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Home , Huang Xiangmo, Julie Bishop, Sam Dastyari, Steven Ciobo

NIDS Commentary No. 82

China- relations and the “Sharp Power” Concept Global Security Division, Policy Studies Department Researcher Yusuke Ishihara No. 82 August 1, 2018 NIDS Commentary

*This is a direct translation of an article in the intellectual community of Australia the originally written in Japanese. series of activities (deemed to be) by the alleged Chinese government have been Preface conceptualized as an example of “sharp In June 2018 the power”. “Sharp power” is a new notion that passed legislation intend to prevent and was put forth by Christopher Walker and crack down on unwarranted interference in Jessica Ludwig of the National Endowment domestic politics and society by foreign for Democracy and conceptually elucidated powers (hereinafter referred to as the by Joseph S. Nye Jr. of Harvard University. It Foreign Government Interference means the circumstances in which the Countermeasures Act). In the process of authoritarian countries of and Russia enacting it, the cabinet ministers of the use the openness of democratic countries to conservative government led by expand their own influence = power, and the Prime Minister and senior circumstances in which the former expand party members have suggested with unusual their power with respect to the latter based explicitness that one of the key objectives of on the “asymmetry” that exists between the bills was to strengthen countermeasures authoritarian countries and democratic against interference by China in Australian countries in their domestic systems and politics and society. Moreover, in parallel with values regarding freedom of speech and the the debate on the bill, discussions also press. began to be widely held in This paper investigates in detail the media and academic societies, sometimes in emergent discussions and the related a form substantially backed up by evidence phenomena about the interference activities and sometimes in a form with a lot of of China reported in recent years in Australia, speculation mixed in, about the situation in while critically examining the analytical which people and organizations under the usefulness possessed by the “sharp power” supposed influence of the Chinese concept. In what follows, it analyzes two government are engaging in a variety of specific examples for these purposes, (1) political activities inside Australia. trends in recent years in the Australian Against the background of these kinds of domestic political circle and (2) discussions perceptions of the problem, in recent years about the so-called China’s influence in

1 NIDS Commentary No. 82 higher education centered on universities, Times) claiming that activities to enhance the and identify the points of contention legitimate influence of the Chinese people in regarding the Sharp Power concept. Australian politics should be strengthened, etc., some media took it as he had publicly Controversy over China in the Australian admitted that he was engaged in a variety of political world activities under the influence of the Chinese The direct factor behind the enactment of government.) Moreover, at about the same the aforementioned Foreign Interference Act time it was revealed that Senator Dastyari in June 2018 was the so-called Chinese had some of the travel expenses necessary connections controversy surrounding for his own political activities provided by the opposition party Senator , who Top Education Institute, allegedly a was a senior member of the Australian Labor China-connected organization in Australia. Party (and resigned from Parliament in As these Chinese connections surrounding January 2018). The beginning of the affair Senator Dastyari became the subject of was the discovery in 2016 that Senator controversy, the question of whether China Dastyari had been invited twice in the past to was interfering in Australia’s domestic China by an organization with links to Mr. politics in a variety of ways emerged as a [name in Chinese theme that widely came to the attention of characters: 黄 向 墨 ], a Chinese the general public. However, as of 2016 the businessperson and the President of the curtain had closed on the affair in the form of Australian Council for the Promotion of the resignation of Senator Dastyari from all Peaceful Reunification of China (ACPPRC). important posts in the , The accusation was that Dastyari had and discussions pertaining to this matter in neglected to report the fact that he had his Parliament and the media seemed to wind travel expenses covered by foreign figures. down for a time. Australian new media reported that the However, in the following year, 2017, ACPPRC to which Mr. Huang belongs is suspicions about the Chinese connections of under the direction of the United Front Work Senator Dastyari suddenly developed into Department of the the focus of the political situation due to the (CCP) Central Committee and is involved in discovery of the following two scandals. The management and organization of the first was his controversial statement related Chinese community in Australia, and to the South China Sea. When it was critically pointed out the fact that Senator revealed that Senator Dastyari made a Dastyari received financial benefits from the statement regarding the South China Sea to person with a deep relationship with the the effect that it is “a matter for China and Chinese government. (Furthermore, due to Australia should not get involved” at a the fact that Mr. Huang himself submitted an gathering of Chinese ethnic supporters when opinion piece to the international/English he appeared on the podium together with the edition of Huánqiú Shíbào (the Global aforementioned Mr. Huang, there was

