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

51. When the State Becomes the Only Buyer: Monopsony in China’s Public Procurement of Medical Technology

Author:
Fredrik Erixon, Oscar Guinea, and Anna Guildea
Publication Date:
03-2022
Content Type:
Policy Brief
Institution:
European Centre for International Political Economy (ECIPE)
Abstract:
China’s centralised state procurement policies are moving the Chinese market of medical technologies in a monopsonistic direction. A monopsony means that a single buyer exerts strong power to move the market to its favour by gradually cutting prices and setting terms for producers that are extortionary. It is equivalent to a monopoly – with the only difference being that in a monopsony, it is the single buyer that acts in a market-predatory manner. Ultimately, a monopsonistic market empowers the buyer to capture most of the financial rewards from a contract. Competition gets undermined because a vibrant market also requires competition between buyers and, over time, fewer firms will be able to supply the procured goods at terms that are set by the single buyer. This shift towards monopsony does not happen overnight, it is a process that builds on a number of steps that tilts the balance of power in favour of the buyer. First, there is a concentration of buyers, sometimes down to a single buyer – such as the state. This concentration of buyers acts to extract value from sellers by creating pressure to reduce and converge prices. Buyers in monopsonistic conditions may also add other objectives to their agenda, using their monopsonistic position to abuse the market. For example, political objectives may be in place, which can include discrimination against foreign companies or corruption. Finally, there is a consolidation of the market, with fewer suppliers overall, and a focus on price rather than innovation. Several characteristics of a market could be indicative of a monopsony. One of these indicators is the price. In the case of the Chinese market for medical technology, price reductions have been sustained across medical devices, with price cuts exceeding 90 percent in some medical products. When the buyer’s primary focus is to reduce prices, the risk is that low-quality products will drive out high-quality products. Another indicator is price convergence: the idea that one price should apply to the whole market. Price convergence can be observed as the distance between the average and maximum price reduction offered by companies. The small differences seen in the Chinese procurement of medical technologies for these two indicators indicates that prices are converging downwards. Forcing a convergence of prices breaks with natural market behaviour and overall leads to a market with fewer participants. In a monopsony, the buyer tends to capture the dominant part of the market value of the product, which squeezes the margins of sellers. Over time, this leads to fewer competitors as only a few companies can survive under such conditions. These dynamics have real consequences: the number of winning companies in the procurement of medical technology per one million people in China is substantially lower than in the EU. In addition to a reduced reliance on multiple suppliers, the Chinese centralised state procurement reinforces China’s industrial policy to support Chinese firms growing their domestic market shares to the detriment of non-Chinese companies. These are the consequences of a market that is increasingly taking a monopsonistic form. Public procurement does not have to follow the Chinese recipe of centralised state procurement. There is a substantial body of evidence, research, and studies that recommend specific procurement policies that tackle the monopsonistic tendencies embedded in public procurement markets. These recommendations emphasize the importance of competition without lowering the number of firms in the market, underlining the need for a long-term view on how the market delivers continuous innovation. The danger for China is that monopsony will collapse the future market by making it less attractive for companies to innovate and compete. Chinese centralised state procurement and the move towards monopsony will not go unnoticed. These policies clearly breach basic principles and norms of international exchange, and how governments should behave to avoid a distortion of competition. First, Chinese centralised state procurement favours the Chinese medical technology industry to the detriment of non-Chinese companies. Second, given the low prices achieved in Chinese centralised state procurements, there is a risk that firm’s margins are severely cut, putting a lid on global spending on R&D. The EU and the US should coordinate their policies to counter the monopsonistic tendencies of the Chinese market of medical technologies. Their markets for medical technologies are significantly larger than the Chinese market and Chinese companies rely on the US and the European market to maintain their growth. The EU-US Trade and Technology Council (TTC) offers a setting to take these discussions forward and agree on policies to counter Chinese market distortions.
Topic:
Science and Technology, Health Care Policy, Public Procurement, and Monopsony
Political Geography:
China and Asia

