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Begin New Search Topic Bilateral Relations Political Geography China Content Type Policy Brief

11. Managing Risks in the EU-China Economic Relationship

Author:
Claudia Schmucker and Guntram Wolff
Publication Date:
11-2022
Content Type:
Policy Brief
Institution:
German Council on Foreign Relations (DGAP)
Abstract:
As the German Chancellor heads to Beijing – the first visit by a G7 leader since the pandemic began, Germany and the EU must reevaluate their approach to China, especially after the recent Communist Party Congress further cemented a system of uncontested authoritarian power. European unity is critical in dealing with China. Russia’s war in Ukraine has exposed Germany’s energy dependency and many Western companies have had to leave Russia. To be prepared for a possible escalation of geopolitical tensions with China, Germany needs to draw lessons and review critical dependencies and corporate risks. Better corporate risk management, a diversified trade policy, and a targeted industrial policy are necessary to manage economic risks.
Topic:
Bilateral Relations, European Union, Trade, and Geoeconomics
Political Geography:
China, Europe, and Asia

12. Ending the Destructive Sino-U.S. Interaction Over Taiwan: A Call for Mutual Reassurance

Author:
Michael D. Swaine
Publication Date:
10-2022
Content Type:
Policy Brief
Institution:
Quincy Institute for Responsible Statecraft
Abstract:
Recent years have witnessed steadily rising hostility and suspicion between the United States and China over each other’s approach vis-à-vis Taiwan. The unprecedentedly aggressive Chinese military exercises in response to U.S. House Speaker Nancy Pelosi’s trip to Taipei this year indicated that the continued downward spiral in Sino-American relations over Taiwan would increasingly expose Washington and Beijing to risks of repeated crises with a potential of a dangerous armed conflict. This brief lays out the policy steps necessary to reverse this spiral of escalation.
Topic:
Foreign Policy, Diplomacy, Bilateral Relations, Crisis Management, and Strategic Interests
Political Geography:
China, Taiwan, Asia, and United States of America

13. A US-India Trade Agenda for the Biden Administration

Author:
Aparna Pande and Husain Haqqani
Publication Date:
02-2021
Content Type:
Policy Brief
Institution:
Hudson Institute
Abstract:
The US ought to counteract the influence of Chinese authoritarianism early and often. One relatively low-cost way is to encourage India to engage more deeply as a competitor with China in the global economy. A democracy since its independence in 1947, with a population about the same as that of China, India is that country’s natural rival in Asia. Beginning with India’s decision in 1990-91 to liberalize its economy, the nation has gradually opened its vast market to global trade. Fueled by fresh access to foreign capital and technology, India’s economy grew over six percent during the first decade of the 21st century. In May 2014, this progress was further advanced by the election of Prime Minister Narendra Modi. For the first time in India’s history, a conservative administration had a clear parliamentary majority, making it possible to legislate foundational, market-positive reform. India has adopted a new insolvency and bankruptcy code and replaced multiple taxation regimes across its states with a federal goods and services tax, which is welcome. But India has done little to end its excessive protectionism. Its distrust of foreign corporations, a legacy of colonial rule, endures. Indian policy makers may believe that the US is so eager for Indian competition with China that Washington will grant them a pass on restrictive trade and investment policies. But there is a better choice. India is nowhere near its full economic potential, and the fix isn’t complicated. The Biden agenda for India should encourage India to lower tariffs, to remove barriers to foreign retail, to roll back unnecessarily restrictive data privacy rules, and to provide economic incentives for foreign investment.
Topic:
International Relations, Foreign Policy, Bilateral Relations, and Trade
Political Geography:
China, South Asia, India, and United States of America

