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Begin New Search Political Geography China Content Type Policy Brief Publication Year within 25 Years Publication Year within 10 Years

101. Global Value Chains, Risk Perception, and Economic Statecraft

Author:
Phoebe Moon
Publication Date:
01-2022
Content Type:
Policy Brief
Institution:
University of California Institute on Global Conflict and Cooperation (IGCC)
Abstract:
Many countries, including the United States and China, have come to see economic statecraft as superior to armed conflict. Faced with a trading partner’s economic sanctions, some countries try to avoid risk by complying with or ignoring the coercer’s demands, but others retaliate and escalate conflict. In recent years, sanctions have been applied, not only to “rogue” states, but against trading partners. The United States and China, but also Japan, Australia, and Canada, were either the target or purveyor of economic coercion by or against trading partners in the last five years. However, not all resulted in trade wars. When, then, do economic sanctions lead to trade wars? This policy brief examines the ongoing Japan-South Korea trade dispute with a focus on how policymakers’ risk perceptions regarding global value chains (GVCs) can influence when trade wars take shape.
Topic:
Industrial Policy, National Security, Economy, Innovation, Global Value Chains, and Geoeconomics
Political Geography:
China, United States of America, and Indo-Pacific

102. Maximizing the Benefits of Trade for Africa

Author:
Prince Paa-Kwesi Heto
Publication Date:
03-2022
Content Type:
Policy Brief
Institution:
University of California Institute on Global Conflict and Cooperation (IGCC)
Abstract:
African countries are increasingly integrating into global supply chains (GSC). Yet the linkages between African and foreign firms and the impact of GSC activities on the development prospects of African states is not well understood. This policy brief analyzes GSC trade between the U.S. and China, on the one hand, and Southern African Customs Union (SACU) member states on the other. It shows that, contrary to the conventional wisdom that SACU states export raw materials with few value-added products, SACU states are actually positioned further up in the supply chain hierarchy. They import intermediate inputs from China and export a substantial volume of intermediate goods to the U.S. rather than to China. Moreover, GSC trade is diversifying the countries’ exports and increasing their industrial capacity, positioning African countries to attract companies moving out of China, whether because of high production costs, supply chain disruptions, U.S. tariffs, or geopolitical tension between the U.S. and China. But SACU states will need to adopt smart policies to upgrade existing supply chains and position themselves to build or attract new GSCs to their region.
Topic:
Industrial Policy, National Security, Innovation, Trade, and Geoeconomics
Political Geography:
Africa, China, and Asia

103. The Development Response to Kleptocracy and Strategic Corruption

Author:
Josh Rudolph
Publication Date:
01-2022
Content Type:
Policy Brief
Institution:
German Marshall Fund of the United States (GMFUS)
Abstract:
Kleptocracies do not stop at their own borders. The same actors, networks, tactics, and resources that they wield to prevent democracy and rule of law from sprouting at home are also repurposed for foreign aggression. While cronies, oligarchs, and lesser operatives do get rich in the process, “strategic corruption” is chiefly a geopolitical weapon directed by autocratic regimes to secretly undermine the sovereignty of other countries. The three most common manifestations of strategic corruption vary on a spectrum of how directly and boldly they violate sovereignty and subvert democratic processes. Starting with the most indirect and chronic form of strategic corruption, Russia and China invest “corrosive capital” throughout Eastern Europe and the Belt and Road Initiative, respectively. They use corrupt patronage networks and opaque business dealings to spread their kleptocratic model of authoritarian governance. Those corrupt investments are usually also supported by tactics of “malign influence,” like when a minister or politician receives bribes or economic threats until they censor their political speech, advance a foreign policy initiative, or otherwise subordinate the legitimate sovereign interests entrusted to them by their own people in favor of the interests of a foreign power. Finally, the most direct and acute form of strategic corruption involves financial methods of election interference and other tactics of corrupting democratic processes. Often funded with the proceeds of kleptocracy, election interference through covert political financing has become the bailiwick of Kremlin-directed oligarchs. Separate from those three manifestations of strategic corruption—corrosive capital, malign influence, and election interference—China and Russia try to hide their dirty money and malign activities by pressuring foreign journalists into silence through surveillance, thuggery, and lawsuits. Western foreign assistance has not yet offered a coherent response to kleptocracy and strategic corruption, but that is starting to change under the Biden administration. Building resilience to this transnational threat through foreign aid will require four new approaches that are more political and coordinated than traditional development assistance. First, aid should be informed by local political analysis. More important and less used than technical reviews of laws and institutions, political analysis should center anti-corruption efforts around known corrupt activity. That starts by asking sensitive questions about which individuals, institutions, and sectors are the most corrupt, how extensively their networks of wealth and power span, and which corrupt figures must be held accountable to thoroughly purge grand corruption. Second, aid should be responsive to political shifts, scaling up and down, respectively, in response to windows of opportunity for anti-corruption reform and times of backsliding toward kleptocracy. Third, aid responses to kleptocracy should be coordinated at the regional and global levels, similarly to how grand corruption operates across borders through transnational networks of actors and tools. Fourth, anti-corruption programming should be deeply integrated across the traditional sectors of assistance, particularly health, infrastructure, energy, climate, and security. Some of these new approaches are already being prioritized under the Biden administration’s new strategy to combat corruption, particularly coordinating across tools and sectors to fight transnational corruption. But operationalizing this mission will be no small endeavor, given that anti-corruption assistance is delivered through a notoriously technocratic and apolitical bureaucracy built during the Cold War to aid socioeconomic development in individual countries steadily over decades. But getting this right offers the key to defending democracies from autocratic aggression, showing how democracy can deliver, and even helping bring foreign policy and domestic politics into alignment for the first time in a generation.
Topic:
Corruption, Development, Finance, and Kleptocracy
Political Geography:
Russia, China, Eastern Europe, and Global Focus

104. Biden and Trade at Year One: The Reign of Polite Protectionism

Author:
James Bacchus
Publication Date:
04-2022
Content Type:
Policy Brief
Institution:
The Cato Institute
Abstract:
As a presidential candidate, Joe Biden promised a change from the go‐​it‐​alone, my‐​way‐​or‐​the‐​highway approach to trade policy of Donald Trump. Disappointingly, during the first year of his presidency, Biden has instead largely embraced the failed Trump policy of unilateralism and protectionism in trade. He and his administration have done so politely, without Trump’s bluster and bombast. Yet, the results have been mostly the same: a turn toward more trade protection and managed trade, toward a proposed industrial policy that would add more restrictions on trade, and toward a destructive unilateralism that threatens to continue undermining the multilateral trading system overseen by the World Trade Organization. If Biden continues to pursue this misguided trade policy, American recovery and prosperity are at risk. There is still time—at least three years—for him to end this reign of polite protectionism by framing and pursuing a new trade policy that will benefit all Americans: a policy that will achieve more trade liberalization, stop managed trade, halt trade‐​restrictive industrial policy, renew trade multilateralism, and give restored and unflinching support to the international rule of law in trade.
Topic:
Tariffs, Trade, Donald Trump, Protectionism, and Joe Biden
Political Geography:
China, Asia, North America, and United States of America