2 NIDS Commentary No. 82 growing criticism in the Parliament of came to surface in Australia’s political circle Australia that his foreign policy positions and media regarding Chinese state activities were twisted by his financial connections inside Australia. As the major media stepped with the Chinese. The official party line the up their reporting, it became apparent that Australian Labor Party on the South China actually not only former Member of Sea tensions, to which Senator Dastyari Parliament Dastyari but also both the ruling belonged, is that “freedom of navigation” is and opposition parties were widely receiving endangered by China’s activities such as funds in a variety of forms from, and had land reclamation, etc. in the South China personal relationships with, organizations Sea so it is asserting the policy that the and individuals reported to have links to the Australian military should implement its own Chinese government, including Mr. Huang. “freedom of navigation” operations. When it was discovered that the local Therefore, it was officially acknowledged that Western Australian branch of , the aforementioned statement by Senator headed by , a leading politician Dastyari deviated from the party line. in the governing conservative coalition Subsequently, when the second scandal government who was serving as the foreign came to light, in which Senator Dastyari minister, was receiving sizable donations communicated a warning to Mr. Huang to the from Chinese-Australian businessperson Mr. effect that you should be careful because it Chau Chak Wing, the controversy of is possible that your phone is being tapped Chinese connections changed into a political by the government, criticism developed in issue that transcended the boundary the political circles and the media that he between the governing and opposition had divulged information regarding the parties. It was reported in the media that at intelligence activities of the government to a the time this matter came to light Mr. Chau foreign national while being in the position of was already an active subject of an being a Member of Parliament. These investigation by the United States Federal events gave rise to suspicions that a leading Bureau of Investigation (FBI) based on the Member of Parliament who had continuously suspicion that he had provided bribes to the received the provision of funds from President of the United Nations General organizations and people indicated to be Assembly, but subsequently the fact that he under the influence of the Chinese was actually the subject of an investigation government may have compromised his was virtually confirmed from statements of policy positions and activities.. Senator governing party Members of Parliament and Dastyari took responsibility for the series of Prime Minister Turnbull. Furthermore, it was political scandals and resigned as a Member revealed that , the leader of the of Parliament in January 2018. Australian Labor Party, had also had contact Triggered by this Chinese connections with Mr. Huang multiple times, including controversy surrounding former Member of visiting his home and having dinner with him, Parliament Dastyari, a variety of issues in the same way as former Member of 3

