Category Archives: PRC

Still the 5 Eyes Achilles Heel?

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The National Cyber Security Centre (NZSC), a unit in the Government Communications Security Bureau (GCSB) dedicated to cyber-security, has released a Review of its response to the 2021 email hacking of NZ members of the Inter-Parliamentary Alliance on China (IPAC, a global organization of parliamentarians) and Professor Anne-Marie Brady, the well known China expert and critic. A number of problems were identified, both operational and (yet again) with regard to accountability and transparency, so I thought I would briefly summarise them.

The Review states that too much focus was placed by the NCSC on “technical” solutions to the email phishing probes instead of considering the “wider” context in which the hacking occurred. In layman’s terms that is akin to saying that the NCSC got busy plugging holes in the parliamentary server firewalls after breaches were detected without considering who was being targeted and what purpose the hacking may have served. This is remarkable because the hacking came from ATP-31, a unit linked to PRC military intelligence well known for having engaged in that sort of activity previously, in NZ and elsewhere. Moreover, the NCSC had to be alerted by a foreign partner that the email phishing efforts were part of a progressive hacking strategy whereby the ultimate target was not the emails of MPs but of the IP addresses that were being used by those MPs. In fact, the NCSC currently does not have procedures for how to respond to reports that foreign, including state-sponsored, actors are targeting New Zealanders. The NCSC found out about the parliamentary email servers hacking from Parliamentary Services in the first instance, and then from foreign partner intelligence that was passed on to it by the NZSIS.

This is of concern for several reasons, not the least of which is that it took a foreign 5 Eyes partner to alert the NCSC to something that it should have been well aware of itself (progressive hacking), and because the NCSC initially assumed, for whatever reason, that the phishing was done by ordinary criminals rather than foreign intelligence units. It also assumed that MPs were already engaged in providing their own security, even after Parliamentary Services flagged potential breaches of its email servers to the NCSC. In fact MPs were apparently told more by Parliamentary Services than the NCSC about their being targeted (albeit after the fact), and the University of Canterbury, Professor Brady’s employer, apparently was never contacted about potential security breaches of their servers.

Since MPs may have sent and received emails from multiple IP addresses attached to their official and personal devices, the security breach implications of the email hacks could be considerable given the potential cross-over between personal and official MP communications. Put bluntly, it is incredible that a dedicated cyber-security unit that is an integral part of the GCSB and through it the Anglophone 5 Eyes signals/technical intelligence network did not consider the membership of the targeted MPs in IPAC and that the phishing occurred at the same time that Professor Brady’s emails were targeted (Brady is known to have close contacts with IPAC). This is basic 1+1 contextual stuff when it comes to operational security in cyberspace, so one gets the sense that the NCSC is made up of computer nerds who have little training in geopolitics, foreign policy, international relations or how the world works outside of WAN and LAN (hint: these are basic computer terms). They simply approached the hacking attacks as if they were plugging a leaking dike rather than consider what may be prompting the leaks and red-flagging them accordingly.

The advice given by the Review was for the NCSC to engage more with the targeted individuals in real time, who only found out about their exposure long after the fact. Moreover, the Minister of Intelligence and Security was not briefed on these intrusions, much like the targeted MPs and Professor Brady were not. Again, this defies the notion of democratic oversight, transparency and accountability within NZ intelligence agencies. Worse yet, it follows on the heels of revelations that for a few years a decade ago the GCSB hosted a foreign partner “asset,” presumably a signals or technical intelligence collection platform, at GCSB headquarters in Wellington without the knowledge of the then Minister or even the GCSB Director-General. Operational control of that platform, including specific taskings and targets, were done by the foreign partner. Imagine if one of the taskings was to geotrack a foreign human target in order to eliminate that target. If word was leaked about GCSB’s hosting of the tracking platform, it might cause some diplomatic tensions for NZ. At a minimum it is a violation of both NZ’s sovereignty as well as basic notions of intelligence agency accountability in a democracy. It seems that, almost a decade later, the much vaunted reforms designed to increase intelligence community accountability embedded the 2017 Security and Intelligence Act had not filtered down to the NCSC dike-plugging level.

