Xi Jinping ends landmark KSA visit by calling on Arab states to embrace multipolar world

The Cradle | December 10, 2022
Chinese President Xi Jinping left Saudi Arabia early on 10 December following a three-day visit that saw him attend three different summits with leaders from across West Asia and Africa.
On Friday night, Xi headed the first China-Arab States Summit, which saw a large majority of Arab League heads of state attend in a bid to strengthen bilateral ties with the Asian giant.
“As strategic partners, China and Arab states should … foster a closer China-Arab community with a shared future, so as to deliver greater benefits to their peoples and advance the cause of human progress,” the Chinese president said during his keynote speech.
Xi also called on Arab states to remain “independent and defend their common interests,” adding that China “supports Arab states in independently exploring development paths suited to their national conditions and holding their future firmly in their own hands.”
“China is ready to deepen strategic mutual trust with Arab states, and firmly support each other in safeguarding sovereignty, territorial integrity and national dignity,” Xi said, noting that the two sides should “jointly uphold the principle of non-interference in other countries’ internal affairs, practice true multilateralism, and defend the legitimate rights and interests of developing countries.”
The Chinese leader also urged leaders from West Asia and Africa to embrace “synergy between their development strategies, and promote high-quality [cooperation in the Belt and Road Initiative].”
Launched nine years ago, the Belt and Road Initiative (BRI) is considered the crown jewel of Xi’s long-term foreign policy agenda. The stated aim of the mega-infrastructure project is to bring capital and infrastructure to Global South countries while dramatically strengthening connectivity for commerce, finance, and culture.
The BRI also aims to secure markets for Chinese companies, stable supplies of inputs for Chinese factories, and productive outlets for China’s large foreign exchange holdings. Close to 150 nations across the globe have signed on to participate in the BRI.
For the first half of 2022, Saudi Arabia was the biggest recipient of China’s finance and investment spending in the BRI.
Ahead of the China-Arab Summit on Friday, the Chinese president met with leaders from the Gulf Cooperation Council (GCC). During this summit, he urged the oil and gas giants to conduct energy sales in the Chinese yuan, potentially divorcing the US dollar from bilateral transactions.
He also vowed to import more oil and natural gas from Gulf Arab states while not interfering in their affairs, a departure from Washington’s long-standing policy of interference and domination.
Xi later took the opportunity to express China’s support for the end of the Israeli occupation of Palestine, and voiced frustration over the “historical injustice” suffered by Palestinians.
“It is not possible to continue the historical injustice suffered by the Palestinians,” the Chinese president said on Friday.
He went on to call on the international community to grant Palestine “full membership in the United Nations” and said Beijing “supports the two-state solution and the establishment of a Palestinian state on the 1967 borders, with East Jerusalem as its capital.”
Beijing’s emergence as a major superpower since the turn of the century has proven to be critically important for Arab states, prompting them to diversify their strategic objectives and balance themselves away from a decades-long Western dependency.
Moscow: US to Spend $11 Billion on Cyberattacks Against ‘Unwanted’ Governments

© AP Photo / Department of Defense, Cherie Cullen
Samizdat – 10.12.2022
MOSCOW – Washington plans to spend around $11 billion next year on carrying out cyberattacks with the aim of controlling unfriendly governments, Russian Deputy Foreign Minister Oleg Syromolotov said in an interview with Sputnik.
“Western countries want to use information and its carriers – big data and software tools for their transmission – to subjugate unwanted governments through cyberattacks,” Syromolotov said, adding that the “Pentagon’s budget alone for these purposes in 2023 will be more than $11 billion.”
The deputy foreign minister pointed out that, according to the new doctrinal documents released in October, the administration of US President Joe Biden has “declared the whole world and the global information space to be its sphere of interest.”
On October 12, the Biden administration released the 2022 National Security Strategy that characterized China as being the most consequential geopolitical challenge for the United States. According to the document, Beijing is Washington’s sole rival allegedly seeking to increase its economic, diplomatic and military capacity to change the international order.
