China’s new footprint in the post-American Middle East

Days after the UAE’s decision to cancel the agreement regarding purchase of F35 jets from the US, a CNN report (December 23, 2021) stated that assessments of senior US officials suggested that transfers of sensitive ballistic missiles had taken place between China and Saudi Arabia.

UAE’s reasons for cancelling the agreement for purchase of F35s

One of the reasons for the UAE to cancel the deal with the US was that it did not want to be caught in any sort of ‘cold war’ between both the US and China. Anwar Gargash, Diplomatic Adviser to the UAE’s leadership, said, while speaking at a think tank in Washington DC earlier this month:

I think we, as a small state, will be affected negatively by this, but will not have the ability in any way to affect this competition even positively really.

While the US has been uncomfortable with the UAE’s use of Chinese 5G technology, with Washington warning the Emirates that the latter’s use of technology will impact security ties between both countries, the findings of US surveillance that China was trying to build a military installation in Khalifa port, close to Abu Dhabi, led to serious differences. Although construction work on the site in Khalifa port was cancelled (though both the UAE and China insisted that the facility was purely commercial in nature), and both the Emirates and the Americans have publicly stated that their relationship is still strong, there is no doubt that recent events have cast a shadow on the bilateral relationship.

If one were to look at the case of Saudi Arabia developing ballistic missiles, it is important for a number of reasons. First, it shows the increasing security imprint of China on the Middle East, specifically two Gulf Cooperation Council (GCC) countries: Saudi Arabia and the United Arab Emirates (UAE). Both are considered to be close to the US, and the fact is that ties with China could emerge as a bone of contention in relations between Washington and Abu Dhabi and Riyadh.

A senior Chinese official did not deny cooperation in the sphere of ballistic technology between Saudi Arabia and China, stating that both countries are comprehensive strategic partners. Said the official:

Such cooperation does not violate any international law and does not involve the proliferation of weapons of mass destruction.

Interestingly, China also shares robust economic ties with Iran and has been pitching for revival of the 2015 Joint Comprehensive Plan of Action JCPOA/Iran nuclear deal, while the UAE and Saudi Arabia, like the US, Israel, and other countries, have expressed worries with regard to Iran’s nuclear ambitions. China and Iran have also signed a 25-year cooperation agreement, referred to as “strategic cooperation pact,” in March 2021, which sought to bolster economic and security linkages between both countries. Iran has also hinted that if the JCPOA does not revive it would go ahead and trade with China and other countries.

Second, the development of ballistic missiles by Saudi Arabia will have a significant impact on the Middle East, and make it tougher for the US and other countries to prevent Iran from developing a ballistic program.

US ties with Saudi Arabia

While information pertaining to Chinese assistance for Saudi development of ballistic missiles was available to the US even earlier, the Trump administration did not put much pressure on the Saudis over this issue. The Biden Administration’s ties with Riyadh have been strained (as a result Saudi Arabia has been attempting to reorient its foreign policy significantly), though in recent months the US has been working on remolding ties. One of the reasons why Washington did not impose sanctions on Saudi Crown Prince Mohammed Bin Salman (MBS) even though declassified reports of CIA pointed to the fact that MBS was clearly involved in the Jamal Khashoggi murder (a number of Saudi officials were put on a no travel list, while financial sanctions were imposed on some officials), was that the US did not want to allow ties with Saudi Arabia to further deteriorate.

GCC countries like Saudi Arabia and the UAE, which have shared strong economic and strategic ties with the US, have been altering their foreign policy within the Middle East (one important example of this has been attempts by both countries to improve ties with Iran) as well as outside of it. One of the propelling factors for the reorientation in foreign policy of Riyadh and Abu Dhabi is the belief that the US will be less involved in the region in the future. In the past the China factor has never been a major issue in US ties with Saudi Arabia and the Emirates, but greater security and technological cooperation between the GCC states and Beijing could prove to be a thorny issue. Apart from its increasing economic clout, the biggest advantage that China possesses in the Middle East is that, apart from strong ties with Gulf countries, it also has good relations with Iran.