This is a very bad look for the GCSB, both in the eyes of its domestic clients as well as those of its 5 Eyes partners. NZ already had a reputation for being the “Achilles heel” or “weak link” of the 5 Eyes network due to its lax security protocols and counter-intelligence capabilities. This may only confirm that belief in spite fo significant efforts to upgrade GCSB capabilities and toughen up its defences, including in cyberspace. And, judging from the reactions of the targeted MPs and Professor Brady, domestic clients of the NCSC, who are both private and public in nature, may not feel too reassured by the Review and its recommendations.

It is known that the GCSB is made up of an assortment of engineers, translators and computing specialists. It has a remit that includes domestic as well as foreign signals and technical gathering and analysis, the former operating under the framework of NZ law under the 2017 Act (most often in a partnership with a domestic security agency).This brings up a question of note. If the staff are all of a “technical” persuasion as described above, then it follows that they simply adhere to directives from their managers and foreign partners, collect and assess signals and technical intelligence data as directed by others, and do not have an in-house capacity to provide geopolitical context to the data being analyzed. It is like plugging leaks without knowing about the hydraulics causing them.

In that light it just might do good to incorporate a few foreign policy and comparative political analysts into the GCSB/NCSC mix given that most of NZ’s threat environment is not only “intermestic” (domestic<–>international) but “glocal” (global and local) as well as hybrid (involving state and non-state actors) in nature. Threats are multidimensional and complex, so after the fact “plugging” solutions are temporary at best.

Given their diversity, complexity and sophistication, there are no “technical” solutions that can counter contemporary threats alone. Factoring in the broader context in which specific threats materialise will require broadening the knowledge base of those charged with defending against them or at a minimum better coordinating with other elements in the NZ intelligence community in order to get a better look at the bigger picture involved in NZ’s threat environment.

The NCSC in-house Review is silent on that.

Media Link: Post-pandemic economics and the rise of national populism” on “A View from Afar.”

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On this edition of AVFA Selwyn Manning and I discuss post-pandemic economics and the rise of national populism. It seems that a post-pandemic turn to more nationalist economic policies may have encouraged the rise of populists who use xenophobia and bigotry as a partisan tool by adding non-economic fear-mongering and scapegoating to the necessity of shifting to more inwards-looking structural reform. You can find the show here.

Media Link: “A View from Afar” on the moment of friction, and more.

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After a hiatus of over four months Selwyn Manning and I finally got it together to re-start the “A View from Afar” podcast series. We shall see how we go but aim to do 2 episodes per month if possible.

Here we start of with a catch up on events since the last podcast of 2023. Selwyn liked the KP moment of friction post from April 1, and so we used it as the stepping stone into a discussion that incorporates material from several recent KP posts and other news. I hope that you find the podcast of interest. You can find it here.

Arguing about a moot point.

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I have been following recent debates in the corporate and social media about whether it is a good idea for NZ to join what is known as “AUKUS Pillar Two.” AUKUS is the Australian-UK-US nuclear submarine building agreement in which the US and UK will provide Australia with the know-how and training on how to build and operate a small nuclear submarine fleet beginning in the 2030s. It has two components.

Pillar One involves the submarines themselves, which will be home ported at HMAS Stirling outside of Perth. Beginning in 2027 US Virginia-class and UK Astute-class attack subs (from which the future AUKUS-class Australian submarines will incorporate design features) will start rotating through HMAS Stirling so that Royal Australian Navy (RAN) and civilian personnel at HMAS Stirling can become familiar with nuclear submarine technologies and home port surface operations. The US will sell Australia up to three Virginia-class Block IV and Block VII subs beginning in the early 2030s and delivery of five new AUKUS submarines (designated as SSN-A’s) will begin in the mid 2040s. RAN crews are already attending the US Navy nuclear propulsion school in South Carolina and they will also join UK and US Astute- and Virginia-class boats on deployments as a part of their training. The project envisions the Royal Navy receiving SSN-A boats to replace their Asute-class fleet beginning in the early 2030s, and for the RAN to have a nuclear fleet of eight boats by 2050. Although nuclear propelled, they will not be nuclear armed. They are attack submarines whose main roles are to kill other submarines, surface vessels and land-based targets with conventionally armed torpedoes and cruise missiles. They are also tasked with intelligence-gathering missions involving technical, signals and even human collection methods.