52. The war in Ukraine and the future of Russia-China relations

Author:
Marcin Kaczmarski
Publication Date:
04-2022
Content Type:
Policy Brief
Institution:
NATO Defense College
Abstract:
The China-US rivalry, observed since late 2017, has pushed Moscow and Beijing closer togeth- er, but it has not transformed their relation- ship. One reason is the persistent cautiousness of both states, another is Moscow’s lack of capabilities to offer genuine support to China in such areas as the econo- my, trade or technology. The official rhetoric, boasting about the relationship being “better than an alliance”, in reality hides real obstacles to a more substantial co- operation. The first “post-pandemic” in-person meeting be- tween Vladimir Putin and Xi Jinping on 4 February 2022 seemed to have opened the new era in Sino-Rus- sian relations. The joint communication was unusually ideologised, with both states claiming their democratic traditions. China offered support for Russia’s “legiti- mate security concerns” in Europe and opposed fur- ther NATO enlargement. Russia reciprocated by sup- porting China in Asia. The slogans of the relationship having “no limits” or no “red lines” dominated the post-summit narratives. Russia’s war against Ukraine has pushed the Si- no-Russian relationship into uncharted waters. Mos- cow’s failure to secure a quick victory has put Beijing in an uncomfortable position. The future direction of Sino-Russian cooperation will depend heavily on the length of the Russia-Ukraine conflict and the ultimate decision of Beijing as to what extent (if at all) to prop up Russia economically. Regardless of whether Beijing decides to assist Mos- cow in bypassing Western sanctions, the unravelling of the Sino-Russian relationship is highly implausible. We can expect either China’s explicit economic support for Russia or the maintenance of close political ties without economic support. In the first scenario, Russia’s dependence on China would increase dramat- ically, diminishing Moscow’s room for manoeuvre in foreign policy and ultimately turning Russia into Chi- na’s asset in the latter’s global rivalry with the US. In the second scenario, Russia would remain an autono- mous actor, pursuing close political cooperation and normative anti-Western convergence with China, but increasingly isolated and weakened economically. It is only domestic political change in Russia, the end of Vladimir Putin’s personal rule in particular, that would provide Moscow with an opportunity to reassess the relationship with China.
Topic:
International Cooperation, War, Military Strategy, Bilateral Relations, and Conflict
Political Geography:
Russia, China, Europe, Ukraine, and Asia

53. The rise of China and NATO’s new Strategic Concept

Author:
Markus Kaim and Angela Stanzel
Publication Date:
02-2022
Content Type:
Policy Brief
Institution:
NATO Defense College
Abstract:
China’s rise is shaking up international power relations and is calling into question Western ideas of regional and global order. NATO, too, is confronted with the necessity of dealing with the challenges posed by China. This has been reflected in various NATO statements since 2019. According to Secretary General Jens Stoltenberg, “China does not share our values” and “uses modern technology, so- cial media [and] facial recognition, to monitor, to do surveillance of their own population in a way we have never seen before”. “All of this makes it important for NATO to strengthen our policy when it comes to China”, he added.1 NATO Allies only paid attention to the significance of the People’s Republic on their security policy com- paratively late. For a long time, the dominant view was that the Alliance and Beijing were pursuing a num- ber of common interests, e.g. in the areas of crisis management, counter-piracy and in the countering of the proliferation of weapons of mass destruction.2 Only China’s rise on the international scene and the resulting rivalry with the US in recent years have led to Beijing’s foreign policy to appear on the Alliance’s agenda.
Topic:
Defense Policy, NATO, International Cooperation, Military Strategy, and Strategic Interests
Political Geography:
China, Europe, and North America