“Blood is Thicker Than Water: Elite Kinship Networks and State Building in Imperial China”

A long tradition in social sciences scholarship has established that kinship-based institutions undermine state building. I argue that kinship networks, when geographically dispersed, cross-cut local cleavages and align the incentives of self-interested elites in favor of building a strong state, which generates scale economies in providing protection and justice throughout a large territory. I evaluate this argument by examining elite preferences related to a state-building reform in 11th century China. I map politicians’ kinship networks using their tomb epitaphs and collect data on their political allegiances from archival materials. Statistical analysis demonstrates that a politician’s support for state building increases with the geographic size of his kinship network, controlling for a number of individual, family, and regional characteristics. My findings highlight the importance of elite social structure in facilitating state development and help understand state building in China – a useful, yet understudied, counterpoint to the Euro-centric literature.

Read the whole thing (pdf).

The Saudi-Qatar thaw

Introduction

On January 5, 2021, at the annual Gulf Cooperation Council (GCC) Summit, at Al-Ula, an agreement was signed between Saudi Arabia (along with its allies) and Qatar that restored diplomatic ties.

Blockade imposed by Saudi Arabia and its allies

In June 2017, Saudi Arabia, Bahrain, the UAE, and Egypt had imposed a trade, travel, and diplomatic embargo on Qatar (two GCC states, Oman and Kuwait, did not cut diplomatic ties with Qatar). Qatar’s alleged support for terrorism, and its close ties with Iran, were cited as the main reason for the decision to impose this blockade.

Saudi Arabia and its allies had closed its sea routes, land borders, and airspace to Qatari vehicles. As a consequence of the blockade, Qatar was compelled to use Iranian air space. Riyadh re-opened its airspace and land and sea borders with Qatar on January 4, 2021, and other countries will be following suit.

Attempts had been made by the US to broker a deal between both sides in 2017. Riyadh, along with other countries which had imposed the blockade on Qatar, had presented 13 conditions to Qatar including; shutting down of Al Jazeera and other Qatar-funded news outlets, downgrading ties with Iran and Turkey, and refraining from meddling in the internal affairs of other countries. Qatar categorically refused these conditions and stated that it would not in anyway compromise its sovereignty.

Qatari Foreign Minister, Sheikh Mohammed bin Abdulrahman Al Thani, had said that “we are willing to negotiate any legitimate grievances with our neighbours, but we will not compromise our sovereignty.”

He also dubbed the blockade imposed on Qatar as a violation of international law.

The agreement signed for restoration of diplomatic ties

The Saudi Foreign Minister, Faisal bin Farhan al-Saud, while commenting on the agreement signed to end the blockade of Qatar, stated:

What happened today is… the turning of the page on all points of difference and a full return of diplomatic relations.

Saudi Crown Prince Muhammad Bin Salman dubbed the agreement as a reiteration of “Gulf, Arab, Islamic solidarity and stability.”

Senior Advisor to the White House, Jared Kushner (also Donald Trump’s son-in-law), along with Middle East envoy Avi Berkowitz and Brian Hook, a special State Department adviser, witnessed the agreement for restoring diplomatic relations between Riyadh, its allies, and Qatar.

Role of the US, Kuwait, and Saudi Arabia

During his visit to the Middle East in December 2020, where he met with the Saudi Crown Prince and the Emir of Qatar, Tamim Bin Hamad Al Thani, Kushner is supposed to have pushed for the removal of the blockade on Qatar.

Kuwait too has been an important player in trying to reduce tensions between Qatar and the other Arab states. In December 2020, the Foreign Minister of Kuwait, Al Sabah, had hinted at progress in this direction, though Qatar had stated that it would only accept any agreement which was fair.

Iran and Saudi Factor

There are two important factors behind this agreement. First, that the Saudis want to send a positive message to the incoming Biden administration. Biden has been critical of Saudi Arabia’s poor track record on human rights, and he has even dubbed Riyadh as a “pariah state.” The Biden administration has also stated that it will re-assess ties with Riyadh, and it has accused Trump of being soft vis-à-vis the Saudis.

