Are we getting closer to a big war?

The world smells dangerously like gunpowder 

Victor Angelo

The Munich Security Conference, an annual event now celebrating its 60th edition, begins today and runs until Sunday. As has become customary, it is a high-level meeting. This time, it will feature the participation of around 50 Heads of State and Government, another hundred ministers and a good number of leaders of international organizations, academics, thinkers and journalists of international importance.

The report that serves as the basis for this year's conference makes a diagnosis of the main ongoing conflicts and, in summary, suggests two conclusions. First, geopolitical competition continues to worsen, now reaching a level of intensity and complexity unprecedented since the creation of the United Nations. Second, the reestablishment of international cooperation must be seen as an absolute priority. Only in this way will it be possible to resolve the most dangerous challenges, which in reality know no borders and have an impact that cannot be ignored. It is a positive recommendation, in a report that is, in essence, pessimistic.

When reflecting on 2024, the rapporteurs particularly draw attention to the growing risks in four regions of the globe. We are told that the international scene has more fires than firefighters, that there is an accumulation of serious crises to be resolved and an international system that is no longer respected. It's a clear question: instead of all of us winning, would we all rather lose?

One of these regions is Eastern Europe. The geopolitical vision that prevails in the Kremlin is a threat that must be taken seriously. It consists of increasing arrogance and aggressiveness, based on ancient practices of first inventing conflicts with neighbors seen as rivals, and then trying to resolve them with swordplay. My reading of this region is familiar: either Russia withdraws and recognizes the sovereignty of Ukraine, or what is now happening in that country will end up spreading to others in the region. A crisis of this kind would bring immense problems to the unity of NATO and the major countries of the Western world. In democratic contexts, these alliances are more fragile than they might seem.

In the Middle East, that's a powder keg. It is a region of great fractures, where xenophobia and the absurdity of decisions taken in the 20th century are added to cultural and religious hatred, and a multiplicity of borders that do not respect historical identities and give way to nations without homogeneity and without resources, to in addition to oil and gas.

What is conventionally called the Indo-Pacific is another problematic area. It demands increasing attention, as it could be the theater of a major conflict surrounding the issue of Taiwan and beyond. Xi Jinping has just been reappointed for the third time as leader of the single party and as President of China, for new five-year terms. At the end of these terms, he will be 74 years old and no one knows if the conditions will exist for him to be re-elected again. Now, in my opinion, Xi wants to go down in history as the leader who managed to subdue the Taiwanese rebellion. If that is indeed his ultimate ambition, it is very likely that military action against Taiwan will take place before 2027. And if Trump is in the White House, distracted by pursuing his internal adversaries, starting with the Biden family, Xi could conclude that The time has come to step forward and inscribe your name at the top of the list of heroes of communist China.

The Sahel forms the fourth region of deep insecurity. At the moment, the list of absolutely unsafe countries includes Burkina Faso, Mali and Niger. It must also include Sudan, which is plunged into a merciless civil war and a humanitarian crisis of unimaginable proportions. But Sudan has been excluded from media headlines in an unacceptable way. The crises in the Sahel have all the conditions to spread, as is already happening on a large scale in Nigeria and now in Senegal, due to the political confusion created by the president. In the same Senegal that had always been considered an example of stability and democracy.

Three other major themes are also discussed in this year's report: the growing disparities and economic rivalries between different blocs around the world, including with regard to what could happen with the development of the BRICS; the consequences of climate change on international relations, including migration; and the impact of the technological and digital revolution.

The report describes a world evolving in a worrying direction. And it would be even worse if the spectre that roams the corridors of Munich, silently, were re-elected in November, as no one likes to talk about evil spirits. But November is still a long way away and until then anything can happen.

A.I: translation of my opinion text published on 16 February 2024 in the Lisbon daily newspaper Diário de Notícias. 

A very dangerous end of year

An unrelenting holiday season

Victor Ângelo

 

This could be a troubled end of the year, on the international scene. There are three major crises looming - Iran, Russia, and the new variant of the pandemic. These things tend to erupt at the worst of times, when politicians are out celebrating the holidays, skiing, or sunbathing away from their offices. To say that we are entering a period when a lot can happen is not pessimism. It is simply a sign that we are paying attention to a particularly complex reality.

