Digital China – The (Middle) Kingdom of Cyberspace?

The Chinese presence in cyberspace is gathering speed, scope and mass. This was especially obvious during the “One Belt, One Road” Forum for International Cooperation that took place in Beijing on 14 15 May 2017. There, the Chinese government and companies and their counterparts from more than 69 Asian, African, American and European countries signed a myriad of deals, contracts and memorandum of understanding (Jean-Michel Valantin, “The “One Belt, One Road” Summit and the Chinese Shaping of the Globalization?”, The Red (Team) Analysis Society, June 5, 2017). A large part of these deals are related to the expansion of the Chinese New Silk Road in cyberspace, which thus becomes a medium and a support of the multi-areas Chinese grand strategy,.

For example, China’s telecom companies are committing their “full support” to “Digital Kazakhstan 2020”. In the same dynamic of technological and cyber development, the Ministry of Environmental Protection of the People’s Republic of China initiated the “Joint Initiative to Establish the International Coalition for Green Development on the Belt and Road” with the United Nations Environment Program, as well as the Belt and Road Environmental Cooperation plan, while setting up “the Big Data Service Platform on Ecological and Environmental Protection” (“List of Deliverables of Belt and Road Forum”, Xinhua.net, 2017-05-15). These measures are part of a larger set of initiatives, such as the negotiations between China, Russia and Japan to install a maritime fibre optic cable along the Siberian Northern Sea Route that links the Bering Strait and Asia to Europe through the newly opened corridor that follows the Siberian coast (Marex “Norway and China Friends Again“, The Maritime Executive, 2016-12-19).

Flag of the People's Republic of China

These different examples are just samples of the mammoth and expanding cyber dimension of China. The corresponding “re-shaping” takes place through the installation of the Chinese economy “in the middle” of an international network of exchanges of products and resources. The cyber dimension is aimed at reinforcing the centrality of China in the cyberspace as well as the interconnection between the member states of the “One Belt One Road” initiative and China. In other terms, China becomes the Middle Kingdom of the cyberspace.

In the first article of this series on the strategic consequences of the Chinese cyber development, we shall look at the way the actualization of the “digital sino-sphere” is in itself a transformation of the political status of China. We shall notably ponder if China is using the Internet to develop itself, or if China is building its own national sphere in the cyberspace? In other terms, could the digitalization of China be an extension of the Chinese nation in the cyberspace, and could the cyberspace be the support of a new evolution of the Chinese nation?

The digitalization of the Middle Kingdom

Tencent Headquarters – 2011 Design Competition Proposal by Wong Tung & Partners by By RonaldFNg (Own work) [CC BY-SA 3.0], via Wikimedia Commons

Within a few years time, China has become a “digital nation”. In 2016, the world number of internet users reached 3.6 billion, out of which more than 710 million were Chinese (against 590 million internet users for China in 2013). That number includes 656 million mobile users, out of which 250 million are already using 5G network (Simon Alexander, “The Rise of the Sinosphere and the Digital Silk Road”, DCX. Technology, February 2, 2017). In other terms, one Internet user out of five is a Chinese citizen. Observers of the growth of the Chinese Internet market estimate that this number is going to almost double during the coming decade (“Timeline: China’s Internet development”, ChinaDaily.com, 2016-11-15). Their evaluation can be supported, for example, by the success of WeChat, the Chinese social network created by Tencent. Launched in 2011, WeChat reached 253 millions users in August 2013 (Theo Merz, “WeChat passes 100 millions users outside China”, The Telegraph, 15 August 2013) and, in 2017, attracted more than 889 millions users per month (“2017 WeChat Users Behavior Report”, China Channel, April 25, 2017).

Tencent Seafront Tower, Nanshan District at the junction of Binhai Road and Baishi Road, Shenzhen, 9 April 2016, By Wishva de Silva (Own work) [CC BY-SA 3.0] via Wikimedia Commons

This Chinese social network can be used to chat, to exchange contents and to pay for products and services through mobile phone, with an extension on the World-Wide-Web. It also has more than 100 millions users in Asia. If this exponential rate of growth keeps on, the 1.4 billion strong population of China will be a collective user of WeChat in 3 or 4 years. Furthermore, in 2017, the WeChat company started to work on a search function that will assure an even more important presence of its hundreds of millions of users in the cyberspace. The overwhelming success of WeChat must be considered as inter-connected with the massive effort initiated by the Chinese government in order to develop the access by 80% the Chinese population to the Internet through fibre optic cables, in order to guarantee a growing broadband access to the population (“China eyes fibre optic use to expand communications systems”, Global Times, 2017/2/6).

This Internet development is deeply linked to the success of Chinese giant Internet companies, such as WeChat as we just saw, or Alibaba, the Chinese leviathan of online retail, as a positive feedback loop between Chinese customers, the Internet, the websites of the companies, the transport and distribution services as well as the massive proliferation of computers and mobile phones in the population is created. As a result, Alibaba saw the number of its active buyers rise from 133 million during the first quarter of 2012 to 454 million during the first quarter of 2017 (“Number of active buyers across Alibaba’s online shopping properties from 2nd quarter 2012 to 1st quarter 2017 (in millions)“, Statista, The Statistical Portal, 2017). The dimension of Alibaba may be better apprehended when compared to the 300 million users of Amazon.com, the online U.S. giant retail company, in the first quarter of 2017 (“120 Amazing Amazon Statistics and Facts (February 2017)”, DMR, 15 March 2017).

These are (strong) signals indicating the importance that must be given to the understanding of the Chinese Internet development strategy in considering notably the very Chinese meaning of this development, while linking it with the enormous challenges and opportunities related to the cyber development of China, as we shall now see.

