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Commentary

North Korea & Sanctions: Why Going After China is a Bad Idea

By Zhan Zhou

October 12, 2017

Source: UnSplash

Articles and Analysis

Chinese-North Korean Relations: Drawing the Right Historical Lessons
James Person
38 North, September 26

“Starting in the mid-1970s, Pyongyang began reaching out to Washington to replace the Korean War armistice with a peace agreement. Yet, as declassified US records suggest, as Washington prepared to normalize relations with Beijing in the late 1970s, President Carter’s national security team determined that there was little intrinsic value to talking directly with North Korea. Instead, the US would rely on what it believed—incorrectly—to be China’s influence over the DPRK. This approach reflected a poor understanding of the historical relationship between China and North Korea; exaggerated the docility of Pyongyang to Beijing; and failed to take into account historical factors that limited China’s influence over the DPRK. Yet, nearly four decades later, asking China to solve the North Korean problem remains Washington’s default policy for dealing with Pyongyang. Basing American strategy for dealing with the North Korean threat on the flawed assumption that Beijing exercises enormous political clout in Pyongyang and would be willing to carry Washington’s water, is a recipe for continued failure.”

China and Russia – Diverging Trajectories
Zheng Yu
China-US Focus, September 28

“China and Russia now differ in their strategic positions in the existing international system. In the joint statement between Chinese and Russian heads of state in 1997, both wanted to promote multi-polarity and a new international order. Subsequent joint statements have kept the multi-polarity part. However, as China became more deeply integrated into the existing world order in the 21st century, particularly since its entry into the WTO, it has benefited immensely. It now no longer even mentions promoting multi-polarity in its most important official documents. Instead, it frequently emphasizes cooperation with the international community, a shared future, mutual benefits, and win-win situations. When the Asia Infrastructure Investment Bank (AIIB) and the BRICS’ New Development Bank were founded, it was emphasized that they were to complement and improve the existing international financial system rather than challenge it.”

Trump Comes to Asia
Euan Graham
The Diplomat, October 1

“American priorities remain clear, but questions linger about the administration’s aims in Asia.”

China Preparing to Bypass Russia’s Northern Sea Route in Arctic
Paul Goble,
The Jamestown Foundation, October 3

As the arctic icepak recedes, new economic opportunities are emerging in the region. Russia has long sought to establish “reliable guidance and communications networks along the Northern Sea Route (a maritime passage that mainly hugs Russia’s northern coast),” but has largely failed to do so. “These factors, combined with China’s desire to find a cheaper sea route from Asia to Europe, has led Beijing to start planning to exploit what it calls ‘the central seaway’ in the Arctic, north of the Russian route and closer to the pole.”

The White House Could Inadvertently Goad North Korea into Nuking the Pacific
Dave Majumdar
War Is Boring, October 4

“The Trump administration may inadvertently be provoking North Korea into conducting a live-fire test of a nuclear-tipped ballistic missile. While it is clear that North Korea has both ballistic missile technology and a working hydrogen bomb, the U.S. State Department recently suggested in a tweet that Pyongyang does not have such capabilities. … Similar statements in previous decades prompted China to conduct a risky live-five nuclear missile test on Oct. 27, 1966. Pyongyang — feeling the pressure to prove its capabilities — might do the same.”

Past Events

China’s Economy After the Party’s Congress
Event Hosted by Carnegie Endowment for International Peace, October 2

“As China’s Nineteenth Party Congress approaches, it is important to identify the economic factors that challenge China and the new leadership that will emerge from the Congress. How will the Chinese frame their policy choices? How should they? What are the implications for policymakers and business people who deal with China over the next five years?” Michael Pettis addressed these questions in this event. Please click here for the full video.

On the Brink with Iran and North Korea
Event hosted by Center for American Progress Action Fund, October 4, 2017

“As North Korea advances its nuclear and missile programs, the United States is faced with a serious challenge in confronting this major national security threat on the Korean peninsula. And yet, as tensions with North Korea mount, the Trump administration is talking about ripping up the international deal that has prevented Iran from getting a nuclear weapon.”

“On October 15, the Trump administration will once again be required to certify under U.S. law that Iran is complying with the terms of the nuclear deal. While the United Nations and the Trump administration have confirmed that Iran is complying, there is a growing chorus of voices inside and outside the administration looking to undermine the deal.”

“The consequences of the administration’s decision on Iran could be monumental, especially as we face a growing crisis with North Korea.”

