U.S. President Joe Biden and Chinese President Xi Jinping had a phone conversation on Tuesday, the first time the two leaders have spoken since their in-person meeting in November.
As has happened following previous conversations, there is a considerable difference between the Chinese and U.S. readouts of the conversation. While both sides stressed the importance of maintaining open lines of communication, the official White House readout as usual placed a high stress on cautioning China against a variety of actions while saying virtually nothing about the clear need to undertake constructive actions to address common problems, such as those regarding climate change and pandemics.
Equally important, as in past such readouts on conversations held between U.S. and Chinese officials, Beijing listed a set of assurances that Biden has supposedly made several times to Xi regarding Taiwan, U.S. alliances, and other critical security issues. And yet the U.S. side, as in the past, again failed to mention such assurances in its official readout of the conversation.
Why is it that Washington will not confirm, clearly and unambiguously, that Biden either has or has not made all such assurances to the Chinese side? Various lower-level officials have at times made some of these assurances. But to my knowledge no U.S. official has made all of them. And Biden has not personally confirmed that he has made all such assurances.
The failure to clear up this apparent disparity in messaging on these crucial issues could eventually produce Chinese expectations and perhaps even pressure on the U.S. that Washington pushes back against, thus creating a crisis in relations. Washington needs to do more to build constructive relations with Beijing on both sides' vital interests, and clarify its stance regarding Biden’s supposed assurances. This is particularly necessary with regard to the administration’s policies regarding Taiwan. See my recent brief on what the White House needs to say and what Beijing needs to do on that critical issue.
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Michael D. Swaine is a Senior Research Fellow on East Asia at the Quincy Institute and is one of the most prominent American scholars of Chinese security studies.
FILE PHOTO: U.S. President Joe Biden meets with Chinese President Xi Jinping on the sidelines of the G20 leaders' summit in Bali, Indonesia, November 14, 2022. REUTERS/Kevin Lamarque/File Photo
FILE PHOTO: U.S. President Joe Biden meets with Chinese President Xi Jinping on the sidelines of the G20 leaders' summit in Bali, Indonesia, November 14, 2022. REUTERS/Kevin Lamarque/File Photo
Revenues at the world’s top 100 global arms and military services producing companies totaled $632 billion in 2023, a 4.2% increase over the prior year, according to new data released by the Stockholm International Peace Research Institute (SIPRI).
The largest increases were tied to ongoing conflicts, including a 40% increase in revenues for Russian companies involved in supplying Moscow’s war on Ukraine and record sales for Israeli firms producing weapons used in that nation’s brutal war on Gaza. Revenues for Turkey’s top arms producing companies also rose sharply — by 24% — on the strength of increased domestic defense spending plus exports tied to the war in Ukraine.
The United States remains the world’s dominant arms producing nation, with $318 billion in revenues flowing to American firms in the world’s top 100 for 2023, more than half of the global total. And the five highest revenue earners globally were all based in the United States — Lockheed Martin, Raytheon (now RTX), Northrop Grumman, Boeing, and General Dynamics.
China ranked second to the United States in arms industry revenues, with nine firms accounting for 16% of the revenue received by companies in the global top 100. Two of the fastest growing countries in terms of revenue growth for top companies were also in Asia, South Korea (plus 39%) and Japan (plus 35%). South Korea’s increase was tied to major export deals with Poland and Australia, while Japan’s was driven by its largest military buildup since World War II.
SIPRI’s analysis takes a “just the facts” approach, tracking sales numbers and correlating them with increases in domestic and export spending tied to specific events. It does not address the dire humanitarian circumstances that underlie the growing revenues of top arms companies, most notably Israel’s unconscionable attacks on Gaza, which have killed over 40,000 people directly and many more through indirect causes, including over 62,000 who have died from starvation. The companies and countries fueling this mass slaughter — including U.S. firms that have supplied a substantial share of the bombs, missiles, and aircraft used in Gaza — should be held to account for their actions, even as they halt the supply of weapons and services that the Israeli government is using to commit ongoing war crimes.
