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Official Trump Does East Asia Thread


FanboyOf91

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9 hours ago, visionary said:

 

 

Have to admit that I'm trying to figure out why China would be actually imposing some sanctions on NK.  (Especially coal, which I suspect China actually uses to "fuel" their economy, at least some.)  

 

My US-centric viewpoint makes me wonder if Trump has something to do with it.  But I'm also having trouble seeing how he could have caused what looks like good news, to me.  

 

Color me as puzzled.  (And wondering if I should be more paranoid.)  

 

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http://www.bbc.com/news/world-asia-china-39000681

 

This is at least BBC's take on the situation.

Quote

And the apparent assassination of Kim Jong-nam - the half brother of North Korea's brutal leader - is being seen as a fresh point of tension between these official allies.

In fact, some view it as direct slap in the face for China.

. . . .

But for China there was something else too. He was an ally inside the North Korean elite: somebody who thought the best way forward for his homeland was a Chinese-style opening up.

Substitute leader?

For years, China has been trying to promote this style of thinking with its isolated, impoverished neighbour.

Before he died, Kim Jong-il was shown around the prosperous Chinese city of Dalian. The message: "You too could have some of this at home with a bit of opening up!"

But the Kim dynasty has appeared petrified by the prospect of such openness, and that Kim Jong-nam would side with the Chinese.

So despite his apparent lack of interest in political power, the fact that he could be seen hanging around down in Macau as a possible leader to be called on by Beijing in the event of regime collapse in Pyongyang made him a threat to the paranoid figure in power there today.

If this was a political assassination, then most North Korea observers think the order came right from the top.

 

The article argues that there is a US component to this as well (although it doesn't really involve any particular administration)

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At a social function run by the Chinese military recently, I was speaking to a Chinese officer about the US demand that they do more to bring pressure on North Korea.

He shrugged his shoulders. He said they didn't know what the North Koreans would do next and that they had no idea what China could do to change their minds.

Yet by far and away the vast majority of trade in and out of the DPRK (Democratic People's Republic of Korea), as the country prefers to be called, is with China. If you take Chinese trade out of the equation there's not much left.

So why would Beijing put up with all this? Why put up with the waves of instability flowing out of Korean peninsula?

The answer is US troops.

 

It's often said that a meltdown in North Korea could lead to millions of refugees pouring into China but, even if this did happen, it would likely only be a temporary problem.

No. The real fear is that a complete collapse of the North Korean regime could lead to Korean unification, with American soldiers based in a country with a land border with China.

Beijing will not let that happen and Pyongyang's current ruler, Kim Jong-un, knows it.

So no matter how many times North Korea drives its powerful protector to distraction, in the end, Beijing believes it doesn't have much choice but to put up with its weirdness, with its basket-case economy, with its erratic behaviour and probably also with its pursuit of nuclear weapons.

 

I don't particularly agree with this view.  If the Koreas unite, I actually think South Koreans will eventually call for US troops to leave.  The increasing role of China in South Korean economy is causing increasing political difficulties for US interests in Korea, as evidenced by unpopularity of Korean cooperation to THAAD defense system installation in Korea.  While US economic interests are still very powerful in Korea, Chinese economic interest can be much more visible to the average citizen in the form of things like massive tourist spending and acquisition of real property.

 

This is what is overlooked in deals like TPP.  There is a very strong foreign influence component to it.  South Koreans were very unhappy at the perception that they were muscled out of being a primary TPP partner by Japanese influence and the subsequent breakdown of TPP with China flexing their economic muscle over THAAD has left many Koreans with the impression that they may need to pick a side very soon and the, at least seemingly, hostile US under Trump administration may not be the wise choice. 

 

I actually think China is looking for the right set of circumstances and timing to allow NK to fail.  It is speculated that NK has a large reserve of rare earth material used in advanced technology manufacturing (some speculate size matching 2/3 of known reserves).  China already controls significant part (some say 90%) of known reserves.  If NK regime were to topple now, China would have a very difficult time exerting heavy influence in the aftermath because South Korea would have the political justification and US backing to reunite with NK.  If China can continue to increase its ties and influence with South Korea, there may come a time when toppling of NK would at least mean that South Korea would be amenable to making NK a joint development zone where China would be the primary partner.  Also at stake is the undersea natural gas reserve positioned between South Korea and Japan, which is one of the largest known natural gas reserve.  Japan and South Korea has agreed not to unilaterally develop the reserve due to territorial dispute, but that agreement will expire in the coming years.  China could position themselves to get in the dispute and call for a joint economic development.  Right now, Japan's positioning of the Yen will not allow for such flagrant disregard of US influence, but time heals all wounds and if US ever diminishes its influence in the region, China's long game may end up paying huge dividends.

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4 hours ago, Larry said:

 

Have to admit that I'm trying to figure out why China would be actually imposing some sanctions on NK.  (Especially coal, which I suspect China actually uses to "fuel" their economy, at least some.)  

 

My US-centric viewpoint makes me wonder if Trump has something to do with it.  But I'm also having trouble seeing how he could have caused what looks like good news, to me.  

 

Color me as puzzled.  (And wondering if I should be more paranoid.)  

 

 

The victim was explicitly under Chinese protection, and NK's recent ballistic missile launch is helping SK politicians convince the public that THAAD is a good thing despite Chinese objections.

 

Basically, it's trying to brings some discipline back to NK in its (subservient) relationship with China.

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These events are all happening as Sri Lanka is in a dire debt situation. As of the end of last year, Sri Lanka’s debt was pegged at $65 billion — $8 billion of which was owed to China. This was good for a debt-to-GDP ratio of around 75%, and 95.4% of all government revenue was reportedly going towards debt repayment. After taking out a loan of $1.5 billion from the IMF to stay afloat in 2016, the international lending institution has been putting a large amount of pressure on Sri Lanka to right its economic trajectory by cutting deficits, bolstering its foreign exchange reserves, and acquiring more tax revenue. The $1.1 billion from China for Hambantota port was intended to go towards partially remedying this financial situation.

 

But this financial relief is not coming anytime soon. Beijing is delaying the debt-for-equity transfer and investment in the industrial zone until Sri Lanka can sort out its mess.

Daily reminder that China can't win unless we allow it.

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