Syromolotov’s comments come in the wake of the earlier statement by the Russian Embassy in the United States that blasted Washington’s sanctions against Moscow as an attempt to exert pressure on governments that are “inconvenient” for the US.
The Russian diplomatic mission said that Washington is attempting to force “other countries to adjust their foreign policy,” disguising these attempts as efforts to defend human rights.
The Pentagon released its National Defense Strategy (NDS) in October, stating that China remains the top competitor of the United States and warning that Beijing-Moscow collaboration might threaten US interests. The document also characterizes Russia as an acute and more immediate threat to US interests and values than China, which is characterized as a “pacing challenge.”
On Friday, the US Treasury Department announced that the United States was sanctioning over 40 individuals and entities from nine different countries, including Russia, Iran, North Korea, and China, for alleged links to corruption and human rights abuses.
US defense bill authorizes more Ukraine and Taiwan aid
RT | December 7, 2022
US lawmakers have reached a compromise on the National Defense Authorization Act, agreeing to approve $45 billion more in overall military spending in 2023 than President Joe Biden had requested, as well as multiple provisions for new “security assistance” to Ukraine and increased cooperation with Taiwan.
The House and Senate Armed Services Committees released their final draft of the NDAA on Tuesday night following lengthy negotiations, seeking to bring it up for a vote in the House by the end of the week. The massive spending bill would devote a total of $858 billion for next year’s defense budget, with lawmakers arguing the increase compared to 2022 is needed due to soaring inflation and costly arms shipments to Kiev.
In addition to setting out basic yearly funding for the Defense Department and the Department of Energy, which manages America’s nuclear arsenal, the latest NDAA would approve another $800 million for the Ukraine Security Assistance Initiative – $500 million more than President Biden’s initial request.
Since February, the Biden administration has approved more than $19 billion in direct military aid for Kiev from the Pentagon’s stockpiles, and the bill seeks additional funding to boost production and replenish the US military’s dwindling stocks.
US officials also agreed to require periodic reports from the Pentagon in the “short and medium term” on US arms sent to Ukraine, after several Republican lawmakers raised concerns that American weapons were not being properly tracked on reaching the country’s chaotic battlefield.
The new spending bill also authorizes the Taiwan Enhanced Resilience Act, which is designed to “increase security cooperation” with the island and would allocate up to $10 billion for that purpose over the next five years. The latter provision is likely to trigger condemnation from Beijing, which considers Taiwan part of its sovereign territory and has repeatedly urged Washington to halt all direct dealings with Taipei.
Another project targeting China, the US Pacific Deterrence Initiative, will receive another $11.5 billion in new investments under the current draft legislation. The Pentagon has noted the initiative aims to confront the supposed “multi-domain threat” posed by Beijing and expand the US military footprint in the Indo-Pacific region.
Considered ‘must-pass’ legislation due to its increasingly wide scope, versions of the NDAA have been approved by US lawmakers every year since 1961. The measure is also frequently described as a “legislative vehicle,” as Republicans and Democrats usually seek to include a range of issues unrelated to defense in each year’s spending bill.
Xi’s visit and the future of the Middle East
By Ramzy Baroud | MEMO | December 7, 2022
The problem with most Western media’s political analyses is that they generally tend to be short-sighted and focused mostly on variables that are of direct interest to Western governments.
These types of analyses are now being applied to understanding official Arab attitudes towards Russia, China, global politics and conflicts.
As Chinese President Xi Jinping prepares to lead a large delegation to meet with Arab leaders in Saudi Arabia on 9 December, Western media conveys a sense of dread.
The Chinese leader’s visit “comes against the backdrop” of the Biden Administration’s “strained ties with both Beijing and Riyadh” over differences, supposedly concerning “human rights and Russia’s invasion of Ukraine,” Reuters reported.
The same line of reasoning was parroted, with little questioning, by many other major Western media sources, falsely suggesting that ‘human rights’, along with other righteous reasons, are the main priority of the US and Western foreign policy agenda.