105. Policy Experimentation in China: The Political Economy of Policy Learning

Author:
Shaoda Wang and David Y. Yang
Publication Date:
05-2022
Content Type:
Policy Brief
Institution:
The Cato Institute
Abstract:
Determining what policies to implement and how to implement them is an essential government task. Policy learning is challenging, as policy effectiveness often hinges on the nature of the policy, its implementation, the degree that it is tailored to local conditions, and the efforts and incentives of local politicians to make the policy work.
Topic:
Political Economy, Politics, Policy Implementation, and Economic Policy
Political Geography:
China and Asia

106. China: An Economic and Political Outlook for 2022

Author:
Kevin Rudd
Publication Date:
01-2022
Content Type:
Policy Brief
Institution:
Asia Society
Abstract:
In recent years, Xi Jinping has taken China to the “left” politically and economically, but to the “right” with his deeply nationalist narratives at home and a more assertive foreign and security policy abroad. More recently, this has contributed to a slowdown in the Chinese economy and an increase in the level of political and policy reaction against Xi’s anti-market measures. Now, with last month’s Central Economic Work Conference, the Communist Party appears to have now acknowledged a number of Xi’s measures have indeed gone too far, especially as Xi himself seeks to maximize economic stability ahead of his bid for reappointment to another term in office at the 20th Party Congress this November. But whether these corrective measures will be enough to restore economic growth in the short term given the Chinese private sector is now “once bitten, twice shy” is another question altogether. In China: An Economic and Political Outlook for 2022 – Domestic Political Reaction to China’s Economic Slowdown ASPI President and CEO Kevin Rudd tackles these questions and provides an analysis of how China’s economic challenges are likely to shape its politics and policies in the year ahead.
Topic:
Foreign Policy, Politics, Economy, and Xi Jinping
Political Geography:
China and Asia

107. Raising the Curtain on China’s 20th Party Congress: Mechanics, Rules, “Norms,” and the Realities of Power

Author:
Christopher K Johnson
Publication Date:
08-2022
Content Type:
Policy Brief
Institution:
Asia Society
Abstract:
The Chinese Communist Party (CCP) is preparing to convene its 20th Party Congress in late 2022, and the party apparatus is already in full swing making the necessary arrangements for the political conclave, held every five years. President and CCP General Secretary Xi Jinping had hoped to tread an easy path toward an atypical third term in power, but unexpected events at home and abroad have complicated that trajectory. Xi would like the congress to mark the beginning of what could be a sustained period of strongman rule, making it one of the most consequential party gatherings in decades: Xi has spent his current term laying the groundwork for a major win at the 20th Party Congress. The regime’s key power centers are more beholden to him personally than they were five years ago, and Xi has orchestrated a methodical campaign of highly personalized aggrandization of his position within the leadership by garnering progressively more grandiose ideological laureates, making Xi and his policies very difficult to challenge. Xi’s third-term gambit leaves him in a much stronger position to dictate outcomes than his two immediate predecessors, Jiang Zemin and Hu Jintao, both of whom were preparing to step down from formal office at roughly the same time in their tenure. Xi has rewired the regime’s policymaking ecosystem to deemphasize the formal government bureaucracy, bolstering his ability to steer a course that is favorable to his personal and policy goals. Against this backdrop, this paper reviews the official building blocks that shape what is and is not permissible in CCP politics, as well the mechanics of producing a new top leadership lineup at each party congress, and considers whether these mechanisms might restrict Xi’s freedom of action despite his impressive accrual of personal power atop the CCP hierarchy.
Topic:
Domestic Politics, Norms, and Chinese Communist Party (CCP)
Political Geography:
China and Asia

108. 2022, Xi Jinping’s Annus Horribilis: Or is it?

Author:
Christopher K Johnson
Publication Date:
08-2022
Content Type:
Policy Brief
Institution:
Asia Society
Abstract:
The year 2022 is proving to be a difficult one for China and for President Xi Jinping. Choices like Xi’s embrace of Russia and the zero-COVID policy have prompted sporadic outbursts from the Chinese public and a backlash abroad. Unsurprisingly, this has spawned speculation that Xi is facing political difficulties at home that could hamstring or even disrupt his plan to remain China’s top leader after the 20th Party Congress later this year. Despite the real challenges Xi and the party have faced in 2022, however, this paper will argue that such narratives rest on a series of faulty assumptions about the impetus for Xi’s consolidation of power, the presence of powerful opposition voices within the Chinese Communist Party (CCP) system, and the judgment that Xi’s policy approach amounts to a series of blunders that may help his critics as they try to diminish him at the party congress.
Topic:
Economy, Domestic Politics, Olympics, Xi Jinping, and COVID-19
Political Geography:
Russia, China, and Asia

109. China’s Rise and U.S. Defense Implications

Author:
Marco Lyons and Natalia Angel
Publication Date:
01-2022
Content Type:
Policy Brief
Institution:
Belfer Center for Science and International Affairs, Harvard University
Abstract:
What are the international implications of China’s rise? What developments may be expected, and what should U.S. national defense leaders do about the likely effects of these developments? China is a rising power but even if that cannot be said to translate into a security threat to the United States directly, there is little reason to believe that Beijing will not take action to get out from under what it perceives as unfriendly U.S.-led global diplomatic, economic, and security orders. In very broad terms, U.S. defense policy makers will need to address the change from military capabilities for enforcing a liberal international order, to capabilities for both advancing and protecting friendly regional or even sub-regional orders. China’s potential power is sizable and increasing based on a large population and growing national wealth and this potential power makes its neighbors fear that it will become the regional hegemon. Since other states in the region cannot predict if or when Beijing will make a bid for hegemony, relations are beset with uncertainty. Weaker neighbors, like Vietnam and Laos in Southeast Asia, can be expected to accommodate Beijing more while trying to benefit from Chinese economic growth when and where possible.1 The U.S. security allies can be expected to cooperate more with each other while calling for more visible displays of U.S. commitment (including more military force presence).2 India will become more important to U.S. strategy as a link between Australia and Thailand, and the Middle East and Central Asia, and the Pacific and Indian Oceans.
Topic:
Security, Defense Policy, and International Security
Political Geography:
China and United States of America

110. Forging European Unity on China: The Case of Hungarian Dissent

Author:
Ties Dams
Publication Date:
04-2022
Content Type:
Policy Brief
Institution:
Clingendael Netherlands Institute of International Relations
Abstract:
EU Member states can be divided on China, even on issues such as human rights. Often singled out as an agent of division is the Hungarian government of prime minister Viktor Orbán. Hungarian dissent begs the question: how can the EU move forward on China given Hungary’s strategy of obstructive dissent? European cooperation ought not wait for unanimity, nor should it rely on value-politics: member states should play the power game to circumvent or break lingering impasses. Member States should support setting up a 27+1 Forum as the main platform for European China-policy, form a leading group tackling strategic corruption and corrosive capital, and initiative a track 1.5 dialogue on China with Germany and the Visegrád Countries.
Topic:
Foreign Policy, Corruption, Human Rights, and European Union
Political Geography:
China, Europe, Asia, and Hungary

