China, Russia and Trump

The President of the USA is due to arrive in China today. It has been much heralded as the first great occasion when the newly enhanced President Xi will be able to demonstrate his mastery of the regime and the magnificence of the show that can be put on for Mr Trump.

In the run up to this visit, Trump has been forced to recognise that there is a very longstanding and close alliance between Russia and China. He has admitted that any plan more tightly to contain North Korea depends almost equally on the two powers that have land borders with that 'rogue state'. While China has been the main supplier of essential imports to the Pyongyang regime, Russia has also been a friendly facilitator over many years.

There is little room for doubt that both China and Russia are sorry that North Korea has developed its nuclear capabilities so far that Kim can be bombastic to the USA: and, by implication, a major nuisance to Russia and to China. On the other hand, they have noted both Trump's reciprocal bombast towards Pyongyang and his deeply ambiguous situation in regard to Russia.

As Secretary of State and as a presidential candidate, Hillary Clinton took a high moral stand on Russia's adventurism in the Ukraine, both the Donbass region and Crimea: she was a major influence on the introduction of sanctions that have affected Russia's trade and the general standard of living of the population negatively and [in a few areas] dramatically. Hence, Russia used all the covert means at its disposal [which are vast] to ensure that Trump had the best chance possible in the general election one year ago. It is very doubtful whether the mass of Russian intervention in any way swayed the election result which, like the Brexit vote in the UK, reflected the despair of swathes of US voters at the failure of the economic and social systems to maintain the American Dream in the rustbucket. The sheer originality - which the literati dismiss as the absurdity - of Trump's approach was combined with a deeply instinctive populism to grab people's attention and stimulate the enthusiasm of the 'forgotten people' in pockets right across the USA. It is noteworthy that Bernie Saunders almost hit the same note from a different pitch, in enthusing the metropolitan young: against him Hillary Clinton displayed increasingly platitudinous arrogance, shouting instead of speaking and thus diminishing any impact that her actual sentences might have achieved.

Russia and China have doubtless agreed a common approach to Trump; based on flattery interspersed with spoonfulls of bitter realism. Mr Xi will spend the next couple of days honouring and further educating the US president. President Putin will be in the same room with them in the following days at the pan-Pacific  conference, and it is there, rather than Beijing, that any new understanding on how to deal with North Korea will be agreed.

At the end of the Gorbachev years I twice made the [supposedly] direct flight from Moscow to Beijing, which each time made a heavy - unannounced - landing in Novosibirsk. This was necessary because the old Illyushin aircraft could not carry enough fuel for a non-stop journey. Both times the most conspicuous cohort of passengers were people with massive bags full of empty bags; whose business was to buy up whatever consumer goods were available from the new workshop-factories in China and take them back to Moscow in their many bags. They had a hard time with Russian customs on the way home [doubtless lessened by cash handouts when the KGB turned a blind eye] but their trade was highly lucrative. Russia has never facilitated the sort of entrepreneurial activity that enabled China to build up its balance of payments surplus with the industrial west, and is still largely dependent on China to supply the everyday manufactured goods that middle England takes for granted [and which mostly come into Britain from the emergent economies, not least China]. In exchange for this mass of imports - which are no longer imported by individual chancers as they were in the 'nineties - Russia can pay in oil and other materials; and by allowing Chinese firms to become farming contractors, mostly in the far east where the supply of Russian labour and enterprise are most thinly stretched.

Russia and China are hugely and closely inter-dependent all along the longest international border in the world. This interdependence was slightly set back by the extremities of the Cultural Revolution in China, and then by the economic chaos that followed from the collapse of the USSR. But the long northern border of Russia with China - right to the very eastern point of the Asian mainland - remains, even though other former-soviet republics now border China to the west. The two economies are even more closely symbiotic than that of Canada with the USA, and there will be no room for doubt that the briefings given to President Trump will have emphasised the point. To general surprise, 'The Donald' appears to have been paying more attention to his briefings of late than he did in his early days in office. He is to be watched, closely, over both his days in Beijing and in the ensuing wider conference. Great-power politics could well be reshaped; with North Korea as the carcass to be picked over; rather than the existential threat that it appeared to be in White House demonology just a month ago.

Old Allies

The generally negative view that is taken of Queen Mary I of England - "Bloody Mary" [Tudor] - does not readily accommodate the range of her interests and activities. My own perspective on her reign was dramatically developed in the still-communist Moscow Kremlin when I saw a magnificent exhibit of English silver, diplomatic gifts from the Queen to the then obscure and isolated emergent state of Muscovy. English navigators had made their way to the northern port of Murmansk, then Russia's only outlet to the seas. Mary's sister and successor Elizabeth intermittently pursued trade and alliance with Russia; while ducking a marriage proposal from Ivan the Terrible. The travails of British politics in the first half of the seventeenth century weakened the political aspect of the interaction, but that did not inhibit the development of the 'English village' outside the walls of Moscow. The inhabitants of that settlement represented the first 'window to the west' that was accessible to the young prince, then co-Tsar Peter.

