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Generational Dynamics World View
*** 19-Nov-18 World View -- APEC meeting ends in disarry after harsh US-China disagreements

This morning's key headlines from GenerationalDynamics.com
  • APEC meeting ends in disarry after harsh US-China disagreements
  • Aggressive behavior of China's officials raises concerns about security

****
**** APEC meeting ends in disarry after harsh US-China disagreements
****


[Image: g181118b.jpg]
Xi Jinping and Mike Pence

Four days ago, I described the approaching meeting of the Asia-Pacific
Economic Cooperation (APEC) Leaders’ Summit, being held in Port
Moresby, the capital city of Papua New Guinea (PNG) over the weekend
as a competition for influence between China and Australia.

There was indeed such a competition, but it was the competition
between China and the US that made the biggest news. The media
were predicting that the US presence would be almost minimal
because president Donald Trump was not going to attend.

But in Trump's place was vice president Mike Pence who spoke very
harshly about China's Belt and Road Initiative (BRI), and its use of
debt trap diplomacy in infrastructure projects that were intended to
benefit China more than the countries that are being put into debt.
The result was that for the first time ever, the APEC meeting ended
with no joint communiqué.

Pence's speech included a joke about "a constricting belt or a one-way
road":

<QUOTE>"Too often they come with strings attached and lead to
staggering debt. Do not accept foreign debt that could compromise
your sovereignty. Just like America, always put your country
first. ...

Know that the United states offers a better option. We don't
drown our partners in a sea of debt. We don't coerce or
compromise your independence. The United States deals openly and
fairly. We do not offer a constricting belt or a one-way road.

When you partner with us, we partner with you. and we all
prosper."<END QUOTE>


China's president Xi Jinping spoke before Pence did, but he
responded to much of what Pence said:

<QUOTE>"Mankind has once again reached a crossroads. Which
direction should we choose - confrontation or cooperation?
Openness or closing one's door? Win-win progress or zero sum
game. The interest of all countries and the future of mankind
hinge on the choices that we make. ...

Let me make this clear. The Belt and Road Initiative is an open
platform for cooperation. It is guided by the principles of
consultation and cooperation for a share of the benefit. It is
not designed to assure any hidden geopolitical agenda. It is not
targeted against anyone, and it does not exclude
anyone."<END QUOTE>


China has been losing a great deal of credibility over debt trap
diplomacy because more examples keep emergency. Everybody has now
heard of the Seaport of Hambantota, a Chinese infrastructure project
in Sri Lanka, funded with a loan from China, with almost all the labor
performed by Chinese workers, and all parts and services imported from
China, so that the loan money never benefited Sri Lanka's industries.
Sri Lanka was unable to repay the loan, and in December of last year,
Sri Lanka was forced to give the seaport away to China. So now Sri
Lanka has a large seaport owned by China, and a large Chinese enclave
with hundreds of Chinese families, with no benefit to itself and to
its own people.

China's loans and aid in the Pacific region have gone from almost zero
to $1.8 billion in the last decade, and China has pledged to spend $8
billion more.

Fiji owes China half a billion dollars, and Tonga now owes more than
$160 million, or one-third of its GDP. Several other Pacific Island
countries are also overwhelmed with debt to China.

There has been major drama involving China and Tonga in the last few
days. Tonga has been begging China for relief from its debts for
several months, with no success. But then a few days ago Tonga's
prime minister called on the Pacific Islands to band together against
China. Tonga backtracked on this call within a few days, but the
reasons were unclear. And then it emerged on Sunday that China was
granting Tonga a five-year reprieve in paying back the loan.

As part of that announcement, China will lend Tonga more money for yet
another BRI infrastructure project. Reuters and Australian Broadcasting (16-Nov) and BBC and Australian Broadcasting

****
**** Aggressive behavior of China's officials raises concerns about security
****


There were several incidents of extremely aggressive behavior
of Chinese diplomats attending the APEC conference.

On Saturday, four Chinese officials barged into the office of PNG's
foreign minister Rimbink Pato, after they had been denied a private
meeting. Security was called to the office and the officials had to
be forced from the room. As a result, additional police were
stationed at the government building to guard Pato's office.

China demanded the meeting because it wanted to make sure that the
draft version of the final communiqué (which, in the end, was never
issued anyway) contained language that was satisfactory to China. The
US wanted to including language, directed at China without mentioning
China, calling for reforms to world trading rules to target predatory
trade conduct and demanding state-owned enterprises be forced to
compete on a level playing field with private businesses. China
apparently barged into Pato's office to make sure that the communiqué
did not contain the US language.

The second issue is that Chinese officials strictly controlled media
access to Xi Jinping, even ejecting PNG journalists who had been
invited to cover a meeting between Xi Jinping and some Pacific Island
leaders. Apparently Xi Jinping prevented any but Chinese media from
having any opportunity to ask a question. One can only guess why.
Australian Broadcasting and Bloomberg and Australian Broadcasting

Related Articles


KEYS: Generational Dynamics, Papua New Guinea, PNG, China, Australia,
Asia-Pacific Economic Cooperation Leaders' Summit, APEC,
Belt and Road Initiative, BRI, Xi Jinping, Mike Pence,
Sri Lanka, Seaport of Hambantota, Tonga, Fiji,
Rimbink Pato

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John J. Xenakis
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19-Nov-18 World View -- APEC meeting ends in disarry after harsh US-China disagreemen - by John J. Xenakis - 11-19-2018, 12:06 AM
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