bs_bs_banner Asia & the Pacific Policy Studies, vol. 1, no. 2, pp. 409–422 doi: 10.1002/app5.38 Original Article A New Regional Cold War? American and Chinese Posturing in the Pacific Steven Ratuva* Abstract 1. Introduction It is often argued that the United States and Chinese engagement in the Pacific manifests a clash of foreign policies that mimics the cold war confrontation of the post-World War II era. The article argues that rather than a dichotomous contestation of foreign policies, the United States–China engagement is more complex in nature and needs to be understood using more ‘syncretic’ lenses to understand the complex synergy in their relationship, which oscillates between tension and accommodation, cooperation and competition. While there are areas of policy contestation, there are also areas of policy appeasement and convergence. This may act as a stabilising factor in the region as the two powers acknowledge the significance of the other and the long-term cost of direct confrontation on their respective interests. This potentially contributes to a ‘stable’ environment where the Pacific Island Countries are prevented from taking sides, which could potentially exacerbate tension and regional instability. When the late Fijian–Tongan anthropologist Epeli Hau’ofa (1993) coined the phrase ‘our sea of islands,’ which became a popular aphorism in Pacific Studies discourse, he was making reference to the Pacific, not as a group of tiny and disparate islands in an empty ocean, but as a large oceanic continent that defined the Pacific people’s sense of being and primordial claim to sovereignty and ownership of their oceanic cosmology. Ironically, the notion of ‘our sea’ has been expropriated and redefined in a new lexical context as competing hegemons in the form of the United States and China stake their claim and legitimacy in the Pacific. The geopolitical dynamics has consequently stretched the ontological boundaries of ‘our sea’ to include the United States and China who now see themselves as an inseparable ‘part’ of the Pacific. This article is not about deconstructing the epistemological and ontological dimensions of ‘our sea’ as the philosophically inclined Hau’ofa would have loved me to do, but simply attempts to examine some salient features of the geopolitical engagement between the United States and China in the Pacific as they attempt to assert the legitimacy of their respective claims as Pacific states. Thus, the questions we need to pose here are: Is this exertion of influence and legitimacy in the Pacific by the United States and China to be framed through the cold war prism, which depicts relations in terms of fundamental contestation of strategic and economic policies? Key words: diplomacy, aid, strategic, pivot, cold war * Centre for Pacific Studies, University of Auckland, Auckland 1142, New Zealand; email ⬍[email protected]⬎. The author wishes to acknowledge the New Zealand Marsden research grant for supporting the regional security program of which this article is part. © 2014 The Author. Asia and the Pacific Policy Studies published by Wiley Publishing Asia Pty Ltd and Crawford School of Public Policy at The Australian National University. This is an open access article under the terms of the Creative Commons Attribution-NonCommercial License, which permits use, distribution and reproduction in any medium, provided the original work is properly cited and is not used for commercial purposes. 410 Asia & the Pacific Policy Studies Or is the engagement between the two powers shaped by more complex diplomatic policy considerations to maintain power ‘equilibrium’? This article makes the argument that the relationship between the United States and China in the Pacific is more complex than simply framing it fundamentally in cold war hyperbole. The dynamics are more syncretic than dichotomous. The term ‘syncretic’ is used here to refer to the coexistence and complex synergy between tension and accommodation, cooperation and competition (Ratuva 2004). While there are areas of policy contestation, there are also areas of policy appeasement and convergence. The conceptual boundaries and the specific contexts of the often ambiguous term ‘Pacific’ needs clarification here because of the diverse ways and situations in which the term is used. In this article, the term needs to be understood in terms of two interlinked geopolitical entities. The first is a rather loose generic reference to the Asia-Pacific region, which incorporates the Pacific Rim countries in East Asia as well as the Pacific island states. The second refers specifically to the Pacific Island Forum countries (PIFCs). Where appropriate, the specific designation is used. 2. The Context: China–United States Engagement in Oceania Because of its central location between the two powers, the Pacific Ocean is where the United States and Chinese sovereign claims and strategic projections intersect, and as a consequence, PIFCs find themselves as ‘collateral’ players in the wider geopolitical chess game. Of the two, the United States is closer and more influential to the PIFCs politically, economically and culturally (Keown et al. 2014). Unlike China, it has been a colonial power in the Pacific for a long time, and since the beginning of the twentieth century, US influence in music, fashion, film, art, media, food, education, literature and corporate culture has contributed significantly in the transformation of the sociocultural landscape of Pacific island communities in profound ways (Crocombe May 2014 2001). As the dominant power since World War II, US strategic posturing was to ‘prevent any potential adversary from gaining a strategic posture in the South Pacific’ that could pose a challenge to its hegemony (Congress Research Service 2007, p. 2). Key to US interests were protection of its territories (Guam, the Northern Mariana Islands and American Samoa), the Freely Associated States (Marshall Islands, Micronesia and