Let us start with Iran. This week's UN Security Council debate on Iran's nuclear programme showed that the conditions are not in place to revive the agreement signed in 2015 between Tehran and the five permanent members of the Security Council, plus Germany and the European Union. The US continues to impose an extremely tight regime of economic sanctions. And although Iran has turned to China, the truth is that American sanctions have a huge impact.

On the other hand, the new Iranian government has been accelerating its uranium enrichment programme, in clear violation of the 2015 Plan of Action. By now, it has accumulated enough fissile material to be able to produce several nuclear weapons. At the same time, it has accelerated the production of ballistic missiles and air assets capable of carrying a nuclear payload. All this is very serious and raises many red flags in the usual places.

At the time of the Council meeting, the permanent representatives of Germany, France and the United Kingdom to the UN issued a joint statement expressing their governments' deep concern. The final sentence of that statement says it all: "Iran's continued nuclear escalation means that we are rapidly reaching the end of the road." Such a statement sends the signal that it will soon be time to opt for solutions other than diplomacy. The probability is now stronger.

As far as Russia is concerned, President Putin met on Wednesday with his Chinese counterpart, Xi Jinping, by video conference. The main objective seems to have been to show a united front against the Westerners. It would be too farfetched to see in this summit a coordination effort to link the tension around Taiwan with a possible offensive by the Russians against Ukraine. The timetables do not coincide, it is not credible to think of simultaneous operations. The American response would be different, in one case fundamentally economic and financial - against Russia - and in the other, with military means.

In any case, the most immediate threat is still the Russian one. Vladimir Putin made the foreboding even more real by speaking of "genocide" that would be in preparation against the ethnically Russian population of Eastern Ukraine. This would be the justification for a military intrusion, an invention easy to propagandise internally and in some international circles.

Meanwhile, this week, Putin again insisted on the urgency of talks with the Americans and NATO. What for? Essentially, for the West to approve Moscow's demands and its vision of geopolitical relations with Ukraine, Georgia and Moldova, among others. Washington and Brussels do not seem willing to accept these impositions. Which means that tension will continue and the possibility of destabilising action in Ukraine is quite high.

Omicron is also complicating the end of the year. Apart from its health dimensions, it has serious economic costs, at a time when the most developed states are experiencing exceptional levels of public debt and budget deficit. In several European countries, it also has a political impact that cannot be ignored. The restrictions it imposes have given segments of the European radical right the opportunity to mobilise. These are minority groups. Even so, they worry the democratic leaderships of the countries where this is happening. The pandemic and the denialists remind us that the fight against radicalism cannot have a truce. Not even during the festive season. 

(Automatic translation of the opinion piece I published in the Diário de Notícias, the old and prestigious Lisbon newspaper. Edition dated 17 December 2021)

 

 

 

 

The EU and its Indo-Pacific Strategy

China, the Indo-Pacific and European illusions

Victor Angelo

This week, Josep Borrell, who heads the European Commission's external relations, and his Chinese counterpart, Minister Wang Yi, met by videoconference as part of the strategic dialogue that exists between the two parties. The day before, Frans Timmermans, the Executive Vice President of the Commission, had been in contact with the Chinese Vice-Premier, to discuss the preparation of the COP-26, which will start in Glasgow at the end of this month.

These talks have their merit. They must be frequent and without naivety. The EU can have no other political stance vis-à-vis China than dialogue, the affirmation of its critical positions and the search for common interests. In this, as in other areas of vital importance to the security and prosperity of Europe, it is essential to demonstrate that we continue to believe in the value of diplomacy, of clarifying positions and of reaching agreements. Where others focus on confrontation, Europeans must be seen to promote strategic interdependence and common platforms that contribute to international security and the resolution of major global issues. By doing so, we will consolidate the EU's role on the international scene and reduce the risks of being involved in conflicts that are not in our interest. We will also reduce our subordination to the USA. 

Returning to the dialogue between Borrell and Wang, several topics were addressed. Most have long been on the agenda: human rights, Hong Kong, Xinjiang, Taiwan, the mutual investment climate, international cooperation, support for multilateralism, etc. But between this meeting and the previous one, which took place in June 2020, an eternity has passed, and dramatic changes have occurred, notably in Myanmar and Afghanistan. The policy towards these countries had to be part of the discussions. Nor could a reference to the EU Indo-Pacific strategy, approved a couple of weeks ago in Brussels, be missing. Borrell took great pains to explain that this new policy intention is not aimed at antagonizing China. He would not have convinced his interlocutor.

