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Showing posts with label Taiwan. Show all posts
Showing posts with label Taiwan. Show all posts

Monday, December 25, 2023

How Malaysia is finding its way out of the middle-income trap

It has taken the slow but steady route while addressing an ethnic incongruity


. Kuala Lumpur's new landmark, Merdeka 118, is a symbol of the country's growing affluence. (Nikkei montage/Source photos by Hiroki Endo and Reuters) 

Malaysian Prime Minister Anwar Ibrahim vows to focus on achieving faster growth.

KUALA LUMPUR -- Asia's megacities often undergo surprising metamorphoses in short amounts of time. Kuala Lumpur is one such example. When I visited the city in late October, I was amazed at how much it had modernized since I visited nine years ago.

Urban rail lines now crisscross the city, with new shopping malls sprouting everywhere. Particularly eye-catching was Merdeka 118, a 118-story skyscraper completed earlier this year. The 678-meter tower -- the world's second-tallest after the Burj Khalifa in Dubai -- is a symbol of the country's growing affluence. Its spire was designed to evoke the image of Tunku Abdul Rahman, Malaysia's first prime minister, raising his hand as he proclaimed national independence in 1957.

Malaysia over the past few years has experienced a rapid turnover of prime ministers, though the political situation seems to have stabilized. On Dec. 5, about a year after the launch of his government, Prime Minister Anwar Ibrahim stressed his intention to push for faster economic growth. "It's time to focus on developing the economy," he said in an interview with a local broadcaster.

Anwar's government in July unveiled its 10-year Madani Economy plan and the National Energy Transition Roadmap. These were followed in September by the midterm review of the 12th Malaysia Plan and the New Industrial Master Plan 2030. In October, Anwar's government launched its Hydrogen Economy and Technology Roadmap.

"It is not clear how these relate to one another," a Japanese businessperson said. Still, it seems clear that the government's main goal is to achieve annual growth of over 5.5%, a target specified in the Madani plan.

A view of Kuala Lumpur's skyline. Given Malaysia's relatively young population, domestic demand is expected to keep expanding. © Reuters 

Malaysia's gross domestic product grew 8.7% last year, the highest in 22 years, and growth for this year is estimated at 4%, despite the global slowdown. Given its relatively young population, domestic demand is expected to further expand. The country's semiconductor and other sectors are also attracting foreign direct investment as alternative supply chain bases amid mounting U.S.-China tensions.

The country's per capita gross national income was $11,780 in 2022. If the economy grows 5.5% per year and there is no sharp depreciation of the ringgit against the dollar, it could shed its middle-income status, as defined by the World Bank, in two or three years, joining the ranks of high-income nations.

Graduation has been a long time coming.

Malaysia became an upper-middle-income country in 1996, according to a working paper that Jesus Felipe, a professor at De La Salle University in the Philippines, wrote in 2012, when he was with the Asian Development Bank. Felipe reasons that upper-middle-income nations become ensnared in the middle-income trap if they are unable to move up for more than 15 years. Once trapped, countries suffer stagnant growth, sandwiched between technologically advanced developed nations and developing countries abundant in cheap labor. The description fits Malaysia's situation.

To see why Malaysia could not extricate itself from the trap for so long, one needs to look at its history.

Twelve years after the country gained its independence in 1957, a racial riot engulfed the capital. Malays accounted for nearly 70% of the population, but ethnic Chinese, who made up less than 30%, controlled the economy. The strain of this incongruity led to the clash, resulting in about 200 deaths.

To prevent a recurrence of the tragedy, the government began to address the economic disparity and in 1971 adopted a policy called Bumiputera (sons of the soil) -- a type of affirmative action for ethnic Malays. The policy treats Malays favorably in all aspects of life, including school admissions, employment and even stockholding.

The country's ethnic Chinese are traditionally considered to be strong in commerce and industrial activities. "If we recruit people by ability alone, many could be Chinese," an executive at a Japanese company said.

By trying to fix the racial imbalance artificially, Bumiputera is often cited as a source of inefficiency, but it has its merits.

