Briefing Note: Russia’s Policies and Implications for APEC

Purpose

To inform APEC leaders of the strategic risks posed by Russia’s current foreign and economic policies and their potential impact on regional stability and economic cooperation.

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Key Observations

1. Militarisation and Geopolitical Assertiveness

   • Russia prioritises hard power over diplomacy, using the Ukraine conflict as leverage for global influence.
   • Increased military presence in the Arctic and Asia-Pacific signals readiness to escalate tensions, undermining regional security.

2. Economic Weaponisation

   • Energy exports remain a geopolitical tool, with infrastructure projects used to divide allies.
   • Despite extensive sanctions, Russia sustains its war economy through alternative trade networks, deepening global fragmentation.

3. Strategic Dependence

   • Russia’s “pivot to Asia” has led to structural reliance on China, limiting autonomy and raising long-term viability concerns.

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Implications for APEC

• Trade Disruption: Russia’s stance on sanctions and WTO mechanisms introduces friction into APEC’s consensus-driven model.
• Security Spillover: Militarisation risks transforming economic forums into arenas of strategic rivalry.
• Normative Erosion: Push for “multipolarity” challenges rules-based governance, creating uncertainty for smaller economies.

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Recommended Actions

• Reaffirm APEC’s Core Principles: Emphasise rules-based trade and economic cooperation.
• Strengthen Collective Resilience: Diversify supply chains and enhance energy security to reduce vulnerability.
• Engage with Caution: Maintain dialogue on economic issues while countering destabilising tactics through coordinated responses.

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Bottom Line:
Russia’s policies combine revisionist geopolitics, economic opportunism, and strategic dependency. APEC must navigate engagement carefully to safeguard stability and uphold its mission of inclusive, sustainable growth.

China wants to become the leading nation in international affairs

 

The Summit of Tianjin and the Shifting Global Order

Victor Ângelo’s article, "The reform of the world order is greater than China," published today 05/09/2025 in Lisbon's Diário de Notícias, analyses the Tianjin Summit of the Shanghai Cooperation Organisation (SCO), positioning it as a pivotal event in the geopolitical landscape. The author highlights a photograph of Xi Jinping and Vladimir Putin with Narendra Modi in the background, seeing it as a powerful symbol of a new international order. In this image, Xi is the dominant figure, while Putin is less prominent and Modi represents India's growing importance. The summit's location in Tianjin, a port city, also underscores the Chinese leadership's focus on international trade.

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Xi Jinping's Ambitions vs. the Role of the UN

Ângelo argues that Xi Jinping's "Global Governance Initiative," announced at the summit, is an attempt to position China's global policy as an alternative to the Western model. However, the author questions the sincerity of this proposal, suggesting that if China genuinely supported multilateralism, it would have prioritised the reform of the United Nations (UN) under António Guterres. The article expresses concern that Guterres was present at the summit and applauded an initiative that could threaten the UN's relevance.

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Geopolitical Tensions and India's Strategic Role

The summit is portrayed as a gathering of nations that oppose the established international order, largely in response to Donald Trump's "America First" policy. The author notes that Trump's approach ironically brought China and Russia closer and pushed India into their orbit. The article also points out Modi's clever political strategy: while attending the summit to strengthen ties with China and Russia, he first stopped in Japan to sign cooperation agreements. This, according to Ângelo, shows that Modi "knows how to play on multiple boards" and that the future of the world is being shaped in Asia, by Asia, and for all of Asia.

Take example from Asia

In the combat against the coronavirus, Europe should learn from the experiences of China, South Korea and Macau. They were confronted with huge challenges and have found the way to respond to them. They based their responses on massive lockdowns, extensive testing and social isolation for everyone. In the case of China, the approach was complemented by building new hospitals in incredibly short periods of time and the mobilisation of every possible resource to produce simple intensive care equipment, protection medical suits, and the appropriate masks. In all three cases, the success was a combination of extreme civic discipline with the right type of hospital treatment.

Europe is now at the door of major expansion of the disease. It should be ready to coordinate its response. Unfortunately, that’s not the case. But, at least, it should keep as many people out of the public space as possible, for a small number of weeks. It would see the difference.

