Category Archives: Opinion

How to Block China at the WTO: Use GATT Articles XX-XXI

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Journal of Political Risk, Vol. 7, No. 9, September 2018 

A large naval ship is photographed in the middle of the ocean. A fighter aircraft is seen approaching to land on the ship from behind.

A PLAN Shenyang J-15 carrier-based fighter aircraft is preparing to land on Chinese aircraft carrier PLANS Liaoning (CV-16). Source: Wikimedia Commons.

William R. Hawkins

International Economics and National Security Consultant

The Ministry of Commerce of the People’s Republic of China (PRC) has announced it will file a complaint with the World Trade Organization (WTO) against the U.S. imposition of 25% tariffs on $16 billion worth of Chinese goods in August. This was the second tranche of tariffs imposed by President Donald Trump as the result of the U.S. Trade Representative’s (USTR) “findings of its exhaustive Section 301 investigation that found China’s acts, policies and practices related to technology transfer, intellectual property and innovation are unreasonable and discriminatory and burden U.S. commerce.” This second tranche brought the total of Chinese imports subject to higher duties to $50 billion, as announced in June. Beijing’s response was given by the state-owned People’s Daily: “By launching the complaint under the WTO dispute settlement mechanism, China is to safeguard free trade and multilateral mechanisms as well as its legitimate rights and interests.”

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China’s Military Visits Endanger Philippine Sovereignty and Democratic Alliances

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Journal of Political Risk, Vol. 7, No. 7, July 2018 

Japan Maritime Self-Defense Force guided missile destroyer JS Chokai (DDG-176) is photographed launching a missile upwards. The naval ship is in the middle of the ocean.

Japan Maritime Self-Defense Force guided missile destroyer JS Chokai (DDG-176) launches a missile as part of Rim of the Pacific, 2016. China’s newest development, still under construction, is its own missile destroyer, the probable Type 052D (DDGHM). However, the Chinese media recently released ground photos of the destroyer with reports suggesting that vessels of this class are ready to be handed over to the People’s Liberation Army Navy (PLAN). Source: U.S. Pacific Fleet via Flickr.

Anders Corr, Ph.D.

Publisher of the Journal of Political Risk

On the night of July 16, four days after the second anniversary of the July 12 Permanent Court of Arbitration win by the Philippines against China in the Hague, a Chinese missile tracking ship with 远望 Yuan Wang 3 (YW-3) emblazoned on the side, eased up to Sasa Wharf in Davao, Philippines. Davao is the home turf of President Rodrigo Duterte, now in Malacañang Palace, and the ship was likely visiting at his personal invitation. The Chinese characters for Yuan Wang (远望) mean “gazing into the distance”, and are sometimes translated as “long view”.

Last month, two People’s Liberation Army Air Force (PLAAF) Ilyushin-76 (IL-76) military cargo planes visited Davao. They were called a “personal favor” by President Duterte to China, and surprised the Philippine military. The visits were not covered by treaty.

Only the U.S. and Australia have visiting forces agreements that allow, and legally constrain, U.S. and Australian military presence. China has no such public constraints, and for that reason as well as others detailed below, poses a risk to Philippine sovereignty. Last year, Davao also hosted a People’s Liberation Army Navy (PLAN) guided missile destroyer, guided missile frigate, and replenishment ship.

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China’s Targeting of Overseas Chinese for Intelligence, Influence and Drug Trafficking

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Journal of Political Risk, Vol. 7, No. 7, July 2018 

Davao City Vice Mayor Paolo Duterte (L), son of Philippine President Rodrigo Duterte, and the president's son-in-law, Manases Carpio (R), are photographed taking an oath as they attend a senate hearing. Both are raising their right hands.

Davao City Vice Mayor Paolo Duterte (L), son of Philippine President Rodrigo Duterte, and the president’s son-in-law, Manases Carpio (R), take an oath as they attend a senate hearing in Manila on September 7, 2017.
Paolo Duterte and the president’s son-in-law, Manases Carpio, appeared before the inquiry to deny as “baseless” and “hearsay” allegations linking them to large-scale illegal drugs smuggling. Source: Flickr.

Anders Corr, Ph.D.