"If the government had not provided elementary and secondary education to Malay villagers and helped them migrate to cities and find jobs in the commercial and industrial sectors, the country would have suffered a serious labor shortage in the early stage of economic development," said Satoru Kumagai, director of the economic geography studies group at the Institute of Developing Economies of the Japan External Trade Organization. It can be said that Bumiputera's goal is to strike an optimal balance between distribution and growth.

A shopping mall in Kuala Lumpur. Malaysia's Bumiputera policy has helped educate young Malay villagers and bring them to cities hungry for workers. (Photo by Toru Takahashi)

Mahathir Mohamad, who in 1981 became Malaysia's fourth prime minister, shifted the national focus to growth by adopting the Look East policy, which sought to emulate Japan's economic success. The country also began to actively attract more foreign capital. In 1991, Mahathir launched Vision 2020, the goal of which was to become a high-income country in 30 years.

"His greatest achievement was to set a goal of becoming a high-income country," said Abdul Razak Ahmad, founding director of Bait Al Amanah, a private think tank. He "thus changed the people's mindset, encouraging them to have a can-do attitude."

Malaysia enjoyed annual growth of nearly 10% for 10 years before the Asian financial crisis hit it hard in 1997. Afterward, its growth slowed to around 5% to 6%. Anwar, then the deputy prime minister and finance minister, clashed with Mahathir over how to cope with the crisis and was dismissed.

When Anwar this year announced the Madani plan, he said the country had been "caught in a vicious cycle of high costs, low wages, low profits and a lack of competitiveness" since the 1997 crisis. Anwar clearly sees the plan as a roadmap to push the country into the high-income category during his tenure -- something his old enemy could not achieve.

The reason for Malaysia's inability to pull itself out of the middle-income trap becomes clear when looking at the economic development of Taiwan and South Korea.

In terms of population, Taiwan and South Korea are not much different from Malaysia. Taiwan is home to 23 million, South Korea to 51 million and Malaysia to 33 million.

In 1981, when Mahathir became prime minister, the three were not far apart in per capita GDP. Taiwan's was at $2,691, South Korea's at $1,883 and Malaysia's at $1,920.

Taiwan became an upper-middle-income economy in 1986, followed by South Korea two years later, according to Felipe. Taiwan stepped up to high-income status in 1993, with South Korea following in 1995. It took just seven years for the two to move from upper-middle-income to high-income status.



Unlike Malaysia, they did not fall into the trap. Last year, Malaysia's per capita GDP was $12,465, far below Taiwan's $32,687 and South Korea's $32,418. Several factors were at play here.

First, Taiwan and South Korea do not have complex ethnic problems that cause them to pursue difficult socioeconomic policies. Second, the two had no choice but to industrialize as they are not blessed with natural resources like Malaysia, which is rich in petroleum, natural gas and palm oil.

Third, democratization in Taiwan and South Korea began shortly before the end of the Cold War in 1989, allowing them to catch the waves of globalization and information technology. Taiwan democratized in 1986 and South Korea in 1987.

Malaysia has held democratic elections since it gained independence, but the country was under a "developmental dictatorship" that prioritized economic development while restricting political freedom. Malaysians had to wait until 2018 for their government to hand power to another party for the first time.

Fourth, internationally competitive businesses like Taiwan Semiconductor Manufacturing Co., Hyundai Motor and Samsung Electronics have driven growth in Taiwan and South Korea. Malaysia, meanwhile, has failed to nurture such companies with an economy that instead has been led by government-affiliated entities. Its automobile, electrical and electronics industries have depended on foreign businesses.

Grab Holdings, whose ride-hailing superapp is now ubiquitous across Southeast Asia, was founded in Malaysia but quickly relocated its head office to Singapore to facilitate fund-raising and other benefits.

On the whole, Malaysia's lack of economic dynamism was to blame for its lower growth curve.

Still, it should be noted that Malaysia has avoided the so-called resource trap, in which the presence of abundant resources holds back a country's industrialization. Malaysia's leading exports are electrical and electronic products, which account for 40% of its total exports. It tops the U.S. and Japan in terms of exports of semiconductor-related products by value.