The China Order: Centralia, World Empire, and the Nature of Chinese Power
Book Launch hosted by CSIS, October 5

In his new book, The China Order, Fei-Ling Wang argues that “the Chinese ideation and tradition of political governance and world order—the China Order—is based on an imperial state of Confucian-Legalism as historically exemplified by the Qin-Han polity.”

According to Dr. Wang, “the People’s Republic of China has been a reincarnated Qin-Han polity without the traditional China Order, finding itself stuck in the endless struggle against the current world order and the ever-changing Chinese society for its regime survival and security.”

At the event, he also offered “new discoveries and assessments about the true golden eras of Chinese civilization, explains the great East-West divergence between China and Europe, and analyzes the China Dream that drives much of current Chinese foreign policy.” 

Demystifying the Chinese Party Congress
Event hosted by Carnegie Endowment for International Peace, October 6

“The upcoming Nineteenth National Congress of the Communist Party of China is a milestone event beginning October 18. Analysts differ on whether or not it will mark a coronation of sorts for an all-powerful General Secretary Xi Jinping, and the extent of the changes he may enact as a result.”

The principal authors of the premier China-waching online journal, the China Leadership Monitor, addressed the topics on the composition and character of the new leadership team, economic policy continuity and change, and military and security consequences of these changes in the event. Please click here for the full video. GOOD

 
See also: leading scholars from the Carnegie Endowment for International Peace offer their take on the likely outcomes of the 19th Party Congress.
China and the World After the 19th Party Congress

 
The Path Forward for Dealing with North Korea
Event hosted by Brookings Institute, October 10

“North Korea continues to dominate the headlines as its leader, Kim Jong Un, and President Trump trade barbs amid growing concerns about Pyongyang’s nuclear and missile programs and the heightening risk of escalation on the Korean Peninsula. While the United States has articulated a policy of ‘maximum pressure and engagement,’ the Trump administration has repeatedly sent mixed signals, ranging from threats to ‘totally destroy’ North Korea to an emphasis on diplomatic resolution.”

This event featured the following questions: “who is Kim Jong Un and what drives his decisionmaking? To what extent can past policies toward North Korea inform our current approach? Are there historical lessons that can be drawn from other international crises and scenarios?” Please click here for the full video.

The Seventh Annual China Defense and Security Conference
Event hosted by The Jamestown Foundation, October 11

This annual conference examined a range of topics concerning the People’s Liberation Army’s (PLA). China security experts and observers discussed the PLA modernization progress, specifically the efforts towards joint operations among the Navy, the Air Force, and the Rocket Force in the East China Sea, and the role of PLA Strategic Support Force in intelligence operations against Taiwan. The conference also featured presentations on the 19th Party Congress and Taiwan’s role in the East China Sea.

Notable comments included retired U.S. Admiral Mike McDevitt’s observation that China has launched “99 Far Sea-capable warships since 2004” and “will be the world’s 2nd most capable navy in 18 months to 2 years.” Another key observation was offered by Dr. Oriana Mastro, who noted that PLA flight patterns clearly demonstrate an “interest in monitoring and preparing for Korean contingencies,” which is also evident from the location and nature of the PLA Rocket Force.

U.S.-Taiwan Relations Under Trump and Tsai (and Xi)
Event hosted by Brookings Institute, October 12

Taiwan’s relationship with the United States has become all the more important since the inauguration of Tsai Ing-wen in May 2016. On October 12, the Center for East Asia Policy Studies at Brookings held a public forum on U.S.-Taiwan relations featuring a keynote address by Ambassador James Moriarty, chairman of the American Institute in Taiwan. Richard Bush, senior fellow and co-director of the Center for East Asia Policy Studies, moderated a panel with Shirley Lin, David G. Brown, Abraham Denmark and Ryan Hass, on economic challenges, domestic politics, security dynamics, and U.S. policy toward Taiwan.

Upcoming Events

Commentary

North Korea & Sanctions: Why Going After China is a Bad Idea

By Zhan Zhou

During the last two months, the crisis on the Korean Peninsula has quickly escalated as North Korea has ramped up its nuclear and ballistic missile testing. In response, the UN Security Council agreed on September 11th to implement the “toughest-ever” sanctions regime against North Korea. The goal of these sanctions, to quote Joseph DeThomas, is “to slow [its] proliferation programs and steer Pyongyang toward a negotiated reversal of those programs.” Despite this optimistic rhetoric, whether or not this sanctions regime will prove effective in the long run is a large question mark.