From water history to digital development

Through giant companies such as Huawei, or Chinese Telecom, among others, and public organisations such as different ministries, China appears to be handling cyberspace as it handled other vital flows, such as water flows, during its long history.

Indeed, traditionally, the Chinese world vision diverges radically from the occidental one. In China, the basic principles, Yin and Yang, which are both antagonistic and complementary are spanning the whole universe, space included and their flow is in constant dynamic. Out of these principles flows the totality of the universe, i.e. the Sky, Earth, nature and humankind and their opposition make them transform into one another and thus permanently flowing. The opposition between these dynamic principles must carefully be “managed”, in order to maintain equilibrium in the human and natural world (Marcel Granet, La Pensée Chinoise, 1934). This dynamic and complementary opposition is also structuring the Taoist world vision, in which the Qi, the “matter energy” and the “Li” the principle of universal order, are different, entwined and must be nurtured and kept in harmony (Quynh Delaunay, Naissance de la Chine Moderne, L’Empire du Milieu dans la Globalisation, 2014).

In other terms, the Chinese “Weltanschauung” is centred around an understanding of the world as being a system of flows and these flows must be developed in order to develop the human society, which is not basically different from the rest of the universe, because it is moved by the same principles.

Portrait map of China

In very practical terms, this has led the Chinese to an understanding of their territory as being literally made of flows, like water that needs to be both used and respected, i.e. canalized in the most harmonious possible way.

The infrastructural and political mastery of water flows has indeed been a crucial and permanent feature of the multi-millennial Chinese history, as well as of its world vision (Philip Ball, The Water Kingdom, 2016). Furthermore water is also, from the Chinese point of view, part of the different dynamic elements that must be maintained into a state of evolving equilibrium. Water flows are of a vital importance for the development of agriculture, of rural and urban communities, and for transportation (Marcel Granet, La Pensée Chinoise, 1934).

The mastery of giant rivers such as the Yellow River, are a way of unifying and integrating the Middle Kingdom into one entity, despite its numerous regional, social and cultural disparities. In the same time, mastering the flow of water, from the very local to the national and international levels, is an absolute necessity because the flow of water can also become a dire threat, through excesses: not enough means drought, while too much means flood. In both cases, water catastrophes mean social, economic and human crisis and as such political crisis for a government that cannot protect its own people and that seems to be losing the “celestial mandate” (John King Fairbanks, Merle Goldman, China, a New History, 2006). This dynamic is even more important with the rapid urban and industrial development started at the end of the 1970s as exemplified by the construction of the infamous Tree Gorges dam, the largest hydropower project in the world (Brian Handwerk, “China’s Three Gorges Dam, by the numbers”, The National Geographic, June 9, 2006).

A good mastery of the flows of water and of the other flows shows that a carefully managed equilibrium between the natural world and the human world is cultivated, thanks to properly managed social, economic, and political activities, guided by the theosophical practices of Confucianism, Taoism and Buddhism (Quynh Delaunay, Naissance de la Chine moderne, L’Empire du Milieu dans la globalisation, 2014).

The notion of mastering water also refers to the notion of mastering the different kinds of flows and their interactions upon which depend the life of the Middle Kingdom. That is why the development of the mastery of water plays a central role throughout the history of China, with systems of irrigation, dams, sluice, canals. The different forms of the water mastery has been paramount for the success of agriculture, which is the foundation for population growth as well as for domestic trade, through the economic development of rural communities, as trade between communities and between provinces, are made easier by the use of waterways. Mastering water flows has thus an essential political function because it allows the biological, social and economic life of the Kingdom as well as its cohesion.

ThreeGorgesDam-China2009

This permanent quest for equilibrium and harmony is the very basis for the legitimacy of the Chinese political authorities, and has been qualified for a long time as the “Celestial Mandate”. This culture of material, social, and spiritual collective search for equilibrium turned China into a sustainable and largely self-sufficient and self-sustainable nation for thousands of years, despite important sequences of political turmoil, violence and war (John King Fairbanks, Merle Goldman, China, a New History, 2006).

This very careful control of water has given to the Chinese authorities, as well as to the population, an experience and a world vision in which the notion of flow, mastery of these flows and politics are going hand in hand. Because the cyber dimension has become a crucial part of the reality of the 21st century and, as a result, is of vital importance for people’s life and for the life of the whole Chinese nation, thus, from a Chinese political and social point of view, the mammoth development of the national cyberspace infrastructure is a necessity of the same importance and order as the mastery of the water flow.

Mastering the cyber flow

The necessity to master the cyber domain, which is understood, as explained more in terms of flows than in static terms of space, drives the creation of the infrastructures aimed at mastering this new ethereal and vital flow, upon which the social and economic life of life of numerous countries and of the great powers increasingly depend upon. As a result, the Chinese government, the Ministry of Security, the Chinese Internet companies and the Chinese telecom companies, combined with the millions of kilometres of fibre optic cables are forming a cyber nexus (“China’s Digital Transformation: The Internet Impact on Productivity and Growth“, Mc Kinsey Global Institute, 2014).

Meanwhile, the mammoth population of Internet users settles on the Internet, while using the Chinese language in order to exchange, thus creating de facto a singular community, which is also defined by its common world vision, representations and needs. Moreover, as seen, the logistical, electronic and software infrastructures of the Chinese presence in cyberspace is the result of a Chinese combined effort of the national political authorities and national companies. Thus, the combination of this state’s sponsored national endeavour with the mass created by the hundreds of millions of Chinese and the common national identity of the users turns the cyber presence of China into  a literal “cyber nation” (Hoo Tian Boon, “Xi’s speech illustrates China a Responsible Cyber Nation”, China Daily.com, 2015-12-17).

