Asia Needs Pence’s Reassurance


November 16, 2018

Asia Needs Pence’s Reassurance

By Patrick M. Cronin

He should confront Trump’s mistakes and put forward a positive agenda.

U.S. Vice President Mike Pence at the ASEAN summit in Singapore on Nov. 15. (Roslan Rahman/AFP/Getty Images)

In Asia, anxieties about the United States’ role in an increasingly China-centered world are palpable. While some fear that the United States is retreating from its international obligations, other worry that it is bent on instigating conflict.

.As U.S. Vice President Mike Pence visits Southeast Asia and the South Pacific this week to attend the Association of Southeast Asian Nations (ASEAN) and Asia-Pacific Economic Cooperation leaders’ meetings, he should make clear that the United States remains a stalwart partner for the region with a vision for peaceful cooperation and development.

No U.S. retreat

The United States is not withdrawing into fortress America. It remains actively engaged in global affairs and is focused on strengthening the economic and military foundations of its power. The country’s central aim is to stay competitive in a world driven by a dynamic Indo-Asia-Pacific region. That goal, of course, derives from a real concern that China is challenging the postwar order and an understanding that the United States needs to find new ways to renew its diplomatic, economic, and military competitiveness.

The United States is not withdrawing into fortress America. It remains actively engaged in global affairs and is focused on strengthening the economic and military foundations of its power. The country’s central aim is to stay competitive in a world driven by a dynamic Indo-Asia-Pacific region. That goal, of course, derives from a real concern that China is challenging the postwar order and an understanding that the United States needs to find new ways to renew its diplomatic, economic, and military competitiveness.

But as U.S. President Donald Trump said last November in Da Nang, Vietnam, the United States has been “an active partner in this region since we first won independence ourselves,” and “we will be friends, partners, and allies for a long time to come.” U.S. Secretary of State Mike Pompeo has likewise been a forceful advocate for diplomacy in the region. Meanwhile, Congress is on the cusp of passing a bipartisan bill designed to bolster U.S. engagement there. The Asia Reassurance Initiative Act would authorize $1.5 billion in new funding over the next five years for regional diplomacy, development, and defense programs. In short, rumors of America’s disengagement miss the mark.

No Cold War with China

Pence also needs to reassure the region that when it comes to China, the United States is not seeking a war—trade, cold, or hot.

Pence also needs to reassure the region that when it comes to China, the United States is not seeking a war—trade, cold, or hot.

Instead, the U.S. administration wants a fair, open, and cooperative relationship. That doesn’t mean ignoring China’s attempts to compete with the United States, including through grey-zone operations like muscling the Philippines out of Scarborough Shoal and militarizing artificial islands despite pledging not to do so. And America will not shy away from meeting challenges directly. But on a fundamental level, the Trump administration would like to channel competition toward cooperation where possible.

In fact, the Trump administration rejects the idea of Thucydides’s Trap: that conflict between a rising power and a status quo power is inevitable. Leaders have agency, and it is up to them to determine the future course of relations. And for its part, the United States seeks to remain a force for good, not to contain or curb the China’s peaceful rise.

Of course, it would be useful for Pence to clarify that Washington will not tolerate coercion or the use of force against allies and partners in the region. But the vice president should also reiterate what he said last month at the Hudson Institute: “America is reaching out our hand to China. We hope that Beijing will soon reach back with deeds, not words.” That sentiment is broadly shared, even among Democrats, who do not agree with some of the administration’s tactics. (As Joaquin Castro, a Democratic representative from Texas, said last month, China should “compete, not cheat.”)

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US Vice President Mike Pence has confronted Myanmar’s de facto leader Aung San Suu Kyi at the ASEAN summit about what is being done to hold those responsible for the persecution of the Rohingya ethnic minority in her country to to account.

This will be a difficult balance to strike. And here, China’s approach to the South China Sea is instructive. It alone pursues claims there based in part on historical rights rather than contemporary international law. It showers the region with promises of infrastructure investment, but it fails to deliver transparent, equitably financed, high-quality development. It promises to follow an ASEAN Code of Conduct for the region but seeks a veto on the right of ASEAN members to extract natural resources from the South China Sea or hold military exercises there with Australia, Japan, the United States, and other non-ASEAN states.

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But the fear that a major confrontation, or even war, will play out in Southeast Asia is greatly exaggerated. China seeks to advance its goals by means short of war, and the United States aims to cooperate where it can but compete where it must. The resumption of the Diplomatic and Security Dialogue—a U.S.-China working group involving top defense and diplomacy officials—is thus a good sign.

 

Yes to an affirmative agenda for Asia

Beyond dispelling myths about U.S. retrenchment and bellicosity, Pence should also put forward a positive agenda for Asia. Here, he will have to confront some of Trump administration’s mistakes.

Many in the region question the United States’ predictability, because Trump has reversed major U.S. initiatives, from the Trans-Pacific Partnership to the Paris Agreement on climate change. Meanwhile, he has escalated tariff wars without articulating a coherent strategy for achieving results, and his uneven application of penalties has rankled allies and competitors alike. Nor has the administration deployed soft power well, often ignoring U.S. values like democracy and human rights, turning the country’s back on refugees, using unbefitting language, papering over conflicts of interest rather than cracking down hard on corruption, and being far too comfortable with authoritarians.

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Despite these missteps, Pence can use the trip to Asia to burnish four cornerstones that should be the foundation of the administration’s free and open Indo-Asia-Pacific strategy, especially in Southeast Asia and the Pacific Islands. Those four elements are a rules-based order, sustainable economic development, inclusive diplomacy, and effective security cooperation.

First, upholding and peacefully adapting the set of rules chosen freely by strong and independent sovereign states will be the foundation for U.S. engagement with the region. The United States has enduring interests in the South China Sea: stability, freedom of navigation, and resolving disputes peacefully and without coercion.

Although ensuring the rule of law will require far more than freedom of navigation operations, the United States will continue to help maintain the openness of the seas by sailing, flying, and operating anywhere international law permits. Importantly, seafaring nations from Asia and Europe are also demonstrating their commitment to the same cause by conducting similar operations.

Second, for growth to be sustainable, it has to be fair and reciprocal. It should be pursued in a manner that is transparent, non coercive, and environmentally sustainable, especially when it comes to the global maritime commons. There is nothing wrong with China’s Belt and Road Initiative that sunshine and high standards of accountability cannot fix.

Meanwhile, the United States should go even further to mobilize public and private support for trade, investment, and development. Eventually, the country can create a whole constellation of allies and partners that can invest in energy infrastructure, digital connectivity, transportation, and more. For instance, the United States is in active discussions to leverage the BUILD Act to expand joint efforts with allies and partners in the Philippines, Thailand, Cambodia, Indonesia, Malaysia, Vietnam, and elsewhere. In doing so, it can set a gold standard for development in the region.