Palau) and military bases on Guam and Kwajalein atoll (Marshall Islands) (Erickson & Mikolay 2006; Lutz 2010). Other interests include preventing transnational crime and the harbouring of terrorist cells, and working with Australia and New Zealand to meet common regional goals (Friedman 2001; Congress Research Service 2007). During the cold war, the Pacific was often dubbed the ‘American Lake’ because of the US strategic and military dominance through its numerous bases, military networks and alliances around the Pacific and Pacific Rim countries (Zarsky et al. 1986). The approach was based on the ‘strategic denial’ doctrine, which involved the central role of the ANZUS alliance, consisting of Australia, New Zealand and United States, to keep the Pacific free of Soviet influence through aid, diplomacy and other means. At the end of the cold war, the United States reduced its active engagement with the PIFCs because of priorities elsewhere and it was assumed that Australia, the United States’s closest ally in the Pacific, was to take care of the Pacific on its behalf as ‘deputy sheriff’ (Fry & Kabutaulaka 2008). However, recent increase in Chinese influence has altered the US strategic approach from indirect engagement to direct involvement. On the other hand, China is not as culturally and politically influential as the United States among the PIFCs, although the presence of Chinese settlers dates back to the 1800s. Over the years, a significant number of them had settled in several countries such as Fiji and Samoa as labourers and small-scale entrepreneurs and many intermarried with local women (Pan 1998). By the mid-1900s, many PIFCs had sizeable Chinese populations who were mostly involved in commerce and some © 2014 The Author. Asia and the Pacific Policy Studies published by Wiley Publishing Asia Pty Ltd and Crawford School of Public Policy at The Australian National University Ratuva: A New Regional Cold War? of their descendants even became prominent personalities in politics, civil service, academia and sports (Crocombe 2007). Since the beginning of the twentieth century, there have been further waves of Chinese migration to PIFCs either as traders, farmers or as part of transnational crime networks. The first Chinese embassy to be established in the Pacific was in Fiji in 1975 followed by Samoa in 1976, and since 1980, competition against Taiwan over recognition became a dominant factor in China’s economic and political relations with PIFCs (Wesley-Smith 2007; Atkinson 2010; Brady 2010). There is a view that the growth in Chinese interests in the Pacific has been attributed to ‘a political vacuum created by US neglect’ since the end of the cold war (Congress Research Service 2007, p. 14). This US-centred perception does not take into consideration China’s geopolitical competition with Taiwan as well as China’s own global ambitions and ‘grand strategy’ as a growing power to maintain a certain degree of diplomatic and economic influence in various regions of the globe including the Pacific (Yang 2009a, 2009b, 2011b). The United States deploys three basic strategies in its engagement with China in the Pacific. The first is extensive diplomatic engagement to rekindle US historical ties and pro-US loyalty among the traditionally pro-US PIFCs. This started when President George Bush pledged to ‘re-engage’ with the region and declared 2007 ‘The Year of the Pacific’ during the Pacific Islands Conference of Leaders (PICL) triennial meeting in Washington DC in May of the same year. Issues discussed in the conference included expansion of public diplomacy, strengthening economic ties, US military expansion in Guam and impact on the region, cultural and educational exchanges, aid, trade, global warming and democracy (U.S. Department of State 2007). To further bolster its commitment to the Pacific, in September 2012, Ms Clinton attended the Post-Forum Dialogue at the Pacific Island Forum leaders meeting in Rarotonga, Cook Islands, where she committed long-term US aid and engagement with the PIFCs and declared that ‘the Pacific is big 411 enough for all of us,’ an obvious reference to China and other foreign powers (Australian Broadcasting Corporation 2012a). The second strategy is enhancement of its aid delivery in the region as symbolised by the reopening of the United States Agency for International Development office in Port Moresby, Papua New Guinea, in 2011 (15 years after the Suva office closed), promise of more aid and increased investment. In Rarotonga, Ms Clinton made the assurance that ‘the United States is already invested in the Pacific’ and ‘we are increasing our investments, and we will be here with you for the long haul’ (Australian Broadcasting Corporation 2012a). She also announced new aid initiatives worth US$30 million on issues such as sustainable development, climate change and marine protection. The third strategy is to revive and strengthen the ANZUS alliance with Australia and New Zealand and a key to this is to rejuvenate military links with New Zealand after 30 years since New Zealand’s active participation lapsed following its 1984 nuclear-free policy, which disallowed US nuclear powered ships from entering its ports. The United States responded in 1986 by banning New Zealand warships from entering the United States, but this was lifted in September 2012 as the two countries have decided to revive and expand military cooperation (Australian Broadcasting Corporation 2013). In contrast, China is more focused on ‘soft power’ approach through diplomacy and economic relations (Wesley-Smith & Porter 2010). Although the figures are not conclusive, in the last 10 years, China has spent about US$600 million in aid in the Pacific and this is expected to rise significantly (Lowy Institute 2012). Another estimate puts Chinese aid disbursed in the Pacific from 2006 to 2011 at about US$850 million, which is roughly US$141 million a year, or around 6 per cent of total aid to the