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Given the dangers in Taiwan and the South China Sea, Presidents Biden and Xi will have to exercise extreme patience and prudence to prevent the ignition of a full-blown crisis next year.
This hasn’t exactly been a year of good news when it comes to our war-torn, beleaguered planet, but on November 15, U.S. President Joe Biden and Chinese President Xi Jinping took one small step back from the precipice. Until they talked in a mansion near San Francisco, it seemed as if their countries were locked in a downward spiral of taunts and provocations that might, many experts feared, result in a full-blown crisis, even a war—even, god save us all, the world’s first nuclear war. Thanks to that encounter, though, such dangers appear to have receded. Still, the looming question facing both countries is whether that retreat from disaster—what the Chinese are now calling the “San Francisco vision”—will last through 2024.
Prior to the summit, there seemed few discernible obstacles to some kind of trainwreck, whether a complete breakdown in relations, a disastrous trade war, or even a military clash over Taiwan or contested islands in the South China Sea. Beginning with last February’s Chinese balloon incident and continuing with a series of bitter trade disputes and recurring naval and air incidents over the summer and fall, events seemed to be leading with a certain grim inevitability toward some sort of catastrophe. After one such incident last spring, New York Times columnist Thomas Friedman warned that “the smallest misstep by either side could ignite a U.S.-China war that would make Ukraine look like a neighborhood dust-up.”
In recent months, top leaders in both Beijing and Washington were becoming ever more concerned that a major U.S.-China crisis—and certainly a war—would prove catastrophic for all involved. Even a major trade war, they understood, would create economic chaos on both sides of the Pacific. A complete breakdown in relations would undermine any efforts to come to grips with the climate crisis, prevent new pandemics, or disrupt illegal drug networks. And a war? Well, every authoritative nongovernmental simulation of a U.S.-China conflict has ended in staggering losses for both sides, as well as a significant possibility of nuclear escalation (and there’s no reason to assume that simulations conducted by the American and Chinese militaries have turned out any differently).
As Xi reportedly asked Biden, “Should [the U.S. and China] engage in mutually beneficial cooperation or antagonism and confrontation? This is a fundamental question on which disastrous mistakes must be avoided.”
As summer turned into fall, both sides were still searching for a mutually acceptable “offramp” from catastrophe. For months, top officials had been visiting each other’s capitals in a frantic effort to bring a growing sense of crisis under control. Secretary of State Antony Blinken traveled to Beijing in June (a trip rescheduled after he cancelled a February visit thanks to that balloon incident); Treasury Secretary Janet Yellen arrived in July; and Commerce Secretary Gina Raimondo in August. Similarly, Foreign Minister Wang Yi traveled to Washington in October. Their meetings, according toNew York Times reporters Vivian Wang and David Pierson, were arranged “in the hope of arresting the downward spiral” in relations and to pave the way for a Biden-Xi meeting that might truly ease tensions.
Not surprisingly, for both Biden and Xi, the primary objective of the San Francisco summit was to halt that downward spiral. As Xi reportedly asked Biden, “Should [the U.S. and China] engage in mutually beneficial cooperation or antagonism and confrontation? This is a fundamental question on which disastrous mistakes must be avoided.”
From all accounts, it appears that the two presidents did at least stop the slide toward confrontation. While acknowledging that competition would continue unabated, both sides agreed to “manage” their differences in a “responsible” manner and avoid conflict-inducing behavior. While the United States and China “are in competition,” Biden reportedly told Xi, “the world expects the United States and China to manage competition responsibly to prevent it from veering into conflict, confrontation, or a new Cold War.” Xi reportedly endorsed this precept, saying that China would strive to manage its differences with Washington in a peaceful fashion.
In this spirit, Biden and Xi took several modest steps to improve relations and prevent incidents that might result in unintended conflict, including a Chinese promise to cooperate with the U.S. in combating the trade in the narcotic drug fentanyl and the resumption of high-level military-to-military communications. In a notable first, the two also “affirmed the need to address the risks of advanced [artificial intelligence] systems and improve AI safety through U.S.-China government talks.” They also put their stamp of approval on a series of cooperative steps agreed to by their climate envoys John Kerry and Xie Zhenhua to mutually combat climate change.