Take Indonesia for example. China aside, a prosperous, democratic, and stable Indonesia is in the vital interest of the United States. Yet few in Washington are aware of the opportunities that await in Southeast Asia’s most populous country. The U.S. government’s Millennium Challenge Corporation has just completed a successful economic investment in Indonesia. Pence should ensure Washington starts negotiating a follow-on compact while simultaneously using BUILD Act funds to facilitate new U.S. private sector entry into Indonesia.

A third tenet of U.S. policy in Southeast Asia is inclusive diplomacy, including trust-building with competitors and partners alike.

ASEAN deserves broad support for its unique convening authority. Certainly, that is a major reason why the United States embraces the body having a loud unified voice in Indo-Pacific engagement. It also is in favor a strong, binding Code of Conduct—not one that unfairly limits the freedom of action of Southeast Asian states.

Inclusive confidence-building measures, such as plans to extend the voluntary Code for Unplanned Encounters at Sea to include coast guard vessels and efforts to protect rapidly depleted fishery stocks, deserve action. The United States should signal its support for promoting a new framework of “Resilience, Response, Recovery,” which is one of several useful concepts being put forward by ASEAN under Singapore’s chairmanship. At the same time, ASEAN members are pragmatic. The United States will often have to cooperate with them on a bilateral or trilateral basis to find effective responses to real challenges.

In terms of diplomacy with China, it might be worth creating a new crisis avoidance mechanism—perhaps mirroring the 1972 Incidents at Sea agreement. The bilateral pact did not prevent all U.S.-Soviet mishaps, but it helped avert major disasters, something that is even more important in a region where intermediate-range cruise missiles, hypersonic weapons, and the military use of cyberspace and outer space are unrestricted.

Finally, the United States will continue to support effective security cooperation centered on information sharing, capacity building, and interoperability. The United States should buttress such efforts by firming up its commitment to respond appropriately to threats of coercion and the use of force.

Boosting the ability of allies and partners to see better what is happening in their maritime backyards will help them become more resilient. And assistance with capacity building, especially for coast guards and other law enforcement agencies, will give nations a better ability to protect their sovereignty. Bilateral, “minilateral,” and larger multilateral exercises can also help create a readiness for dealing with future contingencies.

In sum, a confident but not boastful United States is neither stepping away from Asia nor trying to provoke wars there. Rather, it aims to ensure stability in the region so that all countries there can advance both sovereign interests and regional cooperation.

Patrick M. Cronin is senior director of the Asia-Pacific Security Program at the Center for a New American Security in Washington. @PMCroninCNAS
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ASEAN — finding middle path in the US-China conflict


 

November 9, 2018

Opinion

ASEAN — finding middle path in the US-China conflict

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Despite local uncertainties, the region must be bold in shaping its own future

For almost a decade, the basic strategic issue for Southeast Asia has been how to respond to the changing dynamics of the Sino-American relationship as it enters a new phase of heightened long-term competition.

The U.S. and China will not quickly or easily reach a new modus vivendi. Southeast Asia will have to navigate a prolonged period of unusual uncertainty.

U.S.-China rivalry in the South China Sea has emerged as something of a proxy for their competition. Strategically, the situation is a stalemate. China will not give up its territorial claims and the deployment of military assets. But neither can China stop the U.S. and its allies operating in the area without risking a war it does not want because it cannot win.

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The Trump administration has given the 7th Fleet more latitude to conduct Freedom of Navigation Operations in the South China Sea. Japan and other U.S. allies are beginning to push back against China’s claims. The U.S. has signaled its intention to conduct even larger shows of force. This raises the risk of accidental clashes. Still, that risk does not at present seem unacceptably high.

A premeditated war is improbable. China will feel it must fight only if the U.S. supports Taiwan independence. This is unlikely. If an accidental clash should occur in the South China Sea or elsewhere, both sides will probably try to contain it. The Association of Southeast Nations ought to be able to cope with situations short of a U.S.-China war. ASEAN has previously managed far more dangerous circumstances. But this will require greater agility, unity and resolve than ASEAN has shown recently.

 

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The most obvious manifestation of increased Sino-American competition is U.S. President Donald Trump’s “trade war.” Trade is the means; the objective is strategic competition. China accuses the U.S. of using trade to hamper its development. China is not wrong.

Although attention has focused on the tit-for-tat tariffs, the more significant aspect is new U.S. legislation to limit technology transfers to China, which sets new rules that future administrations will find hard to change.

Trump’s attitude toward China is no aberration, but reflects a bipartisan view — widely shared in business as well as politics — that the U.S. has been too accommodating to Beijing. Whoever succeeds Trump will likely stay tough on China.

The Trump administration has often been described as isolationist, but this is a distortion. Rather, it believes that this is an era of great power competition and is determined to compete robustly, with a preference for bilateralism over multilateralism, and a return to “peace through strength.”

China has misread the implications of the global financial crisis of 2008-2009 by believing its own propaganda about the U.S. being in irrevocable decline. It missed the souring mood of U.S. business toward China, mainly over intellectual property theft and forced technology transfers. These concerns are shared by businesses in other developed economies, which support Trump’s goals although they may disagree about his methods.

President Xi Jinping’s 19th Party Congress speech a year ago abandoned Deng Xiaoping’s approach of “hiding light and biding time.” But his main focus was domestic. Xi said China’s new “principal contradiction” was between “unbalanced and inadequate development and the people’s ever-growing needs for a better life.” This poses a fundamental challenge. Unless those needs are met — which will require immense resources — Communist Party rule could be at risk.

To find a new growth model, the party must balance control and market efficiency. An enhanced role for markets implies a loosening of control.

It remains to be seen what Xi will do. So far he seems to have opted for stronger control, and may have sharpened the problems he faces.

The Belt and Road Initiative is as much about this domestic challenge as China’s global ambition. The BRI exports the old growth model based on state-led infrastructure investment. The BRI buys time to find a new balance between the market and the party.

But the BRI rests on the foundation of U.S.-led globalization. Can it succeed if the world turns protectionist? China may well be the main loser if that global order frays. China cannot replace U.S. leadership. An open international order cannot be based on a largely closed Chinese model. BRI partner countries are pushing back, including in Southeast Asia, and implementation will be problematic.

China is not happy with every aspect of the post-Cold War order based on U.S.-led globalization. China wants its new status acknowledged. But Xi has championed and profited from globalization. The trade war is now hurting China and slowing growth. China may seek to become more self-sufficient technologically, but this will take time while the pressures are immediate.