The Trump administration, especially Jared Kushner, is taking credit for the removal of the blockade, with one senior official dubbing it as a massive breakthrough and that “it will allow for travel among the countries as well as goods. It will lead to more stability in the region.”

The Trump administration is calling this agreement its second most important Middle East accomplishment, after the Abraham Accords (through which relations were normalized between Bahrain, the UAE, and Israel).

Riyadh too is likely to take credit for its role in reducing tensions with Qatar, which is home to the largest American military facility in the Middle East – the Al Udeid air base.

The second important part is the Iran factor. Saudi Arabia is wary of the Biden administration’s possible outreach to Iran, and it has sought to isolate Iran through this step. As a result of the embargo, Qatar had moved much closer to both Turkey and Iran.

Conclusion

In conclusion, a number of economic and geopolitical factors have resulted in removing the embargo on Qatar. While it is likely to reduce tensions, there are some major divergences between Qatar and other Arab countries on crucial foreign policy issues, especially Iran. Qatar is unlikely to accept any conditionalities, and unlikely to re-orient its foreign policy significantly. It will also be interesting to see how the incoming Biden administration views the role of Saudi Arabia in this agreement.

Nightcap

  1. The biology of dads James Rilling, Aeon
  2. Marrying off your daughter Krista Larson, AP
  3. An anti-capitalist hegemony? Chris Follow Dillow, Stumbling & Mumbling
  4. Pegg’s essay questions (Open Borders) Bryan Caplan, EconLog

The View from New Delhi: China’s post-pandemic belligerence

Introduction

In the aftermath of the Covid-19 pandemic, the increasingly belligerent behaviour exhibited by China in South Asia and South East Asia, and China’s imposition of the National Security Law in Hong Kong, it is interesting to see the tone of the English language media on China.

Yet a genuinely comprehensive peek into the Chinese view on crucial political, economic, and geopolitical issues requires a perusal of the Chinese language papers. This is imperative. The Global Times, the mouthpiece of the Communist Party, is important because it covers the views of Chinese academics and strategic analysts who, through their opinion pieces, provide a deep insight into China’s approach towards those aforementioned crucial issues.

From the opinion pieces at the Global Times over the past few months, one thing is evident: that with the US becoming increasingly unpredictable under Trump, China is virtually invincible. There is a growing belief that Beijing is formidable both in the economic and strategic context. Strategic analysts and journalists writing for the English language daily have also tried to drive home the point that Beijing is in a position to take on the US and its allies, and that any attempt to isolate China would not be taken lying down.

Other articles in the Global Times warn against anti-China alliances, and explain why these alliances will not be possible due to the fault lines between the US and other countries. It has also not refrained from using strong language against countries like Australia and Canada by insinuating that they are acting as mere appendages of the US.

Aggressive stance vis-à-vis countries which blamed China for lack of transparency with regard to the outbreak of the pandemic

Beijing has been scathing in its criticism not only of the US, which took a firm stand against China in regards to the suppression of crucial information pertaining to the pandemic, but also Australia, which had the temerity to ask for an enquiry into the origins of the deadly pandemic. The Global Times lashed out and labelled Australia as a mere appendage of the US, even dubbing it a ‘poodle’ and ‘dog of the US’.

It has also warned other countries, especially Australia, of the economic consequences of taking on Beijing. An article titled ‘Australia’s economy cannot withstand Cold War with China’, written by Wang Jiamei, concludes by saying:

‘…..If a new Cold War leads to a China-Australia showdown, Australia will pay an unbearable price. Given Australia’s high dependence on the Chinese economy, an all-around confrontation will have a catastrophic effect on the Australian economy’

China has followed this harsh rhetoric with sanctions on imports of certain Australian commodities, like barley, and suspended the import of beef. China has also issued warnings to students and tourists that ask them to reconsider travelling to Australia.