54. 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

55. 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

56. 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

57. 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

58. 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

59. 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

60. 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

61. 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

62. 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

63. 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

64. 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

65. 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

66. 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

67. 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

68. 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

69. 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

70. 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

71. 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

72. 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

73. 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

74. 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

75. 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

76. 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

77. Time to Leave China’s “16+1” Influence Trap

Author:
Filip Jirouš
Publication Date:
08-2022
Content Type:
Policy Brief
Institution:
International Centre for Defence and Security - ICDS
Abstract:
Last week Estonia and Latvia followed Lithuania and quit what used to be known as 16+1, as the Czech Republic and other participating countries become increasingly vocal in their scepticism of the initiative. The 16+1 format, officially known as Cooperation between China and Central and Eastern European Countries (中国—中东欧 国家合作, Zhongguo-Zhong Dong Ou Guojia Hezuo), was launched in 2012 as a China-centric initiative incorporating 16 Central and Eastern European (CEE) countries. In 2019, Greece—which is heavily indebted to China—joined, and the platform was briefly renamed 17+1. While it is officially described as an economic cooperation platform, its real achievements and the PRC’s approach to it show that trade and investment were never its true focus. Rather, the PRC used it as a propaganda and influence tool, wasting CEE diplomatic capacity on activities that only benefited Beijing. The lack of benefits and abundance of risks have recently led several CEE countries to reassess their participation in the 16+1 format. The time has come for the rest of the participating countries to join their Baltic neighbours and ditch this PRC influence vehicle.
Topic:
Diplomacy, International Cooperation, Soft Power, Propaganda, and Influence
Political Geography:
China, Eastern Europe, Asia, and Estonia

78. China’s Evolving Approach to Foreign Aid

Author:
Jingdong Yuan, Abhishek Andasu, and Xuwan Ouyang
Publication Date:
05-2022
Content Type:
Policy Brief
Institution:
Stockholm International Peace Research Institute
Abstract:
China’s role in foreign aid and, more broadly, in development cooperation on the global stage has grown significantly since it began seven decades ago. Particularly in recent years, through such platforms as the Belt and Road Initiative (BRI), China’s profile and engagement in global governance in foreign aid and related areas have been further enhanced. China’s ambition is to take a more proactive approach in foreign aid and move towards a model of international development cooperation by linking with the United Nations 2030 Agenda for Sustainable Development and by including the BRI as a major platform to achieve key development goals. This paper provides a timely analysis of the evolution of China’s foreign aid policy in the past seven decades with a particular focus on the developments since 2000. It discusses China’s development finance to Africa and the major sectors receiving Chinese aid. It also analyses recent trends of Chinese foreign aid and identifies some of the challenges that China faces as it becomes a major player in international development financing.
Topic:
Development, Foreign Aid, Infrastructure, Sustainable Development Goals, and Belt and Road Initiative (BRI)
Political Geography:
China and Asia

79. Xi Jinping Seeks Stability: The 20th National Congress of the CCP

Author:
Bart Dessein, Jasper Roctus, and Sven Biscop
Publication Date:
10-2022
Content Type:
Policy Brief
Institution:
EGMONT - The Royal Institute for International Relations
Abstract:
The 2,340 odd teacups have been rearranged in their cupboards, and sobriety has returned to the Great Hall of the People. What is the national and international impact of the 20th CCP Congress that was concluded on Saturday, 22 October 2022? Stability is the key word. When the People’s Republic of China (PRC) was founded in 1949, the country’s first and major concern was to be recognized as a nation state on an equal par with others in the post-World War II world order. As the Western world recognized the nationalist government of the Republic of China (Taiwan) as the legal government and representative of “China” in the United Nations, the PRC turned to the Soviet Union for support, despite earlier ill-fated cooperation between the Communist Parties of the two countries. On 14 February 1950, Mao Zedong and Joseph Stalin concluded the Sino-Soviet Treaty of Friendship, Alliance and Mutual Assistance. The disastrous outcome of Mao’s “Great Leap Forward”, however, brought the “friendship” to a premature end.
Topic:
Security, Diplomacy, International Cooperation, and Leadership
Political Geography:
China and Asia