Some have speculated that there may be opportunities for ASEAN if foreign companies shift production from China. This is possible. But doing so is easier said than done and no one will forgo the Chinese market. ASEAN members must also resist temptations to act as a backdoor into the U.S. for Chinese companies.

A prolonged trade war and concerns that China may have compromised the security of supply chains, are likely to upend existing supply links. This could seriously complicate ASEAN members’ efforts to move up the value chain, for example if U.S. groups relocate business back to America. In response, ASEAN must attract higher grade investments by improving infrastructure and skills, and assuring investors their technology is secure.

Low labor costs and a potential market of 700 million consumers are no longer sufficient to make Southeast Asia an attractive investment destination. The attitude of ASEAN members toward China and the extent to which they are beholden to it are likely to become important considerations in investment decisions.

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BALI, Oct 12 — Tun Dr Mahathir Mohamad has lamented ASEAN for not fully tapping its potential as an economic powerhouse, despite having abundant resources and a consumer market of nearly 700 million people.

ASEAN needs to move decisively to hedge against long-term uncertainties, while taking advantage of available opportunities.

Reforms such as the removal of non-tariff barriers and harmonization of ASEAN’s approach toward services and labor mobility could help make Southeast Asia a common production platform. Member states meanwhile should implement plans to upgrade skills and infrastructure. But internal political changes in some member countries could undermine the goal of closer economic integration. Unfortunately, ASEAN has, in recent years, become too timid for its own good.

 

 

Ambassador A Large Bilahari Kausikan, a former Permanent Secretary at Singapore Ministry of Foreign Affairs, is Chairman of the Middle East Institute at the National University of Singapore.

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In defence of Mat Sabu’s ‘18-wheeler’ diplomacy


October 1, 2018

In defence of Mat Sabu’s ‘18-wheeler’ diplomacy

Opinion
by Phar Kim Beng

http://www.malaysiakini.com

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COMMENT |

Defense Minister Mohamad Sabu has reached a small milestone. He was in New York City between September 23-29, one of the longest trips ever by a Malaysian Defense Minister, and among the few to attend the United Nations General Assembly so soon after his appointment to cabinet.

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The length and the early trip to the United States are key, even if it is his 10th visit in the last four months, from the Shangri-La Dialogue in Singapore – during which he emphasised the centrality of ASEAN and the importance of the ‘Mahathir doctrine’ – to his visit to Lebanon in June.

To those not in the know, southern Lebanon is one of those delicate areas where conflicts could erupt at any given time. Malaysian peacekeepers are there to help maintain some semblance of order as part of the UN Interim Force in Lebanon (Unifil).

Malaysians blue helmets have always been deeply respected. Be it in Congo in 1962 or Somalia in 1989, Malaysian soldiers have always been at the forefront of peacekeeping efforts.

Infamously, the book and movie Black Hawk Down got its details wrong. It wasn’t just the Pakistani blue helmets who retrieved the American rangers trapped in the fire fights in the centre of Mogadishu, Malaysians also saved the day.

Tariq Chaudhry, a UN diplomat, has always tipped his hat to the bravery of the Malaysian soldiers.

His doctorate thesis on the Organisation of Islamic Cooperation at Cambridge went as far as accrediting the Malaysian armed forces in maintaining the peace in Bosnia after the Dayton Agreement in 1995.

Mat Sabu is aware of this glowing legacy. He celebrates them, and is able to hit it off with Dr Mahathir Mohamed precisely because both agree peace is something which Malaysia can do and has done the world over.

Mohamad also believes that wars are a blight on humanity. One should avoid such aggressive behaviors. This is again a position not unlike the view of Mahathir, who also hates wars.

 

Just yesterday, Mahathir hinted that Malaysia is looking into following Japan’s constitution which prevents the country from entering armed conflicts.

Thus Malaysia has pulled out of the conflict in Yemen – which has now degenerated into a complex humanitarian emergency, where tens of thousands of people have died from dysentery, lack of clean water and medical services. The numbers are greater than the combatants who actually perished armed conflict between the Houthi rebels and Saudi-led coalition.

Preventive diplomacy

Since Malaysia has always had a policy of “active” neutrality starting from the 1960s – a concept enshrined by Malaysia’s participation in Non-Aligned Movement (NAM), further reinforced by the late Tun Ghazali Shafie’s concept of the Zone of Peace, Freedom and Neutrality (Zopfan) – our foreign policy has always focused on maintaining peace.

In the same month that Mohamad participated in the Shangri-La Dialogue, he hosted the Malaysia-Australia High Level Committee on Defence Cooperation in Butterworth. Australia is one of the members of the Five Power Defence Arrangements (FPDA) which Malaysian navy and armed forces still treasure deeply.

The next month(in July), Mohamad visited the Farnborough Airshow in the UK, an event which typically hosts the amazing acrobatic Red Arrows. The UK is also a member of the FPDA.

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https://www.independent.co.uk/news/world/asia/uk-south-china-sea-royal-navy-warship-beijing-hms-sutherland-gavin-williamson-trump-us-australia-a8208016.html

Given the insistence of the UK of remaining a vital and active player in maintaining freedom of navigation in South China Sea, Mohamad’s trip reassured them that their role in FPDA is deeply cherished.

In July 2018, the minister also made it a point to visit Bangladesh in light of the country’s growing tensions with Myanmar over the influx and mistreatment of Rohingya Muslims, which neither side seems to acknowledge is facing one of the worst humanitarian disasters.

With his trip to Cox’s Bazar, Mohamad is engaging in preventive diplomacy. He is trying to prevent the issue from further enlarging into an explosive issue that can drag ASEAN and South Asia into a structural conflict over the millions of Rohingya facing near-certain death.

Indeed, having strengthened all the necessary pillars in FPDA – by visiting Singapore, hosting the Australia and later the New Zealand delegation, in addition his UK trip – it seems Mohamad is emphasising the backbone of Malaysian defence diplomacy through FDPA.

 

This is why the trip to Bangladesh happened in August. In that month, Mohamad strengthened the confidence of the Malaysian peacekeepers in Lebanon, and sent a powerful signal to Myanmar that peace and freedom to all must be of paramount importance.

The following month, Mohamad went one step further: he visited the ASEAN Defence Ministers’ Meeting-Plus with Japan. Japan is critical precisely because the country in 1994, under then Foreign Minister Taro Nakayama, created the ASEAN Regional Forum from the ASEAN Post Ministerial Conference.

In this particular trip to Nagoya, Mohamad signed an MOU with Japan to enhance mutual humanitarian assistance, civil military cooperation, in addition to strengthening the Malaysian peacekeeping operations in Port Dickson, which has been ongoing since 2005.

