Daily Archives: September 10, 2024

Peru’s Stance On Megaport Is a Test of China’s Influence

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“Now the National Port Authority is trying to rescind the exclusivity, claiming it made a mistake…The Chinese company, however, remains firm and even hints that it could withdraw if it does not obtain exclusive access.”

China’s megaport in Chancay, Peru, just north of Lima, is set to be inaugurated by Chinese President Xi Jinping later this year during the annual Asia-Pacific Economic Cooperation conference. One of the largest deep-water ports of its kind, Chancay represents one of China’s most ambitious projects in South America. Built by state-owned enterprise Cosco Shipping, Chancay is meant to catalyze the China’s food security and dominance over critical minerals, while cutting shipping times to Asia by around one week. However, according to Argentine media outlet Infobae, Peruvian officials have announced an “administrative error” permitting Cosco Shipping to both build and operate the port exclusively.[i] According to the article, Peruvian regulators have rejected Cosco’s exclusivity, declaring it incompatible with having built the port under domestic law.[ii] As per the second excerpted article from Infobae, Cosco has said it will initiate legal action against Peruvian regulators, insisting on its economic model of exclusivity. The fallout from the Port of Chancay legal wrangling is notable, and likely to have a lasting impact. China sees the moment as precedent-setting for other countries with Chinese state-owned enterprises controlling key infrastructure projects, while Peru finds itself in a major bind after years of burgeoning Chinese influence over strategic sectors in the country. If Cosco manages to win exclusive control of Chancay, China will further solidify its control over strategic infrastructure in the Western Hemisphere; if Peru manages to safeguard its autonomy, it may furnish a blueprint for other regional powers willing to test the limits of China’s infrastructure ownership models.

Sources:

Source: “El ‘error administrativo’ que pone en jaque al Perú: dio el control total a China del Megapuerto de Chancay (The ‘administrative error’ that puts Peru in check: it gave China full control of the Chancay Megaport),” Infobae (an Argentine outlet with excellent regional coverage), 14 May 2024. https://www.infobae.com/peru/2024/05/14/el-error-administrativo-que-pone-en-jaque-al-peru-dio-el-control-total-a-china-del-megapuerto-de-chancay/  

With a projected investment of more than three billion, China is now bringing out its true intentions and at the same time taking advantage of an ‘administrative error’ on the part of Peruvian officials by granting operational exclusivity to Cosco, which has put the project in check…a situation that the National Port Authority of Peru is currently trying to solve…The Peruvian government assumed that the Chinese shipping giant would simply use the port of which it will be the majority owner and would not have exclusive rights over it. But during the negotiations, Cosco somehow obtained precisely these rights. Now the National Port Authority is trying to rescind the exclusivity, claiming it made a mistake…The Chinese company, however, remains firm and even hints that it could withdraw if it does not obtain exclusive access.

Source: “Megapuerto de Chancay: Cosco Shipping no da su brazo a torcer y anuncia sus acciones legales por conflicto con el Estado peruano (Chancay Megaport: Cosco Shipping does not give in and announces its legal actions due to conflict with the Peruvian State),” Infobae (an Argentine outlet with excellent regional coverage), 8 May 2024. https://www.infobae.com/peru/2024/05/07/megapuerto-de-chancay-consorcio-chino-no-dara-su-brazo-a-torcer-y-anuncia-sus-acciones-legales-por-conflicto-con-el-estado-peruano/  Through a statement, the Chinese consortium Cosco Shipping Ports Chancay Peru SA, in charge of the megaproject, recognized that the port infrastructure work in the country has been ‘seriously harmed’ by a change in the regulatory scheme…the company reported that they have found it necessary to initiate legal actions to defend its operating model and ensure its classification as private infrastructure, despite the public benefits it offers.

