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Global Trade News

Par : AHH

“The genie is out of the bottle. The provocation of a “USV privateer war” on trade routes threatens to collapse global maritime trade.”

By Rotislav Ishchenko at ukraine.ru.

(machine translation)

The oil tanker Virat has been attacked twice by unmanned boats near the Bosphorus Strait. On one occasion, the ship Kairos was also set on fire. Western media outlets have claimed that the tanker belongs to Russia’s “shadow fleet.” This expands the list of potential suspects. Naturally, Ukraine, which has been waging a long-standing war against the Russian military fleet using unmanned combatants, is at the top of the list. However, it is unlikely that Kiev would have dared to attack merchant ships, especially near one of the world’s most important transportation hubs connecting the Black Sea and the Mediterranean, which is controlled by Turkey, without the direct approval of its Western allies. The consequences, both direct and indirect, would have been far-reaching, affecting the entire world. Ukraine may no longer exist, but the unmanned surface vehicle’s (USV) attack on merchant ships could echo for decades, shaping the maritime trade landscape.

So it doesn’t matter whether these USVs belonged to Ukraine or whether the British and Americans decided to use their own or those belonging to a third country. The genie is out of the bottle. And not only because this game can be played by two people.

In this case, Britain is unlikely to hope to remain outside the scope of retaliatory actions. It is clear that it is more difficult to use USV to disrupt shipping in the open ocean than in enclosed waters such as the Black, Baltic, Mediterranean, White, Red, Yellow, and Japanese Seas, as well as all Chinese coastal seas. However, the ports of the United Kingdom are within direct reach of USV strikes from the continent and/or from ships and vessels passing through the English Channel. The situation for shipping may be even more dangerous in the classic pirate stronghold of the Caribbean Sea, which borders dozens of countries, many of which are home to both drug cartels and ideological guerrillas.

The threat to American southern ports in the Atlantic is clear.

At the same time, although USVs are more complex than the simplest air drones, they do not require high-tech enterprises for their creation. The problem of guidance, especially at shorter distances, is also solvable. This means that it is not always possible to determine the nationality of a USV that has not exploded, especially if the manufacturer deliberately conceals it.

Almost all strategic global maritime trade routes, no matter how far they extend into the open ocean, eventually pass through bottlenecks like the Bosphorus. Moreover, almost all of these bottlenecks are within the reach of the USV from the coasts of dozens of countries and/or hundreds of ships passing by simultaneously. Only the Northern Sea Route is relatively protected by national means. The rest can be blocked.

The provocation of a “USV privateer war” on trade routes threatens to collapse global maritime trade. This does not require sinking all ships. It is enough to make the threat significant enough to increase insurance premiums, crew salaries, and security costs, as well as delivery times. As a result, significant volumes will be excluded from global trade due to their unprofitability. Additionally, USV can be produced in large quantities (or purchased) and used by dozens of countries against each other. As we know, the greater the demand, the cheaper and easier to use the technology becomes. The first AK-47s were secret and carried in tarpaulin cases, but now the entire world, including the poorest tribes, is using them, and only the lazy ones are not producing them. Finally, the Ukrainian military crisis, as well as the wars between the Houthis and the Saudis and Israel, have demonstrated how easy it is to use high-tech weapons against a third country under the guise of a proxy ally. If Ukraine can launch American and European missiles, which require satellite guidance, at targets deep within Russia, and the Houthis can use hypersonic weapons to attack their enemies, what is stopping Somali pirates or Colombian drug lords from developing similar technologies for the USV?

I want to emphasize that the problem is not that a tanker that could theoretically belong to Russia’s “shadow fleet” was attacked. Russia is primarily a land-based power, and its main trade routes are located within the Eurasian continent and are well-protected. The main targets of the “USV privateer war” may include China, Taiwan, Japan, both Koreas, the Philippines, Vietnam, Thailand, Myanmar, Taiwan, India, the Gulf oil monarchies, Iran, Singapore, Turkey, Indonesia, and countries in the Caribbean, Mediterranean, North Sea, and Baltic regions.

These are either trade competitors of the United States and the United Kingdom, or allies of the United States who are in a leading geopolitical position and are used as a springboard for military and political pressure on the United States’ trade and economic competitors.