And, since these analyses are often shaped by Western interests, they tend to be selective in reading the larger context. If one is to rely exclusively or heavily on the Western understanding of the massive geopolitical changes around the world, one is sure to be misled. Western media wants us to believe that the strong political stances taken by Arab countries – neutrality in the case of war, growing closeness to China and Russia, lowering oil output, etc – are done solely to ‘send a message‘ to Washington, or to punish the West for intervening in Arab affairs.
Seen through a wider lens, however, these assumptions are either half-truths or entirely fabricated. For example, the OPEC+ decision to lower oil output on 5 October was the only reasonable strategy to apply when the global market’s demand for energy is low. Additionally, Arab neutrality is an equally reasonable approach considering that Washington and its Western allies are not the only global forces that matter to the Arabs. It is equally untrue that the Middle East’s growing affinity with Asia is borne out of recent dramatic events, but a process that began nearly two decades ago, specifically a year following the US invasion of Iraq.
In 2004, China and the Arab League established the China-Arab States Cooperation Forum.
CASCF officially represented the Chinese government and all 22 members of the Arab League, eventually serving as the main coordination platform between China and the Arabs. This has given China the advantage of investing in a collective strategy to develop trade, economic and political ties with the entirety of the Arab world. On the other hand, Arabs, too, had the leverage of negotiating major economic deals with China that could potentially benefit multiple Arab states simultaneously.
An extremely important caveat is that CASCF was predicated in what is known as the “Five Principles of Peaceful Coexistence.” Based on the Westphalian norms of state sovereignty, the five principles seem to be founded on an entirely different paradigm of foreign relations, compared to the West’s approach to the Middle East and the Global South, in general, extending from the colonial periods to the neo-colonialism of post-World War II: mutual respect for “territorial integrity and sovereignty”, “non-aggression”, “non-interference”, and so on.
Chinese-Arab relations continue to follow this model to this day, with very little deviation. This validates the claim that collective Arab political attitudes towards China and Xi’s visit to the Middle East are hardly an outcome of any sudden shift of policies resulting from the Russia-Ukraine war of recent months.
This is not to suggest that Arab and Chinese relations with the US and the West had no impact on the nature of the speed of Chinese-Arab ties. Indeed, the Chinese model of ‘peaceful coexistence’ seems to challenge the henceforth modus operandi at work in the Middle East.
In 2021, China announced projects to build a thousand schools in Iraq, a piece of news that occupied substantial space in Arab media coverage. The same can be said about China’s growing economic – not just trade – influence in Arab countries.
China’s lucrative Belt and Road Initiative, announced in 2013, fits seamlessly into the political infrastructure of Arab-Chinese ties, which were built in previous years. According to the Asharq Al-Awsat newspaper, Riyadh was the largest recipient of Chinese investments within the BRI during the first half of 2022.
Starting in March, Saudi Arabia agreed in principle to sell its oil to China using the Chinese Yuan instead of the US dollar. When implemented, this decision will have irreversible repercussions on the global market but also on the future status of the dollar.
Assuming that such mammoth changes in global geopolitics were an outcome of the immediate need for the Arabs to ‘send a message’ will continue to impair the West’s ability to truly appreciate that the changes underway, not only in the Middle East but worldwide, are part of permanent shifts to the world’s political map. The sooner the West achieves this realisation, the better.
Considering all of this, it would be unfair – in fact, misguided – to suggest that large political entities like China and Arab countries combined are shaping their foreign policy agendas, thus staking their futures, on knee-jerk political reactions to the attitude of a single American President or administration.
Beijing Rips ‘US’s Old Trick of Hyping China Threat’ as DoD Projects Four-Fold Jump in Chinese Nukes
By Ilya Tsukanov – Samizdat – 06.12.2022
China’s Defense Ministry has ripped Washington over a Pentagon report claiming the People’s Republic plans to ramp up its nuclear weapons stockpile to 1,500 warheads by 2035 and to make modifications to its nuclear doctrine.