To ensure the effectiveness of the new sanctions, the American government seems to have turned its attention to North Korea’s biggest trade partner: China. The U.S. Treasury Secretary Steve Mnuchin intimated that if China fails to comply fully with the primary sanctions against North Korea, he would seek “secondary sanctions”  – sanctions targeting at Chinese state-owned business or other large firms, cutting off Beijing’s access to the U.S. financial system. This hostility toward China is shared by many, and is marked by its lack of necessity. Sanctioning China would only be helpful if it served a purpose, that there was a realistic expectation that doing so would induce China to crack down on North Korea. However, it is far from clear that China would be able to do so, even if they wanted to.

The truth is that North Korea is deeply sceptical of the intentions of its Chinese ally, and in recent years, that scepticism has developed into borderline hostility. Consider this. Since the succession of Kim Jong-Un, the dictator has never visited China as his father and grandfather did. On September 22nd, North Korea’s central news agency published a commentary that directly criticized China’s state media People’s Daily for its negative view on the peninsula’s nuclearization. Perhaps the most stunning evidence of a Sino-North Korean chill is that President Xi’s new envoy for North Korean nuclear negotiations, Kong Xuanyou, is unable to travel to Pyongyang to do his job because the North Korean’s won’t let him.

Despite the deterioration of the Sino-North Korean relationship, it is virtually impossible for China to embrace a full trade embargo against North Korea. From a national security standpoint, there is only one thing that China fears more than a nuclear North Korea, and that is the collapse of the North Korean regime. If the Kim Jong-Un regime were to fall, millions of north Korean refugees would pour across China’s southern border, destabilizing the region and placing an enormous financial burden on Beijing. It would also mean that the nuclear weapons that Pyongyang already has would be up for grabs, right in China’s back yard. China’s nightmare scenario though, is that a collapse of the North Korean regime would bring about Korean unification on South Korean terms. This would bring one of America’s strongest military alliances right to China’s doorstep, a scenario that Beijing will seek to avoid at all costs.

Thus, China can only afford to go so far in sanctioning North Korea. On the one hand, there is a genuine desire to pressure Pyongyang to abandon their nuclear weapons program, but China cannot afford to push them to the breaking point that causes the regime to collapse. And that is precisely what Trump is asking China to do.

In this context, it is irrational and premature to advocate secondary sanctions on China. Furthermore, there is no telling how much harm secondary sanctions could bring to the United States. China would likely retaliate in some fashion to U.S. sanctions, and it is hard to guess how severe they might be. As of August 2017, the U.S. trade balance with China had already amounted to a staggering -$239 billion. Such economic dependence on China is strengthened by the fact that many of the critical goods for national security, such as rare-earth elements, are almost exclusively imported from China. It would be nothing short of a disastrous scenario if, while North Korea entrenches its position as a nuclear armed state, the United States and China are sacrificing their economies through bitter infighting. Initiating secondary sanctions simply misses the point of sanctions.

Speaking from a pragmatic perspective, enforcing sanctions on China would be virtually impossible. As Alex Capri recently highlighted, Beijing would be unlikely to provide accurate documents regarding the targeted companies, and even if they were to go through, the targeted companies could still conduct their business by establishing shell companies. Rather than spending resources on such impractical secondary sanctions, it is more relevant to focus on the primary task at hand, which is freezing the progress of North Korea’s nuclear program. At this crucial moment, the United States and China cannot afford be distracted by another unhelpful drama.

Washington should pay heed to the fact that China’s North Korean policy is already being reevaluated, rather than issuing unhelpful threats of secondary sanctions. This is evident from China’s support to the most recent round of sanctions at the UN. Notably, North Korea’s test of a hydrogen bomb occurred on the same day that President Xi Jinping presided over the opening of the BRICS summit. This is widely perceived as having been intended to humiliate China, and the insult was ill received. According to Chinese scholar Shen Zhihua, Beijing China should “abandon the stale myths of fraternity that have propped up its support for North Korea … We must see clearly that China and North Korea are no longer brothers in arms, and in the short term there’s no possibility of an improvement in Chinese-North Korean relations.”

China’s increasing impatience with Kim Jong-Un is an opening for the United States to secure China’s cooperation in resolving the crisis on the Korean peninsula. This is the time for the two countries to consider their shared interests, exploring the middle ground on which both of them can stand. This approach holds far more promise than threatening secondary sanctions that are likely to worsen an already tense and rapidly deteriorating situation.