I am among those who think that the approval of this strategy was a mistake. The document appears to be well written, and the abundance of resources in the European External Action Service means that it has to be. But it is vague, too broad, touching on everything, and undefined in the prioritization of the objectives included in each of the intervention areas. To begin with, the geopolitical content of the Indo-Pacific concept is not well understood. A recent study shows that different member states see the contours of the region in a separate way. What's more, the concept is associated with the anti-Chinese obsession started by Donald Trump and which Joe Biden has been materializing. Thus, for Beijing, the EU does nothing more than follow American policy, albeit in a more sophisticated way, introducing in the document a series of buzzwords about development and cooperation.

It is true that this part of the world, even if imprecisely defined, has a growing economic weight. It accounts for a very large share of Europe's foreign trade: Brussels tells us that the region is the EU's second largest trading partner. It is also a fact that a very high percentage of maritime freight transport passes through the Indian Ocean. But the real challenges in the Indo-Pacific are, apart from piracy, an area where cooperation with China is possible, the disputes over maritime borders between China and its neighbours, the future of Taiwan, or the identity tensions in India, the military dictatorship in Myanmar, the struggle for democracy in Thailand, Cambodia or Vietnam, the institutional violence in the Philippines and so on, without forgetting Taliban extremism and terrorist threats. These are concrete issues where the EU needs to define its interests, the role it can play and the alliances that will be needed.

(Automatic translation of the opinion piece I published in the Diário de Notícias, the old and prestigious Lisbon newspaper. Edition dated 1 October 2021)

 

 

Europe and the digital race

Europe out of the Digital Olympics

Victor Ângelo

 

The progress of the digital age, which has accelerated over the last decade, will be even faster, deeper and more pervasive in the coming years. Major transformations in information processing and use are coming, with amazing advances in artificial intelligence, 5G networks, new generations of microprocessors, 3D printing techniques, and in protecting cyber systems from hostile attacks. These transformations will have an enormous impact on the exercise of political power, on the economy and functioning of societies, on individual attitudes, as well as on international relations. 

Digital mega-investments are taking place today in the United States, China, Taiwan, South Korea, and Japan. The latter three produce 60% of the semiconductors and are moving at a rapid pace towards faster, more efficient processors, and much less gluttonous in terms of energy consumption. 

Where will Europe stand in this new technological framework? Ursula von der Leyen last week defined the digital domain as a priority. The EU currently produces about 10 percent of the world's semiconductors. It has lost a lot of ground in the last 30 years. In 1990, it accounted for 44 percent of global transistor production.  The ambition defined by the President of the European Commission is to reach 20% in 2030. For this, it will be necessary to mobilize public and private investments in the region of 160 billion US dollars. It won't be easy. It is a lot of money, but insufficient when compared with the plans of others. South Korea, for example, is ready to invest 450 billion dollars. Taiwan Semiconductor Manufacturing Co. (TSMC), the world's number one chipmaker, will invest $100 billion over the next three years to expand its capacity. Interestingly, part of this investment will take place in China, across the strait, and part in the United States. Thus, strategic interdependencies are created.

Europe is lagging not only in the field of processors. We are out of the league of champions when it comes to technology platforms. When you look at the top 10, you notice that six are American and four are Chinese. The platforms we know, in this part of the world where we are, such as Facebook, Twitter, Netflix, Google or even Uber, Airbnb or Booking, all have one or more Chinese competitors (Tencent, Weibo, WeChat, Baidu, iQuiyi and more).

Our picture is also not the best when it comes to the so-called unicorns. Many of the new applications and technologies are developed by newly established companies that the capital market values above $1 billion and calls unicorns. These companies are very important creative agents in the areas of artificial intelligence, financial software, e-commerce, and e-logistics. Digital giants follow them closely and eventually acquire the most innovative ones. Today, the inventory of unicorns totals 827 companies. Of these, only 57 are based in the EU area, with France and Germany at an absolute advantage in the tiny European share.