“It should be emphasized that China firmly pursues a nuclear strategy of self-defense, adheres to the nuclear policy of no first use of nuclear weapons at any time and under any circumstances, and keeps nuclear capabilities at the minimum level required for national security,” Defense Ministry spokesman Tan Kefei said in a written press statement Tuesday.
Accusing Washington of engaging in baseless “speculation” about Beijing’s nuclear deterrent, Tan urged the US to “deeply review and reflect on its own nuclear policy” before “pointing fingers” at China.
“With the largest nuclear arsenal in the world, the US continues to upgrade its nuclear triad, vigorously seeks to develop or forward-deploy non-strategic nuclear weapons, lowers the threshold for using nuclear weapons, and conducts nuclear proliferation through the AUKUS trilateral security partnership, increasingly becoming the source of nuclear conflicts,” the spokesman said.
Tan added that as far as the Pentagon’s 2022 China report as a whole is concerned, it constitutes an example of “the US’s old trick to hype up the so-called ‘Chinese military threat’.” China is “strongly dissatisfied with and firmly opposed to the US’s move, and has lodged solemn representations with the US,” the spokesman said.
The US Department of Defense’s new report on China, released on November 29, characterizes the People’s Republic as “the only competitor with the intent and, increasingly, the capacity to reshape” the US-dominated world order. The report cites Chinese efforts to “modernize, diversify, and expand its nuclear forces,” and expects Beijing to increase the size of its nuclear arsenal from about 400 nukes now to “about 1,500 warheads by its 2035 timeline.”
The document further accuses China of planning to make modifications to its nuclear posture to account for more and better weapons systems, and suggests that the PRC “probably seeks lower yield nuclear warhead capabilities to provide proportional response options that its high-yield warheads cannot deliver.” Finally, the Pentagon paper expresses concerns about China’s “launch on warning posture,” which allows for nuclear missiles to be launched before an enemy first strike detonates.
How Much of a Threat Do China’s Nukes Pose to the US?
Estimates on the size of China’s nuclear stockpile range from 350-400 total warheads. Even if the PRC went ahead and more than quadrupled its total nuclear stockpile, as the Pentagon report claims, Beijing’s 1,500 nukes would still be just a fraction of the 5,550 warhead stockpile held by the United States. Amid recent US efforts to peg China into strategic arms limitation talks with Russia, Beijing has indicated that it would be “happy” to join such discussions if the nuclear superpowers first reduced their stockpiles to China’s level.
Notwithstanding China’s economic and technological might and growing geopolitical and strategic weight in the world, its nuclear deterrent remains extremely modest compared to the US. For example, while the US Navy operates a fleet of 14 Ohio-class ballistic missile submarines, each carrying up to 336 nuclear bombs – enough to obliterate the whole of China, the People’s Liberation Army Navy has six Type 094 missile subs, each carrying between one and seven warheads (for a total capacity of 12-84 warheads per sub).
China and India remain the only two nuclear weapons states with a no first use policy. The US’s nuclear doctrine, on the other hand, allows the president not only use nukes preemptively, but even against “non-nuclear weapons states.” At the same time that it has accused China of “probably” seeking low-yield nukes, the Pentagon has developed the W76-2 – a nuclear warhead with an explosive yield of about five kilotons (i.e. about a third of the power of the US nuclear bomb which leveled the Japanese city of Hiroshima in 1945). Nuclear arms experts have expressed concerns that such low-yield nuclear weapons pose a threat to global strategic stability by lowering the threshold for nuclear war.
Necessary Illusions – Even the narrative of the EU as a geo-strategic player has now burst
By Alastair Crooke | Strategic Culture Foundation | December 5, 2022
Something odd is afoot in Europe. Britain recently has been ‘regime washed’, with a strongly pro-EU Finance Minister (Hunt) paving the passage to an election-free premiership by ‘globalist’ Rishi Sunak. Why so? Well, to impose swingeing cuts to public services, to normalise immigration running at 500,000 per annum and to raise taxes to the highest levels since the 1940s. And to open channels about a new relationship deal with Brussels.
