March 29, 2022

American arrogance amid Ukraine crisis

By: Azhar Azam

After the fall of the Soviet Union, the United States in the 1990s reconsolidated strength and expanded hegemony across the world. Since then, America has been manipulating its economic and military prowess to assert influence and monopolize the planet earth through the so-called “new world order.”

The US hoped the doctrine would allow the country to sustain world dominance; not realizing strategy could mask a decline too. Same was true when Washington between 1997 and 2009 enrolled more than a dozen countries into its orbit under the NATO banner. But the Treaty’s open-door policy lost appeal as just Montenegro and North Macedonia joined the military alliance through the next decade.

Before the first Gulf war, Washington assured Baghdad had no interest in Arab-Arab conflicts including Iraq’s border dispute with Kuwait, emboldening Iraqi President Saddam Hussein to invade the neighboring emirate. To make NATO relevant internationally, the elder Bush administration backtracked once Iraq seized Kuwait and distorted facts to justify NATO's military campaign.

It leaked reports about Iraqi military buildup on the borders of Saudi Arabia and drew analogy of Hussein’s invasion of Kuwait to Nazi Germany’s occupation of the Rhineland. Throughout the war, President George H.W. Bush rebranded him as “Hitler revisited” and used phrases such as “blitzkrieg fashion” and “Death’s Head regiments” for the Iraqi forces. The Pentagon scrutinized media reports under the aegis of national security before release.

A couple of Soviet satellite images subsequently exposed the “pretty serious fib” that Iraqi troops were amassing near the Saudi borders to attack on world’s major oil fields and make global industrial economies hostage. The Middle East watchers largely agreed Hussein’s invasion had roots in historical grievances and urged the Iraqi president to refuse accepting the British-drawn lines after World War I to virtually cut Iraq off from the Gulf.

In the second Gulf war, the US “murdered” the truth again, claiming Hussein was developing weapons of mass destruction. Before and after incursion in Iraq, nothing was found either in more than 70 UN inspections or US military searches. Certainly, the US and NATO had the choice to avoid a war; they decided to launch a military offensive on Baghdad in violation of the UN Charter and international law.

The approach “changed Russia.” In 1993, the Kremlin said NATO’s eastward expansion breached the spirit of the 1990 treaty and labeled it a “betrayal.” A vast majority of the Russians, both times when NATO bombarded Moscow’s ally Yugoslavia in 1999 and the Kremlin deployed troops to Crimea in 2014, backed their governments’ claims that America was sparking the conflicts through behind-the-scenes meddling.

Six years onward, Moscow in 1997 questioned Washington’s “double dealing” and initiated a bare-knuckle diplomatic battle with its cold war rival a decade later. At the 2007 Munich Security Conference, Russian President Vladimir Putin strongly derided the US for fanning conflicts the world over and threatening his country through new missile shield programs in Poland and the Czech Republic. “One state, the United States, has overstepped its national borders in every way.”

Russian media isn’t the odd one out that blames the US for prying Ukrainians to deflect attention from intensifying internal issues including skyrocketing inflation, shrill racism, soaring crime rates, organized shoplifting sprees, vaccine protests, cultural battles on transgender rights, political intolerance, broken family system, increasing suicides, drug dependency and presidential sarcasm.

Western observers too consider the US and NATO arrogant expansionist policy and interference in Ukrainian domestic politics during 2013 and 2014 is behind Moscow’s invasion of Kyiv. The belief – American great empire has waned due to political turbulence at home, entered a period of decline and faces existential challenge in East Asia – is gaining traction in the West. Americans after the Capitol riots fret their country is “falling apart.”

America’s global hegemony or liberal international order – resting on three pillars: economic strength, military might and the soft power of cultural dominance – appears to be shaking over the administrations’ myopic foreign policy to spike tensions in other parts of the world. The flippant approach has contracted America’s share of global income with China making a “world-altering shift,” sharply reduced ability to deter or defeat opponents and decayed culture. McKinney & Company’s analysis, noting Beijing accounted for 50% of the growth in net worth or wealth between 2000 and 2020, describes the US is losing ground globally.

From leading to opposing aggression, US history is marked by double standards. As the White House has sought global nations to row behind Washington over nebulous security threats, it lacks the moral ethos to call out Russia’s military action in Ukraine and champion peace. Before the invasion, House Speaker Nancy Pelosi likened Putin with Hitler; many countries don’t agree as they watch to protect their interests with one of the biggest arms and energy suppliers.

