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Three big predictions on China, Japan, the U.S., Australia and India

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With its first in-person summit at the White House on Friday, the Quad is making its biggest splash yet on a world stage that is increasingly being shaped by China.

Joe Biden, the U.S. president, will be meeting with Yoshihide Sauga (Japan), Scott Morrison (Australia) and NarendraModi (India).

The “quadrilateral Security Dialogue” between Australia, India and Japan was an informal discussion among senior officials regarding naval cooperation.

As China grows in power and influence, the Quad has evolved into a top-level strategic collaboration on technology, global economic security, and pandemic. While the statements of the group are cautious about mentioning China but the Chinese government still objects to it as an attempt at derailing its rise as global power,

To get a sense of what’s next, CNBC in February came up with a question — What is the future of the Quad? — and ran it through an advanced game theory model. This effort produced specific predictions regarding the Quad countries, China and any other country or territory with an interest in the Indo-Pacific. The game theory model for CNBC’s Quad project was designed to focus on security and maritime issues.

More here: Read the full report on CNBC’s Quad project, including data visualizations, maps and a timeline

The model built for this report included almost 300 individual “players” — senior government officials and national institutions — spread among the Quad nations, China and 10 other countries and territories.

Here are the three major forecasts for roughly the next two years that came out of the model:

  1. Leaders in Australia, India, Japan and the United States will become much more focused on Indo-Pacific security, and the countries will act in an increasingly coordinated way. They won’t be more aggressive than the ones they have taken already. They will, for example, not conduct naval exercises within the South China Sea that China claims to be its.
  2. In an attempt to make a wedge between the leaders of each Quad, the Chinese President Xi Jinping is going to press each one separately. However, he will not get any response. The Quad will be embraced by some senior officials in China including the military. They will be confronted by hard-nationalists at top of Chinese Communist Party. China won’t make any concessions to Quad regarding its maritime claims.
  3. Others countries, such as the United Kingdom and Canada, France or South Korea will join the Quad. This could be in the form joining naval exercises or supporting security-related positions of some of the Quad nations. Vietnam and other countries will be closer to the Quad, as they have been in the past.

CNBC spoke with experts about these results and they agreed that the Quad would strengthen itself as a whole.

The Quad will become a permanent component of Asia’s architecture is the baseline conclusion. It’s ingrained in the politics of these four countries,” Michael Green, Senior Vice President for Asia and Japan at the bipartisan research group CSIS said. “It’s good politics for all four countries.”

CNBC spoke to three analysts about the third prediction. They all agreed with CNBC that the Quad will find friendship in Asia and Europe. That projection “reflects what I’m hearing from Korea, the military of the Philippines — and the Dutch, by the way,” Green said.

The second conclusion was not unanimous, however, and it concerned Xi, his potential divisions, Green said.

Larry Diamond is a Hoover Institution Senior Fellow. He stated, “Xi has become very dominant and it’s unlikely that any softliners can challenge him.”

“Xi has gone so far down the road of militarization of the South China Sea and the promise of China greatness, China’s rise to hegemony in the Indo-Pacific, and essentially the recovery of Taiwan, that he can’t seriously moderate … without falling from power or risking it,” Diamond said.

Dive into CNBC’s Quad project here.

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