A British Tory Party is content to do that? Slash social support and hike taxes into an already existent worldwide recession? On the face of it, it doesn’t seem to make sense. Shades of Greece 2008? Greek austerity for Britain — are we missing something? Is this setting the scene for the Remainer Establishment to point to an economy in crisis (blamed on Brexit failure), and to say there is no alternative (TINA) but a return to the EU in some form, (British ‘cap in hand’, and with head bowed)?
Simply put, forces behind the scenes seem to want the UK to resume its former role as US plenipotentiary inside Brussels — pushing the US primacy agenda (as Europe sinks into self-doubt).
Likewise odd — and significant – was that on 15 September, former German Chancellor Schroeder entered unannounced into Scholtz’s office where only the Chancellor, and Vice-Chancellor, Robert Habeck, were present. Schroeder slapped down a long-term gas supply proposal by Gazprom on the desk, directly under Scholtz’s eyes.
The Chancellor and his predecessor held each other’s gaze for a minute – without a word passing. Then Schroeder reached out, took back the unread document, turned his back and exited the office. Nothing was said.
On 26 September (11 days later), the Nordstream pipeline was sabotaged. Surprise (yes, or no)?
Many unanswered questions. The upshot: No gas for Germany. One Nordstream train (2B) however, survived the sabotage and remains pressurised and functional. Yet still no gas arrives in Germany (other than high price liquified gas). There are presently no EU sanctions on gas from Russia. Landing the Nordstream gas requires only a Regulatory go-ahead.
So then: Europe is to have austerity, loss of competitiveness, price and tax hikes? Yes — yet Scholtz did not even glance at the gas offer.
The Green Party of Habeck and Baerbock (and the EU Commission) is in close alignment with those in the Biden team insisting to maintain US hegemony, at all costs. This Euro-coalition is explicitly and viscerally malefic towards Russia; and in contrast, is as viscerally indulgent towards Ukraine.
The big picture? German Foreign Minister Baerbock in a speech in New York on 2 August 2022 sketched out a vision of a world dominated by the US and Germany. In 1989, George Bush famously had offered Germany a “partnership in leadership”, Baerbock claimed. “Now the moment has come when we have to create it: A joint partnership in leadership”. A German bid for explicit EU primacy, snaring US support. (The Anglos will not like that!)
Ensuring no backsliding on Russia sanctions and continuing EU financial support for the Ukraine war is a clear ‘Red Line’ for precisely those in the Biden team likely to be attentive to Baerbock’s Atlanticist bid — and who understand that Ukraine is the spider at the centre of a web. The Greens explicitly are playing this.
Why? Because Ukraine is still the global ‘pivot’: Geopolitics; geo-economics; commodity and energy supply chains — all revolve around where this Ukraine pivot finally settles. A Russian success in Ukraine would bring a new political bloc and monetary system into being, through its allies in the BRICS+, the Shanghai Cooperation Organization and the Eurasian Economic Union.
Is this European austerity binge then just about the German Green Party nailing down EU Russophobia? Or are Washington and its Atlanticist allies now prepping for something more? Prepping for China to get the ‘Russia treatment’ from Europe?
Earlier this week at Mansion House, PM Sunak changed gear. He ‘hat-tipped’ to Washington with the promise to stand by Ukraine ‘as long as it takes’, yet his primary foreign policy focus was firmly on China. The old ‘golden’ era of Sino-British relations ‘is over’: “The authoritarian regime [of China] poses a systemic challenge to our values and interests”, he said — citing the suppression of anti-zero-COVID protests and the arrest and beating of a BBC journalist on Sunday.
Over in the EU — belatedly panicking over unfolding widespread de-industrialisation — President Macron has been signalling that the EU might take a more hard-line China stance, though only were the US were to back-down on the subsidies in the Inflation Reduction Act, which entice EU companies to up-anchor, and sail off to America.
