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101. The U.S.-China Trade War: Is There an End in Sight?

Author:
Simon Lester and Huan Zhu
Publication Date:
01-2020
Content Type:
Journal Article
Journal:
The Cato Journal
Institution:
The Cato Institute
Abstract:
Donald Trump was a trade “hawk” long before he became president. In the late 1980s, he went on the Oprah Winfrey show and complained about Japan “beating the hell out of this country” on trade (Real Clear Politics 2019). As president, he has continued with the same rhetoric, using it against a wide range of U.S. trading partners, and he has followed it up with action (often in the form of tariffs). While many countries have found themselves threatened by Trump’s aggressive trade policy, his main focus has been China. As a result, the United States and China have been engaged in an escalating tariff, trade, and national security conflict since July 2018, when the first set of U.S. tariffs on China went into effect and China retaliated with tariffs of its own. In this article, we explore the U.S.-China economic conflict, from its origins to the trade war as it stands today. We then offer our thoughts on where this conflict is heading and when it might end.
Topic:
Economics, International Trade and Finance, Tariffs, Trade Wars, and Donald Trump
Political Geography:
China, Asia, North America, and United States of America

102. THE BRICS COUNTRIES’ MONETARY AND FINANCIAL POWER: WHAT HAS CHANGED SINCE THE 2008 GLOBAL FINANCIAL CRISIS AND WHY IT MATTERS

Author:
Luiza Peruffo
Publication Date:
01-2020
Content Type:
Journal Article
Journal:
Conjuntura Austral: Journal of the Global South
Institution:
Conjuntura Austral: Journal of the Global South
Abstract:
The grouping of the BRICS countries is controversial in several ways. First, because its origins do not have a political foundation: Brazil, Russia, India and China were first put together as an acronym created in the financial market (O’NEILL, 2001) and this was eventually transposed onto the political world. The group’s advocates have argued that the geopolitical initiative that followed made sense because it brought together countries of continental proportions, large economies, with huge domestic markets –an argument that falls apart with the inclusion of South Africa in 2010. In addition, there is the issue of the disproportionate economic power between China and the other members of the bloc. Moreover, many argue that there are few common interests between the economies, which have such diverse productive structures, and therefore it would be unlikely that they could form a cohesive group (see STUENKEL, 2013, pp. 620-621 for a review of criticisms of the group).
Topic:
Economics, International Political Economy, Global Financial Crisis, and Economic Cooperation
Political Geography:
Russia, China, India, South Africa, and Brazil

103. Armenia and Azerbaijan: Between Failed Peace and War

Author:
Farid Shafiyev
Publication Date:
12-2020
Content Type:
Journal Article
Journal:
Caucasus Strategic Perspectives
Institution:
Center of Analysis of International Relations (AIR Center)
Abstract:
The current issue of the Caucasus Strategic Perspectives (CSP) journal entitled “Armenia and Azerbaijan: Between Failed Peace and War” is dedicated to the latest 44-days war between Armenia and Azerbaijan in the NagornoKarabakh conflict zone with focus on different aspects of the conflict and the war. The CSP’s new issue includes 6 articles, 7 commentaries and 2 book reviews. In the framework of Armenia-Azerbaijan confrontation, the CSP’s current authors analysed the role of ideology, western media coverage, economic issues, illegal activities, multilateral diplomacy, international reaction, as well as humanitarian and geopolitical issues.
Topic:
Diplomacy, Economics, War, Geopolitics, Media, Multilateralism, Ideology, Humanitarian Crisis, Armed Conflict, and Legal Sector
Political Geography:
Armenia and Azerbaijan