NIDS Commentary No. 82

Parliament Dastyari. The fact that the dinner (example: receipt of sensitive information created an opportunity for political party from political parties has been made illegal), donations by the developer company Yuhu (3) coordination and cooperation between Group where Mr. Huang serves as an ministries and agencies facilitated by the executive has been discovered, so a Minister for Home Affairs and the situation arose in which even suspicions Department of Home Affairs (the could emerge about the Chinese establishment of which was decided in connections of Member of Parliament another bill that had already been submitted), Shorten, who is in a position where he could and (4) prohibition of political party donations become Australian Prime Minister using funds linked to foreign governments depending on the results of the next election. and regulations on the provision of funds for However, the donations to the governing political acts. Of these items, (2) has party branch and the dinner of Member of attracted the criticism that it could restrict the Parliament Shorten do not immediately reporting activities of journalists inside constitute illegal actions; furthermore, no Parliament, and outside Parliament as well evidence has been found to suggest that the Amnesty and Human Rights Watch these donations had a large influence and organizations have pointed out that there are slanted the political assertions of the related risks from the perspective of protecting Members of Parliament. In that sense, these human rights. In this context, the governing issues and the series of scandals conservative coalition and the largest surrounding former Member of Parliament opposition party, the Australian Labor Party, Dastyari are handled with a clear distinction agree to multiple amendments to this bill, drawn between them in the discussions in agreeing to reduce several of the penalties the media and Parliament. and incorporate additional content to protect As the series of scandals surrounding journalists. We can conclude that this Member of Parliament Dastyari and the problem specifically presented the fact that a Chinese connections controversy that tension exists between policy to regulate the spread to the political world overall heated activities of foreign governments and policy up, the Turnbull conservative coalition to protect the political values of Australia. government submitted the Foreign Furthermore, regarding the above (4), Government Interference Countermeasures opinion pieces were submitted expressing Bill and this bill was passed in June 2018. surprise and dissatisfaction at the fact that The main content of the bill is made up of the such actions had not been illegal in the first following items: (1) the obligation to register place. When finally submitting the bill with lobbying activities for a foreign government the above purposes, the governing (this also extends to commercial lobbyists conservative coalition led by Prime Minister and former ministers), (2) expansion and Turnbull condemned Member of Parliament substantiation of the definition of criminal Dastyari for receiving funds from people acts and introduction of tougher penalties linked to the Chinese government and

4 NIDS Commentary No. 82 appealed to the need for the bill again while Parliament Dastyari, the opposition party, the sometimes mentioning China. Australian Labor Party, constantly took the The Chinese government reacted against position of recognizing the necessity of the the criticism and mention of China Foreign Government Interference surrounding the said bill. The Chinese Countermeasures Act in its broad outlines, ambassador to Australia and the Chinese because it wanted to demonstrate that it had Foreign Ministry Spokesperson one after clear hands in the sense that it was not another expressed strong dissatisfaction under the political influence of the Chinese with the Australian government and media in government. Given this context, public forums, and the Chinese connections China-Australia political relations controversy developed into a bilateral deteriorated further. In May 2018 at the diplomatic issue between China and China-Australia Foreign Ministers’ Meeting Australia. In response to the criticism of the held on the sidelines of the Meeting of Chinese government, Prime Minister Foreign Affairs Ministers in Buenos Aires, Turnbull used the sentence “the Australian Minister of Foreign Affairs Wang Yi told people stand up” recalling the famous Minister for Foreign Affairs Julie Bishop that statement made by Mao Zedong in 1949 in China never interferes with the internal Tiananmen Square, emphasized that China politics of other countries and presented the would also “respect” his own strong stance criticism that Australia should stop viewing of promoting this bill, and did not back away China with “colored glasses.” Furthermore, at all from his public position recognizing that Foreign Minister Wang Yi went out of his way concerns regarding interference by China in to emphasize that the meeting was not an Australia’s domestic politics were in the official bilateral foreign minister-level background of submission of the said bill. strategic dialogue but nothing more than an Since this issue had already become an exchange of views held in response to a important point of publicdispute, the Turnbull request from Australia. Moreover, Trade administration had little political room to Minister , who visited China the relax its stance. Furthermore, the ruling same month, was unable to hold a conservative coalition was continuing to minister-level meeting on trade despite a score below the largest opposition party, the proposal from the Australian side, and he Australian Labor Party, in a range of opinion ended up experiencing the unusual situation polls, so it has been pointed out in some of going back to Australia without any quarters that the debate surrounding the high-level political exchanges. (Furthermore, said bill became a political opportunity to delays in the import procedures for develop criticism of the Australian Labor Australia-made wine in China were reported Party keeping in mind the general election one after another by industry organizations, which will be held by May 2019. Similarly, and it has been pointed out that China’s taking into account the loss of favor with the dissatisfaction regarding the bill is behind public due to the resignation of Member of this.) At the time of writing this paper, it is still 5