This was done days after China’s envoy in Australia, Cheng Jingye, in an interview to an Australian media outlet, had warned of strong economic repercussions (the envoy was referring not just to the impact on Australia-China trade, but on Chinese students pursuing education in Australia and tourists visiting Australia) if Australia continued to adopt a strong stance against China on the issue of an enquiry into the origins of the Covid-19 pandemic (Australia reacted very strongly to this threat).

Beijing unsettled by emerging alliances?

One interesting point is that while commentaries and reportage in the Global Times try to send out the message that China’s rise is inexorable and that Beijing is not daunted by emerging alliances and emerging narratives of reducing economic dependence upon China, it seems to be wary of partnerships and alliances which seek to challenge it. The newspaper repeatedly warns India, the UK, Australia, and various EU member states about the perils of strengthening ties with the US. Even in the midst of recent tensions between India and China, Global Times tried to argue that India would never openly ally with the US and if it did so, this would be damaging. An article in the Global Times states:

It won’t be in the interest of India, if it really joins the Five Eye intelligence alliance. The role of a little brother of the US within a certain alliance is not what India really wants.

The article also tries to dissect differences between the US and India over a number of issues, which are not wrong, but the piece forgets that the two countries do not have differences over strategic and economic issues.

Strong language against Canada

It is not just the US, Japan, Australia, EU member states, and India that the English-language daily has recently threatened. The Global Times has also adopted an aggressive posture vis-à-vis Canada. One article, titled China-Canada ties wane further as Ottawa becomes Washington’s puppet over HK’, suggests that Justin Trudeau was in the ‘pole position in the circle of bootlickers pleasing the US’ and castigates him for the measures he has taken after China tightened its control over Hong Kong via the imposition of National Security Law. Steps taken by Trudeau include suspension of the extradition treaty with Hong Kong and a decision to end the export of sensitive military items to the region.

Cracks in the bilateral relationship had begun to emerge between Canada and China after Canada detained the CFO of Huawei, Meng Wanzhou, on a US extradition warrant (at the end of May, a Canadian court had ruled that Wanzhou could be extradited to the US, much to the chagrin of the Chinese), while Beijing in return has detained two Canadians, Michael Kovrig and Michael Spavlor (both were charged with espionage in June 2020). It would be pertinent to point out that Beijing has signaled its displeasure with Canada by reducing imports of Canadian products like pork and canola oil.

Conclusion

While Beijing itself is becoming more aggressive and belligerent, it cannot expect other countries to stick to their earlier position on crucial strategic issues. It is somewhat unfair to assume that the Global Times, the mouthpiece for China’s Communist Party, can cover the fact that China is on the defensive. Other countries are now finding common ground in the strategic and economic sphere. While the results may not come overnight, partnerships are likely to concretize and gather momentum, because Beijing seems in no mood to give up on its hegemonic mindset and patronizing approach. Yet, other countries and regional blocs also need to have a clear vision to counter China and divergences over minor issues will not help. It is true that a zero-sum approach vis-à-vis China is not beneficial, but for that to happen Beijing too needs to act responsibly, which seems doubtful given its behavior on a number of issues.

Expect a new, decentralized narrative in the post-Coronavirus world

Introduction

Many analysts have argued that the US and China will continue to be the two most important global players in a post-corona world, but they will not be the sole drivers of the narrative with regard to economic and geopolitical issues. While the US has become insular under Trump and has failed to foster a spirit of international cooperation even during the midst of the coronavirus pandemic, China’s suppression of crucial information with regard to the coronavirus has been criticized by a number of countries – not just the US.

During the midst of the coronavirus pandemic itself, many countries have risen to the occasion not just in terms of dealing with the pandemic, but also providing assistance to other countries. This includes the Asian countries of South Korea, Taiwan and Vietnam, and Western countries like Germany and France, which have both risen to the occasion by speaking up for removal of sanctions against Iran, and also providing financial assistance.

