canberra had to blow up relations with France by abandoning a deal to buy French subs. The Aussies only did that after a year of tense political and economic confrontations with China that left decision-makers in that country gravely concerned about its future in a neighborhood dominated by Beijing. Australia’s back was against the wall.
Like Australia, Japan is being driven to closer cooperation with the United States by its concerns about an increasingly powerful and assertive China. Japan’s trade-focused economy depends on international shipping passing freely through the South China Sea, for instance, where China has been clashing with the Philippines.
So Tokyo has reason to be interested in Pillar II of the AUKUS arrangement, which focuses on defense technology sharing, including quantum computing, hypersonic missiles, artificial intelligence, and electronic warfare — all areas where China presents a technological challenge, and where Japan could offer expertise.
With China rapidly expanding its military, Japan has decided to break with its post-war pacifist tradition and dramatically increase defense spending.
Northern lightweights
Canada is also opening its checkbook, but at a much smaller scale, which would explain why the AUKUS partners are making a point of talking about doing business with Japan, rather than Canada.
Nobody is talking about adding other countries as full members, Australian Prime Minister Anthony Albanese said Tuesday, but proceeding on a project-by-project basis.
Historically, Canada spends little on defense, falling well short of the 2% of GDP that NATO members have all agreed to spend. In an increasingly dangerous world, though, pressure is mounting for Canada to step up, and on Monday, Trudueau’s government did roll out a five-year plan to bring defense spending up to 1.76% of GDP by 2030, up from 1.38% last year.
Allies welcomed the announcement, but there was nothing significant enough to make Canada a much more desirable partner for AUKUS, says Eugene Lang, a former Liberal defense official turned Queens University professor. Officials are interested.
“I just don’t know that we're doing anything to get their attention,” he says. “What they're doing in AUKUS is investing in developing brand-new technologies. To my knowledge, Canada has not got any specific money set aside for any of that.”
University of Ottawa Professor Thomas Juneau, who has interviewed allied officials about Canada’s potential role in AUKUS, found that Canada is increasingly seen as a free rider in defense and intelligence circles. It’s not surprising that Japan was invited before Canada, he says.
“It's really normal for AUKUS to bring in Japan before Canada because Japan is not only a much bigger country than we are, but it's right next to China.”
Wolf warriors
On the other hand, because of its Five Eyes intelligence-sharing experience, Canada could more easily cooperate with AUKUS than Japan, says Graeme Thompson, a senior analyst with Eurasia Group.
And while it may not be spending enough money to be taken seriously, the Trudeau government has moved to be more circumspect in its relationship with China, limiting Chinese investment in critical minerals and being cautious about research projects.
“The scales have fallen from a lot of politicians’ eyes in the West,” Thompson says. “The question remains, how do you have constructive diplomatic and economic relations with Beijing, while at the same time competing with them geopolitically and seeking to build up and maintain deterrence?”
China will object to the new alliances being organized around it, but don’t expect Beijing to stop buying sabers and rattling them.
“China has a rising economy, so the idea that its rising economic power wouldn't come with rising geopolitical ambition is a fantasy, and we've kind of believed in that fantasy for a while, not just in Canada but in other Western countries,” says Juneau.
“But it was a fantasy all along.”
FILE PHOTO: U.S. President Joe Biden meets with Chinese President Xi Jinping on the sidelines of the G20 leaders' summit in Bali, Indonesia, November 14, 2022.
Biden and Xi meet again
Chinese President Xi Jinping and US President Joe Biden will meet face to face tomorrow in San Francisco in the hopes of salvaging their countries’ crumbling relationship.
The two had the same goal when they met on the sidelines of the G20 last November. But after China floated a spy balloon into US airspace, the rest of the year consisted of retaliatory trade restrictions on technology and critical minerals, Chinese raids on US companies, and increasingly frequent “risky intercepts” between military forces.
In short, we did not see a U-turn in tensions after last year’s meeting. So, will this year be any different? Rick Waters, managing director of Eurasia Group’s China practice, says that “Biden and Xi both seek to stabilize the relationship for their own reasons.”
Biden — who is already managing two conflicts and can’t risk another — hopes to restore high-level military and political communications. Meanwhile, China’s main concern is its economic slowdown and stopping the mass exodus of US companies since its raids earlier this year.
Waters expects progress on a fentanyl deal that would be key for Biden’s reelection campaign. The deal is still being finalized but likely entails Beijing cracking down on companies sending fentanyl’s precursor chemicals to Mexican cartels in exchange for the US lifting restrictions on China’s forensic police, which it has accused of human rights violations. The two are also expected to agree to see eye to eye on limiting AI in certain military contexts.
Taiwan could be next year's “spy balloon.” Both players maintain their contrasting positions on Taiwanese independence, so any progress in the decaying US-China relationship will be put to the test when Taiwan holds an election in January of 2024.Japanese Prime Minister Fumio Kishida, U.S. President Joe Biden and South Korean President Yoon Suk Yeol.