Pillar Two of the AUKUS agreement involves complex technology research, development and transfers. The primary areas of focus will be on computer and cyber technology (including Artificial Intelligence, Quantum Computing and classified undersea technologies), hypersonic and counter-hypersonic platforms (already in progress), and Radar Capability, including the Deep Space Advanced Radar Capability (DARC) that will see tracking stations built in the Pillar One Countries. Pillar Two is designed to move beyond basic systems interoperability between the military allies, which is already in place, and integrate the military-industrial complexes of the three partners in ways that will not only lead to more seamless integration of complex technologies but also help create and expand high tech development hubs in each country, but especially in Australia and the UK. This is seen as having tremendous “trickle down” benefits for the civilian economies of each country as the flow-on effects of Pillar Two ripple into related industries up and down the supply, service, and delivery chains and their associated labour markets.

In March 2023 then Defense Minister Andrew Little of the Labour Party said that NZ was interested in discussing potential involvement in the non-nuclear aspects of Pillar 2, and in July 2023 US Secretary of State said that the “door was open” for countries like NZ to join the agreement. In December 2023 new Prime Minister Christopher Luxon reiterated his government’s interest in potentially joining in the non-nuclear aspects of Pillar Two, something that was followed by an announcement in February 2024 by Australia that it would begin to brief NZ officials on developments with regard to Pillar Two. However, after losing the October 2023 election the Labour Party reversed course and announced its opposition to participating in Pillar Two, and even the Grande Dame of the Labour Party, former NZ Prime Minister and UNDP chief Helen Clark, came out strongly against it. She has been joined in her opposition by a number of prominent NZ academics, peace, non-proliferation and disarmament campaigners, human rights and environmental activists, civil society organisations and left political movements as well as former diplomats.

Their concerns range from not wanting to jeopardise NZ’s trade relationship with the PRC, which has strongly denounced AUKUS as a provocative attempt to militarily counter and encircle it in the Western Pacific (and there is truth to that), which has a history of using trade as a retaliatory weapon in order to show its displeasure with other State’s behaviour, and upon which NZ is significantly trade-dependent, to fears of a nuclear arms race and/or great power conflict in the Southwestern Pacific that would have a disastrous impact on Pacific Island societies, economies and environments.

That latter point is significant because the permanent basing of nuclear submarines at HMAS Stirling appears to be in violation of the 1997 Treaty of Rarotonga declaring the South Pacific to be a nuclear-free zone.The maps of the South Pacific nuclear-free zone attached to the Treaty include the Australian West Coast fronting the Indian Ocean, and the Treaty prohibits the storage of significant quantities of fissile material or nuclear-processing facilities within the Zone. So the AUKUS agreement is seemingly in violation of the Treaty, which if so sets a dangerous precedent (AUKUS supporters claim that at worst the signatories exploited loopholes in the Treaty that make the agreement compliant with it). This can now open the door for other States to station nuclear powered submarines in the region, say for example, the French in New Caledonia or French Polynesia or the PRC in the Solomon Islands (thanks to the recently signed bilateral security agreement between the two countries). That would not be good from a strategic or arms control standpoint and would fulfil the darkest dreams of the non-proliferation community.

These opposition voices are countered by security experts and conservative political observers who see closer relations with AUKUS as enhancing NZ’s security in a rapidly deteriorating international security environment (in which militarily aggressive Russia and the PRC are seen as leaders of an authoritarian, anti-democratic, anti-Western bloc emerging from the Global South), and which also has great economic benefits for NZ should it join Pillar Two.

That is the foundation of the debate I mentioned at the beginning of this essay. Put crudely, Lefties do not want NZ involvement in Pillar Two. Righties do.

All of this seems to me to be a bit of a moot point. I hopped on the consultancy social media account to outline two reasons why, and I have expended them below.

First: the NZDF and GCSB (as part of 5 Eyes) will share AUKUS-related military technology and signals and technical intelligence collection advances because of their ongoing integration with Australian and US maritime operations and 5 Eyes partnership, especially when it comes to Western Pacific Anti-Submarine Warfare (ASW) roles. The incorporation of new P-8 long range patrol and ASW aircraft into the RNZAF and upgrades to the RNZN frigates have been done with that complex interoperability in mind. The NZDF already uses the principle of interoperability when working alongside its military partners–the US, UK and Australia being foremost among them– so whatever systems integration upgrades that result from AUKUS will be shared with NZ in any event. As it is, the NZDF already communicates with US and Australian submarines as a matter of course, so it will continue to do so once the nuclear-propelled ships come on board (remember that submarine hunters and surface patrol platforms need to distinguish friend from foe, and the best thing to do in that case is to ask upon contact or be alerted in advance by friendly forces). So as far as non-nuclear military technology sharing with the NZDF goes, it is a done deal. NZ does nothing (at least publicly) and yet it still gets to play with the military “big dogs.”

