Despite "new type great power relationship", China's Strategic Vision for Asia Clashes With US' View & Role

While the back and forth between the Chinese and U.S. and Japanese speakers at the Shangri-La Dialogue has gained considerable attention, less scrutiny has been paid to the comments by General Wang Guanzhong advocating a “new Asian security concept.” His comments echoed those of Xi Jinping, who outlined a vision of an Asian security order managed by Asian countries at the Conference on Interaction and Confidence Building Measures (CICA) held on 20-21 May in Shanghai.

In many ways, advocacy of a revised security order to better accord with Chinese preferences is not new. PRC officials first introduced the principles of the new security concept in 1997. Around 2005, Chinese leaders introduced a series of major concepts, including “Harmonious World,” and its derivative, “Harmonious Asia,” to provide a clearer vision of how China hoped to shape the global and regional order to accommodate the country’s rise. The Asian new security concept introduced by Xi at the CICA summit, like the ideas promoted by preceding leaders, proposes the development of political and security relationships, institutions and structures to complement China’s growing economic clout and to replace the U.S.-led system of alliances as the basis of the region’s security architecture.

The sources of China’s growing dissatisfaction with the U.S. alliance system are deep and structural. They have little to do with the personal preferences of PRC leaders. Nor do they stem from reactions to statements by individual leaders or U.S. policies, such as the Rebalance, although these may aggravate Chinese frustrations. Criticism of U.S. “hegemonism” and “Cold War mentality” has a long history, but for years these have been aimed at specific policies, such as arms sales to Taiwan. The latest round of criticism, by contrast, is more generally aimed at structural obstacles to China’s pursuit of economic growth and security. In the eyes of PRC leaders, the U.S.-led system of security alliances and partnerships in Asia is one of the most important of these obstacles.

To be clear, Chinese leaders have not designated the United States an enemy. On the contrary, the urgency behind China’s advocacy of the “new type great power relationship”—a policy ideal of close cooperation between relative peer powers to co-manage contentious issues—demonstrates the extent to which China, as a rising power, has hoped to avoid the onset of a classic security dilemma with United States, the status quo power. China continues to require regional stability to maintain its focus on national development. However, a powerful and regionally integrated China is increasingly finding its security and development needs at odds with the current security order.

link.

The Financial Crisis Cemented the Dollar's Reserve Currency Role

“LUMPY, unpredictable, potentially large”: that was how Tim Geithner, then head of the New York Federal Reserve, described the need for dollars in emerging economies in the dark days of October 2008, according to transcripts of a Fed meeting released last month. To help smooth out those lumps, the Fed offered to “swap” currencies with four favoured central banks, as far off as South Korea and Singapore. They could exchange their own money for dollars at the prevailing exchange rate (on condition that they later swap them back again at the same rate). Why did the Fed decide to reach so far beyond its shores? It worried that stress in a financially connected emerging economy could eventually hurt America. But Mr Geithner also hinted at another motive. “The privilege of being the reserve currency of the world comes with some burdens,” he said.

That privilege is the subject of a new book, “The Dollar Trap”, by Eswar Prasad of Cornell University, who shares the world’s ambivalence towards the currency. The 2008 financial crisis might have been expected to erode the dollar’s global prominence. Instead, he argues, it cemented it. America’s fragility was, paradoxically, a source of strength for its currency.

link.

China Threatens US Military Superiority

China poses an increasing challenge to the US military's technological edge while budget pressures are hampering Washington's effort to stay ahead, a senior defense official warned on Tuesday.

Frank Kendall, the Pentagon's chief weapons buyer, told lawmakers that when it comes to "technological superiority, the Department of Defense is being challenged in ways that I have not seen for decades, particularly in the Asia-Pacific region."

Citing China's major investments in anti-ship missiles, stealth fighter jets, hypersonic vehicles and other hi-tech weaponry, Kendall said the United States could lose its dominant position if it failed to respond to the altered strategic landscape.

"Technological superiority is not assured and we cannot be complacent about our posture," he told the House Armed Services Committee.

link.

The biggest threat to American hegemony is America.  I do not the cutting of budgets by Congress.   I mean the absolutely disastrous procurements that the Pentagon has run.  Joint Strike Fighter?  Littoral Combat Ship?  Future Combat System?  etc. etc.  etc.

We are our own worst enemy.