Increasing importance of South Korea, Taiwan, and Vietnam

If one were to look at the instance of Asia, countries like South Korea, Taiwan, and even Vietnam, which has been successful in controlling the virus, are likely to enhance their stature globally, and will become even more relevant in the economic and strategic sense not just in Asia, but on the global stage.

All three countries have provided medical assistance to a number of countries, including the US. Taiwan and Washington have also joined hands to carry out research and to develop a vaccine for finding a cure for the virus.

The success of South Korea and Taiwan blunts the narrative about authoritarian governments being in a position to control the epidemic better, an argument which Beijing has been trying to push. The success of Vietnam has shown that resources are helpful, but not necessary, for handling situations like pandemics. Even with meagre resources, the ASEAN nation has restricted the number of cases and not recorded a single death so far. This has been attributed to the timely response by the country’s leadership. Vietnam has also been able to relax the lockdown and open certain businesses.

India too has been able to contain the spread of the virus and has provided aid and assistance to a number of countries in spite of a paucity of responses.

In a post-corona world, China is not likely to drive the Asian narrative.

Western narrative: Not driven by the US

In the West, while Trump has been criticised for his handling of the coronavirus, Germany has been relatively successful in containing the outbreak of the virus compared to other EU member states. What is interesting is that while Germany has publicly criticised China it has not taken the US stand on a number of issues.

First, along with the UK and France, Germany provided medical assistance to Iran via the Special Purpose Vehicle (SPV), which had been set up to circumvent sanctions imposed against Iran (the medical assistance reached Iran on March 31, 2020).

Second, when Trump reduced US funding to the World Health Organisation (WHO), Merkel spoke in favor of greater international cooperation, and support to WHO at this point of time, while also indirectly criticizing the step taken by Trump. Even in the past, Merkel has been at variance with Trump on numerous issues including the US approach to Iran and Trump’s approach towards globalization.

Emmanuel Macron too has been critical of China, but not necessarily echoing the US line. Both leaders have also been emphasizing the need for revival of the European Union (EU) and making it relevant.

Conclusion

In a post-corona world, a number of changes are likely to occur in the world order. First, if smaller countries have been successful in dealing with the pandemic their stature will rise, and they will benefit both in economic terms as well as geopolitical clout.

Second, the belief that a democratic system is incapable of dealing with a crisis like the coronavirus has also been challenged.

Third, the international world order will have numerous layers, and the influence of both Washington and Beijing on the narrative are likely to reduce with new players likely to speak up on crucial economic, environmental, and strategic issues. While trade and travel may be restricted, there is a possibility of greater ‘international cooperation’ and a new narrative which does not emanate merely from Washington or Beijing, but collectively from a number of countries.

Finally, cooperation will not be restricted merely to regional blocs or geography. In a number of instances, medical aid and assistance has been extended by one country to another far flung country. The new world order promises to be an interesting one, though it will be complex.

Iran-US tensions: Why Tokyo and New Delhi should arbitrate (But will they?)

After the drone attacks on Saudi oil facilities

Iran’s ties with the rest of the world, especially Washington, have witnessed some interesting developments in recent weeks. While there was a possibility of a thaw between Washington and Tehran after the G7 Summit (held in August 2019 at Biarritz, France) with both sides making the right noises.

Tensions between both countries have risen yet again after two oil facilities, Abqaiq and Khurais, of Saudi Aramco (a Saudi state-run company) were attacked by drones and missiles on September 14, 2019. The Houthis of Yemen have claimed responsibility for the attack, though the Saudis and the US blamed Iran. US President Donald Trump warned of retaliatory action against Iran (the US also sent troops to the Gulf to prevent further escalation), while US Secretary of State Mike Pompeo described the attack as an ‘act of war’.

Iranian reactions to US statements

If one were to look at Iranian reactions to US statements, Iranian Foreign Minister Javad Zarif, in an interview on September 19, stated that if the US or Saudi Arabia launched a military attack on Iran, in retaliation for the strikes on the Saudi oil facilities, he did not rule out an ‘all out war’. Zarif did say that Iran wanted to avoid conflict and was willing to engage with Saudi Arabia and the United Arab Emirates.