Also keep in mind that submarines are excellent signals intelligence collection or intercept platforms, particularly when it comes to undersea fiberoptic telecommunications cables. So upgrading to nuclear powered subs by the RAN will expand the range and operational capabilities of its maritime signals intelligence collection platforms as well as improve its ability to monitor hostile naval movements above and below the water line. The NZDF and GCSB will benefit from that, again, without having to do anything different than what they are doing already but with improved intelligence-gathering capabilities as a result.

Secondly, Australia, the UK and the US high technology sectors will not gift NZ firms a slice of the Pillar 2 pie for competitive and political reasons. Why allow the small high technology sector of a non-nuke “freeloading” country to benefit when AUKUS firms can benefit instead? Plus, AUKUS high technology sectors employ voters, have entrepreneurial lobbies and involve established economies of scale, so why share the Pillar Two market with what essentially would be a start-up upstart that has no political influence and electoral impact in the AUKUS countries themselves?

In effect, for operational as well as economic and political reasons, NZ involvement in Pillar Two is improbable. It will be briefed about Pillar Two as announced, but an invitation to join the endeavour faces opposition both from within and from without NZ. It therefore seems that the current government is engaging more in political and diplomatic posturing when it speaks of NZ’s involvement in Pillar Two rather than realistically assessing the prospects of that ever happening.

In that light, perhaps the fears of Pillar Two opponents are overblown?

A moment of friction.

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In strategic studies “friction” is a term that it is used to describe the moment when military action encounters adversary resistance. “Friction” is one of four (along with an unofficial fifth) “F’s” in military strategy, which includes force (kinetic mass), fluidity (of manoeuvre), fog (of battle) as well as uncertainty (of outcomes, which is usually referred to in military circles as the “oh F**k” factor)). Friction comes from many causes, including terrain, countervailing force, psychological factors, the adversary’s broader capabilities and more. As German strategist Karl von Clausewitz noted, friction can be encountered at the three levels of warfare: strategic, operational and tactical.In other words, “Clausewitzian friction” is not just confined to the battlefield.

The notion of friction is drawn from the physical world and has many permutations. It is not confined to one particular element or dimension. It is about opposition, even if of similar elements or forces, including the element of will. For example, when they meet, fluids and air of different weights create turbulence. Fire on different fire extinguishes or expands. Earth on earth leads to crumbling or inertial momentum. The product of the combination of these physical forces, say fluid on air or earth or fire, depends on the relative weight of each. The same goes for psychological factors in human contests. Mutatis mutandis (i.e., with the necessary changes having been made), this is applicable to international relations. It may seem like a conceptual stretch but I see the use of the notion of friction in terms of international relations more as an example of conceptual transfer, using Clausewitz as a bridge between the physical and the political/diplomatic worlds (more on this later).

In the past I have written at length about the systemic realignment and long transition in post Cold War international relations. The phrase refers to the transition from a unipolar post-Cold War international system dominated by the US (as the “hegemon” of the liberal internationalist world order) to a multipolar system that includes rising Great Powers like the PRC and India and constellations of middle powers such as the other BRIC countries (Brazil, Russia, South Africa and recently added members like Egypt, Iran, Saudi Arabia, the UAE, Ethiopia and perhaps Argentina (if it ratifies its accession)) as representatives of the rising “Global South.” In spite of their differences, these rising power blocs are counterpoised against what remains of the liberal institutionalist order, including the EU, Japan, South Korea and Australia. I have noted that the long moment of transition is characterised by international norm erosion and increased rule violations and the consequent emergence of conflict as the systems regulator until a new status quo is established (and from which that new status quo emerges). That conflict may come in many guises–economic, diplomatic, cultural and, perhaps inevitably, military or some combination thereof. When conflicts turn military, the moment of force has arrived. And when force is met by opposing force, then friction is inevitable.

Here I extend the notion of friction to include the international moment that we are currently living in. That is, I have conceptually transferred the notion of friction to the international arena because “transfer” in this instance means applying the notion of friction to a wider environment beyond the physical plane without distorting its original meaning. That allows me to avoid the methodologically dubious practice of conceptual stretching (where a term is stretched and distorted from its original meaning in order to analytically fit a different type of thing).