NIDS Commentary No. 82 uncertain whether China-Australia relations freedom and freedom of speech on campus. will deteriorate still further or will be improved. There were media reports that in September Specific observation points such as whether 2017, when a certain lecturer at the negotiations for the revision of the University of Newcastle used expressions in China-Australia bilateral FTA are a class that made Taiwan and commenced, whether an official sound like independent countries, Chinese China-Australia foreign minister-level international students responded to this by strategic dialogue is held, and whether strongly objecting and asking the lecturer to Prime Minister Turnbull realizes a visit to make a correction. Furthermore, discussions China are attracting attention as indicators regarding this matter became widely known for forecasting what will happen going beyond the campus because a video in forward. which one of the said students criticizes the Discussions about higher education lecturer in strong terms was distributed and research institutions online. Moreover, in the same month it was In October 2017, in his testimony to revealed that Chinese students also Parliament, Australian Security Intelligence objected to the fact that a region related to a Organisation (ASIO) Director-General of China-India border dispute was not marked Security Duncan Lewis made a statement as Chinese territory on a map presented by sounding a warning that there was a a lecturer during a class at the University of possibility that foreign governments were and held a fierce exchange with the utilizing international students and consulate lecturer. In this context, in Australia over the staff born in their own countries to exercise past two years some people have started to influence in universities inside Australia and worry about the safety of Chinese urging Parliament and people involved in the international students due to the overheated universities to be careful. The statement of media reports about the words and actions Director-General Lewis in the Australian of Chinese international students, as leaflets media was widely understood to have China including content that is discriminatory in mind, and we can conclude that one of the toward Chinese international students have reasons for it was the increasing critical been posted on university campuses, and media reports regarding the growing multiple violent incidents have been reported presence of China and Chinese people in in the media, etc. However, at the time of university education workplaces at that time. writing this paper we cannot go so far as to Those media reports can be mainly divided conclude that the trend is that these kinds of into three types. inhumane acts are growing in Australian Firstly, there are the media reports about universities. Chinese international students. There are Secondly, media reports that the Chinese indications that in recent years some government is applying various kinds of Chinese international students have pressure to Chinese international students engaged in actions that infringe academic and researchers continued. In particular, in

6 NIDS Commentary No. 82 the following two cases media reports direct lobbying with respect to the presented the specific testimony of the management of universities can be seen. parties. The first case is the event involving The Australia-China Relations Institute at the Chinese international student Tony Chang. is particularly frequently Mr. Chang had been involved in activities mentioned as a typical example of this. criticizing the Chinese government in Australia-China Relations Institute is an Australia for many years, and he has organization whose name is widely known in testified that his family members living in the community of Japanese scholars who China were pressured by people who research Australia, and in particular the appeared to be government officials to get public opinion poll regarding the East China Mr. Chang to stop his activities. According to Sea posted on the website of the institute in the Australian Broadcasting Corporation 2015 is famous. According to the poll, in (ABC) program Four Corners, in response to response to a question asking how the the above circumstances the Australian Australian Prime Minister should respond in government issued a visa to Mr. Chang and the case that Japan and China had started a supported his staying in Australia. One more military conflict over islands in the East example is the event involving Mr. Chongyi China Sea and the US President had asked Feng, a Chinese researcher at the University the Australian Prime Minister to participate in of Technology Sydney who holds Australian the war on the side of Japan and the US, 68 permanent residency. Mr. Feng, who percent of the survey respondents replied specializes in human rights issues, is known that he should maintain neutrality and for critical statements and actions toward the communicate to the President that he would Chinese government. In April 2017 he not make a military commitment. finished his research activities in China and Furthermore, the Director of the institute, immediately before he returned to Australia, former foreign minister , is known he was forbidden to leave the country at an as a person who is critical of the stance of airport in China and made to stay there. the Australian government to be actively According to Mr. Feng, he was questioned involved in maritime issues surrounding about various aspects of his research China and of the strengthening of the activities during the period of approximately US-Australia alliance and Japan-Australia one week he was made to stay there. In relations, and he has repeatedly made response to these kinds of incidents, the assertions of these kinds both inside and leading media and knowledgeable persons outside Australia. A series of media reports of Australia submitted a series of media and opinion pieces by researchers indicating reports and opinion pieces accusing China that this institute carrying out these kinds of of suppressing freedom of speech inside research activities is an organization that Australia. has a deep relationship with China has been Thirdly, media reports saying that the published over the past two years. As Chinese government is engaged in more evidence for that, it has been indicated that 7

