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201. How economic ideas led to Taiwan’s shift to export promotion in the 1950s

Author:
Douglas A. Irwin
Publication Date:
08-2021
Content Type:
Working Paper
Institution:
Peterson Institute for International Economics
Abstract:
Taiwan was the first developing country to adopt an export-oriented trade strategy after World War II. The factors usually associated with big shifts in policy—a macroeconomic crisis, a change in political power or institutions, lobbying by export interests, pressure from international financial institutions—were not present; it was ideas that were key. In 1954, economist S. C. Tsiang proposed that Taiwan boost export earnings rather than squeeze import spending to deal with its chronic shortage of foreign exchange. He recommended a currency devaluation to establish a realistic exchange rate and a market-based system of foreign exchange allocation to end the inefficient rationing by the government. Four years later, a policymaker, K. Y. Yin, fought for the adoption of Tsiang’s proposal, helping clear the way for Taiwan’s phenomenal growth in trade.
Topic:
Economics, History, Exports, and Trade
Political Geography:
Taiwan and Asia

202. From hermit kingdom to miracle on the Han

Author:
Douglas A. Irwin
Publication Date:
09-2021
Content Type:
Working Paper
Institution:
Peterson Institute for International Economics
Abstract:
In 1960, South Korea’s exports were about 1 percent of GDP, and the country’s ability to import depended almost entirely on US aid. After changing its foreign exchange and trade policies in the mid-1960s, Korea saw a surge in exports to more than 10 percent of GDP by the end of the decade. What factors account for the shift in policy that enabled this dramatic export growth to occur? The United States helped initiate the process by withholding financial assistance, pressuring Korea to devalue its currency and reform its foreign exchange regime. Initially, the Korean government resisted taking these steps, but in 1964 it became firmly committed to an export promotion strategy to boost foreign exchange earnings and end its dependence on American aid.
Topic:
Economics, Foreign Exchange, Reform, Exports, and Trade
Political Geography:
Asia and South Korea

203. Between a Rock and a Hard Place: How Should South Korea Manage its Relations with the United States and China?

Author:
Zhiqun Zhu
Publication Date:
11-2021
Content Type:
Working Paper
Institution:
Korea Economic Institute of America (KEI)
Abstract:
This paper deals with one of the most critical issues in contemporary international relations: how China’s rise challenges foreign policies of U.S. allies, with a focus on the Republic of Korea (ROK) or South Korea. South Korea has been carefully hedging between the United States and China, its traditional security patron and largest trade partner, respectively. Strategic rivalry between the two great powers has put South Korea in an awkward position as pressure grows from the two powers to pick a side. Using a modified dual-track economics-security nexus framework, this paper suggests that the United States and China each has a significant impact on South Korea’s security and economic policies, making it important but challenging for South Korea to simultaneously manage relations with the two great powers. So far, South Korea has maintained these two sets of relationships remarkably well, but it may be difficult to continue with business as usual in the years ahead. For its own national interests, South Korea must seek to preserve the status quo under which it can continue to benefit from good relations with both great powers. The paper also proposes that South Korea should form a “middle power coalition” with like-minded nations to deflect pressures and avoid the dilemma of having to choose sides.
Topic:
International Relations, Security, Foreign Policy, Alliance, and Trade
Political Geography:
China, Asia, South Korea, and United States of America

204. Takeaways From a Time of Increased Friction: South Korea-Japan Security Cooperation From 2015 to Present

Author:
Naoko Aoki
Publication Date:
09-2021
Content Type:
Working Paper
Institution:
Korea Economic Institute of America (KEI)
Abstract:
South Korea and Japan share common challenges and liberal democratic values but have been unable to build a close security relationship, due mainly to their political differences. This paper examines the two countries’ defense cooperation in the bilateral, trilateral, and multilateral arenas over the past six years to explore how the external security environment, as well as bilateral political problems, have affected their joint activities. The paper’s analysis shows that defense cooperation between South Korea and Japan is not always a binary choice between full cooperation or no cooperation. The two countries not only weigh external threats and bilateral problems, but also ponder such factors as U.S. encouragement to adjust the scope of their cooperation. The paper also shows that while the main constraint for security cooperation between South Korea and Japan is their historical animosity, in recent years, frictions involving the countries’ armed forces have become a new reason for limiting cooperation. As a result, grassroots military-to-military exchanges between the two countries, which in the past continued despite political problems, have largely stopped since late 2018. The paper concludes by proposing that South Korea and Japan work to restore routine bilateral working-level exchanges. It also recommends that the United States continue to urge the two countries to cooperate, and that multilateral exercises be employed as forums for cooperation between the two armed forces, as that is an area that is least impacted by bilateral problems.
Topic:
Security, Defense Policy, Regional Cooperation, and Bilateral Relations
Political Geography:
Japan, Asia, South Korea, and North Korea