It should be added Japan immediately pledged a donation of USD1 million to reinforce peacekeeping facilities. These are all major achievements, as they reflect a strategic continuation of the dialogue and method of cooperation with Japan. How? It was Nakayama who suggested a multilateral forum where all countries in Southeast Asia and Northeast Asia could hold annual defence dialogues.

By 2005, the ASEAN Defence Ministers’ Meeting-Plus took place in Kuala Lumpur, with a goal of consolidating the defence diplomacy of ASEAN member states and expanding the ambit of ASEAN’s defence collaboration with external dialogue partners, including China, Japan, South Korea, the United States.

If one observes all of Mohamad’s frenzied activities and trips, including the current one to the US, it is clear that he knows how intricate the defence portfolio has been since the 1960s.

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This is why every single trip can be related to either ASEAN, FPDA, ASEAN Defence Ministers’ Meeting-Plus, and the UN.

The ’18-wheeler’ strategy

I would term this Mohamad’s 18-wheeler defence diplomacy, the metaphorical large truck that he drives taking the previous cargo forward. The precious cargo is of course Malaysian sovereignty, regional equilibrium, and international peace.

And, this is all done in a way to further the parameters of the ‘Mahathir doctrine’, where battle ships should not linger in any parts of the South China Sea unless the goal is to jointly address the effects of piracy.

In this sense, Mohamad’s upcoming meetings with his counterparts in Manila and Malawi deserves more commendations.

Mohamad is trying to stabilise one of the world’s oldest conflicts that go all the way back to 16th century, when the Spanish conquistadors first arrived to upend the religious and racial balance of Mindanao and Manila.

One should remember that Mohamad is a humanitarian at heart. He knows that Philippines and Mindanao Autonomous Region are constantly hammered by natural disasters.

Unless Malaysia and Philippines can work together, complex humanitarian emergencies can lead to endemic poverty, and hopelessness, all of which are fuel of terrorism and kidnap for ransom groups, that can spill over into Sabah and Sarawak.

So to his critics in UMNO and PAS who said that Mohamad hasn’t been doing his homework, they must realise that it is they who have been sleeping on the job as the opposition.


PHAR KIM BENG was a multiple award-winning head teaching fellow on China and the Cultural Revolution in Harvard University.

The views expressed here are those of the author/contributor and do not necessarily represent the views of Malaysiakini.

ASEAN: South China Sea code of conduct still a speck on the horizon


September 8, 2018

ASEAN: South China Sea code of conduct still a speck on the horizon

by Gregory B Poling, CSIS

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After two decades of talks, scepticism about the development of a South China Sea Code of Conduct (COC) is well-deserved, but it is also important to acknowledge progress when it happens. The agreement on a single draft negotiating text, revealed ahead of the ASEAN–China Post Ministerial Meeting on 2 August 2018, is an important step in the process that deserves recognition.

The COC will not resolve the South China Sea disputes, nor was it ever meant to. Instead the COC is intended to manage disputes to avoid conflict pending their eventual resolution by direct negotiation or arbitration among the claimants. But any system to effectively manage the South China Sea disputes would require three things, none of which are achieved yet in the draft text.

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First, an effective COC would need to be geographically defined. The claimants do not need to resolve their disputes, but they do need to agree on where those disputes are if they hope to effectively manage them.

For instance, any agreement that did not include the Paracel Islands and the waters around them would be unacceptable to Hanoi. The same goes for the Philippines in the case of Scarborough Shoal. And what of waters and undersea features in the claimed exclusive economic zones of Indonesia and Malaysia? These areas are all claimed by China via the nine-dash line and would continue to be sites of tension if excluded.

According to Carl Thayer, who revealed many details of the draft text, Vietnam suggested that ‘the present Code of Conduct shall apply to all disputed features and overlapping maritime areas claimed under the 1982 UNCLOS [United Nations Convention on the Law of the Sea] in the South China Sea’. But that is too vague to be effective and is worded to exclude areas in which Beijing claims historic rights not recognised by other parties under UNCLOS.

Indonesia suggested adding that ‘the Parties are committed to respect the Exclusive Economic Zone and continental shelf of the coastal states as provided for in the 1982 UNCLOS’. But again that would seem to purposely exclude areas in which China claims and is sure to assert historic rights. It might be a legally correct position to take, but it is not an effective basis for a COC.

The only way that any code could work is if it clearly encompasses the areas under contention, including all reefs, rocks, submerged banks, waters and airspace in which China seeks to assert its historic rights. Specifying this without using language that would be unacceptable to any of the claimants would be difficult, but possible if all parties were committed to reaching a deal.

Second, an effective COC would need a dispute settlement mechanism. Disagreements over interpretation and application of the text are inevitable. This is clear from the history of the 2002 Declaration on the Conduct of Parties in the South China Sea, which was too vague and had no means to resolve disagreements. As a result, most parties violated the text while insisting that they were still in compliance and pointing their fingers at others.

To resolve this problem, both Indonesia and Vietnam reportedly suggested that parties to the COC be able to take disagreements to the High Council under the ASEAN Treaty of Amity and Cooperation. That body, which has never been convened, would include representatives nominated by ASEAN members to hear and mediate disputes. Its rulings would not be legally binding or necessarily enforceable, but they would have considerable weight.

A major problem with the High Council suggestion would be that under the Treaty of Amity and Cooperation it can only be constituted by ASEAN members. A more effective option might be to spell out the procedures for convening a High Council-like body that would draw arbiters from a pool nominated by all parties, including China.

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Third, any effective regime to manage the South China Sea disputes would need detailed provisions on fisheries management and oil and gas development. But the positions enumerated in the negotiating text so far are contradictory and fall well short of outlining a detailed and coordinated system to manage resources.

For instance, Jakarta suggests that states should coordinate on fighting illegal fishing as a form of transnational crime, but Indonesia’s definition of illegal fishing includes activities that others, especially China, consider legal. And China’s suggestions on oil and gas cooperation seem more geared towards excluding foreign companies than towards equitably managing resources with fellow claimants.

Unfortunately, there is a fundamental contradiction in the COC. It is the wrong vehicle to discuss details on resource management because of its membership, but it cannot be an effective means to manage the disputes without doing so. Most of the ASEAN states have no stake in the contested fisheries or hydrocarbon resources and would be uninterested in negotiating the specifics of overlapping entitlements and resource rights.

The solution to this problem could be a COC signed by all 10 ASEAN members and China that establishes general rules of behaviour within a clear geographic area, sets up an effective dispute settlement mechanism and endorses the immediate start of follow-on negotiations involving only the relevant claimants on fisheries management and oil and gas cooperation.

Such a document would be a major step towards peacefully managing the South China Sea disputes and there are hints that at least some sections of the negotiating text might be on the right track. But the differences between parties remain considerable and final agreement on an effective COC still seems some way off.