104. Volume 70 Issue 1

Author:
Muhittin Kaplan
Publication Date:
01-2020
Content Type:
Journal Article
Journal:
Istanbul Journal of Economics
Institution:
Istanbul University Faculty of Economics
Abstract:
Istanbul Journal of Economics-İstanbul İktisat Dergisi is an open access, peer-reviewed, scholarly journal published two times a year in June and December. It has been an official publication of Istanbul University Faculty of Economics since 1939. The manuscripts submitted for publication in the journal must be scientific and original work in Turkish or English. Being one of the earliest peer-reviewed academic journals in Turkey in the area of economics, Istanbul Journal of Economics-İstanbul İktisat Dergisi aims to provide a forum for exploring issues in basicly economics and publish both disciplinary and multidisciplinary articles. Economics is the main scope of the journal. However, multidisciplinary and comparative approaches are encouraged as well and articles from various social science areas such as sociology of economics, history, social policy, international relations, financial studies are welcomed in this regard. The target group of the journal consists of academicians, researchers, professionals, students, related professional and academic bodies and institutions.
Topic:
Economics, International Political Economy, Oil, Political Science, Exchange Rate Policy, Macroeconomics, Currency, R&D, Price, and OECD
Political Geography:
Turkey, Nigeria, and Global Focus

105. Volume 70 Issue 2

Author:
Muhittin Kaplan
Publication Date:
06-2020
Content Type:
Journal Article
Journal:
Istanbul Journal of Economics
Institution:
Istanbul University Faculty of Economics
Abstract:
Istanbul Journal of Economics-İstanbul İktisat Dergisi is an open access, peer-reviewed, scholarly journal published two times a year in June and December. It has been an official publication of Istanbul University Faculty of Economics since 1939. The manuscripts submitted for publication in the journal must be scientific and original work in Turkish or English. Being one of the earliest peer-reviewed academic journals in Turkey in the area of economics, Istanbul Journal of Economics-İstanbul İktisat Dergisi aims to provide a forum for exploring issues in basicly economics and publish both disciplinary and multidisciplinary articles. Economics is the main scope of the journal. However, multidisciplinary and comparative approaches are encouraged as well and articles from various social science areas such as sociology of economics, history, social policy, international relations, financial studies are welcomed in this regard. The target group of the journal consists of academicians, researchers, professionals, students, related professional and academic bodies and institutions.
Topic:
Economics, International Political Economy, Sustainable Development Goals, Political Science, and Ecology
Political Geography:
Turkey and Global Focus

106. The Power of Ideas: The Fórum da Liberdade, 1988-2018

Author:
Camila Feix Vidal, Jahde Lopez, and Luam Brum
Publication Date:
01-2020
Content Type:
Journal Article
Journal:
Contexto Internacional
Institution:
Institute of International Relations, Pontifical Catholic University of Rio de Janeiro
Abstract:
This is a study of the Fórum da Liberdade (FL), an annual event organised by the Brazilian think tank Instituto de Estudos Empresariais, an Atlas Network partner. Based on critical theory, this study is aimed at casting light on the role played by the FL in promoting US hegemony in the realm of ideas. Drawing on an analysis of all the forums over 30 years from its inception in 1988 until 2018, we demonstrate that this hegemony is based on the neoliberal economic model. We ex- amine the presenters, the sponsors, the main themes and the award winners. We find that a) the FL privileges speakers who support the neoliberal ideal – mostly male politicians, entrepreneurs, and members of neoliberal think tanks in Brazil and elsewhere; b) the FL has been internationalising, embracing an absolute majority of speakers from the USA, and strengthening ties with its major partner, the North American Atlas Network; c) the FL helps build electoral platforms by privileging politicians who support its economic ideals; and d) the FL promotes the US neoliberal agenda via financial support from the entrepreneurs who fund the annual events, and an ‘intelligentsia’ that legitimises the ideas presented at those events.
Topic:
Economics, Hegemony, Intellectual History, Neoliberalism, and Think Tanks
Political Geography:
North America and United States of America