Shenzhen CBD and River

The Chinese cyber nexus and its cyber nation has an importance and a meaning that transcends the notion of network of networks, which has historically defined the Internet (Richard T. Griffiths, The History of the Internet, Internet for Historians (and just about everyone else), University of Leiden, 11 October 2002). It results, in fact, into the settlement of the Chinese nation in the cyberspace. In other terms, the Middle Kingdom installs its digital dimension “in the middle” of the cyberspace.

It is from this political perspective that we are now going to have to understand the Chinese strategy of cyber security known as the “Great Firewall” as well as the consequences of this digital development on the “One Belt, One Road” initiative, also known as the “New Silk Road” Chinese grand strategy, currently deployed worldwide.

About the author: Jean-Michel Valantin (PhD Paris) leads the Environment and Geopolitics Department of The Red (Team) Analysis Society. He is specialised in strategic studies and defence sociology with a focus on environmental geostrategy.

Featured image: Matrix by Tobias_ ET via Pixabay, CC0 Public Domain

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The “One Belt One Road” Summit and the Chinese Shaping of Globalisation?

On 14 and 15 May 2017, the “One Belt, One Road” (OBOR) Forum for International Cooperation took place in Beijing. It hosted delegations from 63 countries and several international organisations. Heads of states and governments led in person 29 delegations from Asia, Africa, South America and Europe (“Belt and Road Forum for International Cooperation”, Xinhua.net). The forum was intended as an occasion to bolster the Chinese initiative, through panels, workshops, high level roundtables, and meetings about continental infrastructures, energy and resources, financial cooperation mechanisms and sustainable development.

It must be noted that the UN General Secretary, the International Monetary Fund, the World Trade Organisation, the UNESCO, Interpol, the World Health Organisation, and the Wold Bank were all represented by their general directors and secretaries, while heads of states of international stature such as Russian President Vladimir Putin, or of large regional importance such as Turkish President Recep Tayep Erdogan were also present (“One Belt, One Road Forum for International CooperationWikipedia). In other words, the “OBOR Summit” was an impressive display of the worldwide Chinese influence.

The “One Belt, One Road” initiative is also known as the “New Silk Road” (NSR). This grand strategy, launched in 2013, aims at creating a land and maritime international transport, trade and finance Chinese infrastructure, which spans Asia, Russia, Europe, the Middle East, and Africa. SZ 深圳城市規劃展覽館 Shenzhen City Planning Exhibition Hall world map one belt band one road Jan 2017 Lnv2Its aim is to find international reserves of the resources and products necessary to the development and enrichment of China (Jean-Michel Valantin, “China and the New Silk Road – From oil wells to the moon … and beyond”, The Red (Team) Analysis Society, July 6 2015). This endeavour is deployed on such a scale that it becomes a new political, economic and strategic force in the globalized world, for the Chinese national interest.

In this article, we shall analyse how the OBOR Forum reveals the way China is shaping globalization, in a very singular way, based on a “low key” approach. This line of action creates influence through the construction of an international consensus about China’s needs, rather than seeing needs prompting the use of raw force.

The Summit: What is at stake?

The vast majority of the attendants were there to sign deals with China, in a wide array of fields, from transport, as for Poland and Russia, to higher education as for Serbia, Hungary and Mongolia, or oil, to name only a few. The forum was also used by International Organisations to promote their agendas. For example, the UN Secretary-General wished to see OBOR supporting the implementation of strategies to reach the sustainable goals that have become the UN roadmap, while other organisations and countries were signing energy and transport deals (“Antonio Gutteres (UN Secretary-General) remarks at the opening of the Belt and Road Forum (Beijing, China, 14 May 2017)UN Web TV).

Before the beginning of the Belt and Road international forum

As a result, the Chinese government signed an impressive list of deals and memoranda of agreements about “(Synergizing) Connectivity of Development Policies and Strategies, deepening Project Cooperation for Infrastructure Connectivity, (expanding) Industrial Investment, Enhancing Trade Connectivity, (enhancing) Financial Cooperation, (Promoting) Financial Connectivity, investing more in People’s Livelihood, (Deepening) People-to-People Exchange” (“List of Deliverables of the Belt and Road Forum for International Cooperation”, China Daily, 2017-05-16).

A particularly striking feature of the OBOR Forum is that it revives and modifies the meaning of the “Middle Kingdom”. The Chinese name for China, Zhong Guo (中国) – translated as “Middle” for Zhong and “Kingdom”, “Country” for Guo – has evolved throughout the millennia of Chinese history. Originally, it meant the place where the Emperor lived among its vassals, then it signified the central state of Xin, among other Chinese states. After the unification of the Empire, the “Middle Kingdom” became the Kingdom at the centre of other kingdoms. The centrality thus entailed also means that China is at a place that must be occupied to see guaranteed a kind of political and harmonious, equilibrium, meaning dynamic stability (Quynh Delaunay, Naissance de la Chine moderne, L’Empire du Milieu dans la globalisation, 2014).

Through this historical perspective on the political and geopolitical meaning of what it means for China to be the “”Middle” Kingdom”, it is interesting to note that the OBOR initiative locates China “in the middle” of a system of networks interwoven with the different national interests of the countries part of the Belt and Road, and with the international interests of the international organisation that have attended the summit. What is thus the strategic philosophy underlaying OBOR.

What is the strategic philosophy of OBOR?