In recent years, the West has been losing not only the financial and economic struggle, but also the struggle for control of global trade. The dollar and the euro are losing their positions as the main and auxiliary global currencies and currencies for trade settlements. The yuan, rather than the ruble or the rupee, is actively replacing them. The traditional trade between the West and countries in the Gulf, Latin America, and Southeast Asia is gradually shifting to China. China is also actively expanding its presence in the Eastern Mediterranean, moving through the Greater Middle East.

In all of China’s advancements, maritime trade routes are of utmost importance.

The land-based trans-Eurasian trade routes that connect the continent into a unified economic Greater Eurasia serve as the foundation, but it is the control over maritime trade routes that allows China to build a “fairy-tale castle” of global profitable trade. It is no coincidence that China is building a navy that surpasses the United States in terms of the number of ships and is poised to surpass it in terms of overall combat power. China needs to control the routes that facilitate the sale of its goods. Russia can exist as an autarky, but China will quickly explode from within if its trade is blocked.

During the Ukrainian military crisis, Western UAVs, which were limited in their use in Ukraine, proved to be highly effective in controlling the water area dominated by the enemy’s navy and aviation, as well as in blocking ports and posing a constant threat to military bases. Russian sailors gradually learned to combat the UAV threat, but they were unable to completely eliminate it.

It should be noted that the military fleet, which exercises dominance in a closed water area, has impressive capabilities for combating enemy USVs. However, as mentioned earlier, the threat of USVs in the Black Sea has not been completely eliminated. For the military, repelling attacks is a natural activity. The merchant fleet, on the other hand, is not equipped to handle this task. Any measures taken to enhance the security of commercial ports and the surrounding water area will immediately impact the speed and cost of shipping goods, while the threat of USVs remains high.

The West is not just not afraid of playing a “double game” in the “USV privateer war.” It is provoking this war, deliberately seeking to paralyze global maritime trade.

We can say that this will hit the West itself. It will hit it, but not as hard as we would like. As mentioned above, the West has already lost its trade supremacy to China, and it will only continue to lose ground. However, the rules of geopolitical warfare require us to try to destroy the mechanism that benefits our geopolitical adversary rather than ourselves. During the two World Wars, when maritime trade was an Anglo-Saxon monopoly, Germany attempted to wage war against it using its submarine fleet. The West is now trying to strike a blow to global maritime trade, which is gradually being taken over by China.

We have repeatedly said that the paralysis of Chinese trade will inevitably plunge Beijing into a financial, economic, and then a social and political crisis. The Anglo-Americans have failed to isolate China through legal means, so why not try proxy piracy, since they are already waging a proxy war on land against Russia.

It is clear that we should not expect hundreds of USV attacks on sea routes tomorrow. However, we should not expect them to take decades to organize. As the development of UAV technology during the Ukrainian military crisis has shown, it is possible to transition from isolated attacks to large-scale use in a matter of months (or even a couple of years), which can change the entire dynamics of the conflict and require the development of appropriate countermeasures, which may not always be as quick as desired.

The fact that the incidents involving attacks on merchant ships by the USV occurred in the area of the Bosphorus, a trade route controlled by a NATO country, indicates that the organizers of this provocation are preparing for a global undeclared war on trade routes (similar to the war between English pirates and Spanish transatlantic trade in the 16th to 18th centuries), and they do not intend to tolerate the transfer of control over these routes to their geopolitical opponents. Given that the United States is developing an icebreaker fleet and actively expanding its presence in the Arctic, we should also consider strengthening the security of the Northern Sea Route.

When East and West can’t meet: Between Leviathan, Behemoth and Mandala

Par : AHH

The first ever ASEAN-China-GCC trilateral summit was a de facto celebration of the New Silk Road spirit.

By Pepe Escobar at the Strategic Culture Foundation.

The first ever ASEAN-China-GCC trilateral summit earlier this week in Malaysia – with 17 Global South nations at the table – was a de facto celebration of the New Silk Road spirit.

Malaysian Prime Minister and current ASEAN chair Anwar Ibrahim summed it all up: “From the ancient Silk Road to the vibrant maritime networks of Southeast Asia to modern trade corridors, our peoples have long connected through commerce, culture, and the sharing of ideas.”