Another major impact of the revenue surge for top arms makers is the diversion of funding and talent from addressing urgent global problems, from climate change to poverty to outbreaks of disease. And the more companies and countries become dependent on the profits of war, the harder it will be to shift funding towards other urgent priorities. The continuing militarization of the global economy has a double cost — lives lost in conflict and devastating problems left unsolved. The situation needs to be treated as far more than a grim parade of statistics about who benefits from a world at war. It should be treated as an urgent call to action for a change in global priorities.
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Top Photo: Biden (left) meets with Russian President Putin (right). Ukrainian President Zelenskyy sits in between.
On Wednesday, a Ukrainian delegation led by Defense Minister Rustem Umerov met with South Korean officials, including President Yoon Suk Yeol. The AP reported that the two countries met to discuss ways to “cope with the security threat posed by the North Korean-Russian military cooperation including the North’s troop dispatch.”
During a previous meeting in October, Ukrainian President Volodomir Zelenskyy said he planned to present a “detailed request to Seoul for arms support including artillery and air defense systems.”
So far, South Korea has participated in sanctions against Moscow, has sent Kyiv financial aid, and supplied vehicles and de-mining equipment. However, Seoul has declined to provide weapons to Ukraine, even as North Korean forces are confirmed to be supporting Russian troops on the frontlines of the war.
South Koreans have been resistant to sending weapons to Ukraine. According to a Gallup poll, 82% of the public opposed such measures. While the government has not ruled out sending weapons to Ukraine, experts question whether Seoul is likely to provide weapons at this stage, as President Yoon’s approval ratings are very low, and South Korea has little to gain from such an escalatory action, even when considering North Korean involvement in the conflict.
“This kind of alleged collaboration between Russia and the DPRK only poses a concern for Seoul insofar as it is being used by Western leaders to rope South Korea into taking a more active role in aiding Ukraine,” says the Quincy Institute’s Mark Episkopos. “The ROK must balance any such pressure from the White House with the looming transition to a Trump administration that approaches the Ukraine war in a fundamentally different way.” He adds, “under the circumstances, Seoul has little to gain from radically upending its cautious, passive Ukraine policy in the waning days of the Biden administration.”
For its part, Moscow has responded harshly to the possibility of South Korea supplying Kyiv with arms. “Seoul must realize that the possible use of South Korean weapons to kill Russian citizens will fully destroy relations between our countries,” said Russian Deputy Foreign Minister Andrey Rudenko.
Neither Seoul nor Kyiv have commented on whether any agreements were made concerning weapons sharing but agreed to continue sharing security information related to North Korea and Russian cooperation.
Other Ukraine News This Week:
Reuters reports that Ukraine launched American-supplied ATACMS twice in the last week. Both strikes targeted Russian operations in Kursk. The Russian Defense Ministry said that “retaliatory measures are being prepared.”
A record-breaking 188 drones were launched by Russia on Tuesday. The AP reports that most of the drones were intercepted, but that damage was done to civilian infrastructure, with no reported casualties. The drones were launched all at once, targeting 17 of Ukraine’s regions.
An analysis of Russia’s Oreshnik missile indicates that it was potentially not loaded with any explosives, or possibly a very small amount. According to the New York Times, the missile launched last week caused less damage than would have been expected had it been heavily armed. Jeffery Lewis, a nuclear nonproliferation expert at the Middlebury Institute for International Studies, said that “the damage to the facility is quite specific — no large explosions, just big holes punched in the roofs.”
Even though the missile was seemingly minimally armed, the Times reported that “Nick Brown, an analyst at Janes, the British-based defense intelligence firm, said it was the longest-range weapon to ever have been used in conflict in Europe.”
Russian state media claims that the Kremlin complied with a 1988 ballistic missile agreement by warning the United States of the launch 30 minutes in advance.
According to Reuters, North Korea has begun to expand a plant that makes Russian-used missiles. The plant makes short-range missiles that are assumed to be used in Russia, but Moscow and Pyongyang have both denied the transfer of North Korean weapons into Russia.