Still, neither president agreed to any fundamental alterations in policy that might have truly shifted bilateral relations in a more cooperative direction. In fact, on the most crucial issues dividing the two countries—Taiwan, trade, and technology transfers—they made no progress. As Xue Gong, a China scholar at the Carnegie Endowment for International Peace, put it, whatever the two presidents did accomplish, “the Biden-Xi meeting will not change the direction of U.S.-China relations away from strategic competition.”
With that still the defining constant in relations and both leaders under immense pressure from domestic constituencies—the military, ultra-nationalist political factions, and assorted industry groups—to hang tough on key bilateral issues, don’t be surprised if the slide towards crisis and confrontation regains momentum in 2024.
Assuming U.S. and Chinese leaders remain committed to a nonconfrontational stance, they will face powerful forces driving them ever closer to the abyss, including both seemingly intractable issues that divide their countries and deeply entrenched domestic interests intent on provoking a confrontation.
Although several highly contentious issues have the potential to ignite a crisis in 2024, the two with the greatest potential to provoke disaster are Taiwan and territorial disputes in the South China Sea.
A self-governing island that increasingly seeks to pursue its own destiny, Taiwan is viewed by Chinese officials as a renegade province that should rightfully fall under Beijing’s control. When the U.S. established formal diplomatic relations with the People’s Republic of China (PRC) in 1979, it acknowledged the Chinese position “that there is one China and Taiwan is part of China.” That “one China” principle has remained Washington’s official policy ever since, but is now under increasing pressure as ever more Taiwanese seek to abandon their ties with the PRC and establish a purely sovereign state—a step that Chinese leaders have repeatedly warned could result in a military response. Many American officials believe that Beijing would indeed launch an invasion of the island should the Taiwanese declare their independence and that, in turn, could easily result in U.S. military intervention and a full-scale war.
Joe Biden could face a major military crisis remarkably early in 2024.
For now, the Biden administration’s response to a possible Chinese invasion is governed by a principle of “strategic ambiguity” under which military intervention is implied but not guaranteed. According to the Taiwan Relations Act of 1979, any attempt by China to seize Taiwan by military means will be considered a matter “of grave concern to the United States,” but not one automatically requiring a military response. In recent years, however, increasing numbers of prominent Washington politicians have called for the replacement of “strategic ambiguity” with a doctrine of “strategic clarity,” which would include an unequivocal pledge to defend Taiwan in case of an invasion. President Biden has lent credence to this stance by repeatedly claiming that it is U.S. policy (it isn’t), obliging his aides to eternally walk back his words.
Of course, the question of how China and the U.S. would respond to a Taiwanese declaration of independence has yet to be put to the test. The island’s current leadership, drawn from the pro-independence Democratic Progressive Party (DPP), has so far accepted that, given the way Taiwan is slowly achieving de facto independence through diplomatic outreach and economic prowess, there’s no need to rush a formal declaration. But presidential elections in Taiwan this coming January and the possible emergence of another DPP-dominated administration could, some believe, trigger just such a move—or, in anticipation of it, a Chinese invasion.
Should the DPP candidate William Lai win on January 13, the Biden administration might come under enormous pressure from Republicans—and many Democrats—to accelerate the already rapid pace of arms deliveries to the island. That would, of course, be viewed by Beijing as tacit American support for an accelerated drive toward independence and (presumably) increase its inclination to invade. In other words, Joe Biden could face a major military crisis remarkably early in 2024.
The South China Sea dispute could produce a similar crisis in short order. That fracas stems from the fact that Beijing has declared sovereignty over nearly the entire South China Sea—an extension of the western Pacific bounded by China, Taiwan, the Philippines, Borneo, and Vietnam—along with the islands found within it. Such claims have been challenged by that sea’s other bordering states, which argue that, under international law (notably the U.N. Convention on the Law of the Sea) they are entitled to sovereignty over the islands that fall within their individual “exclusive economic zones” (EEZs). In 2016, the Permanent Court of Arbitration in the Hague ruled on a petition from the Philippines that China’s claims were invalid and that the Philippines and its neighbors were indeed entitled to control their respective EEZs. China promptly both protested the ruling and announced its intention to disregard it.