80. China between lockdowns and the 20th Party Congress: What can we expect for the EU and globally?

Author:
Jan Hoogmartens
Publication Date:
10-2022
Content Type:
Policy Brief
Institution:
EGMONT - The Royal Institute for International Relations
Abstract:
Whether it is aggressive industrial subsidies, the militarization of the South China Sea, human rights violations in Xinjiang or political suppression in Hong Kong, there is a whole litany of foreign policy concerns which are attributed by media and China watchers to the People’s Republic of China. This policy brief will try to make some sense out of these worries by focusing on how current events might shape the outcome of the 20th Party Congress. It will start by assessing China’s track record and examining some of its main policy drivers. Consequently, it will explore what it means for the EU and its companies doing business with China, focusing on supply chains and strategic autonomy. Finally, the policy brief will come to the question whether we do not focus too much on the great power competition between the US and China.
Topic:
Foreign Policy, Hegemony, Leadership, Power, and Competition
Political Geography:
China and Asia

81. US-China geoeconomic rivalry intensifies: A risk or an opportunity for European companies?

Author:
Jana Titievskaia
Publication Date:
11-2022
Content Type:
Policy Brief
Institution:
Finnish Institute of International Affairs
Abstract:
As the US and China balance between the pursuit of strategic security interests and ambitions to attain economic growth, novel sources of risk are emerging for globally active businesses, ranging from sanctions to export controls. The Biden presidency will offer only moderate respite from the escalation of this geoeconomic rivalry, even as US-China trade recovers in the aftermath of the pandemic. In the face of US-China rivalry, the EU and its member states have opted for the third way of “open strategic autonomy”, including a range of trade instruments that will allow the EU to support the competitiveness of its companies more effectively. European companies need to closely monitor their risk exposure in various transmission channels and stay attuned to unexpected opportunities that can materialise in the form of market entry possibilities and the development of new niches.
Topic:
Hegemony, Rivalry, Strategic Interests, and Competition
Political Geography:
China, Europe, Asia, North America, and United States of America

82. Central Bank Digital Currencies and the implications for the global financial infrastructure: The transformational potential of Russia’s digital rouble and China’s digital renminbi

Author:
Maria Shagina
Publication Date:
01-2022
Content Type:
Policy Brief
Institution:
Finnish Institute of International Affairs
Abstract:
The launch of Central Bank Digital Currencies (CBDC) not only revolutionizes the international financial system, it also represents an opportunity to minimize the exposure to the US dollar transactions and avoid US oversight. China enjoys a first-mover advantage, as it became the first major economy to launch a CBDC. Following in Beijing’s footsteps, Russia is at the forefront of advancing its digital currency project. As US-sanctioned countries, Russia’s and China’s motivation extends beyond transaction costs reduction and financial inclusion: the governments seek to reduce their dependence on the US dollar and mitigate sanctions risks. In the short term, the US dollar’s international status remains unrivalled. No currency is well-positioned to displace the greenback as a reserve currency. In the long term, CBDCs could eliminate the need for third-party intermediaries and allow cross-border transactions that take place outside of the US-led financial system. This would hamper the US’s ability to use sanctions as a geoeconomic tool and oversee their extraterritorial enforcement.
Topic:
Finance, Digital Economy, Central Bank, and Banking
Political Geography:
China and Asia

83. Russia’s connectivity strategies in Eurasia: Politics over economy

Author:
Kristiina Silvan and Marcin Kaczmarski
Publication Date:
06-2022
Content Type:
Policy Brief
Institution:
Finnish Institute of International Affairs
Abstract:
Russia has been attempting to strengthen connectivity within Eurasia since the early 2000s as a part of its policy to “pivot to the East”. Yet due to limited resources and political will, the tangible effects of its connectivity strategy have remained limited. The Russian Far East would greatly benefit from an improved connectivity infrastructure, given its proximity to Asian markets and the abundance of natural resources in the region. However, the attempts to accelerate regional socio-economic development by strengthening the region’s connectivity have failed to make a difference. In post-Soviet Central Asia, Russia adopted a passive approach to connectivity in the 1990s and 2000s, which meant focusing on maintaining and protecting the links inherited from the Soviet Union. It was only the pressure of external actors – both China and the West – that prompted Moscow to take a more active stance in the region in the 2010s. The launch of China’s Belt and Road Initiative pushed Russia to promote its own grand vision of trans-continental connectivity, the Greater Eurasian Partnership, designed to reaffirm Moscow’s great-power status and its equal standing with China. While it lacks economic and administrative foundations and its implementation is highly implausible, it has fulfilled a symbolic role as Russia’s grand connectivity project for Eurasia.
Topic:
Economics, Infrastructure, Belt and Road Initiative (BRI), Rivalry, and Resource Allocation
Political Geography:
Russia, China, Europe, and Asia