region (Pryke 2013). China’s aid has been largely in the form of visible and symbolic public infrastructure compared with the less visible US aid. Because of the Chinese economy’s sustained surplus in contrast to the United States’s constricted economic © 2014 The Author. Asia and the Pacific Policy Studies published by Wiley Publishing Asia Pty Ltd and Crawford School of Public Policy at The Australian National University 412 Asia & the Pacific Policy Studies situation, China’s aid to PIFCs is expected to be more sustainable in the long run. However, the cost of Chinese aid to the PIFCs has been an issue of concern especially the amount of debt incurred through soft loan, inferior quality of workmanship by Chinese companies who are often contracted for the projects and the tendency by Chinese contractors to flout local building codes and employment legislations. The Chinese contractors usually bring their own workers with them from China despite the abundance of local labour. Both China and the United States, as well as other regional powers such as Australia, New Zealand, Taiwan and Russia, see the Pacific Island Forum (PIF) as an important mechanism for regional influence. In as far as China is concerned, bilateral and subregional engagement is far more critical especially given the fractured and weakening state of the PIF. China’s soft power strategy as manifested in its support for the increasingly powerful Melanesian Spearhead Group (MSG) as well as the Fiji-led Pacific Islands Development Forum (PIDF) gives it the head start and edge over the United States whose tactic tends to be based more on appeal to historical loyalty than focus on the PIFCs contemporary interests. A significant feature of Chinese aid has been the shift from the classical ‘cheque book diplomacy’ where grant was readily provided without any obligation for repayment to provision of ‘soft loans’ on badly needed public infrastructure. Unfortunately, this has worsened the accumulated debt burden for some PIFCs. One of the most critical components in the United States–China posturing in the Pacific is the ‘Fiji factor’. Because of Fiji’s importance as a regional hub and its regional dominance over the years, both China and the United States consider it vital to their interests. 3. Fiji: Centre of United States–China Contestation? Fiji’s close relation with China was influenced by Fiji’s ‘look north’ policy, which endeavoured to seek alternative friends as a consequence of sanctions by Australia and New Zealand following the 2006 coup (Yang 2011a; May 2014 Firth 2013). In his article ‘A cold war in the warm Pacific’, John Wineera, a New Zealand military analyst, argued that because of its central location as the economic and political hub of the South Pacific, Suva has become the ‘mid-point of confrontation’ for United States– China geopolitical rivalry, which will reverberate around the Pacific (Wineera 2012, p. 1). While the cold war rhetoric may be a bit of an exaggeration, the pertinent issue here is the potential Fiji has to be leveraged by either power as a fulcrum for influence among the other PIFCs. It appears that the United States is not so much concerned with Chinese aid itself but how much influence China is able to wield as a result of aid and diplomacy as well as China’s latent long-term strategic interests, which are often denied publicly (Yang 2011a). A critical issue in this regard is the anxiety over increasing military and political links between China and Fiji, traditionally a US ally. Visits to Fiji by Chinese surveillance ships and senior Chinese officials have become a common occurrence within the last 6 years. The most senior official to visit Fiji was Vice President Xi Jinping in 2009. According to leaked cables from the New Zealand embassy released by Wikileaks, New Zealand and Australia had attempted unsuccessfully to stop Jinping’s visit to Fiji because it would ‘send the wrong message in light of international efforts to urge the government in Suva to carry out democratic reforms’ (Field 2011, p. 1). The cable went on to say that ‘Fiji remained strategically important for China and Beijing was privately candid about linking development assistance and economic engagement with guaranteed political support on issues of interest to China’ (Field 2011, p. 1). A number of senior Chinese officials have visited Fiji since the 2006 coup, and in May 2013, Fijian Prime Minister Frank Bainimarama visited China and met President Xi Jinping and Premier Li Keqiang who promised to engage in further economic, military and diplomatic cooperation (Islands Business 2013). Apart from the usual infrastructural aid, one of the most politically significant Chinese projects in Fiji will be the setting up of a Centre for International Studies and © 2014 The Author. Asia and the Pacific Policy Studies published by Wiley Publishing Asia Pty Ltd and Crawford School of Public Policy at The Australian National University Ratuva: A New Regional Cold War? Diplomacy incollaboration with the Shanghai Institute of International Studies (SIIS) one of the leading foreign policy research institutes and think tanks for the Chinese government (Fiji Ministry of Information 2013). The SIIS has been tasked with training Fijian diplomats and other civil servants for local and foreign deployments. This is significant because creating a cadre of Chinese-trained Fijian intelligentsia would be a powerful tool for intellectual and ideological hegemony to shape policies, which are sympathetic to China’s regional and global interests. Also of considerable concern is the highly speculative assumption that China may set up a military base of sorts in Fiji and this suspicion is continuously fuelled by the increasing military ties between the two countries in terms of training and provision of equipment. In January 2013, Major General Qian Lihua, Chief of Foreign Affairs Office in China’s Ministry of Defence visited Fiji as part of an ‘annual