Chinese control over those islands and their surrounding waters would have significant economic and strategic implications. To begin with, it extends China’s defense perimeter several hundred miles from its coastline, complicating any future U.S. plans to attack the mainland while making a PRC assault on U.S. and allied bases in the region far easier. The South China Sea also harbors major fisheries, an important source of sustenance for China and its neighbors, as well as vast reserves of oil and natural gas coveted by all the states in the region. China has consistently sought to monopolize those resources.
To facilitate its control over the area, the PRC has established military installations on many of the islands, while using its coast guard and maritime militias to drive off the fishing boats and oil-drilling vessels of other states, even ramming some of those ships. On October 22, for example, a large Chinese coast guard vessel bumped into a smaller Philippine one seeking to reinforce a small outpost of Philippines Marines located on the Second Thomas Shoal, an islet claimed by both countries.
In both the U.S. and China, vast military-industrial operations have blossomed, fed by mammoth government disbursements intended to bolster their ability to defeat the other’s military in all-out, high-tech combat.
In reaction to such moves, officials in Washington have repeatedly asserted that the U.S. will assist allies affected by Chinese “bullying.” As Secretary of Defense Lloyd Austin declared in July at a meeting with Australian officials in Brisbane, “We’ll continue to support our allies and partners as they defend themselves from bullying behavior.” Three months later, following that clash at the Second Thomas Shoal, Washington reaffirmed its obligation to defend the Philippines under the 1951 Mutual Defense Treaty, should Filipino forces, ships, or aircraft come under armed attack, including “those of its coast guard—anywhere in the South China Sea.”
In other words, a future clash between Chinese vessels and those of one of Washington’s treaty partners or close allies could easily escalate into a major confrontation. Just what form that might take or where it might lead is, of course, impossible to say. But it’s worth noting that, in recent South China Sea exercises, the U.S. Indo-Pacific Command has conducted large-scale combat drills, involving multiple aircraft carriers, cruisers, destroyers, and submarines. Any U.S. military response on such a scale would undoubtedly prompt a comparable Chinese reaction, setting in motion a potential spiral of escalation. Assuming that China continues its policy of harassing the fishing and exploration activities of its southern neighbors, a clash of this sort could occur at almost any time.
Given the dangers in Taiwan and the South China Sea, Presidents Biden and Xi will have to exercise extreme patience and prudence to prevent the ignition of a full-blown crisis in 2024. Hopefully, the understanding they developed in San Francisco, along with new crisis-management tools like enhanced military-to-military communications, will help them manage any problems that do arise. In doing so, however, they will have to overcome both the escalatory dynamics built into those disputes and bellicose domestic pressures from powerful political and industrial factions that view intense military competition with the other side (if not necessarily war) as attractive and necessary.
In both the U.S. and China, vast military-industrial operations have blossomed, fed by mammoth government disbursements intended to bolster their ability to defeat the other’s military in all-out, high-tech combat. In this hothouse environment, military bureaucracies and arms-makers on each side have come to assume that perpetuating an environment of mutual suspicion and hostility could prove advantageous, leaving key politicians ever more obliged to shower them with money and power. On December 13 and 14, for example, the U.S. Senate and House, seemingly incapable of passing anything else, approved a record defense policy bill that authorized $886 billion in military spending in 2024 ($28 billion more than in 2023), with most of the increase earmarked for ships, planes, and missiles intended primarily for a possible future war with China. American military leaders—and politicians representing districts with a high concentration of defense contractors—are sure to request even greater spending increases in future years to overcome “the China threat.”
A similar dynamic fuels the funding efforts of top Chinese military-industrial officials, who no doubt are citing evidence of Washington’s drive to overpower China to demand a reciprocal buildup, including (all too ominously) of their country’s nuclear forces. In addition, in both countries, various political and media figures continue to benefit by harping on the “China threat” or the “America threat,” adding to the pressure on top officials to take strong action in response to any perceived provocation by the other side.
That being the case, Presidents Biden and Xi are likely to face a series of demanding challenges in 2024 from the seemingly intractable disputes between their two nations. Under the best of circumstances, perhaps they’ll be able to avoid a major blow-up, while making progress on less contentious issues like climate change and drug trafficking. To do so, however, they’ll have to resist powerful forces of entrenched bellicosity. If they can’t, the fierce wars in Ukraine and Gaza in 2023 could end up looking like relatively minor events as the two great powers face off against each other in a conflict that could all too literally take this planet to hell and back.