That inspires a lot of reflection. Let’s try a first, succint approach matching East and West – and what divides them – guided by an extraordinary study, La Mediterranee Asiatique: XVI-XXI Siecle, by CNRS research director Francois Gipouloux, also a specialist in the Chinese economy.

The European tradition is far from monolithic – and it’s only part of the picture – when it comes to global perceptions about political philosophy and the conception of the State. There are stark differences even when referred to Hobbes, Locke and Rousseau.

The heart of the matter used to be the land/sea opposition. For Carl Schmitt, land/sea relates to friend/enemy – the matrix of politics – providing a key interpretation of world history, yet one among many.

It’s on “continental” Europe – to borrow the Anglo terminology –, mostly in France and Prussia, and not in England, that the Hobbesian concept of the State materialized. Britain became a world power thanks to its navy and trade, eschewing the characteristic institutions of the state such as a written constitution and a legislative codification of law.

Anglo-Saxon international law in fact voided the continental conception of the State and also war. According to Schmitt, it developed its own concepts of “war” and “enemy” out of maritime and trade conflicts which did not make a distinction between combatants and non-combatants (when it comes to its lasting legacy, think “the war on terror”).


My war is Just, because I said so

The opposition then solidified between the right to wage war on land – war is “just” if it happens between sovereign states, via regular armies, and sparing civilians – and waging war on sea, which does not imply a state-to-state relation. What mattered was attacking the trade and the economy of the enemy. And methods of total war were directed against either combatants or non-combatants.

That led to a new Western concept of “Just War” and international law: when the enemy is turned into a criminal, juridical and moral equality between belligerents is shattered.

That’s the perverse logic behind psycho-pathological genocidals legitimizing the destruction of Palestine.

These differences in the formulation of law came out of two different conceptions of space: closed, overland – featuring sovereign states, territorially delimitated – and open, over the seas – a unique space, unlimited, free of every state control, where primacy is about securing communication links. The British did not think about space in terms of territory, but of routes of communication, just like the Portuguese and the Dutch before them.

Schmitt identifies in the State an entity linked to land and territory. So, as startling as it seems, it’s Behemoth, the terrestrial animal of the Old Testament, and not the marine monster Leviathan that should have been chosen by Hobbes as a symbol of the State.

In the development of the West, three institutional forms – equally viable – were in competition: Leagues of Cities – like the Hanseatic Legue; City-States – especially in Italy; and the Nation-State, especially in France.

Few across the West may remember that the Hanseatic League and the powerful Italian city-states, for at least two centuries, were viable alternatives to the territorial state. Two top researchers, Douglass North and Robert Paul Thomas, in The Rise of the Western World: A New Economic History, argue that the modern state was imposed on Western Europe because it was the best equipped to fulfill two key tasks: to efficiently guarantee property rights and the physical security of people and goods.

If we go back to Europe in the 14th century, before the Renaissance, there were at least a thousand states, of all sizes. That means no concentration of power – and some sort of creative competition in store. There was a reasonable amount of choice for those who wanted to find better places to exercise their freedom.

We had for instance Germany, with its three main actors constituted as the Emperor, the nobility and cities; Italy, with its main actors as the Papacy, the Emperor and cities. And France with its three main actors as the King, nobility and cities. In each case, different alliances proliferated.

In Germany, the Emperor allied with the nobility against the cities. In Italy, nobility was urbanized, and cities profited from endless squabbles. In France, nobility was very suspicious of the bourgeoisie, and the King allied himself with the cities against nobility. England chose a completely different path. Even before France, the Brits created a centralized state, but under a quite original political set up.


Asia and the Mandala State

Asia is a completely different story. Here we cannot use the terminology of “state” to designate the political constructions of Southeast Asia before decolonization. In Southeast Asia, the borders were arbitrary between the tribe, so-called “primitive” political formations (from a Western perspective) and the State.

Springing up from political concepts prevailing in India, Islam and the West, states showed up in the Insulindia (maritime Southeast Asia) archipelago, for instance, as courtly bureaucracies, based on a network of complex alliances. Whatever the degree of institutionalization, the distinction between The King, The Vassal and The Bandit was tenuous at best.