Over the years, the US has been using sanctions as a leverage to round up Russian and other world economies. Washington still believes these economic tactics can force Moscow to retreat from Kyiv. This may not since Russia has successfully reordered its economy to cope with the restrictions swiped in the aftermath of Crimea annexation. On the other hand America’s response against the Kremlin has already reached the maximum so the only edge is wearing thin too.

Although the second round of talks between Kyiv and Moscow didn’t bring any major breakthrough, it wasn’t expected to. Still negotiations – as both sides reached a consensus to establish humanitarian corridors, "possible temporary ceasefire during evacuations," and agreed to meet again – should help to chop the boiling temperature and usher the way for peace and stability.

The White House is watching the proceedings in Ukraine from the sidelines because of a messy US past that has been fraught with uninterrupted invasions, seriously limiting the superpower’s capability to intervene in a global peace crisis. Under accelerating trend of the American decline, arrogance seems to be the Hobson’s Choice for Biden to keep “(once) the headquarters of the world” relevant on a standoff, which really matters for the only living planet in the universe over threats of World War III.

*This is one of my opinion pieces (unedited) that first appeared in "The Express Tribune":

China can play important role in Saudi Arabia's economic diversification

By: Azhar Azam

The relationship between China and Arab states dates back to antiquity. More than two thousand years ago, land and maritime Silk Roads connected the two ancient civilizations and fastened them in affinity. The discovery of the primitive port of Jeddah in 2018 during a 20-day Chinese-Saudi joint excavating mission of the ruins of al-Serrian established these historical interactions.

Since the unveiling of Saudi Vision 2030, Beijing has expressed a willingness to help Riyadh chart a new path of economic diversification and synergize the Belt and Road Initiative (BRI), which the Kingdom has already signed up for. The Saudis' strategic framework aims to reduce dependence on oil and transform the Kingdom into a leading industrial powerhouse and global trading and logistics hub.

Mutual interests, the complementary nature of these initiatives and mercurial regional strategic landscape over the last few years have led to expansion in the Saudi-China relationship. The internally conflicted US policy, to limit American engagement in the Middle East and bully the regional allies to choose between Beijing and Washington, has dismayed Saudi Arabia, urging it to benefit from China's growth, enormous market and investment capability.

Riyadh is positioned at the nexus of the East and West, raising the profile to become an epicenter of international trade. This ambitious goal, given building a regionally competitive and sustainable maritime industry is one of the key Saudi objectives, comfortably meshes with China's ocean-going 21st Century Maritime Silk Road and seeks broad-based cooperation with the world's second-largest economy.

In December, King Abdulaziz Port in Dammam was included in the newly launched China Service to ensure direct and efficient connectivity for importers and exporters in the country and region with China. The initiative, aimed at enhancing competitiveness of the port and increasing trade between the two countries, will inevitably shore up maritime links and further build nation-to-nation relations.

Chinese and Saudi firms recently signed a memorandum of understanding (MOU) in innovative space technologies, satellites, artificial intelligence (AI) and geospatial products that would support Saudi strategic space and geospatial industry, and marks a major step forward to realize the country's futuristic ambitions.

Cooperation between China and Saudi Arabia continues to strengthen as Saudi state-owned oil company, Aramco, took the "final investment decision" to develop a refinery and petrochemical complex in Northeast China. The vision to create a modern economy and shared challenge of energy security made Beijing the bedrock of the oil conglomerate's downstream expansion strategy in Asia and turn it into a leader in the global liquid-to-chemical industry.

The deal – which is subject to regulatory approvals and will combine 300,000 barrels per day refinery capacity and ethylene-based steam cracker, a building block petrochemical used to manufacture thousands of everyday products – is the latest example of China-Saudi strategic cooperation. The negotiations, reportedly resumed in February, underscored the Kingdom's "extremely significant shift" from the US to China and described Riyadh's proclivity to better align itself in a fast-changing geopolitical reconfiguration.

In yet another sign of broadening strategic relations, the Saudi Digital Academy last month signed an MOU with Huawei. The consent is intended to sponsor and develop 8,000 local technology talents and will contribute to Riyadh's digital transformation under the Vision. The Chinese tech giant would also coach 100 Saudi trainers on crucial technologies including AI, cloud computing, cybersecurity and 5G uses to provide the Kingdom with future tech leaders.

Riyadh was Beijing's top crude oil supplier in 2021. After replacing the European Union as the largest trading partner of the Gulf Cooperation Council in 2020, China is playing an important role in the development of Saudi and the region's non-oil sector too, such as tourism, telecommunications, smart cities and renewables, among other technology-driven industries. The burgeoning trade as well as a strong compatibility in other sectors has augmented the bloc's general perception about Beijing and eminence as a top strategic ally, paving the way for enhanced engagement.