205. Assessing South Korea's Role in Promoting ESG Investing in the Asia-Pacific

Author:
William Grimes and Yaechan Lee
Publication Date:
06-2021
Content Type:
Working Paper
Institution:
Korea Economic Institute of America (KEI)
Abstract:
This paper assesses the potential for South Korea to be a regional leader in advancing environmental, social, and governance (ESG) investing, and supporting sustainable development in the Asia-Pacific region. Many economies in the Asia-Pacific region are facing threats from climate change or other environmental limits to growth. Thus, the expansion of ESG investment and green infrastructure is a major regional challenge that must be addressed for sustainable growth. We argue that Korea can play a central role in overcoming this challenge based on the following conjectures. First, Korea’s developmental legacy has allowed it to reshape its financial market and investment habits to quickly expand its ESG market. This model is more relatable to developing economy governments than those offered by Western economies. Sharing Korea’s experience and know-how with the region’s developing economies can augment their ESG compliance capacities and make them a more attractive destination for sustainable infrastructure investments. Second, Korea’s significant presence in the region as a major creditor and exporter can induce ESG adherence from the private sector as Korean investors enhance their commitment to ESG principles. While questions remain about the sustainability of Korea’s ESG adherence due to the market’s heavy reliance on government agency finance and ad hoc pandemic response investments, the increasing global interest in the ESG market makes it likely that the Korean government will continue to incentivize adherence to ESG principles.
Topic:
Economics, Markets, Investment, and Regional Economy
Political Geography:
Asia and South Korea

206. Women Left Behind

Author:
Radhika Jain and Pascaline Dupas
Publication Date:
06-2021
Content Type:
Working Paper
Institution:
Walter H. Shorenstein Asia-Pacific Research Center
Abstract:
Using administrative data on over 4 million hospital visits, we document striking gender disparities within a government health insurance program that entitles 46 million poor individuals to free hospital care in Rajasthan, India. Females account for only 33% of hospital visits among children and 43% among the elderly. These shares are lower for more expensive types of care, and far lower than sex differences in illness prevalence can explain. Almost two-thirds of non-childbirth spending is on males. We combine these data with patient survey, census, and electoral data to show that 1) the program is unable to fully offset the costs of care-seeking, which results in disparities in hospital utilization because some households are willing to allocate more resources to male than female health; 2) lowering costs does not reduce disparities, because males benefit as much as females do; and 3) long-term exposure to village-level female leaders reduces the gender gap in utilization, but effects are modest and limited to girls and young women. In the presence of gender bias, increasing access to and subsidizing social services may increase levels of female utilization but fail to address gender inequalities without actions that specifically target females.
Topic:
Gender Issues, Governance, Health Care Policy, Women, Inequality, and Health Insurance
Political Geography:
India and Asia

207. Coordination Failure: Risks of US-China competition in space

Author:
Gidon Gautel
Publication Date:
04-2021
Content Type:
Working Paper
Institution:
LSE IDEAS
Abstract:
The 2020s will see a flurry of space activity, with both national and commercial programs picking up pace. Both the United States and China hold strong ambitions in telecommunications, lunar exploration, and beyond. However, currently fraught relations between the superpowers are unlikely to improve and may yet deteriorate further. On the one hand, competition between both countries may drive space activities and foster technological innovation. On the other, as both superpowers expand their activities in space, geopolitical tensions may increase the risk of harmful dynamics that could endanger the sustainable rollout of future programs. In this Strategic Update, Gidon Gautel seeks to outline and call attention to two high-risk flash points arising from the development of the US and China’s national space programmes and industries.
Topic:
Geopolitics, Space, Innovation, and Strategic Competition
Political Geography:
China, Asia, North America, and United States of America

208. Twitter and Digital Diplomacy: China and COVID-19

Author:
Chris Alden and Kenddrick Chan
Publication Date:
06-2021
Content Type:
Working Paper
Institution:
LSE IDEAS
Abstract:
This Strategic Update explores how official Chinese foreign policy entities have used Twitter as a public diplomacy platform during the outbreak of the COVID-19 pandemic, the nature of their Twitter activity, and what this means for Chinese Twitter Diplomacy in the future.
Topic:
Diplomacy, Social Media, COVID-19, Twitter, and Digital Policy
Political Geography:
China and Asia

209. How Can America Challenge China's Political Ambitions in an Age of Deglobalisation?

Author:
Dimitri Zabelin
Publication Date:
09-2021
Content Type:
Working Paper
Institution:
LSE IDEAS
Abstract:
COVID-19 has accelerated the trend of deglobalisation and further entrenched China into the growing political and economic fort of Asia. This has made the US less effective at implementing policies aimed at curbing Beijing’s political ambitions and strength in the region. Washington must therefore make itself indispensable in Asia and employ strategies for bringing China into a global network that can collectively reign in the Asian giant’s growing influence.
Topic:
Economics, Politics, Strategic Competition, and COVID-19
Political Geography:
China, Asia, North America, and United States of America

210. Melons as Lemons: Asymmetric Information, Consumer Learning and Seller Reputation

Author:
Jie Bai
Publication Date:
03-2021
Content Type:
Working Paper
Institution:
The John F. Kennedy School of Government at Harvard University
Abstract:
There is often a lack of reliable quality provision in many markets in developing countries and firms generally lack a reputation for quality. One potential explanation is that mistrust due to past bad behavior can make reputation-building difficult. I examine this hypothesis in a setting that features typical market conditions in developing countries: the retail watermelon markets in a major Chinese city. I first demonstrate empirically that there is substantial asymmetric information between sellers and buyers on quality and a stark absence of quality premium at baseline. I then randomly introduce one of two branding technologies into 40 out of 60 markets–one sticker label that is widely used and counterfeited and one novel expensive laser-cut label. The experiment findings show that laser-branding induced sellers to provide higher quality and led to higher sales profits. However, after the intervention was withdrawn, all markets reverted back to baseline. I incorporate the experimental variation into an empirical model of consumer learning and seller reputation building. The results suggest that consumers are hesitant to upgrade their perception under stickers, which makes reputation-building a low-return investment. While the new technology enhances learning, the resulting increase in profits is not sufficient to cover the fixed cost of the technology for small individual sellers. Counterfactual analysis shows that information friction and fragmented market lead to significant under-provision of quality.
Topic:
Economics, Markets, and Developing World
Political Geography:
China, Asia, and Global Focus