111. Ukraine: Toward a Prolonged War of Attrition Fuelling Great Power Competition

Author:
Al Jazeera Center for Studies
Publication Date:
08-2022
Content Type:
Policy Brief
Institution:
Al Jazeera Center for Studies
Abstract:
Russia and China no longer need to play by the rules of the Euro-American international order. It is therefore likely that in this uncertain period of flux, the major four powers will vie to win friends and allies, giving second-tier powers like Turkey and India more influence if they can ably manage their foreign relations and avoid unnecessary alignment with any of the four major powers.
Topic:
International Relations, Foreign Policy, Power Politics, Strategic Competition, and Russia-Ukraine War
Political Geography:
Russia, China, Ukraine, and Eastern Europe

112. Economic Equidistance is Not an Option: Germany and the US-Chinese Geo-Economic Conflict

Author:
Markus Jaeger
Publication Date:
01-2022
Content Type:
Policy Brief
Institution:
German Council on Foreign Relations (DGAP)
Abstract:
Intensifying US-Chinese rivalry will increase pressure on Germany to support a more hawkish US geo-economic policy. The new ­German government should give Washington support in as far as US policies seek to create an economic level playing field vis-à-vis China. Given its dependence on international trade and investment, Germany should seek to resist a broader politicization of inter­national economic relations.
Topic:
Economics, International Trade and Finance, Geopolitics, and Rivalry
Political Geography:
China, Germany, and United States of America

113. Japan's "Economic Security" Measures

Author:
Didi Kirsten Tatlow and Afra Herr
Publication Date:
02-2022
Content Type:
Policy Brief
Institution:
German Council on Foreign Relations (DGAP)
Abstract:
Japan and Germany face an acute dilemma. China, a key trading partner for both nations, uses political warfare and economic statecraft to advance its interests. Like Germany, Japan has a strong SME economy and auto industry, and has dependencies on China. Yet Japan faces more risk due to its geographical proximity to China and territorial disputes. As global tensions grow, Japan is responding robustly by building economic security. Germany, together with the EU and other like-minded partners, should do the same.
Topic:
Security, Economics, Politics, and Trade
Political Geography:
Japan, China, Asia, and Germany

114. Promoting the Euro – Countering Secondary Sanctions: Germany Should Push to Complete Monetary Union

Author:
Markus Jaeger
Publication Date:
02-2022
Content Type:
Policy Brief
Institution:
German Council on Foreign Relations (DGAP)
Abstract:
US-Chinese rivalry will increasingly play out in the geo-economic realm. The use of secondary sanctions – especially secondary dollar sanctions – negatively affects German economic interests. The new German government should therefore intensify efforts to promote the euro as an international currency coequal to the dollar in addition to lending its qualified support to EU anti-coercion policies.
Topic:
Economics, Sanctions, European Union, Rivalry, and Geoeconomics
Political Geography:
China, Asia, and United States of America

115. The Economics of Great Power Competition: Why Germany Must Step Up on Defense

Author:
Markus Jaeger
Publication Date:
05-2022
Content Type:
Policy Brief
Institution:
German Council on Foreign Relations (DGAP)
Abstract:
Without a sound economic foundation, political and military ambitions cannot be sustained. This also applies to the geopolitical competition between the United States and its rivals. So far, America and its allies are economically ahead of Russia and China. But where Russia’s long-term outlook is weak, China’s economic might is rapidly increasing. Despite the war in Ukraine, Washington will have to focus its resources on Asia. In Europe, Germany, with its large financial and economic base, should lead on military spending and enhanced security.
Topic:
NATO, Geopolitics, Geoeconomics, and Competition
Political Geography:
Russia, China, Europe, Germany, and United States of America

116. China’s Global Vision Vacuum: An Opportunity and Challenge for Europe

Author:
Tim Rühlig
Publication Date:
08-2022
Content Type:
Policy Brief
Institution:
German Council on Foreign Relations (DGAP)
Abstract:
China seems to strive to redefine the global order around sovereignty and a strong state. Yet is China engaging in a constitutive process shaped by the global economy; or is it an imperial power pursuing national sovereignty at any cost? In the West, there are very different answers to this question. This ambiguity is not by design but rather indicates that China lacks a coherent vision for the world. If the EU is to exploit this, it needs to understand why.
Topic:
Sovereignty, Economy, and International Order
Political Geography:
China, Europe, and Asia

117. Ending Primacy to End U.S. Wars

Author:
Daniel Bessner
Publication Date:
04-2022
Content Type:
Policy Brief
Institution:
Quincy Institute for Responsible Statecraft
Abstract:
• If America’s decision-makers are to learn from the Iraq War (2003–11), they must recognize it not as an aberration or an isolated mistake, but as a direct consequence of the U.S. search for primacy in the Middle East. The Iraq War was overdetermined in that tensions between the U.S. and Iraq were rooted fundamentally in Iraq’s perceived challenge to U.S. regional dominance. Consequently, in the “unipolar moment,” a U.S. effort to change the regime in Baghdad was bound to occur after some spark, such as the September 11 attacks, set it in motion. • Today, a similar desire to sustain dominance in Asia places the U.S. on a collision course with China. To avoid war with China, policy elites must reconceive their commitment to primacy and recognize that the United States will not be able to dictate terms in its relations with others in an emergent multipolar world. • Some competition between the United States and China is probably inevitable. But this competition does not present an existential threat to the U.S. and therefore must not be allowed to prevent necessary cooperation to address the major threats of the 21st century: inequality, population movements, pandemics, and climate change.
Topic:
War, History, Hegemony, Military Intervention, and Gulf War
Political Geography:
China, Middle East, and United States of America

118. The Folly of Pushing South Korea Toward a China Containment Strategy

Author:
Jessica J. Lee and Sarang Shidore
Publication Date:
05-2022
Content Type:
Policy Brief
Institution:
Quincy Institute for Responsible Statecraft
Abstract:
The narrow victory of conservative candidate Yoon Suk-yeol in the recent South Korean presidential election comes against the backdrop of an intensifying U.S.-China rivalry, now compounded by the Ukraine crisis. Washington would like South Korea to play a security role in its Indo-Pacific strategy — a strategy that effectively aims to contain China. However, South Korean elites (and the general public) are deeply ambivalent and internally divided on the question of containing China. Pushing South Korea — a robust democracy with major elite divisions — toward containing Beijing risks negative consequences for the United States. These include a reduction in U.S. influence in South Korea, erosion of the U.S.-South Korea alliance, a less-effective South Korean presence in the region, and, in the long run, the potential of South Korean neutrality with respect to China. To avoid these negative outcomes for the United States, Washington should: • Avoid pressuring South Korea to join its China-containment strategy, • Refrain from including Seoul in emerging, non-inclusive, bloc-like structures of U.S. allies in Asia, • Consider pulling back on its intended new Terminal High Altitude Area Defense deployments until a greater consensus is reached within South Korea on the issue, • See South Korea’s role as a bridge and an opportunity to stabilize Washington’s own relationship with Beijing. For example, both South Korea and China could be included in non-traditional security activities of the Quad such as infrastructure and climate change, and • More generally, demilitarize the Quad and open it to wider participation for strengthening U.S. influence in Asia, rather than see it as a zero-sum vehicle for containing China.
Topic:
Security, Foreign Policy, Diplomacy, Containment, and Quad Alliance
Political Geography:
China, Asia, South Korea, North America, and United States of America