When Peter manoeuvred himself into the sole sovereignty, and had established his autocracy absolutely on the state, he travelled west to test the tales that he had heard of western society, civilisation and - above all - technology. He visited all the major west-European states, and spent long enough in each to gain an image of its military preparations and its specialist skills in science and manufacturing. In several cases he demanded to be put through a crash apprenticeship in a skill that appealed to him; in between talks with monarchs and challenging private seminars with such luminaries as Isaac Newton. Besides huge height and outrageously greedy manners [for experiences, food, drink and sex] he impressed everyone with his intelligence and his grasp of concepts.He returned to Russia stuffed with data, plans and the ambition to make Russia an advanced western power. Successful military action secured him a toehold on the Gulf of Finland, and there on a collection of sandy islands he set about building a great capital city. St Petersburg  was typically described as Peter's 'window to the west' but more importantly he saw it as the exemplar for what he hoped to make the whole of Russia. Right down to the Revolution of 1917, though it grew as a European city [albeit with an extreme climate and a restrictive police regime] of great distinction.

Trade and technology transfer with Britain, and west Europe generally, remained very important to imperial Russia; but a specific and unique role for Britain arose when Tsar Alexander I split from Napoleon's hegemonic European empire and reopened the Tudor route from Britain to the Russian northern ports. Wellington and Kutusov defeated the French and their satellites starting from two corners of Europe, and they eventually met in conquered Paris. The obvious synergy of Britain and Russia wore thin during the 'great game' when Russia advanced its frontier through central Asia towards Afghanistan, where the British Raj in India repeatedly failed to capture control. The absurd Crimean war was the only open conflict between the two and by 1900 Russia and Britain were moving towards an alliance to stem the perceived Napoleonic ambitions of the Kaiser, who was a first cousin both the the Tsar and King George V. The war undermined the monarchy and Russia passed into the purgatory of 'permanent revolution' which was interrupted by the second world war.

The old alliance of convenience [and necessity] was reactivated for the war period, then was quickly abandoned in the cold war. Since the collapse of communism Britain has been at best half-hearted in its attempts to develop effective links with the Russian Federation. Some British firms including  farm management companies have done very well in Russia, as have  relatively few providers of financial services: but the British government has been overcautious in its engagement with  the regime. This is stupid. Incidents where Russian agencies have acted in a pre-liberation manner against opponents of the regime on British soil have been outrageous and demand a powerful reaction: but not self-harming, po-faced  isolationism. Putin is going to win the forthcoming election, and it will be a genuine result from a flawed system. Whether he will thereafter undermine his position by megalomaniac self-advertisement, or learn to present himself in a more statesmanlike manner, will be more important to the British press than it should be to the Foreign Office.

It is worth reflecting that democracy has been economically disastrous for Britain; while Putin and his cronies have stabilised the chaos to which their predecessors had brought the country as Boris Yeltsin sank into alcoholic incomprehension.Western Economists had applied their naive models of markets to the crisis of the economy that Gorbachev had been unable to rescue. Privatisation was a disaster: at first. It enabled sharp elbowed fixers to become the 'oligarchs' who personally controlled huge industries and agglomerations of financial power. Cometh the hour, cometh the man. Putin worked out a unique route to controlling their firms in the public interest. To take the businesses back into soviet-style state control would be a disaster: the Gorbachev experience proved that. To nationalise them and re-sell them could either be a re-run of the Yeltsin disaster or hand the facilities over the foreign corporations. So it was preferable to make the oligarchs keep control - and responsibility - for huge industries; and lock them in to the state. Some have been required to serve as provincial governors, some in other state service; some have been allowed to live abroad provided their firms conform to government requirements; and the recalcitrant few who challenged the system have been deprived of their assets and in some conspicuous cases of their liberty.

It is not a pretty system; it is not democratic in the 'Anglo-Saxon' sense; but it serves its purpose. Russia can build nuclear power plant: by contrast Britain sold Westinghouse and refused a modest loan to Forgemasters. Russia can design and build military aircraft; Britain takes a diminishing role in precarious international projects and has destroyed the independent civil aviation sector. Russia can build warships and submarines: so can Britain - now - but that capability is under threat. Russia develops its plant in steel, aluminium and other sectors; alien owners are reducing the capacity of their shrunken British equivalents. Russian organisation and management are still crude and inefficient; but business education and management training are spreading rapidly. The educational system is conservative, but young adults are highly literate, articulate and numerate; as are graduates over the whole age spectrum. Pensions are modest, but pensioners are protected and caring interpersonal relationships predominate. Alcoholism is a national crisis and the low birth rate is a cause of alarm. Medical facilities need massive investment and the training of appropriate staff: but everything in slowly and patchily improving. Everybody knows what destruction communism wrought; and they also know how ruinous their crash-course in market capitalism was: they did not starve under post-war communism, but millions came close to that in 1991-2.

The British people is instinctively reluctant to surrender sovereignty to a 'Napoleonic' European Union. When asked 'what is the alternative to subjection in the EU?' there are several potential responses: a return to Commonwealth preference, maybe: or membership of an 'outer circle' of the European Common Market, around the core Union, with Norway, Switzerland, Russia: and maybe Turkey. That prospect is as promising as subjugation to the EU is unpalatable.