211. Reflections of the Rohingya in the Online Jihadi Propaganda

Author:
Ariel Koch
Publication Date:
03-2021
Content Type:
Working Paper
Institution:
Moshe Dayan Center for Middle Eastern and African Studies
Abstract:
In this issue of BeeHive, Ariel Koch analyzes the Jihadist propaganda directed to the Muslim population of Myanmar, including the social media discourse. One of the less familiar arenas of jihad is Myanmar (formerly Burma), a country known for the ongoing conflict between the government-backed Buddhist majority and the Rohingya Muslim minority in the Rahkine state (formerly known as Arakan). This ethno-religious conflict has gained worldwide attention following massacres and forced deportations led by Myanmar’s army against the Rohingya. Recently, the army overthrew the elected government, raising concern about the Rohingya’s fate. This conflict has also been reflected in the discourse of various Islamist and Salafi-Jihadist organizations, which try to radicalize Myanmar’s Muslims, or encourage Muslims to defend their coreligionists.Al-Qaeda was the first to address the situation.
Topic:
Al Qaeda, Social Media, Islamism, Jihad, and Rohingya
Political Geography:
South Asia, Asia, and Myanmar

212. Gains Associated with Linking the EU and Chinese ETS under Different Assumptions on Restrictions, Allowance Endowments, and international Trade

Author:
Malte Winkler, Sonja Peterson, and Sneha Thube
Publication Date:
05-2021
Content Type:
Working Paper
Institution:
Kiel Institute for the World Economy (IfW)
Abstract:
Linking the EU and Chinese Emission Trading Systems (ETS) increases the cost-efficiency of reaching greenhouse gas mitigation targets, but both partners will benefit – if at all – to different degrees. Using the global computable-general equilibrium (CGE) model DART Kiel, we evaluate the effects of linking ETS in combination with 1) restricted allowances trading, 2) adjusted allowance endowments to compensate China, and 3) altered Armington elasticities when Nationally Determined Contribution (NDC) targets are met. We find that generally, both partners benefit from linking their respective trading systems. Yet, while the EU prefers full linking, China favors restricted allowance trading. Transfer payments through adjusted allowance endowments cannot sufficiently compensate China so as to make full linking as attractive as restricted trading. Gains associated with linking increase with higher Armington elasticities for China, but decrease for the EU. Overall, the EU and China favor differing options of linking ETS. Moreover, heterogeneous impacts across EU countries could cause dissent among EU regions, potentially increasing the difficulty of finding a linking solution favorable for all trading partners.
Topic:
Climate Change, Environment, International Trade and Finance, Regional Cooperation, and European Union
Political Geography:
China, Europe, and Asia

213. Trade Liberalization along the Firm Size Distribution: The Case of the EU-South Korea FTA

Author:
Sonali Chowdhry and Gabriel Felbermayr
Publication Date:
07-2021
Content Type:
Working Paper
Institution:
Kiel Institute for the World Economy (IfW)
Abstract:
How do firms of different sizes react to trade liberalization? Leading theories suggest that, amongst continuing exporters, lower trade costs should boost exports of smaller firms by the same or a greater rate than those of larger firms. However, studying the entry into force of the ambitious EU-South Korea Free Trade Agreement (EUKFTA) with French customs data, we find robust evidence to the contrary. Applying a triple-difference framework, we report that the FTA increased sales in the top quartile of continuous exporters by 71 percentage points more than in the bottom quartile. More than 90 percent of that growth premium is driven by a stronger effective reduction in broadly defined non-tariff barriers (NTBs); the remainder by a higher sensitivity to trade costs. These findings have implications for both heterogeneous firm trade models and for the capacity of FTAs to magnify inequality. In contrast, on the entry margins, our results are in line with the literature with the FTA selecting intermediate-sized firms into exporting to South Korea.
Topic:
International Cooperation, European Union, Trade Liberalization, and Trade
Political Geography:
Europe, Asia, and South Korea