Given this, what does digital sovereignty mean in the EU? The question is even more pertinent if one takes into account the correlation between defence and artificial intelligence (AI). A recent report by the National Security Commission on Artificial Intelligence, a US commission, shows that the major defence competition with China is primarily about AI. Whoever wins that race will have a critical advantage over the other side. The EU is out of this championship.

Many other questions remain, concerning the protection of people's rights, the fight against information manipulation, or even the meaning of democracy in robotic times.  All of them are important. But for us Europeans, the fundamental challenge is to clearly define a plan that allows the EU to leap from the periphery to the centre of the digital issue.

(Automatic translation of the opinion piece I published in the Diário de Notícias, the old and prestigious Lisbon newspaper. Edition dated 24 September 2021)

Our collapse in Afghanistan

Kabul: And After the Farewell?

Victor Angelo

 

Two days after the fall of Kabul, China conducted a major military exercise at the gates of Taiwan. It was a simulation of an attack, using a combination of air, naval and electronic jamming means. Taipei says that its defence space was repeatedly violated by Chinese fighter jets. And the exercise was seen as a dress rehearsal of what might follow.

It is clear that this military operation has been planned for some time, as part of a crescendo in recent months. But its intensity, level of penetration and intimidation seem to have been deepened, following what had just happened in Afghanistan.

Chinese leaders know that the American administration is fully focused on the aftermath of the chaos in Kabul. The Far East does not fit on Washington's political radar at the moment. More importantly, the new international reality - the image of a great power’s defeat - opened the opportunity to make the exercise more offensive, in a new test of American resolve regarding the protection of Taiwan's sovereignty.

Seen from Beijing, the events in Afghanistan indicate that American public opinion is less willing to commit itself to wars that are not its own, in distant lands, difficult to locate on the map and to understand culturally. Xi Jinping and his people have now become more convinced that the Americans will once again bow to the fait accompli. In this case, the reality that would result from the occupation of Taiwan by force. In this view, Washington would react with much ado, but would in fact hesitate until finally abandoning the hypothesis of a military response.

This may be a misjudgement on the part of the Chinese. But the truth is that the Americans have just projected an image that seems to confirm their choice of a policy of absolute primacy of national interests and that alliances with others only last as long as they do. That is, as long as they serve US interests. This image harms NATO, among others. Besides giving more arguments to those who say that the Atlantic Alliance is just a train of countries pulled by the US, it might make leaders like Vladimir Putin believe that they will not suffer major consequences if they cross certain red lines and threaten the security of European countries. It also undermines the fight for the primacy of rights and principles in political matters. Keeping human rights high on the international agenda when the population of Afghanistan has been abandoned to the primitivism of the Taliban is now more difficult.

Although it is still too early to assess the full consequences of the tragic end of twenty years of intervention in Afghanistan, the evidence is that it has changed the geopolitical chessboard in that part of the globe. We now have, side by side, three fanatical states, each in its own way. One, Pakistan, with nuclear capability. Another, Iran, with nuclear potential. And both in the orbit of China. The third, Afghanistan, is a powder keg domestically, a source of regional instability, and a possible breeding ground for international terrorist movements. Beyond the states, there are the people, who suffer the effects of fanaticism, oppression, corruption, and who live a daily life of misery and fear.

The European Union cannot look at these populations only through the prism of uncontrolled migrations. Unfortunately, this was the concern that guided the speeches of Emmanuel Macron and Josep Borrell, among others, when they spoke publicly about the new Afghanistan. It was as if they only saw hordes of Afghan migrants on their way to Europe. At a serious moment, which requires an innovative diplomatic strategy and an adequate humanitarian response, it is unacceptable to reduce the Afghan problem to a possible migratory crisis. The EU must learn the necessary lessons with regard to security, participation in conflict resolution in third countries and autonomy vis-à-vis the major powers. And it must seek to define a political framework to guide its way of dealing with backward-looking, hostile and inhumane regimes. As, for example, with the bearded men in Kabul.

(Automatic translation of the opinion piece I published yesterday in the Diário de Notícias, the old and prestigious Lisbon newspaper)

Europe must keep engaged with China

Europe, China, and the US: a turbulent triangle

Victor Ângelo

 

European policy towards China requires a smart balance between respect for democratic values and economic interests. It is a complex issue that touches the daily lives of European citizens. You only have to look at the map of rail connections - 5,000 freight train journeys are expected in 2021 - or at the sea charts showing the routes of cargo ships to understand the interdependence between Europe and China. We need to import what we do not produce - or have stopped producing. The Chinese need our markets to ensure important levels of economic growth, one of the pillars of internal stability and regime continuity.