Over the years, China and Saudi Arabia have steadily matured their trade relationship into intimate friendly collaboration and comprehensive strategic partnership. It is, however, critical not to pair the evolution of bilateral cooperation, based on reciprocity and mutual understanding, with either country's dealings with the US and other states. Such a balanced and pragmatic approach would accelerate each other's growth ambitions and open up new vistas for economic diversification.

*This is my opinion piece that originally appeared in "China Daily":

March 28, 2022

China-Argentina cooperation set to grow and prosper

By: Azhar Azam

China's emergence as a world leader in solar, wind, hydroelectric and geothermal power generation makes it a natural Argentina ally. Over the years, the country's government and corporations have attracted Chinese investment and finance into renewable and other types of energy sectors to accelerate Buenos Aires' sustainable economic development and hybrid pathway.

With Chinese investments and technological assistance, Argentina had built one of Latin America's largest solar energy plants, Cauchari Solar Park, in Jujuy. The world's highest altitude facility provided power to 160,000 families and turned into a poverty alleviation and social welfare effort when it hired local residents after providing technical training, and was projected to generate $400 million in net profits for the province, widening fiscal space for establishing new schools.

Beijing's comprehensive strategic partnerships with Argentina and other regional states, mostly in the energy sector and infrastructure development, as well as the induction of 21 Latin American countries into BRI, however, are unsettling lawmakers in Washington. Skepticism about China's growing economic relationship with the region has been aggravated by Donald Trump's antipathy toward China's economic and technological rise and is being continued by US President Joe Biden's spendthrift policy.

In December, US Congress completed action on the National Defense Authorization Act, creating a provision for a report by June 30 on Chinese efforts to expand "presence and influence" in LAC. Wary of Chinese infrastructure investments in the region, the US House and Senate in June 2021 and February 2022 approved broad bills to compete with China worldwide and bolster America's economic competitiveness to regain US dominance in LAC.

Citing so-called national security threats, US legislators even introduced a bipartisan bill, "Western Hemisphere Security Strategy Act of 2022," to undermine the China-LAC relationship. But concerns about alleged China's expanding security footprint in LAC are being snubbed by regional academics who dub the claim a "rich-world problem." What's more, the regional countries don't see Chinese investments in Argentina as a "zero-sum game".

Argentina itself has been keenly interested in expanding currency cooperation and becoming part of the BRI family. The "strategic decision" of joining the Chinese intercontinental project and extension of "monetary swap", an Argentinean official said, will guarantee finances or investments of more than $23.7 billion and bolster the dwindling forex reserves.

The bilateral consensuses reached between Chinese and Argentinean leadership at a Beijing summit, as the two countries celebrate the 50th anniversary of diplomatic ties this year, should set the stage for collaboration in trade, infrastructure, anti-pandemic cooperation, digital economy and green development as well as taking the diplomatic and political relationship to new heights.

President Alberto Fernandez's move will further help Argentina "diversify the range and possible destinations" of its exports to China and other BRI countries. After years of diplomatic neglect, the Biden administration last year mooted Build Back Better World in LAC. Yet Buenos Aires, holding the high diplomatic status of "strategic integral alliance" from Beijing, threw its weight behind BRI.

Argentina's affiliation with BRI would expand energy deals between the two countries, boosting the former's wind and solar sectors. It additionally offers an opportunity for the South American economy to make its pie bigger in China-Latin America trade, which has risen to $451 billion at a staggering increase of more than 40% in 2021.

Experts called for greater cooperation between China and Argentina on transmission infrastructure. While Beijing plans to modernize some of the country's outdated transmission infrastructure as Buenos Aires is in talks with Chinese firms, these investments and other infrastructure projects will likely increase under BRI to boost Argentina's socio-economic development.

Argentina's decision to accede to BRI is its legitimate and sovereign right and shouldn't be used as a tool for the US to undermine the cooperation. Integration of LAC's third-largest economy into the trillion-dollar roster doesn't challenge or pose a threat to any doctrine or American security. This bullying and assertiveness, to impede cooperation between two sides or impede growth of either of the two, cannot survive in a free and multilateral world and must be ceased.

*This is my opinion piece that originally appeared in "China Daily":

US should broaden the scope of LNG trade with China

By: Azhar Azam

Pandemic-driven lockdowns and travel restrictions in 2020 brought the world, including the American economy, to a standstill. Proved reserves of crude oil and natural gas in the U.S. dropped by 4 percent to 473.3 trillion cubic feet, according to the U.S. Energy Information Administration (EIA)'s year-end report released on January 13.


