http://www.atimes.com/atimes/China/CHIN-02-080514.html

May 8, '14


China drills its hardpower reserves
By Peter Lee 

It is difficult to be blithe about the dispatch of China's HYSY981 drilling rig 
into disputed waters off the Vietnamese coast. It actually would have been less 
of a provocation if the PRC had sent the aircraft carrier Liaoning down there 
instead. 

One of the interesting by-products of the US "freedom of navigation" campaign 
in the South China Sea was the US staking out a position that military 
operations by foreign vessels inside an exclusive economic zone, or EEZ, were 
not the kind of economic intrusion that the United Nations Convention on the 
Law of the Sea (UNCLOS) intended to preclude. 

In fact, after the harassment of the USNS Impeccable, a US Navy survey vessel 
that cruises through China's EEZ towing various gadgets, the US went out of its 
way to assert that the ship was not doing anything that could be construed as 
economic or even dual use, such as mapping the ocean floor, and insisted the 
ship was there to track People's Liberation Army Navy (PLAN) submarine 
movements. 

By that logic, the Liaoning chugging through any waters in the South China Sea, 
in EEZs disputed or not, is something that nobody can complain about. And 
indeed, that's what the Liaoning did, on its shakedown cruise in the South 
China Sea at the end of 2013. 

Sending the HYSY981, China's billion dollar deep water drilling rig - with its 
Vaderesque Death Star mission to intimidate China's hydrocarbon adversaries by 
demonstrating the PRC's capabilities in unilateral development of contested oil 
fields - is exactly the kind of destabilizing EEZ gambit that raises tensions 
and invites a response. 

The PRC has left itself some wiggle room by sending the rig to a location close 
to the Paracel Islands - held by China and deserving some as yet undetermined 
EEZ of its own - so that the waters are contested rather than unambiguously 
Vietnamese, but the nature of the incursion implies that the PRC was not 
expecting Vietnam to suck it up and ignore the PRC challenge. 

The HYSY981 is reportedly escorted by a flotilla of dozens of vessels, 
including ubiquitous maritime patrol vessels and, I would assume, the various 
support vessels needed to go about its drilling business. I also came across a 
report, well, actually a statement by an overwrought PRC nationalist blogger, 
that the rig is also escorted by anti-missile destroyers, which would be a 
major crossing of the line in bringing overtly military elements into the PRC's 
economic contention with its maritime neighbors. 

Even if the destroyers aren't on the scene, the PRC is committed to dishing it 
out. 

Vietnam released a video of PRC maritime patrols vessel ramming Vietnamese 
coast guard cutters trying to approach the rig, a sign that the PRC has no 
qualms about playing the pugnacious/threatening/aggressive regional power for a 
world audience. 

The big question is: why? 

Why, after Vietnam has been reasonably cooperative in its dealings with the 
PRC, most conspicuously by declining to openly support the Philippines' 
arbitration case against the "nine-dash-line", is the PRC picking on it in such 
an ostentatiously crude and overbearing fashion? 

On the most immediate level, I think it's because the PRC wants the practice - 
practice in engaging in relatively large, cumbersome naval operations in a 
genuinely hostile environment, but one in which the embarrassment of a 
catastrophic military encounter is pretty low. Engaging in a major provocation 
inside Vietnam's declared EEZ and getting the chance to bully Vietnam, with its 
underpowered marine forces and lack of a formal defense alliance with a capable 
regional (Japanese) or world (US) power, fills the bill. 

One of the biggest challenges to the PRC's military capability and credibility 
is that it hasn't fought a hot war with anybody in the last 45 years. With a 
provocation against Vietnam, the military system gets a nice little exercise. 

Bearing in mind a comment I read that "the same capital ships that escorted the 
Liaoning are with the HYSY981", it doesn't take too much imagination to imagine 
the Liaoning plunked down inside the same kind of security cordon that now 
contains the rig. 

On the intermediate level, I see the Vietnam gambit as preparation for a 
confrontation with the country that the PRC really wants to humiliate: the 
Philippines. 

The Philippines is a much riskier nut, since it has 1) a military alliance with 
the United States and 2) a foreign policy team that has put most of its eggs in 
the brinksmanship basket, refusing to engage bilaterally with the PRC, 
relying/hoping that the US will deter PRC aggression and, if some kind of 
conflict breaks out, intervene in an effective way on the Philippines behalf. 

The Philippines apparently sees it the same way, if the May 6 seizure of a 
Chinese fishing boat is designed to demonstrate its resolve to succor Vietnam 
by presenting the PRC with the unwelcome prospect of getting embroiled in two 
maritime disputes - with the prospect of US involvement - at once. 

I don't think the PRC will take that particular bait today. But I would not be 
surprised to see the HYSY981 show up in the "West Philippine Sea" in the near 
future. 

On the higher, long-game level, I believe the PRC leadership has decided that 
the United States can no longer bring anything positive to the table for the 
PRC as it has completely and symbolically committed to the Asia pivot and its 
narrative of PRC containment with President Obama's trip to Asia. 

I think it would have been prudent for President Obama to have hedged America's 
bets by dropping in on Beijing, but he didn't, sending Michelle Obama instead. 
Die is cast, in other words. 