Gregory B Poling is Director of the Asia Maritime Transparency Initiative and Fellow with the Southeast Asia Program at the Center for Strategic and International Studies in Washington, DC

.http://www.eastasiaforum.org/2018/09/06/south-china-sea-code-of-conduct-still-a-speck-on-the-horizon/

Planning for the Post-Trump Foreign Policy Wreckage


August 31, 2018

Planning for the Post-Trump Foreign Policy Wreckage

When the president eventually exits the White House, the rest of us will quickly have to make sense of the world he’s left behind.

Donald Trump speaks during an event to announces a grant for drug-free communities support program, in the Roosevelt Room of the White House in Washington, DC, on August 29, 2018. (MANDEL NGAN/AFP/Getty Images)

Donald Trump speaks during an event to announce a grant for drug-free communities support program, in the Roosevelt Room of the White House in Washington, DC, on August 29, 2018. (MANDEL NGAN/AFP/Getty Images)

 

One of the many unfortunate consequences of U.S. President Donald Trump’s cavalier, corrupt, and capricious handling of foreign policy is that it discourages farsighted thinking about the global agenda. Even worse, it is gradually undermining the institutional capacity the United States will need to deal with that agenda. To a first approximation, the people who are most alarmed by his actions (and I include myself among them) are spending a lot of their time circling the wagons and trying to minimize the damage that he and his minions do while in office. They are like parents trying frantically to corral a rambunctious toddler (hat tip to Dan Drezner) who is running amok through a china shop: All the attention is on saving as much of the crockery as possible, and nobody has any time to think about what they’ll do once the kid has finished smashing things.

It’s understandable that people are trapped in a reactive mode, because Trump’s genius is his ability to make nearly everything all about him and to focus attention on whatever his latest outrageous antic is. What other president could or would make himself the center of attention when a prominent senator died or express his disagreement with an important allied leader by tossing candy at her? Trump may be terrible at running the government, but his ability to command attention through outrageous behavior makes Madonna look like an amateur.

Yet we should resist the urge to remain in a defensive crouch. Yes, there’s a lot of damage being done these days, and resisting Trump’s worst impulses is important. But there are plenty of problems out there that will require attention in the not-too-distant future, and where the appropriate solutions aren’t immediately obvious. Careful and creative thought will be needed to figure out an appropriate destination and then to chart a course to get there. It is not too soon, therefore, for foreign-policy mavens to start thinking about the post-Trump world, not simply to restore the pre-Trump status quo but in order to figure out arrangements that acknowledge new realities and are appropriate for the conditions we will face in the future.

No doubt each of you has your own list of priorities, but for what it’s worth, here are a few of mine.

#1: The Architecture of Great Power Politics

When he ran for president back in 1992, Bill Clinton once declared that “the cynical calculus of pure power politics simply does not compute. It is ill-suited to a new era.” He was expressing the widespread belief (pious hope?) that humanity had turned a corner at the end of the Cold War, and that the old logic of great power rivalry was now behind us. He was dead wrong, alas, and great power politics are now back with a vengeance.

But the form and intensity of that rivalry remains open, and the nature of relations among today’s great powers needs to be shaped through farsighted diplomatic action. Will the United States disengage and let Europe and Asia (mostly) go their own way? Will the United States, its NATO allies, and Japan link up with others to contain Russia, China, and their various regional partners? Should the United States make a concerted effort to drive a wedge between Moscow and Beijing, perhaps by trying to work out an agreement on Ukraine and promoting a security architecture for Europe and Russia that reduces each side’s fears? Where will countries like India fit into the constellation of great powers, and where should the United States want it to be?

It is all well and good to obsess about “saving NATO” or “preserving a liberal order,” but those short-term, reactive goals do not eliminate the need to think hard about what sort of great power relations are realistic and desirable in the decades ahead. At key moments in world history—such as 1815, 1870, 1919, 1945, and 1993—the leaders of the great powers had to imagine and then try to implement visions of great power politics designed to preserve key interests, ideally without (much) resort to force. They were sometimes successful; at other key moments, they failed miserably. The problem cannot be avoided, but we are more likely to end up with arrangements we like if we start thinking through the possibilities now. 

#2: The Brave New World of Cyber:

I’m the first to admit that I didn’t foresee all of the ways that digitalization, social media, and other aspects of the cyber-world would shape both international and domestic politics. Sure, there’s been a lot of hype and threat inflation about cybersecurity, cyberwar, and cyber-everything else, but in 2018 it’s impossible to deny that these issues are affecting us all in pretty far-reaching ways. Indeed, even the suspicion that bad guys are using the internet to manipulate politics can have effects all on its own.

Instead of moving energetically to address these issues, however, Trump fired the White House cybersecurity coordinator and eliminated the position, repeatedly denied that anybody interfered in the 2018 election, and now is tweeting out accusations that Google is biased against him. Instead of developing a coherent U.S. policy and trying to negotiate an international code of conduct that might mitigate these problems, he’s kicking the can down the road.

But does anyone believe these issues will simply disappear on their own? Surely not. Which means more farsighted people will have to start developing policies that can preserve the benefits of the digital revolution while protecting us from its dark downside.

#3: New Institutions for the World Economy

It is now obvious that contemporary globalization did not deliver as promised for millions of people—though it did have significant benefits for the Asian middle class and the global 1 percent—and that the main institutions set up to manage global trade and investment need serious rethinking. This is partly because some countries (e.g., China) have complied poorly with some of the rules, though no country’s track record is perfect, and because unfettered globalization did not allow individual countries to tailor arrangements in order to support key cultural or national priorities.

This is not my area of expertise, and I’m not going to offer any detailed advice on what should be done. For what it’s worth, I find my colleague Dani Rodrik’s arguments on allowing nations greater autonomy within the global trading and investment order, so that their participation does not produce wrenching social dislocations at home, convincing. Less globalization might be more, therefore, but less globalization does not mean zero.

As near as I can tell, the Trump administration’s approach to these issues has been to use U.S. economic leverage to bully other countries into making minor economic concessions, which Trump can then hail as the “beautiful” new trade deals that he promised back in 2016. That’s what happened with South Korea and what appears to be happening with NAFTA. But what’s missing, at least so far, is any attempt to develop a larger set of institutions or arrangements that would safeguard the wealth-enhancing elements of (mostly) open trade and avoid both the obvious costs of a trade war and the social turmoil of hyper-globalization. Again, it’s not my field, but I sure hope Dani isn’t the only person thinking about what a new global economic order should look like.

#4: Whither the Middle East? 