Liquid fuel production faced a critical shortage of available storage. Average annual price of liquefied natural gas (LNG) at Henry Hub, the natural gas pricing point traded on the New York Mercantile Exchange, also fell from $2.56 per million British thermal units (MMBtu) in 2019 to $2.03/MMBtu in 2020. Low gas prices forced many U.S. operators to cut their proved reserves estimates and phase down development plans for new wells.

Even before the COVID-19 entered our lexicon, demand for oil and gas was declining in part due to global economic slowdown over the China-U.S. trade war. The subsequent compelling circumstances in July 2020 progressively plunged the U.S. LNG exports to as low as 96,200 million cubic feet (mcf). Nevertheless, the country's exports bounced back in the last quarter of the year, setting new records in November and December with exports of 280,682 mcf and 304,263 mcf, respectively.

Other factors such as colder-than-normal winter temperatures in key Asian markets contributed to higher levels of exports. Yet deliveries of 125,723 mcf to Beijing, EIA data showed, in Q4 2020 too played an important role in reinstating Washington's LNG exports. China had burst into view with a flurry of purchases to evolve into the third-largest buyer of U.S. LNG by vessel behind South Korea and Japan.

Not only did the annual U.S. LNG export volume to China soared more than 31 times, annual increase in exports to Beijing accounted for over 36 percent of the total yearly surge. The trend continued and the U.S. LNG exports grew by 42 percent, or 2.8 billion cubic feet per day (bcf/d), to a median value of 9.6 bcf/d in the first six months of 2021 in the wake of greater global demand and rising LNG spot prices in Asia and Europe as well as about 200 bcf exports to China during the same period.

The U.S. LNG export capacity has widened substantially since February 2016, making the country third-largest LNG exporter in 2019 behind Australia and Qatar. It will be the world's largest once new LNG liquefaction units, called trains, at Sabine Pass and Calcasieu Pass in Louisiana are put in service by the end of 2022. At the close of this year, Washington's nominal and peak LNG production capacity would likely beat Canberra and Doha.

But to reach and maintain the milestone and capitalize on the full potential of its LNG sector, the U.S. still needs China, which dethroned Japan from decades-old title to become the world's biggest buyer of super-chilled fuel. Experts were prognosticating this to happen as Beijing blazed a trail by adopting and promoting several EIP (eco-industrial parks) standards and counted on a strong economic rebound to turn the tide on pollution and CO2 emissions. The EIA acknowledged Beijing's import and production growth was driven by government policies to switch from coal to natural gas in a bid to reduce air contamination and meet emission targets.

China had already surpassed Japan to emerge as world's largest natural gas importer in 2018 with combined imports by pipeline and LNG averaging 11.9 bcf/d compared with Tokyo's 10.9 bcf/d imports. Citing data from the International Group of Liquefied Natural Gas Importers, EIA said China LNG import capacity more than doubled from 5.8 bcf/d to 11.7 bcf/d between 2013 and 2020. By 2024, Beijing's LNG import capacity is estimated to expand by 4 bcf/d.

While the U.S. may not retain the crown of LNG export by capacity after 2025 when Qatar's North Field expansion would unseat it to regain the lead, American operators should develop new LNG plants to reinforce their leadership and take advantage from surging Chinese LNG demands. It is vitally important given China was the largest buyer of the U.S. LNG in the first 11 months of 2021, per EIA export statistics.

Last year, Chinese firms reportedly signed up contracts of more than 10 million tonnes a year of LNG with the U.S. exporters Cheniere Energy and Venture Global including two 20-year deals for an aggregate 4 million tonnes of LNG per year. They, Reuters said, will also double the volume of Chinese imports from the United States. As analysts forecast spot trade in LNG is set to witness over twofold increase of 2020 value to $20 billion by 2027, Beijing's trade liberalization offers an opportunity for Washington to deepen energy cooperation and expand its share in the world's biggest LNG market.

China and the U.S. are the world's largest energy consumers and producers. The disputes and disagreements between the two major global powers should be handled diplomatically, preventing them from upending the crucial trade and economic relationship. It isn't in the interest of Americans to keep tariffs on or ban Chinese products such as solar panels. The White House needs to realize the importance of bilateral trade and ought to broaden the scope of LNG trade into other areas that will bring even more strategic benefits to the United States.

*This is my opinion piece that originally appeared at "China Global Television Network (CGTN)":