Notes:

[i] At an earlier period, U.S. officials warned Peru about China exerting control and exclusivity over Chancay. See: Michael Stott and Joe Daniels, “U.S. Raises Concern with Peru over Chinese Control of Infrastructure,” Financial Times, 3 October 2023. https://www.ft.com/content/2c77be69-60d7-4d5c-a0c6-c7978bde3888

[ii] According to noted analyst Elisabeth Braw, this situation is likely the result of Peru failing to read the fine print of the agreement. See: Elisabeth Braw, “Peru Learns to Read the Fine Print in China Deals,” Foreign Policy, 13 May 2024. https://foreignpolicy.com/2024/05/13/peru-learns-to-read-the-fine-print-in-china-deals/

Potential Flashpoint Stemming From Undersea Data Cable Network Access Restrictions

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Underwater fiber optic cable on the ocean floor

China has arisen as an economic superpower rivaling the U.S. and now consumes large amounts of data… [however] China’s presence in subsea cable networks is fading rapidly.”

The United States is working with global technology companies, and regional neighbors, to actively exclude China from future undersea cable networks that will connect the region to the rest of the world according to the excerpted article from Japan-based Nikkei news agency. Subsea cables form the backbone of the exchange of global information, carrying 99% of the world’s data traffic—including information considered important to national security. While the Nikkei article doesn’t delve into the geopolitical concerns between the United States and China, the move to restrict the flow of data available to China via these undersea cables, should be seen as a mechanism to isolate China. China, which was once expected to be the future hub for subsea networks that form vital arteries of international communication, is on schedule to receive only three cables laid after this year. All three to Hong Kong, which was relatively more independent when the contracts to lay those undersea cables were struck. By comparison, in the next few years an additional 11 cables are scheduled to be laid in the region: four cables to Japan and seven to Singapore. According to a researcher interviewed for the article, the moves to isolate China from the conduit that carries global information is manifestation of a “subsea cold war” going on between the United States and its partners and China.[i] The U.S. process to isolate China began in 2020 when the Trump administration, “adopted The Clean Network initiative[ii] to freeze Chinese businesses out of telecom infrastructure projects.” This initiative has continued under the Biden administration, citing the “need to ensure data security.”[iii] The article notes that with the decrease in this important data conduit, the share of data centers in China will stay stagnant or begin to recede as well, while increasing in other Asian countries such as Japan, Philippines, and Southeast Asia. This hi-tech form of economic blockade will be a risk to China as its technology prowess begins to lag behind its regional competitors. These second and third order of effects make the subsea cable issue another potential flashpoint between U.S. – China relations, which given the numerous flashpoints between the two super powers, could result in additional tension and possible military action.[iv]

Sources:

Kentaro Takeda, “More subsea cables bypass China as Sino-U.S. tensions grow,” Nikkei, 11 May 2024. https://asia.nikkei.com/Spotlight/Datawatch/More-subsea-cables-bypass-China-as-Sino-U.S.-tensions-grow?utm_campaign=IC_asia_daily_free&utm_medium=email&utm_source=NA_newsletter&utm_content=article_link&del_type=1&pub_date=20240513123000&seq_num=3&si=91811959-21c4-44f4-9028-13136a8d0104

Growing geopolitical tensions between the U.S. and China have begun to affect the flow of global data due to an expected sharp fall in new undersea cables linking China with the rest of the world…

China is expected to see only three cables laid after this year — fewer than half the number planned for Singapore. The lack of undersea projects is also expected to weigh on the construction of data centers in the country.

Subsea cables form the backbone of the internet, carrying 99% of the world’s data traffic. Roughly 140,000 kilometers of such cables will be completed this year, three times more than five years ago… The increase reflects growing demand for data traffic prompted by the spread of video streaming and cloud services.

On April 10, Google announced a $1 billion project to build two submarine cables to connect Japan, Guam and Hawaii…The leaders said in a joint statement that they welcomed the investment “to improve digital communications infrastructure between the United States, Japan and Pacific Island Nations.”

Behind this seemingly coordinated public-private initiative was “the subsea cold war” between the U.S. and China, said TeleGeography’s research director, Alan Mauldin.

China has arisen as an economic superpower rivaling the U.S. and now consumes large amounts of data. Fifteen 1,000-km-plus submarine cables, all put into use since 1994, link China and the rest of the world….