107. Participation of Kazakhstan in the Chinese “One Belt, One Road” Initiative: Advantages, Problems and Prospects

Author:
Saltanat Kuzembayeva
Publication Date:
12-2020
Content Type:
Journal Article
Journal:
Nowa Polityka Wschodnia
Institution:
Faculty of Political Science and International Studies, Nicolaus Copernicus University in Toruń
Abstract:
The article is devoted to the geoeconomic goals and prospects of implementing the Chinese initiative „One Belt, One Road”. The author explores the benefits, problems and future opportunities that open up to the Republic of Kazakhstan as a participant in this initiative. The analysis carried out in the article showed that there are still many problems in the implementation of the Silk Road Economic Belt (SREB) project taking into account the state program of Kazakhstan “Nurly Zhol”, and difficulties arise in the practical implementation of various cooperation areas. At the same time, Kazakhstan should be guided exclusively by its national interests in cooperation with China in the framework of the “One Belt, One Way” initiative.
Topic:
Economics, Geopolitics, Soft Power, and Belt and Road Initiative (BRI)
Political Geography:
China, Central Asia, Eurasia, Kazakhstan, and Asia

108. The Implications of the China–Pakistan Economic Corridor for Pakistan–European Union Relations

Author:
Agnieszka Nitza-Makowska
Publication Date:
03-2020
Content Type:
Journal Article
Journal:
Nowa Polityka Wschodnia
Institution:
Faculty of Political Science and International Studies, Nicolaus Copernicus University in Toruń
Abstract:
The China–Pakistan Economic Corridor (CPEC) holds the potential to transform Pakistan along with its turbulent regional environment. In the short run, the multiple networks of infrastructure that the project provides will eventually improve Pakistan–European Union (EU) trade. Moreover, while the CPEC is unlikely to bring an immediate strategic shift in the bilateral dialogue, which is particularly lacking in political dynamics, its long-run promises can help to foster such dynamics. The project, if successful, can help Pakistan to establish a peaceful domestic environment and subsequently promote the country’s fresh image to reverse its soft power losses in Europe and beyond. This paper investigates contemporary Pakistan–EU relations, which have so far attracted little attention from international relations scholars. It presents the bilateral dynamics in the context of the CPEC, which is an unprecedented investment by China in Pakistan. The paper concludes by shedding light on the differences between China’s and the EU’s strategies vis-à-vis Pakistan. Despite the fact that the study focuses on one particular South Asian state, it can serve as a case study for the comparative analysis of China’s and the EU’s presence in third countries, especially those that, like Pakistan, have joined the Belt and Road Initiative.
Topic:
International Relations, Economics, European Union, and Belt and Road Initiative (BRI)
Political Geography:
Pakistan, China, Europe, South Asia, and Asia

109. Joint U.S.-Korea Academic Studies 2020

Author:
Gilbert Rozman, Mark Tokola, Gilbert Rozman, Dmitri V. Trenin, Yuki Tatsumi, Kathryn Botto, Rush Doshi, Scott W. Harold, See-Won Byun, Cheol Hee Park, Brad Glosserman, Charles W. Boustany Jr., Matthew Goodman, Wonho Yeon, and Kitti Prasirtsuk
Publication Date:
06-2020
Content Type:
Journal Article
Journal:
Joint U.S.-Korea Academic Studies
Institution:
Korea Economic Institute of America (KEI)
Abstract:
The experts in this volume have thoughtfully addressed themes that are pervasive throughout Asia and are timely for the U.S.-Korea alliance. With the future of Northeast Asia in flux, political leaders are hoping to transform their respective visions into the path forward for the region. Authors in the first section analyze the frameworks of U.S. President Donald Trump, Chinese President Xi Jinping, Russian President Vladimir Putin, Japanese Prime Minister Abe Shinzo, and South Korean President Moon Jae-in to discern the currents underlying geopolitical developments in the region. The second section examines the role of national identity in key bilateral Indo-Pacific relationships where geopolitical fault lines have become clearer. Chapters in this section cover the India-China, U.S.-China, South Korea-China, and South Korea-Japan dyads. The final section provides insights into how several of China’s neighbors and the United States are responding to its economic rise, which, of course, are also guided by strategic concerns. Considering how COVID-19 has exacerbated the rivalry between Washington and Beijing as well as the influence this relationship carries in shaping the future of the region, the contributions here are particularly relevant and timely.
Topic:
International Relations, Security, Economics, and Domestic Policy
Political Geography:
Japan, China, Asia, South Korea, North America, and United States of America