The OBOR Forum gathered more than a third of all countries on Earth, thus demonstrating how China installs itself as a centre of attraction at the world level. In other words, the OBOR Forum reveals the success of the Chinese strategy, at a geoeconomic and political level. It has, furthermore, a deeply Chinese meaning, as also underlined above. It reveals the mammoth political clout accumulated by China, which becomes a de facto “attractor” for the countries and international organisations that have signed deals with Beijing during the Forum (Martin Jacques, When China Rules the World, 2012).

After Russian-Chinese talks2

The NSR initiative is a strategy aimed at ensuring the constant flow of energy resources, commodities and products, which are necessary to the current industrial and capitalist development of the 1,4 billion strong “Middle Kingdom” (Jean-Michel Valantin, “China and the New Silk Road – From oil wells to the moon … and beyond”, The Red (Team) Analysis Society, July 6 2015). Since 2013, China has been deploying the NSR initiative, which attracts the interest and commitment of numerous Asian, African and Middle Eastern countries. This international rush to Beijing for access to the Chinese market is further reinforcing the attraction of the New Silk Road, the latter also increasing in turn the appeal of the Chinese market. As a result, the New Silk Road becomes a self-reinforcing process at global scale.

One-belt-one-road

As we detailed previously, the New Silk Road is a new expression of the Chinese philosophical and strategic thought (Valantin, “China and the New Silk Road: the Pakistani strategy”, The Red Team Analysis, May 18, 2015). It is grounded in an understanding of the spatial dimension of China, in the geographical sense, as well as in a comprehension of the different countries that are involved in the deployment of the NSR. Space is conceived as a support to spread Chinese influence and power to the “outside”, but also to allow the Middle Kingdom to  “aspirate” what it needs from the “outside” to the “inside”  (Quynh Delaunay, Naissance de la Chine moderne, L’Empire du Milieu dans la globalisation, 2014). This is why we qualify some spaces as being “useful” to the deployment of the OBOR, and why each “useful space” is related, and “useful”, to other “useful spaces”.

Through this perspective, we understand that the Beijing summit has been a gathering of the delegates from the different “useful spaces” and thus a way to deepen the interconnections between them and the globalised “Middle Kingdom” that China is currently becoming.

Shaping globalisation through the Chinese power of need

There is another layer of geopolitical meaning that is attached to the New Silk Road Forum.

During his introductory speech, Chinese President Xi Jinping stated that, to be successful, the NSR initiative must be based on political cooperation, transport infrastructures’ connectivity, innovation and trade. As far as trade is concerned, With participants of the Belt and Road international forumPresident Xi further added that the NSR demands to “open [a] platform of cooperation and uphold and grow an open world economy” and to “uphold the multilateral trading regime, advance the building of free trade areas and promote liberalisation and facilitation of trade and investment » (President Xi Jinping “The Belt and Road Forum for International Cooperation”, China.org.cn, May 14, 2017).

It is interesting to note that this declaration is a Chinese appropriation of the way the globalisation process has been defined by the U.S. government during the 1990s, while Washington was promoting a worldwide free trade and globalisation, in order to develop a U.S. strategy based on the “shaping of the world”, meaning a shaping of international norms as well as trade and financial flows organised for the economic success of the United States (William J. Clinton, President of the United States of America, “Address Before a Joint Session of the Congress on the State of the Union, January 19, 1999, The American Presidency Project). As the U.S., China promotes free trade outside its frontiers, while remaining cautious and keeping on being carefully protectionist as far as its own economy is concerned (Douglas Bulloch, “Protectionism May Be Rising Around The World, But In China It Never Went Away“, Forbes, October 12, 2016).

Thus, the OBOR Forum reveals how China’s grand strategy establishes the globalisation process itself as a “useful space”, because the international liberalisation of space is an important asset for the Chinese economy. However, if liberalisation is “useful” to open economic spaces to the Chinese exports, it is also useful to multiply imports deals and thus “channel” to China those resources and products that are useful to the Middle Kingdom. In other words, China installs itself “in the middle” of globalisation. If the U.S. started the globalisation process of “shaping the world”, it appears that China is currently shaping globalisation.

This will most certainly have important consequences in terms of the international distribution of power.

About the author: Jean-Michel Valantin (PhD Paris) leads the Environment and Geopolitics Department of The Red (Team) Analysis Society. He is specialised in strategic studies and defence sociology with a focus on environmental geostrategy.

Featured image: Roundtable meeting of leaders at Belt and Road international forumMay 15, 2017 Beijing by Russian Presidential Press and Information Office, Kremlin. CC.0.4.

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Saudi Arabia and the Chinese New Silk Road

During March 2017, King Salman of Saudi Arabia ended a six weeks tour in Asia with a state visit in China and a meeting with Chinese President Xi Jinping. This visit included the opportunity to start the negotiations about the integration of Saudi Arabia to the Chinese New Silk Road Grand strategy (Michael Tanchum, “Saudi Arabia the next stop on China’s maritime silk road”, East Asia Forum, 22 March 2017).

This move corresponds to a convergence of the Chinese grand strategy with the “Saudi Vision 2030”, and seems to be the start of a “Saudi-Asian pivot”, which has important geopolitical consequences. This is a massive international power shift, because it supports the meeting of Saudi and Chinese strategic interests.

Saudi-Arabien-Pos in AsienIn effect, the Arab mammoth oil producer looks for ways to diversity its economy and its alliances, while China looks for ways to satisfy its huge energy needs (Michael Klare, The Race for What’s Left, 2012). To this end, China extends the New Silk Road (NSR) to new countries, already succeeding with other Gulf countries, such as the UAE and Kuwait.

