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Paddy Ashdown has been in Hong Kong this week, talking to the Foreign Correspondents Club about international relations and how the relationship between the Chinese leadership and Donald Trump could unfold. It’s not a pretty sight. Here is his speech in full. He revisits the theme of many of his speeches in recent years about the change in the global balance of power as China’s influence increases. He also has some candid and critical comments about the UK’s time governing Hong Kong.

Peace in the Pacific Region, and very probably the wider world, will depend on two questions.

How will the United States cope with decline?

And how will China fulfil her potential as a super power.

Not long after I returned from Bosnia in 2006, in the middle of the era of small wars, I was asked if great wars were now a thing of the past. I replied no; unhappily the habit of war, large and small, seems inextricably locked into the human gene. But I did not believe that, once we were passed the fossil fuel era, the most likely place for a great conflagration would be the Middle East. If we wanted to see where future great wars might occur, we should look to those regions where mercantilism was leading to an increase in nationalist sentiment and imperialist attitudes, as it did in Europe in the nineteenth century. The only region in the world, I concluded, which matched this description, was the Pacific basin. Nothing I have seen in the intervening decade alters this judgement.

We live in one of those periods of history where the structures of power in the world shift. These are almost always turbulent times and all too often, conflict ridden ones too. How new powers rise and old powers fall, is one of the prime determinants of peace in times like this. The Pacific basin is about to be the cockpit in which this drama is about to be played out

The United States is the most powerful nation on earth and is likely to remain so for the foreseeable future. But the context in which she holds that power is completely different from what it was. Over the last hundred years or so – the American century – we have lived in a mono-polar world dominated by the American Colossus. This is no longer true. We live now in a multi polar-world – by the way very similar to Nineteenth century Europe where balance among the five powers – the so called Concert of Europe – meant peace and imbalance meant war.

We have seen this before. The end of the European empires after the Second World war led to great instability and much conflict, not least in this region. Britain, by and large, accepted her decline and, mostly, dealt with it in a measured and civilised fashion. We will come onto what that means for Hong Kong in a moment. France, by contrast lashed about soaking first Indo China and then North Africa in blood. The Belgians were even worse in the Belgian Congo.

How the United States copes with her relative decline from the world’s only super power, to primus inter pares in a multi-polar world, is one of the great questions which will decide what happens in this region in the next decade. President Obama seemed to understand this. President Trump, it seems does not. His policies of isolationism, protectionism and confrontation towards China are foolish and dangerous. It is foolish because he is abandoning American leadership of the multilateral space and that will not strengthen America as he suggests, but hasten her decline. Its is dangerous because US isolationism will weaken multilateral instruments which are the only means of resolving conflicts and tackling global problems, such as climate change.

China’s position as a mercantile super-power is already established. It was inevitable that she should now seek to consolidate her trading strength by becoming a political and military super power, too. This is a perfectly natural ambition. It’s the way super powers behave – indeed it’s the way they have to behave to protect their position. This therefore, should not, in and of itself, be a matter of alarm or criticism.

It is natural too – and good – that China should seek to fill the vacuum of leadership in regional and global multilateral institutions left by President Trump’s retreat from this space. It is far better for us all to have an engaged China, than an isolated one.

The last great strategic opportunity faced by the West was the fall of the Soviet Union. We should then have reached out to engage Russia, to draw her in, to help her re-build and reform. Instead we foolishly treated Moscow with triumphalism and humiliation, orchestrated largely by Washington. The result was inevitable and he’s called Vladimir Vladimirovic Putin.

We are now faced with a second equivalent opportunity. Can we reach out to build constructive relationships with a rising China?

On the face of it, the signs have been hopeful.

China has seemed keen to be a good world citizen. She has engaged constructively in multilateral institutions – look at the WTO as an example; look at her support for the UN Security Council resolution on sanctions for North Korea; look at her engagement with international forces to tackle the scourge of the Somali pirates around the Horn of Africa; look at her participation in international disaster relief – for instance in north east Pakistan; look at her involvement with UN peace keeping to which she has committed more troops under multi-national command than the United States and Europe combined. Yes, they are mostly in Africa where she has good reasons to want to keep the peace. But there is nothing new in that. Western nations too only send troops to keep the peace, where it is in their interests to do so.