Another set of natural resources, arguably more crucial to the economic future of the global superpowers, could be adding to the growing territorial furor over who possesses the goods in that body of water.
It’s an ocean of conflict and ecological decline. Despite its vast size—1.3 million square miles—the South China Sea has become a microcosm of the geopolitical tensions between East and West, where territorial struggles over abundant natural resources may one day lead to environmental collapse.
While the threat of a devastating military conflict between China and the United States in the region still looms, the South China Sea has already experienced irreparable damage. Decades of over-harvesting have, for instance, had a disastrous impact on that sea’s once-flourishing fish. The tuna, mackerel, and shark populations have fallen to 50% of their 1960s levels. Biologically critical coral reef atolls, struggling to survive rising ocean temperatures, are also being buried under sand and silt as the Chinese military lays claim to and builds on the disputed Spratly Islands, an archipelago of 14 small isles and 113 reefs in that sea. Taiwan, the Philippines, Malaysia, and Vietnam have also laid claim to many of the same islands.
Perhaps no one should be surprised since oil and gas deposits are plentiful in the South China Sea. The U.S. government estimates that 11 billion barrels of oil and 190 trillion cubic feet of natural gas are ready to be extracted from its floor. Such fossil-fuel reserves, some believe, are helping to—yes, how can anyone not use the word?—fuel the turmoil increasingly engulfing the region.
Like AUKUS itself, those war games were intended to send a message: China beware. The resources of the South China Sea aren’t for the taking.
This year, the Washington-based Asia Maritime Transparency Initiative reported that several countries are pursuing new oil and gas development projects in those contested waters, which, the organization notes, could become a “flashpoint in the disputes.” Between 2018 and 2021, there were numerous standoffs between China, Vietnam, and other Southeast Asian countries over drilling operations there, and fears are building that even more severe confrontations lie ahead.
The United States, of course, lays the blame for all of this on China, claiming its aggressive island-reclamation projects violate international law and “militarize an already tense and contested area.” Yet the U.S. is also playing a significant part in raising tensions in the region by agreeing to supply Australia with nuclear-powered submarines as part of its Australia-United Kingdom-United States (AUKUS) security pact. The goal, no doubt, is to restrain Chinese activity with the threat of Western military might. “Next steps could include basing U.S. nuclear-capable platforms—such as strategic bombers—in Australia as well as cooperation on hypersonic missiles, cyber operations, [and] quantum computing,” writes Derek Grossman for the Rand Corporation, the “paramilitary academy” of American defense policy. (And, in fact, the U.S. is evidently preparing to deploy the first nuclear-capable B-52s to that country soon.)
On August 25, in partnership with Australia and the Philippines (where Washington is getting ready to occupy bases ever closer to China), U.S. Marines practiced retaking an “island” supposedly captured by hostile forces. In that exercise,1,760 Australian and Filipino soldiers and 120 U.S. Marines conducted mock beach landings and air assault maneuvers in Rizal, a small town in western Palawan province in the Philippines, which does indeed face the South China Sea.
“A whole lot of damage can be done to Australia before any potential adversary sets foot on our shores and maintaining the rules-based order in Southeast Asia, maintaining the collective security of Southeast Asia, is fundamental to maintaining the national security of our country,” said Australian Defense Minister Richard Marles of the joint military drills.
Like AUKUS itself, those war games were intended to send a message: China beware. The resources of the South China Sea aren’t for the taking.
But here’s a question to consider: Is all this international saber-rattling only about fossil fuels? Trade routes through the area are also vital to the Chinese economy, while its fisheries account for 15% of the reported global wild fish catch. Yet neither its well-used shipping routes, necessary as they are to the flow of goods globally, nor those fisheries fully explain the ever-heightening controversy over the region. Having exploited that sea’s wild fisheries for decades, China is now becoming a global leader in fish farming, which already accounts for 72% of the country’s domestic fish production, It’s also increasingly true that fossil fuels have a distinct shelf life. But is it possible that another set of natural resources, arguably more crucial to the economic future of the global superpowers, could be adding to the growing territorial furor over who possesses the goods in the South China Sea?