A worker inspects chips at Unisem's semiconductor packaging plant in Ipoh, Malaysia, in October 2021. It is becoming imperative for Malaysia to boost investments in higher value-added upstream industries. © Reuters 

This trap can be seen in Saudi Arabia, which in 2016 drafted its Vision 2030 strategy to reduce its dependence on natural resources. Malaysia achieved 40 years ago the industrialization Saudi Arabia is now pursuing.

Said Kumagai: "Malaysia is different from East Asia's elite economies like Japan, Taiwan and South Korea, and from countries with unique strengths such as Singapore, Hong Kong and oil-producing Gulf states. If it achieves high-income status, it will be the first 'normal' country to do so."

Still, challenges abound. In chip manufacturing, Vietnam and India are catching up fast, making it imperative for Malaysia to boost investments in higher value-added upstream industries. Given the accelerating trend toward carbon neutrality, demand for its fossil fuels will likely decline.

Yet, while balancing growth and stability, the multiethnic country with an average age of 30 has succeeded in making slow but steady progress toward overcoming the middle-income trap. Its industrial success will certainly serve as a beacon for other emerging and developing countries in the Global South.


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Sunday, January 29, 2023

U.S. wants others to fight war with China, says ex-diplomat

THE U.S. WANTS WAR WITH CHINA – but with other people doing the fighting, a whistleblowing Australian diplomat revealed this week.

“The United States is NOT preparing to go to war against China: the United States is preparing Australia to go to war against China,” said John Lander, a former senior ambassador.

He believes China has no intention of invading the southern continent. But a different narrative was foremost in people’s minds because the Americans have a tight grip on Australian government and media, he argued.

BUT AUSTRALIA IS BEING INVADED

Yet there was a hidden irony that people weren’t seeing. 

These IS a country making a massive push into Australia: that country was the United States, not China. Australia’s citizens were “unaware or uncaring that almost every major Australian company across resources, food, retail, mass media, entertainment, banking and finance sectors, has majority American ownership,” Lander said. 

 John Lander 

“Australians fret about China buying up the country but American investment is ten times the size,” he added.

Comments by Lander, one of the country’s top China experts, received wide attention from citizens in Asia and Australia – but virtually no coverage from the media. The ambassador is retired and unafraid to speak openly.

TRAINED BY CIA

Citizens of his country, Lander said, were continually warned about China through reports in the media from the Australian Strategic Policy Institute, or ASPI. But it was really “the American Subversive Propaganda Institute”, Lander said. “It has lobbyists from American arms manufacturers on the board, which is headed by an operative trained by the CIA.” ASPI has taken a leading role in spreading the Chinese “concentration camps” story, along with Radio Free Asia, which presents itself as an Asian journalism group, but is actually a CIA-founded operation based in Washington DC.

MASSIVE ARMS SPENDING

The former ambassador’s comments, made in an Salon interview on Sunday, January 22, 2023, are in line with those of other whistleblowers who note that the United States has been working to militarize Australia, Taiwan, South Korea, and Japan, while western media demonizes China. These two processes together are triggering massive spending on arms in the region, and creating the conditions for war—which would further boost the arms industries in the west.

Lander said that the eight nuclear-powered submarines Australia had been prodded to buy from America for defence were actually for “hunter killer operations in the Taiwan strait”.

LOSS OF SOVEREIGNTY

John Lander was Australia’s Director of the China Section of the Department of Foreign Affairs on three separate occasions, and personally negotiated Consular relations between Australia and China, having worked as a bridge between the two nations for the best part of 30 years.

Lander said he had become increasingly alarmed at the spreading of the notion that war against China is “inevitable”.

While mainstream commentators in Australia took an anti-China stance and pushed the line that that militarization “enhances Australian sovereignty”, the truth was that “these arrangements arguably accede Australian sovereignty to America”, he said. 

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 From conspiracy theories about the origins of the COVID-19 to the claims of "genocide" in Northwest China's Xinjiang Uygur Autonomous Region, many external forces are spreading outright lies in an attempt to smear and ultimately contain China. This section aims to dig into hot-button issues and dissect lies and conspiracy theories with GT's own investigation and objective reporting. 


 

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Thursday, July 21, 2022

Participating in the military conflict in the Taiwan Straits will only mean suicide for US troops

Tension escalates hours ahead of Pelosi's potential Taiwan visit as PLA remains ...