14. How to Think About the China-Russia Partnership

Author:
James Sherr and Frank Jüris
Publication Date:
09-2021
Content Type:
Policy Brief
Institution:
International Centre for Defence and Security - ICDS
Abstract:
Since the conclusion of the Treaty on Good-Neighbourliness and Friendly Cooperation in 2001, the balance of power between China and Russia has appreciably shifted in favour of the former, but their common definition of the enemy and the complementarity of their core interests remains as strong as it ever was. If the China-Russia relationship is not an alliance, then what is it, and what are its limits? In the Xi-Putin era, apprehension and ambition have transformed the ‘axis of convenience’ into an axis of necessity. But will ‘strategic partnership’ prove important or irrelevant to potential conflicts in Taiwan, Belarus or Ukraine? How much should be made of divergences of approach in Central Asia and the Arctic, where China’s rise leaves no stone unturned? To what extent will Russia continue to welcome the growth of China’s power — to the point of nuclear parity with the United States and, by extension with Russia itself?
Topic:
Foreign Policy, Treaties and Agreements, Bilateral Relations, Partnerships, Geopolitics, Alliance, and Emerging Powers
Political Geography:
Russia, China, Eurasia, Taiwan, Asia, Arctic, and United States of America

15. Answering Beijing’s Growing Assertiveness beyond the Senkakus: Balancing Japan-China Relations

Author:
Valerie Niquet
Publication Date:
05-2021
Content Type:
Policy Brief
Institution:
Japan Institute Of International Affairs (JIIA)
Abstract:
To Japanese authorities, there is no such thing as the “Senkaku question”. China is pursuing with increased assertiveness a strategy of coercion, using ambiguity and “grey zone” operations to put the onus of potential escalation on Tokyo.1 The vague and ambiguous nature of this strategic power play makes it all the more dangerous and complex. When Tokyo proclaims, with reason, that “the government continues to control and administer the territory by such means as patrolling and law enforcement,” it seeks to answer the permanent pressure that China exerts in the zone.2 However, the maintenance of the status quo, when China exerts an almost continuous pressure in the waters surrounding the Senkaku Islands and Japanese fishermen do not have access to part of Japan’s own national territory, poses other types of problems that the People’s Republic of China tries to exploit at the service of broader ambitions. It also poses a challenge in crisis management: how can the Japanese government be active and in control of situational developments, and not just reactive, without going as far as sparking a major incident in the East China Sea?
Topic:
International Relations, Bilateral Relations, Geopolitics, and Crisis Management
Political Geography:
Japan, China, and Asia

16. How difficult is China’s business environment for European and American companies?

Author:
Uri Dadush and Pauline Weil
Publication Date:
05-2021
Content Type:
Policy Brief
Institution:
Bruegel
Abstract:
Despite tensions over China’s discriminatory business practices, China’s trade continues to thrive, and the country has taken over from the United States as the first destination for foreign investment. American and European businesses continue to be engaged in China’s large and growing market, even amid a trade war between China and the United States. Drawing on surveys of companies and international comparisons, we show that – contrary to the prevailing narrative – China’s business practices have improved significantly in recent years. China’s business environment is today generally more favourable than that in other large countries at similar levels of development and, in some though certainly not all aspects, is in line with the Organisation for Economic Co-operation and Development average. Differences over geopolitics and human rights must be addressed, but it is clear that trade and investment agreements conditioned on accelerated reforms in China would yield substantial dividends. The benefits of such deals would accrue not only to foreign investors in China and exporters to China, but also to consumers and importers in the European Union and, especially, in the US, where punitive tariffs on China remain in effect. Critical aspects in the negotiations would include better access for American and European investors to China’s market for services and improved enforcement of rules and regulations in China. As in many middle-income countries, uneven enforcement of the law (rather than the law itself) remains a critical problem in China.
Topic:
Development, Bilateral Relations, European Union, Business, and Investment
Political Geography:
China, Europe, Asia, North America, and United States of America

