Wednesday, March 9, 2022

№ 621. Cold War 2.0 (Part 3): Counterbalancing the West

Just the other day, Beijing announced Moscow is its “most important strategic partner,” adding that theirs is “one of the most crucial bilateral relationships in the world.” A rejection of the global campaign of imposing sanctions and demands to condemn the invasion

 

 

This comes as the world marks a half-century since Richard Nixon, in a bold gambit to drive a wedge between the Soviet Union and Communist China, opened up relations with Beijing. What followed was the American pursuit of helping shepherd the People’s Republic into the global community operating under American-led rules, first by taking over Taiwan’s seat in the UN Security Council and culminating in China acceding to the World Trade Organization. A half-century on, as China reclaims the global position it had occupied until the late 1700s, and America recedes in influence, Americans are challenging the wisdom of Nixon’s move even as Russia and China have once again become allies. China, always consistently critical of the idea of sanctions to compel countries to behave a certain way, and eager to expand its own strategies to displacing American dominance, has resisted global opinion in terms of Russia and discreetly kept open ways for Russia to further cement the partnership the two countries most recently underscored last February when Putin and Xi met.

Among the things China has made available: When Visa and Mastercard pulled out, Russian banks announced they were exploring using UnionPay, China’s own payment card system. Earlier, Russia had been ousted from the SWIFT bank transaction network: but China has its own system, CIPS which in turn fosters the use of the Chinese yuan (and the Hong Kong dollar), potentially enough of an umbilical cord for Russia which can continue to transact with China and sell exports banned elsewhere. If Russia miscalculated in thinking it could mount a quick blitzkrieg in Ukraine, and that the West would stand by merely wringing its hands, it didn’t make a mistake in increasingly strengthening an alliance reversing the historic suspicions between Russia and China, and creating a united front against the United States. The emerging regional order that was fostered by American defense diplomacy: cooperation between Australia, Japan, and India, as a counter to China’s “all under heaven” dream of restored paramount status in the world. Russia’s extensive ties with India have created a wedge keeping that country from joining the rest of the world in condemnation.

 

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