The intensity of the situation across the Taiwan Straits has drastically escalated as the military deployment from the Chinese mainland, ...

China sternly warns Biden admin not to arrange Pelosi's visit to Taiwan, ... The Chinese Foreign Ministry and the People's Liberation Army (PLA) are keeping up the pressure on the US over House .
 

Washington will not send troops if there is a military conflict in the Taiwan Straits, because it knows that the US military cannot beat the PLA there, and participating in the war will only mean suicide for the US troops. 

 Trump’s defense chief visits Taiwan for further arms lobbying, with prospect of fat ‘welcoming fees’

Mark Esper Photo: Xinhua

Mark Esper Photo: Xinhua

 

Mark Esper, the former US defense secretary under the Trump administration, landed on the island of Taiwan on Monday, three days after the US government approved a proposed $108 million arms sales of technical and equipment support to the Taiwan authorities, the fifth of its kind under the Biden administration.

Chinese mainland experts said despite having been out of the US government for about two years, Esper, who has close ties to the US military-industrial complex, will push for the arms package that Republicans want to see on the island of Taiwan. Esper could also further expand his political clout and obtain generous financial support from the Taiwan authorities.

Heading a three-member Atlantic Council delegation, Trump's defense chief is joined by Barry Pavel, senior vice president and director of the US-based think tank Atlantic Council, and Stefano Stefanini, former permanent representative of Italy to NATO, Taiwan-based media reported.

During his visit from Monday through Thursday, Esper is scheduled to meet with Taiwan regional leader Tsai Ing-wen on Tuesday, local media said. The delegation will reportedly interact with think tanks and businesses on the island and exchange views on the security and economic situation in the Indo-Pacific region.

Taiwan media said it's the fourth Taiwan visit by the Atlantic Council since Tsai took office in 2016, following previous trips in 2016, 2017 and 2018. Analysts said given that the Washington-based think tank is traditionally more about policy research on US-Europe collaboration, China should be wary of the US efforts to push its allies in Europe or NATO to focus on defense and security in the Taiwan Straits.

Dubbed "Taiwan's loyal friend" by the island's external affairs authority, Esper has intensified his anti-China stance since leaving office. At a think tank event in June, he hyped the "China threat" and questioned the efficacy of the US' "one-China policy."

Chinese Foreign Ministry spokesperson Wang Wenbin expressed strong opposition to the latest US arms sales to Taiwan island.

The US arms sales to China's Taiwan region seriously violate the one-China principle and the stipulations of the three China-US joint communiqués, especially the August 17 Communiqué of 1982. The sales gravely undermine China's sovereignty and security interests, and severely harm China-US relations and peace and stability across the Taiwan Straits, Wang said on Monday.

We urge the US side to abide by the one-China principle and the stipulations of the three China-US joint communiqués, revoke the above-mentioned arms sales plan, stop arms sales to and military contact with Taiwan and stop creating factors that could lead to tensions in the Taiwan Straits. China will continue to take resolute and strong measures to firmly defend its sovereignty and security interests, Wang said.

Chinese Ministry of National Defense on Monday also issued a stern warining to the US over the provocative move, saying that the People's Liberation Army will take resolute and strong measures to firmly defend China's sovereignty and security interests.

Diao Daming, an associate professor at the Renmin University of China in Beijing, told the Global Times on Monday that Esper has close ties to US military-industrial interests and to Republican elites, so his Taiwan trip could be seen as an attempt to make further arms sales.

Before becoming US defense secretary, Esper served as US secretary of the army from 2017 to 2019. A West Point graduate and a top lobbyist, Esper served as deputy assistant secretary of defense for negotiations policy in George W. Bush's administration from 2002 to 2004. In July 2010, he was hired as vice president of government relations at defense contractor Raytheon.

Analysts speculated that Esper's visit may reflect, to some extent, the divisions between US military interests and the Biden administration over arms sales to the island of Taiwan, given that sales to the region during the Trump administration were more about "heavy and large" weapons, while the Biden administration's sales have so far focused more on system maintenance and around the concept of building up asymmetric capacity.

