Category Archives: Military

Boeing-Embraer Deal: Consequences for the Global Aircraft Industry

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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]

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

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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.

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China Swaggers, But Time Not On Its Side

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

A group of People's Liberation Army (PLA) soldiers are photographed jogging in full inform on a plaza. Trees are visible in the background.

Group of People’s Liberation Army (PLA) soldiers in China. Gene Zhang via Flickr.

Arthur Waldron

University of Pennsylvania

I have some thoughts about the “year of doom” 2018 that appeared on the web yesterday. They are as follows:

(1) China has undertaken her dangerous policies for internal reasons. That is how China is. She has no pressing or other need for Scarborough Shoal in the Philippines EEZ, for example.

(2) We know (1) is true because Xi Jin Ping goes on an on about loyalty, reshuffles the army, creates the most boring flag raising ceremony in history, and was reported to get in a fight with a general about whether the army should be made national instead of party. Who after all is going to take a bullet for Xi? We need to get to the root of this domestic phenomenon, but how is an almost impossible question.

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Scare of War with China in the Philippines:  Its Source and Implications to the Allied Nations

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Journal of Political Risk, Vol. 5, No. 5, May 2017

A large, green rice field is photographed. Figures are visible in the field in the background.

Rice farm in Palawan. Source: Cedric Buffler via Flickr.

Sannie Evan Malala
Small Farmer in the Philippines

Philippine President Rodrigo Duterte revealed on Friday, May 19, that Chinese President Xi Jinping had threatened war if the Philippines forced its claims in the South China Sea.  Duterte and Xi had a restricted meeting last May 15 during the Belt and Road Forum in Beijing.  There Duterte expressed his plan to drill oil in the South China Sea, as he claimed.  And he said the response was “we’re friends, we don’t want to quarrel with you, we want to maintain the presence of warm relationship, but if you force the issue, we’ll go to war.”  (I think I’m familiar with this pulling of words.) This is clear lawlessness.