On September 22, the anniversary of Iraq’s invasion of Iran, Iranian President Hassan Rouhani warned against the presence of foreign troops in the Gulf, saying that this would lead only to more apprehensions and insecurities. The Iranian President also stated that Tehran had extended its hand of friendship towards countries in the region for maintenance of security in the Gulf, as well as the Strait of Hormuz. On the same day, Zarif made a much more measured statement, arguing that Tehran wanted to make September 22 a day of peace not war. Referring to Saddam Hussein’s invasion in 1980, he stated that this act, which received support of global powers, has been one of the reasons for turmoil in the region. Hours before Rouhani’s speech, Zarif, in an interview with the American media company CNN, stated that Iran was ready for a re-negotiated deal, provided Donald Trump lifted economic sanctions. The Foreign Minister made a telling remark:

We continue to leave the door open for diplomacy. In the meantime, our campaign for economic pressure will continue.

Rouhani had expressed his openness towards meeting Trump on the sidelines of the United Nations General Assembly (UNGA). Hours before his speech, one of his spokespersons stated that Tehran was willing to give commitments with regard to not expanding its nuclear program, provided the US lifted sanctions. During his speech, Rouhani made it clear that while he was willing to engage with the US, he would not do so under any sort of pressure, and Tehran would only engage with Washington if the US-imposed economic sanctions are removed. Rouhani dubbed these sanctions as economic terrorism.

Statement (and remarks) issued by France, the UK, and Germany with regard to the attack on Saudi’s oil facilities

What was significant, however, was the statement issued on September 23 by the UK, Germany, and France that Tehran was responsible for the attack on the oil facilities run by Aramco. The three countries, which have been firmly backing greater engagement with Iran, and have been so far critical of Trump’s approach, in a statement held that Iran was responsible for the attacks, and that these could lead to greater conflict in the region. The statement issued by the three countries did make the point that these countries supported the Iran and P5+1 nuclear agreement/JCPOA (Joint Comprehensive Plan of Action), asking Tehran to comply with the deal and adhere to the commitments.

Significantly, British PM Boris Johnson spoke in favor of Trump renegotiating the JCPOA, while French President Emmanuel Macron stated, in a conversation with reporters, that he was not ‘married to the JCPOA’. German Chancellor Angela Merkel, while speaking in favor of talks between Tehran and Washington, stated that Tehran’s conditionality of sanctions being lifted before talks take place was unrealistic.

Why France’s statement was especially surprising

Statements made by Macron came as a surprise, given that he has played a pivotal role in keeping the JCPOA intact and differed with Trump’s approach towards Tehran. Apart from fervently supporting the JCPOA, the UK, Germany, and France had also set up a Special Purpose Vehicle (SPV) to circumvent sanctions from Iran. This move had been criticized by senior officials of the Trump Administration, including Mike Pence, John Bolton, and Pompeo.

Macron also attempted to organize a meeting between Zarif and G7 Ministers on the sidelines of the G7 Summit held at Biarritz (the French President did meet Zarif, with G7 leaders giving him a go ahead to negotiate with Iran). A statement made by Trump, where he stated that he was willing to meet with Rouhani and described Iran as a country of great potential, raised hopes of possible engagement with Iran. Trump in his usual style did put forward conditionalities, and did state that he was not party to a joint statement by G7 on Iran.

It would be pertinent to point out that Macron even attempted a meeting between Rouhani and Trump on the sidelines of the UNGA meeting, though this did not work out. The French President did meet with the Iranian President on the sidelines of the UNGA. A tweet by the Iranian representative to the UN stated that apart from bilateral relations, Macron and Rouhani discussed ways in which the JCPOA could be saved.

Trump’s approach towards Iran: Back to square one?

The removal of John Bolton, a known Iran hawk, as National Security Adviser also raised hopes with regard to US engagement with Iran. In fact, Bolton’s approach vis-à-vis Iran was cited as one of the main reasons for growing differences between Bolton and Trump.