The tide began to change around 2020, when the U.S., led by then-President Donald Trump, adopted the Clean Network initiative to freeze Chinese businesses out of telecom infrastructure projects. The U.S. has since kept this tough stance against Beijing, citing the need to ensure data security…

China’s presence in subsea cable networks is fading rapidly. Three international cables to connect Hong Kong are due for completion in 2025, but no undersea projects are scheduled for the country thereafter. There are plans to lay four cables to Japan and seven to Singapore after 2024. In addition, nine cables will be laid to Guam, midway between the U.S. mainland and Southeast Asia.Subsea cables and call centers are two pillars of digital infrastructure that move large amounts of data. Their presence could determine the power and influence of host countries and the businesses operating within them.

Notes:

[i] See: “US-China tech war’s new battleground: undersea internet cables,” South China Morning Post,” 14 December 2019. https://www.scmp.com/week-asia/politics/article/3042058/us-china-tech-wars-new-battleground-undersea-internet-cables

[ii] For more information on The Clean Network, see U.S. Department of State summary. https://2017-2021.state.gov/the-clean-network/

[iii] In 2021 Google and Facebook announced they had halted efforts to lay undersea cable connecting California and Hong Kong due to U.S.-China tension. See: “Google, Facebook unveil new Asia undersea data cable plan linking Singapore, Japan, others,” South China Morning Post, 16 August 2021. https://www.scmp.com/news/asia/southeast-asia/article/3145253/google-facebook-unveil-new-asia-undersea-data-cable-plan?campaign=3145253&module=perpetual_scroll_0&pgtype=article

[iv] The gradual restricting of subsea cables to China is occurring at the same time that the U.S. officials are warning that existing subsea cables could be sabotaged or tampered with by Chinese maintenance vessels contracted to maintain existing subsea cables. See: “U.S. Fears Undersea Cables Are Vulnerable to Espionage From Chinese Repair Ships,” The Wall Street Journal, 19 May 2024. https://www.wsj.com/politics/national-security/china-internet-cables-repair-ships-93fd6320

Image Information:
Image: Underwater fiber optic cable on the ocean floor
Source: https://www.openaccessgovernment.org/article/protecting-submarine-cables-enhanced-connectivity-subsea/155612/
Attribution: CC by 4.0

China Introduces People’s Liberation Army-Information Support Force

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“The Information Support Force is a newly created strategic force and a key support for coordinating the construction and application of network information systems. It plays an important role and has a major responsibility in promoting the high-quality development of the army and winning modern wars.”

On 19 April, the Chinese Communist Party joined the Central Military Commission to unveil the new People’s Liberation Army-Information Support Force (PLA-ISF), a strategic arm of the PLA responsible for overseeing the development and application of the network information system. The PLA-ISF appears to have replaced the PLA Strategic Support Force, which was responsible for strategic missions including space-based intelligence, reconnaissance, electronic countermeasures, signals intelligence, information warfare, and communications.[i] The role and responsibilities of the PLA-ISF are expected to be much broader and will integrate artificial intelligence into military operations.

While there are still few specifics available about the PLA-ISF, the first article, published in one of Asia’s largest English-language pan-Asia digital news platforms, Asia Times, opines that the aim of the PLA-ISF is to “better integrate emerging AI, Quantum, and other technologies into multi-domain operational concept against the United States and its allies.” The author argues that this new development underscores the importance to the PLA of shifting its warfare strategy from informationized to intelligentized.  The establishment of the PLA-ISF is being hailed as a significant move. According to the second excerpted article from the PLA’s official newspaper PLA Daily, the PLA-ISF is the key support for coordinating the construction and application of network information systems.  It will improve the army’s joint combat capability and multi-domain combat capability by having a network information system at its core. Finally, it will help to achieve China’s goal of becoming a world-class force by  the 100th anniversary of the founding the PLA in 2027. This sentiment is echoed in the third excerpted article published on the website of the Chinese Ministry of National Defense. In it, Senior Colonel Wu Qian, Director of the Information Bureau of the Ministry of National Defense, gave a press conference in which he explained that establishing the PLA-ISF will accelerate the pace of China’s national defense and military modernization and give the country “the ability to fight and win in modern warfare.”

