cross-posted from zenpundit.com
An amigo who is an expert on China pointed me toward a couple of links last weekend. Here is the first:
….Whenever a crisis occurs, diplomatic authorities typically attempt to assess the situation by contacting their counterpart of the country concerned to investigate, if any, what their intentions are. For example, the incident could merely have been an accident or a calculated act sanctioned by those at the center of the administration. But when the Chinese become involved, such diplomatic approaches may no longer be a possibility.
The Chinese Foreign Ministry, which is supposed to be the equivalent of the U.S. State Department or Japan’s Foreign Ministry, is “merely an organization which carries out policies decided by the Communist Party of China (CPC),”a senior Foreign Ministry official said.
Foreign Minister Wang Yi is just one of 205 members of the Central Committee of the CPC, and is not even included in the 25-member Politburo, which is regarded as the party’s leadership organ.
Indeed, when the Chinese National Defense Ministry announced the establishment of the air defense identification zone (ADIZ) in the East China Sea, including the Senkaku Islands, on Nov. 23, the Japanese Embassy in Beijing approached the Chinese Foreign Ministry. However, an official in charge at the ministry said, “We don’t know about it [ADIZ], as it’s outside our jurisdiction,” which left the embassy nonplussed.
If the Chinese Foreign Ministry is of so little use, then where are the country’s diplomatic policies worked out? Important decisions are made by the Central Leading Small Group on Foreign Affairs, while decisions on military affairs are carried out at the Central Military Commission.
The two organizations are central organs within the CPC, erecting a barrier for diplomatic and defense authorities of the United States or Japan. Discussions in these organizations are kept secret from the outside. Diplomatic relations in China are complicated further by individual diplomatic issues sometimes being used as ammunition to attack rivals in power struggles within the Communist Party.
….Between the United States and China, there is the Military Maritime Consultative Agreement (MMCA), signed in January 1998. However, the accord was no use on occasions such as a collision between a U.S. Navy plane and a Chinese fighter jet over the South China Sea in April 2001.
Former Defense Undersecretary for Policy Michele Flournoy, who was the chief negotiator in vice ministerial-level defense talks with China under the first administration of Barack Obama, said during an interview with The Yomiuri Shimbun on Feb. 4, that the United States tried to have the MMCA function, but the Chinese side took a backward-looking stance. Although there is a mechanism there, China had almost no intention of complying with the mechanism properly, she added.
Our problem here is not China or the Chinese government, but our own credulity in the face of empirical evidence. The Chinese are simply playing their cards well for as long as we are going to allow them to do so. In their shoes, I would suggest doing exactly the same so long as it keeps working.
Getting your adversary to negotiate with powerless and ill- informed representatives while the real decision makers sit at a remove is a time- tested tactic in bargaining.
The side that uses this approach gets at least two bites at every apple which means the other side increasingly has to give further concessions to secure what they thought had already been agreed to. It is a classic example of negotiating in bad faith. Furthermore, the side using it is the one interested in winning or at best, in buying time, not in reaching an agreement.
When presented with this dynamic the smart move is to walk away and immediately implement whatever the other side would rather you not do or give up the game and move on to something else. Agreements and treaties have no intrinsic value unless they advance, or at least preserve, interest. If the other party has no intention of abiding by the terms at all then they are less than worthless, being actively harmful.
China’s decision-making is both opaque and riven by factions about which Americans are poorly informed, even those who have real academic expertise and language fluency are forced periodically to read tea leaves about high level decisions within the CCP. The following link represents a certain attitude among more nationalistic Chinese elites:
When a giant is about to fall, you should give him certain support to help him to fall down slowly instead of his falling down all of a sudden, or you would be the one who suffers. That’s why I said “China should coordinate the gradual fall of the U.S.” instead of allowing her to collapse all at once.
….In the long term, the U.S. is heading towards decline and will become weaker and weaker. However, the so-called “weak” is a comparative word. In comparison with China, the U.S. is still very strong. The U.S. is going down from the summit, whereas China’s is climbing up from below.
Sohu Business: That is to say, we do not need to worry about the overall safety of China’s foreign exchange reserve over a period of time?
Sheng Hong: Yes, but we still need to be constantly alert. In the long run, the U.S. dollar will gradually weaken and a crash of the currency is possible when it weakens to a certain extent. This is because, one way to solve the U.S. debt problem is to borrow, and another important way is to increase the supply of dollars, which will further weaken the U.S. dollar.
If people lose faith in the U.S. dollar and anticipate the U.S. government to continue the inflation policy, they will sell dollars and aggravate the crash of the currency. This, however, will not happen at once. Moreover, the U.S. government is rather cautious at present. Although it is inclined to a loose monetary policy, including the quantitative easing monetary policy, thus increasing the amount of U.S. dollars, which made up the U.S. fiscal deficit, fiscal problems will soon be reflected in its currency. Therefore, in terms of interests, China must be very careful though this problem will not happen right now and that the U.S. dollar is still stronger than the RMB now; in terms of strategies, China should pay more attention to and begin to make preparations for it. Or it would be too late to prepare when that day comes.
…. In fact, the turning point came out long ago. Moreover, I have mentioned in my articles published previously that the turning out was actually the financial crisis which occurred at the end of 2007 and the beginning of 2008. Now, it’s just that some people attached labels to current events, before which many people did not even know about the situation. Nevertheless, economists should start their analysis from the financial crisis. I mentioned in my article titled Who Would Let Obama Stand Alone? that Americans could not blame others for questioning the safety of the U.S. assets since they caused the financial crisis by themselves. I won’t buy your financial assets if I do not trust their safety. If you want me to buy your financial assets, you must offer higher returns. When you lose others’ trust in you, you are already going down from the peak.
The 9/11 Attacks struck the U.S. seriously, but not as seriously as the Financial Crisis did. The Financial Crisis was inherent rather than extrinsic. I have been following this issue ever since the financial crisis. I said at that time that the U.S. would gradually head towards decline. The debt crisis happened because not so much seigniorage could be collected any more. The U.S. has inertia in foreign military contacts which prevents it from withdrawing its troops from Afghanistan and Iraq at once, and it had to cope with the financial crisis. Therefore, the debt crisis is inevitable. It is not a turning point but a label attached by S & P.
….The military contraction. This is very important. After Obama came to power, he clearly sensed that the military existence by the U.S. throughout the world could not remain the same as before because the U.S. has less and less money. The reality of the U.S. faced by Obama is an inevitable continuous contraction, which is actually a strategic turning point of great significance for the U.S. I mentioned just now that when trade deficits are reduced, less reflux of dollars will be attracted, resources of military expenditure will be reduced, and then military forces should be contracted.
It is human nature to not want to accept the reality that some people genuinely intend us harm. Sure, in the abstract yes but when eye to eye people tend to bend themselves into pretzels giving the other person the benefit of the doubt when the empirical record indicates otherwise. This willing gullibility is why con games have such staying power when the first instance of bad faith is usually a foreshadowing of the nature of who you are really dealing with. It is so much easier psychologically to ignore rather than to confront and embrace conflict (even when it is only rhetorical).
The elephant in the room is that there’s an influential faction within China’s elite that has unrealistic to grandiosely hegemonic ambitions regarding China’s role in Asia and the world. They are not the entirety of China or even China’s leadership, but given China’s aggressive bullying behavior of the past three to five years, they appear to be ascendant. That is a strategic dilemma for the US and its allies.
Our job is to interrupt their momentum so that their hopes come to grief and our that moves that strengthen the faction in China’s leadership that prefers peaceful and harmonious relations over conflict with all of China’s neighbors and the United States.