strategy

The UK’s Place in the World: Strategic Industries, China, and Sovereignty

This article was originally published on 17th November 2021.

The Brexit-leading Conservative government wants to back up the talk of the referendum campaign. Now that the UK has Brexited there’s a practical need to set a plan of action and follow it. A lot of intellectual work was taken care of by just following whatever the EU position was.

Global Britain, sovereignty, trade deals, etc., OK. What’s the plan? Some of that’s answered implicitly. Elizabeth Truss as Secretary of State for International Trade was busy doing trade deals. AUKUS speaks to diplomatic, defence, and geographical focus. COP26 – the UK is supposed to make its name on climate stuff. OK.

This is what the Prime Minister says the plan is. Some key points: greater engagement in the world, securing the UK’s status as a “Science and Tech Superpower by 2030,” and a “tilt to the Indo-Pacific.” This is still getting ahead of itself.

A recent announcement about an old deal, about an investigation into the Nvidia takeover of Arm (originally a British microchip design company, taken over by the Japanese SoftBank) is a good enough starting point for something to think about.

The Cameron and May governments were very permissive of a lot of foreign investments and takeovers e.g. Chinese nuclear power projects, Huawei and 5G, invitation into the Northern Powerhouse. A lot of people are still angry at the sale of state assets under Right to Buy to British people. Why does the sale of much, much larger British companies/assets to foreign interests provoke almost nothing? What about foreign ownership in the housing market, for that matter?

At least the Johnson government has revisited some of these blunders. It also hasn’t put a complete stop to a lot else which contradicts its strategic review. For example, the Chinese takeover of British Steel, the Chinese takeover of the UK’s largest microchip producer, and the Chinese takeover of a major UK graphene producer. Sort yourselves out!

Strategic Industries and China

Start with making a proper assessment of the UK’s assets. What are you working with?

The Johnson government is promising to do a lot of things differently to the Cameron and May governments. When William the Conqueror took over as CEO, he did an inventory check, right down to the kinds of cheese in England.

Napoleon was notoriously obsessed with information.

In the autumn of 1811, the peak of Napoleon’s empire (has France been as well-governed since?) the emperor visited 40 cities in 22 days. This is despite losing three and a half days of travel to gales and floods. He would prevent mayors from giving great speeches and instead ask them questions. Population, death, revenues, forestry, tolls, municipal rates, conscription, civil and criminal lawsuits. Even about how many sentences passed by mayors were annulled by the Court of Cassation, and whether mayors had found means to provide suitable lodgings for rectors.

Would Mayor Johnson have fared well under Napoleon’s questioning? Prime Minister Johnson? Sure, why not? The information Napoleon was looking for gave him clues about the state of the empire, its operational effectiveness, happiness of its citizens, its direction, its capabilities, and what he could draw on. What are the revealing questions you could ask today?

A country’s strategic industries are certainly different from the 1800s.

The pandemic alone should’ve taught the UK that the entire west relies heavily on China for production of a lot of basic medicines. That’s concerning. It certainly relies on China for a lot of manufacturing of basic but important medical equipment too. Mark Zuckerberg’s Meta virtual/augmented reality news is also something to think about.

How comfortable is the UK with the idea of China controlling a lot of technology manufacturing, and easy access to intellectual secrets/innovations?

China is very good at controlling actual reality let alone a virtual one. The China-Taiwan tensions keep brewing. China’s been threatening Taiwan that its military won’t stand a chance if it invades. China is threatening that any outside interference will mean paying a price. Meanwhile, the world relies on Taiwan for semiconductors which go in everything. Xi promises that China and Taiwan will be reunited.

How is Hong Kong doing?

Strategic industries are no longer just about simpler things like coal and steel production for tanks and munitions. They’re also about the materials and methods of fourth and fifth generation warfare, like rare earth metals and this sort of thing.

It seems the Johnson government is at least a little but wiser to China.It’s hard to believe how cosy Cameron was prepared to get with Xi Jinping. They wanted to make Macclesfield (of all places!) the end point of the Belt and Road Initiative.

Have a look at this selfie. Cameron, soy-faced, submissively leaning in. Sergio Aguero’s having a great time, that’s fine. Xi looks like he’s holding his tongue. It’s not a meeting of peers. One has real power and the other doesn’t. This is a picture of the Emperor of China wondering how much longer he has to humour the Gap Yah guy. Is Cameron oblivious? If he is, he’s like that guy who thought he made friends with a wild Alaskan grizzly and got eaten. Does he understand what kind of animal he’s dealing with? Of course, Xi is a silly willy nilly old bear.