Sources:

Gabriel Honrada, “New PLA Unit Underscores Intelligentized Warfare Shift,” Asia Times, (one of the region’s largest English-language pan-Asia digital news platforms.), 22 April 2024. https://asiatimes.com/2024/04/new-pla-unit-underscores-intelligentized-warfare-shift/

PLA-ISF aims to better integrate emerging AI, quantum and other technologies into multi-domain operational concept against the US and its allies.

China has just unveiled its People’s Liberation Army-Information Support Force (PLA-ISF), a rebranding of its previous PLA-Strategic Support Force (PLA-SSF) to reflect new responsibilities and capabilities and guide the military’s technology-driven integrated combat concept, Chinese state media reports said.

In contrast to traditional PLA services such as the Ground Force, Navy, Air Force, and Rocket Force, the PLA’s strategic arms, such as the Aerospace Force, Cyberspace Force and Joint Logistics Support, focus on more specialized areas critical to modern warfare.

Source:  “解放军报评论员：努力建设一支强大的现代化信息支援部队 (PLA Daily Commentator: Strive to Build a Strong Modern Information Support Force),” Chinese Ministry of National Defense, reposted from PLA Daily (Official newspaper of the PLA), 20 April 2024. http://www.mod.gov.cn/gfbw/jmsd/16302172.html

… As a newly created strategic branch of the military, the information support force is the key support for the coordinated construction and application of network information systems, and plays an important role in promoting the high-quality development of our army and winning the battle against the enemy. The information support force plays an important role and has great responsibilities in modern warfare. Reform will be successful and a strong army can be expected. The establishment of the information support force will definitely help improve our army’s joint combat capability and all-domain combat capability based on the network information system, and will definitely help achieve the goal of the 100th anniversary of the founding of the army as scheduled and accelerate the construction of the people’s army into a world-class army.

The reform and strengthening of the army is in full swing, and the clarion call is sounded to open a new chapter. At present, the entire army is going all out to fight a tough battle to achieve the goal of the 100th anniversary of the founding of the army. The responsibility is heavy and the mission is urgent.

Source: “信息支援部队是全新打造的战略性兵种 (The Information Support Force is a New Strategic Branch of the Military),” Chinese Ministry of National Defense website, 19 April 2024. http://www.mod.gov.cn/gfbw/qwfb/16302053.html

Question: The conference inaugurates the Information Support Force. What kind of force is it?Wu Qian: The adjustment and establishment of information support forces is a major decision made by the CPC Central Committee and the Central Military Commission from the overall perspective of strengthening the military. It is a strategic move to build a new type of military structure and layout and improve the modern military force system with Chinese characteristics. It has great and far-reaching significance for accelerating the modernization of national defense and the military and effectively fulfilling the mission and tasks of the people’s army in the new era…

Notes:

[i] China’s Strategic Support Force was responsible for strategic missions including space-based intelligence, reconnaissance, electronic countermeasures, signals intelligence, information warfare, and communications. See Kevin McCauley, “People’s Liberation Army Changing Mission Of Civilian Personnel,” OE Watch, 06-2023. https://fmso.tradoc.army.mil/2023/peoples-liberation-army-changing-mission-of-civilian-personnel/; and Tim Thomas, “China’s New ‘4+2’ Service Branch Structure,” OE Watch, Volume 06, Issue 10, p27. https://community.apan.org/wg/tradoc-g2/fmso/m/oe-watch-past-issues/195241

China Unveils Its Most Advanced Aircraft Carrier

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China’s third aircraft carrier, Fujian, docks at the Jiangnan Shipyard in Shanghai.

“The construction of the People’s Navy aircraft carriers has achieved a remarkable transformation from nothing to something.”

On 1 May 2024, China’s third aircraft carrier, Fujian, began its maiden sea trial[i] marking a pivotal stride in Chinese power projection. The Fujianis the largest and most advanced carrier in China’s fleet and will significantly enhance Beijing’s capacity to project power over greater distances and expand its ‘blue water’ capabilities.

