On May 29 Kazakhstan, Belarus and Russia signed into existence the Eurasian Economic Union (“EEU”), set to come into force in January 2015. The EEU’s aim is the economic integration of ex-Soviet countries, based on a European Union-style collective model. It builds on the Customs Union, signed in 2010, which implemented a common customs territory and removed internal border controls between the three states. Against the backdrop of a shifting geopolitical landscape sparked by events in Ukraine, and strengthening Russian and Kazakh bi-lateral relations with China, the original vision of the EEU may no longer be viable. Although they wish to show they have a diversified partner base, Kazakhstan and Russia also want to avoid perceptions of any overt economic threat to its shared Chinese partner. This is particularly relevant to Kazakhstan, which has in fact suffered economically from the initial implementation of the Customs Union, as laid out below.
China’s President Xi Jinping (left) and Kazakhstan’s President Nursultan Nazarbayev look on next to an honour guard during a welcoming ceremony at the eve of the fourth Conference on Interaction and Confidence Building Measures in Asia (CICA) summit, in Shanghai. Photo: Reuters
The Conference on Interaction and Confidence Building Measures in Asia, which begins today in Shanghai, largely passes unnoticed most years. But this year it is being touted as a major global event, largely due to Russia’s current awkward relationships elsewhere and China’s growing global profile.
It also offers a window into President Xi Jinping’s vision for China’s foreign policy.
In a year of potential flux across Central Asia, one trend should remain constant: China’s relentless expansion of influence in the region. As Western forces withdraw (in one configuration or another) from Afghanistan, the Manas Transit Center closes in Kyrgyzstan and the United States diplomatic, development and security cooperation efforts are precipitously decreased in the area between the Black Sea and the Pamirs, leaders in the region are preparing for a reality in which they will have to balance Russia’s bombastic pugnacity with China’s economic steamroller. While it would be ideal for the locals, so to speak, to carve out their own geopolitical and economic space, this task is made more difficult with the loss of a non-Eurasian great power as a potential partner. Continue reading →
A gentle rapprochement is under way between China and the United Kingdom. After almost two years in a diplomatic freeze, David Cameron visited Beijing last month and made an effective play for more trade. For the UK, this is a moment to recalibrate its relationship and play a role in coaxing China towards becoming a responsible international stakeholder. One route to that end is through understanding and working with China’s ‘march westward’ strategy, which has at its heart the re-activation of the ancient Silk Road linking China to Europe.
Two Asian giants met in Beijing this week, with Indian Prime Minister Manmohan Singh making a reciprocal visit to Beijing. The focus of the trip was economic cooperation and plans to get China-India trade to $100 billion by 2015, although it was the border disputes – and in particular the signing of a Border Defence Cooperation Agreement designed to defuse tensions – that captured the public attention.
What was missing from the agenda, however, was Afghanistan, a country in which Beijing and Delhi both have substantial mutual interests and where the two Asian giants could demonstrate their ability to responsibly manage the regional order.
Though it has received comparatively little attention, one of the most profound geopolitical trends of the early 21st century is gathering steam: China’s pivot to Central Asia. As American military forces withdraw from Afghanistan and gaze toward the Asia-Pacific, and while Washington’s European allies put NATO’s eastward expansion on the back burner, Central Asia has become China’s domain of investment and influence. The Washington policy community finally woke up to this reality in September, when Chinese president Xi Jinping swept through Central Asia, signing tens of billions of dollars worth of deals and generally treating the former Soviet republics as if they were in China’s sphere of influence. Continue reading →
Whither Central Asia after the US withdrawal from Afghanistan? That is the question on the lips of Central Asia watchers globally, as well as policymakers and pundits in the region. There are numerous theories, but few take into account the full picture of shifting geopolitical tectonics.
The narrative popular in some circles in Washington and propagated by some in Kabul and elsewhere in the region is that the greatest upcoming threat will be the potential “spillover” of extremist Islamism into the post-Soviet space.
The coming great power vacuum in the region, when the US loses interest and Russia finds itself less capable of asserting itself, is often linked to the supposed spillover effect to create a swirl of potential political instability, perhaps resembling the current tumult across the Middle East. Continue reading →
The way Central Asian states will turn — to Russia’s Eurasian Union or to China — is the test for influence in the region. Photo: (cc) Wikimedia/IvaNdimitry
If one turns enough of a blind eye, it is easy to be optimistic about Central Asia. Wily diplomats from Kyrgyzstan and Tajikistan are masterfully playing off the great powers. Kazakhstan and Turkmenistan are turning into hubs in their own right – and nobody can tell plucky Uzbekistan what to do. This is nobody’s backyard, and attempts by neo-imperialists in Moscow, Washington and Beijing to play games in the region are only strengthening the hands of the Central Asian states themselves. This is a comforting picture – which is why Western policymakers love it – but it looks increasingly false as President Putin tightens the screws.