This interdependence has increased spectacularly since Xi Jinping came to power in 2013. It is part of his strategy. And the trend is for it to accentuate in the coming years. In addition to mutual investments and the increasing purchase by Westerners of Chinese stocks and treasury bonds, note that the economic corridor is more and more diverse. Some lines pass through Russian Siberia, others through Kazakhstan. Later, there will be a land link via Iran and Turkey, not forgetting the sea routes, which rely mainly on the ports of France, Italy and the Netherlands. The smooth functioning of this vast transit area requires a permanent political dialogue between the countries, which will have to be based on an understanding of mutual interests and perceptive pragmatism. To facilitate this dialogue and open a wider door, Europe should take the initiative to propose the creation of a consultative platform for the Eurasian corridor. Any disruption of traffic, for political or security reasons, would have a dramatic impact on the economy and people's lives, particularly in the European area. This tangle of relationships stems from the process of globalisation that began more than two decades ago. Anyone who thinks that the way in which the international economy is now organised can be significantly reversed is dreaming politics without having their feet firmly planted in reality.

The disruptions currently occurring here in Europe in the supply chains for raw materials or finished products produced in China and the escalating cost of transporting a container from a Chinese port to a European one already give us a bitter taste of what could happen if there were a serious disruption due to disagreement between the parties or the imposition of ill-considered sanctions. For example, before the pandemic, transporting a 40-foot container by sea from Shanghai to Europe could cost between $2,000 and $4,000. Now it has reached $17,000 and the waiting time can be up to several months. And this is despite the fact that Chinese container production accounts for more than 85% of the world's total. These problems may be temporary, the result of an acceleration of economic recovery in the more developed parts of the world and the pressure they put on shipping. Any European importer who needs made-in-China goods or components to maintain their manufacturing activities will be well able to explain the importance of a trade relationship without unnecessary hindrance. The more informed will also stress the need to avoid a further escalation of tensions in Taiwan and the South China Sea. This also applies to the Chinese side, which should not continue to pursue an escalation of offensive actions in these sensitive areas.

In a deeply interconnected world, one cannot think geopolitically and make strategic decisions following past models or seeing the world as a black and white scenario. The Americans have chosen a path of confrontation. On this side of the Atlantic, that option appears to be a dangerous choice and contrary to our interests. This is why Europe cannot and must not copy Washington.

(Automatic translation of the opinion piece I published yesterday in the Diário de Notícias, the old and prestigious Lisbon newspaper)

 

 

Our strategic fragility: a key example

Taiwan so close

Victor Ângelo 

Taiwan is part of our everyday life. This is because the company that produces almost all of the chips used in electronics, mobile phones, robots and cars is Taiwan Semiconductor Manufacturing Company (TSMC). An omnipresent but discreet colossus, worth twice the GDP of Portugal on the stock exchange. And it is pertinent to write about it this week, when there is so much talk about China.

Since TSMC produces over 90% of the latest generation of microprocessors and is located in Taiwan, it is at the centre of the Sino-American rivalry. This is a major critical point. If there were a conflict over Taiwan tomorrow, the worldwide availability of chips would plummet. This would mean the immediate paralysis of motor vehicle factories, computers, mobile phones, highly sophisticated financial operations, and everything related to the use of micro and nano transistors. In other words, it would be economic and social chaos.

Analysts looking at these things say that TSMC is the invisible shield protecting Taiwan. It may be, to some extent. And TSMC is betting on it: it plans to invest, over the next three years, $100 billion in expanding its scientific and technological capacity. More chips, infinitely tiny and of an extraordinarily more powerful artificial intelligence. The figures give an idea of what is at stake. They also show that national defence policy involves the development of an ultra-modern economy that creates strategic dependencies in other parts of the world. 