According to the first excerpted article published by one of China’s largest internet companies NetEase, Fujian is China’s first domestically designed and built aircraft carrier featuring an electromagnetic catapult system. This key capability allows Fujian to launch heavier and larger aircraft than its predecessors, the Liaoning [RG1]  and the Shandong [RG2]. With increased payload capacity and extended range, Fujian enhances the People’s Liberation Army Navy’s (PLAN)  ‘blue-water’ capabilities.[ii] Notably, Fujian surpasses its predecessors in tonnage and technological capabilities. Its construction also underscores China’s growing expertise in domestic carrier construction and development, marking a departure from reliance on Soviet designs. After completing sea trials and officially entering service, Fujian will significantly advance the PLAN capabilities, marking the beginning of the “three carrier era,” wherein one carrier can undergo maintenance, another can maintain training readiness, and the third can undertake carrier presence operations in strategically important maritime areas.

The second excerpt, published by the Chinese Communist Party newspaper China Daily, states that the sea trials of Fujian may be considerably longer than its two predecessors. This is due to Fujian’s technology upgrades, particularly the electromagnetic catapult, the evolution from a Soviet foundation, and its ability to accommodate additional equipment and aircraft. Further, an expert cited in the article details that Fujian’s sea trials will be divided into two primary components: equipment and personnel.[iii] He states that sea trials related to equipment are based on six characteristics, reliability, maintainability, testability, supportability, environmental adaptability, and safety. The sea trials related to personnel include habitability and people’s experience of the work environment. While the recent launch of Fujian marks significant progress for China, the United States still maintains a considerable lead in aircraft carrier application, experience, and technology.[iv] The US Navy’s operational experience with carriers, dating back to World War II, provides a depth of knowledge that China cannot match. Through decades of maritime experience, the US Navy has developed a mature and highly effective doctrine for carrier combat operations, integrating them into broader joint and combined arms strategies. In contrast, the PLAN lacks this historical, practical, and combat experience.[v] Despite this, through rigorous sea trials, Fujian will not only enhance China’s technological prowess but also gain invaluable operational experience, positioning itself for greater maritime prominence in the future.

Sources:

Fu Qianshao, “超燃！我国将进入“三航母时代”！(Super Hot! My Country Enters the “3 Aircraft Carrier Era), Netease (one of China’s largest internet companies, subject to regulatory oversight and censorship by China’s Cyberspace Administration), 02 May 2024. https://m.163.com/dy/article/J16ADKLT0514R9KQ.html

On June 17, 2022, China marked the launch and naming of its third aircraft carrier, christened ‘Fujian Ship of the People’s Liberation Army Navy.’ On May 1, 2024, the carrier embarked on its inaugural sea trial. With the addition of Fujian, China now boasts three aircraft carriers, each with unique performance and combat capabilities, joining the Liaoning and Shandong in its naval fleet.

The Liaoning, originally a Soviet carrier commissioned in 1985, serves as China’s inaugural aircraft carrier, boasting a 60,000-ton displacement. Despite its origins, extensive upgrades have rendered it a crucial asset for China’s maritime and aerial operations expansion. In contrast, the Shandong represents China’s first indigenous medium-sized aircraft carrier, featuring a design, development, and construction entirely undertaken within the country. Slightly larger than the Liaoning, the Shandong features an expanded flight deck and significant advancements in internal systems, elevators, and shipboard weaponry. The latest addition, Fujian, marks a significant technological leap for China’s naval capabilities. As the country’s first carrier equipped with an electromagnetic catapult system, Fujian boasts a load displacement exceeding 80,000 tons, surpassing its predecessors in both size and technological sophistication.

As with new surface vessels across naval fleets worldwide, Fujian will undergo rigorous sea trials before entering active service. These trials encompass two primary aspects: equipment and personnel evaluation. Equipment trials scrutinize the ship’s reliability, maintainability, testability, supportability, environmental resilience, and safety standards. Meanwhile, personnel trials assess aspects such as habitability and operational effectiveness.

With the successful completion of sea trials and Fujian’s official commissioning, it is poised to significantly advance the capabilities of the PLAN. This heralds the commencement of the ‘three carrier era,’ wherein one aircraft carrier can undergo maintenance, another can maintain training readiness, and the third can undertake crucial carrier presence operations in strategically important maritime areas.

With its adoption of cutting-edge electromagnetic catapult technology, Fujian will have a higher dispatch rate for carrier-based aircraft compared to its predecessors. Furthermore, its integration of domestically developed technologies underscores China’s commitment to indigenous innovation and self-reliance. Through rigorous sea trials, the PLAN will not only enhance its technological prowess but also gain invaluable operational experience, positioning itself for greater maritime prominence in the future.