119. Development Competition is Heating Up: China’s Global Development Initiative and the G7 Partnership for Infrastructure and Global Alliance on Food Security

Author:
Sarah Cliffe and Karina Gerlach
Publication Date:
07-2022
Content Type:
Policy Brief
Institution:
Center on International Cooperation
Abstract:
Economic development issues are becoming increasingly geopolitical, as the form and importance of today’s agreement in Turkey on grain exports between Russia and Ukraine demonstrates. While today’s crucial agreement and the war of food security narratives between Russia and the West rightly grab the latest headlines, outside of the media spotlight development competition is also heating up between China and the West.
Topic:
Development, Infrastructure, Food Security, Strategic Competition, and Russia-Ukraine War
Political Geography:
Russia, China, Turkey, and Ukraine

120. Memo on an "Economic Article 5" to Counter Authoritarian Coercion

Author:
Ivo H. Daalder and Anders Fogh Rasmussen
Publication Date:
06-2022
Content Type:
Policy Brief
Institution:
Chicago Council on Global Affairs
Abstract:
The world's democracies need a way to fight back against coercive economic actions by authoritarian governments, argue Ivo Daalder and Anders Fogh Rasmussen. Increasingly, authoritarian countries are using economic coercion against democracies. In recent years, China’s economic coercion of Lithuania and Australia stands out as a prominent example. Russia uses economic levers to achieve geopolitical aims, notably by weaponizing its natural resources. The aim of such coercion is to bend the will of democratic countries. This is a test for the free world. In response, we propose an Economic Article 5 among democracies to counter authoritarian coercion.
Topic:
Foreign Policy, Authoritarianism, Economy, Business, and Trade
Political Geography:
Russia, China, Asia, North America, and United States of America

121. Health of nations: How Europe can fight future pandemics

Author:
Anthony Dworkin
Publication Date:
02-2022
Content Type:
Policy Brief
Institution:
European Council on Foreign Relations (ECFR)
Abstract:
As the crisis phase of covid-19 recedes, there is a chance to improve international cooperation on global health – but also a danger that competing reform proposals will lead to inaction. The EU can best support reform of pandemic preparedness and response if it takes account of the concerns of different global powers. The union should combine a push for reform of and increased funding for the WHO with support for a new fund for health emergencies, overseen by a representative group of countries. The EU should promote a new global compact on health, matching countries’ commitment to surveillance and reporting of pathogens with support for stronger healthcare systems and greater equity in the allocation of countermeasures. The EU-Africa relationship offers a chance to pioneer such an approach, but the EU will need to go further in this than it has so far. The EU should promote African vaccine manufacturing, including by pressing European pharmaceutical companies to transfer knowledge and technology to Africa.
Topic:
Health, European Union, Pandemic, and COVID-19
Political Geography:
Africa, Russia, China, Europe, India, and United States of America

122. Let a thousand contacts bloom: How China competes for influence in Bulgaria

Author:
Vladimir Shopov
Publication Date:
03-2022
Content Type:
Policy Brief
Institution:
European Council on Foreign Relations (ECFR)
Abstract:
China is a geopolitical latecomer to Bulgaria, having traditionally shown more interest in other countries in south-eastern Europe. Beijing has long struggled to gain influence in Bulgaria due to the country’s EU membership and entrenched interests in sectors such as infrastructure and energy. China has responded to this challenge by adopting a multi-track strategy of engagement with state and non-state actors at the national and subnational levels. Beijing has significantly expanded its subnational cooperation with Bulgaria in areas such as culture, education, agriculture, research, public procurement, and e-governance. China has focused on strengthening its frameworks of cooperation and building relationships with local elites to circumvent national policies. China’s growing presence in Bulgaria has concerning implications in areas such as technology transfers, agriculture, research, ‘smart city’ and governance projects, control of critical infrastructure, and public procurement.
Topic:
Foreign Policy, Diplomacy, International Cooperation, and European Union
Political Geography:
China, Europe, Asia, and Bulgaria

123. Principled pragmatism: Europe’s place in a multipolar Middle East

Author:
Julien Barnes-Dacey and Hugh Lovatt
Publication Date:
04-2022
Content Type:
Policy Brief
Institution:
European Council on Foreign Relations (ECFR)
Abstract:
A multipolar Middle East is emerging as the US “right-sizes” its posture in the region – and as regional states and external powers, including Russia and China, become more assertive. Russia’s war on Ukraine is accelerating these dynamics, while also provoking destabilising price shocks and underscoring the region’s importance to energy markets. The Middle East’s geopolitical shifts pose huge challenges to Europe, but multipolarity could create space to promote European interests more effectively. A coherent European approach should be guided by principled pragmatism: acknowledging the region as it is rather than as Europeans want it to be, while staying focused on the principles needed to secure longer-term stability. Europeans need to enhance transatlantic complementarity and stop ceding leverage to their Middle Eastern partners. While they compete for influence with Russia and China, they should maintain room for coordination with both countries. Europe should tap into the opportunities created by stabilisation support, green energy, and economic diversification – areas that could provide an edge over China.
Topic:
Foreign Policy, Geopolitics, Multipolarity, Strategic Interests, Pragmatism, and Regional Politics
Political Geography:
Russia, China, Europe, Ukraine, Middle East, North America, and United States of America

124. Byting back: The EU’s digital alliance with Latin America and the Caribbean

Author:
Carla Hobbs and José I. Torreblanca
Publication Date:
10-2022
Content Type:
Policy Brief
Institution:
European Council on Foreign Relations (ECFR)
Abstract:
China’s and Russia’s growing presence in Latin America and the Caribbean undermines democracy and Western influence in the region, along with the international rules-based order. The EU is responding to this threat by attempting to strengthen its relationships with Latin American and Caribbean countries. The bloc is attempting to build on their affinity for European values and rights, as well their preference for sustainable and inclusive development. Cooperation on digital technologies should be a priority in the effort, given the region’s need for greater connectivity. The Spanish presidency of the EU should lead the formation of a Digital Alliance with Latin America and the Caribbean at a summit scheduled for 2023. The EU can make this alliance work by focusing on connectivity investments, cyber-security, and rights to support Latin American countries’ digital transitions. The alliance will also require a long-term vision within the EU, commitments from member states, leadership by several Latin American countries, and public-private investment partnerships.
Topic:
European Union, Democracy, Alliance, and Digital Policy
Political Geography:
Russia, China, Europe, and Latin America

