China

The multiple crises in North Africa, from the revolution in Tunisia, through the protests in Egypt and to the conflict in Libya, has reinvigorated British foreign policy. In the last couple of years classic international issues have been pushed to the side by a need to focus on economic statecraft. Foreign ministers became less important as finance ministers gained prominence. This will now change, as leaders shift their focus onto the Libya crisis. The UN is again in focus, not the G20. The second change may be on East/West dynamics. Before the crisis, the air was thick with talk of a multipolar world and how power was flowing roughly from

We now know that Libya is heading into a full on civil-war and that Gaddafi is prepared to do pretty much anything to stay in power. The former interior minister Abdel Fattah Younes al-Abid, admittedly a partial source, says that he defected after arguing with the Libyan leader over his plan to bomb the rebel stronghold of Benghzai. In an ideal world, the United Nations would move to impose a no fly zone on Libya. But this is unlikely to happen. Russia and China, for obvious reasons, want to uphold the principle of non-interference in another state’s affairs even if that state is brutally repressing its own people.   This

The Middle East is set for renewed displays of public anger towards the region’s governments. Events in Bahrain are particularly worrying. Troops took control of the capital, killing at least four protesters in the worst violence in the Gulf kingdom in decades. The trouble in Bahrain, which houses the U.S. Navy’s 5th fleet and is home to a large U.S. military base, illustrates a point Ben Judah and I make in a new article: that the three pillars of US post-World War II power in the Middle East – commercial ties, military bases and client states – are crumbling: “A new Middle East is taking shape, buffeted by Pacific trade

Official figures suggest that China has replaced Japan as the world’s second largest economy, after an estimated 10 percent growth rate left China with an economy worth close to $5.8trillion at the end of quarter four 2010. Japanese growth hovered around the 3 percent mark in 2010 with a total GDP value of $5.47 trillion. Analysts have told the BBC that it is ‘realistic’ that China will overhaul the US’ economy in about a decade, which, as Pete has demonstrated, does not look too outrageous a suggestion.  All of this puts me in mind of the European Union. The CIA World Factbook records that the EU leads the globe in

Yesterday was momentous, but we should not lose sight of the head of the IMF saying that the Chinese renminbi could take steps to becoming a global reserve currency. To be specific: Dominique Strauss-Kahn has in mind adding renminbi to the IMF’s Special Drawing Rights system. In itself, no big deal – but a notable kiss being blown to Beijing. It fits a trend. The Chinese, notoriously, manipulate the value of their currency to keep their goods cheap, so they can’t have their currency treated with reserve status. But power is shifting – and America’s fiscal misbehaviour has unsettled international investors. John Peace, chairman of UK bank Standard Chartered, put

Today’s Times splashed on the spat between Britain and EU foreign policy “czar” Catherine Ashton over the embargo barring arms sales to China. The embargo was put in place after the Tianamen Square massacre and has remained in place, largely at US insistence, ever since. But is it the right policy? The policy has not prevented China from becoming a military power — its annual defense budget officially stands at $70 billion, although the Pentagon believes the real figure to be twice as high. China is developing carrier-killing missiles that even NATO does not have, and will soon sell weapons rather than seek to import them. There is, of course,

As if to illustrate Pete’s post about the rise of China and India, Chinese Vice Premier Li Keqiang has just finished a visit to Spain during which agreements worth 5.7 billion euros were signed. The Chinese delegation is said to have committed itself to buying six billion euros of Spanish debt, which helped calm markets and provided some relief for Spain’s recession-hit economy. Around the time that the Soviet Union collapsed, the Chinese used to say only they could save communism. Twenty years on, it seems only they can save capitalism. The Spanish are certainly in no doubt about the importance of their newfound Chinese friends. The left-leaning Spanish newspaper

China is doing what it can do to scupper the forthcoming Nobel Peace Prize ceremony in Oslo. Their Foreign Ministry has now said that countries who decided to attend event would be showing disrespect to China: “We hope those countries that have received the invitation can tell right from wrong,” the ministry’s spokeswoman told journalists. Many of the world’s human-rights abusers have been only too happy to oblige, including Pakistan, Iran and so on. They want to keep friendly with China and share Beijing’s anti-democratic agenda. But, oddly enough, Serbia, a would-be EU member, is said to have chosen to boycott the Norwegian event. Keen to get Chinese financial assistance

The latest cache of Wikileaks has done America no end of good. The Saudis urged the US to bomb Iran – a sign that the Arab world can make common cause with the States and Israel. It has also emerged that North Korea has sold the Iranians long range rockets – Moscow, Berlin and Istanbul are all within the Ayatollah’s range. But the most important revelation is that China has tired of North Korea’s lunatic machinations, recognising that the rogue state is an impediment to global and regional security. China is also convinced that the country will not survive Kim Jung-il’s death and favours a union of the two Koreas,