17. Is the European Union’s investment agreement with China underrated?

Author:
Uri Dadush and André Sapir
Publication Date:
04-2021
Content Type:
Policy Brief
Institution:
Bruegel
Abstract:
The European Union is very open to foreign direct investment. By comparison, despite considerable liberalisation in the past two decades, foreign investors in China’s markets still face significant restrictions, especially in services sectors. Given this imbalance, the EU has long sought to improve the situation for its companies operating or wanting to operate in China. After eight years of negotiations, the EU and China concluded in December 2020 a bilateral Comprehensive Agreement on Investment (CAI). The text awaiting ratification aims to give foreign investors greater market access, enforceable via state-to-state dispute settlement. It does not yet, however, cover investor protection (such as against expropriation). Meanwhile, investor protection is covered by bilateral investment treaties between EU countries and China, which remain in force. The CAI has been met in some quarters with scepticism on economic and geopolitical grounds. The main criticism is that it provides little new market access in China, and that this small economic gain for the EU comes at the price of breaking ranks with its main political ally, the United States. Our assessment, which focuses on the economic implications, is different. It is true the CAI provides only modest new market access in China, but this is because China has already made progress in recent years in liberalising its foreign investment regulations unilaterally. The CAI binds this progress under an international treaty, marking an improvement for EU firms insofar as their market access rights can be effectively enforced. Most important, the CAI includes new rules on subsidies, state-owned enterprises, technology transfer and transparency, which will improve effective market access for EU firms operating in China. These bilateral new rules could also pave the way for reform of the multilateral rules under the World Trade Organisation, with the aim of better integrating China into the international trading and investment system – a goal shared by the EU, the United States and other like-minded countries. From an economic viewpoint therefore, the CAI is an important agreement, and one worth having. However, its ratification by the European Parliament is unlikely while China continues to apply sanctions against some members of the European Parliament and other critics of China’s human rights record.
Topic:
Science and Technology, Bilateral Relations, European Union, Investment, and Liberalization
Political Geography:
China and Europe

18. SOUTHCOM Commander ADM Faller on U.S.-China Strategic Competition in the Western Hemisphere

Author:
Craig S. Faller
Publication Date:
06-2021
Content Type:
Policy Brief
Institution:
Project 2049 Institute
Abstract:
The Project 2049 Institute is pleased to announce the publication of remarks made by Admiral Craig Faller at our recent event, “Near and Present Danger: SOUTHCOM Commander ADM Faller on U.S.-China Strategic Competition in the Western Hemisphere.” In his remarks, Admiral Faller addresses the Chinese Communist Party’s (CCP) ambitions in Latin America and the Caribbean, from both an economic and strategic perspective, which support its pursuit of global dominance and the imposition of authoritarian values on international institutions. In addition, Admiral Faller highlights SOUTHCOM’s recent activities in the Western Hemisphere and suggests a practical framework to develop and sustain trusted partnerships in the region that will promote democratic values in the face of CCP coercion.
Topic:
Bilateral Relations, Authoritarianism, Geopolitics, and Strategic Competition
Political Geography:
China, Asia, North America, and United States of America

19. Chinese-Australians in the Australian Public Service

Author:
Yang Jiang
Publication Date:
04-2021
Content Type:
Policy Brief
Institution:
Lowy Institute for International Policy
Abstract:
Almost every governmental policy decision made today has a China angle, and building understanding of China has become more pressing for Australian policymaking than ever. Despite the urgent demand within the Australian public service for China expertise and language skills, the existing skills of many Chinese-Australians are being overlooked. Australia has a significant, diverse, and growing population of Chinese-Australians, but they are underrepresented and underutilised in the public service. A better harnessing of the skills and knowledge of this community — including via improved recruitment processes, better use of data, skills-matching, and reviewing and clarifying security clearance processes and requirements — would have substantial benefits for Australian policymaking in one of its most important bilateral relationships.
Topic:
Foreign Policy, Government, Bilateral Relations, and Public Service
Political Geography:
China, Asia, and Australia

20. Nature and Nurture: How the Biden Administration Can Advance Ties With India

Author:
Anubhav Gupta
Publication Date:
01-2021
Content Type:
Policy Brief
Institution:
Asia Society
Abstract:
The state of the U.S.-India relationship is strong, but two critical developments in 2020 have created a new inflection point for the relationship. Growing apprehension in both New Delhi and Washington about Chinese aggression has created the strategic convergence long sought by a U.S. defense establishment eager to enlist India to balance China. On the other hand, devastated by the Covid-19 global pandemic, the United States and India face challenging economic recoveries amid growing protectionist sentiments at home that could diminish the relationship’s promise. Having won the U.S. presidential election, Joe Biden has an opportunity to consolidate and accelerate the relationship by creating a substantive and broad partnership with India, which can undergird U.S. policy in Asia and support U.S. global interests for decades to come. this paper provides a blueprint for how the Biden administration can actualize what previous presidents have deemed a “natural partnership.”
Topic:
Foreign Policy, Bilateral Relations, Partnerships, COVID-19, and Joe Biden
Political Geography:
China, India, and United States of America