The long transitional moment is what has taken us to this point and allowed me to undertake the transfer, and it is here in the transitional trajectory from unipolar to multipolar international systems where the future global status quo will be defined. It is a decisive moment because it is the period where force has become the major arbiter of who rises and who falls in the systemic transitional shuffle. Given that there are many competitors in the international arena who are capable and willing to use force as well as other means to advance their interests, I suggest that the global community has reached its moment of friction, that is, the turning point in the long transitional process. Everything that has come before was the lead-in. Everything that comes after will be the result of this conflict-defined moment.

It is no exaggeration to write this. Besides the Ruso-Ukrainian war and the Israel-Hamas war, there is the armed stand-off in the Red Sea between Iran-backed Houthis and a naval coalition led but he US, the ongoing skirmishes between PRC naval forces and those of the Philippines, Vietnam and Western naval forces as well as the PRC military threats to Taiwan, the Israeli-Hezbollah conflict along the Israel-Lebanon border, Islamist violence in the Sahel and Eastern Africa as well as in Russia, Afghanistan, Pakistan and other other parts of Central Asia, ongoing conflict in Syria between Assad’s Russian-backed forces, the remnants of ISIS and Western-backed rebels, the Turkish-Kurd conflict along the Turkish, Syrian and Iraqi borders, the civil war in Libya, escalating fighting between the Democratic Republic of Congo and Rwanda over mineral rich areas in and around the eastern Congolese city of Goma (in which private military companies and irredentist militias are also involved), narco-violence in Latin America that has reached the level of challenging state monopolies over organised violence in places like Ecuador and parts of Mexico, piracy in the Indian Ocean and in the Malacca Straits, cross-border ethno-religious conflict in Afghanistan and Pakistan, ethnic cleansing in Myanmar, the PRC and Gaza, tribal conflict in Papua New Guinea and more. Norms and rules governing interstate as well as domestic forms of collective behaviour are honoured in the breach, not as a matter of course. Individuals, groups and States are increasingly atomised in their perspectives and interactions and resort to the ultimate default option–conflict–to pursue their interests in the face of other’s opposition..

Friction extends to economics. The era of globalisation of free trade has ended as nations revert to post-pandemic protectionism or focus on “near-“and “friend-shoring” in order to avoid supply chain bottlenecks resultant from commodity production concentration in a small number of countries. Although not a trade pact strictly speaking, the PRC Belt and Road Initiative undermines Western trade agreements like the TPPA and lesser regional arrangements because it ties developmental assistance and financing to Chinese industries and markets. Intellectual property and technology theft is wide-spread despite International conventions against them (endnote just by the PRC). The era of Bretton Woods is over and the agencies that were its institutional pillars (like the World Bank, IMF and regional agencies such as the IADB and ADB) are now increasingly challenged by entities emerging from the Global South like the China Development Bank and BRICS common market initiatives.

In addition, as part of international norms erosion and rules violations, many diplomatic agreements and treaties such as those prohibiting the use of chemical weapons and even genocide are also now largely ignored because, in the end, there is no international enforcement capability to reinforce what is written. The International Court of Justice and International Criminal Court can impose sanctions and issue arrest warrants but have no enforcement authority of their own. The UN can authorise peace-keeping missions and issue resolutions but is subject to Security Council vetoes on the one hand and belligerent non-compliance in the other (besides Israel ignoring UN demands for a cease-fire and humanitarian pauses in Gaza, people may forget that there are UN peace keeping missions in the Sinai, Golan Heights and Israel-Lebanon border, including NZDF personnel among them, because these “blue helmet” missions have had no ameliorating impact on the behaviour of the participants in the Israel-Hamas-Hezbollah-Syria conflict). Adverse rulings in international courts have not stopped the PRC island-building and aggressive military diplomacy in the South China Sea. The examples are many. Given that state of affairs, States and other actors increasingly turn to force to pursue their interests.

Whatever restraint was promoted by the laws of war and international conflict-resolution institutions during the post-Cold War interregnum has been abandoned or become exceptions to the new anarchic rule. One might even say that the international community is increasingly living in a state of nature, even if the terms “anarchy” and “state of nature” are loose interpretations of what Hobbes wrote about when he considered the Leviathan of international politics. But the basic idea should be clear: the liberal internationalist system has broken down and a new order is emerging from the conflict landscape that characterises the contemporary international arena.