110. ASEAN’s Looming Anxiety

Author:
Kitti Prasirtsuk
Publication Date:
06-2020
Content Type:
Journal Article
Journal:
Joint U.S.-Korea Academic Studies
Institution:
Korea Economic Institute of America (KEI)
Abstract:
The rise of China generally presents both opportunities and challenges, particularly in economic terms. In the past several years, new kinds of challenges have been emerging and are looming larger in ASEAN countries. While ties with Beijing are, by and large, cordial, there are several signs that relations below the state level are increasingly worrisome. First, Chinese foreign direct investment (FDI) is largely not oriented towards manufacturing. A considerable amount tends to be in non-real sectors, such as real estate and casinos, which may not generate much employment and can be unhealthy to local economies. Second, the way Chinese businesses expand tends to be predatory, as demonstrated in tourism-related businesses and the acquisitions of fruit businesses in Thailand. As a consequence, new Chinatowns are emerging as more Chinese are moving into the region. Third, even business expansion through the Chinese government, e.g., the train projects, is far from smooth. ASEAN countries find themselves in uneasy deals – including onerous loan terms, undue requests for land usage along the train lines, stringent technology transfers, and imported Chinese labor. Moreover, the recent COVID-19 outbreak reveals not only the fragility of economic overdependence on China, but also public resentment towards the Chinese. Overall, the relations at the level of business and the people are far from promising, which can become a risk factor in state-to-state relations. The situation apparently demands good management from both Beijing and the counterpart governments.
Topic:
International Relations, Foreign Policy, Economics, ASEAN, COVID-19, and Real Estate
Political Geography:
China, Malaysia, Asia, Vietnam, and Southeast Asia

111. Is China’s Innovation a Threat to the South Korea-China Economic Relationship?

Author:
Wonho Yeon
Publication Date:
06-2020
Content Type:
Journal Article
Journal:
Joint U.S.-Korea Academic Studies
Institution:
Korea Economic Institute of America (KEI)
Abstract:
This paper reviews China’s technological rise and assesses whether it poses a threat to the South Korean economy. In terms of comparative advantage between the two countries, many experts have long believed that China’s strength is low-cost labor and Korea’s is technology and capital. However, this has changed as China’s economy grows. Now China has enough capital to invest in its economy. Some scholars even argue that China has the potential to meet its “innovation imperative” and emerge as a driving force in innovation on a global level.1 This paper examines the Korea-China economic relationship from the innovation productivity perspective, organized into sections: briefly introducing the Korea- China economic relationship; describing the technological rise of China, based on recent data; developing the model to analyze the innovation productivity of China and report the estimation results; evaluating the concern of the South Korean semiconductor industry; and presenting conclusions.
Topic:
International Relations, Economics, Science and Technology, and Bilateral Relations
Political Geography:
China, Asia, and South Korea

112. China’s Economic Rise amid Renewed Great Power Competition, America’s Strategic Choices

Author:
Charles W. Boustany Jr.
Publication Date:
06-2020
Content Type:
Journal Article
Journal:
Joint U.S.-Korea Academic Studies
Institution:
Korea Economic Institute of America (KEI)
Abstract:
American ideals coupled with the commercial self-interest of American business and industry drove the policy of engagement, and even after the 1989 massacre of student protesters at Tiananmen Square, sustained momentum for China’s accession into the WTO. Despite China’s known unfair trade practices, it was thought that problems would eventually disappear as China adopted rules and norms as conditions of its accession to the WTO while deepening its integration into the global trading system. Yet, despite this strategy of engagement, China has not implemented expected substantive structural reforms consistent with the spirit, if not the letter, of its WTO obligations.
Topic:
International Relations, Security, Foreign Policy, and Economics
Political Geography:
China, Asia, North America, and United States of America