NIDS Commentary No. 82 people belonging to Chinese-owned speech and academic freedom in which companies and the Mr. Huang whose Australia believes. In response to this, the relationship with former Member of second assertion sounds a warning that Parliament Dastyari was questioned are excessive caution towards Chinese members of the board of directors of the international students could infringe their institute; furthermore, it is unclear whether human rights and academic freedom. In there have been any donations of funds from particular, there are quite a few researchers these companies to the institute. Note that in that express the concerns that discussions the context of indications such as the above making the case for caution with respect to being made, in 2017 the Director, Mr. Carr the activities of Chinese students from the himself, rejected the criticisms by perspective of security are not necessarily emphasizing that Mr. Huang had already backed up by specific evidence and treating resigned as a director, that the institute all Chinese students as if they are tools of would not receive the provision of funds from the Chinese government could even lead to him going forward, and moreover that the racial discrimination as a result. It is difficult Australia-China Relations Institute was a to decide the actual response between these politically-neutral thinktank, for example it two perceptions of the issue. On the one welcomed the provision of funds from US hand, infringement of the values in which companies. Australian universities believe through At a time when media reports about the over-protection of the safety and human activities of Chinese international students rights of international students must be and the Chinese government in universities prevented, but at the same time inviting a became overheated in this way, a variety of situation in which the human rights of the views regarding the best response were students are restricted due to excessive submitted in the academic societies of focus on preventing interference by foreign Australia. Several of those have been governments must also be avoided. published in the form of open letters in the Assuming this, what kind of appropriate joint names of university staff. Here, we will balance can be found between these two not present individual opinion pieces but outcomes? The university staff of Australia rather we simply present below the two are facing a difficult issue. representative points of contention that have As one example of a response to this point been indicated regarding this matter. Firstly, of contention, Vice-Chancellor Brian P. there is the indication that from a security Schmidt at Australian National University perspective some forms of preventative indicated that it is essential to distinguish measures and regulations should be between students engaged in activities introduced with respect to the expanding under the influence of a foreign government influence of the Chinese government and the and the great majority of students who are activities of Chinese students on campuses. not, and that it is important for the protection This should be done to protect freedom of of academic freedom for students with

8 NIDS Commentary No. 82 diverse backgrounds to interact with each point out issues such as human rights, etc. other to form a broad community within the while avoiding the exchange of criticism in university rather than students always public forums as much as possible, so it can forming cliques with other students born in also be concluded that the stance of the their own country, and therefore to develop Australian government in recent years to an intellectually open attitude with respect to mention points of contention such as human different views and criticism. Furthermore, rights issues and democratization in China Vice-Chancellor Schmidt emphasizes that it publicly is a notable phenomenon because it is financially important for Australian deviates from a policy of many years. universities to strengthen cooperation with Furthermore, in recent years the Turnbull research institutions in China, which have a conservative coalition government has been lot of funds, and to continue accepting the advocating a policy of further strengthening growing number of Chinese international economic and security cooperation with students, and has made proposals to recall like-minded states that share its values, but at the same time the economic stake there is also a discussion indicating that the possessed by this issue. increasing awareness in Australia of issues In response to these media reports, etc. surrounding China is one of the major about Chinese students and researchers, in factors behind the renewed emphasis on recent years situations in which the values in Australian diplomacy. Australian government raised the issues of human rights and democratic values with The “Sharp power” concept respect to China have increased. In October There are many discussions 2017, when media reports showed a conceptualizing as “sharp power” the various tendency to be overheated, Foreign Minister alleged activities of China surrounding the Bishop and Frances Adamson, Secretary of Australian political world and higher the Department of Foreign Affairs and Trade, education indicated in recent years. For in public forums, one after another called on example, Rory Medcalf, Head of the National Chinese international students to respect Security College located in Canberra, has freedom of speech. Moreover, Foreign said that many foreign governments have Minister Bishop made an unusual statement engaged in a variety of activities inside in which she went as far as to mention the Australia for many years partly due to its human rights issues in China and the multicultural and multiethnic social necessity of democratization in the future. characteristics, and it cannot necessarily be According to one piece of research concluded that those activities are improper regarding China-Australia relations, since conduct, but on the other hand he clearly the founding of the China-Australia human criticized the “sharp power” by the Chinese rights dialogue in 1997, the basic policy of government, saying its scale and nature the Australian government has been to compared to the activities of other foreign utilize a non-public dialogue framework to governments were unacceptable. Moreover, 9