125. How to Respond to China’s Growing Influence in the Gulf

Author:
Louis Dugit-Gros
Publication Date:
07-2022
Content Type:
Policy Brief
Institution:
The Washington Institute for Near East Policy
Abstract:
Beijing’s use of intertwined civil and military tools in the Gulf mirrors its activity closer to home, but the West can readily counter this influence by capitalizing on the region’s desire for diversified partnerships. While the Biden administration works to repair ties with Persian Gulf partners in the wake of Russia’s Ukraine invasion, China is getting more attention for its expanding influence in the Indo-Pacific region, including recent reports of naval deals and military activity in the Solomon Islands and Cambodia. Some commentators have even criticized the White House for letting its resolve against Moscow supposedly delay the long-awaited “pivot to Asia” sought by three successive U.S. administrations. Yet talk of the “pivot” often oversimplifies the geopolitical situation, in particular by ignoring China’s progress in the Gulf. The pivot theory relies on the assumption that Beijing is mainly ramping up its influence in its own neighborhood. In reality, the Chinese strategy is global, and the methods it applies in the Indo-Pacific are being used in similar fashion elsewhere, including the Gulf. Such activities merit closer attention from the West even if they are not the number-one priority at the moment.
Topic:
Security, Economics, Strategic Competition, Military, and Energy
Political Geography:
China, Asia, and Gulf Nations

126. Ukraine and China: Russian Invasion and After

Author:
Vivienne Bath, Rowan Callick, Raffaello Pantucci, Bing Ling, and Jingdong Yuan
Publication Date:
03-2022
Content Type:
Policy Brief
Institution:
China Studies Centre, The University of Sydney
Abstract:
This Understanding China Brief results from a roundtable discussion organized by the China Studies Centre and the Centre for Asia and Pacific Law of Sydney University on 10 March 2022 to examine the legal, political, economic, and international relations issues surrounding China arising from Russia’s invasion of Ukraine.
Topic:
Security, Defense Policy, International Cooperation, Military Strategy, and Russia-Ukraine War
Political Geography:
Russia, China, Europe, Ukraine, and Asia

127. Why China’s Zero Covid Strategy Might Underwrite China’s High-Quality Development and Common Prosperity Agendas – At Home and Away

Author:
Lauren Johnston
Publication Date:
06-2022
Content Type:
Policy Brief
Institution:
China Studies Centre, The University of Sydney
Abstract:
The more than month-long strict ‘Zero-Covid19’ lockdown of Shanghai from April 1, 2022, drew international attention for the fact that one of the world’s richest and most trade-connected cities in the world even could be so shutdown. Economists have expressed fear that the scale of the disruption to China’s middle-class elite and to global supply chains may have lasting negative impacts for China’s economy and globalisation. In a case of making hay while the lockdown sun shines, however, while residents of Shanghai and to some extent also Beijing, have been locked inside, Beijing has been busy announcing some new hukou-related educational and civil administrative reforms. In total contrast to locking Chinese down, these may ultimately and in contrast come to underpin a far more mobile Chinese labour force, a more competitive business environment within China, and even more mobility of Chinese citizens globally. In this way, far from being incongruent with China’s economic development or globalisation, via the parallel hukou-related reforms that took place alongside the distraction of COVID19 lockdowns of early 2022, these may prove to have served to underpin not only China’s ‘high-quality development’ and ‘common prosperity’ agendas, but even the fluidity of the Belt and Road Initiative.
Topic:
Governance, Public Health, Pandemic, and COVID-19
Political Geography:
China and Asia

128. What now for Australia-China relations?

Author:
The University of Sydney China Studies Centre
Publication Date:
06-2022
Content Type:
Policy Brief
Institution:
China Studies Centre, The University of Sydney
Abstract:
After the May Federal Election, Labor Party leader Anthony Albanese was sworn in as the new Prime Minister of Australia. What could this change in government mean for future Australia-China relations? At the China Studies Centre event on 3 June, four experts and practitioners in Australia-China relations discussed the bilateral relations over the past few years and the prospects for future political, social and economic interactions.
Topic:
International Relations, Security, Foreign Policy, Diplomacy, Bilateral Relations, and Conflict
Political Geography:
China, Asia, and Australia

129. China’s international higher education environment: change and stasis

Author:
The University of Sydney China Studies Centre
Publication Date:
08-2022
Content Type:
Policy Brief
Institution:
China Studies Centre, The University of Sydney
Abstract:
It seems that China’s international higher education environment may be changing. This roundtable discussion focuses on the following 4 topics: 1. Several of China’s leading universities have announced their withdrawal from international ranking schemes. How do more China-focussed measures of performance feed into the push for world-class universities. 2. There seems to be a push to discourage Chinese students from going overseas for international education opportunities, as for example in the postponement of US placement exams and continuing concerns about Covid-19 pandemic control. Is this likely to continue, and if so for how long and under what conditions 3. What are the prospects for recruitment of Chinese students to Australian universities. 4. What are the prospects for China’s international cooperation in higher education, both in research and in delivery of joint venture programs and institutions in China. The discussion was chaired and moderated by Anthony Welch of Sydney School of Education and Social Work, the University of Sydney, and the speakers include academic managers and leaders, academics with an interest in international higher education (China’s and more generally), and those with experience of joint venture higher education institutions.
Topic:
Education, Higher Education, COVID-19, and Study Abroad
Political Geography:
China and Asia

130. Post 20th CCP Congress Roundtable

Author:
The University of Sydney China Studies Centre
Publication Date:
10-2022
Content Type:
Policy Brief
Institution:
China Studies Centre, The University of Sydney
Abstract:
The 20th Congress of the Communist Party of China met in Beijing starting 16 October. The last five years since the 19th Congress have seen fairly important changes in the political environment, including the deterioration of relations with the USA, the challenges of dealing with the pandemic, and an economic slowdown. The Congress has adopted the various reports presented and announced the new CCP leadership line-up. On Monday 31st October the China Studies Centre hosted an online Roundtable discussion of the main outcomes of the Congress.
Topic:
Governance, Ideology, Transition, and Chinese Communist Party (CCP)
Political Geography:
China and Asia

131. Xi Jinping Boosts the Party’s Control and His Own Authority

Author:
Willy Wo-Lap Lam
Publication Date:
01-2021
Content Type:
Policy Brief
Institution:
The Jamestown Foundation
Abstract:
Under Xi Jinping, the leadership of the People’s Republic of China (PRC) has initiated multi-pronged measures to ensure the success of celebrations marking the centenary of the establishment of the Chinese Communist Party (CCP) in July this year and planning for the 20th CCP Congress, scheduled for the second half of 2022. The accent is on preserving political stability and further consolidating the apparently unassailable authority of President Xi, who is also CCP General Secretary and Chairman of the Central Military Commission (CMC).
Topic:
Media, Political Parties, and Chinese Communist Party (CCP)
Political Geography:
China and Asia