214. The Long Search for Stability: Financial Cooperation to Address Global Risks in the East Asian Region

Author:
C. P. Chandrasekhar
Publication Date:
03-2021
Content Type:
Working Paper
Institution:
Institute for New Economic Thinking (INET)
Abstract:
Forced by the 1997 Southeast Asian crisis to recognize the external vulnerabilities that openness to volatile capital flows result in and upset over the post-crisis policy responses imposed by the IMF, countries in the sub-region saw the need for a regional financial safety net that can pre-empt or mitigate future crises. At the outset, the aim of the initiative, then led by Japan, was to create a facility or design a mechanism that was independent of the United States and the IMF, since the former was less concerned with vulnerabilities in Asia than it was in Latin America and that the latter’s recommendations proved damaging for countries in the region. But US opposition and inherited geopolitical tensions in the region blocked Japan’s initial proposal to establish an Asian Monetary Fund, a kind of regional IMF. As an alternative, the ASEAN+3 grouping (ASEAN members plus China, Japan and South Korea) opted for more flexible arrangements, at the core of which was a network of multilateral and bilateral central bank swap agreements. While central bank swap agreements have played a role in crisis management, the effort to make them the central instruments of a cooperatively established regional safety net, the Chiang Mai Initiative, failed. During the crises of 2008 and 2020 countries covered by the Initiative chose not to rely on the facility, preferring to turn to multilateral institutions such as the ADB, World Bank and IMF or enter into bilateral agreements within and outside the region for assistance. The fundamental problem was that because of an effort to appease the US and the IMF and the use of the IMF as a foil against the dominance of a regional power like Japan, the regional arrangement was not a real alternative to traditional sources of balance of payments support. In particular, access to significant financial assistance under the arrangement required a country to be supported first by an IMF program and be subject to the IMF’s conditions and surveillance. The failure of the multilateral effort meant that a specifically Asian safety net independent of the US and the IMF had to be one constructed by a regional power involving support for a network of bilateral agreements. Japan was the first regional power to seek to build such a network through it post-1997 Miyazawa Initiative. But its own complex relationship with the US meant that its intervention could not be sustained, more so because of the crisis that engulfed Japan in 1990. But the prospect of regional independence in crisis resolution has revived with the rise of China as a regional and global power. This time both economics and China’s independence from the US seem to improve prospects of successful regional cooperation to address financial vulnerability. A history of tensions between China and its neighbours and the fear of Chinese dominance may yet lead to one more failure. But, as of now, the Belt and Road Initiative, China’s support for a large number of bilateral swap arrangements and its participation in the Regional Comprehensive Economic Partnership seem to suggest that Asian countries may finally come into their own.
Topic:
Regional Cooperation, Bilateral Relations, Financial Crisis, Central Bank, IMF, Liberalization, Financial Globalization, and Financial Integration
Political Geography:
China, Asia, and United States of America

215. The Political Economy of India’s Transition to Goods and Services Tax

Author:
Chanchal Kumar Sharma
Publication Date:
01-2021
Content Type:
Working Paper
Institution:
German Institute of Global and Area Studies
Abstract:
What kept the Goods and Services Tax (GST) from becoming a reality in India for a quarter of a century after the adoption of the structural adjustment programme in 1991? What made it possible in 2016? To what extent the Indian model of GST reflects a compromise between the need to keep fiscal federalism intact and to respond to a more global economic imperative? To what extent India’s transition to a concurrent dual GST has brought about a change in the principles, rules, frameworks, and institutions guiding intergovernmental fiscal interactions? This paper investigates these issues and shows that the shifts in the indirect tax regime in India since independence have taken place within the structural context of constitutional rules, the economic policy paradigm and political dynamics. Party congruence after 2014 helped to facilitate the introduction of the GST, but the shape thereof was strongly marked by path-dependent logics and the role of state governments as institutional veto players. In addition, the paper examines the ways in which India’s transition to a concurrent dual GST has brought about a fundamental change in the principles, rules, frameworks, and institutions guiding intergovernmental fiscal interactions.
Topic:
Development, Political Economy, Governance, Tax Systems, Institutions, and Services
Political Geography:
India and Asia

216. China and Geoeconomic Dynamics in Central Asia: Balancing Global Strategies, Local Interests and Multiple Partners

Author:
Aliya Tskhay
Publication Date:
10-2021
Content Type:
Working Paper
Institution:
Finnish Institute of International Affairs
Abstract:
Central Asia is at the core of China’s ambitious Belt and Road Initiative (BRI), which promises to bring connectivity, trade, and improved infrastructure, as well as overall economic development to the states of the region. Yet beyond the official rhetoric, China is promoting its power through geoeconomic means. This paper looks at areas of cooperation (energy, infrastructure, trade, and finance) and identifies the ways in which China is involved with the region. Through a combination of loans, investments, and infrastructure projects, the research shows how China ‘binds’ the region closer to itself and ‘wedges’ out alternative partners. It also shows how Central Asian states utilise the funding within the BRI framework for national development programmes, whilst navigating avenues for mitigating the establishment of a dependent relationship with China. The paper concludes with some policy implications for China, Central Asia, and the wider region.
Topic:
Development, International Trade and Finance, Infrastructure, Hegemony, Belt and Road Initiative (BRI), and Strategic Interests
Political Geography:
China and Asia

217. China–EU Connectivity in an Era of Geopolitical Competition

Author:
Ian Anthony, Jiayi Zhou, Jingdong Yuan, Fei Su, and Jinyung Kim
Publication Date:
03-2021
Content Type:
Working Paper
Institution:
Stockholm International Peace Research Institute
Abstract:
The long-standing relationship between China and the European Union (EU) is being subsumed into a broader geopolitical competition between major power centres. Alongside cooperation, elements of competition and rivalry have been sharpened by a re-evaluation of the bilateral relationship by EU actors. Areas of cooperation have included Chinese involvement in the EU’s internal connectivity projects—specifically in transport and digital networks. This report examines this cooperation and assesses its prospects. Enhancing connectivity within and around the EU to facilitate trade and commercial relations was relatively uncontroversial even if initiatives were never fully aligned. But the space for common projects has been narrowed by political divergence and new sensitivities in the EU regarding the security implications of Chinese investments. China understands that the EU’s scrutiny of its investments and restrictions on its involvement in connectivity projects are affected by EU–US relations. Despite these tensions, the report shows that constructive ways forward in this globally significant relationship are still possible, both within and beyond the connectivity domains.
Topic:
Security, International Cooperation, European Union, Conflict, Belt and Road Initiative (BRI), and Peace
Political Geography:
China, Europe, and Asia