Esper is not a member of the Biden administration, and his remarks will be a more direct representation of the ideas of the US military-industrial complex and, to some extent, of the Republican Party, Diao said. "These ideas may be different from the White House's, as selling the big stuff is always more profitable for arms dealers," he noted.

The US House of Representatives on Thursday passed an annual defense policy bill for fiscal 2023, approving a $37 billion boost to the budget proposed by President Joe Biden in March. US lawmakers cited "threats" posed by Russia and China for the budget increase, which also contained several Taiwan-related bills with the aim of reinforcing relations.

"The communications Esper makes on his trip could then be reflected at the legislative level by Republicans… It is possible that Republicans will add new amendments about arms sales to Taiwan to the bill, given it still has to be passed in the Senate," Diao said.

Another analyst who requested not to be named, told the Global Times on Monday that despite Esper's distance from the core of US politics, visiting Taiwan is a sure bet for him.

Esper could retain his personal influence through contacts with top officials from the Taiwan authorities, the analyst said.

In addition to enjoying a high-level tour reception, Esper could also earn tens of thousands of dollars, based on the appearance fee that his ex-colleague and former US secretary of state Mike Pompeo earned in Taiwan in March, they said.

According to Taiwan media, Pompeo's appearance fee was $150,000, while other fees including flight tickets and reception came to about $184,000. 

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 Biden admin’s 5th arms sale to Taiwan slammed for double dealing

A line of vehicle-mounted howitzers attached to a combined-arms brigade with the army under PLA Eastern Theatre Command open fire during a live-fire exercise on June 16, 2022. Photo:China Military

A line of vehicle-mounted howitzers attached to a combined-arms brigade with the army under PLA Eastern Theatre Command open fire during a live-fire exercise on June 16, 2022. Photo:China Military

 

 The US on Friday (US time) announced the fourth arms sale to the island of Taiwan in 2022 - the fifth total under the Joe Biden administration - despite the Taiwan question has been repeatedly mentioned in several recent China-US high-level meetings which showed consensus for avoiding escalating tension.

Chinese mainland experts on Saturday slammed the latest US deal featuring a package involving spare parts for tanks and combat vehicles plus technical assistance worth $108 million, saying it exposed the US' two-faced nature and its failure to honor its own words.

The US State Department has approved the possible sale of military technical assistance to Taiwan for an estimated cost $108 million, the US Defense Security Cooperation Agency said in a press release on Friday.

The proposed sale will contribute to the recipient's goal of maintaining its military capability while further enhancing interoperability with the US and other allies, according to the press release.

The figure of $108 million is an unreasonably high price for just spare parts and intangible technical assistance, and it is obvious that the US arms firms are again leeching on Taiwan for its money, a Beijing-based military expert who requested anonymity told the Global Times on Saturday.

Taiwan's Democratic Progressive Party authority is only paying protection money for things that cannot help them gaining a chance standing up to the Chinese mainland's People's Liberation Army (PLA), the expert said.

The approval of the arms sale came after a sequence of frequent interactions between senior officials from China and the US since June, including those between Chinese State Councilor and Foreign Minister Wang Yi and US Secretary of State Antony Blinken, as well as Chief of the Central Military Commission Joint Staff Department General Li Zuocheng and Chairman of the Joint Chief of Staff General Mark Milley.

Both sides underscored consensus on avoiding escalating confrontations, and the Taiwan question was repeatedly mentioned especially during meetings between military officials, observers said.

But the latest US arms sale to Taiwan, as well as a US warship's recent trespassing into Chinese territorial waters in the South China Sea, exposed that the double-faced US is only offering lip services to China, analysts said.

The US' strategic goal is very clear now, which is to contain China's development. This means the promises that the US made during high-level talks are not trustworthy, and it will bound to continue provoke China on China's core interests including the Taiwan question, Song Zhongping, a Chinese mainland military expert and TV commentator, told the Global Times on Saturday.

China no longer has unrealistic illusions over the US, and the PLA is preparing for the worst-case scenario in which a cross-Straits conflict would take place in order to safeguard national sovereignty and territorial integrity, analysts said.

Some 10 PLA warplanes, including fighter jets and bombers, entered the island of Taiwan's self-proclaimed southwest air defense identification zone on Friday, the island's defense authority said in a press release on the same day. 