132. Winter Coal Shortages Reveal Chinese Energy Vulnerabilities

Author:
Elizabeth Chen
Publication Date:
01-2021
Content Type:
Policy Brief
Institution:
The Jamestown Foundation
Abstract:
Amid the coldest winter recorded since 1966, provinces across the People’s Republic of China (PRC) struggled with the worst electrical blackouts seen in nearly a decade (OilPrice, January 8). More than a dozen cities across Zhejiang, Hunan, Jiangxi, Shaanxi, Inner Mongolia, and Guangdong provinces imposed limits on off-peak electricity usage in early December, affecting city infrastructure and factory production. Analysts expect power shortages to persist through at least mid-February (SCMP, December 23, 2020). Officials have repeatedly assured the public that residential heating would not be affected and that China’s electrical supply remained “stable” and “sufficient,” even as energy spot prices continued to rise into the new year.
Topic:
Energy Policy, Services, Electricity, and Coal
Political Geography:
China and Asia

133. Early Warning Brief: Introducing the “New, New” China Coast Guard

Author:
Ryan D. Martinson
Publication Date:
01-2021
Content Type:
Policy Brief
Institution:
The Jamestown Foundation
Abstract:
In the past decade, the China Coast Guard (CCG, 中国海警, zhongguo haijing) has experienced two major reforms. The first, which began in 2013, uprooted the service from the Ministry of Public Security—where it was organized as an element of the People’s Armed Police (PAP)—and placed it under the control of the State Oceanic Administration (SOA), a civilian agency. In the process, the CCG was combined with three other maritime law enforcement forces: China Marine Surveillance (CMS), China Fisheries Law Enforcement (CFLE), and the maritime anti-smuggling units of the General Administration of Customs. The resulting conglomerate was colloquially called the “new” CCG, differentiating it from the “old” CCG of the Ministry of Public Security years. The second reform began in 2018, when the “new” CCG, now swollen with the ranks of four different forces, was stripped from the SOA and transferred to the PAP, which itself had just been reorganized and placed under the Central Military Commission (CMC) (China Brief, April 24, 2018). While much research has been done on the first reform, little is known about the second, at least in the English-speaking world. This article seeks to answer basic questions about the “new, new” CCG. What are its roles/missions, organization, and force structure? How does it differ from the CCG of the SOA years? How is it similar? What progress has been made two years after the second reform began?
Topic:
Law Enforcement, Armed Forces, Reform, and Borders
Political Geography:
China and Asia

134. The Rollback of Human Rights and the Rule of Law in Hong Kong

Author:
Michael C. Davis
Publication Date:
02-2021
Content Type:
Policy Brief
Institution:
The Jamestown Foundation
Abstract:
After the Hong Kong protest movement exploded in 2019, the world looked on with both hope and trepidation. Protestors made five demands: that a proposed extradition law be withdrawn; that there be an independent investigation of police behavior; that the protests stop being characterized as riots; that any charges against arrested protesters be dropped and that promised universal suffrage be implemented (HKPF, December 25, 2019). After months of protest, Hong Kong Chief Executive Carrie Lam publicly withdrew the extradition bill, fulfilling the first of the protestors’ demands (SCMP, September 4, 2019). But this temporary victory was too little too late and overshadowed by the ongoing and often violent crackdown on the protesters, and then in 2020, with Beijing’s imposition of the new National Security Law (NSL) (China Brief, July 29, 2020).
Topic:
Human Rights, Law, Rule of Law, Protests, and Repression
Political Geography:
China, Asia, and Hong Kong

135. Chinese COVID-19 Misinformation A Year Later

Author:
Elizabeth Chen
Publication Date:
02-2021
Content Type:
Policy Brief
Institution:
The Jamestown Foundation
Abstract:
On January 28, members of an international team led by the World Health Organization (WHO) concluded fourteen days of quarantine and began field work in Wuhan, China for a mission aimed at investigating the origins of the COVID-19 pandemic. As of the time of writing, the team had made visits to the Hubei Center for Disease Control and Prevention; the Wuhan Institute of Virology (WIV) and the Huanan Seafood Wholesale Market. State media also reported that the WHO team visited “an exhibition featuring Chinese people fighting the epidemic,” raising concerns that the trip could prove to be little more than a public relations move even as the origins of the coronavirus remain heavily politicized and uncertain (Global Times, January 31). Foreign experts have worried about whether the WHO investigation will be sufficiently transparent or if investigators will be allowed adequate access to key locations and scientific data (SCMP, January 27). Apart from a “terms of reference” report and a list of WHO members released in November, further details on the WHO team’s trip have not been released.
Topic:
World Health Organization, COVID-19, Misinformation, and Health Crisis
Political Geography:
China and Asia

136. China’s Use of U.S. Satellite Communications Technology in the South China Sea

Author:
Zachary Haver
Publication Date:
02-2021
Content Type:
Policy Brief
Institution:
The Jamestown Foundation
Abstract:
In recent years, the maritime law enforcement (MLE) forces of the People’s Republic of China (PRC) have dominated the contested waters of the South China Sea (AMTI, December 4, 2020). While the exponential growth and increasing assertiveness of the China Coast Guard (CCG) have captured headlines, the evolving role of technology in China’s MLE operations has received less attention. New communications infrastructure and monitoring systems, for example, help Chinese MLE forces monitor and control contested maritime space in the South China Sea (CMSI, January 2021). These investments align with China’s broader pursuit of information superiority in the South China Sea, which involves building up electronic intelligence, counter-stealth radar, and other capabilities (JHU APL, July 2020).
Topic:
Science and Technology, Communications, Armed Forces, and Satellite
Political Geography:
China, Asia, United States of America, and South China Sea

137. Tracking the Digital Component of the BRI in Central Asia, Part One: Exporting “Safe Cities” to Uzbekistan

Author:
Sergey Sukhankin
Publication Date:
02-2021
Content Type:
Policy Brief
Institution:
The Jamestown Foundation
Abstract:
Following the 2013 announcement of the Belt and Road Initiative (BRI) at a speech given by People’s Republic of China President Xi Jinping during visit to Kazakhstan, Central Asia has been a key regional priority and an indispensable element for the success of the BRI as a whole (PRC Ministry of Foreign Affairs, September 7, 2013). Over the years, the BRI—nebulously defined from the start—has come to be associated with a variety of policy and investment programs. A previous series of articles has covered security-related developments associated with the BRI aimed at maintaining stability and protecting economic investments across the region (China Brief July 15; October 19; August 12).China has also begun to expand its export of digital infrastructure and surveillance technology under the umbrella of the BRI. The digitalization strategy—ostensibly aimed at promoting the international integration of technology with infrastructure and finance as well as spreading digital innovation abroad—is often referred to as the Digital Silk Road (DSR, 数字丝绸之路, shuzi sichou zhi lu). The high-level emphasis on promoting the DSR has only grown under the COVID-19 pandemic (CGTN, June 10, 2020). Across Central Asia, the DSR has been primarily represented by efforts to export China’s Smart/Safe City programs, which allow governments to collect, store, process and analyze vast amounts of personal information. The promotion of the so-called “informatization” of society (信息化, xinxi hua) and data commodification are yet more driving forces behind China’s DSR ambitions in Central Asia.
Topic:
Science and Technology, Surveillance, Belt and Road Initiative (BRI), and Digital Policy
Political Geography:
China, Central Asia, Asia, and Uzbekistan