218. Hostile Harbors: Taiwan’s Ports and PLA Invasion Plans

Author:
Ian Easton
Publication Date:
07-2021
Content Type:
Working Paper
Institution:
Project 2049 Institute
Abstract:
The scale of an all-out Taiwan (Republic of China, ROC) invasion by the Chinese Communist Party’s (CCP) military—the People’s Liberation Army (PLA)—defies human comprehension and would likely eclipse any historical comparison. In this important contribution to the field, Senior Director Ian Easton analyzes Chinese military studies frameworks and internal PLA documents to answer pressing questions that will help Taiwan and the United States both understand and better plan for potential crisis scenarios. He highlights the centrality of ROC port facilities—and Taiwan’s ability to defend them—in the PLA’s potential invasion plans for Taiwan, illustrating likely operational strategies explored by PLA leadership. In addition to postulating ports likely targeted in a PLA invasion, he provides recommendations that the Taiwanese government could undertake to ensure its port infrastructure security, as well as recommendations for the United States on how to be a supportive partner to Taiwan in that effort.
Topic:
Conflict, Port, Military, and People's Liberation Army (PLA)
Political Geography:
China, Taiwan, Asia, and United States of America

219. Righting a Wrong: Taiwan, the United Nations, and United States Policy

Author:
Michael Mazza and Gary J. Schmitt
Publication Date:
10-2021
Content Type:
Working Paper
Institution:
Project 2049 Institute
Abstract:
Fifty years ago, on October 25, 1970, the United Nations General Assembly passed Resolution 2758, which expelled “the representatives of Chiang Kai-shek” from the United Nations (UN) and gave the Republic of China’s seat to the People’s Republic of China (PRC). For several years now, the UN has misread the resolution as meaning that Taiwan is a province of the PRC. Neither the resolution nor the UN Charter empowers the UN Secretary-General to make this determination. Quite to the contrary, as Michael Mazza and Gary Schmitt demonstrate in this report marking the 50th anniversary of Resolution 2758, Taiwan’s participation in the UN system would be in accord with international law and the interests of a globalized world. Absent greater flexibility from Beijing regarding Taiwan’s engagement with the UN, the authors argue, the United States should launch a full court press to achieve Taiwan’s formal membership.
Topic:
Diplomacy, United Nations, History, and International System
Political Geography:
China, Taiwan, Asia, and United States of America

220. Serve the People: The Eradication of Extreme Poverty in China

Author:
Tricontinental: Institute for Social Research
Publication Date:
07-2021
Content Type:
Working Paper
Institution:
Tricontinental: Institute for Social Research
Abstract:
Grandmother Peng Lanhua lives in a two-hundred-year-old rickety wooden house in a remote village of Guizhou Province. Born in 1935, she grew up in a China that was under Japanese occupation and entered adolescence during the Chinese Revolution. Peng is one of the few people in her community who did not want to relocate as part of the government’s poverty alleviation programme when the government designated her house unsafe to live in. Since 2013, eighty-six other households whose houses were deemed too dangerous or for whom jobs could not be generated locally were moved to a newly built community an hour’s drive away. But Peng has her reasons for not moving. She is eighty-six years-old and lives with Alzheimer’s disease. In addition to low-income insurance and a modest pension, she receives supplemental income from a new grapefruit company that leased her family’s land. The company, whose dividends are distributed to villagers like Peng as part of the national anti-poverty efforts, was established to develop the local agricultural industry. Peng’s daughter and son-in-law live next door in a two-storey house they built with government subsidies. Her children are employed. In other words, her basic needs are cared for, and relocation is voluntary. ‘We can’t force anyone to move, but we still have to provide the “three guarantees and two assurances”’, says Liu Yuanxue, the Party cadre sent to live in the village to see that every household emerges from extreme poverty. He is referring to the government poverty alleviation programme’s guarantee of safe housing, health care, and education, as well as being fed and clothed. Liu visits Peng on a monthly basis, as he does with all the households in the village. Through these visits, he comes to know the details of each person’s life. ‘The floor is too messy’, Liu says, jokingly reprimanding Peng’s daughter-in-law as he enters the large wooden house. She is also a member of the Communist Party of China. On the wall, a poster of Chairman Mao and, next to him, President Xi Jinping, pay homage to two of China’s socialist leaders who bookend the course of Peng’s life. Below their portraits sit a weathered table and a dusty terracotta water jug, an internet router flashing green beside them. A string of ethernet cables and wires stretch to different corners of the house (each house gets free internet and CCTV satellite television for three years before a subsidised rate sets in). There are energy-saving lightbulbs in each room and a satellite dish installed next to Peng’s hanging laundry. An extension of the house was built with a toilet and shower equipped with solar-heated running water, the mud floor poured over with concrete. As Lenin said, ‘Communism is Soviet power plus the electrification of the whole country’. Strengthening the Party in the countryside and meeting the concrete needs of the people have been pillars in China’s fight against poverty. Liu’s visit to Peng’s house is just one everyday scene in that process. The fact that Peng has lived in this house for half a century is also a product of the Revolution; in the 1970s, during the Cultural Revolution, the house was confiscated from a rich landlord and redistributed to three poor peasant families, including Peng’s. That cadres like Liu visit her on a monthly basis, that her house has been made safe to live in through the recent renovations, and that there is internet to connect the poorest of rural villages with the world is a continuation of this revolutionary history. After all, ensuring that the country’s workers and peasants like Peng get housed, fed, clothed, and cared for is part of China’s long struggle against poverty and a fundamental stage in constructing a socialist society.
Topic:
Poverty, Governance, Inequality, and Socialism
Political Geography:
China and Asia

