Critical Comments On ‘US Policy Toward China: Recommendations For A New Administration’

Journal of Political Risk, Vol. 5, No. 2, February 2017

President Xi Jinping flanked by Chinese soldiers. The President is walking down stairs on a red carpet.

President Xi Jinping flanked by Chinese soldiers. Source: Kremlin via Wikimedia Commons.

James E. Fanell
U.S. Navy (ret)

Below are the critical comments I provided to Dr. Orville Schell, the co-chair of the recent Asia Society and University of California, San Diego report US POLICY TOWARD CHINA: RECOMMENDATIONS FOR A NEW ADMINISTRATION. While there are sections of the work that I agree with, I still fundamentally disagree with the overall foundation of the document’s recommendations which I believe are designed to sustain the past 40 year of a policy that promotes unconstrained “engagement” with the PRC.  As such, I’ve gone through the entire document and extracted several statements and paragraphs that I disagree with and a few that I agree with.  While I will provide comments for each specific reference issue, I can summarize my dissent of the report in the following major themes:

1.  Unconstrained Engagement.  Engagement with China is asserted to be the primary goal of US relations with China without providing evidence for that assertion.  Or worse, suggesting things are actually going well, contrary to all objective evidence.

2.  “The Relationship” is the #1 Priorty.  “The relationship” is prioritized as being equal to or more important than U.S national security.  There is no clear articulation that U.S. National security should be the #1 national security priority for the US and that our relationship with China should be judged through that lens, not through the lens of sustaining “the relationship” at all costs.

3.  Do Not Provoke.  America should not “provoke” China, but again, there is no evidence to support why this position will benefit U.S. national security interests.

4.  Dissent Not Welcome.  While I appreciate inclusion of Ambassador Lord’s dissenting opinion on North Korea, clearly the study did not value, or include, dissenting opinions, especially in the Asia-Pacific Regional Security and Maritime Dispute sections.

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Trump’s Unfair Ban:  An Iranian View 

Journal of Political Risk, Vol. 5, No. 2, February 2017

An urban landscape is photographed from above. Trees are visible in between buildings.

Tehran. Source: Jabiz Raisdana via Flickr.

Nabi Sonboli
Instituted for Political and International Studies

On January 27, 2017, President Donald Trump signed the Executive Order titled “Protecting the Nation from Foreign Terrorists”. The order reflects three critical concerns regarding immigrants and those who come to the US in the new administration: Security, ideology, and contribution. These concerns are valid for any country, but the questions remain, which one of these concerns are legitimate with regards to Iran and Iranians? and what is the main target in this order? 

Nationalism, Pastoral Nomadism, and Political Risk to Natural Resource Investments in Mongolia: Case Studies of the Aluminum Corporation of China Limited (Chalco) and Rio Tinto

Journal of Political Risk, Vol. 2, No. 6, June 2014.

From right to left, Shaft #1, #2, and #5 at Oyu Tolgoi, a copper mine in extreme southern Mongolia photographed from afar.

From right to left, Shaft #1, #2, and #5 at Oyu Tolgoi, a copper mine in extreme southern Mongolia, 2013. Oyu Tolgoi, also known as Turquoise Hill is a combined open pit and underground mega mine project in Khanbogd in the south Gobi Desert. The site was discovered in 2001 and is being developed as a joint venture between Ivanhoe Mines, Rio Tinto and the Government of Mongolia. The mine is scheduled to begin production in July 2012. The Oyu Tolgoi mining project is the largest financial undertaking in Mongolia’s history and is expected upon completion to account for more than 30% of the country’s gross domestic product. Copper production is expected to reach 450,000 tonnes annually and Gold production is estimated to reach 650,000 ounces per year. Source: Wikimedia Commons.

Jamian Ronca Spadavecchia [1]
Founder and President of Oxbow Advisory

Mongolia stands at a critical juncture between the rewards of natural resource development and the challenges of modernization. On the one hand, it offers abundant opportunities in the natural resources sector and is located near growing and resource-starved industrial nations of East Asia. At the same time, the presence of autocratic neighbors impose international instability on this democratic and market-oriented economy.

This article considers two underanalyzed political risks that are necessary for understanding the future of the Mongolian economy: nationalism and pastoral nomadism. In doing so, it proffers an improved analytical framework for resource investors to better assess and mitigate their Mongolia risk.

Finally, the analysis uses selected case studies to demonstrate how nationalism and pastoral nomadism might impact natural resource investment. For nationalism, a study of the proposed acquisition of SouthGobi Resources (SouthGobi) by the Aluminum Corporation of China Limited (Chalco) is offered. The Chalco study is emblematic of the link between nationalism and two dominant trends in Mongolia: resource nationalism and increasing geopolitical risk in the natural resources sector. The section also looks at how pastoral nomadism poses a risk to Oyu Tolgoi, Mongolia’s premier copper and gold mining project, by examining a dispute between Rio Tinto and indigenous communities of Gobi herders that threatened Oyu Tolgoi’s project financing. Continue reading