Again, the friction is not just things like the military confrontations between Russia, Russian and Iranian-backed proxies in the Middle East and the PRC against a range of Western and Western-oriented nations in the Western Pacific. The BRICS have proposed to develop a single unitary currency to rival the Euro and are openly calling for a major overhaul of international organizations and institutions that they (rightfully so), see as made by and for post-colonial Western interests. But the question is whether what they have in mind as a replacement will be any better in addressing the needs of the Global South while respecting the autonomy of the Global North. My hunch is that it will not, and will just add another front to the moment of friction.

I shall not continue enunciating the reasons why I believe that we have arrived at an international moment of friction (e.g. cultural degradation and social vulgarisation, etc.). That is because I cannot specify what will be come given that push has now led to shove, nor can I offer a solution set to the problems embedded in and underwriting this sorry moment. What I can say is, just like the fact that we need to learn to embrace uncertainty in the transitional process since outcomes are not assured and guarantees cannot be offered (although some industries like tobacco, liquor, weapons and insurance all profit during times of uncertainty and market hedging strategies become the common response of risk-adverse actors to uncertain economic times, so can be calculated or anticipated), so too we must, if not embrace, then learn to prepare for an era in which friction will be the dominant mode of international transaction for some time to come.

For small countries like NZ, repeating empty mantras about foreign policy “independence” no longer cuts it even as a slogan. The moment of international friction poses some existential questions about where NZ stands in the transitional process, how it will balance competing international interests when it comes to NZ foreign and security policy, and about who to side with when conflict comes.

Because it will.

Forget the date. This is no April Fools joke.

Reminder: “Frenemies” are not friends.

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News that the Chinese ATP 40 cyber-hacking unit penetrated parliamentary internet networks in 2021 has renewed concerns about the PRC’s malign intentions in Aotearoa. But is the hack that significant given the length of time that has passed since its discovery and the lack of sensitivity of the information that was accessed?  I was asked to write about this for a corporate news outlet but since it is my work I have added some details and posted it here.

The hack is unsurprising given that NZ is a 5 Eyes partner and parliamentary services and the parliament counsel’s office handle sensitive information as a matter of course. NZ may be a trading partner of the PRC but is in essence a security adversary given its membership in 5 Eyes and its close military alignment with the US, Australia and other Western states that are (whether rightly or wrongly) hostile to PRC power-projection world wide. Since the PRC is a main focus of 5 Eyes signals and technical intelligence collection, it would be remiss for ATP 40 to ignore potential avenues of exploitation when it comes to obtaining political or security-related intelligence in NZ. That is part of their mission, and complements the well-known presence of numerous PRC human intelligence agents in this country.

It is therefore reassuring that the GCSB National Cyber Security Centre (NCSC) discovered the hack and found that no strategically important or sensitive information was breached. We shall have to trust them on that. However, that does not mean that this will be the last time ATP 40 or some other PRC cyber-hacking unit will attempt to breach NZ government and private cyber defences. That is what they do, and because NZ has in the past been seen as the Achilles heel of the 5 Eyes network due to traditionally poor cyber security practices, it will likely do so again. This is an ongoing problem that the NCSC was created to address, but the offence versus defence dynamic inherent in (cyber) espionage and warfare is still in play and will continue to be so for the foreseeable future.

Some have suggested that NZ impose sanctions on the PRC in response to the parliamentary cyber intrusion. The US and UK have announced such measures due to similar PRC behaviour with regard to them (more on this below). However, for NZ that would be a mistake because sanctions at this point would be counter-productive. First, because it would be akin to poking a tiger and invite disproportionate retaliation over what is a relatively minor transgression in the broader scheme of things. Since NZ has yet to wean itself off of its self-made PRC trade dependency, it cannot afford to alienate it just yet, if ever, over an intrusion of this order.

Secondly, these type of breaches are usually handled quietly so that the offending party is not completely sure of how and why they were thwarted or countered. In other words, the GCSB does not want to show its hand when it comes to its counter-hacking capabilities. That the breach occurred in 2021 and only has been acknowledged now indicates that the GCSB feels that enough time has elapsed for operational security concerns to be ameliorated and a “fair warning” issued to the hackers that they are being identified, traced and countered. So there is no need to cause an inevitably damaging public spat with a much more powerful interlocutor. For all the coziness of the 5 Eyes members, no one will come to NZ’s economic rescue if the PRC decides to take punitive economic measures against NZ in the event that NZ tries to impose sanctions of some sort on its largest trade partner.