221. Indian Women on an Arduous Road to Equality

Author:
Tricontinental: Institute for Social Research
Publication Date:
10-2021
Content Type:
Working Paper
Institution:
Tricontinental: Institute for Social Research
Abstract:
Despite the constraints that their socioeconomic conditions impose on them time and again, Indian women have found their collective voice to fight for their rights. A vibrant women’s movement in various parts of India has fought against the apathy of the state towards the condition of women, attaining big and small victories in asserting the constitutional rights of women as citizens and workers.
Topic:
Gender Issues, Women, Feminism, Social Order, Socioeconomics, and Mobilization
Political Geography:
India and Asia

222. The Farmers’ Revolt in India

Author:
Tricontinental: Institute for Social Research
Publication Date:
06-2021
Content Type:
Working Paper
Institution:
Tricontinental: Institute for Social Research
Abstract:
Despite India’s achievement of a certain level of self-sufficiency in food production over the decades, the chronic agrarian crisis, often manifested in the suicides of farmers, persists. This dossier traces the causes of this crisis, which go back to the days of British colonial rule and to the choices made by the Indian state at various points since independence.
Topic:
Agriculture, Food, Food Security, Colonialism, and Farming
Political Geography:
India and Asia

223. Dawn: Marxism and National Liberation

Author:
Tricontinental: Institute for Social Research
Publication Date:
02-2021
Content Type:
Working Paper
Institution:
Tricontinental: Institute for Social Research
Abstract:
Dossier no. 37 is an invitation to a dialogue, a conversation about the entangled tradition of Marxism and national liberation – a tradition that emerges out of the October Revolution and that deepens its roots in the anti-colonial conflicts of the twentieth and twenty-first centuries. This is an introduction to a wide-ranging conversation that includes many different revolutionary movements, mostly rooted in the continents of Africa, Asia, and Latin America.
Topic:
Socialism/Marxism, Colonialism, Revolution, Liberalization, and Anti-Colonialism
Political Geography:
Africa, Asia, South America, Latin America, and North America

224. Twilight: The Erosion of US Control and the Multipolar Future

Author:
Tricontinental: Institute for Social Research
Publication Date:
01-2021
Content Type:
Working Paper
Institution:
Tricontinental: Institute for Social Research
Abstract:
At the conclusion of World War II, with the European powers severely weakened, the United States – the most powerful of Europe’s settler colonies – took over the neo-colonial management of the planet. Now, almost eighty years later, the primacy of the United States has entered twilight. This dossier explores the emergence of a new cold war imposed by the United States on China and the forms of hybrid war that have been utilised against countries that it deems to be a threat.
Topic:
Imperialism, Hegemony, Conflict, and Hybrid Warfare
Political Geography:
China, Asia, North America, and United States of America

225. The Rise of Global Islamophobia and the Uyghur Genocide

Author:
Rushan Abbas
Publication Date:
09-2021
Content Type:
Working Paper
Institution:
Brown Journal of World Affairs
Abstract:
The world is observing one of the worst humanitarian crises of this century: the Uyghur genocide, a colonial project that uses modern surveillance and widespread concentration camp apparatuses. At the heart of this genocide is a fundamental “otherization” of the Uyghur people that relies on Islamophobic policy and rhetoric to dehumanize the indigenous population of East Turkistan, known to China as Xinjiang. The Chinese Communist Party (CCP) employs Islamophobia to over-police Muslim populations and curtail their civil liber- ties. Islamophobic rhetoric has also driven surges in hate crimes against Muslim communities. The United Nations notes that this trend continues today as Is- lamophobic incidents continue to rise globally.1 The genocide in East Turkistan is the defining human rights atrocity of the twenty-first century thus far. The CCP has remolded a global trend of Islamophobia to fit their own needs—a new chapter in a horrific history. Though the motivations of the Chinese state in East Turkistan are varied, economic gain, cultural unification, and national consolidation all rank highly. Specific policies targeting the practice of Islam have allowed for a brutal crackdown on cultural norms in the region. Meanwhile, a global trend toward Islamophobia has given the genocide some political cover in the global sphere.
Topic:
Genocide, Human Rights, Islamophobia, and Uyghurs
Political Geography:
China, Asia, and Global Focus