The PRC response, I believe, is not to confront the United States; it is to 
marginalize it, by driving the Asian security narrative into regions that 
deeply concern its neighbors but only tangentially engage the United States. 

In recent weeks, I would contend that the PRC has reversed the wedge against 
the US-Japan alliance.
nstead of trying to wedge the United States away from Japan and toward some 
kind of accommodation with PRC interests, the PRC is trying to wedge Japan away 
from the United States by goading/enticing Japan into an independent role that 
marginalizes the United States. 

So we saw the PRC wait for President Obama to leave Asia, then resume its 
provocations in the Senkakus, while exchanging peaceable mid-level envoys with 
Japan ... 

... and ostentatiously beating up on Vietnam, which Japan has been courting as 
a member of Prime Minister Abe's anti-PRC economic and security alliance. 

The motive, I would guess, is to compel Japan to abandon its formal lockstep 
identification with the US pivot leadership in Asia (which, I would posit, 
Japan has honored in the breach already with its independent-minded footsie 
with Vietnam, the Philippines and North Korea) and emerge with its own 
initiative to provide Vietnam with some kind of diplomatic, economic, or 
military support - or else reveal the hollowness of the assurances it is 
offering to South East Asian countries to entice them into the Japanese camp. 

Once Japan is "off the rez" so to speak, it will be forced to engage in a 
meaningful way, either through confrontation or negotiation, with the PRC in 
order to advance its Asia strategy ... and the United States will see its clout 
diminished and have to deal with the PRC as well to get back into the game. 

Given the PRC's traditional focus on avoiding confrontation while it muscles up 
militarily and diplomatically, this kind of provocation and open escalation 
would seem to be counter-intuitive. 

But I think the PRC has decided that, with the US public commitment to the 
pivot and encouragement to Japan to implement collective self defense, the US 
"honest broker" ship has sailed, the real US security role in Asia is 
backstopping its pivot allies, and the pivot battleline has to be challenged 
before it became too entrenched. 

And it's doing that by demonstrating, in relatively crude terms, that the 
deterrent strategy that underpins the pivot will not, well, deter the PRC and 
the PRC will bear-and extract-the economic costs of defying the will and 
preferences of the US and its Asian allies (and, in the case of Vietnam, its 
unlucky Asian associates). 

As to why the PRC should decide to excite universal fear and loathing at this 
particular junction, one could spin it positively by saying that it is simply 
accelerating the birth of a new Asian order with a new balance of powers and 
the US stripped of its dominating role. 

The negative interpretation is probably more persuasive. The PRC sees a hard 
and ugly decade ahead, with anti-PRC administrations in power in many of the 
Asian capitals, keystoned by a Hillary Clinton presidency. Best to lance the 
pivot boil early, before the pivot military bulk-up has completed, and while 
the relatively conciliatory President Obama is in power and distracted by the 
idea that he doesn't want to pile a confrontation with China on top of his 
current problems with Russia. 

The PRC's decade of soft power is, prematurely, over, thanks to the success of 
the pivot in blunting the PRC's drive to dominate the region by virtue of its 
economic, demographic, and implied military clout. Its relations with its 
maritime neighbors will, I expect, be increasingly driven by hard power. 

I think the PRC has decided to hunker down, and absorb the diplomatic, 
economic, and social costs of heightened fear and anger, and gamble that it can 
outmaneuver and outlast the hostility of the pivot nations. 

It's an ugly and dangerous gamble, especially since the first, second, and 
third instinct of everyone involved on the anti-PRC side will be to escalate in 
order to create a greater feeling of security and also bolster the deterrent 
narrative that the military capabilities of the US and its pivot partners is 
what is keeping Asia safe. 

Dangerous days, indeed. 

Given the unfavorable west Pacific environment, sitting idly by, or trying to 
ingratiate itself with the Asian democracies and the United States through soft 
power gambits do not appear to be high on the PRC's list of options. 

With its overtly confrontational moves in Qingdao and Shanghai, it appears the 
PRC is signaling it is prepared to abandon "soft power", give up on the promise 
of US forbearance, and manage its business in an increasingly hostile regional 
environment. 

And it doesn't seem likely that the PRC is blustering in order to obtain some 
face-saving concessions or lip service from the US. It is targeting Japan 
instead of dealing with the US, and challenging the United States to do 
something effective in support of its ally. 

The PRC has always been alert to the need or opportunity to challenge the 
credibility of the US deterrent and, with the heightened anxiety fostered by 
Russia's annexation of Crimea, that day has arrived perhaps sooner than anybody 
wished. 

If the PRC intentionally fomented the Ayungin Shoal resupply crisis with the 
resolve to let the US-PRC relation go south if needed rather than passively let 
the pivot dynamic play out to its disadvantage, we are definitely in for some 
tense and unpleasant times - and the costs of maintaining the credibility of 
the US deterrent might be considerably higher than we prefer. 

The PRC appears to be signaling its determination to hunker down and weather 
the geopolitical storm - which might include a sooner-rather-than-later Taiwan 
crisis and the need to blame a handy US scapegoat - for years if need be, and 
pursue the struggle in domestic venues where it holds an advantage. 

Peter Lee writes on East and South Asian affairs and their intersection with US 
foreign policy. 

(Copyright 2014 Peter Lee 

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