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It is important to note, as Secretary Pompeo stated, “no country does more two-way
trade in the Indo-Pacific than the United States. In Southeast Asia, the U.S. is the
single largest source of cumulative foreign investment – larger than China, Japan and
the European Union.” The U.S. Overseas Private Investment Corporation has a
portfolio of $3.9 billion invested in the Indo-Pacific. The U.S. Millennium Challenge
Corporation has provides $2.1 billion in funding to promote development and
governance since 2004.
The United States is assembling a coalition of likeminded states, including Australia,
to provide infrastructure funding. The U.S. National Security Strategy also identified
multilateral institutions such as the Asian Development Bank as sources of funding.
The key here is quality of investment rather than quantity. The proof of whether
China or the United States is successful will rest on sustainable development in the
target countries.
Thayer Consultancy provides political analysis of current regional security issues and
other research support to selected clients. Thayer Consultancy was officially
registered as a small business in Australia in 2002.
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to China’s Belt and Road Initiative and is not in competition with China. As Secretary
Pompeo made clear, the estimated demand for infrastructure funding in the IPR by
2030 will be $26 trillion, “no government nor combination of governments has that
kind of money. Only the private sector does.”
Q3. Mr. Pompeo made no reference to China when announcing the plan, while many
top officials, like Secretary James Mattis, had not hesitated to criticize Beijing
publicly before. Yet China was clearly the elephant in the room, given what Mr
Pompeo mentioned in his speech.
ANSWER: Correct. Secretary Pompeo launched his IPEV on the eve of his visit to
Singapore to attend four multilateral meetings – Lower Mekong Initiative, ASEAN
Post Ministerial Conference (10+1), East Asia Forum Ministerial Meeting and the
ASEAN Regional Forum. Pompeo was scheduled to meet State Councillor and Foreign
Minister Wang Yi.
Secretary Pompeo did not mention China directly but it was clear that he had China
in mind when he stated U.S. commitment to “a region rooted in sovereignty, the rule
of law, and sustainable prosperity… For that to happen, Indo-Pacific leaders must
prioritize transparent, anti-corruption, and responsible financing… what you see is
what you get: honest contracts, honest terms, and no need for off-the-books
mischief.”
Secretary Pompeo’s Senior Policy Adviser Brian Hook was more direct when he he
characterized China’s OBOR as “a made in China, made for China initiative.”
Q4. What do you think about the message here, if it comes to Sino-US strategic
competition in Asia-Pacific (or now Indo-Pacific)? And was this message not strong
enough without mentioning China in name?
ANSWER: The Trump Administration must speak to multiple audiences. The U.S.
National Security Strategy and National Defense Strategy elevate inter-state
competition as the main threat to the United States. China and Russia are identified
as the major threats. China is accused of using intimidation, coercion and predatory
economic policy. This message is designed for China, Russia and U.S. allies and
strategic partners.
Secretary Pompeo muted his comments and did not mention China directly because
he was addressing a Southeast Asian audience on the eve of his trip to Malaysia,
Singapore and Indonesia. Southeast Asian countries prefer dialogue to
confrontation. Pompeo wanted to win his hosts over by supporting ASEAN centrality
at the same time as he stressed the importance of engaging with China.
Q5. Some analysts doubt if Washington’s plan will be formalized, especially with a
too big vacancy left by the US in Asia-Pacific after Trump withdrew from the Trans-
Pacific Partnership (TPP)? What do you think? What are the biggest challenges?
ANSWER: It is important to note, as Secretary Pompeo stated, “no country does
more two-way trade in the Indo-Pacific than the United States. In Southeast Asia, the
U.S. is the single largest source of cumulative foreign investment – larger than China,
Japan and the European Union.” The U.S. Overseas Private Investment Corporation
has a portfolio of $3.9 billion invested in the Indo-Pacific. The U.S. Millennium
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Thayer Consultancy provides political analysis of current regional security issues and
other research support to selected clients. Thayer Consultancy was officially
registered as a small business in Australia in 2002.