defence co-operation briefing’ (Pacnews 2013, p. 6). Being the highest ranking Chinese military official to be welcomed into Fiji, Lihua’s visit was both symbolic and strategic, more so after he discussed delivery of military hardware in the form of Chinese-made naval boats and other equipment to strengthen Fiji’s military capability. The two sides made an agreement that the People’s Liberation Army ‘would help and support the Fiji Military Forces (FMF)’ in the areas of ‘co-operation, training and development’ (Pacnews 2013, p. 6). Amidst the anxiety, China’s Vice Foreign Minister Cui Tiankai denied rumours of a potential Chinese military base in Fiji by saying, ‘We are not interested in sending our military forces everywhere in the world-we have no interest in doing that . . . What we are doing there (Fiji) is to help the country, the people there, to achieve their development’ (Reeves 2012). Nevertheless, the dilemma for the United States is that while the pivot (which shall be discussed later) is meant to contain Chinese military overtures, the challenge is to devise a diplomatic strategy to win back Fiji’s loyalty. The United States’s military links with Fiji goes back to WWII when Fiji was used as 413 base for the US military during the Pacific war (Lowry 2006) and this continued over the years through training for Fiji military officers in the United States. During the cold war, Fiji was ideologically aligned with the United States, and Fiji, like many other PIFCs, has always been part of the pro-US voting bloc in the United Nations. Fiji’s suspension from the PIF and imposition of sanctions by Australia and New Zealand compelled Fiji to redefine its regional and global options and alliances. Among these was the pro-China policy to make up for the severed links with Australia and New Zealand. Fiji also mobilised the support of the Chinesefunded MSG subregional block consisting of Papua New Guinea, Solomon Islands, Vanuatu, Front de Libération Nationale Kanak et Socialiste (the Kanak political group in New Caledonia) and Fiji as a counter to PIF, which has been described as ‘Australian-dominated’ (Grynberg 2013, p. 1). Fiji also supported the relocation of the African Caribbean Pacific secretariat from the PIF to Papua New Guinea in a move that ‘weakens both the Pacific islands Forum and the influence that Canberra has long enjoyed through it’ (Herr 2012, p. 1). In addition, Fiji formed the PIDF as a possible alternative to the PIF, and China is already said to be a possible funder of the proposed Suvabased secretariat. Fiji’s growing selfconfidence was given a major boost after it was elected chair of the G77 plus China, an association of 132 member developing countries within the UN (Swami 2012). In a way, all these developments have seen the strengthening of China’s power and the relative demise of regional influence by Australia and New Zealand, the United States’s major regional allies (Zhang 2007). By lifting sanctions and intensifying engagement initiatives with Fiji, the United States probably hopes to counter Fiji’s growing support for China. The lifting of sanctions on Fiji by Australia and New Zealand in early March 2014 as a result of positive developments towards Fiji’s election in 14 September 2014 may thaw the situation to some extent; this is not expected to change the regional power dynamics significantly in the short term. © 2014 The Author. Asia and the Pacific Policy Studies published by Wiley Publishing Asia Pty Ltd and Crawford School of Public Policy at The Australian National University 414 Asia & the Pacific Policy Studies While playing the China card may provide Fiji with temporary psychological advantage over Australia and New Zealand in the geopolitical manoeuvring game, the down side is that there seems to be an increase in Chinaaid fatigue in Fiji. The poor quality of workmanship, failure to pay for worker’s provident fund and breaching of local building laws and regulations by Chinese companies have become controversial subjects of discussion in Fiji. On the basis of these negative experiences, the Fiji government has reassessed its technical preference by contracting three New Zealand companies to construct and repair Fiji roads instead of the once preferred Chinese companies such as China Railway. Beneath the veneer of diplomatic showmanship is the growing anxiety and concern about the appropriateness of Chinese technology and development ethics. Moreover, both Fiji and China use their close relationship as means of achieving their respective political and economic interests. For China, it’s a way of establishing a vital foothold in Oceania to facilitate its diplomatic, economic and strategic reach, while for Fiji, China is a generous source of development money and a convenient political leverage to use against its hostile neighbours, Australia and New Zealand (Zhang 2007; Yang 2011). It must be noted that for economic, political and strategic reasons, China values its relationship with New Zealand and Australia more than Fiji and thus one would expect it would be sensitive to unnecessarily antagonising them. The validity in Wineera’s suggestion that Suva has become the centre of cold war contestation in the Pacific is perhaps in relation to the United States’s calculated response to Chinese influence; however, there does not seem to be any evidence of direct gunboat-type contestation. Both countries use delicate diplomatic engagement strategies with Fiji. The United States is trying to revive historical friendship with Fiji and China is trying to consolidate new ties, and they both do so with the consciousness that they need to coexist in a mutual way, as Ms Clinton suggested, and mindful of the fact that open competition can only be detrimental to both sides’ interests. May 2014 Meanwhile, Fiji appears to enjoy playing one against the other to fulfil its own aspirations as a mini regional power. 