The specificities of the Chinese NSR and of the novel grand strategy devised by Saudi Arabia create and deepen the existence of converging strategies for the two countries, as we shall explore here. As we previously did for the UAE (Jean-Michel Valantin, “The UAE and the Chinese New Silk Road”, The Red (Team) Analysis Society, April 24, 2017), we are going to focus first on the reason why and the way the Chinese New Silk Road and the Saudi grand strategy converge, as well as on the geopolitical meaning of this convergence. We shall also look at the way that confluence supports the emergence of a new kind a sustainable security for both countries.

The Sino-Saudi convergence of strategies

The Sino-Saudi relations are established since 1990. China opened a representation in the Saudi Kingdom while the Cold War was ending (Wang Jin, “China and Saudi Arabia: a new alliance?”, The Diplomat, September 02, 2016). From the 1990s onwards, crude oil exports from the Kingdom to China has been instrumental in the relationship between the two countries. Things are, however, now changing, especially in regard to the Chinese New Silk Road.

This evolution is made obvious with the enormous 65 billion dollars Sino-Saudi investments and trade package signed during the meeting in Beijing between King Salman and President Xi Jinping (Salman Al Dossary, “King Salman in China: the New Silk Road”, Asharq Al Aswat, March 2, 2017). This package includes a memorandum of understanding between Saudi national oil corporation Aramco and China North Industries Satorp Jer Refinery, Jubail - panoramioGroup Corporation, in order to build two refineries, one in the Chinese Fujian province, and one in Yanbu in Saudi Arabia. These refineries will further improve the petrochemical capacity of this Saudi port-city located off the Red Sea coast (Michael Tanchum, “Saudi Arabia the next stop on China’s maritime silk road”, East Asia Forum, 22 March 2017).

This move is quite important for Saudi Arabia. Indeed, Saudi Arabia is the first oil supplier for China – almost 67% of China’s oil import has its origin in the Saudi Kingdom, while China is the main destination country for all Saudi exports ( Daniel Workman, “Crude oil imports by countries”, WTEx, March 14, 2017), and the Kingdom intends to secure its share of the Chinese oil market. In this regard, Saudi Arabia competes with Iran and Russia, which are also answering the growing oil needs of China (Jean-Michel Valantin, “The Russian Arctic meets the Chinese New Silk Road”, The Red (Team) Analysis Society, 31 October, 2016 and “Iran, China and the New Silk road”,The Red (Team) Analysis Society, January 4, 2016). It must be noted that those very countries have already developed deep ties with China.

The construction of Sino-Saudi refineries in China and in Saudi Arabia is in itself a strategic evolution, because, for China, the increase in petrochemical capabilities is absolutely necessary to answer its needs not only in crude oil, but also in oil products, for combustion engines and for the chemical industry (Manan Goel, “Vast majority of 7.1m bpd of new distillation capacity to come from Middle East, China and wider Asia-Pacific », Khaleeji Time, May 7, 2016).

Pollution over east China

Moreover, the Chinese political authorities are committed to a national energy transition, in order to alleviate the importance of coal in the Chinese energy mix. Indeed, coal ash severely pollutes not only the air, but also the water, and endangers agriculture and collective health, thus becoming for China a national health and political issue (Joseph Ayoub, “China Produces and Consumes almost as much coal as the Rest of the World Combined”, Today in Energy, US Energy Information Administration, May 14, 2014 and Jonathan Kaiman, “China’s toxic air pollution resembles nuclear winter, say scientists“, The Guardian, 25 February 2014).

From the Chinese point of view, integrating Saudi Arabia to the New Silk Road initiative is a major geopolitical step. The New Silk Road, also known as “One Belt, One Road” (OBOR), is a strategy aimed at ensuring the constant flow of energy resources, commodities and products that are necessary to the current industrial and capitalist development of the 1,4 billion strong “Middle Kingdom” (Jean-Michel Valantin, “China and the New Silk Road – From oil wells to the moon … and beyond”, The Red (Team) Analysis Society, July 6 2015). Since 2013, China has been deploying the NSR initiative, which attracts the interest and commitment of numerous Asian, African and Middle Eastern countries.

As we detailed previously, the New Silk Road is a new expression of the Chinese philosophical and strategic thought (Valantin, “China and the New Silk Road: the Pakistani strategy”, The Red Team Analysis, May 18, 2015). It is grounded in an understanding of the spatial dimension of China, in the geographic sense, as well as in a comprehension of the different countries that are involved in the deployment of the NSR. Space is conceived as a support to spread Chinese influence and power to the “outside”, but also to allow the Middle Kingdom to  “aspirate” what it needs from the “outside” to the “inside”  (Quynh Delaunay, Naissance de la Chine moderne, L’Empire du Milieu dans la globalisation, 2014). This is why we qualify some spaces as being “useful” to the deployment of the OBOR, and why each “useful space” is related, and “useful”, to other “useful spaces”.

A fundamental “geographic useful space” for China is the Persian Gulf and its member states. As a result, Saudi Arabia is de facto of great interest for the New Silk Road Initiative. In this conceptual framework, Saudi Arabia becomes a useful space for the NSR not only because it increases the Saudi capabilities to respond to the Chinese energy needs, but also because it furthers the opening of the maritime New Silk Road to the Red Sea, thanks to the Saudi ports, as Yanbu and Djeddah. In other words, it improves the access of the Chinese civil fleet to the Red Sea, then to the Suez canal and thus to the Mediterranean markets of the Middle East, the Near East, the Maghreb and Southern Europe.