If the architecture of great power politics is now uncertain and will require creative diplomacy to adapt to and shape, that goes double in the troubled Middle East. Thus far, the Trump administration has mostly doubled down on supporting America’s longtime Middle East partners: giving a free hand to Israeli expansionism, backing Abdel Fattah al-Sisi’s military dictatorship in Egypt, and encouraging Saudi Crown Prince Mohammed bin Salman’s ambitious domestic reforms and his increasingly reckless regional behavior (most notably and tragically in Yemen), as well as ramping up pressure on America’s perennial bête noire, Iran. Trump has also stumbled into a pissing contest with President Recep Tayyip Erdogan in Turkey, but Erdogan is at least as prickly and desperate for scapegoats as Trump himself, and a cynic might argue that the two leaders deserve each other.

Although it’s possible that National Security Advisor John Bolton will still get the war with Iran that he has long favored, the bigger questions are what the U.S. role in the region will be over the longer term and how it will deal with problems that are going to come home to roost eventually. Former Presidents Clinton, George W. Bush, and Barack Obama all openly backed a two-state solution between Israel and the Palestinians, for example, and each tried to bring it about in their own not-very-effective fashion. The two-state solution is now on life support if not completely dead, however, which raises the obvious question: If “two states for two peoples” is impossible, then what is does the United States support? Does it believe Israel should become a one-state democracy, with full political rights for all inhabitants, including the Palestinians who are now under strict Israeli control and denied political rights? Do Americans think those Palestinians should be kept in a state of permanent subjugation (aka apartheid)? Is the United States in favor of Israel expelling them to some other country? Nobody really wants to think about awkward questions such as these, let alone answer them, but Trump’s successors are going to get asked. Might be a good idea to start formulating a response.

And that’s just one issue. The United States will also need to figure out if it wants to continue its (mostly futile) efforts to mold local politics all over the region or revert back to the strategy of “offshore balancing” that it employed there from 1945 to roughly 1991. Should it strive for a modus vivendi with Iran—in the service of maximizing U.S. leverage and maintaining a regional balance of power—or continue to flirt with regime change? And it is worth asking if the Middle East is even as vital a region as it once was, given the shale gas revolution back in the United States, the imperative to reduce fossil fuel consumption, and the rising strategic importance of Asia?

#5: Rebuilding Foreign Policy Capacity and Expertise

Unfortunately, the United States will be grappling with all of these problems with a severely depleted foreign-policy capacity. The travails of the State Department are well known, but there has also been exceptionally high turnover among key Trump aides and a general erosion of nonpartisan experience and expertise throughout the government. Trump’s repeated attacks on the intelligence agencies and his efforts to politicize the civil service aren’t helping either. Lord knows I’m critical of the “Blob” and its tendency not to hold itself accountable and to stick with strategies that aren’t working, but the answer is a better foreign-policy establishment, not amateur hour.

Accordingly, planning for a post-Trump world will also require a sustained effort to rebuild the institutional and administrative capacity for an effective foreign policy. Having an effective and professional civil and foreign service is critical in a system such as America’s, because so many top jobs get replaced whenever the White House changes hands, and many senior officials take months if not years to be nominated and confirmed. Moreover, a lot of them stay in their posts for only a year or two, creating further disarray and churn within the government. Add to that America’s odd practice of letting big campaign donors serve in important diplomatic posts or management positions, and you have a recipe for trouble.

This problem wouldn’t be a big issue if the United States had modest foreign-policy goals, but that is hardly the case. Instead, it is trying to run the world with perhaps the most disorganized and dysfunctional system imaginable. Accordingly, farsighted patriots need to start planning how to restore expertise, analytic capacity, and accountability now, so that this process can begin swiftly once Trump is gone.

The list presented here is far from complete, and it’s easy to think of other issues (e.g., climate change, proliferation, migration, etc.) where imaginative thinking is going to be needed. But my central point remains: Preserving the status quo against Trump’s wrecking operation is not enough. Instead of just playing defense, his critics need to start thinking about the positive goals they intend to pursue once he’s left the political stage. And there’s an added benefit in this course of action: The most obvious way to convince Americans that Trump’s policies are mistaken is to show them a better alternative.

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Stephen M. Walt is the Robert and Renée Belfer Professor of International Relations at Harvard University. @stephenwalt

Southeast Asia: Changing Geo-Political Dynamics in the Trump Era


August 30, 2018

Southeast Asia: Changing Geo-Political Dynamics in the Trump Era

Widespread reports of China’s hegemony over the neighboring region miss the nuance of fast-shifting political and strategic dynamics

Phnom Penh 
A historical map depicting China's flag over Southeast Asia. Photo: iStock

Is China truly establishing dominance over neighboring Southeast Asia, or is it a prevailing perception among academics and journalists who have uncritically adopted a pervasive pro-China narrative built on Beijing’s rising investment and influence in the region?

Two recent Southeast Asian elections denote a shifting spectrum. Last month’s general election in Cambodia, by far China’s most loyal ally in the region, was taken by some as indication of how far the country has moved away from its past Western backers and closer to Beijing.

Image result for Hun Sen-President Xi

As Cambodia abandons multi-party democracy for one-party authoritarianism, similar to the dominance of the Communist Party in China, some see Cambodia as the first domino to fall in China’s grand regional ambition for political and economic control over the nearby region.

Indeed, some in Cambodia’s exiled opposition have claimed that the country has become a de facto “Chinese colony” under Prime Minister Hun Sen’s ruling Cambodian People’s Party (CPP).

The Harapan coalition’s win at Malaysia’s May 9 general election, however, pointed in the opposite direction. The long-ruling United Malays National Organization (UMNO) was ousted by an alliance whose campaign narrative was built in part on opposing Chinese investment, which boomed under the previous government.

Now as prime minister, Mahathir Mohamad has cancelled US$22 billion worth of Chinese-backed infrastructure projects, including a Belt and Road Initiative-inspired high-speed rail line, for reasons of fiscal prudence.

While Mahathir warned of the risk of new forms of “colonialism” during a recently concluded tour of China, he also made the diplomatic point that his government isn’t anti-China.

Indeed, some in Cambodia’s exiled opposition have claimed that the country has become a de facto “Chinese colony” under Prime Minister Hun Sen’s ruling Cambodian People’s Party (CPP).

The Harapan coalition’s win at Malaysia’s May 9 general election, however, pointed in the opposite direction. The long-ruling United Malays National Organization (UMNO) was ousted by an alliance whose campaign narrative was built in part on opposing Chinese investment, which boomed under the previous government.

Now as Prime Minister, Mahathir Mohamad has cancelled US$22 billion worth of Chinese-backed infrastructure projects, including a Belt and Road Initiative-inspired high-speed rail line, for reasons of fiscal prudence.

While Mahathir warned of the risk of new forms of “colonialism” during a recently concluded tour of China, he also made the diplomatic point that his government isn’t anti-China.

