With Chinese President Xi Jinping likely to be confirmed for a third term as Supreme Leader of the Chinese Communist Party (CCP) at the 20th Party Congress in Beijing commencing 16 October, Myanmar needs to give thoughtful consideration to the ramifications for the China Myanmar Economic Corridor or CMEC.
With Myanmar’s current military regime pursuing a “China-plus” policy, there appears to be little focus on how best to mitigate risk associated with this policy. In particular, the ports of Kyauk Phyu and Yangon give a strategic foothold to China through the Belt Road Initiative (BRI) as well as the Digital Silk Road (DSR).
What is the risk?
At a basic level, Myanmar could be blindly walking into the digital trade bifurcation trap. With China supplying the IT and digital platforms as part of the BRI, these Port and Terminal Operating Systems through their interface with China data platforms are not just putting Supply Chains at risk, but also increase Myanmar’s international isolation.
How is this risk escalated?
As we see the momentum shift by global trade to establish the new digital trading environment, there has been an increase in the adoption of “smart port”, “smart city” ecosystem integration. Within the CMEC structure – the corridor linking China’s southwest with the Indian Ocean - there appears to be little recognition that the digital trading platform being rolled out under the BRI and DSR has an underlying ICT network that cedes data ownership and control to the CCP’s Ministry of Transport. This is via a centrally controlled coordination management system.
The digital network, aptly called LOGINK (logistics link), is being crafted under the direction of the DSR that facilitates connectivity and seamless trade along the BRI. Operationally Logink is under the direction of the China Transport Telecommunications and Information Center (CTTIC). In turn CTTIC is guided by the CCP and Xi Jinping’s DSR strategy. Taking advantage of the gap in digital logistics market data standards, it has used both the DSR and BRI to defacto set international data standards that allows seamless data transfer and exchange at critical logistics-supply chain merge points. The most critical of these logistics merge points are Ports.
The divide between the emerging two global trade two ecosystems has escalated, particularly as China-USA tensions rise.
Unfortunately, global trade is approaching the stage where it will need to decide in which ecosystem it wants to participate. Based on current trajectories, business will be forced to take sides as how trade is undertaken and what digital standards and systems are to be used. Within the Indo-Pacific region we see China’s DSR taking ascendency in the integration and seamless transfer of data and information. Besides creating a sound platform for China to become a superpower in terms of logistics and supply chains, it has also made the choice of operating ecosystem for BRI participants, giving Beijing significant control over their trading partners.
Port and Terminal Operating Systems are inadvertently docking into the little-known China data aggregation Logink network. What many failed to recognise is that it is not the ICT infrastructure or operating system that gives data its power, but the interface software network that does.
Importantly, Logink was formulated prior to the Belt Road Initiative and at a time when China embraced an “open China” and there was a separation of State from the Economy. Under the “Open China” policy framework and its concomitant trade benefits, the world’s first real planning and supply chain data information sharing warehouse network was given a home.
Portrayed as a one stop enquiry service for public logistics information and data resources, it is often seen as a benign software application. This was welcomed into several international authorities, not least of which is the International Port Community Systems Association. Dr Sun, Director General of Logink, played to the benign nature of Logink when saying that their work with the IPSCA was to simplify the logistics visibility in a standardised way that offers the international community the following benefits: standard setting, information interchangeability and data services.
Logink aggregates international data on the shipment of goods and infrastructure operations. It provides users the data that facilitates supply chain coordination, customs reporting, transportation monitoring and smart logistics across rail, air, sea, land, and ecommerce.
Port and Terminal Operating systems disrupting Supply Chains?
Logink is now fully incorporated and partnered with twenty ports worldwide, increasingly being incorporated into Chinese and International Companies. This gives China a significant competitive advantage as it has extensive data on port-to-port movement of product through these “smart ports,” making this data susceptible not just to security concerns but manipulation. It gives real time visibility of cargo, it also collects data on storage, logistics, packing processing and distribution data. As the data is held and controlled centrally in Beijing, there is potential for remotely adjusting data, such as container temperature such that fresh produce arrives spoilt by the time it reaches its destination.
From a Port or Terminal operating system perspective, it should be noted that data can be manipulated as to the shipper, route selection, partners, and regulatory controls. There is also the vulnerability of supply chain disruption should China decide to make Ports “go dark” - an issue that is becoming more problematic for trade that wants to reduce its reliance on China.
If there is a change back to civilian government in Myanmar and the new government wishes to engage in multi-lateral trade, it is going to have to ensure that it has robust security and API protocols that protects the integrity of the data that is shared with the western aligned open platform. Kyauk Phyu and Yangon Ports will need to build robust systems that allow safe and secure data transfer with their ecosystem that gives international trade confidence that trade with Myanmar is indeed secure. This will become an increasing priority particularly when you consider the likes of Rotterdam, Hamburg, Haifa, and Antwerp are already docked into the LOGINK platform.