226. Porosity of Tajik-Afghan Border Making Beijing’s Involvement in Region More Ominous

Author:
Paul A. Goble
Publication Date:
02-2021
Content Type:
Working Paper
Institution:
The Jamestown Foundation
Abstract:
In most parts of the world, the lines on maps separating countries are true borders. That is, they are controlled by the governments on one or both sides. But in some places, they remain the quasi-open frontiers they were in the past or have reemerged as such because of recent political changes; those borders are highly porous zones, where people and goods can move more or less freely in one or both directions without much regard to the powers that be. Such situations invite outside involvement that can ramp up quickly and disturb preexisting international arrangements. One poignant example is the adjoining border area shared by Tajikistan and Afghanistan. In recent years, that frontier has attracted attention because of the danger that Islamist militants from Afghanistan could cross it to move north into Tajikistan and beyond. But another danger is emerging: China is establishing increasing control over Tajikistan and, thus, is putting itself in a position to project power southward from Tajikistan into Afghanistan. If Beijing does so, that could fundamentally change the security situation and geopolitical balance in Central and South Asia as a whole.
Topic:
Foreign Policy, Territorial Disputes, and Borders
Political Geography:
Afghanistan, China, South Asia, Central Asia, Asia, and Tajikistan

227. Confrontation, Cooperation or Isolation? What will China’s Foreign Policy Look Like During Biden’s Presidency

Author:
Branimir Vidmarovic
Publication Date:
01-2021
Content Type:
Working Paper
Institution:
Institute for Development and International Relations (IRMO)
Abstract:
As the globally difficult 2020 came to an end, China is entering a challenging and perilous period unlike any other in its long history. COVID-19 pandemic, widely believed to have originated in Chinese Wuhan, severely damaged China’s international image, especially among Western democracies. At the beginning of the millennium, Chinese policymakers reached a conclusion that favorable political and security environment presented China with a ‘strategic window of opportunity’ for the next 15 to 20 years, during which the country should strive to achieve its economic, social and security development goals. It was believed that at some point, the West would become wary and agitated by China’s rise – which would in turn lead to a shift towards less favorable conditions.
Topic:
Foreign Policy, International Cooperation, Hegemony, and Isolation
Political Geography:
China and Asia

228. The Belt and Road Initiative and the Internationalisation of China's Scientific Power: The Case of Italy

Author:
Lorenzo Mariani
Publication Date:
09-2021
Content Type:
Working Paper
Institution:
Istituto Affari Internazionali
Abstract:
What are the elements and the impact of the inclusion of scientific cooperation within the 2019 Memorandum of Understanding (MoU) in support of the Belt and Road Initiative between Italy and China? Like many other developed countries, Italy has played a role in contributing to China’s growth as a science and technology (S&T) power. Most S&T bilateral collaborations are decade-long and predate the MoU, suggesting that the importance of the latter is largely symbolic. Nonetheless, the MoU of March 2019 has reinforced the process of centralisation of S&T collaborations as well as a public debate that has grown to include matters regarding 5G technology and public procurement involving Chinese technology. Paper prepared in the framework of the IAI project “When Italy Embraces the BRI”.
Topic:
International Relations, Foreign Policy, Science and Technology, and Research
Political Geography:
Asia and Italy

229. One Belt One Voice: Chinese Media in Italy

Author:
Francesca Ghiretti and Lorenzo Mariani
Publication Date:
10-2021
Content Type:
Working Paper
Institution:
Istituto Affari Internazionali
Abstract:
Chinese media are the voice of the Chinese Communist Party at home and abroad. It is no surprise therefore that collaborations between Chinese and foreign media have been attracting more international attention. One issue that has not been yet explored is the nature and implications of the inclusion of two important Italian media actors such as Rai (the state-run broadcasting company) and Ansa (Italy’s main press agency) in the Memorandum of Understanding signed by Italy in support of the Belt and Road Initiative in 2019. These deals fit in a broader picture of an Italian media environment that is being increasingly targeted by Chinese media. However, the impact that such an effort has had on the Italian public opinion has been very limited so far and the Italian media landscape keeps offering free and varied information. Paper prepared in the framework of the IAI project “When Italy Embraces the BRI”.
Topic:
Foreign Policy, Mass Media, Public Opinion, and Belt and Road Initiative (BRI)
Political Geography:
China, Europe, Asia, and Italy

230. Silk Road Academic Connections: China–Italy Cooperation in Higher Education and Its Implications for the West

Author:
Nicola Casarini
Publication Date:
10-2021
Content Type:
Working Paper
Institution:
Istituto Affari Internazionali
Abstract:
Cooperation in higher education and research is a positive aspect of the broader Italy–China relationship as it contributes to the advancement of the scientific and cultural environment in both countries. China has invested considerable sums to promote cooperation and exchanges with the Italian academy, including through the establishment of a dozen Confucius Institutes and a number of Confucius Classrooms. Italian universities have set up academic partnerships with Chinese entities on almost every subject. These have improved Italy’s research outlook, but have also posed inevitable risks of self-censorship and kowtowing to Chinese wishes. Moreover, there has been a surge of academic sponsorships by Chinese firms, in particular ICT companies such as ZTE and Huawei, which raise further concerns for Italy’s security interests and cooperation with its Western allies.
Topic:
Foreign Policy, Education, Science and Technology, Higher Education, and Research and Development
Political Geography:
China, Europe, Asia, and Italy