Why a Eurasian Union matters
Russia’s desire to strengthen its sphere of influence in Central Asia seems to be intensifying. The first sign came in October 2011 when Russia’s ‘national leader’ published his vision for a Eurasian Union in the Gazprom-Media owned daily Izvestia. Here Putin stated that the Customs Union with Belarus and Kazakhstan that would come into force on 1st January 2012 was just the beginning – and that it would expand ‘by involving Kyrgyzstan and Tajikistan. Then, we plan to go beyond that, and set ourselves the ambitious goal of a higher level of integration – a Eurasian Union.’
In the last two years, China has emerged as the most consequential outside actor in Central Asia. As we have described in other writings, China’s ascension to this role has been largely inadvertent . It has more to do with the region’s contemporary circumstances and China’s overall economic momentum than a concerted effort emanating from the Zhongnanhai. The implications for United States and NATO policy are nevertheless profound. Not only have the geopolitics of Eurasia shifted in ways little understood in Washington and Brussels, but the socio-political and physical undergirding of the post-Soviet space from Aktobe to Kandahar is being transformed.
Official Chinese policy in Central Asia is quiet and cautious, focused on developing the region as an economic partner with its western province Xinjiang whilst also looking beyond at what China characterizes as the “Eurasian Land Bridge…connecting east Asia and west Europe” (Xinhua, September 4, 2012). Chinese state-owned enterprises (SOEs) are active throughout the region on major infrastructure projects, but it is not clear how much they are being directed as part of some grand strategy as opposed to focusing on obvious profitable opportunities. The Shanghai Cooperation Organization (SCO), the main multilateral vehicle for Chinese regional efforts and reassuring engagement is a powerfully symbolic, but institutionally empty actor. Many smaller Chinese actors—ranging from shuttle traders to small-time entrepreneurs to schoolteachers and students posted to Confucius Institutes throughout the region—are the gradual vanguard of possible long-term Chinese investment and influence. Continue reading →
Alexandros Petersen is quoted by Joshua Kucera on EurasiaNet.
Part of the reason is that Central Asia remains a low priority for the government in Beijing, and so policy is shaped on an ad hoc basic via deals made by various companies and government organs, said Alexandros Petersen, an analyst and fellow at the Woodrow Wilson Center who studies Chinese policy in Central Asia. “There is no grand strategy for Central Asia on the part of Beijing,” Petersen said. “What there is, however, is a confluence of all the activities of these multifarious actors which, regardless of what Beijing wants or doesn’t want, means that China is nonetheless the most consequential actor in the region.”
Nevertheless, China’s strategy towards Central Asia may be a function of its need to pacify Xinjiang, Petersen said: “The engagement in Central Asia … has to do with security concerns about Xinjiang, number one, and only secondly, after that, is it about resources and economic development.”
Last month, Russia was reportedly ready to provide weapons worth $1.1 billion to Kyrgyzstan and $200 million to Tajikistan along with a further $200 million in petroleum products. In early June, China offered $10 billion through the Shanghai Cooperation Organization (SCO) to Central Asia. India has been focusing on developing a strategic partnership with Tajikistan since September, while the US always develops a stronger relationship with Uzbekistan.
There is a sense that we are returning to the “Great Game” in Central Asia. But this focus on abstract theories misses hard realities on the ground. Outside powers invest in Central Asia to advance their individual national interests, not out of a strategy directed against other powers. Continue reading →
China is on its way to becoming the most consequential actor in Central Asia. This isn’t a critical or a negative statement, but rather a reflection of a reality on the ground.
The heavy investments in Central Asian infrastructure and natural resources, the push to develop the Xinjiang Uyghur Autonomous Region, and China’s focus on developing the Shanghai Cooperation Organization into an economic player are slowly reorienting Central Asia toward China. None of this means that China is aiming to become a regional hegemon, but unless it is willing to write off considerable regional investment, it is going to find itself needing to engage in regional affairs in a more focused manner.
And these actions are likely to be interpreted regionally as hegemonic. A potentially very prosperous corner of the world, Central Asia, is in an early stage of development that could easily be pushed by instability in a wrong direction. China needs to prepare herself to step in and help resolve matters.
BRUSSELS - World media has been abuzz with America’s “Asia Pivot” and President Barack Obama’s groundbreaking trip to Rangoon.
But while the visit signals the importance of Asia as a strategic focus for Obama’s second administration, the same cannot be said of Europe.
This week’s visit by Catherine Ashton to Central Asia offers a possible key that could both refocus Europe on an area it has long ignored, as well as helping shift its relationship with China onto a more practical basis.
European leaders talk of paying attention to Asia and have long cultivated a “strategic partnership” with China, but there is little evidence of much of this having any relation to what is happening on the ground.
What do you do about attracting investment if you are a remote corner of China, best-known internationally for your ethnic tensions?
If you are Xinjiang, you invest heavily in a blockbuster economic exhibition. Urumqi is this week hosting its second annual China-Eurasia Expo, opened this year by premier Wen Jiabao, a clear upgrade from last year’s star host, vice premier Li Keqiang.
Leaders and/or ministers from seven countries flew in, giving credence to Wen’s claim that the Expo aimed ‘to build a new bridge of friendship and cooperation across the Eurasian continent…and make Xinjiang a gateway.’ But it’s along way from prime ministerial declarations to the investment that Xinjiang badly needs.