4. The Asia-Pacific Pivot In the broader scheme of things, it would be relevant at this point to situate the recent US-increased engagement in the Pacific in the context of the Asia-Pacific pivot. While Bush’s declaration of ‘Year of the Pacific’ was rather low keyed, the new surge in US interest in the Pacific under Obama’s pivot is much more comprehensive and encompassing. The Asia-Pacific pivot is the United States’ broad strategy to ‘rebalance’ power in the Asia-Pacific region in response to Chinese economic, political and military interests (Congressional Research Service 2012). While more focus seems to be on Asia as a large market and source of raw materials, the ‘spill-over’ of the pivot on the PIFCs are still significant because of the geopolitical interconnectedness between Asia and the Pacific. The Pacific is the common ‘shared’ space between China and the United States because it is where they define, project and protect their respective sovereign sea borders; thus, both see themselves as Pacific powers. In his speech to the Australian Parliament in November 2011, President Obama referred to the Asia-Pacific as a ‘top priority’, and added that ‘as a Pacific nation, the United States will play a larger and long-term role in shaping this region and its future . . . The United States is a Pacific power, and we are here to stay’ (quoted in Powers 2013, p. 1). Inherent in this broad strategy is proactive diplomatic engagement as well as consolidation of US military deployment in the Pacific through increased projection of naval power. It is envisaged that by 2020, about 60 per cent of the US naval forces will be stationed in the Pacific, an increase of 10 per cent from the current situation (BBC 2012) and there is also a plan to increase troop numbers from the current 320,000 stationed in the Pacific region. Extra locations for US military bases have been identified in addition to the existing ones and among these is Darwin in Australia where © 2014 The Author. Asia and the Pacific Policy Studies published by Wiley Publishing Asia Pty Ltd and Crawford School of Public Policy at The Australian National University Ratuva: A New Regional Cold War? 2,500 marines will be stationed by 2016 (Packham 2011). There are also plans for more US ships and military aircraft—including B52 bombers—to operate from Australian bases (Packham 2011). In addition, the United States has consolidated its foothold in the Asian continent by strengthening its links with countries such as Japan, Vietnam and Philippines, which have been involved in sovereignty disputes with China (Powers 2013). The pivot allows the United States to demonstrate its unsurpassed prowess in war technology and strategy. For instance, it has been argued that ‘the pivot is not just a redirection of attention toward Asia; it is a proclamation of a new form of warfare, Air-Sea Battle, to solve the problem of China’s presumed military ambitions in the Pacific with an assemblage of existing and new long-range, precision-strike weapons’ (Wheeler 2013, p. 1). The notion of Air-Sea Battle (ASB), which is a central plank in the pivot’s military posture, is based on projecting an integrated air and sea power in the Asia-Pacific to directly confront China at its own doorsteps. The Micronesian islands of Guam, Northern Marianas and Marshall Islands, which have important US military presence, may be directly involved in the broader ASB strategy. The same could be said of Australia and New Zealand, which have vital communication bases for US global military and strategic networks. Although the other PIFCs may not be directly linked to ASB in purely military terms, the political and diplomatic spillover from the United States–China contestation may impact their diplomatic and political alignment as well as socio-economic development. In order for the United States to extend its military foothold in the Pacific, it needs to have loyal friends in the vicinity. The pivot is strongly associated with the document ‘Global Trends 2030: Alternative Worlds’, released in early December 2012 by the National Intelligence Council and which comes out once per presidential administration. It maps out the possible trajectory of global geopolitics in the next couple of decades to 2030. The most significant factors identified in the document are China’s expanding power and the need for decisive response 415 (US National Intelligence Council 2012). The obsession with Chinese threat is reflected in the fact that China is mentioned 300 times in the report and the final verdict is that the United States–China relationship is no doubt the most crucial bilateral engagement shaping the future. Part of the larger pivot project is intelligence gathering through high tech electronic means, not only by the United States but also by Australia on Asian and Pacific countries such as China, Indonesia, Thailand, Vietnam, Malaysia, East Timor and Papua New Guinea (Symonds 2013). The revelations in November 2013 regarding the role of the Australian Signals Directorate in establishing a ‘string of covert facilities’ inside Australian diplomatic posts for the US National Security Agency (NSA) has raised widespread condemnation (Symonds 2013, p. 7). This came in the wake of embarrassing revelations of NSA spying on a number of world leaders. In a way, the pivot has ‘raised’ the strategic value of some Pacific island states used for US bases (Palau, Guam, Marianas, American Samoa, Australia, New Zealand, Marshall Islands and Federated State of Micronesia) as well as enhanced the diplomatic and political value of others in the vicinity as the United States increases engagement in a more proactive way to rebalance the increasingly deepening Chinese influence (Bremme 2012). This means that the Pacific will be more militarised, and US aid may increase significantly in the future. These will potentially shape the geopolitical dynamics in the Pacific substantially, but I suppose the critical question here is, does the pivot constitute a new cold war scenario or is it merely symbolic posturing? 