Vietnamese researcher Nguyen The-Anh has remarked how “political fragmentation is generally the preliminary conclusion of the first Europeans who made contact with Southeast Asia. Marco Polo saw in the north of Sumatra ‘eight kingdoms and eight crowned Kings…each kingdom possesses its own language.”

China, on the other hand, featured a unitary state imposing – via a quite efficient administration – social order over a vast territory. There was no competition against the centralized state issuing from a landed aristocracy; no urban bourgeoisie; and no military contesting the imperial order, as in Europe. That’s the major difference between China and the West.

Thomas Aquinas decreed that if the power of the king belongs to a multitude, it’s not unjust that the king is deposed or sees his power restrained by this very own multitude if he turns into a tyrant and abuses royal power.

This distinction is completely alien to the Chinese tradition. What happened over the past century or so in China is that the peculiar configuration – and competition – between local actors and central power led to what could be defined as an unstructured empire, whose force comes from its shape-shifting borders and the diffused character of transnational networks.

In a global economy, this gives China an exceptional projection capacity. When borders become fuzzy, and the link between the state and individuals is fuzzy, the unstructured character of this Empire allows the Asian periphery of China to develop in an arc from Japan and the DPRK to Singapore and Indonesia. This is exactly the subtext of some of the key discussions in Kuala Lumpur at the ASEAN-China-GCC summit. Jeffrey Sachs totally got the picture beforehand.

Now, the opposition between a system of international relations deemed “backwards” and irrational in Asia and modern and rational – because based on realpolitik – in the West is over. Cultural factors now shape reality in Asia as well as in the West about the conception of the state and international relations.

China is finally self-assured enough to start disengaging from the current, Western-dominated system of international relations – because it has the means to do so.

The Chinese concept of harmony in international relations used to be linked to the proclamation of a natural order of which China would be the guarantor. But now we are a long way away from the 18th century, when the international environment of the China of 18 provinces was constituted by Korea, Manchuria, Mongolia, Chinese Turkestan, Tibet, Burma, Annam, the Ryuku archipelago and Japan. The Qin dynasty was keen to reassert its suzerainty on the political and cultural domains, assuring the protection of China by managing a belt of favorably disposed states.

Today a self-assured China sees a new system of international relations directly linked to a Belt and Road network of geoeconomic opportunities for all. That underlies the relationship between China and ASEAN, GCC, CELAC, Central Asia and the whole of Africa.


Welcome to the archipelagic world

The world has surpassed the “overland” or “maritime” dilemma, beyond Mackinder and Mahan. The world is now best defined, as Gipouloux coined it, as archipelagic (italics mine), linking urban nebulas of different sizes and vocations.

Globalization accelerated the transformation of a terrestrial world into an archipelagic world. New technologies, economic and financial pressure, disinformation on a mass scale – China is navigating all these rocks in shallow straits in the quest to solidify itself as a global power.

All that implies the progressive, thalassocratic advance of China: a flexible and tolerant Empire (“community of shared destiny for mankind”), a rich confederation with a capacity for global influence supported by polymorphic communities – the “bamboo internet” of the Chinese diaspora.

This is what was on display in Kuala Lumpur – and will continue to evolve via an array of multilateral organizations. Mandala at work, Chinese-style.

The Houthis & Yemen: A History (and brought forward from a year ago)

Par : AHH

Guest: Shireen Al-Adeimi is a non-resident fellow at the Quincy Institute for Responsible Statecraft and assistant professor of language and literacy at Michigan State University’s College of Education.

More versions of the podcast at:

The Houthis & Yemen: A History

≈≈

An eloquent short historical profile of the Ansarullah movement by a fair critic from south Yemen. She is from Aden, the traditional rival of north Yemen of the last centuries, and the third most important global sea port in the 19th century.

She dispels Anglo-Zionist agitprop that Yemenis serve Iran, or that Ansarullah are a minority; they control 80-85% of the total population that lives bunched in the smaller but more secure highland north. Zaidi Islam is followed by 40% of all Yemenis and coexists peacefully with Sunni and Shia, being not of either, but a bridge respected by all except fringe salafi extremists imported from the GCC. She reminds us that ALL Yemenis have been devotees of Palestine and their liberation cause for over a century now, starting with the British occupation.

Ansarullah represent and merely discharge the will of at least 30-32 Million of the 40 M Yemenis. 

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