The attacks on the oil facilities have made Trump more aggressive

The attack on Saudi facilities however acted as a spoiler, and has given Trump the opportunity to act aggressively and put more pressure on France, Germany, and the UK to adopt a tough stance vis-à-vis Iran. Washington has already imposed sanctions on Iran’s Central Bank, and while Iran has warned of retaliations in case there is any sort of military action, US cyber attacks on Iran can not be ruled out. At the UNGA, Trump attacked Iran by saying it is a security threat to ‘peace-loving nations’. The US President also said that there was no chance of lifting sanctions as long as Tehran’s ‘menacing’ behavior continued.

With the UK, Germany, and France also backing US claims with regard to Iran being responsible for the attacks on Saudi oil facilities, Trump has become further emboldened.

Role of countries like Japan and India

While the reactions of European countries and the UK are important, one country, which has been very cautious in its reaction, has been Japan. Japan’s Defence Minister Toro Kono, in fact, stated that ‘We are not aware of any information that points to Iran’.

Japan has close economic ties with Iran. Earlier, Shinzo Abe had made efforts to intervene between Iran and the US. Abe, who visited Iran in June 2019, met with Iran’s supreme leader, Ayatollah Ali Khamenei, stating that it was a major step toward peace. The Japanese PM had also sought the release of US citizens detained by Iran.

Interestingly, Brian Hook, US Special Envoy to Iran, while alluding to Japan, China, and other Asian countries, stated that countries must not shy away from unequivocally acknowledging that Iran was responsible for the September 14th attack on Saudi oil facilities. Hook gave the example of the UK, France, and Germany. He also sought Asian participation, especially Japan and South Korea, in Washington’s maritime initiative to protect oil shipments through the Strait of Hormuz.

It would be important to point out that Japan, which has close economic ties with Iran, has already started looking at other sources of oil given the situation in the Middle East.

It is not just Japan. Even India would not like escalation of conflict with Iran, though so far it has stayed out. While New Delhi is looking to various sources for its oil needs (during Modi’s recent visit, one of the issues high on the agenda was closer energy ties with the US), the Chabahar Port, in which New Delhi has invested, is of strategic importance. Some recent statements from the Iranian side suggest a growing impatience with New Delhi, not merely due to toeing the US line with regard to the importation of oil from Iran (India had stopped buying oil from Iran, after the US removed the temporary waiver which it had given), but also slow progress on the Chabahar Port.

During the G7 Summit, Macron had urged the US to allow India to import oil from Iran, while Modi, during his meeting with Trump, also is supposed to have raised the Iran issue. While India has not made any statement with regard to the attack on Saudi oil facilities, Indian Foreign Secretary Vijay Gokhale visited Iran days after the attack (a number of issues, such as the progress of the Chabahar Port, and issues pertaining to trilateral connectivity between India, Afghanistan, and Iran, were discussed). The Indian PM also met with the Iranian President on the sidelines of the UNGA. Both of them are supposed to have discussed issues of bilateral and regional importance.

Conclusion

It is time that countries which have close ties with the US and robust economic engagement with Iran find common ground, rather than speaking in different voices. While at the G7 meeting, there was an opportunity for the same, but this was short lived. This is essential, not just for economic and strategic purposes, but also to ensure that Iran does not become totally dependent upon China. Beijing’s recent commitments of investing over $400 billion in Iran are a clear indicator of the point that, as a result of economic isolation, Tehran is left with limited options, and is tilting towards Beijing.

China has not just made important commitments in oil and infrastructure projects, but Beijing will also be stationing its troops to protect it’s investments in the oil sector. It is not just European countries (Germany, France and the UK) but countries like Japan and India, which should be wary of the growing proximity between Tehran and Beijing. New Delhi and Tokyo would be advised to work in tandem, to get both Washington and Iran to moderate their stance. While this is no mean task, given Trump’s unpredictability it is absolutely imperative.

