Asian Affairs: August 1-14, 2023

A tense encounter between Chinese and Philippine vessels sprouted new diplomatic ire while two American Navy sailors were arrested on charges of espionage on behalf of China.

Nick Ayrton

and

Alex Gintz

Aug 15, 2023

BRP Sierra Madre sits grounded on the Second Thomas Shoal, where she was deliberately ran aground by the Philippine Navy in 1999. Photo: U.S. Naval Institute

Tension Between Philippines, China on Display in South China Sea

August 5

An encounter between a Chinese and a Philippine vessels near the Second Thomas Shoal (known as the Ayungin Shoal to the Philippines and as Ren’ai Jiao to China) resulted in an hours-long standoff and a series of diplomatic jabs between the two countries. The incident included the use of a water cannon by the Chinese vessel, which was said to be delivering supplies to the BRP Sierra Madre, a Philippine tank loading ship that was deliberately grounded on the shoal by the Philippines in 1999. The Philippine Department of Foreign Affairs (DFA) and China’s Ministry of Foreign Affairs (MFA) have issued, unexpectedly, statements detailing their opposing views on the matter.

A statement released by the Philippines’ Department of Foreign Affairs stated that “China Coast Guard (CCG), People’s Liberation Army Navy (PLAN), and Chinese maritime militia vessels took blocking and other aggressive maneuvers, including the use of a water cannon, against Philippine supply boats and coast guard vessels on a routine rotation and resupply mission to the BRP Sierra Madre.”

According to China’s Ministry of Foreign Affairs has issued a separate opinion regarding the incident.

I would like to stress that Ren’ai Jiao is part of China’s Nansha Qundao. The Philippines explicitly promised several times to tow away the military vessel deliberately and illegally “grounded” at Ren’ai Jiao. However, 24 years have passed and instead of towing it away, the Philippines has sought to repair and reinforce it on a large scale in order to permanently occupy Ren’ai Jiao. The Philippines’ action gravely violates international law and the Declaration on the Conduct of Parties in the South China Sea (DOC) signed between China and ASEAN countries. China once again urges the Philippines to immediately tow away the military vessel “grounded” at Ren’ai Jiao and restore Ren’ai Jiao to its original state of having no personnel or facility on it.
Spokesperson - Ministry of Foreign Affairs

Like many developments in the South China Sea, much of the dispute surround the current situation was initially laid out in a 2016 ruling by the Permanent Court of Arbitration (PCA) in the 2013 case Philippines v. China, in which the court held that China’s territorial claims in the South China Sea were contrary to the legal framework laid out in the United Nations Convention on the Law of the Sea (UNCLOS) and that China’s failure to prevent Chinese fishing within the Philippines’ exclusive economic zone, among other actions, constituted a violation of the Philippines’ sovereign rights in the area. China has never accepted the ruling, with Spokesperson Wang going so far as to call the award “illegal, null and void,” saying that “China does not accept or recognize it, and will never accept any claim or action based on the award.”

On Monday, Aug. 7, Huang Xilian, China’s Ambassador to the Philippines, was summoned and presented with what the Associated Press has described as a “strongly worded diplomatic protest” regarding the incident, while the previously-mentioned MFA spokesperson said that China has already “lodged serious démarches to the Philippines.”

The Philippines released a statement in response to China’s account of the incident, while the United States Department of State released a statement of support for the Philippines, which drew a response from China’s MFA.

Two U.S. Navy Sailors Arrested, Accused of Spying for China

August 2

The FBI arrested two U.S. Navy members on Aug. 2 for providing sensitive military information to China. The two sailors were both stationed in California but in two different locations and are not thought to be connected to one another’s activities.

Jinchao “Patrick” Wei is a 22-year-old machinist mate Petty officer second class stationed on the USS Wessex, which is currently undergoing maintenance in San Diego. He faces four separate charges, including one that falls under the scope of Espionage Act. Since joining the Navy in July 2021, Wei has been accused of collaborating with an unidentified Chinese intelligence officer, according to legal documents. The indictment reveals that this collaboration began less than a year after his enlistment and continued for a full year. Prosecutors are alleging that he engaged in spying activities during this period.

Wei became a U.S. citizen in May of 2022, and according to the indictment, his handler even congratulated him after the fact. Prosecutors have revealed that Wei openly acknowledged to his contact that he understood his actions would be classified as espionage. Despite this admission, he accepted payments amounting to several thousands of dollars, according to the legal authorities.

Also, in a surprising twist, the prosecution revealed on Tuesday that Wei’s encouraged him to cooperate with a Chinese intelligence officer. She told her son that this collaboration might help him secure a job with the Chinese government someday. This accusation was brought forth by Assistant U.S. Attorney Fred Sheppard during a federal court hearing in San Diego. Sheppard strongly urged the judge not to release Wei.