These robust data exchange protocols become more essential now that the many international open trade systems are now questioning the Logink data aggregation platform. This has been driven by Xi Jinping’s China changed trajectory in terms of what it means when he claims the BRI-CMEC is “building a common human destiny for the benefit of all mankind”.
What does Xi Jinping and the CCP mean when they refer to a “Shared Common Human Destiny for All”?
This phrase needs greater clarity as the 20th Party CCP Congress is fast approaching, particularly as this is the underlying philosophical base underpinning China’s plans emerging from the Congress. It is expected that Xi Jinping will get a third term as Party Supreme Leader, and with this in mind, one needs an understanding of what is meant by the constitutionally enshrined “Xi Jinping Thought” articulation of a “shared common human destiny for the benefit of all”.
It is at time bemusing that many in business, civil society and government have a limited understanding of this concept. Many see it as a benign philosophical framework framed within the “win-win narrative” of the BRI. The first indication of the direction that Xi Jinping would take this “common human destiny” was at the 2018 Party Congress. It was at this Congress that Xi unveiled a large portrait of Karl Marx in the Great Hall, declaring that Marxism was the only way that humanity could achieve a common destiny. In a sense, Karl Marx is to Xi Jinping as Jesus Christ is to Christians. This adoration of Karl Marx shaped many of the subsequent Xi Jinping’s writings where he saw China - through Xi Jinping – as leading the world to a new nirvana, a new utopia. This gives the second indication as to what is meant by a “shared human destiny”.
What does Marxism say about common humanity?
A central pillar of Marxist theory is the notion of “freely associated individuals”. This freedom calls for individuals - whether people, organizations, or nations - to be assimilated into the collective. By ceding control to the centre, it would enable decisions to be made for the collective good. As such, under the “common good” mantra, all ownership and control of our everyday life is vested with the State.
Will the CCP 20th Party Congress takes this collective assimilation further?
It is clear from Xi Jinping’s speeches and writings that Marxism only reaches its true potential under the stewardship of China. In essence, the 21st century Marxism-Socialism can only be true to its core should it have Chinese Characteristics. This is based on belief that it is only China that has withstood the challenges presented by liberal democracies. Central to this belief is that China, under the leadership of Xi Jinping, will absorb other nations under its umbrella and will itself not be absorbed by others. Essentially this makes China the central global government.
Furthermore, through the likes of the BRI and digital platforms such as LOGINK, China will lead this new assimilated and integrated world. This essentially makes China a revisionist power. Under this scenario, the CMEC initiative under the new emerging narrative, is the vehicle by which Myanmar will lose its sovereign identity and would become a vassal state of Beijing.
Let’s take a look into China’s Mosaic of this new world order, and how the CMEC facilitates this.
Over Xi Jinping’s leadership period we have witnessed the continued creation of China’s new world order. Using the basic tenants of Mosaic Theory, it is only the artist that has a view of what the final creation would look like. Xi Jinping’s BRI and DSR makes him the mosaic art master. Participants and observers during the creation process are really confined to the individual parts of the construct without being given the full context.
In Myanmar’s case, focus is limited by the CMEC, and debate does not extend to how their singular element contributes to the final or bigger China mosaic. Government and individuals involved with CMEC should be looking to see how other activities, both regional and global, are building the final work. For example, how does China’s involvement in the Solomon Islands contribute to the final picture or mosaic? How will the new Italian government now contribute to the fabric of this new world order mosaic?
Now that we have some of the context around how China’s mosaic of the global trade and sphere of influence is being developed, we also know that the final pieces in the mosaic are planned to fall into place in 2049. This is the 100th anniversary of the founding of the CCP, the timeline given to restore “China’s Pride”. Understanding his belief system indicates that the answer to a “common human destiny for the benefit of all mankind” can only be delivered by adherence to fundamental Marxism with Chinese Characteristics. Under this construct, the individual components of the world order are subsumed into the collective. Under Xi, China will do the absorbing of the individual components or countries and give direction and meaning to the finished mosaic.
Xi Jinping has set in motion the building blocks for this new collective world order. This strategic laying of the mosaic tiles will continue under Xi Jinping’s leadership and will be greatly enabled by initiatives such as CMEC.
Myanmar needs to decide whether it desires to be absorbed by the greater China, as this is what will be expected by China of all BRI participants following the 20th Party Congress in October.
Andre Wheeler for Mizzima