The timing of the GCSB announcement about the 2021 hack is also coincident with the US publishing the identities of ATP 40 hackers targetting US infrastructure and Australia and the UK warning of their and other Chinese political interference efforts in strong terms, with particular focus in the UK and US on PRC hacker compromises to voting systems in election years in both. The timing of the announcements about PRC hacking efforts therefore seems to be a 5 Eyes-coordinated “shot across the bow” that gives warning to ATP 40 and their counterparts that the times of easy access to critical data infrastructure, even if indirectly and even in NZ, are over. 

But that may be all that it is and not, at least in NZ’s case, a reason for NZ to escalate the matter beyond what it already has said and done. Chinese diplomats have been summoned to MFAT for a “please explain” and scolded for ATP 40’s misbehaviour. The PRC Foreign Ministry has rejected the accusations and warned about scurrilous attempts to besmirch the PRC’s good name. Perhaps it is time to let the dogs go back to sleep.

It remains to be seen if this type of State-backed cyber-probing ends because if nothing else the PRC hacking community is ingenious, well resourced and persistent. For them, this is part of the PRC’s ascent to having a multi-dimensional (voice and cyber encrypted communication intercept, physical and infrared (thermal) imagery aquisition, submarine fiberoptic cable “tapping,” capabilities, etc.), broad specturm, multi-domain (air, land, sea, space, cyber) warfare infrastructure on its way to achieving superpower status. As part of 5 Eyes, NZ is standing in the (albeit in a small) way of that goal. It was and is bound to be an ongoing target of Chinese espionage efforts, including in the cyber domain.

Ultimately the revelations about ATP 40s operations in NZ are a reminder against cyber complacency at home and at work, be in the public or private sectors. This is very true when dealing with so-called “frenemies,” that is, States with which NZ has cordial, even friendly relations on the public surface but with which underlying value systems and security relations are incompatible, strained or even hostile. So long as NZ is a member of the 5 Eyes network and the PRC is an adversary and target of that network even if it is NZ’s largest trade partner, ATP 40 and other PRC intelligence units will be hard at work seeking to discover and exploit any potential avenues of opportunity in NZ cyber-space as well as in other domains. It may be in that in the past “loose lips sunk ships,” but in the contemporary era all keystrokes, phone calls, encrypted messages, Tik Toks and Instas are also grist for the intelligence mill—and exploitable as such.

An earlier version of this essay appeared on March 27, 2024 in the NZ Dominion Post (the-post.co.nz, p.19) and affiliated media outlets.

Article Link. “South America’s Strategic Paradox” in MINGA.

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The Latin American multidisciplinary journal MINGA just published my article on “South America’s Strategic Paradox.” I was surprised that they wanted to do so because they have a very clear left-leaning orientation and my article was pretty much a straight-forward geopolitical analysis. This was the article that an editor of the New Zealand International Review felt was too broad in scope to publish. Go figure. Judge for yourself (the article is in English, with translation pending).

Social Media Link: 36th Parallel on South America’s “Strategic Paradox.”

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I was asked to write a commissioned essay for a special issue on Latin America of a NZ international affairs magazine. I was told by the editor I could write on a specific subject of my choice. I decided to write about what I see as South America’s “Strategic Paradox:” increased overall (macroeconomic) regional prosperity largely brought about by the growth in trade with the PRC (rather than with the US or EU) did not translate into increased domestic social equality, security and stability (as most Western developmental economists and sociologists would believe). Instead, increasing income inequalities caused by limited domestic job growth, few wage improvements and negligible distribution of tax revenues from the expanding import-export sector exacerbated social tensions, leading to more domestic insecurity. To this is added an assortment of pathologies such as public and private sector corruption and negative collaterals like environmental degradation in the emerging primary goods sector (such as in lithium extraction). All of this is set against the backdrop of increasing US hostility to the PRC presence in the region, which it sees as a growing security threat that must be countered.

The result is that South America may be more prosperous than ever in aggregate terms (say, GDP per capita), but it is not more peaceful, stable or secure as a result. My conclusion is that with a few notable exceptions it is a lack of good corporate and public governance that explains the paradox. Meanwhile the great power rivalry in the region has taken on a pernicious dynamic of its own that if left unmitigated will only add fuel to the fire.