Publisher of the Journal of Political Risk

On June 12, Philippine protesters staged coordinated protests against China in Los Angeles, San Francisco, and Vancouver. Protest organizer Ago Pedalizo said, “Duterte’s government pursues the ‘sell, sell, sell’ approach to sovereignty as a trade-off to all kickbacks he’ll get from the ‘build, build, build’ economic push of China.” His protest group, Filipino American Human Rights Advocates (FAHRA), charged that “Duterte is beholden to the $15-billion loan with monstrous interest rate and China’s investments in Boracay and Marawi, at the expense of Philippine sovereignty. This is not to mention that China remains to be the premier supplier of illegal drugs to the country through traders that include the son, Paolo Duterte, with his P6 billion shabu [methamphetamine] shipment to Davao.” 

Paolo Duterte has denied the allegations. Philippine and Chinese government offices did not reply to requests for comment.

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Alleged Corruption in Mongolia’s Resource Extraction Sector

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Journal of Political Risk, Vol. 7, No. 7, July 2018 

Dump trucks are photographed operating in an open pit at the Oyu Tolgoi copper-gold mine.

Dump trucks operate in an open pit at the Oyu Tolgoi copper-gold mine, jointly owned by Rio Tinto Group’s Turquoise Hill Resources Ltd. unit and state-owned Erdenes Oyu Tolgoi LLC, in Khanbogd, the South Gobi desert, Mongolia. Mongolia exported 817,000 tons of copper concentrate in the first half of the year compared with 663,800 tons a year earlier, an increase of 23.1 percent. Source: Flickr.

Indra Tsatsral

Oxford Brooks University

The year is 2008 and Ulaanbaatar, the capital city of Mongolia, still resembles a gritty Soviet satellite state with its deteriorating apartment blocks and a statue of Lenin standing bold. Fast-forward a mere four years later and the apartment blocks have deteriorated further while a dazzling 25-story hotel overlooks the shadow of the recently removed statue. Today, with a plethora of Western companies ranging from luxury brands such as Rolex to the familiar Pizza Hut sprouting all over the city, you will be forgiven for mistaking Ulaanbaatar as one of the Four Asian Tigers. Unlike the Four Asian Tigers, which flourished predominately through industrialisation, however, Mongolia’s rapid ‘development’ is mainly attributed to the country’s colossal mineral wealth.

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Tackling the South China Sea Together: British and French Navies Chart a Course

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

Pictured are Royal Navy Marines taking part in a simulated beach landing using Landing Platform Dock ships. Two ships appear in the foreground, with a larger one in the background.

Pictured are Royal Navy Marines taking part in a simulated beach landing using Landing Platform Dock ships.
The Assault Ship HMS Bulwark is visable in the distance. The Marines were part of the NATO Exercise, Trident Juncture. The role of the Landing Platform Dock ships, HMS Bulwark and HMS Albion, is to deliver the punch of the Royal Marines ashore by air and by sea, with boats from the landing dock in the belly of the ship and by assault helicopter from the two-spot flight deck. LPDs can carry 256 troops, with their vehicles and combat supplies, and this can be swollen up to 405 troops. Source: Defence Imagery via Flickr.

Peter M. Solomon

Government and Regulatory Affairs Consultant

At a September 2015, joint press conference at the White House, China’s President Xi Jinping stood beside U.S. President Barack Obama and said, “China does not intend to pursue militarization” with respect to “construction activities that China are undertaking” on the Spratly Islands in the South China Sea.[1] Since then, China has established several offensive capabilities in the region, including surface-to-air and anti-ship missile systems on three features in the Spratly Islands and the ability to deploy strategic bombers from the Paracel Islands.[2]  In comparison to the United States, which has been a consistent critic of China’s reclamation and militarization and has embarked on numerous freedom of maritime navigation exercises in the region, the European Union (EU) has historically been reserved in its comments regarding China’s activities in the South China Sea. Instead, the EU has limited itself to general comments about the importance of maintaining freedom of the seas and resolving disputes peacefully. While these statements are not without importance, the lack of a more critical, unified EU approach to China’s destabilizing activities has left missing a crucial voice. The tides could soon turn.

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