Unfortunately, many people have not yet grasped the intensity of the menace. The leaders should be frank about it. They should use the right words to explain the possible impact of the disease. To say that they do not want to contribute to alarmism is not an acceptable response. Europeans can handle hard truths if they are told the full story. It is my conviction that the leaders need to agree on a common European-wide discourse about COVID-19 and talk to the citizens based on that agreed music sheet. A lot of the success has to do with people’s behaviour. They should be told what the consequences of good or bad behaviour are.

China's Day

The new China is much younger than Communist China. The one celebrating today, with an extraordinary show of military power and a strong emphasis on patriotism and loyalty to everything Chinese, and above all, to the authorities, was the older one. 70 years is a long time in the life of a regime. At that age, the big question is about the future: what kind of country will be there ten or twenty years down the line?

Crossing the line in Hong Kong

The key messages the Chinese government wants to put across are very clear: the demonstrators are violent; they have disrupted the operations of a key international airport for two days in a row; and brought chaos to the territory. In the opinion of the leadership in Beijing, such messages are essential to justify an armed intervention of Mainland forces in Hong Kong. Their content is further reinforced by the image of a powerless Hong Kong Administration. It is true that Carrie Lam, the HK Chief Executive, seems to have lost the sense of direction. She now cuts a very sorry figure. But in the case of the HK Police, I see a deliberate Beijing move behind the erratic tactics the Police is following. The aim is to show that the territory’s Police are out of their depth. And that would be another strong justification for Mainland to cross the border line.

The odds of an intervention are now very high. Any further escalation of the crisis, and the Mainland boots will walk around the Victoria Harbour.

Kim's vital agenda

You meet, negotiate and believe in Kim Jong-un at your own risk. And that’s a very high level of risk, I should add. Nevertheless, it must be done, and surely, with no illusion about the person who is sitting on the other side of the table.

Kim’s ultimate objective is to remain in power. He has no other option, if one considers the criminal and violent actions that he has behind him. Power means impunity. Absolute power means total impunity. In such circumstances, he is determined to decisively tackle anything that might challenge his goal.

I think he believes that the vital threat to his continued control of the North Korean system comes from the other side of the border, from South Korea. Not because of South Korea’s military might, no. It is because of the economic success and the type of society that South Korea represents. That, sooner or later, will end up by having a major impact on the attitude of the population in the North. It has the potential to be the key source of instability.  

Therefore, he wants to keep some kind of superiority vis-à-vis the South. And the only one he can bet on is on the military side. But for that, he must get the Americans out of South Korea. That’s what he is trying to achieve.

At the same time, he is also looking for an end to the economic sanctions. He knows that the sanctions bite. They make the comparison between the standards of living in the North and the South even more dangerous.

These are two elements that must remain at the centre of any future round of negotiations. And please, no illusions, no unnecessary warmth. 

Hanoi or Venezuela: better, Hanoi!

For the US leadership, all the attention must be focused on the Hanoi summit. The meeting between President Trump and Chairman Kim is the week’s highlight. It must be seen and reported as excellent. Venezuela cannot be a distraction. There will be some diplomatic tightening, some additional isolation of Nicolas Maduro, a couple or so of rambunctious statements and sound bites, but nothing else. Nothing that could steal the headlines from Donald Trump in Hanoi.

Unless the Hanoi meeting goes wrong. It’s not expected, it has been prepared with great attention to sound good. But we never know. It could derail. Then, the usual suspects will be looking for a distraction, for other news that could grab the world’s attention. And that kind of news could be some foolish action regarding the situation in Venezuela.

Saudi Arabia´s military muscle

Yesterday Saudi Arabia launched the military exercise called Northern Thunder. Most of us, in the West, did not notice it. As we did not realise that military contingents from around twenty states are participating in this major deployment. Among them, there are several African States – Chad, Morocco, Mauritania, Senegal, Sudan, Tunisia are some of them – as well as Asian countries, including Pakistan and Malaysia. Many of these soldiers had to be brought to Saudi Arabia at a very high cost. It is not cheap to deploy troops. I am sure Saudi Arabia has contributed quite a bit to make the voyages possible.

Beyond the military training, I see a strong political message. And I think it is important to keep that in mind.