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The tenth Shangri-La Dialogue

Author: Sheryn Lee, ANU On 4-5 June, Singapore was once again awash with security and defence buzz amid the 10 th annual International Institute of Strategic Studies’ Shangri-La Dialogue. While in previous years attention has centred on the keynote address of the US Secretary of Defence, this year’s event was dominated by a first time attendant: the Chinese Defence Minister, General Liang Guanglie. The Chinese General’s appearance heralded the strategic importance of the dialogue as a forum for the world’s leading nations. It also recognised the reality that discussions of regional defence issues and multilateral security initiatives necessitate Beijing’s participation. It seemed fitting that a dialogue that begun with the US Secretary of Defence Robert Gates’ rejection of the notion that the US is in relative decline should end with General Liang proselytising on why the region should be assured that China’s expanding military capabilities are benign. In spite of their almost boilerplate attempts to reassure, the sum effect of these statements was to throw into relief the blunt concerns of regional defence ministers regarding the negative tangent of security developments in maritime Asia. South Korean Defence Minister Kim Kwan Jin stated that Seoul would not continue to show restraint in the face of North Korean aggression, while Russian Defence Minister Sergei Ivanov claimed that the Kuril Islands were not a ‘territorial dispute’ with Japan. By turns, the Vietnamese Defence Minister confirmed the acquisition of six Kilo-class submarines, and the UK Defence Minister Liam Fox outlined ‘greater plans’ for the Five Power Defence Arrangements, with the UK and Australia to conclude a bilateral defence agreement by 2012. In contrast to China’s talk of a desire for a ‘peaceful external environment’ for its ‘peaceful development’, and the pressure it is receiving to become a ‘responsible stakeholder,’ it has done little to moderate its push for overt militarised influence. Its increased presence in the region is having a destabilising effect, not only in the case of the South China Sea, but also in regards to dealing with Pyongyang’s intransigence. Similarly, despite Secretary Gates’ rhetoric, American power in the region cannot keep up the same tempo over the long term. Fiscal constraints and continuing extra-regional demands, in particular in the Middle East, have already begun to take their toll on Washington’s military edge, as China’s modernisation of the PLA rapidly continues. These challenges are largely ignored in the official narratives from formalised settings such as the East Asia Summit (EAS), which have tended to emphasise the possibilities for cooperative responses to regional threats. Even at the Shangri-La Dialogue there was an overwhelming focus on humanitarian aid and disaster relief. There is no question that collaborative efforts in these areas are significant, but the very real elephant of traditional security challenges is being downplayed, even as it threatens to trample regional stability. The question that is seldom asked publicly is: how can the region deal with the shifting power dynamics? Many nations are taking the answer into their own hands by turning towards military modernisation programs of their own, not only to counter China’s efforts but also to prepare for a future in which Washington may not be able to play the role of ‘offshore balancer’. As such, one of the key points that arose at Shangri-La was the desire to build a security architecture robust enough to reduce the likelihood of miscalculation and misunderstanding, and deal with such challenges as negotiating multilateral binding limits on military modernisation, or committing parties to an ‘Incidents at Sea’ agreement. At this point in time, the region lacks the institutions necessary to make such actions credible. While establishing new mechanisms like the ASEAN Defence Ministers’ Meeting Plus (ADMM+) and expanding existing ones like the EAS could potentially lead to a security architecture that produces tangible results, neither approach has yet borne fruit with regards to core strategic challenges. The challenge for policymakers is to respond to this demand for an architecture commensurate with the problems of competition and robust enough to bring both the US and China together to deal honestly with their military competition while providing security for smaller regional states. Increasingly, the political and strategic barriers to this challenge appear insurmountable. The region is confronting a contradiction at the heart of multilateral discussion: while talk helps, it only does so if it is frank. Empty talk reflects insincerity, which actually exacerbates distrust amongst participants and accelerates competition. With the failure of security dialogue to achieve the level of trust required for collectiveaction, regional parties are encouraged to take a self-help approach to security by themselves or with traditional partners. As a consequence, there is a risk that the region will descend into bickering and confrontation between highly armed blocs. Rather than contributing to a balance of power, such a scenario raises the risk that certain major extra-regional players, such as the United States, may decide to cut their involvement suddenly in response to domestic and economic pressures. The potential for regional strategic instability would be significant, with conflict triggers abounding from the DMZ to the Paracel Islands. As the region faces the possibility of a conflict spiral exacerbated by distrust, the need to overcome reticence and speak bluntly about regional strategic and economic realities is paramount. Unfortunately, the opportunity for honesty passed Washington and Beijing by at Shangri-La. Sheryn Lee is a research assistant and Robert O’Neill Scholar at the Strategic & Defence Studies Centre, the Australian National University. Assessing the Trilateral Strategic Dialogue East Asia Forum dialogue ADMM+8: An acronym to watch

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Author: Sheryn Lee, ANU

On 4-5 June, Singapore was once again awash with security and defence buzz amid the 10th annual International Institute of Strategic Studies’ Shangri-La Dialogue.