113. Chinese Views of South Korea: Aligning Elite and Popular Debates

Author:
See-Won Byun
Publication Date:
06-2020
Content Type:
Journal Article
Journal:
Joint U.S.-Korea Academic Studies
Institution:
Korea Economic Institute of America (KEI)
Abstract:
China and the Republic of Korea (ROK) have experienced periods of conflict and cooperation since officially forging “partnership” relations in 1998. From a historical perspective, Korea was among the most willing participants of the Sinocentric tribute system and its underlying cultural hierarchy. Yet the 2003-2004 dispute over the ancient Koguryo kingdom’s identity marked the first major downturn in the China-ROK relationship since normalization. The rapid expansion of trade, at an average annual rate of 18 percent since 1992, has not prevented the two sides from fighting over political grievances. Most notably under the current Xi Jinping leadership, Beijing’s assertions of unprecedented friendship quickly turned into accusations of betrayal requiring economic punishment. Why and how did China’s policy toward South Korea shift so drastically after two decades of diplomatic normalization? To answer, we must focus on the expectations raised by China’s national identity for ties with South Korea. This study examines the evolution of Chinese views of South Korea with a focus on elite and popular narratives since 2013. Despite increased interdependence, these narratives point to China’s increasingly fragile political ties with Asian partners. Most importantly, China’s growing weight facilitates its strategic combination of economic and discursive tools of diplomacy framed by national identity. Recent tensions over the U.S.-ROK military alliance displayed Beijing’s denial of direct economic retaliation under the cover of public hostility, conveniently blurring the lines between state-led and voluntary actions. By hardening the identity dimensions of conflict, such strategies may only have long-term counterproductive effects of constraining Beijing’s political influence at home and abroad. The four sections below proceed as follows. First, I review two decades of China-ROK relations since the establishment of partnership ties in 1998. I identify two related trends: the intensification of political disputes despite trade, and China’s growing economic leverage in managing those disputes, keeping an eye on the role of national identity. Second, I assess the pessimistic turn in China’s domestic discourse on South Korea in the Xi Jinping period, using official, academic, and media sources. Third, I trace the interaction of elite and popular narratives, focusing on the 2016-2017 dispute over a U.S. missile defense system, Terminal High Altitude Area Defense (THAAD). I briefly extend the discussion to public clashes over Hong Kong in 2019 to underscore the enduring impact of China’s major power and domestic political identities on China-ROK relations. To conclude, I consider the trajectory of bilateral relations under the leadership of Xi Jinping and Moon Jae-in, including the domestic and foreign policy implications of nationalist discourse.
Topic:
Diplomacy, Economics, Public Opinion, and Elites
Political Geography:
China, Asia, and South Korea

114. Assessing State Capacity Libertarianism

Author:
Ryan H. Murphy and Colin O'Reilly
Publication Date:
10-2020
Content Type:
Journal Article
Journal:
The Cato Journal
Institution:
The Cato Institute
Abstract:
Tyler Cowen (2020), in a controversial and widely discussed blog post, has argued that free economic institutions must be accompanied by state capacity to achieve maximal growth rates. He calls this “State Capacity Libertarianism,” which echoes positions he has posed previously (Cowen 2007, 2018). Besley and Persson (2011) can be perhaps seen as a direct predecessor. Criticisms immediately emerged, with Henderson (2020) arguing that Cowen’s specific proposals are in direct conflict with libertarianism, and with minor caveats, free economic institutions are already able to achieve the goals Cowen hopes to achieve with state capacity. Geloso and Salter (forthcoming) argue that the lack of examples of wealthy countries with weak states is due to survivorship bias, and they apply their argument to criticize Cowen (Geloso and Salter 2020). Caplan (2018), while not directly addressing State Capacity Libertarianism, argues that there is little reason to believe that the effects of state capacity are the result of strong states themselves, rather than the social and cultural factors that allowed a strong state to emerge in the first place. The purpose of this article is to put data to the question of the individual effects of state capacity and free economic institutions on economic performance, and the potential interaction between the two.
Topic:
Economics, Markets, State, and Libertarianism
Political Geography:
Global Focus