The other sailor, Wenheng “Thomas” Zhao, that was indicted was accused of sending sensitive information to a Chinese agent who was posing as a maritime economic researcher. This information included “non-public and controlled operational plans for a large-scale U.S. military exercise in the Indo-Pacific Region” which detailed specified several aspects of American naval logistics in the region. It is also alleged that Petty Officer Zhao “photographed electrical diagrams and blueprints for a radar system stationed on a U.S. military base in Okinawa, Japan.”

Zhao is believed to have been paid approximately $14,866 for his actions and faces a maximum of 20 years in prison if convicted.

President Biden Issues Executive Order to Curb American Tech Investments Directed at China

August 9

American President Joe Biden issued an executive order providing the Secretary of the Treasury the authority to restrict and/or prohibit certain American investments directed toward Chinese entities in three industries: semiconductors and microelectronics, quantum IT, and artificial intelligence. The order has been met with mixed reactions.

Executive Order 14105 stipulates that the Secretary shall cooperate with heads of other federal agencies to issue regulations requiring Americans to provide note of information relative to certain transactions in the aforementioned sectors, termed as notifiable transactions, as well as prohibiting Americans from engaging in certain transactions involving “covered foreign persons” termed as prohibited transactions. The order states that “countries of concern” have been “acquiring and diverting the world’s cutting-edge technologies” for military use. According to the order, these developments in countries of concern constitute enhance their “ability to conduct activities that threaten the national security of the United States.”

According to Politico, administration officials have said, in plain English, that the implementation of the order with result in the prohibition of “some investments in Chinese firms engaged in developing quantum computing sensors and networks, as well as advanced semiconductor firms, and certain artificial intelligence firms” and require involved firms to “notify the federal government if they invest in some lower-end semiconductor production not already covered by export controls.”

The order is not set to go into effect until next year, and will not extend to existing transaction or investments which were underway before the order’s issuing.

While the order does not specifically mention China, years of microchip and semiconductor-focused tension between China, Taiwan and the United States has many concerned that this move from the President will facilitate, perhaps even encourage, further anti-China sentiment and action at the legislative level in the United States; an issue that already enjoys rare bipartisan support at the congressional level.

Opposition Coalition Fails to Unseat Anwar’s ‘Unity Government’ in Malaysian Elections

August 12

State elections in Malaysia proved a win for Prime Minister Anwar Ibrahim and his unity government, as opposition parties failed to find the necessary success to upset the political status quo in the country.

Anwar’s coalition government found electoral success in Selangor, Penang and Negeri Sembilan, three diverse and generally wealthy states which were expected to lean toward the current prime minister and the Pakatan Harapan (PH) party. The Perikatan Nasional (PN) coalition, which counts the more conservation Pan-Malaysian Islamic Party (PAS) among its ranks, captured the rural states of Kedah, Terengganu and Kelantan.

While the emergence of Anwar’s government from the recent elections still in power lifts some concern from its shoulders, it should be noted that the opposition made notable inroads in states still held by PH. Of 245 state legislature seats contested, 99 went to the ruling coalition, while PN secured 146 seats, including near sweeps in the rural states they were widely expected to retain control of.

See this recent commentary from The Asia Cable’s Qi Siang Ng for further perspective on the significance of the August elections for Malaysia’s current government.

U.S, Japan, India, Australia Hold Malabar Navy Exercises

August 11-15

The Quadrilateral Security Dialogue (Quad) countries of Australia, India, Japan and the United States began the annual Malabar naval exercise in Sydney, with the harbor phase running from the Aug. 11-15 and the at-sea phase scheduled for Aug. 16-21. The exercise is being hosted by Australia for the first time.

The exercise, named for India’s southwestern Malabar Coast was first held in 1992, aims to increase interoperability between the participating naval forces. Since 2020, the United States, Japan, India and Australia have been participants. The U.S. and India remained the primary participants until Japan became a permanent member in 2015, with Australia having partaken in every iteration since 2020. Canada and Singapore have also partaken once in 2006 and 2007, respectively.

The move to Sydney for 2023 has been described by observers to be indicative of the Quad countries’ intent to project power in the the region vis-a-vis China, though naval officials have pushed back on this notion.

‘We don't do anything focused on one particular country,” said Commander Kingsley Scarce of the Royal Australian Navy. “So this for us is all about working on those levels of interoperability with the different nations.

"For me personally my responsibility is to maximize the combat capability of this ship and that's what I do, and I use exercises like Malabar to make sure that we're ready to do whatever government needs us to do."

During past exercises, concern from China regarding the nature of the exercises has influenced the composure of the attending parties. In 2018, India refused a proposed entry of Australia into the exercises over concerns of the message that India’s cooperation with Australia in naval exercises might send to China, with whom both India and Australia have shared animosity in recent years.

The Asia Cable