84. China’s Belt and Road Initiative: Successful economic strategy or failed soft-power tool?

Author:
Jyrki Kallio
Publication Date:
09-2022
Content Type:
Policy Brief
Institution:
Finnish Institute of International Affairs
Abstract:
The Belt and Road Initiative (BRI) is part of China’s efforts to integrate its neighbouring countries into its economic sphere, thus increasing China’s security in its immediate neighbourhood while facing an increasingly hostile international environment due to its rivalry with the US. In reality, the BRI has evolved into an umbrella term for various infrastructure and development projects with no unified object or strategy. The projects should, in principle, increase goodwill towards China, and correspondingly boost its influence, but in practice they are mainly aimed at economic benefit. The results of the BRI, especially as a soft-power tool, are ambiguous. Its ideational basis is thin, consisting mainly of China’s critique towards the “hegemony of the West”. This reduces the BRI to a hollow slogan with little appeal apart from the pragmatic gains. However, the BRI is here to stay for the duration of Xi Jinping’s rule because China’s foreign policy is often driven by prestige. The BRI is enshrined in the Communist Party’s Constitution in order to both add weight to the initiative and to increase the Party’s prestige with its success, modest as it may be.
Topic:
Economics, International Trade and Finance, Infrastructure, Hegemony, and Belt and Road Initiative (BRI)
Political Geography:
China and Asia

85. 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

86. 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

87. 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

88. 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

89. 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

90. 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

91. In support of a new approach with the Western Balkans: Staged accession with a Pierre MIREL consolidation phase

Author:
Pierre Mirel
Publication Date:
05-2022
Content Type:
Policy Brief
Institution:
Robert Schuman Foundation (RSF)
Abstract:
In his “Strasbourg Speech” to the European Parliament on 9 May 2022, French President Emmanuel Macron put forward the idea of a European Political Community, to organise Europe from a broader political perspective than the European Union. He was targeting the membership applications of Ukraine, Moldova and Georgia. He nonetheless created a stir in the Western Balkans, even though he made it clear in his press conference that "for the Balkans, the path is already mapped out", by which he meant membership. This concern is understandable given the European perspective they were offered twenty years ago at the European Council of Thessaloniki on 21 June 2003, and that many voices are now being raised in favour of granting the new candidates to the East this formal membership status, or even of opening negotiations already. The European Council of 23-24 June will be important for two reasons: what is the European future of the three new candidates? Will Bulgaria lift its veto on the opening of accession negotiations with Albania and Northern Macedonia? Maintaining it would further weaken the credibility of the European Union at a time when China and Russia are making their ambitions clear.
Topic:
Foreign Policy, European Union, Regional Integration, and European Council
Political Geography:
China, Eastern Europe, and Balkans

92. Where is China heading?

Author:
Jean-Pierre Cabestan
Publication Date:
10-2022
Content Type:
Policy Brief
Institution:
Robert Schuman Foundation (RSF)
Abstract:
China is ambitious, it is making this known and everyone is beginning to realise it. So much so that today a growing number of observers fear that it will take greater risks to achieve its objectives and fall into the famous "Thucydides' trap"; in short, that it will launch into a war, notably around Taiwan, which would inevitably involve the United States. Isn't its goal to supplant America and become the world's leading power? If, by 2028 or 2030, the Chinese economy were to exceed the US economy in terms of GDP, it is doubtful that it will succeed in removing the US from its pedestal. This is likely to be lower and more contested. But rather than a power transition, the world is witnessing the emergence of new, permanently asymmetrical bipolarity and, no doubt, a new Cold War[1].
Topic:
Foreign Policy, Geopolitics, Economy, and Multipolarity
Political Geography:
China and Asia