If Cameron wasn’t oblivious, was he just resigned to the idea of securing British comfort as a supplicant to China?

When did the west start calling Xi “President” and stop calling him “Chairman”? “Zhuxi” means “Chairman”. Xi is still “General Secretary” of the Chinese Communist Party, a title which originates with Stalin’s own role as General Secretary. That title has its own interesting history. Does “President” hide his shame? Why is the UK still sucking up to a communist by using a less embarrassing and false translation of his title?

Anyway, never mind China, what about everyone else?

Sovereignty

The UK doesn’t need to pursue absolute autarky, but it will have to think about what its strategic industries are and how much control it wants over them for how much independence.

Alignment with the US-led order has been convenient for the UK’s comfort. Countries which don’t submit to the US (e.g., Russia, Iran, North Korea, Iraq, Syria, Venezuela), find themselves poorer and squeezed. They haven’t helped themselves either. The obvious exception is China. Is it too big? Did Nixon miscalculate? The US was supposed to be a military power, China an economic one. That unspoken deal doesn’t seem to be holding. That calculation is probably changing too for everyone else as the US becomes relatively weaker and China relatively stronger.

For now, easy prosperity clearly hasn’t been everything to every country. Not everyone follows the first rule of the Satanic bible. All hail GDP, the one true measure of successful government! Sovereignty means answering to nobody else, and that’s valuable too. It has also meant that these countries develop and control a lot of their own technology. Russia and China in particular. Though it’s also a US protectorate, Israel is notable too for its self-reliance and the level of independence that affords it, regionally, at least.

Can the UK become a “Science and Tech Superpower” by 2030? 

For everything it would need to achieve that, how much does it need to learn? How much of the basics does it need to relearn? Outsourced manufacturing and international, mobile academia are not a stable starting point. Knowledge fades with the people who have it, who today can move and work from anywhere.

What ties these people to the UK? What stops them from working for someone else?

The UK’s place in the world will be affected by how much it can bring under its own control.

What’s the plan?

Does anyone have any confidence that there’s any one person in the government who properly understands 1) the UK’s own state of affairs, 2) how that sits internationally, 3) what the reasonable goals are, 4) how to work toward them, and 5) has the power to make it happen?

Until the UK has that it is getting ahead of itself in any discussion about what its place in the world should be.


Photo Credit.

Watch Out for The New Labour Playbook

Yes, Labour is still the party of identity fetishists, true-believer yet Dad’s Army-esque revolutionaries, end of times Gaia environmentalists, and public transport strike supporters, groomers, and much else, but so was New Labour. They just knew how to keep the lunacy contained, repackaged, and were desperate enough to try Blair.

Fortunately, Blair did a lot of damage to his own side, not just the country. Blair’s incrementalism didn’t manifest their objectives  quickly enough. They were willing to grumble and tolerate it until the Iraq War. From that point on, it became impossible to contain the lunacy; spiralling down through more and more left-wing figures, from Brown to Miliband and then to Corbyn. Consequently, they have tuckered themselves out.

The loss of monolithic public news and broadcasting will also make it much harder, New Labour’s ilk will try to come back. You can still see them. They haven’t gone anyway. They won’t just come from the party, they’ll come from all the people and organisations on their side. Blair himself is still knocking around. The advice comes regularly to ditch the overt progressive evangelism e.g. November last year, May this year.

There’s been a slow trickle of pieces which say things like “Labour need a big personality to take on the Tories”. They’re trying their best to manufacture this. Have you seen the attempts to make Wes Streeting out as if he’s interesting and not just another factory pipeline student union politician, in career background and mindset? Good grief. Progressives used to rob banks, fight guerrilla wars, and write their defiance in their own blood. Sure, threats should be taken seriously, and it’s unpleasant, but Wes, what are you doing sending limp tweets to old ladies?

Anyway, it’s good news! As it stands, the two go-getting types of the progressives are (at least, temporarily) inhibited: the energised, violent, “true believers”, are somewhat withered, and the “professional” sorts have a monumental amount of work to do. They are rebuilding, though, so keep an eye out.

If they can become credible on the following, they’ll be doing well: 1) Tough on Crime, 2) Pro Business, 3) Strong on Foreign Policy, 4) Strong on Defence, and 5) Solid on Our Public Services. It’s going to be difficult. A lot of Labour supporters don’t want to engage on those policy areas at all in the first place, let alone have workable answers to them.

