Category Archives: Economic Security

Greenpeace Working to Close Rare Earth Processing Facility in Malaysia: the World’s Only Major REE Processing Facility in Competition with China

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Journal of Political Risk, Vol. 7, No. 10, October 2019

The image is a screenshot of the Greenpeace website. The main image shows protestors holding yellow and black signs.

Partial screenshot from the Greenpeace website, taken on 10/3/2019, detailing Greenpeace’s leading role in the ‘Stop Lynas’ campaign. Source: Greenpeace.

Michael K. Cohen
Journalist

Rare earth – the colorful metals derived from 17 extraordinarily hard-to-mine chemical elements – are a little-known part of all of our lives. They are crucial elements of mobile phones, flat screen televisions and more than 200 other consumer electronic devices that we use every day.

But these exotic elements are needed for more than just phones and televisions. Their lightweight properties, and unique magnetic attributes, are indispensable to military assets that use sonar, radar or guidance systems, lasers, electronic displays, and myriad other mechanisms.

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What The Philippines Must Do To Defend Itself From China

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Journal of Political Risk, Vol. 7, No. 9, September 2019

A U.S. marine watches as Philippine Marines raise their flag over the naval station against the backdrop of the ocean.

A U.S. marine watches as Philippine Marines raise their flag over the naval station, 1992. Source: NARA & DVIDS Public Domain Archive.

Sannie Evan Malala
West Visayas State University

The Philippines is strategically located in Southeast Asia, at the fault-line between Communist China and the democratic nations of the Americas and Europe. In the north is East Asia, full of wealthy market democracies in increasing conflict with China. To the southwest are countries seeking to defend their exclusive economic zones from China, including Indonesia, Vietnam, Malaysia, and Brunei. As China’s power grows, the fault-line is widening and trying to straddle the middle will only result in our falling into the chasm. The Philippines must choose a side – subservience to China or joining a coalition of the willing in defense of each country’s independence and democracy from the Chinese hegemon. The Philippines has yet to take advantage of its full potential and has become economically poor and militarily weak, primarily due to corruption, internal armed struggle, and its growing relationship with China. For the Philippines to avoid being a satellite of China, this is what we must do. Continue reading →

Democratizing China Should Be The U.S. Priority

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Journal of Political Risk, Vol. 7, No. 7, July 2019

A very large crowd is depicted from above, flanked by trees. Skyscrapers are visible in the background.

Hong Kong protest, June 2019. Source: Flickr.

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

U.S. goals in relation to China, our biggest national security threat, tend to array along three main axes: military, diplomatic, and economic. But in deference to the failed strategy of engagement, we don’t use the significant normative and ideological power of democratization as a multiplier on these battlefields, nor does the prospect of democratizing China factor sufficiently in our cost-benefit analyses.

Militarily, we prioritize defense from China, but other than ongoing military support to Taiwan and the Tibet campaign of 1957-72,[1] we have not used our substantial military resources to promote democracy in China, for example in the rebellious zones of Xinjiang or Hong Kong. Economically, we prioritize U.S. market share in China, IP protection, and beating China’s GDP, technology and industrial strength. But we don’t condition our China trade on our lowest priorities, human rights and democracy.

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Geopolitics and the Western Pacific: An Interview with Leszek Buszynski

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The photograph depicts the front cover a book titled "Geopolitics and the Western Pacific: China, Japan and the US" by Leszek Buszynski. An abstract, water-colour image is in the background.

The book cover of Geopolitics and the Western Pacific: China, Japan and the US, by Dr. Leszek Buszynski. Routledge, 2019.

Journal of Political Risk, Vol. 7, No. 6, June 2019

This interview with Dr. Leszek Buszynski, author of Geopolitics and the Western Pacific: China, Japan and the U.S. (Routledge, 2019), took place by email with Dr. Anders Corr between May 31 and June 12.

Anders: What are some of your recommendations in the book?

Leszek: The recommendations are in the final chapter and have been written from the perspective of Australia as a a middle power and ally of the US.  Basically, the U.S. relies excessively on military power to counter China but this is creating the fear of a US-China clash in the region from which China benefits, particularly within ASEAN.  Scuttling the Trans-Pacific Partnership (TPP) was a mistake because it is a way of bringing together the states of the region into cooperation with the U.S., Japan and Australia in a way which would offset Chinese influence.

Anders: Don’t you think that China is also creating fear with its military buildup? Wouldn’t countries like Japan and South Korea be even more fearful if they did not have the U.S. military there to protect them?

Leszek: This is not the issue, the answer is of course. But without a broader US presence in the region, one that is not just military based, regional countries such as those in ASEAN would feel the pressure to gravitate to China.  China has a way of undermining the U.S. presence and its alliance system by playing on regional fears of conflict and instability, the Philippines under Rodrigo Duterte is a case in point. America has to counteract that. Continue reading →

Trade Wars, Sanctions and Business Appeasement

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Journal of Political Risk, Vol. 7, No. 6, June 2019 

Chinese President Xi Jinping is photographed in the center, addresses a U.S.-China business roundtable, comprised of U.S. and Chinese CEOs on September 23, 2015, in Seattle, Washington.

Chinese President Xi Jinping, center, addresses a U.S.-China business roundtable, comprised of U.S. and Chinese CEOs on September 23, 2015, in Seattle, Washington. The Paulson Institute, in partnership with the China Council for the Promotion of International Trade, co-hosted the event. Source: Governor Jay & First Lady Trudi Inslee via Flickr.

William R. Hawkins
International Economics and National Security Consultant

In his book Appeasing Bankers, Jonathan Kirshner, the Stephen and Barbara Friedman Professor of International Political Economy at Cornell, argues that “Bankers dread war. More precisely, financial communities within states favor cautious national security strategies and are acutely averse to war and to policies that risk war.” He finds this to be a “universal” trait (at least within capitalist societies) evident throughout modern history. This should be kept in mind when watching the large swings in the stock market in response to reports about the progress, or lack of, in U.S.-China trade talks, Iranian threats and turmoil at the Mexican border. While Kirshner focuses on “stability” with an emphasis on inflation and debt accumulation, he notes the “breathtaking financial globalization” that took place in the post-Cold War period. This has made markets even more sensitive to the dynamics of a contentious international system. Fortunately, the stock market rapidly recovers from panics generated by headlines thanks to the fundamental strength of the U.S. economy.

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