Biden brings South Korea and Japan together
Nestled in the woods of Maryland outside Washington, DC, the Camp David estate -- the president's country retreat -- looms large in international diplomacy as a place where serious business gets done.
On Friday, President Joe Biden will host South Korea’s President Yoon Suk Yeol and Japan’s Prime Minister Fumio Kishida for a summit at the famous campsite where, in 1978, Jimmy Carter helped broker peace between Egypt and Israel.
While it might not seem like a big deal for Washington to facilitate a summit with America’s two closest Asian partners, it is monumental that South Korea, in particular, appears ready and willing to enlist in a new US-led trilateral alliance with Japan.
Despite a rapprochement, relations between the two East Asian giants have remained strained since Japan ended its 35-year occupation of the Korean peninsula in 1945.
So, what’s on the agenda at Camp David and why is South Korea, long aggrieved by its former colonial power, willing to create this bloc?
The three states will reportedly announce publicly that they will respond collectively to security threats in the Asia Pacific – a big deal considering that Seoul and Tokyo do not have an official security alliance. Trilateral military drills will likely be annualized, while they’ll also announce closer coordination on ballistic-missile defense and cybersecurity.
Clearly, the summit aims to send a powerful message to China and North Korea that these three advanced economies are prepared to combine their military and tech bonafides to protect their collective interests.
Why is this happening now?
Changing of the guard in Seoul. Only two years ago, such a meeting would have seemed nearly unthinkable. Yoon’s predecessor, President Moon Jae-in, broadly seen as left of center, went to painstaking lengths to engage with Pyongyang.
He also oversaw a period of worsening ties with Tokyo over compensation for Japan’s use of Korean forced labor during the occupation. Relations reached a nadir in 2019 when Tokyo placed restrictions on exports bound for South Korea needed to make crucial tech.
But this approach to regional politics took a sharp turn when Yoon, a conservative, came to power in March 2022, vowing to get tougher on China and the North, and to bolster ties with the US. And that’s exactly what he’s done.
But how much of this shift reflects Yoon’s hawkish brand of politics -- or is this a symptom of a broader anti-China shift in Korean society?
“Trilateral cooperation, and the bilateral rapprochement with Japan that have enabled it, would have been unthinkable under former president Moon or Lee Jae-myung, the leader of the center-left opposition whom Yoon narrowly defeated in 2022,” says Jeremy Chan, a China and Northeast Asia consultant at Eurasia Group.
“The big right-left divide in Korean politics is about policy towards North Korea, and the conservatives take a far more hawkish line toward Pyongyang and their backers in Beijing,” he says.
The China angle. China’s increasingly bellicose behavior in the South China Sea has indeed helped the US bring Japan and South Korea together under a joint security umbrella. After all, nothing unites a former colonial power and former colonial subject like mutual fears of a regional superpower.
Crucially, increasingly negative attitudes towards Beijing at home have also given Yoon an opening to deepen security ties with Japan and the US.
Indeed, South Koreans have soured on China since 2016, when Beijing enforced punitive economic measures on Seoul after the US deployed THAAD anti-missile systems on the Korean Peninsula. The US’ aim was to offer a bulwark against Pyongyang’s missile activities, but China said the move constituted a threat to its national security.
Still, it’s a balancing act, as Japan and South Korea’s economies are tightly interwoven with China’s, and neither wants to risk alienating Beijing too much.
What Washington wants. Getting Tokyo and Seoul to act in lockstep has been a key foreign policy priority for the Biden administration as it looks to contain China’s growth. Together, the two Asian states host 80,000 US troops, and South Korea also hosts the largest US overseas military base in the world.
Politically, the bringing together of Japan and Korea can certainly be cast as a win for President Joe Biden, who has aptly capitalized on growing fear in the region to unite two important US allies with a contentious past.
China’s fear: Asian NATO. “China is watching for how far trilateral cooperation moves forward after the summit, particularly in terms of defense and security,” Chan says, adding that, “Beijing’s greatest fear is the emergence of a trilateral military alliance akin to an Asian NATO on its border.”
What’s more, Beijing will be looking to see whether there are any new agreements on tech that might give an indication, Chan says, of just “how far each country is willing to go in moving away from China economically.”
- The Camp David summit - GZERO Media ›
- Ian Explains: How is America's "Pivot to Asia" playing out? - GZERO Media ›
- Podcast: Unpacking the complicated US-Japan relationship with Ambassador Rahm Emanuel - GZERO Media ›
- Would US-Japan ties be hurt by a Trump re-election? - GZERO Media ›
- Ian Explains: Xi Jinping's nationalist agenda is rebuilding walls around China - GZERO Media ›
The brunt of pandemic on MSMEs: Daily Star contributor
In the article, the writer says micro, small and medium enterprises are an engine of growth in the Asia Pacific region and should be supported through lower taxes and wage subsidies.