93. Understanding Hainan Free Trade Port: China's Efforts to Explore High-level Opening-up

Author:
Wenfeng Wei
Publication Date:
10-2022
Content Type:
Policy Brief
Institution:
Korea Institute for International Economic Policy (KIEP)
Abstract:
On 13 April 2018, upon the 30th anniversary of Hainan province, Chinese President Xi Jinping announced to build Hainan into a free trade port. According to the Master Plan for the Construction of the Hainan Free Trade Port released by the State Council on 1 June 2020, China aims to build this southern island province into a high-level free trade port with global influence by the middle of the century. As China's largest special economic zone, Hainan is expected to become the frontline of China's integration into the global economic system. Noting that the world is facing a new round of major development, changes and adjustment, with protectionism and unilateralism on the rise and economic globalization facing greater headwinds, it was also a strategic decision of Chinese authorities based on the domestic and international landscapes. As such, Hainan Free Trade Port (HNFTP) is more than a regional development initiative, and it has a much bigger role to play in China’s reform and opening endeavors.
Topic:
Development, Economics, Special Economic Zones, and Free Trade
Political Geography:
China and Asia

94. Geopolitical Risk in the Era of U.S.-China Strategic Competition and Economic Security

Author:
Jai Chul Heo
Publication Date:
09-2022
Content Type:
Policy Brief
Institution:
Korea Institute for International Economic Policy (KIEP)
Abstract:
Recently, the intensification of U.S.-China strategic competition, spread of COVID-19 infections, and the Russia-Ukraine war are disrupting the global supply chain and increasing instability in the global economy. The resulting instability in the supply of semiconductors, medicines, food, and energy is leading to an economic downturn, and the U.S., China, Japan, and EU are actively pursuing strategies to strengthen economic security. The key to recent economic security is the U.S.-China strategic competition. Because the United States is re-tightening economic-security links that were loosened in the post-Cold War era to counter China's economic rise. And the concept of recent economic security largely includes the elements of economic statecraft, economic resilience, and building mutual trust.
Topic:
Geopolitics, Strategic Competition, COVID-19, Economic Security, and Russia-Ukraine War
Political Geography:
China, Asia, North America, and United States of America

95. International Spread of Anti-dumping Measures and Diversification of Investigation Methodologies

Author:
Moonhee Cho, Cheon-Kee Lee, Min Ji Kang, and Min-chirl Chung
Publication Date:
09-2022
Content Type:
Policy Brief
Institution:
Korea Institute for International Economic Policy (KIEP)
Abstract:
As global economic growth has lost momentum due to the COVID-19 pandemic and the tension between U.S. and China, among other developments, concerns about the spread of protectionism are growing. In particular, anti-dumping (AD) measures are more likely to expand in the future in that they are relatively easy to take and have a direct effect on international trade compared to other protectionist trade policies. This study reviews the spread of AD measures and the effects of AD measures on trade. We also pay attention to the fact that AD investigation methodologies are being diversified. Focusing on particular market situation (PMS) and adverse facts available (AFA) provisions, which have been applied in many recent AD investigations on Korean export goods, we analyze the logic of investigation authorities.
Topic:
Economic Growth, Trade, COVID-19, and Protectionism
Political Geography:
China, Asia, North America, and United States of America

96. Recent Marriage and Labor Supply Pattern of Young Chinese Women

Author:
Yoon Jae Ro and Jeonghwan Yun
Publication Date:
09-2022
Content Type:
Policy Brief
Institution:
Korea Institute for International Economic Policy (KIEP)
Abstract:
In this paper, we examine the impact of a sibling gender on educational attainment, earnings, family formation for a recent cohort of women in China. Family characteristics such as number of siblings, sibling gender composition, and parents’ characteristics may play an important role in children’s life as the presence of a sibling can affect parents’ treatment of the remaining children. Especially male siblings can affect children’s outcome through various pathways as male sibling may pull parental investment of resources away from girls, because boys may be seen as the “higher return” investment (Becker, 1991). We investigate the effect of having a (male) sibling on a daughter by exploiting the change in fertility trend in China induced by the One Child Policy (OCP).
Topic:
Economics, Labor Issues, Women, Marriage, Supply, and Gender
Political Geography:
China and Asia

