THE TTALK QUOTES 

On Global Trade & Investment
Published By:
The Global Business Dialogue, Inc.
Washington, DC  Tel: 202-463-5074
 
No. 57 of 2019
THURSDAY, AUGUST 15, 2019

Click HERE for Monday's quote from Boris Johnson.


PIVOTAL HONG KONG

 "Hong Kong, the pearl of the Orient, is right now the pivot point of global politics."


Greg Sheridan
August 15, 2019
CONTEXT
Greg Sheridan is the foreign editor of The Australian , Australia’s most widely circulated newspaper. Today’s featured quote is from his just-published article on the protests in Hong Kong. We found it an excellent summary of what is happening and what is at stake. It is not, however, a completely stand-alone piece because much of it is a reaction to another recent article. That earlier piece was written by Andrew Hastie , a Liberal, a Member of the Australian Parliament, and, perhaps more to the point, the chairman of the Parliamentary Joint Committee on Intelligence and Security. We’ll first take note of some things in Andrew Hastie’s article and then come back to Greg Sheridan’s. 

Mr. Hastie opens with the observation that he was wrong about something. 9/11 wasn’t the defining moment for geopolitics in the 21st Century. No, that was the much less dramatic event 5 months earlier, when a Chinese jet fighter collided with a U.S. intelligence plane some 43 miles from Hainan island. As a former Australian Army captain with service in Afghanistan, Mr. Hastie could have been forgiven for sticking with the focus on 9/11, but, especially for Australia, that early clash between the U.S. and China was the truly seminal event.

“Australia must now, somehow, hold on to our sovereignty and prosperity,” Mr. Hastie wrote. He continued:

“It is impossible [for Australia] to forsake the US, our closest security and investment partner. It is impossible to disengage from China, our largest trading partner. This is the central point: almost every strategic and economic question facing Australia in the coming decade will be refracted through the geopolitical competition of the US and the PRC.”

Mr. Sheridan isn’t the only one to have reacted to Andrew Hastie’s article. There seems to have been a lot of reaction, some favorable (as Mr. Sheridan’s was) and some not. And this appears to have been one of the more controversial paragraphs: 

“The West once believed that economic liberalization would naturally lead to democratization in China. This was our Maginot Line. It would keep us safe, just as the French believed their series of steel and concrete forts would guard them against the German advance in 1940. But their thinking failed catastrophically. The French had failed to appreciate the evolution of mobile warfare. Like the French, Australia has failed to see how mobile our authoritarian neighbor has become.”

As for what is to be done, Mr. Hastie’s piece is relatively short on explicit recommendations. Implicitly, the starting point for him is understanding. “ Right now,” he writes, “our greatest vulnerability lies not in our infrastructure but in our thinking.”  And the first thing to understand is that China today is a state driven by ideology, specifically “Marxist-Leninism and Mao Zedong Thought.

***

Let’s turn now to the follow-on article by Greg Sheridan, which deals both with the issue of China’s ideology and direction as well as with the urgent issue of Hong Kong. In his view, President Xi

“fundamentally changed the direction of mainland Chinese political and cultural development.

“He took it away from being an authoritarian regime with a good economic record, a good deal of civic space and on a modest and limited path of partial liberalization. He headed it instead towards a new, hi-tech totalitarianism.”

As for the developments in Hong Kong, Mr Sheridan describes the origin of the current confrontations – Hong Kong’s infamous extradition bill, which has still not been wholly withdrawn – the challenges that the demonstrations pose for mainland China, and the massing of troops. He also notes more than once that “Beijing is reluctant to intervene in a heavy-handed way because of the enormous, permanent, reputational damage it would suffer.”


COMMENT
At some point, the demonstrations in Hong Kong will end. We don’t know how they will end. We hope they will end peacefully, and they might. As for whether the demonstrators will be successful, we are inclined to share Greg Sheridan’s pessimist assessment. He wrote:

"The demonstrators in Hong Kong have reasonable but probably unattainable demands. 

"They want the extradition treaty formally withdrawn, and inquiry into police brutality, charges against demonstrators downgraded or dropped and universal suffrage for democratic elections."

Whether or not any of those goals are met, the demonstrations do not have to end in bloodshed, and we fervently hope that they do not.

This brings us, lastly, to President’s Trump ’s role in all of this. He has been taking a lot of criticism for not acting more forcefully. The Wall Street Journal took that line yesterday. We think those criticisms are misplaced. No political leader has challenged the regime of Xi Jinping as forcefully as Donald Trump has. And the overall U.S. position on the use of force by China in Hong Kong could hardly be clearer. Numerous officials have spoken out, including both House Speaker Nancy Pelosi and Senate Majority Leader Mitch McConnell .  Xi Jinping is not unaware of America’s view. For President Trump to speak out any more forcefully than he has, however, is not likely to improve things. Quite the opposite, it could well be the match that lights the firecracker of Beijing resolve when what one desperately wants is a gentle answer to turn away the wrath.
SOURCES & LINKS
One Country, Two Systems take you to the article in The Australian by Greg Sheridan that was the source for today’s featured quote.

With Clear Eyes is a link to Andrew Hastie’s article of August 8, which featured prominently in the piece by Greg Sheridan

Hong Kong and Trump is the Wall Street Journal editorial mentioned above, in which the Journal editorial writers urge President to speak more forcefully on the issue.

A Gentle Answer is a tweet and, as of this writing, one of President Trump’s more recent statements on the issue.  
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