Yet, Macron’s ‘play’ is likely to meet a dead end, or at best, a cosmetic gesture — for the Act has already been legislated in the US. And the Brussels political class unsurprisingly already is waving the white flag: Europe has lost Russian energy and now stands to lose China’s tech, finance and market. It’s a ‘triple whammy’ — when taken together with European de-industrialisation.
There you have it — austerity is always the first tool in the US toolbox for exerting political pressure on US proxies: Washington is prepping the EU ruling élites to sever from China as fundamentally Europe has already done from Russia. Europe’s largest economies already are taking a harder line on Beijing. Washington will squeeze the UK and EU ‘til the pips squeak to get full compliance on a China cut-off.
The protests in China over Covid regulations could not have arrived at a more serendipitous time from the US’ ‘China hawks’ perspective: Washington whipped the EU into full propaganda mode on Iranian ‘demonstrations’ — and now the China protests offer the opportunity for Washington to go full court on China demonisation:
The ‘line’ used against Russia (Putin makes mistake after mistake; the system bumbles; the Russian economy is precariously perched on a knife edge and popular disaffection is soaring) – will be ‘cut and pasted’ to Xi and China.
Only, the inevitable EU moral lecturing will antagonise China even further: Hopes to keep a trade foothold in China will vanish, and effectively it will be China ‘washing its hands’ of Europe, rather than vice versa. European leaders have this blind spot — quite some Chinese may deplore the Covid lockdown practice, yet still will remain deeply Chinese and nationalist in sentiment. They will hate EU lecturing: ‘European values speak only for themselves — we have our own’.
Obviously, Europe has dug itself into a deep hole. Its adversaries grow bitter at EU moralising. But what exactly is going on?
Well, firstly, the EU is hugely over-invested in its Ukraine narrative. It seems incapable of reading the direction of travel that events in the war zone are taking. Or, if it does read it correctly (of which there is little sign), it appears incapable of being able to affect a course correction.
Recall that the war at the outset was never seen by Washington as likely ‘being decisive’. The military aspect was viewed as an adjunct — a pressure multiplier — to the political crisis in Moscow that sanctions were expected to unleash. The early concept was that financial war represented the front line — and the military conflict, the secondary front of attack.
It was only with the unexpected shock of sanctions not achieving ‘shock and awe’ in Moscow that priority switched from the financial to the military arena. The reason the ‘military’ was not firstly seen as ‘front-line’ was because Russia clearly had the potential for escalatory dominance (a factor which is now so evident).
So, here we are: The West has been humiliated in the financial war, and unless something changes (ie. dramatic escalation by the US) – it will lose militarily too — with the distinct possibility that Ukraine at some point, simply implodes as a state.
The actual situation on the battlefield today is almost completely at odds with the narrative. Yet, so heavily has the EU invested in its Ukraine narrative that it just doubles-down, rather than draw back, to re-assess the true situation.
And so doing — by doubling-down narratively, (standing by Ukraine ‘for as long as it takes’) — the strategic content to the ‘Ukraine’ pivot rotates 180 degrees: Rump ‘Ukraine’ will not be ‘Russia’s Afghan quagmire’. Rather, its’ rump is morphing into Europe’s long-term financial and military ‘quagmire’.
‘As long as it takes’ gives the conflict an indeterminate horizon — yet leaves Russia in control of the timetable. And ‘as long as it takes’ implies ever more exposure to NATO blind spots. The rest-of-world intelligence services will have observed NATO’s air defence and military-industrial lacunae. The pivot will show who is the true ‘paper tiger’.
‘As long as it takes’ — has the EU thought this through?
If Brussels imagines too, that such dogged adherence to narrative will impress the rest-of-the-world and bind these other states closer to the EU ‘ideal’, they will be wrong. Already there is a wide hostility to the notion that Europe’s ‘values’ or squabbles have any wider pertinence, beyond Europe’s borders. ‘Others’ will see the inflexibility as some bizarre compulsion by Europe to self-suicide – at the very moment that the end of ‘everything bubble’ already threatens a major downturn.