138. An Overlooked Source of Chinese Influence in Latin America

Author:
Linda Zhang and Ryan Berg
Publication Date:
02-2021
Content Type:
Policy Brief
Institution:
The Jamestown Foundation
Abstract:
The People’s Republic of China’s (PRC) engagement in Latin America and the Caribbean (LAC) is drawing increased scrutiny from U.S. policymakers. The International Liaison Department of the Central Committee of the Chinese Communist Party (ILD) (中共中央对外联络部, zhonggong zhongyang duiwai lianluo bu) is one of the many Chinese organizations active in LAC. Although its footprint is relatively small compared to larger trade and governmental organizations, the ILD’s emphasis on ideology and on long-term relationship building in its engagements is noteworthy and should be monitored more closely within the context of China-Latin America relations.
Topic:
Foreign Policy, International Affairs, Political Parties, and Chinese Communist Party (CCP)
Political Geography:
China, Asia, and Latin America

139. Chinese Demographic Signals Bode Ill for Future Development

Author:
Elizabeth Chen
Publication Date:
02-2021
Content Type:
Policy Brief
Institution:
The Jamestown Foundation
Abstract:
A new study published February 8 by the Ministry of Public Security of the People’s Republic of China (PRC) (MPS, 中华人民共和国公安部, zhonghua renmin gongheguo gongan bu) reported that there were 10.035 million registered births in 2020, down from 11.79 million in 2019. This represents a 15 percent decrease following the coronavirus pandemic (Guancha.cn, February 8). Althou­gh the number of registered births—that is, newborns recorded in the household registration hukou (户口) system—is not the same as China’s official birth rate, the decline has concerned analysts that a long-forewarned demographic crisis may be approaching faster than expected.National birth and population figures for the previous year are usually released in January but have been delayed until April this year as China’s National Bureau of Statistics (NBS) compiles its decennial census. In the meantime, data released by some provinces and cities in January has appeared to confirm the implications of the MPS study. Data released from the capital city of Guangdong province—which saw the highest number of births per province in 2019—showed that birth rates in Guangzhou were down by 17 percent year-on-year and mirrored broader trends across the rest of the province. In Zhejiang, China’s wealthiest province, the cities of Wenzhou and Taizhou reported that new births in 2020 fell by 19 percent and 33 percent respectively compared to 2019 (SCMP, February 2).
Topic:
Demographics, Development, Aging, and Population Growth
Political Geography:
China and Asia

140. Buying Silence: The Price of Internet Censorship in China

Author:
Ryan Fedasiuk
Publication Date:
01-2021
Content Type:
Policy Brief
Institution:
The Jamestown Foundation
Abstract:
On Monday, November 12, 2018, the recently-appointed director of China’s Central Cyberspace Affairs Commission (CAC) Zhuang Rongwen (庄荣文) summoned senior executives from WeChat and Sina Weibo for a “discussion” (Central CAC, November 16, 2018). While there is no transcript of the meeting available to the public, one thing is certain: It did not go well. For months, Zhuang had been telegraphing his discontent with the state of censorship in China—and specifically, the role that social media giants had played in undermining it (New America, September 24, 2018). His official statement about the meeting, which was uploaded to the CAC’s website a few days later, accused China’s largest internet companies of “breeding chaos in the media” and “endangering social stability and the interests of the masses.” Under his watch, he vowed that the Central CAC would “strictly investigate and deal with the enterprises that lack responsibility and have serious problems” (Central CAC, November 20, 2018). Rarely do Party officials offer such scathing public admonitions.
Topic:
Science and Technology, Internet, Surveillance, and Censorship
Political Geography:
China and Asia

141. AUKUS Security Pact: Setting the Rivalry with China in the Indo-Pacific

Author:
Krševan Antun Dujmović
Publication Date:
12-2021
Content Type:
Policy Brief
Institution:
Institute for Development and International Relations (IRMO)
Abstract:
The announcement of the trilateral security pact between Australia, the United Kingdom, and the United States, known by the acronym AUKUS, intended to enhance cooperation between the three countries in the Indo- Pacific region in defense and security, has sent shockwaves throughout the world, especially the UK for the Royal Navy of Australia. The nuclear fueled submarines will be armed by conventional weapons, the number of acquired vessels will be at least eight, and as a typically Australian request, part of the vessels will be constructed in Australia’s naval shipyards. So far, the US, the UK, Russia, China, France in China and Europe. The key element of the AUKUS pact, signed on 15th September 2021, is the acquisition of nuclear-powered submarines from the US and and India are the only six countries that have commissioned nuclear-powered submarines. Furthermore, before signing the AUKUS pact, the UK was the only country in the world with which the US was sharing the nuclear propulsion technology, under the Mutual Defense Agreement signed back in 1958. The supply of Australia with British and American nuclear-powered attack submarines, as the most delicate part of the AUKUS pact, attracted by far the most of media attention and provoked China’s aggressive reaction. Even more, the three nations security pact, which is in principal intended to bring “enhanced trilateral security partnership for the 21st century”, has made Beijing particularly worried as China fears that this triple alliance is pointed directly against it. The three countries intend to step up their cooperation in the security and defense sector, and apart from cooperation in industrial production of new military equipment, AUKUS also envisages a broad cooperation in the fields where the three countries feel particularly threatened by China’s staggering growth, and they include cyber security, quantum computing and artificial intelligence.
Topic:
Security, International Cooperation, Alliance, Conflict, and Rivalry
Political Geography:
United States, China, United Kingdom, Europe, Asia, Australia, North America, and Indo-Pacific

142. Pugwash Note on Northeast Asia Nuclear Weapon Free Zone

Author:
Pugwash Conferences on Science and World Affairs
Publication Date:
01-2021
Content Type:
Policy Brief
Institution:
Pugwash Conferences on Science and World Affairs
Abstract:
Denuclearization of Korean Peninsula is one of the most important security issues that the countries in the region, including the US, will face. Given the ongoing development of nuclear and missile programs in Democratic People’s Republic of Korea (DPRK) and increasing tensions between nuclear weapon countries (US, Russia and China) in the region, it is critically important to reduce risk of nuclear war in the region and to find a way to resolve a current deadlock in negotiations between DPRK and the US for denuclearization of Korean Peninsula. This paper proposes a comprehensive approach to peace and stability in the region as well as a phased denuclearization of Korean Peninsula and eventually establishing Nuclear Weapon Free Zone (NWFZ) in the region
Topic:
Security, Arms Control and Proliferation, Nuclear Weapons, Military Strategy, Conflict, and Denuclearization
Political Geography:
Japan, China, Asia, South Korea, North Korea, and Korean Peninsula