NIDS Commentary No. 82 he claimed that countermeasures against minister Carr is growing inside Australia, and the “sharp power” of China should be the political activities of Mr. Huang have strengthened in order to protect the values of clearly been restricted. In what form has this Australia, and advocated the establishment result, the decline of the influence of these of the Foreign Government Interference people, increased the power of China? Countermeasures Act and consideration of Similarly, it has been indicated that despite some form of response in the universities. the criticism of China there was no change to If based on the two examples described in the policy of the Australian government, detail by this paper, however, two conceptual China-Australia political relations reservations exist regarding framing a range deteriorated over the Foreign Government of activities (deemed to be) by China in Interference Countermeasures Act, and Australia as an example of “sharp power.” moreover there is even a possibility that this First, as widely indicated by the became one factor leading to Australia knowledgeable persons and politicians of strengthening its cooperation with Australia, the institutional deficiencies like-minded countries, but can we conclude unique to Australia cannot be ignored. Until that these phenomena increased the power the Foreign Government Interference of China? If we take into account the above Countermeasures Act was enforced, political questions, we can conclude that at the activities using the funds of foreign present time it would be hasty to reach the governments were widely deemed to be conclusion that a range of activities inside legal acts. Perhaps it is necessary to Australia have built the sharp power of consider whether this should really be China. understood to be an attack exploiting the On the other hand, we can conclude that openness of democracy as indicated by the greatest analytical usefulness of the “sharp power” or rather it should be “sharp power” concept is that it puts the concluded that there was an issue with the spotlight on the fact that particular dilemmas fact that institutional countermeasures that exist for democratic countries when are feasible in democratic states as well formulating solutions to a range of activities were neglected. Second, supposing that the by authoritarian states. In the both examples series of activities were implemented by the of the Australian political world and higher Chinese government as reported by the education workplaces handled by this paper, media, can we really conclude that as a it became clear that a tension exists between result of those activities a situation favorable protection of the political values of Australia, to China was created and the power of including freedom of the press and academic China expanded? At the current time, freedom, and countermeasures against a Member of Parliament Dastyari who was range of activities by foreign governments. considered to have been a mouthpiece for As indicated by the “sharp power” concept, the position of the Chinese government has we can conclude that this tension shows that lost his position, criticism of former foreign putting the analytical focus on the

10 NIDS Commentary No. 82 characteristics of democratic states is useful. opposite, that they are even the appeal and However, it would be hasty to judge using strengths of democratic states. Still, we can only the analysis of this paper whether we conclude at least that the one thing which is can conclude that the openness and values certain is that how a person answers this of democratic states provide the “window of question reveals how that person essentially vulnerability” which could lead to an interprets democracy and “sharp power.” expansion of the power of authoritarian countries, or we can conclude the complete

The views expressed in this paper do not represent the official Profile views of the National Institute for Defense Studies. Please contact us at the following regarding any views or questions you may have regarding the NIDS Commentary. We do not permit any unauthorized reproduction or Policy Studies Department unauthorized copying.

Global Security Division Planning and Coordination Office, The National Institute for Defense Studies Researcher Yusuke Ishihara Telephone (direct): 03-3260-3011 Telephone (general): 03-3268-3111 (ext. 29171) Fields of expertise: Japanese Foreign FAX: 03-3260-3034 Policy in Asia * National Institute for Defense Studies website: http://www.nids.mod.go.jp/

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