Why would Europe double-down on its ‘Ukraine’ project, at the expense of losing its standing abroad?
Perhaps, because the EU political class fears even more losing its domestic narrative. It needs to distract from that — it is a tactic called ‘survival’.
The EU, as with NATO, was always a US political project for the subjugation of Europe. It still is that.
Yet, the meta-EU narrative — for internal EU purposes — posits something diametrically different: that Europe is a strategic player; a political power in its own right; a market colossus, a monopsony with the power to impose its will over whomsoever trades with it.
Simply put, the EU narrative is that it has meaningful political agency. But Washington has just demonstrated it has none. It has trashed that narrative. So, Europe is destined to become an economic backwater. It has ‘lost’ Russia — and soon China. And is finding it has lost its standing in the world, too.
Again, the actual situation on the geo-political ‘battlefield’ is almost completely at odds with the EU narrative of itself as a geo-strategic player.
Its ‘friend’, the Biden Administration, is gone — whilst powerful enemies elsewhere accumulate. The EU political class never had a good grasp of its limitations — it was ‘heresy’ even to suggest there were limitations to EU power. Consequently, the EU has hugely overinvested in this narrative of its agency too.
Hanging EU flags from every official building will not cast a fig leaf over the nakedness, nor hide the disconnect between the Brussels ‘bubble’ and its deprecated European proletariat. French politicians now openly ask what can save Europe from complete vassalage. Good question. What does one do when a hyper-inflated power narrative bursts, at the same time as a financialised one?
Canada Plans to Increase Traffic of Warships Through Taiwan Strait: Foreign Minister
Samizdat – 05.12.2022
Canada intends to send more warships to pass through the Taiwan Strait to demonstrate that the waters claimed by China are international, Canadian Foreign Minister Melanie Joly said on Monday.
“We will continue to enforce the international rules-based order when it comes to the Taiwan Strait. And that’s why also we had a frigate going through the Taiwan Strait this summer, along with the Americans, [and] we’re looking to have more frigates going through it,” Joly said in an interview with Financial Times.
According to the minister, Canada will increase the number of frigates stationed in the Indo-Pacific region to three, as well as deploy an additional number of diplomats and military attaches. In total, 400 million Canadian dollars ($298 million) will be invested in the region’s security.
Chinese officials repeatedly told their US counterparts that Beijing did not recognize the strait between the east coast of the mainland and Taiwan as international waters. In addition, Canada recently unveiled its Indo-Pacific Strategy, which called Beijing an “increasingly disruptive global power.”
Official relations between Beijing and Taipei broke down in 1949 after the Kuomintang forces led by Chiang Kai-shek defeated by the Chinese Communist Party in the civil war moved to Taiwan. Business and informal contacts between the island and China resumed in the late 1980s. Since the early 1990s, the two sides maintain contacts through nongovernmental organizations.
US chip war hurts Taiwan
By Uriel Araujo | December 5, 2022
While the United States’ European allies are now fighting aggressive American subsidies (a crisis that risks dividing the political West), Taiwan, another US ally, also faces Washington’s protectionism. This fits into the US pattern of hurting close allies in many different ways.
Biden and Apple’s CEO Tim Cook are visiting Arizona on December 6 to launch the $12 billion American plant of chip giant TSMC – it is the company’s first advanced chip in the US. The US $52 billion chip subsidy bill (passed in July) has been described as vital to the construction of the TSMC plant in Arizona. This will basically transfer Taiwan’s productivity and its most advanced technology to the US and such news has not been well received in Taiwan.
Journalist Zhang Zhouxiang has described this new development as TSMC draining itself. According to him, Taiwan is moving “high-end jobs” away, which hurts the Taiwanese economy.
Semiconductors play a key role in cybersecurity and military applications. Since the pandemic, there has been a shortage of chips (semiconductors) and earlier this year the US Commerce Secretary Gina Raimondo described this situation as a “national security” issue.