143. No, China Does Not Make Everything!

Author:
David Henig and Anna Guildea
Publication Date:
03-2021
Content Type:
Policy Brief
Institution:
European Centre for International Political Economy (ECIPE)
Abstract:
China is now the world’s leading manufacturer, with goods exports rising from $63 billion in 1990 to $2.5 trillion in 2018. The popular assumption is that everything is now made in China, and that falling manufacturing employment in the EU and US is due to this. The assumption is wrong. China is the world’s largest goods exporter, but other countries have also experienced increases. One reason is that China is also the world’s second largest importer of goods, at $2.1 trillion in 2018.
Topic:
International Political Economy, Exports, Manufacturing, and Trade
Political Geography:
China

144. Raising a caution flag on US financial sanctions against China

Author:
Jeffrey J. Schott
Publication Date:
01-2021
Content Type:
Policy Brief
Institution:
Peterson Institute for International Economics
Abstract:
China’s policies in Xinjiang, Hong Kong, and the South China Sea and its ongoing support for Iran, North Korea, and Venezuela pose major challenges for the United States, where bipartisan pressure is growing to ramp up punitive sanctions against leading Chinese firms and financial institutions. Financial sanctions freeze the US assets or bar US entry of the targeted individuals and firms and prohibit US financial firms from doing business with them. Schott explains why US officials should carefully weigh the risks to international financial markets and US economic interests before imposing punitive sanctions on major financial institutions engaged with China. The collateral costs of such sanctions would be sizable, damaging US producers, financial institutions, and US alliances. By restricting access of major banks to international payments in US dollars and barring use of messaging systems like SWIFT, tougher US financial sanctions would effectively “weaponize” the dollar; friends and foes alike would be pushed to seek alternatives to dollar transactions that, over time, would weaken the international role of the dollar. Instead of doubling down on current unilateral financial sanctions, US policy should deploy sanctions in collaboration with allies and calibrate trade and financial controls to match the expected policy achievements.
Topic:
Human Rights, Sanctions, Finance, and Economy
Political Geography:
China, Asia, North America, and United States of America

145. The unappreciated trend toward unilateral trade liberalization

Author:
Robert Z. Lawrence
Publication Date:
03-2021
Content Type:
Policy Brief
Institution:
Peterson Institute for International Economics
Abstract:
Afrequently voiced complaint from the Trump administration was that US firms have faced a competitive disadvantage in exports because the US market is open and US tariffs are low but US trading partners protect their markets with high tariffs. The administration used this concern to justify raising US tariffs whenever it could. Lawrence argues that these claims should be more nuanced and account for the extensive unilateral liberalization by many countries over the past 30 years and that the grievances that motivated the Trump trade policies are increasingly misplaced. Many developing countries have reduced their tariffs unilaterally to rates that are far lower than they applied three decades ago and far less than the bound rates reflected in their World Trade Organization (WTO) obligations. Globally, on average, tariffs were not raised during the global financial crisis of 2008 and continued to decline through at least 2018. Even when shocks from imports resulted in serious injury to domestic industries, several developing countries temporarily provided safeguard protection but at levels that were lower than their WTO bound rates. This evidence of import liberalization also suggests that rising protectionism was not responsible for the slow growth in world trade that has been evident since 2011. It remains uncertain whether countries will now respond to disruptions to global supply chains since 2018 caused by Trump’s trade policies and the COVID-19 pandemic by reversing their tariff liberalization stance, but the sustained enthusiasm for new megaregional trade agreements suggests many countries will not.
Topic:
Emerging Markets, World Trade Organization, Trade Wars, and Protectionism
Political Geography:
China, Asia, North America, and United States of America

146. Improving China's participation in resolving developing-country debt problems

Author:
Martin Chorzempa and Adnan Mazarei
Publication Date:
05-2021
Content Type:
Policy Brief
Institution:
Peterson Institute for International Economics
Abstract:
The COVID-19 shock has exacerbated the struggles of many emerging-market and developing economies (EMDEs) to repay their external debt. One of the most urgent challenges relates to debt owed to China, whose lending spree under its Belt and Road Initiative and other programs has played an outsized role in what amounts to a crisis for many countries. The scope of the problem is striking. China is owed more than $100 billion, or 57 percent of all debt owed to official creditors by the countries that need help the most. China is not a member of the Paris Club of official creditors, which coordinates, within a multilateral framework, the resolution of general sovereign illiquidity or unsustainable external debt of EMDEs. There is an urgent need to put in place more effective, long-term solutions to help durably lower the risks of prolonged debt difficulties in EMDEs. These problems could be partly addressed by creating creditor committees to coordinate debt relief with China. The Group of Twenty (G20) has taken some steps to include creditor committees in the context of the Common Framework for Debt Treatments beyond the Debt Service Suspension Initiative (DSSI), but only for low-income countries that qualify for the DSSI and only for official creditors. To better address debt distress, it needs to extend the approach, especially to middle-income debtor countries.
Topic:
Debt, Development, Emerging Markets, and G20
Political Geography:
China and Asia

147. 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

148. 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

149. 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

150. China’s state-owned enterprises and competitive neutrality

Author:
Alicia Garcia-Herrero
Publication Date:
02-2021
Content Type:
Policy Brief
Institution:
Bruegel
Abstract:
As China’s economic weight continues to grow, so does the global impact of its companies. Chinese state-owned enterprises (SOEs) produce a large share of Chinese goods and services. Given their importance both in China and increasingly globally, it should be measured whether SOEs introduce distortions into markets and how significant those distortions are. Foreign governments negotiating trade or investment deals with China need this information so they can better measure how far China is from offering a level playing field to foreign companies on its domestic market. In this context, competitive neutrality is an important working concept that can be used to asses how far a market is from being a competitive environment. The Organisation for Economic Co-operation and Development defines a framework of competitive neutrality as one in which public and private companies face the same set of rules, and no contact with the state gives competitive advantage to any market participant. Quantifying the concept is difficult, but we provide a preliminary measure of the lack of competitive neutrality in relation to Chinese SOEs. In particular, we focus on debt and tax neutrality and compare the situation for Chinese state-owned and private firms on aggregate and sectoral levels. Our results support the view that China’s competitive environment is generally poor. The advantageous position of SOEs in China is true for most economic sectors, though to a variable extent, with the automotive sector one of the furthest away from competitive neutrality. A working measure of competitive neutrality applied in China could help improve the level playing field for foreign companies in China. It could also be applied globally given the very large size and global footprint of Chinese SOEs. The concept could even be introduced in a potential reform of the World Trade Organisation.
Topic:
Business, Trade, Neutrality, and State-Owned Enterprises
Political Geography:
China and Asia