My July Diplomat Essay: Seoul’s Ban of Uber is a Classic Example of Asian Mercantilism


So this is a blog about Asian security, but regular readers will know that I write a lot about political economy too. And nothing drives me up the wall so much as the endless NTB gimmickry so common in Asian to prevent free-trade outcomes that national elites and entrenched mega-corporations don’t like. If you live in Asia and want to know why everything is so outrageously expensive, or why you can’t get technologies/products your friends take for granted in the West, here it is: endless crony protection, tariff or otherwise, to block imports that are superior and/or bring price competition. If the US has had too much deregulation, Asia desperately, desperately needs it. Romney for president of Korea!

The case of Seoul City banning the car-sharing app Uber is a classic example of everything wrong with Asian mercantilism: xenophobia, competition-quashing, monopoly rent protection, reverse engineering someone else’s idea, shameless nationalist demagoguery of a successful foreign enterprise, hypocritical rejection of free-trade ideals by a country that runs a regular trade surplus, open violation of free-trade norms despite recently signing multiple FTAs, and so on.

So below is a reprint of my recent essay for the Diplomat on this disgrace.

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My Lowy Post on Japan’s Pointless, Self-Indulgent WTH? Review of the Kono Statement


This is a re-print of a post for the Lowy Institute on the recent Japanese review of the Kono statement on Imperial military sexual service during the war. (That’s Kono in the picture.)

What the point of the ‘review’ was, I can’t figure out. The GOJ ran the review, predictably found the answer Abe wanted – that Koreans pushed Japan into historical concessions in the 1993 debate – but then Abe said he won’t change the statement anyway.

Wait, what? Why run the review if it serves no purpose? What was the point? Just to prove to us all once again that Japanese conservatives can’t give-up their creepy fascination with the war? That the Japanese old guard still looks at Korea as ‘lucky’ to have been modernized by Japan? Why the hell run the Kono review if you aren’t going to change the statement? It was a total nationalist self-indulgence. Bleh. I like Abe some of the time, especially when he talks about China and economics; but when it comes to the war, he sound like David Irving. Yikes.

Here’s that essay:

“The Korea-Japan dispute over history is back, yet again. The Japanese government this week released a ‘review’ of the drafting of the ‘Kono Statement.’ That statement is the 1993 Japanese admission, by Chief Cabinet Secretary Yohei Kono, that the Imperial military during the Pacific War organized military brothels in which Korean women were often forced to serve. The Japanese euphemisms for this are ‘comfort women’ and ‘comfort stations’; in reality, this was enforced prostitution that inevitably included beatings and other abuse. As the Japanese empire expanded, the practice spread across Asia, including women in Japan’s southeast Asian holdings as well.

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My Diplomat on Essay on Xi’s Trip to Korea: SK as a Hole in the Pivot in Exchange for Help w/ NK


This is a re-post of an essay I wrote last week at the Diplomat. I guess South Korea-China relations is a hot topic, because I got a bunch of emails over this – note to grad students.

The quick version is that South Korea really needs China now to get any kind of movement on North Korea, so it kinda has to suck up to Xi. I am of the school that says that North Korea is sliding into an economic colony of China, regardless of how they bluster and blow off nukes. In fact, the reason Pyongyang probably has the nuclear and missile programs is not just to deter the US, but to prevent China’s economic domination from turning into political domination too. So Park will be practically begging Xi to rein in Pyongyang. She has to – which sucks, btw, and shows just how cynically China manipulates the human rights catastrophe that is North Korea to its own callous advantage. Awful.

But Park can offer to restrain/impede the US pivot/containment of China as a quid pro quo for North Korea help. China really needs South Korea in order to prevent the US pivot from becoming full-blown encirclement of China. Because South Korea is so virulently anti-Japanese, it is an important hole in the tightening containment line around China that runs from Japan through Southeast Asia to India. The Koreans don’t want to line up against China, and they really don’t want to line up with Japan. If China is smart, they’ll exploit that. So China is unlikely to really bully South Korea as it has in the South China Sea.

Here’s that essay:

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My Lowy Post on the Sewol Sinking, the Captain’s Trial, and the Long Overdue Focus on Corruption in Korea


This will be my last post on the sinking of the Sewol ferry, unless the trial reveals blockbuster new information. The essay below is the longer version of a piece originally printed here for the Lowy Institute.

I actually doubt the trial will tell us much that is new. We know why the ship foundered (covered below). The most important information that could come now is why the captain and crew abandoned ship so early. They had told the passengers to stay in place, so did they not realize that they were leaving hundreds of people to drown? Korean maritime law requires crew to help passengers. Did they not see the massive dereliction of duty in abandoning hundreds of people below decks on a sinking ship? Wow. That’s pretty d— obtuse. In fact, that is probably criminal.

At the very least, they might have just said ‘run for your lives’ on the speakers. Instead, the passengers dutifully followed orders – until it was too late. That is where so much of the anger comes from. Many of the drowned were healthy young teenagers, who easily might have escaped. Instead they died in place, because the captain told them to stay. This is why people are talking about the death penalty. What possible excuse is there for not just telling people to get out anyway they can? That would have required all of 5-10 seconds on the PA system. I don’t get that at all.

Here is that essay:

“On April 16 this year, the South Korean passenger ferry Sewol capsized off the southwest coast of Korea. The ferry carried 476 people; at the time of this writing almost 300 are confirmed dead, with several dozen still missing. The Sewol was en route from Incheon port on the Yellow Sea, south to Jeju Island in the Korea Strait. Jeju is a popular island vacation destination in Korea. Well over 300 of the passengers, and the majority of the fatalities, were high school students on vacation.