Unfortunately, the editor, who is not a political scientist or international relations specialist (she says that she specialises in propaganda and authoritarianism, although from her limited bibliography she shows little knowledge of the extensive literature on each!) decided that the essay was too generalised and lacking in data to be publishable as is (after asking me to limit the essay to 3500 words and write it for a general, not specialist audience). She challenged my mention of the ongoing use of the Monroe Doctrine by US security officials, even though I provided citations for both data and comments when pertinent (15 in all, including Congressional testimony from US military officials and data from the Economic Commission Latin America (ECLA)). I got the distinct impression that she wanted a puff piece, got a critical analysis instead, and decided to condescendingly ask for unreasonable revisions in order to reject the piece without seriously reading it. In other words, she did not like it, but not because of its lack of scholarship but because it did meet her expected editorial slant. In fact. from her tone it appears that she had no idea who I am before she commissioned the essay and then assumed that I am some ignoramus when it comes to discussing South American politics, geopolitics and social dynamics. Y bueno, que le vas a hacer?

The good part of this story is that since I am not paid for the work, am not an academic who needs it on my c.v. for promotion purposes, and have a couple of social media platforms on which to publish and disseminate it without editorial interference from uninformed non-specialists, I told her that I would not do as told, would not do the demanded revisions and instead would publish the piece elsewhere.

KP is one such elsewhere: https://36th-parallel.com/2024/01/05/south-americas-strategic-paradox/

Tell me what you think about it.

Media Link: The Hamas-Israel War as a Global Catalyst.

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Readers will recall that I have been writing about the transition from unipolarity to multipolarity in international affairs since the inception of this blog. Although still in progress, that realignment has pretty much proven true but not in the way I and others assumed that it would. Rather than a move to a system dominated by several Great Powers balancing each other on specific policy issues within a common institutional framework, what is emerging is two competing constellations of States joined by non-State actors such as high technology firms and various ideological proxies and surrogates. These blocs are not formal alliances but instead are loose networks of actors that share perspectives and values on the world order. One defends the current status quo, the other does not.

The one that does not represents the post-colonial Global “South.” The one that does represents the liberal internationalist order created by and for imperialist/colonial and neo-imperialist/post-colonial Northern powers beginning in the 17th and continuing well into the late 20th century. The Global South bloc is led by Russia and China, who beyond their Northern locations trade on their revolutionary legacies of the 1950s through to the 1990s, when they supported resistance and liberation movements against colonialism and imperialism across the globe. The Global South bloc includes other members of the so-called BRICS (Brazil, India and South Africa), to which will be added Argentina, Egypt, Saudi Arabia, the UAE and Yemen next year.

The intention of this emerging constellation, which also has North Korea, Iran, Turkey, Pakistan, Venezuela, Nicaragua, Cuba, Bolivia and several Sub-Saharan African States as potential members, is not so much to push a Southern Hemisphere outlook on world affairs but to create a parallel institutional edifice that will eventually replace liberal internationalist institutions as the main conduits of international exchange. Things like the Belt and Road Initiative, growth of the China Development Bank as a rival to the World Bank and International Monetary Fund, the move to use the Chinese Yuan as a reserve international currency rather than the US dollar when providing loans to infrastructure development projects, as well as the proposed move to create a BRICS currency that will rival the Euro and US dollar, all are part of replacing the Western-centric institutional framework with a more “South”-centric organisational apparatus.

In this week’s “A View from Afar“ podcast Selwyn Manning and I discuss how the Hamas-Israel war is a precipitant for the consolidation of this new type of bipolarism–two multipolar constellations competing with each other on numerous geopolitical fronts. Although it is still too early to see the final configurations of these blocs and whether they will translate into rival security alliances down the road (with all the dangers that entails), we try to explain how shifting perceptions on the global “street” (as opposed to between governments) are laying the foundations for a fundamental shift to the new systemic alignment.

Media Link: The geopolitics behind the reaction to the Fukushima wastewater release.

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I did an interview with Radio New Zealand Pacific on the reaction to the controlled release of wastewater from the decommissioned Fukushima nuclear energy plant in Japan. Let’s just say that geopolitics outweighs science when it comes to how some people and States have reacted to the release. Link here.