Geopolitical meaning

The integration of Saudi Arabia to the NSR has powerful geopolitical consequences for both countries. For China, the fact that the Saudi Kingdom joins its grand strategy installs China even more strongly as the centre of attraction for Gulf Countries (Jean-Michel Valantin, “The UAE and the Chinese New Silk Road”, The Red (Team) Analysis Society, April 26 2017). This confers a mammoth political clout to China, which becomes a de facto “balancing influence” between the Gulf uneasy neighbours and energy actors, and between OPEC and non-OPEC oil producers such as Russia, as all want to be involved with China’s growth, while competing with each others (Martin Jacques, When China Rules the World, 2012). This international competition for the access to the Chinese market is always reinforcing the attraction of the New Silk Road.

For Saudi Arabia, integrating the New Silk Road, which has already reached out to more than twenty countries, especially in Asia and the Middle East, is tantamount to an “Asian pivot”.

Furthermore, to the least, it allows for the creation of some political and economic distance between USAF F-16A F-15C F-15E Desert Storm edit2the Kingdom and the United States. Given the importance of the U.S. for Saudi Arabia since 1944, when an alliance was struck between King Abdulaaziz Saud and President Roosevelt, according to which the U.S. committed themselves to the defence of the Kingdom in exchange for a privileged partnership on oil, this move must be decrypted (Michael Klare, Blood and oil, the dangers and consequences of America’s growing dependency on imported petroleum, 2004).

A key to understanding what is happening lies in the U.S. energy policy that supports the development of shale oil and gas operations and, as a result, competes with the Saudi production while forcing energy prices down. The U.S. becoming an economic threat, the Kingdom finds new alliances to support its development through its economic strategy of diversification (Jean-Michel Valantin, “Oil Flood (1): The Kingdom is Back” and “Oil Flood (2)- Oil and Politics in a (Real) Multipolar World”, The Red (Team) Analysis Society, December 15, 2014, January 12, 2015). For now, the military component of the alliance with the US remains as it is, because Saudi Arabia remains a main oil exporter for America.

Djibouti and the Grand convergence

The “Saudi-Asian pivot” finds an interesting expression through the building of a Saudi naval base in Djibouti, which already hosts French and American bases, while China is completing the construction of its own naval base (Jean-Michel Valantin, “Militarizing the Maritime New Silk Road – in the Arabian Sea”, The Red (Team) Analysis Society, April 19, 2017).

In the same time, Japan is starting the construction of a naval base of its own (Julian Ryall, “Japan to expand military base in Djibouti”, Jane’s 360, 14 October 2016). In other terms, Djibouti is now the place that supports the “African and Middle East pivot” of China and Japan, and the “Asian pivot” of Saudi Arabia. The presence and influence of France and America is thus relatively saturated and diluted by the spatial convergence of the NSR in their immediate neighbourhood, while Saudi Arabia – also using reciprocally the NSR – and Japan prepare their own forms of projection towards respectively Asia and the Mediterranean world.

One of the potential fundamental geopolitical uncertainty generated by this development is how other strategic Middle East countries, especially Egypt, which owns the key access to the Mediterranean Sea through the Suez Canal, are going to position themselves as far as the Chinese New Silk Road is concerned.

About the author: Jean-Michel Valantin (PhD Paris) leads the Environment and Geopolitics Department of The Red (Team) Analysis Society. He is specialised in strategic studies and defence sociology with a focus on environmental geostrategy.

Featured image: One Belt, One Road – China in Red, the members of the Asian Infrastructure Investment Bank in orange. The 6 proposed corridors in black, 14 May 2017, by Lommes (Own work) [CC BY-SA 4.0 ], via Wikimedia Commons.

Evaluating Likelihoods for Libya – Scenario 2 Increased Spillover and Partition

Featured image: Operation Triton by Tomh903 [CC BY 2.0], via WikimediaAs we discussed in the previous article, intervention and spillover are already occurring—thus we determined the likelihood of three partition scenarios occurring in the midst of intervention and spillover was highly unlikely. In this article, we shall discuss the organization, indicators, and likelihood of the various spillover scenarios occurring both in the event of partition and without partition. When discussing the potential directions of spillover, north refers to Europe; east refers to Egypt; south refers to Niger and Chad; and west refers to Algeria and Tunisia.Note: In the following article, we shall use the acronym COR for the Council of Representatives (nationalists), GNC for the General National Congress (Islamists), and GNA for …

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The Battle of Raqqa, the Kurds and Turkey

This article focuses on the evolution of the balance of forces on the battlefield, notably for the Kurds, mainly in Syria but also in Iraq, one of the multiple layers of interactions that must be considered around the battle of Raqqa against the Islamic State. It is part of a series aiming at deciphering the various factors at work that will shape the outcome of the battle of Raqqa and thus impact the future. Such factors must be considered for scenarios as well as monitored for warning, notably by being included in corresponding mapping.The offensive against the Islamic State is progressing in the governorate of Raqqa. However, the outcome will not only be a more or less rapid victory against a crucial …

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The UAE and the Chinese New Silk Road

The United Arab Emirates (UAE) and China are negotiating, at the highest level, the integration of the UAE into the Chinese New Silk Road (NSR) initiative, also called the “One Belt, One Road” (OBOR) initiative (Sarah Townsend, “UAE and China “working to restore silk road trading route””, Arabian Business.com, 13 December 2015). This move corresponds to the convergence of the Chinese and Emirati grand strategies. This confluence is based on an already thriving relationship between China and the UAE, which represents one-fifth of the Sino-Arab trade for the Gulf countries, with China being the UAE’s second import partner after India (Muhammad Zulfikar Rakhmat, “The UAE and China’s thriving partnership”, Monthly Monitor Report, A Gulf States Analytics Report, June 2015).