Malaysia's Prime Minister Mahathir Mohamad (L) and China's Premier Li Keqiang talk during a signing ceremony at the Great Hall of the People in Beijing on August 20, 2018.Mahathir is on a visit to China from August 17 to 21. / AFP PHOTO / POOL / HOW HWEE YOUNG

“We should always remember that the level of development of countries are not all the same,” Mahathir said this week at a joint press conference with Chinese premier Li Keqiang. “We do not want a situation where there is a new version of colonialism happening because poor countries are unable to compete with rich countries, therefore we need fair trade.”

It is undeniable that China now plays a major and growing role in Southeast Asian affairs, even if judged by only its economic heft.

A recent New York Times report noted that every Asian country now trades more with China than the United States, often by a factor of two to one, an imbalance that is only growing as China’s economic growth outpaces that of America’s.

With China’s economic ascendency projected to continue – the International Monetary Fund (IMF) predicts China could become the world’s largest economy by 2030 – some believe that Beijing aims to replace the US-backed liberal international order in place since the 1950’s with a new less liberal and less orderly model.

Cambodia’s case, however, tests the limits of that forward-looking analysis. The US and European Union (EU) refused to send electoral monitors to Cambodia’s general election last month on the grounds the process was “illegitimate” due to the court-ordered dissolution of the country’s largest opposition party.

Washington has since imposed targeted sanctions on Cambodian officials seen as leading the anti-democratic crackdown, while new legislation now before the US Senate could significantly ramp up the punitive measures.

Hun Sen aired a combative response to threats of sanctions, saying with bravado that he “welcomes” the measures. Some commentators read this as an indication that Phnom Penh no longer cares about the actions and perceptions of democratic nations because it has China’s strong and lucrative backing.

Yet the CPP still made painstaking efforts to present a veneer of democratic legitimacy on to its rigged elections, something it would not have done if it only cared about Beijing’s opinions. Hun Sen now says he will soon defend the election’s legitimacy at the United Nations General Assembly, yet another indication that he still cares what the West thinks.

China’s rise in Southeast Asia is viewed primarily in relation to the US’ long-standing strong position, both economically and strategically. Many see this competition as a zero-sum game where China’s gain is America’s loss.

Along those lines, some analysts saw US Secretary of State Mike Pompeo’s recent whirlwind trip to Southeast Asia as “parachute diplomacy” that only underscored certain entrenched regional perceptions of the US as an episodic actor that has no real strategy for Southeast Asia.

The Donald Trump administration certainly lacks an overarching policy comparable to his predecessor Barack Obama’s “pivot to Asia,” a much-vaunted scheme with strategic and economic components that made Southeast Asia key to America’s policy of counterbalancing China.

Despite no new policy moniker, Trump’s administration has in many ways continued Obama’s scheme: Vietnam remains a key ally, support for other South China Sea claimants is unbending, military sales remain high, and containing Chinese expansion is still the raison d’etre.

It’s also been seen in the number of visits to Southeast Asia by senior White House officials, including high profile tours by Pompeo and his predecessor Rex Tillerson, Defense Secretary Jim Mattis, and Trump himself to Vietnam in November 2017 and Singapore in June.

A little noticed December 2017 National Security Strategy document, produced by Trump’s White House, explicitly notes that “China seeks to displace the United States in the Indo-Pacific region, expand the reaches of its state-driven economic model, and reorder the region in its favor.”

Yet perceptions of new Cold War-like competition in Southeast Asia often fail to note the imbalance between America and China’s spheres of influence in the region.

 

US President Donald Trump (L) and Vietnam's President Tran Dai Quang (R) attend a welcoming ceremony at the Presidential Palace in Hanoi in Hanoi on November 12, 2017.Trump told his Vietnamese counterpart on November 12 he is ready to help resolve the dispute in the resource-rich South China Sea, which Beijing claims most of. / AFP PHOTO / POOL / KHAM

Absent President Donald Trump’s Asia Policy, China emerges as the dominant  player in Southeast Asia

China’s two most loyal regional allies are arguably Cambodia and Laos, countries of less economic and strategic importance than America’s main partners Indonesia, Thailand, Singapore and Vietnam.

The historically pro-US Philippines has gravitated somewhat into China’s orbit under President Rodrigo Duterte, though at most there has been an equalization of its relations between the two powers rather than outright domination by China.

Strategic analyst Richard Javad Heydarian recently noted that Duterte likes to think of himself as a “reincarnation of mid-20th century titans of the so-called Non-Aligned Movement,” though Heydarian suggested that this could prompt a backlash from the Philippine public that remains resolutely pro-America.

Malaysia, another country that was thought to have been moving closer to China, has ricocheted strongly in the other direction after the change in leadership from pro-China Najib Razak to China-skeptic Mahathir Mohamad.

Thailand has boosted military ties with Beijing since the country’s military coup in 2014, which caused some panic in Washington, but a recent incident has shown just how fragile their bilateral relations remain.

After two boats sank near the resort island of Phuket in early July, killing dozens of Chinese tourists, Deputy Prime Minister Prawit Wongsuwan blamed the Chinese tour operators, commenting the accident was “entirely Chinese harming Chinese.”

His claim led to calls in China for tourists to boycott Thailand, which could cost the country roughly US$1.5 billion in cancellations, according to some estimates. Thailand’s tourism sector is now facing a major public relations problem after China’s jingoist state-owned media lambasted Prawit’s tactless response.

More explosively, rare nationwide protests in Vietnam in June were sparked by nationalistic concerns that a new law allowing 99-year land leases in special economic zones would effectively sell sovereign territory to China.

There are strong perceptions, aired widely over social media, that Vietnam’s ruling Communist Party is too close to Beijing, a cause of resentment that some analysts suggest is the country’s biggest potential source of instability.

Even in perceived pro-China nations like Cambodia and Laos, anti-China sentiment is rising in certain sections of the public. Arguments that Chinese investment actually harms the livelihoods of many Cambodians, especially in places like coastal Sihanoukville and Koh Kong, is on the ascendency.

Social media criticism has centered on a concession deal the Cambodian government entered with a Chinese company that effectively gives it land rights to an estimated 20% of Cambodia’s coastline.

The same goes for Laos’ ruling communist party, which has taken steps to curb the growth of certain sectors dominated by Chinese investment, such as banana plantations and mining, over public complaints about their adverse health and environmental impacts.

The IMF and others, meanwhile, have expressed concerns that Laos risks falling into a Chinese “debt trap”via its Beijing-backed US$6 billion high-speed rail project, a claim that Prime Minister Thongloun Sisoulith felt the need to publicly rebuff in June.

Still, there is a certain misapprehension that China’s rising economic importance to the region, both as a provider of aid and investment and market for exports, necessarily equates to strong political and strategic influence.