The thing to watch out for is Blair’s two main tricks, which are closely related 1) talking out of both sides of their mouths and 2) presenting progressive solutions in their opponents’ terms.

Regarding the first trick, let’s use immigration as an example: one of the big progressive no-nos, a big right-wing concern, but which they really need to answer.

Just look at the headlines, which tell their own story. Blair admits he didn’t realise how many migrants would come to the UK after EU expansion. OK, but then he also says that immigration is good for the UK economy. Finally, he said that if you want to stay in the EU you have to curb immigration.

None of this is about lowering immigration based on principle or reflects right-wing concerns, or even the general popular reasons why people want it lowered. It’s about tactical necessity, in service of bigger picture goals – staying in the EU and reinforcing hegemony at home. Blair doesn’t admit he was wrong or that mass immigration has been damaging – he is talking out of both sides of his mouth! This helps him to try to flank his political opponents with positions which superficially appear to speak to right-wing concerns.

The reason he does this is very simple and not at all an original observation. In democratic politics it’s (sometimes) a viable strategy to go for (what you think is) the “centre ground”. Labour leaders who won – Ramsay MacDonald, Clement Atlee, Harold Wilson, and Tony Blair, all toned down the crazy in pursuit of the “sensible” and “moderate” centre ground.

Not that it seems to matter – progressives run all the main institutions and the nominal Conservative Party acquiesces and even adopts their agenda and aesthetic – but the key realisation of Blairism is that you must have power to do anything. Public support certainly helps reinforce the perception of complete hegemonic power and the justification for it.

Until Labour gets this by winning an election, the Conservative Party might just safely trundle along. God have mercy on you, Conservative Party. Govern! Or if you must insist on such dull imbecility, get out of the way. Go, all of you, retire to the House of Lords or wherever else you think gives you a veil of dignity, and whatever place can use the content, unaware, and immobile.

Anyway, if Labour doesn’t learn the lessons of Blairism, it risks being confined to 1) old style tax and spend and state power economics, 2) foreign policy which is anti-UK in one way or another, 3) marginal identity fetishism, and 4) screeching denunciation of anyone that dissents. This is because 1) misreads the lessons of the financial crisis, 2) misreads the proper responses to 9/11 and the Iraq War, 3) sees the progressives stuck in the tar-baby of the Culture War (which I am certain it will lose), and 4) just shows them to be unstable, and therefore as unfit to rule.

All of this would be a bit clapped out, but it would be safe and familiar for them, and do they even have the vision to see beyond? Reality and the general zeitgeist have moved on. Conservatives would do well to keep them stuck here.

There are ways out, and Labour seems to be doing a few of these things, though it’s hard to know if they really get it, half get it at someone else’s instruction, or if it’s accidental or coincidental. It’s also unclear how much any of the following will help them.

First, they seem to be hinting at a new progressive coalition i.e. Lib Dems, Greens, etc. tactical voting, selective standing of candidates, to avoid splitting the progressive vote. Will this work? Many use these parties as protest votes and you’d be surprised how many Conservative voters, for example, vote Green or Lib Dem at different elections, for all sorts of reasons, but who would never do it at a general election.

Second, watch out for Labour updating its policy agenda. Safe on this one so far. If they’re sensible it would stop being economically illiterate and suspicious of technology. It would also mean the progressives fully realising that corporations can be used and are willing to side with them if the conditions are right, no matter how temporary. The capitalists really will sell you the rope with which they’ll be hanged. It’s quite something!

Third, watch out for Labour re-discovering the mentality of government. The right needs to do this too, it must be said. The task is to amass power and to assume that (of course) it should be you governing. To do this the left will need some more self-discipline and less self-indulgence. The Labour Party’s sins are pride (how fitting!), envy, wrath, and gluttony. The Conservative Party’s sins are pride and sloth. This tactical swallowing of (some of) their pride doesn’t burden them to pursue policies people actually want. They’ll continue to insist that what voters want aligns with what the Labour Party wants, albeit overlaid with a veneer of sincerity and concern made possible with a more “moderate” leadership. New Labour was subtler still.

New Labour worked because people knew that Blair was prepared to discipline and channel the more insane parts of the Labour Party. Superficially, denial and discipline look very similar. It gave Labour the appearance of normality, reassured enough extra voters, and afforded them the cover of public acceptance to proceed with full-on nation-mutilating progressivism.

Watch out for the New Labour playbook. It will start with Labour controlling its incontinence. It’d be great if the Conservative Party got ahead of the problem by governing. Keep them busy responding to you, keep them too busy to get out of where they’re stuck.


Photo Credit.

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