Beyond these more “classical” relationships, the specificities of the Chinese NSR and of the novel grand strategy devised by the UAE create and deepen the existence of converging strategies for the two countries as we shall explore in this article.

TC-Map

We are going to focus on the reason why and the way the Chinese New Silk Road and the UAE grand strategy converge, as well as on the geopolitical meaning of this convergence. We shall also look at the way that confluence supports the emergence of a new kind a sustainable security for both countries.

The Sino-Emirati convergence of strategies

Since 1984, the political and commercial links between China and the UAE have not stopped growing. As Chinese banking, business and finance companies have invested in the UAE and opened offices there, Emirati companies have similarly invested in China and opened offices in Beijing, Shanghai, Hong Kong, among others (Rakhmat, ibid).

In order to deepen these ties and allow then to benefit further from the growth of the Chinese economy, the UAE and China have even signed a currency swap in 2013 for 35 billions Yuan, which allows for the use of the Chinese currency in petroleum transactions (April A. Herlevi, “China and the United Arab Emirates: Sustainable Silk Road Partnership? », The Jamestown Foundation, China Brief Volume, January 25, 2016). This is quite a change for the Persian Gulf, where the petrodollar has literally been invented (Georges Corm, Le Proche-Orient éclaté, 2012).

Meanwhile, the UAE is aware that its current model of development needs too much water and energy for being sustainable in the long run, while its oil reserves are Sh5-zayed-roadlimited and will disappear over the next forty years (“Sheikh Mohammed bin Zayed inspirational view of a post-oil UAE”, The National, February 10, 2015). In order to answer these challenges, the UAE thus designs a national grand strategy, based on the industrial and financial development of renewable energies and on nuclear and space politics, at a national and international level (Jean-Michel Valantin, “The UAE Grand strategy for the future- From Earth to Space”, The Red (Team) Analysis Society, July 4, 2016.

On the Chinese side, the New Silk Road, also known as “one belt, one road”, is a strategy aimed at insuring the constant flow of energy resources, commodities and products that are necessary to the current industrial and capitalist development of the 1,4 billion strong “Middle Kingdom” (Jean-Michel Valantin, “China and the New Silk Road – From oil wells to the moon … and beyond”, The Red (Team) Analysis Society, July 6 2015.

For example, the energy and water technology and capabilities developed by the UAE are of great interest for China, given the needs of China in these fields, which enhances the strategic convergence between the two countries, because the UAE development also benefits from the Chinese dynamics.

Since 2013, China is deploying the NSR initiative, which attracts the interest and commitment of numerous Asian, African and Middle Eastern countries.

As we detailed previously, the New Silk Road is a new expression of the Chinese philosophical and strategic thought (Valantin, “China and the New Silk Road: the Pakistani strategy”, The Red Team Analysis, May 18, 2015). It is grounded in an understanding of the spatial dimension of China, in the geographic sense, as well as in a comprehension of the different countries that are involved in the deployment of the NSR. Space is conceived as a support to spread Chinese influence and power to the “outside”, but also to allow the Middle Kingdom to  “aspirate” what it needs from the “outside” to the “inside”  (Quynh Delaunay, Naissance de la Chine moderne, L’Empire du Milieu dans la globalisation, 2014). This is why we qualify some spaces as being “useful” to the deployment of the OBOR, and why each “useful space” is related, and “useful”, to other “useful spaces”. A fundamental “geographic useful space” for China is the Persian Gulf and its member states. That is why the UAE is de facto of great interest for the New Silk Road Initiative.

Furthermore, as pointed out above, the UAE grand strategy is based upon the interaction between sustainability and security through the transition from oil and gas Barakah 2013-01-29 1to the development of a renewable and nuclear energy industrial basis. This strategy is linked with the water scarcity issue in an arid country with a rapidly growing population and an urban infrastructure (Nick Carter, “Even as we generate more in the UAE, we must protect our water and power supplies”, The National, August 3, 2014). It also means that the UAE is becoming a main driver of the transformation of the very notion of the link between sustainability, security and geopolitics (Jean-Michel Valantin, « “The United Arab Emirates, The Rise of an industrial sustainable industrial empire?”, The Red (Team) Analysis Society, June 13 2016.

As a result, the current oil and gas resources of the UAE, its development of a powerful renewable energy industry, added to the UAE geographic location on the southern coast of the Persian Gulf turns the UAE into a strategic partner for the Chinese New Silk Road.

In effect, the Chinese strategy is aimed at creating a planetary-wide “attraction system” from the outside to China. It is necessary to channel in the mineral, energy, and food resources needed by China in order to keep developing itself, while ensuring the social cohesion of its 1.400 billion strong population (Loretta Napoleoni, Maonomics, 2011 and Dambisa Moyo, Winner take all, China’s race for resources and what it means for us, 2012). This energy Chinese need turns the oil and gas of the UAE into a powerful attractor in order to answer to their present needs and thus guarantees the access for the UAE to the Chinese market and thus supports its current development and its clean energy transition strategy.

The geopolitical meaning of the Emirati-New Silk Road convergence

From the Chinese “One Belt, One Road”’s point of view, the UAE is a major geopolitical asset, because of its location and its harbour capabilities. Indeed, the “One Belt, One Road” aims also at creating a network of national and regional spaces that are tied to the different maritime and land Chinese entry points (Jean-Michel Valantin, “Militarizing the Chinese New Silk Road Part (Part1)”, The Red (Team) Analysis Society, March 13, 2017). However, the interest is not one-sided, on the contrary. The two countries become tied together both by their common interest in supporting the development of China and by the relationships they can develop with each other (Deng Yaqing, “A shared path”, The Beijing Review, July 10, 2014).