You could call it a race to the bottom, with China leading the charge. In December 2022, that country unveiled its Ocean Drilling Ship, a deep sea mining (DSM) vessel the size of a battle cruiser set to be operational by 2024. Instead of weaponry, however, the ship is equipped with advanced excavation equipment capable of drilling at depths of 32,000 feet. On land, the Chinese already hold a virtual monopoly on metals considered vital to “green” energy development, including cobalt, copper, and lithium. Currently, the Chinese control 60% of the world’s supply of such “green” metals and are now eyeing the abundant resources that exist beneath the ocean’s floor as well. By some estimates, that seabed may contain 1,000 times more rare earth elements than those below dry ground.
It’s difficult to believe that devastating the ocean’s depths in search of minerals for electric batteries and other technologies could offer a sustainable way to fend off climate change. In the process, after all, such undersea mining is likely to have a catastrophic impact, including destroying biodiversity. Right now, it’s impossible to gauge just what sort of damage will be inflicted by such operations, since deep-sea mining is exempt from environmental impact assessments. (How convenient for those who will argue about how crucial they will be to producing a greener, more sustainable future.)
The U.N.’s High Seas Treaty, ratified in March 2023, failed to include environmental rules regulating such practices after China blocked any discussion of a possible moratorium on seabed harvesting. As of 2022, China holds five exploration contracts issued by the U.N.’s International Seabed Authority (ISA), allowing the Chinese to conduct tests and sample contents on the ocean floor. While that U.N. body can divvy up such contracts, they have no power to regulate the industry itself, nor the personnel to do so. This has scientists worried that unfettered deep-sea mining could cause irreparable damage, including killing sea creatures and destroying delicate habitats.
“We’ve only scratched the surface of understanding the deep ocean,” said Dr. Andrew Chin, a scientific adviser to the Australian-based Save Our Seas Foundation.
“Science is just starting to appreciate that the deep sea is not an empty void but is brimming with wonderful and unique life forms. Deep sea ecosystems form an interconnected realm with mid and surface waters through the movement of species, energy flows, and currents. Not only will the nodule mining result in the loss of these species and damage deep sea beds for thousands of years, it will potentially result in negative consequences for the rest of the ocean and the people who depend on its health.”
Others are concerned that the ISA, even if it had the authority to regulate the budding industry, wouldn’t do it all that well. “Not only does the ISA favor the interests of mining companies over the advice of scientists, but its processes for EIA [environmental impact assessment] approvals are questionable,” says Dr. Helen Rosenbaum of the Deep-Sea Mining Campaign.
This brings us back to the South China Sea, which, according to Chinese researchers, holds large reserves of “strategically important” precious metals. China has already been fervently scouting for deposits of the polymetallic nodules that hold a number of metals used in virtually all green technologies.
“Learning the distribution of polymetallic nodules will help us to choose a site for experimenting with collection, which is one of the main goals of the mission,” said Wu Changbin, general commander of the Jiaolong, a submarine that discovered just such polymetallic nodules in the South China Sea.
Unsurprisingly, the U.S., lagging behind China in acquiring minerals for green technologies, has been keeping close tabs on the competition. In 2017, a Navy P3-Orion spy plane conducted repeated flyovers of a Chinese research vessel near the island of Guam. Scientists on the ship were allegedly mapping the area and planting monitoring devices for future deep-sea exploration.
The story is much the same in the South China Sea, where the U.S. has conducted numerous surveillance operations to follow Chinese activities there. In May, an Air Force RC-135 surveillance plane was intercepted by a Chinese J-16 jet fighter, causing an international uproar. Without providing any justification for why a U.S. spy plane was there in the first place, Secretary of State Anthony Blinken quickly pointed the finger at China’s recklessness. “[The] Chinese pilot took dangerous action in approaching the plane very, very closely,” claimed Blinken. “There have been a series of these actions directed not just at us, but in other countries in recent months.”
While these quarrels no doubt have much to do with control over fossil fuels, oil, and natural gas aren’t the only resources in the region that are vital to the forthcoming exploits of both countries.
Across the globe, oil and coal are increasingly becoming things of the past. A report released in June 2023 by the International Energy Agency (IEA) suggested that renewables were “set to soar by 107 gigawatts (GW), the largest absolute increase ever, to more than 440 GW in 2023.” The natural resources supplying this global surge in renewables, like copper and lithium, are becoming the popular new version of fossil fuels. Markets are favoring the phase-out of climate-warming energy sources, which is why China and the United States are forging ahead with mining critical minerals for renewables—not because they care about the future of the planet but because green energy is becoming profitable.