115. The Fall of Chile

Author:
Axel Kaiser
Publication Date:
10-2020
Content Type:
Journal Article
Journal:
The Cato Journal
Institution:
The Cato Institute
Abstract:
Following the failed Marxist experiment of Chilean President Salvador Allende, a free‐​market revolution led by the so‐​called Chicago Boys in the 1970s and 1980s created the conditions necessary for the country to experience an “economic miracle” that captured worldwide attention.1 As Nobel laureate economist Gary Becker (1997) put it, Chile became “an economic role model for the whole underdeveloped world.” This performance, said Becker, “became still more impressive when the government was transformed into a democracy.” Along the same lines, Nobel laureate economist Paul Krugman argued that the reforms introduced by the Chicago Boys “proved highly successful and were preserved intact when Chile finally returned to democracy in 1989” (Krugman 2008: 31). Indeed, from 1990 to 2010 a left‐​wing coalition called “Concertación” came to power. Despite having been comprised of opponents to the military dictatorship and by many former members of Salvador Allende’s government, Concertación kept in place the foundations of the free‐​market system. A pragmatic view prevailed, leading to the recognition and adoption of the economic legacy of the Pinochet years.
Topic:
Economics, Reform, Neoliberalism, Ideology, Crisis Management, Transparency, and Free Market
Political Geography:
South America, Chile, and United States of America

116. Economic Liberalizations Around the World Since 1970: Shock Therapy Versus Gradualism

Author:
Kerianne N. Lawson and Robert A. Lawson
Publication Date:
10-2020
Content Type:
Journal Article
Journal:
The Cato Journal
Institution:
The Cato Institute
Abstract:
This article examines 77 countries with the most significant economic liberalizations since 1970, as measured by changes in the Economic Freedom of the World (EFW) index. Measures of both the speed and comprehensiveness of the reforms are presented. Our empirical evidence suggests that faster reforming nations economically outperformed slower reformers. We do not find evidence that more comprehensive reforms, as opposed to more narrowly targeted reforms, had much of an impact on ensuing economic growth.
Topic:
Economics, Reform, Economic Growth, and Liberalization
Political Geography:
Global Focus

117. The Essence of the Strategic Competition with China

Author:
Michael J. Mazarr
Publication Date:
10-2020
Content Type:
Journal Article
Journal:
PRISM
Institution:
Institute for National Strategic Studies (INSS), National Defense University
Abstract:
U.S. national security strategy and defense policy have come to focus on China as the primary emphasis in the “strategic competition” outlined by recent U.S. strategy documents. Outside government, an avalanche of recent reports and essays lays out the China challenge in sometimes fervent terms, depicting an ideologically threatening revisionist state with malign intentions. As the Financial Times columnist Martin Wolf put it recently, “Across-the-board rivalry with China is becoming an organizing principle of U.S. economic, foreign and security policies.
Topic:
Security, Economics, International Cooperation, Hegemony, and Strategic Competition
Political Geography:
China, Asia, North America, and United States of America

118. Central Europe in the new Millennium: The new Great Game?

Author:
Šárka Waisová
Publication Date:
10-2020
Content Type:
Journal Article
Journal:
Revista UNISCI/UNISCI Journal
Institution:
Unidad de investigación sobre seguridad y cooperación (UNISCI)
Abstract:
After the fall of communism, Central Europe (CE) was a region with relatively high US interest and support. Washington supported the NATO membership of CE countries, provided financial as well as technical assistance to the region and several American high-positioned political representatives visited the region. However, during the last few years, it is evident that CE is a space where the Russian and Chinese presence and influence have been risen. The present article analyses several questions aiming to scrutinize the Russian and Chinese presence and activities in CE, particularly, when and how Russia and China penetrated into CE, what are the consequences of the rising Russian and Chinese influence and who are the supporters and opponents of Moscow and Beijing in CE. The article concludes that, the main competing actors in CE are Washington and Russia, while China profits from the US-Russia clash. While the US and Russian interests are dominat in security and political issues, China aims to penetrate CE economics.
Topic:
Security, Foreign Policy, NATO, Economics, Politics, and Influence
Political Geography:
Russia, China, Central Europe, and United States of America