Regarding chips, national interests and national security concerns are thus often intertwined. The British government has basically imposed a semiconductor blockade on China, by having taken actions to retrospectively block the sale of Newport Wafer Fab (one of the country’s largest semiconductors plants) to Nexperia, a Dutch company owned by China’s Wingtech. Just days before, the German government had blocked the sale of Elmos Semiconductor’s factory to Silex, a Swedish subsidiary of China’s Sai Microelectronics. In both Germany and Britain concerns about security and economic as well as technological sovereignty have been voiced. There are also concerns about the possible outflow of technical know-how.
Likewise, as part of the ongoing New Cold War, the US government, in early October, banned Chinese companies from purchasing (without a license) both chip-making equipment and advanced chips. Singapore’s foreign minister Vivian Balakrishnan went so far as to describe the American ban as “all but a declaration of a technology war”. Former US Treasury secretary Lawrence Summers has also described the American chip restrictions as a “de facto declaration of economic war” (against China), and added that it is a “disproportionate response”.
Chipmaking has been a new front in American-Chinese tensions, and now, with the aforementioned German and British decision, tensions are also escalating in Europe. Such European decisions are also the result of Washington’s pressure, according to Xiaomeng Lu, director of geo‑technology at Eurasia Group.
In February, amid the escalation of tensions between Beijing and Washington over Taiwan, I wrote on how Taiwan stands between the two superpowers in their technological competition. Amid the ongoing chip race, many different countries have introduced incentives to foster the semiconductors’ industry. Taiwan is the planet’s largest chip manufacturer and is also the center of Chinese-US tensions today. This is the ironic context of TSMC’s Arizona move.
It is increasingly difficult today to insulate industries from geopolitical disputes. Beijing aspires to become a tech superpower, something which American political elites will not tolerate. Although the Chinese semiconductor industry has been growing quite quickly, it still remains behind the cutting edge in chips, largely due to American efforts to block Chinese endeavors to acquire the necessary equipment and know-how.
However, the American economic war on Beijing in fact endangers the global microchip industry itself and increases the risk of butterfly effects, China being a key part of the globalized world. Moreover, while the US never had an intensive economic relationship with its Soviet rival during the old Cold War, China today remains the United States’ third largest market for exports. In addition, as historian and foreign-policy analyst Max Boot has remarked, a single factory in China, Foxconn, is reported to produce about half the world’s iPhones, for example. This being so, according to Boot, while Washington does not want to see any Western technology being “transferred” to the Chinese military, it can’t, on the other hand, endanger supply chains for chips and other vital parts.
Moreover, the so-called American “chip war” and its export curbs can in fact bring record losses for Taiwanese, Japanese and South Korean makers (all of these nations being US allies).
Washington’s aggressive subsidies and protectionism have arguably stopped the country from rejoining the Trans-Pacific Partnership (a trade agreement among 12 Asia-Pacific nations). Its Inflation Reduction Act in turn has alienated important allies such as Germany and France – the very states Washington counts on in its plans to counter China.
Harvard professor William Overholt has stated that today the US “wants everybody to join economic alliances” with them, while not giving anything in return. Meanwhile, ironically, Communist-Party ruled China, according to him, has promoted freer trade and investment around the world.
With the Belt and Road Initiative, among others, geoeconomics has been the very core of Beijing’s geostrategic approaches. Washington, in turn, has been dangerously weaponizing its economic and financial policies to “counter” China and Russia, also hurting close allies in the process. The irony is that the more the US employs economic leverage to aggressively coerce other states, the greater the incentive to come up with alternatives against Washington.
To sum it up, currently, the US is overextended and overburdened, trying to simultaneously encircle and contain both Moscow and Beijing. Its aggressive protectionism in turn has been enraging and alienating important allies, such as the EU and Taiwan. All of this signals the decline of the American superpower and of the US-led global order.