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Don’t say we didn’t warn you – Symposium of China’s top think tank sends classic, pre-war warning to provocative Pelosi

 

Don't say we didn't warn you – Symposium of China's top think ...

'Don't say we didn't warn you!' - a phrase that was used by the People's Daily in 1962 before China ...

 

US better clear the 'mine' of Pelosi's Taiwan trip beforehand: Global Times editorial “Those who play with fire will perish by it.” This was said to Pelosi and the Taiwan secessionist forces that support he

If Pelosi goes to Taiwan, it will be a huge historic mistake for Washington: Global Times editorial

Unlike Washington's opportunistic probing, all options are clearly on the table for the Chinese mainland. The noose around the neck of the "Taiwan independence" secessionist forces is tightening, and Pelosi has one foot on the stool of the gallows. If Pelosi, who has always been fond of playing tough on China, wants to insist on this way, we will definitely prepare sufficient "consequences" for her. 

 Pelosi could spark 'more serious' Taiwan Straits crisis; China-US ties would fall off cliff if Washington intended to crash 'guardrails'

Once again, media has reported that US House Speaker Nancy Pelosi plans to visit Taiwan in August after an aborted April visit to Asia that might include a trip to China's island due to testing positive for COVID-19, with analysts saying that if she intends to make a blatant provocation against China, she would spark a much more dangerous incident than the Taiwan Straits Crisis in 1996, and it would cause a huge setback for China-US ties. 

 

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Australian Defense Minister Richard Marles Photo: AFP

Sunday, June 12, 2022

Indo-Pacific Strategy ‘fanning confrontation’ as US defense chief made ‘most barefaced’ Shangri-La speech attacking China a


 

Chinese State Councilor and Defense Minister Wei Fenghe said on Sunday that it would be a historic and strategic mistake to insist on taking China as a threat and adversary, or even as an enemy.

 

  

 

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Shangri-La Dialogue: Chinese military official calls US Defense Secretary's speech a "confrontation"

 

 

 China will fight to the very end to stop Taiwan independence: Defence minister | Shangri-La Dialogue

China will "fight to the very end" to stop Taiwan from declaring independence, Chinese Defence Minister Wei Fenghe said in a speech at the Shangri-La Dialogue on Sunday (Jun 12).

"We will fight at all cost and we will fight to the very end. This is the only choice for China," General Wei said.

His speech came a day after US Secretary of Defense Lloyd Austin said China was becoming "more coercive and aggressive" in its approach to its territorial claims in the region.

On Sunday, General Wei said Beijing firmly rejects the US' "smearing accusations and even threats" against China.

Global affairs should be handled through consultation by all stakeholders instead of being dictated by just one country or a small group of countries, he said, adding: "No one or no group of countries should impose its will on others or bully others under the guise of multilateralism."

General Wei said the United States' Indo-Pacific strategy is an attempt to build an exclusive small group in the name of a free and open Pacific to "hijack countries in the region and target one specific country". It is a strategy to "create conflict and confrontation to contain and encircle others", he said. 

 Chinese delegation says Indo-Pacific Strategy ‘fanning confrontation’ as US defense chief made ‘most barefaced’ Shangri-La speech attacking China 

US Defense Secretary Lloyd Austin speaks at the Shangri-La Dialogue summit in Singapore on June 11, 2022. Photo:AFP

US Defense Secretary Lloyd Austin speaks at the Shangri-La Dialogue summit in Singapore on June 11, 2022. Photo:AFP

After Ukraine, US-led NATO wants to turn Asia Pacific into a new powder keg. Illustration: Carlos Latuff

After Ukraine, US-led NATO wants to turn Asia Pacific into a new powder keg. Illustration: Carlos Latuff

 

US' Indo-Pacific Strategy is aimed at maintaining US hegemony, creating divisions and fanning confrontation, the Chinese delegation said, refuting US Defense Secretary Lloyd Austin's speech at the IISS Shangri-La Dialogue on Saturday as Austin took advantage of the stage to propagandize US' Indo-Pacific Strategy and to point finger at China.