Nightcap

  1. The trouble with capitalism Chris Dillow, Stumbling & Mumbling
  2. “Solve for the equilibrium, and…” Peter Boettke, Coordination Problem
  3. A vulgar theory of US hegemony Paul Poast, Duck of Minerva
  4. Yo, check this out Gephardt & Poe, KUTV

Nightcap

  1. What the Germans are reading R Jay Magill Jr, American Interest
  2. American conservatives have an assimilation problem Shikha Dalmia, the Week
  3. The technology trap Chris Dillow, Stumbling & Mumbling
  4. It’s not China that’s bellicose, it’s the CCP Aaron Sarin, Quillette

Nightcap

  1. When Europeans came to Asian shores Chris Nierstrasz, Aeon
  2. The origins of the military-intellectual complex Daniel Bessner, New Republic
  3. Notes from the Islamic Republic of Iran Bill Merritt, Liberty
  4. Switzerland’s little-known fifth language Molly Harris, BBC

Nightcap

  1. Freedom isn’t free Robin Hanson, Overcoming Bias
  2. The embarrassment of riches Brian Doherty, Reason
  3. American hegemony and imperial control Emma Ashford, War on the Rocks
  4. On prison nurseries Naomi Schaefer Riley, National Affairs

Venezuela, still going down

Venezuela crisis seems far from being solved, and the country now is entering into actual civil war. Some thoughts on that:

Contrary to leftist conspiracy theory and popular belief, the CIA does not interfere in other countries every other week. The last major US intervention to take down a government in a big country was in Iran in 1953. In the long run, considering the Iranian Revolution of 1979, it didn’t go too well. Therefore, it is understandable that today people in the White House are cautious.

Also contrary to popular belief and leftist conspiracy theory, the US hasn’t interfered much in Latin America in the past seventy years or so. Interventions in Central America and the Caribean were commonplace in the first decades of the 20th century (mostly during the progressivist government of Woodrow Wilson) but mostly cooled down in the 1930s.

Latin America in general and Venezuela, in particular, has little democratic experience, and this has nothing to do with outside forces. The counties in the region simply tented to make bad choices, rejecting classical liberalism in favor of mercantilism and political centralization.

Internationally, I believe that John Mearsheimer presented the most convincing theory to date: all countries desire to be superpowers. That’s the best way to feel safe in an anarchic world. However, given the dimensions of our planet and the current state of our technology, it is impossible for any country to be a global hegemon. Given that, they try the next best thing: to be regional hegemons and to stop other countries from being hegemons in their regions. The US is clearly the hegemon in the American continent. China and Russia are not happy with that and will try anything to change it. In the last few decades, both countries invested heavily in Venezuela, including its military capabilities.

On a regional level, Brazil could balance Venezuela to some extent. But it can’t, because the Worker’s Party trashed the country, while at the same time helped Venezuela. Brazil is too busy solving its own problems.

Sadly, Venezuela is by itself. While Nicolas Maduro has oil to buy his generals, and they don’t suffer from a conscience crisis, the humanitarian crisis will endure.

Nightcap

  1. Is this the end of the American Century? Adam Tooze, London Review of Books
  2. The case for a Shi’a Century Fitzroy Morrissey, History Today
  3. The ‘Caliphate’ Is Gone. Where’s the ‘Caliph’? Kathy Gilsinan, the Atlantic
  4. Europe’s media has an actual bias problem Bill Wirtz, American Conservative

Nightcap

  1. The US constitution and populism, left and right Ilya Somin, Volokh Conspiracy
  2. Macron calls for the EU superstate Nathan Pinkoski, Law & Liberty
  3. Polybius as the father of Applied History Iskander Rehman, War on the Rocks
  4. Rome and Carthage in the Histories of Polybius Barry Stocker, NOL

Nightcap

  1. The elusive Byzantine Empire Dionysios Stathakopoulos, History Today
  2. Dragged Across Concrete – a review David Hughes, Quillette
  3. An archive of atrocities Mark Mazower, New York Review of Books
  4. A conservative foreign policy Jared Morgan McKinney, Modern Age