Trade Strategy is a Proper Part of National Security

Journal of Political Risk, Vol. 7, No. 6, June 2018 

A ship, the Emerald Princess, is photographed crossing the new Cocoli Locks of the Panama Canal expansion in Panama City.

Emerald Princess crosses the new Cocoli Locks of the Panama Canal expansion in Panama City. A giant Chinese-chartered freighter nudged its way into the expanded Panama Canal on Sunday to mark the completion of nearly a decade of work forecast to boost global trade. Source: Craig Stanfill via Flickr.

William R. Hawkins

International Economics and National Security Consultant

On June 4, the Koch brothers (Charles and David) announced the launch of a “multi-year, multimillion-dollar” campaign against the tariffs and trade restrictions imposed by the Trump administration; especially those levied on China. The billionaire brothers are regularly called “conservatives” because they make large campaign donations to Republican candidates. But they are not conservatives; they are libertarians, a very different breed of cat. And their donations to the GOP are meant to sway the party in their ideological direction, not merely support it. The liberal media tries to tarnish conservatism by placing libertarians on “the Right” even though this is not their intellectual origin. This is done to further the left-wing narrative that “conservatives” are self-interested, greedy individuals who are enemies of organized society and the common good. This is true for libertarians, who doubt the very legitimacy of the nation-state or the “higher” norms of society. Too often they define right and wrong on the basis of whether it turns a profit.

Continue reading

A Peculiar Chess Game in North Korea《奇怪的棋局》

Journal of Political Risk, Vol. 6, No. 5, May 2018

Chinese human rights activist Wei Jingsheng (left) and American politician US President Bill Clinton are photographed talking together in the White House. They are both seated at a table in an office.

Chinese human rights activist Wei Jingsheng (left) and American politician US President Bill Clinton talk together in the White House, Washington DC, December 8, 1997. Source: White House Press.

Wei Jingsheng (魏京生)

Wei Jingsheng (魏京生) was the most famous Chinese dissident in 1979, when Deng Xiaoping put him on a nationally televised trial for writing the essay, “The Fifth Modernization: Democracy.” He received 15 years in prison. After meeting with President Clinton’s Assistant Secretary for Human Rights in 1993, he was put back in jail for another 14 years. He served 4 years of his second jail term before being exiled to the United States in 1997. A number of points are new in his latest article, published in English for the first time here. In particular, the discussion of China’s President Xi obstructing the Trump/Kim summit has very serious implications for the future of U.S.-China relations, and the credibility of President Xi as an interlocutor in Korean peace negotiations. Wei Jingsheng’s piece was originally published on Radio Free Asia’s blog and dated May 17, 2018. The article, including its Beijing slang, has been translated into English below.

Continue reading

China Grew Up, and Now? Utilitarianism, Democracy and A Moderating Role for the Holy See

Journal of Political Risk, Vol. 6, No. 2, February 2018

Francesco Sisci

China Renmin University

In the past few months, stretching out no longer than a couple of years, an important controversy has mounted in America and the West, in which some argue that we foreigners were fools to believe we could change China. China in the past 40 years, since the U.S. started cooperating with her, taking her under wing, just fooled us and did what it always wanted – remained communist (thus anti-capitalistic) and with a value system different than ours (and thus against our value system). The Holy See, who has proven capable of striking deals in China and also holds a high moral ground in the West, may be able to find a middle way.

Red Guards, high school and university students, waving copies of Chairman Mao Zedong's "Little Red Book," parade in June 1966 in Beijing's streets at the beginning of the Great Proletarian Cultural Revolution.

Red Guards, high school and university students, waving copies of Chairman Mao Zedong’s “Little Red Book,” parade in June 1966 in Beijing’s streets at the beginning of the Great Proletarian Cultural Revolution. Since the May 1966 launch of the Cultural Revolution at Beijing University, the Red Guards were instrumental in Mao’s recapture of power after the failure of the Great Leap Forward. The movement was directed against “party leaders in authority taking the capitalist road.” The Red Guards went on rampage in Chinese towns, terrorizing people, particularly older ones. Source: Jean Vincent via Flickr.

Continue reading

Boeing-Embraer Deal: Consequences for the Global Aircraft Industry

Journal of Political Risk, Vol. 6, No. 2, February 2018

Three military aircrafts are photographed in the air from above. One is in the foreground with the remaining two flanking the it in the background. The ocean is visible in the backdrop.

The KC-390. Source: Brazilian Government.

Evodio Kaltenecker
Researcher

Boeing, the world’s largest aerospace company, initiated negotiations in December 2017 with Embraer, the world´s third-largest aircraft maker.  The Chicago-based US aerospace giant is pursuing a business agreement with the Brazilian jet maker in a global competition with Boeing´s European rival, Airbus.  The US and Brazilian companies have discussed the idea of a joint venture in which Boeing could take a stake of up to 90 percent in the Brazilian aircraft maker’s commercial business. That business unit will likely exclude sensitive military business to reduce Brazil´s concerns about sovereign defense capability. [1]

Continue reading

China’s $60 Trillion Estimate Of Oil and Gas In The South China Sea: Strategic Implications

U.S. hydrocarbon estimates imply a maximum of $8 trillion worth of oil and gas in the region, explaining part of the strategic divergence of the two superpowers.

Journal of Political Risk, Vol. 6, No. 1, January 2018

A yellow oil rig is photographed in the middle of the ocean.

Oil rig. China’s largest offshore oil and gas producer CNOOC Ltd. announced on July 3, 2015 that its Xingwang deep-sea semi-submersible drilling platform started drilling at 1,300 meters underwater in Liwan 3-2 gas field in the South China Sea. Source: Pxhere.

Anders Corr, Ph.D.
Publisher of the Journal of Political Risk

China’s estimates of proved, probable and undiscovered oil and gas reserves in the South China Sea imply as much as 10 times the value of hydrocarbons compared with U.S. estimates, a differential that has likely contributed to destabilizing U.S. and Chinese interactions in the region. While China estimates a total of approximately 293 to 344 billion barrels of oil (BBL) and 30 to 72 trillion cubic meters (TCM) of natural gas, the U.S. only estimates 16 to 33 BBL and 7 to 14 TCM. Considering that the inflation-adjusted value of oil vacillated between approximately $50 and $100 per barrel (in 2017 prices) since the mid-1970s, U.S. estimates imply a hydrocarbon value in the South China Sea between $3 and $8 trillion, while Chinese estimates imply a value between $25 and $60 trillion. In addition to other factors, China’s greater dependence on oil imports and higher estimates of hydrocarbons in the South China Sea have driven it to invest more military resources in the region. An overly economistic approach by the Obama administration probably led the U.S. to allow China’s expansion in the South China Sea too easily.

Continue reading