While in previous years attention has centred on the keynote address of the US Secretary of Defence, this year’s event was dominated by a first time attendant: the Chinese Defence Minister, General Liang Guanglie. The Chinese General’s appearance heralded the strategic importance of the dialogue as a forum for the world’s leading nations. It also recognised the reality that discussions of regional defence issues and multilateral security initiatives necessitate Beijing’s participation.

It seemed fitting that a dialogue that begun with the US Secretary of Defence Robert Gates’ rejection of the notion that the US is in relative decline should end with General Liang proselytising on why the region should be assured that China’s expanding military capabilities are benign. In spite of their almost boilerplate attempts to reassure, the sum effect of these statements was to throw into relief the blunt concerns of regional defence ministers regarding the negative tangent of security developments in maritime Asia. South Korean Defence Minister Kim Kwan Jin stated that Seoul would not continue to show restraint in the face of North Korean aggression, while Russian Defence Minister Sergei Ivanov claimed that the Kuril Islands were not a ‘territorial dispute’ with Japan. By turns, the Vietnamese Defence Minister confirmed the acquisition of six Kilo-class submarines, and the UK Defence Minister Liam Fox outlined ‘greater plans’ for the Five Power Defence Arrangements, with the UK and Australia to conclude a bilateral defence agreement by 2012.

In contrast to China’s talk of a desire for a ‘peaceful external environment’ for its ‘peaceful development’, and the pressure it is receiving to become a ‘responsible stakeholder,’ it has done little to moderate its push for overt militarised influence. Its increased presence in the region is having a destabilising effect, not only in the case of the South China Sea, but also in regards to dealing with Pyongyang’s intransigence. Similarly, despite Secretary Gates’ rhetoric, American power in the region cannot keep up the same tempo over the long term. Fiscal constraints and continuing extra-regional demands, in particular in the Middle East, have already begun to take their toll on Washington’s military edge, as China’s modernisation of the PLA rapidly continues.

These challenges are largely ignored in the official narratives from formalised settings such as the East Asia Summit (EAS), which have tended to emphasise the possibilities for cooperative responses to regional threats. Even at the Shangri-La Dialogue there was an overwhelming focus on humanitarian aid and disaster relief. There is no question that collaborative efforts in these areas are significant, but the very real elephant of traditional security challenges is being downplayed, even as it threatens to trample regional stability. The question that is seldom asked publicly is: how can the region deal with the shifting power dynamics?

Many nations are taking the answer into their own hands by turning towards military modernisation programs of their own, not only to counter China’s efforts but also to prepare for a future in which Washington may not be able to play the role of ‘offshore balancer’. As such, one of the key points that arose at Shangri-La was the desire to build a security architecture robust enough to reduce the likelihood of miscalculation and misunderstanding, and deal with such challenges as negotiating multilateral binding limits on military modernisation, or committing parties to an ‘Incidents at Sea’ agreement.

At this point in time, the region lacks the institutions necessary to make such actions credible. While establishing new mechanisms like the ASEAN Defence Ministers’ Meeting Plus (ADMM+) and expanding existing ones like the EAS could potentially lead to a security architecture that produces tangible results, neither approach has yet borne fruit with regards to core strategic challenges. The challenge for policymakers is to respond to this demand for an architecture commensurate with the problems of competition and robust enough to bring both the US and China together to deal honestly with their military competition while providing security for smaller regional states.

Increasingly, the political and strategic barriers to this challenge appear insurmountable. The region is confronting a contradiction at the heart of multilateral discussion: while talk helps, it only does so if it is frank. Empty talk reflects insincerity, which actually exacerbates distrust amongst participants and accelerates competition. With the failure of security dialogue to achieve the level of trust required for collectiveaction, regional parties are encouraged to take a self-help approach to security by themselves or with traditional partners. As a consequence, there is a risk that the region will descend into bickering and confrontation between highly armed blocs. Rather than contributing to a balance of power, such a scenario raises the risk that certain major extra-regional players, such as the United States, may decide to cut their involvement suddenly in response to domestic and economic pressures. The potential for regional strategic instability would be significant, with conflict triggers abounding from the DMZ to the Paracel Islands.

As the region faces the possibility of a conflict spiral exacerbated by distrust, the need to overcome reticence and speak bluntly about regional strategic and economic realities is paramount. Unfortunately, the opportunity for honesty passed Washington and Beijing by at Shangri-La.

Sheryn Lee is a research assistant and Robert O’Neill Scholar at the Strategic & Defence Studies Centre, the Australian National University.

  1. Assessing the Trilateral Strategic Dialogue
  2. East Asia Forum dialogue
  3. ADMM+8: An acronym to watch

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The tenth Shangri-La Dialogue

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Business

Gordonstoun Severs Connections with Business Led by Individual Accused of Espionage for China

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Gordonstoun school severed ties with Hampton Group over espionage allegations against chairman Yang Tengbo. He denies involvement and claims to be a victim of political tensions between the UK and China.