It is therefore neither in the interest of Beijing nor of others to destabilise Taiwan. At least not for the next seven to ten years. But this absolute dependence on a single company is also the greatest exponent of the fragility of the major global balances. It is the result of decades of ultraliberalism and the relocation of production, all of which is out of step with what should be geostrategic concerns. The prevailing philosophy led us to believe that commercial interdependence would erase the rivalries between the great blocs of nations. We now know that this is an illusion. The biggest wars of the last 100 years were started by self-centred madmen who did not take into account the economic - nor the human - impact of their decisions. I do not think Xi Jinping falls into that category, despite the words and tone he used yesterday about Taiwan at the Chinese Communist Party's centenary celebration. But it is also true that it would only take a highly sophisticated hacker attack against one section of TSMC to bring thousands of production chains that are dependent on the availability of chips to a halt.

Joe Biden understands that the United States cannot, in this vital area, remain totally dependent on Taiwan and on one company alone. The industrial plan he has just proposed envisages an investment of $50 billion to stimulate domestic chip production. To that will be added many billions from the private sector. The truth is that much of the scientific design work in this field is done by world-renowned American companies - for example, Intel Corp, Nvidia Corp, Qualcomm or Cisco Systems Inc. But separating design from production has led to extreme vulnerability. It is a bit like designing highly effective weapons and asking others to manufacture them and then supply us.

The European Union must follow a similar path. One of the starting points should be to build on what ASML Holding NV already represents. This Dutch company is dominant in the production of the machinery needed to manufacture semiconductors. The ambition is to produce in Europe as early as 2030, in addition to the machines, at least 20% of the new generation of semiconductors. This is a modest target, but it will still require huge investments in Europe's digital industries. The amount currently foreseen - around €150 billion - is insufficient when compared to what TSMC and South Korea's Samsung - the second largest chip producer - have in the pipeline. However, European sovereignty, including its defence, requires a decisive presence in the industries linked to digitalisation. 

(Automatic translation of the opinion piece I published yesterday in the Diário de Notícias, the old and prestigious Lisbon newspaper)

Europe and China: a difficult dialogue

The summit call that took place today between the EU leaders and President Xi revealed a gulf of differences between the two sides when it comes to political values and the interference of the State in the economy. On the European side, reference was made to human rights as a fundamental value, as well as to the Chinese leadership’s policies towards the Uighur minority, Hong Kong, and Taiwan. President Xi did not like what he heard. But he could notice that the Europeans consider these matters fundamental and will continue to be raised in the future. At the same time, the economic relationship between both sides will continue – the trade between them amounts to one billion euros a day. And on this matter, the key issues will remain and must be addressed. The Chinese must open up to European investment and cease all kinds of political meddling in the governance of European firms already operating in China.

In the meantime, and as we wait for progress on these fronts to be achieved it is becoming clear that Chinese investments in critical European infrastructure can only be accepted if they do not put at stake the strategic dimensions of European security and stability.

The two sides must cooperate. They are key players in the international scene. It is therefore important they keep talking and be frank when doing it.

China prefers Donald Trump

It is now clear that the Chinese leadership would prefer Donald Trump. The messages we are getting from Beijing are that they believe that Joe Biden would be tougher on China than Trump. They now know the current President relatively well and they think that if there is an agreement on trade everything else will be manageable. They see Donald Trump as a transactional leader. He is aware of the Chinese geopolitical ambitions and must refer to them in his public speeches. But he can be satisfied with a trade agreement if he thinks the agreement is good for his electoral basis. And it is true he has a good personal rapport with President Xi Jinping. On the other side, the Chinese leadership see Biden as more ideological. He will be raising issues that are particularly unpleasant to the ears of the Chinese Communist bosses. Issues such as human rights, the special status and freedom in Hong Kong, the re-education camps in Xinjiang Province, the relations with Taiwan, and so on. These are extremely sensitive matters for Beijing. Trade is a small business when compared with any of these challenges. Therefore, they will try to do anything they can to make sure that Donald Trump gets re-elected.

Taiwan´s elections and post-electoral realism

The people of Taiwan voted heavily for the opposition, both in terms of the presidential and legislative elections. Opposition leader Tsai Ing-wen has been elected as Taiwan’s next president. She will be the first woman to lead the country.

In the past, Ms. Tsai was the leading Taiwanese negotiator with China. Therefore she knows how important is to keep the line open with Beijing, even if the majority of her support comes from those who would like to see Taiwan become an independent country. It is a fine balancing act that is required from her but political realism leaves no other option for Taiwan. Anything else would further complicate the tense situation that is already a key feature of the geopolitical situation in East Asia.