5. The Pivot and Cold War Rhetoric The use of the cold war rhetoric is not only limited to the pivot. Way back in 2005, prominent US strategic adviser Robert Kaplan (2005, p. 1) referred to the post-1990 situation as ‘this second cold war—which will link China and the United States in a future that may stretch over several generations’. He goes further to make the prediction that ‘Given the © 2014 The Author. Asia and the Pacific Policy Studies published by Wiley Publishing Asia Pty Ltd and Crawford School of Public Policy at The Australian National University 416 Asia & the Pacific Policy Studies stakes, and given what history teaches us about the conflicts that emerge when great powers all pursue legitimate interests, the result is likely to be the defining military conflict of the twenty-first century: if not a big war with China, then a series of cold war—style standoffs that stretch out over years and decades’ (Kaplan 2005, p. 1). More recently, in an article titled ‘US declares cold war on China’, Robert Maginnis (2011, p. 1), a US military analyst, succinctly captured the classical realism stance when he demonised China for its ‘aggressive behaviour and threatening rhetoric’, which are ‘complemented by massive militarization’. As if preempting and even encouraging a military showdown, Maginnis referred to Obama’s visit to Asia in September 2011 as an attempt ‘to declare a cold war with China’ (Maginnis 2011, p. 1). Expressing the same sentiments but with lesser dogmatism, Ian Bremmer, a geopolitical analyst and President of the Eurasia Group declared: ‘It’s already becoming a new kind of cold war,’ however, he later made the restraining assertion that ‘Americans and the Chinese will be frenemies’ meaning they will be neither friends nor enemies (World Economic Forum 2012). The new cold war rhetoric is predicated upon the assumption that US dominance is part of an unquestioned historical destiny and China’s emergence, as a potential competitor, needs to be kept in check and if need be, vehemently resisted. This view has resonance with the unipolar thesis, first advanced in the immediate post-cold war period of early 1990s, which unequivocally assumed that ‘no single power can come close to the United States in its role as a unipolar world leader’ (Christopher 1992, p. ii). The United States’s undisputed global role in this unipolar scenario is elaborated thus: Under the unipolar system the single world leader would preserve world order by making other nations follow the rules. It would attempt to stabilize the world by seeking and obtaining security, a concert of world community actions and, to a certain extent alignment of the major world player’s foreign policies to that of the leader (Christopher 1992, p. 18). May 2014 The rise of China is seen as a threat to this unipolar system and United States’s status as ‘single world leader’, and this needs to be resisted militarily, politically and economically to ensure that the United States repositions itself again as undisputed global power. The current bipolar United States–China fracas is seen as a temporary phase in the historical mission to make the world truly unipolar where the United States is the lawmaker, policeman, prosecutor and judge of the global order. This ideological grandstanding could divert attention away from some deeper interests (Trout 1975). For instance, an important aspect of the pivot posturing, which is not often understood, is the corporate marketing factor with potential for the increased militarisation of the Asia-Pacific region. Indeed the propaganda against a supposed imminent Chinese threat can also be seen as an effective marketing device for US arms sale in the region. Fred Downey, Vice President for National Security at the Aerospace Industries Association (AIA), a trade group that includes top US arms makers, said that the pivot ‘will result in growing opportunities for our industry to help equip our friends’ (quoted in Wolf 2013, p. 1). The increase in the Asian arms sale has the potential to offset the slowdown in European arms sale by AIA, a trade group that engages Pentagon suppliers such as Lockheed Martin Corp., Boeing Co. and Northrop Grumman Corp. The Pentagon’s Defence Security Cooperation Agency, which has overseen a boom in worldwide deals under President Obama, revealed information that there was a 5.4 per cent increase in arms deals to US$13.7 billion during the 2012 fiscal year compared with the previous year in the US Pacific Command’s area of activity (Wolf 2013). In 2012, there were about 65 notifications to Congress of proposed government-brokered foreign military sales and this constituted a combined potential value of more than US$63 billion. Also, more than 85,000 licence requests were received by the State Department office that regulates direct commercial sales in 2012, a record to date (Wolf 2013). According to the nonpartisan Congressional © 2014 The Author. Asia and the Pacific Policy Studies published by Wiley Publishing Asia Pty Ltd and Crawford School of Public Policy at The Australian National University Ratuva: A New Regional Cold War? Research Service, in 2011, the United States reached arms transfer agreements totalling US$66.3 billion, or nearly 78 per cent of all such worldwide agreements on arms. The pivot will no doubt increase the defence budgets of Asia-Pacific states and possibly close the gap with the largest two arms buyers Saudi Arabia (US$33.4 billion in 2011) and India (US$6.9 billion in 2011) in the future as the demand for more American military hardware increases (Wolf 2013). The increased militarisation in the AsiaPacific region may have a direct impact on the PIFCs (and observer countries) with direct military links with the United States but by and large the secondary impact in terms of China and the US competition for diplomatic influence cannot be easily discounted. This has potential to reshape regional