Zhang Zhenzhong, deputy chief of the Joint Staff Department in the Central Military Commission, told reporters on Saturday at the 19th Shangri-La Dialogue in Singapore, that the Indo-Pacific Strategy is designed to trap the Asia-Pacific region into a geopolitical game and confrontation as it tries to form a small circle by roping in some countries to incite against others. It seriously impacts the ASEAN-centered regional cooperation architecture and seriously harms the overall and long-term interests of countries in the region, he added.

"The US has already turned the Middle East and Europe into a mess, does it want to mess up Asia-Pacific next?" Zhang asked, adding that this is absolutely not allowed.

Zhang said the US' strategy is designed to destroy peace. The mainstream voice of Asia-Pacific countries is peaceful coexistence and win-win cooperation, but the US, in contrast, advocates competition between major powers and creates military confrontation, sending warplanes to showcase its military might in the South China Sea, launching military drills with allies, which all created tensions in the region. In conclusion, Zhang said that strategy served US' own interests against the common will of the regional countries, and stressed that for these reasons it must not succeed.

Austin on Saturday gave an hour-long speech themed "Next Steps for the United States' Indo-Pacific Strategy," in which he called the strategy "our priority theater of operations" and "at the heart of American grand strategy."

He also openly criticized China for being "coersive and aggressive."

Austin specifically raised the Taiwan question. "The stakes are especially stark in the Taiwan Strait," he said, adding that US' policy on Taiwan was to remain opposed to any unilateral changes to the status quo. "Our policy hasn't changed. But unfortunately, that doesn't seem to be true for the PRC," Austin noted.

Austin's rhetoric can be translated as the US opposes China's reunification, Song Zhongping, a Beijing-based military expert, told the Global Times.

With this is mind, Song said that Pentagon and the White House are attempting to internationalize and complicate the Taiwan question, which is a matter of China's domestic affairs.

This mentality has been refuted by China in multiple occasions, including during the face-to-face meeting between China's State Councilor and Defense Minister Wei Fenghe and Austin in Singapore on Friday.

There is only one China, and Taiwan is a sacred, inalienable part of China's territory, Wei told Austin, noting that if anyone dares to separate Taiwan island from China, the Chinese military will not hesitate to fight, and will resolutely crush any "Taiwan independence" attempts at all cost to firmly safeguard national sovereignty and territorial integrity.

On Saturday, Zhang also responded to Austin's hype over Taiwan question. Taiwan question is China's domestic affairs, the one-China principle is the political foundation of China-US ties, on which successive US governments have made clear commitments. President Joe Biden also stated that he does not support "Taiwan independence," but the US' words are obviously not matched by its deeds, and Washington has kept playing the Taiwan card, severely obscuring and hollowing out the one-China policy, Zhang added.

Zhang said that the Taiwan question can most likely lead China-US ties to conflict and confrontation. If not handled properly, it will have a subversive impact on the relationship between the two countries. There is only one China in the world, Taiwan is an inalienable part of China's territory, and the government of the People's Republic of China is the only legitimate government representing the whole China. This is the only correct understanding of "one China." The reunification of China is the aspiration of Chinese people, and the national rejuvenation is unstoppable. The Chinese People's Liberation Army (PLA) will stand ready to defend the country's sovereignty, security and territorial integrity at all costs.

Hyping PLA's intercepts

"We've seen an alarming increase in the number of unsafe aerial intercepts and confrontations at sea by PLA aircraft and vessels," Austin said in his speech.

In response to the remarks, Zhang said at the media briefing that the incident occurred near the maritime and airspace of China's Xisha and Nansha islands, not in the adjacent sea and airspace of US allies. The actions taken by the Chinese military are necessary measures to deal with the provocations, and are reasonable, safe and professional.

Prior to the Shangri-La Dialogue, China has already denounced Australian and Canadian "disinformation" over jet encounters. The two countries, however, turning a blind eye to the warnings from the Chinese side, kept carrying out close-in reconnaissance and provocative activities by surveillance planes in East and South China Seas. "This is a dangerous act against China's national security and the safety of Chinese and Canadian front-line personnel," Chinese Foreign Ministry Spokesperson Zhao Lijian said at a Regular Press Conference on June 6.