This convergence of the UAE and the NSR is not a simple new political layer in the UAE-China relationships. In fact, it reorientates it in a significant way, because it turns the UAE into a new part of this Chinese international economic life support system. This means that this new “UAE segment” is going to interact not only with China, but also with other parts, i.e. with other “useful spaces” of this system (Jean-Michel Valantin, “Militarizing the Maritime New Silk Road (2)- in the Arabian Sea”, The Red (Team) Analysis Society, April 3, 2017).

Being located in the Persian Gulf, being an important oil and gas producer and exporter, and having important harbouring installations, the UAE becomes de facto a useful space of the maritime New Silk Road that links with the Pakistani harbour of Gwadar, bought by China on the Arabian Sea, (Valantin, “China and the New Silk Road: the Pakistani strategy”, The Red Team Analysis, May 18, 2015), as well as with the port of Djibouti where Chinese companies and military are building a naval base (Shannon Tiezzi, “China’s “Maritime Silk Road”: don’t forget Africa”, The Diplomat, January 29, 2015).

For the UAE, being a member of the NSR also means benefitting from the Chinese diplomatic capabilities when it comes to its relations with its powerful Iranian and Ali Khamenei receives Xi Jinping in his house (6)Saudi close neighbours. In effect, it must be noted that Iran is integrated into the NSR, and is developing trade, energy and military relationships with China as well as with Pakistan. For China the very philosophy of the NSR is to help these countries to maintain constructive relationships for their mutual benefit, so that they are lastingly able to support China’s development (Jean-Michel Valantin, “Iran, China and the New Silk Road”, The Red (Team) Analysis, January 4, 2016 and (“Iran, China seal New Silk Road deal”, Press TV, 31 October, 2016).

Thus, a new geopolitics emerges, based on the China’s need as the foundation for an international partnerships between the UAE’s national interest and China’s national interest, which is currently defined by the immense needs driving Chinese growth. This partnership is highly political, because both governments are interlocking their future and their legitimacy through this strategic partnership.

Sustainability and security

Also of strategic importance, being a member of the NSR supports the UAE strategy of economic diversification and of development of a renewable energy industry, influential on an international scale. Economic diversification is of the utmost importance for the UAE, in order to prepare the country for its coming peak oil, while maintaining a thriving economy. The UAE political authorities being deeply aware of the coming end of their oil reserves during the coming decades, the cooperation with China supports both their current oil and gas industry, while supporting the preparation for their energetic transition, as well as their economic diversification (Dania Saadi, “Economic diversification and Expo 2020 to shield Dubai from oil price rout », The National, June 26, 2016).

The UAE works at becoming a clean energy giant, hosting for example the International Renewable energy Agency (IRENA), while China is unleashing an investment capability worth 360 billion dollars for clean energy projects in China and around the world (Fortune editors and Reuters, “Here’s How Much Money China Is Throwing at Renewable Energy“, Fortune, January 5, 2017. In other words, China and the UAE are both working together at redefining geopolitics in terms of energy transition, as a new pillar of national security.

Reciprocally, the Chinese energy demand is such that China has become the world leader on the renewable energy market (Marlow Hood, “China takes global lead in clean energy: report“, Phys.org, January 7, 2017).

The Chinese and Emirati common interest thus converges and creates a strategic relationship through actions aiming at securing the future development of both countries, as, for example, the creation in 2016 of the Joint Strategic Investment Fund. This fund is aimed at supporting the co-development of oil and gas exploration and exploitation. It will also support the construction of transport infrastructures along the New Silk Road and the development of clean energy (“Belt and Road initiative boosts green energy along New Silk Road », Xinhua, 2017-01-18).

This dynamic is especially Ruwais(UAE) with blue water towerssupported and exemplified by Dubai, which plans to produce 25% of its energy output from renewable in 2025 and 75% in 2050. That is why, for example, the Dubai electricity and water agency (DEWA) develops close ties with leading Chinese companies in this field (“DEWA visits China to boost energy projects in the UAE and Dubai”, Government of Dubai, 1 May 2016).

The energy-water nexus issue and its technological challenges is especially important for a country that is a regional power and needs to guarantee its post-oil future in a region dominated by oil and, more and more, by the attraction created by the Chinese “power of need”. It is also important for China that seeks ways to guarantee its new phase of economic and social development in a world where cheap oil resources are finite. Thus, the integration of the UAE to the Chinese New Silk Road is nothing but the convergence of two development grand strategies in a world of limited resources (Dennis and Donnella Meadows, The Limits to growth – the 30 years update, 2004, Michael Klare, Rising powers, shrinking planet, 2008, and The Race for What’s left, the global scramble for the World’s last resources, 2012).

However, by integrating the New Silk Road, the UAE is also becoming involved into the adverse reactions the Chinese system of attraction is, too, starting to trigger.

We shall look at these reactions and their effects not only on China, but on the network of the New Silk Road in coming articles.

About the author: Jean-Michel Valantin (PhD Paris) leads the Environment and Geopolitics Department of The Red (Team) Analysis Society. He is specialised in strategic studies and defence sociology with a focus on environmental geostrategy.

Featured image: Abu Dhabi 2013 by Валерий Дед [CC BY 3.0 (http://creativecommons.org/licenses/by/3.0)], via Wikimedia Commons.

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