Overlapping Bureaucratic Failures Cause Disaster

The cause of the sinking is not yet fully known. Apparently around 8:45 am, the ship made a sharp starboard turn. Why is unclear; initial theories suggesting a struck reef, or swerving to avoid one, have proven wrong. The turn lead to a sharp list, worsened by poorly secured cargo that came loose, far too much cargo weight, and too little ballast. As a result, the ship was top-heavy and hard to steer. Some reports have suggested the previous crewmembers had noted the instability of the ship. Others have suggested that the cargo weight may have been almost four times the recommended limit. Hence much of the investigative focus has been on safety rules and if they were followed.

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My Lowy Essay on China Picking 3 Fights in 9 Months: Japan, Phils, Vietnam. WTH?


The essay below is a reprint of something I wrote for the Lowy Institute a few weeks ago (original here). I got into back-and-forth with Brad Glosserman and Hugh White over Chinese foreign policy intentions. I am still not entirely sold on the idea that China is a full-blown revisionist, like Putin, or worse, Wilhelmine Germany. There are other possible explanations.

The map to the left is the so-called “Nine Dash Line,” China’s preposterously capacious maritime claim in the South China Sea. I wonder if it’s even worth noting anymore that UNCLOS can’t be possibly be used to justify this. Everyone knows that now, right? The claim is just nationalism, pure and simple.

What’s really struck me though about China’s maritime claims is how Beijing has really ramped up the tension in just a few months. In the last 9 months, China has picked serious fights with Japan (over its ADIZ), the Philippines over Scarborough Shoal, and now Vietnam over that oil rig. That much bullying in such a short period of time, very obviously coincident with Xi Jinping’s ascension, pretty much tells the world that the new Chinese administration is becoming the regional bully we’ve all been fearing for 20 years. This strikes me as unbelievably foolish, as there is a very obvious anti-Chinese containment ring waiting in the wings. A lot of people in the US, Japan, and increasingly Southeast Asia would be happy to see this outcome. My strong sense is that US patience particularly is running out, and that ‘neo-containment’ is around the corner.

So this essay is a last ditch effort to try explain Chinese belligerence as an outcome of Chinese dysfunction. Let’s hope this is right, because if the hawks are right that arguments such as mine are just excuse-making for Chinese belligerence, then I guess we have to contain China. Scary stuff.

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My Newsweek Japan Cover story: The Sewol Sinking and the Modernization of Korea


Sewol Japan Cover

The following is a story I wrote for Newsweek Japan this week on the sinking of the ferry Sewol in Korea in May. Here is the Japanese version.

Sewol has a been a terrible national tragedy, and that callous, incompetent captain should almost certainly get life imprisonment for hundreds of cases of negligent homicide. But there was more than just that. A series of bureaucratic failures led to the sinking. Bad seamanship may be been the spark, but a lot of poor regulation and corruption laid the groundwork for the sinking to become a major catastrophe.

If Park is serious about cracking down on corruption post-Sewol, it could be a big deal. I am skeptical myself; she leads a traditionalist, not reformist, coalition, and she has not governed as a innovator. But the costs of corruption in Korea – its 46 score from Transparency International – are now clear. Let’s hope she really tries.

Here’s the full version of this argument:

“On April 16 this year, the South Korean passenger ferry Sewol capsized off the southwest coast of Korea. The ferry carried 476 people; at the time of this writing almost 250 are confirmed dead, with several dozen still missing. The Sewol was enoute from Incheon port on the Yellow Sea, south to Jeju Island in the Korea Strait.

The emergency response to the sinking was badly botched. The captain initially told all the passengers to stay in their rooms and not exit to the deck. Retrospectively, the captain has argued that the water was too cold to abandon ship. But later he and the crew were among the first to escape. It is not clear if the ‘abandon ship’ order was ever given, or if it was properly transmitted. Many of the bodies recovered were found in passenger rooms. President Park Geun Hye called the captain’s actions “akin to murder;” he and the entire crew have since been arrested. Worse, only two of the lifeboats on the ship activated properly, and the coast guard response was confused. The initial call for assistance went to far away Jeju; only later did local coast guard get an alert. In fact, one of the initial calls for help came from a student passenger calling a national emergency hotline.

My Newsweek Japan Story on the Sino-Vietnamese Clash in the South China: End of the Peaceful Rise?


Nwk J Vn China

Below is the English version of my essay for the current volume of Newsweek Japan. (Japanese version here.)

Regular readers will know that I have argued for awhile that we (the US) should not provoke China into unnecessary hostilities. I’ve thought for awhile that Hugh White’s idea of a concert in Asia is the most likely to insure peace. If the US insists on giving no ground, then a Sino-US conflict out of sheer misperception is likely. But accommodating China can’t be seen as an invitation to bully the neighborhood – just not so much as to cause a war with America. So it is a fine line to walk, and China certainly isn’t helping. In the last year, it has picked fights with Vietnam, Japan, and the Philippines. Like most people, I find this pretty scary, but also somewhat inexplicable. Increasingly, I think the ‘peaceful rise’ days are over (argued below), but this might also be external fallout of a new Chinese administration looking to prove itself to the PLA. I hope I am wrong…

“On May 2, China placed an oil rig inside Vietnam’s offshore exclusive economic zone. This deployment was accompanied by some 80 ships, include armed warships. Vietnam responded by sending out its coast guard. These ships were meet by ramming and water-cannon. This in turn sparked anti-Chinese rioting in Vietnam that has killed dozens and sent Chinese workers fleeing the country. In the last year, China has also tangled over islands in the South China Sea near the Philippines and with Japan over Senkaku.

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