The Financial Times reported that Russia has recruited potentially hundreds of Yemeni nationals to assist in its war against Ukraine. The Houthi-connected recruits were apparently promised well-paying jobs and even Russian citizenship, before being coerced into military service.
The Houthi government and Moscow have been working to deepen relations and secure contracts, according to U.S. special envoy for Yemen Tim Lenderking. Additionally, a member of the Houthi movement told Russian media that the Houthi government was in “constant contact” with Moscow.
According to FT, many of the recruits had no military training and were tricked into service by signing contracts that they could not read.
Spokesperson Matthew Miller said reports about Yemeni nationals being recruited to fight alongside Russian forces in Ukraine were concerning and reflected the desperation that Moscow was experiencing at this point in the war.
Miller also said that any deterioration of relations between North and South Korea and Russia would be the fault of the Kremlin, not the West or Ukraine. Additionally, he could not confirm whether Russia had begun to supply North Korea with missile defense systems or not.
Miller did not have any comment on the reports that some European officials were discussing the possibility of deploying forces to Ukraine.
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Top photo credit: Trae Stephens of Anduril Industries’ at the Stanford Seminar: Silicon Valley & The U.S. Government (You Tube/Screenshot)
According to WSJ, President-elect Donald Trump is eyeing Trae Stephens, a close affiliate of venture capitalist and Pentagon contractor Peter Thiel, as his incoming administration’s Deputy Secretary of Defense.
The deputy secretary, a position now held by Kathleen Hicks, is the second-highest-ranking civilian in the Pentagon, with the primary responsibility of “managing the defense budget and executing the priorities of the secretary of defense.”
A longtime partner at Thiel’s Founders Fund and co-founder and Executive Chairman at Anduril, a defense industry company with myriad government contracts, Stephens is an influential player at the intersection of venture capital and defense tech. To say that being in charge of the defense budget could pose a potential conflict of interest, would be an understatement.
Previously, he worked for Thiel’s Palantir Technologies, which for years has received contracts from across the federal spectrum, including the Department of Defense, FBI, and Department of Homeland Security.
Striving for political influence in a perpetual quest for business-sustaining government contracts, Anduril has become a prominent Washington lobbyist, especially regarding AI regulations. Palantir has likewise secured positions in high places like the U.S.-China Economic Security and Review Commission, which advises lawmakers on the U.S.-China relationship. And now, the possible Stephens appointment represents the undeniable influence of defense tech, and especially venture capital-backed defense tech in Washington politics after years of work getting a seat at the table.
Zooming out, Peter Thiel, a serial funder of congressional campaigns, bankrolled fellow venture capitalist and now-VP elect J.D. Vance’s successful 2022 Senate Campaign in Ohio to the tune of $15 million — the most anyone has given to a Senate candidate. Thiel and Vance are in fact long term associates, where Thiel previously assisted Vance’s own venture capital career. Not to miss an opportunity, powerful members of tech's inner core jumped into action via Elon Musk’s Super PAC, America PAC, upon Vance’s VP-nomination, giving $200 million to the Trump campaign overall.
Even if the Stephens nod doesn’t happen, the other possible Deputy Secretary of Defense pick, billionaire financier Stephen Feinberg, is just as much of an industry mainstay. The previous Trump administration’s intelligence advisory board head, Feinberg in the past owned once-prominent national security contractor DynCorp (now part of Amentum) and is the CEO of Cerberus Capital Management, which launched a defense-focused venture capital arm this year. A Feinberg spokesperson, however, said that he has not been offered a position.
As electronic warfare startup CX2 co-founder Nathan Mintz explained to Forbes, “the close relationships between (vice president-elect) Vance, Elon and the defense VC and startup ecosystem will create a huge opening for real defense acquisition reform and widening of the number of players.”
On the other hand, possible Trump picks like Stephens and Musk showcase the further entrenchment of a techno-patriot class in Washington politics, a class of tech elites apparently eager to bolster American military might in exchange for top-dollar government contracts.
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