Allegations Lead to School’s Decision

Gordonstoun School in Moray has cut ties with Hampton Group International after serious allegations surfaced regarding its chairman, Yang Tengbo, who is accused of being a spy for the Chinese government. Known by the alias "H6," Mr. Tengbo was involved in a deal that aimed to establish five new schools in China affiliated with Gordonstoun. However, the recent allegations compelled the school to terminate their agreement.

Public Denial and Legal Action

In response to the spying claims, Mr. Tengbo publicly revealed his identity, asserting that he has committed no wrongdoing. A close associate of Prince Andrew and a former Gordonstoun student himself, Mr. Tengbo has strenuously denied the accusations, stating that he is a target of the escalating tensions between the UK and China. He has claimed that his mistreatment is politically motivated.

Immigration Challenges and Legal Responses

Yang Tengbo, also known as Chris Yang, has faced additional challenges regarding his immigration status in the UK. After losing an appeal against a ban enacted last year, he reiterated his innocence, condemning media speculation while emphasizing his commitment to clear his name. Gordonstoun, on its part, stated its inability to divulge further details due to legal constraints.

Source : Gordonstoun cuts ties with business chaired by man accused of spying for China

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Business

China Dismantles Prominent Uyghur Business Landmark in Xinjiang – Shia Waves

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The Chinese government demolished the Rebiya Kadeer Trade Center in Xinjiang, affecting Uyghur culture and commerce, prompting criticism from activists amid concerns over cultural erasure and human rights violations.


Demolition of a Cultural Landmark

The Chinese government recently demolished the Rebiya Kadeer Trade Center in Urumqi, Xinjiang, a vital hub for Uyghur culture and commerce, as reported by VOA. This center, once inhabited by more than 800 predominantly Uyghur-owned businesses, has been deserted since 2009. Authorities forcibly ordered local business owners to vacate the premises before proceeding with the demolition, which took place without any public notice.

Condemnation from Activists

Uyghur rights activists have condemned this demolition, perceiving it as part of China’s broader strategy to undermine Uyghur identity and heritage. The event has sparked heightened international concern regarding China’s policies in Xinjiang, which have been characterized by allegations of mass detentions and cultural suppression, prompting claims of crimes against humanity.

Rebiya Kadeer’s Response

Rebiya Kadeer, the center’s namesake and a notable Uyghur rights advocate, criticized the demolition as a deliberate attempt to erase her legacy. Kadeer, who has been living in exile in the U.S. since her release from imprisonment in 2005, continues to advocate for Uyghur rights. She has expressed that her family members have suffered persecution due to her activism, while the Chinese government has yet to comment on the legal ramifications of the demolition.

Source : China Demolishes Uyghur Business Landmark in Xinjiang – Shia Waves

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China

China Expands Nationwide Private Pension Scheme After Two-Year Pilot Program

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China’s private pension scheme, previously piloted in 36 cities, will roll out nationwide on December 15, 2024, enabling workers to open tax-deferred accounts. The initiative aims to enhance retirement savings, address aging population challenges, and stimulate financial sector growth.


After a two-year pilot program, China has officially expanded its private pension scheme nationwide. Starting December 15, 2024, workers covered by urban employee basic pension insurance or urban-rural resident basic pension insurance across the country can participate in this supplementary pension scheme. This nationwide rollout represents a significant milestone in China’s efforts to build a comprehensive pension system, addressing the challenges of a rapidly aging population.

On December 12, 2024, the Ministry of Human Resources and Social Security, together with four other departments including the Ministry of Finance, the State Taxation Administration, the Financial Regulatory Administration, and the China Securities Regulatory Commission, announced the nationwide implementation of China’s private pension scheme effective December 15, 2024. The initiative extends eligibility to all workers enrolled in urban employee basic pension insurance or urban-rural resident basic pension insurance.

A notable development is the expansion of tax incentives for private pensions, previously limited to pilot cities, to a national scale. Participants can now enjoy these benefits across China, with government agencies collaborating to ensure seamless implementation and to encourage broad participation through these enhanced incentives.

China first introduced its private pension scheme in November 2022 as a pilot program covering 36 cities and regions, including major hubs like Beijing, Shanghai, Guangzhou, Xi’an, and Chengdu. Under the program, individuals were allowed to open tax-deferred private pension accounts, contributing up to RMB 12,000 (approximately $1,654) annually to invest in a range of retirement products such as bank deposits, mutual funds, commercial pension insurance, and wealth management products.

Read more about China’s private pension pilot program launched two years ago: China Officially Launches New Private Pension Scheme – Who Can Take Part?

The nationwide implementation underscores the Chinese government’s commitment to addressing demographic challenges and promoting economic resilience. By providing tax advantages and expanding access, the scheme aims to incentivize long-term savings and foster greater participation in personal retirement planning.

The reform is expected to catalyze growth in China’s financial and insurance sectors while offering individuals a reliable mechanism to enhance their retirement security.


This article was first published by China Briefing , which is produced by Dezan Shira & Associates. The firm assists foreign investors throughout Asia from offices across the world, including in in ChinaHong KongVietnamSingapore, and India . Readers may write to info@dezshira.com for more support.

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