97. The U.S.-China Battle for Semiconductor Supremacy and Reshaping of Global Supply Chain

Author:
Hyung-gon Jeong
Publication Date:
10-2022
Content Type:
Policy Brief
Institution:
Korea Institute for International Economic Policy (KIEP)
Abstract:
The realization of digital transformation (DX) and the Fourth Industrial Revolution (4IR) has led to the development of new technologies in areas such as AI, big data, metaverse, autonomous vehicles, digital currency, and blockchain technology. While these sectors are expected to continue to grow, major countries including the United States and China are fiercely competing to secure a global supply chain for the semiconductor industry. Built on free trade, the global division of production in the semiconductor industry has driven corporate innovation and technology development. However, the trend of technological nationalism and countries’ efforts to build a value chain within their territory are expected to hurt the global semiconductor industry. The ever-deepening hegemony competition between the U.S. and China in the semiconductor industry could have a profound impact not only on the Korean economy but also on a restructuring of the global semiconductor supply chain. This study analyzes the supply chain structure and risks of the Korean semiconductor industry, along with U.S. and Chinese policies to foster the semiconductor industry, going on to explore corresponding countermeasures.
Topic:
Science and Technology, Supply Chains, Semiconductors, and Competition
Political Geography:
China, Asia, North America, and United States of America

98. Internationalization of the Korean Won in the Light of RMB Internationalization

Author:
Hyo Sang Kim, Young Sik Jeong, Ji Young Moon, and Da Young Yang
Publication Date:
07-2022
Content Type:
Policy Brief
Institution:
Korea Institute for International Economic Policy (KIEP)
Abstract:
While China has risen to become a global superpower with a growing impact on the world economy, its currency, the Renminbi (RMB), has a limited role in the existing international financial system. China has made significant progress and will continue to push for the internationalization of the RMB, which can disrupt the global financial system, dominated by the US dollar. Under such circumstances, Korea must find a new direction for the internationalization of the Korean Won. The internationalization of the Korean won will provide new opportunities for the economy to take a further step through financial advancement.
Topic:
Economy, Currency, Internationalization, and Financial Development
Political Geography:
China, Asia, and South Korea

99. Australia’s Strategic Responses to the US-China Rivalry and Implications to Korea

Author:
Ina Choi, Sunhyung Lee, Jaeho Lee, and So Eun Kim
Publication Date:
08-2022
Content Type:
Policy Brief
Institution:
Korea Institute for International Economic Policy (KIEP)
Abstract:
As in other Asia-Pacific countries, boosting trade with China has provided a growth engine for Australia's economy. Australia shared concerns over security threats posed by China’s military expansion, but up until the mid-2010s hard balancing against China did not seem to be an option for Australia. Australia’s recent moves against China, however, signal that Canberra has reset its China policy, with an overhaul of its national security and defense strategy. The shift of Australia’s China policy is an interesting case to explore how the regional order is likely to evolve in the growing US-China competition. Assessing Australia’s recent foreign policy is also relevant to Korea, both in terms of navigating Korea’s relations with the US and China and enhancing strategic ties between Australia and Korea. Against this backdrop, this study unravels Australia’s strategic responses to the changing regional order and draw implications for Korea's foreign policy.
Topic:
Security, Foreign Policy, National Security, Economy, Trade, and Rivalry
Political Geography:
China, South Korea, Australia, Asia-Pacific, and United States of America

100. The Collapse of One China

Author:
Ivan Kanapathy
Publication Date:
06-2022
Content Type:
Policy Brief
Institution:
Center for Strategic and International Studies
Abstract:
As the One China policy accommodation unravels and China’s military attains a credible capability to mount a cross-strait invasion, the United States and its allies should stop hedging and adopt enhanced measures to deter Beijing.
Topic:
Security, Military Strategy, Hegemony, and Rivalry
Political Geography:
China, Taiwan, Asia, North America, and United States of America