geopolitics as the two powers attempt to carve out their respective extended spheres of influence in the broader Pacific region. It appears that the pivot is vital to help keep the wheels of the US military industrial complex spinning at a time when the US economy is at a critical juncture in its recovery from the recession. Making profit from demonisation of the enemy is clever business acumen. Although Leon Panetta, US Secretary of Defence, assured that the pivot was ‘not aimed at containing China’ while addressing military cadets Beijing in 2012, whether the Chinese will buy the argument so easily is of course highly debatable. While Panetta’s Orwellian overtures were aimed at reinforcing the US appeasement strategy to balance its military expansion into the region, it may not necessarily lessen the tension. Because the PIFCs are minor pawns in the global game, the economic fallout of the pivot may not be immediately obvious but in the long run, the PIFCs would be seriously sought after for resources such as sea bed mining. The economic value of the pivot to the US military industrial complex and the US economy generally through market and raw material access makes it imperative for the United States to play multiple cards at once. This means demonising China and magnifying its threat to keep other Asian countries on the 417 US side while appeasing China at the same time to maintain their critical economic relationship (Round 2013). Does the cold war thesis really stand up to the complexities of pragmatics? 6. Cold War or Diplomatic Appeasement? China’s response to the pivot and the associated military and economic sabre rattling is largely restrained and based on the use of ‘soft power’ diplomacy. This is perhaps because of recognition of its own comparative inferiority in military capacity and also, as a developing country, its priority is consolidating its economic interests rather than strategic expansionism. A view among some Chinese policy thinkers is that there should be a strategically balanced approach to ensure potential cooperation with the United States, but at the same time, one has to be fully conscious of the implications of the strategic shift towards the region to China’s sovereignty and interests (Chase & Purser 2012). For instance Major General Luo Yuan, Deputy Secretary-General of the China Association for Military Science, proposed an approach that was ‘simultaneously vigilant and calm’ (yi yao jingti, er yao danding), which in practical terms means that China should intensify its economic power and strengthen its military capability while maintaining good international relations. Yuan added that the best way to deal with the United States was not through military confrontation but to outmanoeuvre it diplomatically in the region (PLA Daily 2012). Prof Zhu Feng of the Center for International and Strategic Studies at the Peking University endorsed similar sentiments suggesting utilising the power of political charm ‘by coupling strength and gentleness, and using softness to conquer strength’ (gangrou bing ji, yi rou ke gang) (Global Times 2012). The Chinese Vice Foreign Minister Cui Tiankai was adamant that China should not get carried away by US threatening behaviour by ensuring good and stable relations between the United States and China (Xinhua 2012). Interestingly, the Chinese soft diplomacy approach may have compelled the United © 2014 The Author. Asia and the Pacific Policy Studies published by Wiley Publishing Asia Pty Ltd and Crawford School of Public Policy at The Australian National University 418 Asia & the Pacific Policy Studies States to rethink its assertive stance. For instance, while responding to attempts by the Republicans to cut US aid program in 2011, Ms Clinton made very strong comments before the Senate Committee on Foreign Relations thus: We are in a competition for influence with China. Let’s put aside the humanitarian, do-good side of what we believe in. Let’s just talk straight realpolitik. We are in competition with China (Washington Post 2011). She then accused China of ‘wine and dine’ diplomacy by inviting and entertaining Pacific leaders in Beijing as well as its support for Fiji’s ‘dictatorial regime’ (The Telegraph 2011). However, a year later while visiting Australia, Ms Clinton’s tune had suddenly changed into a conciliatory one. The projected image of China suddenly changed from that of a hostile dragon with fiery nostrils to that of a friendly cuddly panda: The entire region can benefit from a peaceful rise of China and as I’ve said many times we welcome a strong and prosperous China that plays a constructive and greater role in world affairs. The Pacific is big enough for all of us and we stand to benefit from increased cooperation across the Asia-Pacific region as long as it is a level playing field (The Telegraph 2012). Ms Clinton sounded as if she was reading from a Chinese script because very similar words were uttered earlier by China’s Assistant Foreign Minister Le Yucheng in December 2011: In my view, the United States has never left the Asia-Pacific, so there is no ‘return’ to speak of. China does not want to and cannot push the United States out of the Asia-Pacific. We hope the United States can play a constructive role in this region, and that includes respecting China’s major concerns and core interests. The Pacific Ocean is vast enough to accommodate the coexistence and cooperation between these two big countries . . . In the face of the changing situation, we should seek cooperation, not confrontation, to solve issues. We must be confident that as long as China is committed to peaceful development, openness and cooperation and can attend our own May 2014 affairs well, nobody can encircle us or keep us out’ (Ministry of Foreign Affairs People’s Republic of China 2011) Without any need for serious content or discourse analysis, it is of interest to note that Ms Clinton’s utterances about a year later was almost an