119. The Functions and Problems of China’s State-Owned Economy

Author:
Wei-xiao Jia
Publication Date:
01-2020
Content Type:
Journal Article
Journal:
Polish Political Science Yearbook
Institution:
Polish Political Science Association (PPSA)
Abstract:
At the national symposium on the reform of state-owned enterprises, General Secretary Xi Jinping gave important instructions that state-owned enterprises are important forces in strengthening the country’s overall strength and safeguarding the common interests of the people. Therefore, the country must make state-owned enterprises „stronger, better, and bigger”. Huge objections arose in the academic field. This article thoroughly analyzes China’s state-owned economy from the perspective of Marx’s historical materialism, national productivity, and social development, and clarifies the historical status and role of China’s state-owned economy. At the same time, this article comprehensively analyzes the economic significance of making state-owned enterprises „stronger, better, and bigger” from the perspective of total factor productivity, and proposes that since the state-owned economy is backed up by the state, investing in technology research and development has its advantages. However, because the state-owned economy is biased toward administrative instructions, it often lacks efficiency, so if the state-owned economy wants to become „stronger, better, and bigger”, it must undergo reforms in terms of management efficiency.
Topic:
Economics, Governance, Reform, State Building, State-Owned Enterprises, and Productivity
Political Geography:
China and Asia

120. The Future of Chinese Foreign Economic Policy Will Challenge U.S. Interests, Part 1: The Belt-and-Road Initiative and the Middle Income Trap

Author:
Sagatom Saha
Publication Date:
01-2020
Content Type:
Journal Article
Journal:
China Brief
Institution:
The Jamestown Foundation
Abstract:
Chinese Communist Party (CCP) General Secretary Xi Jinping and other senior CCP leaders have prudently planned for the slowing economic growth that China now faces. CCP officials plan to transition China from its current export-led growth model to one driven by indigenous innovation, and one in which China’s rising global prominence confers to it many of the same advantages traditionally enjoyed by the United States (such as low borrowing costs and influence within international institutions). Although U.S.-China relations have become further fraught amid the trade war, many prominent China hands nevertheless assert that Beijing’s long-term economic plans do not run counter to U.S. strategic interests. [1] However, many of China’s planned foreign economic initiatives—to include the Belt and Road Initiative (BRI), global value chain advancement, and renminbi (RMB) internationalization—will come at U.S. expense. Policymakers in both Washington and Beijing should accordingly expect U.S.-China tensions to persist beyond the Trump administration. China’s need for new growth vehicles is twofold: its economic size has not translated into global influence, and its current economic model is losing steam. First, China’s transformation into the world’s second-largest economy has yet to yield equivalent influence in the international system. Beijing’s sway in the World Bank and the International Monetary Fund (IMF), for example, lag behind China’s status as the largest trade partner and foreign investor for much of the world. The United States, by contrast, has leveraged its economic status to maintain effective control of the Bretton-Woods institutions, to obtain low borrowing costs, and to exercise punishing sanctions programs against unfriendly governments. Second, Chinese growth has seen a secular decline over the last decade (see figure 1). The official projected GDP growth rate for 2020 is 6.1 percent (Xinhua, November 30, 2019), but some Chinese officials have hinted that they expect lower sub-6 percent growth in 2020 (South China Morning Post, November 14, 2019). This is a noteworthy signal, for CCP discourse has previously identified the benchmark of 6 percent GDP growth as necessary to avoid social unrest (China Brief, March 22, 2019).
Topic:
Foreign Policy, Economics, International Cooperation, International Trade and Finance, Hegemony, Conflict, and Rivalry
Political Geography:
China, Middle East, Asia, North America, and United States of America