These days, there has been analysis that the reason why Canada and Australia have not stopped hyping up the case is to create topics for the ongoing dialogue over Asian security, taking "China threat" theory to a new level.

He Lei, lieutenant general and former vice president of the PLA Academy of Military Sciences, who is attending the Shangri-La Dialogue, told Global Times that Austin's accusations against PLA's aircraft interception obviously aimed at endorsing Canada and Australia, reinforcing US-led small circles. Austin talks about "common vision" in Indo-Pacific region, but what Washington has shown is its clear-targeted and exclusive behaviors, He added.

Most barefaced accusations

Austin also hyped up territorial disputes in the Indo-Pacific region, naming East and South China Sea issues, and border disputes with India. "Indo-Pacific countries shouldn't face political intimidation, economic coercion, or harassment," Austin said. "We'll do our part to manage these tensions responsibly," he added.

Lieutenant General He said Austin's speech is the most blatant and most comprehensive slander against China compared to previous US defense chiefs' remarks at the summit, as this is the first time that a Pentagon chief raised Taiwan question, the South China Sea, the East China Sea issue, and China-India border dispute all at the same time.

Zhao Xiaozhuo, a research fellow at the Academy of Military Sciences of the PLA, told the Global Times that US real intention is to boost its alliance system, mobilizing its allies to maintain the US' versions of rules-based international order, shaping China's peripheral environment, piling enough pressure on China and eventually realize the containment of China's emergence.

Observers say Austin's speech mirrors that the US opposes everything China does to safeguard its own national security and interests. And it is largely due to incitement of outside forces, especially the US and its allies, contradictions and disputes in Indo-Pacific region come to where it is today.

By hyping up tensions and so-called China threat, the US is trying to drive a wedge between China and regional countries, while kidnapping more countries to its side to coordinate with its Indo-Pacific Strategy. And the US could paint itself as "entitled" to play the role as an arbitrator of the region, far away from its own soil, and take Asian affairs under its control, Wei Dongxu, a Beijing-based military expert, told the Global Times.

However, most Asian countries do not want to take a side in major power games. During the 2019 Shangri-La Dialogue, Singaporean Prime Minister Lee Hsien Loong raised concerns, "Unfortunately, when the lines start to get drawn, everybody asks: Are you my friend or not my friend? And that makes it difficult for the small countries."

On the Taiwan question, the majority of regional countries refuse to dance to the US tune, as they are well aware that the US is an outsider, and has no right to intervene in China's domestic affairs, Wei said.

Hegemonic mentality

During the speech Austin brought up the so-called rules-based international order to cover US intentions. He took the Russia-Ukraine conflict as an example. "The Ukraine crisis poses some urgent questions for us all... And I am here because the rules-based international order matters just as much in the Indo-Pacific as it does in Europe," he said.

This is an arrogant, hegemonic mentality, Wei told Global Times. Wei said the so-called rules are not at all fair and square rules which are accepted by the international community, but a US-dominated one, in which the US is the one and only boss and other has to listen to it.

The Ukraine crisis is a proof that US-led rules have caused great harm to US allies and Europe as a whole. Not to mention the emerging energy and food crisis, increasing European countries are losing their diplomatic independence and autonomy, experts said.

During the ongoing Summit of the Americas, questions toward US-led rules-based orders are surfacing. It signals that be it Indo-Pacific regions or wider range of the international community, hypes of the US over so-called tensions will find fewer countries to join in the chorus, Wei said.

Although the US has this intention to shape events, and it has some followers like Japan, Australia and those who are far from the region like the UK and Canada, it's plan won't be realized, said Lü Xiang, an expert on international relations and US studies at the Chinese Academy of Social Sciences.

"Only the countries with enough power and strength, as well as the support from the most regional countries, are able to shape the strategic environment in a specific region. In the Asia-Pacific region, the US is not such a country, but China is," he said.

Although Austin outlined some ambitious plans in his speech, but it's questionable to all regional countries that to what extent the US can make its plan come true, experts said.

The countries named by Austin, Indonesia, Singapore and Vietnam all have stable and friendly ties with China. Even if there are some differences or disputes, they prefer to solve the problems with China rather than be blindly used by the US to pay for its costly confrontation with China, said analysts. 

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