exact copy of Yucheng’s statement when she said, ‘We never actually left Asia. We’ve always been here and been a presence here, we consider ourselves a Pacific power but in the 21st Century, it’s important that we make absolutely clear that we are here to stay’ (Australian Broadcasting Corporation 2012b). This emerging consensus for coexistence is a far cry from the pre-emptive and hostile scenario painted by the cold war enthusiasts. However, having said that, this unlikely spirit of mutuality does not necessarily imply any convergence of political interests. It is more likely that as they size each other up, both powers are keen to play the game of psychological appeasement and manoeuvring to avoid tension, which might be detrimental to both side’s interests. Nevertheless, this consensus is evolving in a scenario where both sides are fully conscious of the significance of the region as the new ‘centre of gravity’ where their economic and strategic interests intersect as reflected in Ms Clinton’s words: It is becoming increasingly clear that in the 21st century, the world’s strategic and economic center of gravity will be the Asia Pacific, from the Indian subcontinent to the western shores of the Americas. And one of the most important tasks of American statecraft over the next decades will be to lock in a substantially increased investment—diplomatic, economic, strategic, and otherwise—in this region (US Department of State 2011) By openly declaring its interests in such manner, the United States may hope to lessen tension, give more moral strength to its claim as a ‘Pacific power’ as well as redefine the global boundaries of US hegemony. 7. Conclusion The ongoing geopolitical dynamics in the Pacific has probably stretched the boundaries © 2014 The Author. Asia and the Pacific Policy Studies published by Wiley Publishing Asia Pty Ltd and Crawford School of Public Policy at The Australian National University Ratuva: A New Regional Cold War? of Hau’ofa’s ‘our sea’ as the two hegemonic states, the United States and China, stake their claims as Pacific powers, and as a consequence, different layers of contestations and alliances come into play. Diplomatic manoeuvrings to win hearts by China and the United States have redefined the ontological sense of the Hau’ofan ‘our’ in a dramatic way. China sees the PIFCs as potential members of its sphere of influence and so does the United States, which has traditionally saw the Pacific as its backyard and PIFCs as its loyal allies. To complicate the equation further, there are also foreign powers involved in mobilising alliances in the Pacific. These include Russia and Georgia (competing for support for the Georgian breakaway provinces of South Ossetia and Abkhasia) as well as the Arab League, through the United Arab Emirates aid, and Israel (support for Palestinian vote in the UN) and Indonesia (to lobby against support for West Papua independence) (Firth 2013). It appears that sovereignty has become a political commodity that can be bought or sold in the international geopolitical market (Firth 2013). In short, if ‘our sea’ is defined purely in geopolitical terms, as opposed to cultural cosmology, its ontological boundary has extended far beyond what Hau’ofa had originally envisaged. Having said that, it must be re-emphasised that there is little evidence to suggest that the geopolitical contestation between the United States and China is potentially destabilising in a cold war-type confrontation. The situation is far more complex than using the prism of a dichotomous relationship based on irreconcilable ideological differences. While there is a certain degree of distrust between the two powers, there is also a shared understanding that their interests are best served through diplomatic appeasement and mutual agreement for coexistence in the Pacific. Although the two powers have divergent strategic interests, their economic interests are deeply integrated through mutual dependency. In a way, this global interdependency contributes to lessening tension and helps generate conditions for greater mutuality. This developing consensus, no matter how tactically and conspiratorially framed it may 419 be, has the possible effects of neutralising any serious cold war-type confrontation. It is thus too simplistic to frame the relationship between the two powers purely in terms of the realist lenses, which depicts the two powers engaged in sabre rattling and uncompromising zero-sum gamemanship. The situation is much more complex and involves a syncretic mixture of geopolitical contestation and diplomatic accommodation as both powers attempt to allay the anxiety of regional states that are sandwiched between the two powers. For the PIFCs, the mutual diplomatic posturing between the two powers provides them with the opportunity to engage in a more enterprising way with the two powers to ensure maximum economic and political benefits. Fiji has been doing it, and some have taken advantage of the situation to play one power against the other to extract aid and other benefits without having to take sides. While the pivot is seen as a declaration of cold war by some, the reality is that it has much more complex characteristics. It consists of military, economic as well as diplomatic posturing where tension and diplomatic appeasement take place simultaneously in a syncretic way. At one level, there is sabrerattling politics and at another level there is intensive diplomatic appeasement driven by pragmatic rather than ideological interests, unlike the United States–Soviet global contestation of the classical cold war period. Rather than deploying a cold war, strategic, denialtype strategy to keep its adversary out of the Pacific, the United States is keen to engage in a game of appeasement and consensus with China in the shared belief that the Pacific is big enough for both and both are inherently part of the Pacific. 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