It doesn’t always add up that way. In January, China fractionally overtook America as the largest importer of Vietnamese goods, according to the General Department of Vietnam Customs. Nonetheless, Hanoi remains decidedly pro-US in regional affairs and that position isn’t expected to change, even if its exports to China continue to outpace those to America.

More fundamentally, China’s rising economic presence in the region is in many instances destabilizing relations. Rapid growth in Chinese investment to Malaysia in recent years prompted a public backlash, a phenomena seized on by the victorious Harapan coalition. There are incipient signs the same type of backlash is now percolating in Cambodia and Laos.

Chinese investment is likely to play a role in Indonesia’s presidential and legislative elections next year, perhaps negatively for incumbent President Joko Widodo, under whose tenure China has become the country’s third largest investor.

“The relationship with China could turn toxic for [Widodo],” Keith Loveard, senior analyst with Jakarta-based business risk firm Concord Consulting, recently told the South China Morning Post.

To be sure, China has translated some of its economic largesse to strategic advantage. Philippine President Durterte, for example, said in October 2016 that his country’s one-way security ties with the US would come to an end, though America’s provision of “technical assistance” during the Marawi City siege last year cast the extent of that into doubt.

China has also developed closer ties to the militaries of Thailand and Cambodia, so much so that the latter cancelled joint military exercises with the US last year. It has also resumed its past position of shielding Myanmar’s generals from Western condemnation during the recent Rohingya refugee crisis.

But America still remains the predominant security ally of most Southeast Asian nations, something that will only become more important as concerns about the spread of Islamic terrorism heighten. This month, Washington provided an additional US$300m in security funding to the region.

Only Laos, Cambodia and Myanmar buy more arms from China than America, according to the Stockholm International Peace Research Institute. The rest of Southeast Asia’s military procurements, sometimes exclusively, come from the US.

Still, some of China’s recent regional successes have been the result of America’s missteps. China has been greatly helped by Trump’s withdrawal of America from its long-standing leadership role in certain multilateral institutions, as well as his ad hoc policy towards Southeast Asia that favors more bilateralism.

Had Trump not withdrawn the US from the Trans-Pacific Partnership, a multilateral trade deal championed by Obama that excludes China, regional trade flows would be geared more towards America, providing an important counterbalance to many regional countries’ rising dependence on Chinese markets.

By doing so, Trump allowed Beijing’s multilateral economic institutions, like the Asian Infrastructure Investment Bank and the New Development Bank, to gain an upper hand.

Yet most reporting on China’s influence in Southeast Asia rests on the assumption that the trends of the past decade will continue into the future. But it’s not clear that Chinese investment will keep growing at the same rate – or even faster – while America continues to fumble over how best to engage with Southeast Asia.

US Secretary of State Mike Pompeo (C) poses with Thailand's Foreign Minister Don Pramudwinai (L), Vietnam's Deputy Prime Minister and Foreign Minister Pham Binh Minh (2nd L), Malaysia's Foreign Minister Saifuddin Abdullah (2nd R) and Laos Foreign Minister Saleumxay Kommasith (R) for a group photo at the 51st Association of Southeast Asian Nations (ASEAN) - US Ministerial Meeting in Singapore on August 3, 2018. Photo: AFP/Roslan Rahman

China cannot rule out that in 2021 America could have a new president able to articulate and implement a more coherent policy towards Southeast Asia, nor that upcoming elections in Indonesia and possibly even Myanmar see the rise of anti-China candidates.

Neither can Beijing rule out that India won’t become a major player in the region, despite it so far failing to live up to expectations. A recent report by the Council on Foreign Relations, a US-based think tank, asserted that it can be “a more forceful counterweight to China and hedge against a declining United States.”

Moreover, there is great uncertainty over whether the South China Sea disputes pitting China versus the Philippines, Malaysia and Vietnam, among others, might at some point turn hot, which would significantly alter the region’s security approach in place since the 1990s.

China’s growing trade war with the US could also impact on its relations with the region. Some believe China could soon devalue its currency in response to the US-China trade war, though Beijing says it won’t.

Not only would a devalued renminbi make Chinese-made products cheaper, negatively affecting competing Southeast Asian exporters, it would also affect the region’s supply chains as Chinese buyers would be expected to demand cheaper prices. Few, if any, in the region would win from rounds of competitive currency devaluations.

But viewing China’s power in the region vis-a-vis America’s is only part of the picture. Japan, and to a lesser extent South Korea, are also major players and potential counterweights to China.

Since the 2000s, Japan’s infrastructure investment in the region has been worth US$230 billion, while China’s was about US$155 billion, according to recent BMI Research, an economic research outfit. The balance might tip in China’s favor with the US$1 trillion Belt and Road Initiative, but probably not for another decade or so, BMI projects.

Tokyo rarely boasts of its own soft power in Southeast Asia. Indeed, while Philippine leader Duterte’s overtures to China are among his major talking points, quietly it has been Japan, not China, that is funding his government’s ballyhooed major infrastructure programs.

Japan's Prime Minister Shinzo Abe (R) and Malaysia's Prime Minister Mahathir Mohamad shake hands during joint press remarks at Abe's official residence in Tokyo on June 12, 2018. / AFP PHOTO / POOL / Toshifumi KITAMURA

Japanese diplomacy towards the region falls somewhere between China and America’s. While Washington’s, at least past, insistence on human rights and democracy-building puts off to many regional countries, Beijing’s diplomacy is more laissez faire, as long as Chinese interests are protected by sitting governments.

Tokyo, by contrast, tends to practice quiet sustained diplomacy, decidedly in support of rule of law but without the threat of punitive measures if a partner government strays. That is likely one reason why there is little anti-Japan sentiment in the region and why its relations receive much less public attention.

Malaysia’s Mahathir, whose first trip abroad after May’s election win was to Tokyo, not Beijing or Washington, has recently spoken of Japan’s importance in regional affairs.

Mahathir shaped Southeast Asia’s approach to great powers during his previous tenure as Prime Minister from 1981-2003, and his belief that Japan can play an even larger role in regional affairs could soon be taken up by other regional governments.

“Specific Southeast Asian states are now seeking to diversify their strategic partnerships, beyond a binary choice between Beijing and Washington,” reads a recent report by the Council on Foreign Relations.

Mahathir’s apparent desire is for a more diversified regional network, similar to the hedging policies he promoted in the 1990s. Mahathir is certainly not pro-China, but neither is he pro-US.

What most Southeast Asian nations desire is not unipolarity but competition among many foreign partners that allows them to maximize benefits and negotiating leverage. When America and China, or Japan and India, compete to gain an economic and political footing, regional nations often win through the bidding.