Source: Gao Linlin, “你好，18舰！欢迎，福建舰！(Hello, Ship 18! Welcome, Fujian Ship!),” China Daily (a daily newspaper owned by the Publicity Department of the Chinese Communist Party), 02 May 2024. https://cn.chinadaily.com.cn/a/202405/02/WS6633074fa3109f7860ddc054.html

On 01 May 2024, China’s third aircraft carrier, Fujian, unmoored and set sail from the docks of Jiangnan Shipyard to conduct its inaugural sea trials. These sea trials aim to access the reliability and stability of Fujian’s power, electricity, and other essential systems. Fujian stands as a significant emblem of the navy’s evolution and the emergence of high-quality combat forces. The rapid expansion of China’s aircraft carrier force underscores a deliberate effort to enhance combat capabilities. Progressing from a single carrier to three, China has charted a distinct trajectory in the construction of its aircraft carrier force, reflecting a transformation tailored with Chinese characteristics.

Before new ships are commissioned, navies worldwide conduct sea trials to assess their performance across various metrics through actual navigation at sea. The sea trials of Fujian are divided into two primary components: equipment and personnel evaluation. Equipment trials scrutinize reliability, maintainability, testability, supportability, environmental adaptability, and safety. Concurrently, personnel trials focus on factors such as habitability and operational experience within the work environment.

Fujian marks a significant leap forward in technology and tonnage compared to its predecessors, garnering attention as the first Chinese aircraft carrier not based on a Soviet template. With its considerably larger tonnage, Fujian has increased capacity to accommodate additional equipment and aircraft. Furthermore, the incorporation of new technologies such as the electromagnetic catapult underscores its cutting-edge capabilities. Given these substantial upgrades and the absence of a Soviet foundation, the sea trials for Fujian may be longer compared to those of the two previous carriers.With the official commissioning of Fujian, the navy will transition into a ‘three carrier era,’ facilitating a rotation system where one carrier can undergo repairs, another can maintain training readiness, and the third can engage in combat training. This strategic deployment enables the PLAN to always ensure the presence of an aircraft carrier in strategically important sea areas. Furthermore, equipped with an electromagnetic catapult, Fujian is poised to play a pivotal role in executing key tasks within critical maritime domains.

Notes:

[i] To watch the full CCTV-7 video report of Fujian’s unmooring, see CCTV’s video post, CCTV, 02 May 2024.

https://tv.cctv.com/2024/05/02/VIDEtGTVEkVgMH4Cp34Hli4M240502.shtml?spm=C53074552346.P4BWJvVoMUky.S51904.6

[ii] Brandon Lendon, “China’s newest aircraft carrier heads to sea for first time,” CNN, 01 May 2024. https://www.cnn.com/2024/05/01/china/china-navy-newest-aircraft-carrier-fujian-sea-trial-intl-hnk-ml/index.html

[iii] CCTV-13 features a special military commentator, a former PLAN officer commissioned from Dalian Academy, to provide insights into Fujian’s sea trials, CCTV-13 News Channel, 09 May 2204. https://tv.cctv.com/2024/05/09/VIDEYJxMXBbSzJFnn5zSoBNr240509.shtml

[iv] Greg Torode, Eduardo Baptista, Tim Kelly, “China’s aircraft carriers play ‘theatrical’ role but pose little threat yet” Reuters. 05 May 2023. https://www.reuters.com/world/chinas-aircraft-carriers-play-theatrical-role-pose-little-threat-yet-2023-05-05/

 [v] Benjamin Brimelow, “US vs. Chinese aircraft carriers: How the world’s top flattops stack up,” Business Insider,01 June 2024. https://www.businessinsider.com/us-vs-chinese-navy-aircraft-carriers-2024-5

Image Information:

Image: China’s third aircraft carrier, Fujian, docks at the Jiangnan Shipyard in Shanghai.  
Source: https://english.news.cn/20240501/72b54c6bb8f34058a011c44971de3c0e/c.html
Attribution: CCA-SA 4.0 Intl.