China’s foray into the global capitalist system and the ruins left in its wake are easy enough to track. In the late 1970s, China’s leaders liberalized the country’s markets and opened the floodgates on foreign investment, making it—at an average clip of 9.5% per year—one of the fastest-growing economies ever. The World Bank described China’s financial boom as “the fastest sustained expansion by a major economy in history.” It’s no surprise, then, that energy consumption exploded along with its economic gains.
Like many of its global competitors, China’s economy still relies heavily on carbon-intensive fossil fuels, especially coal, but an ever-growing portion of its energy portfolio is made up of renewable energy. Steel-making and vehicle manufacturing now account for 66% of China’s energy use, transportation 9%, and residential use 13%. And while coal is still fueling that economic engine in a major way—China uses more coal than the rest of the world combined—the country has also become a (if not the) world leader in renewables, investing an estimated $545 billion in new technologies in 2022 alone.
The World Economic Forum estimates that three billion tons of metals and fine minerals will be needed for the world’s energy transition if we are to reach zero carbon dioxide emissions by 2050.
While China uses more energy than any other country, Americans consume significantly more than two times that of the Chinese on an individual basis (73,677 kilowatts versus 28,072 as of 2023). And while the U.S. uses more energy per person, it also gets less of its energy from renewables.
As of 2022, the U.S. government estimated that only 13.1% of the country’s primary energy was produced through renewable sources. Even so, the energy transition in the U.S. is happening and, while natural gas has largely replaced coal, renewables are making considerable inroads. In fact, the Inflation Reduction Act, signed into law by President Joe Biden in early 2022, earmarked $430 billion in government investment and tax credits for green-energy development.
The World Economic Forum estimates that three billion tons of metals and fine minerals will be needed for the world’s energy transition if we are to reach zero carbon dioxide emissions by 2050—and that number will undoubtedly only grow in the decades ahead. Of course, investors love to cash in and the forthcoming explosion in the mining of green metals on land and in the world’s waters will surely be a windfall for Wall Street and its equivalents globally. BloombergNEF (BNEF), which covers global markets, claims that the demand for key metals and minerals for the energy transition will grow at least fivefold over the next 30 years, which represents something like a $10 trillion opportunity. At stake is the mining of critical minerals like lithium and traditional metals like copper, which will be used in power generation, electrical grids, energy storage, and transportation.
“[T]he energy transition could lead to a super-cycle for the metals and mining industry,” says Yuchen Huo, a mining analyst for BNEF. “This cycle will be driven by massive expansions in clean energy technologies, which would spur demand growth for both critical minerals and traditional metals.”
It should be no surprise, then, that countries like China and the United States are likely to battle (perhaps all too literally) over access to the finite natural resources vital to the world’s energy transition. Capitalism depends on it. From Africa to the South China Sea, nations are scouring the globe for new, profitable energy ventures. In the Pacific Ocean, which covers 30% of the Earth’s surface, the hunt for polymetallic nodules is prompting island governments to open their waters to excavation in a significant way. The Cook Islands has typically issued licenses to explore its nearby ocean’s depths. Kiribati, Nauru, and Tonga have funded missions to investigate deposits in the Clarion Clipperton Zone, a 1.7 million square mile area stretching between the island of Kiribati and Mexico.
“This [deep sea] exploration frenzy is occurring in the absence of regulatory regimes or conservation areas to protect the unique and little-known ecosystems of the deep sea,” contends Dr. Rosenbaum of the Deep-Sea Mining Campaign. “The health and environmental impacts of deep-sea mining will be widespread… The sea is a dynamic and interconnected environment. The impacts of even a single mine will not be contained to the deep sea.”
According to those who want to mine our way out of the climate crisis, such highly sought-after metals and minerals will remain crucial to weaning the world off dirty fossil fuels. Yet, count on one thing: They will come at a grave cost—not only geopolitically but environmentally, too—and perhaps nowhere will such impacts be felt more devastatingly than in the world’s fragile seas, including the South China Sea where major armed powers are already facing off in an unnerving fashion, with the toll on both those waters and the rest of us still to be discovered.