231. China in Italy: Risk Assessment and Preventive Solutions

Author:
Beatrice Gallelli and Lorenzo Mariani
Publication Date:
12-2021
Content Type:
Working Paper
Institution:
Istituto Affari Internazionali
Abstract:
Italy’s 2019 decision to sign a Memorandum of Understanding with China in support of the Belt and Road Initiative sparked a heated debate at home and abroad. The possibility of Italy upgrading its trade and investment relations with China through the shortcut of a political endorsement of President Xi Jinping’s flagship foreign-policy initiative was framed as either a heaven-sent opportunity or a serious strategic threat. Two years on, most of the concerns pointed out in the debate, especially regarding infrastructures, have proven unsubstantiated (although the economic opportunities for which the Italian Government wished have also failed to materialise). However, cooperation initiatives between Italian and Chinese entities in sectors often overlooked in the mainstream debate, such as media and academic partnerships, do present risks. The creation of an interagency China Information and Coordination Unit would help to prevent – or, at least, to minimise – such risks. Paper prepared in the framework of the IAI project “When Italy Embraces the BRI”.
Topic:
Foreign Policy, Education, Science and Technology, Mass Media, Foreign Direct Investment, and Trade
Political Geography:
China, Europe, Asia, and Italy

232. Technological Competition: Can the EU Compete with China?

Author:
Francesca Ghiretti
Publication Date:
04-2021
Content Type:
Working Paper
Institution:
Istituto Affari Internazionali
Abstract:
The debate on technological development and the unfolding fourth technological revolution tends to neglect the role of the EU, relegating it to follower status. The leadership positions are occupied by the US and China, who compete with one another for technological supremacy. Yet, despite lagging behind in some areas, the EU is better placed than is often assumed and still stands a chance of guaranteeing the delivery of a technological revolution that is not only environmentally but also socially sustainable. This is critical in proposing a model of technological development alternative to that of China, in particular, and especially in such sectors as artificial intelligence, supercomputing and digital skills. Study produced as part of the project “La geopolitica del digitale”, March 2021.
Topic:
Politics, Science and Technology, European Union, Institutions, Strategic Competition, and Digital Policy
Political Geography:
China, Europe, and Asia

233. The Belt and Road Initiative in Italy: The Ports of Genoa and Trieste

Author:
Francesca Ghiretti
Publication Date:
05-2021
Content Type:
Working Paper
Institution:
Istituto Affari Internazionali
Abstract:
In March 2019, Italy signed a Memorandum of Understanding (MoU) with the People’s Republic of China (PRC) in support of PRC President Xi Jinping’s flagship infrastructure and connectivity project, the Belt and Road Initiative. The MoU was accompanied by a series of commercial agreements, including two between the ports of Genoa and Trieste and the state-owned enterprise China Communications Construction Company (CCCC). The European Union and the United States expressed concerns about the agreements as they feared that CCCC would eventually obtain a controlling share of the ports, not unlike that recently secured by the China Ocean Shipping Company (COSCO) with Greece’s Port of Piraeus. However, existing legal constraints, an open international and national debate, and the vague nature of the agreements concerned have so far kept these fears from materialising. Paper prepared in the framework of the IAI project “When Italy embraces the BRI”.
Topic:
Foreign Policy, Infrastructure, Belt and Road Initiative (BRI), and Trade
Political Geography:
China, Europe, Asia, and Italy

234. China's Belt and Road Initiative in Italy: An Analysis of Financial Cooperation

Author:
Nicola Bilotta
Publication Date:
05-2021
Content Type:
Working Paper
Institution:
Istituto Affari Internazionali
Abstract:
Financial cooperation is essential to boosting bilateral economic ties, providing firms with more effective instruments to operate in foreign markets. It should come as no surprise, then, that financial cooperation was a pillar of the 2019 Memorandum of Understanding (MoU) reached between Italy and China in support of the latter’s Belt and Road Initiative (BRI). However, a preliminary analysis of BRI-related commercial agreements between Italian financial institutions and their Chinese counterparts shows that they have not resulted in any ground-breaking development. These Memoranda have apparently just added a “BRI” badge to pre-existing trends of collaboration. The BRI-related MoUs in the field of financial cooperation do not, for the time being at least, justify concerns that China may gain an economic foothold in Italy large enough to win it much political influence. A more realistic risk is that these MoUs may undermine a common European approach to China, weakening the negotiating stance of the European Union’s. Paper prepared in the framework of the IAI project “When Italy embraces the BRI”.
Topic:
Foreign Policy, Political Economy, Governance, Finance, and Belt and Road Initiative (BRI)
Political Geography:
China, Europe, Asia, and Italy

235. Natural Gas in South-east Asia: Key Trends and Long-term Outlook

Author:
Luca Franza and Beni Suryadi
Publication Date:
05-2021
Content Type:
Working Paper
Institution:
Istituto Affari Internazionali
Abstract:
Given the increasing gas demand and declining domestic supply, countries in South-east Asia are bracing themselves to become net gas importers and are studying ways to enhance their security of supply. LNG will be the preferred source of gas, thanks to its flexibility and widespread availability at competitive prices in global markets. However, concerns related to excessive gas import dependency might reduce appetite for additional gas usage in South-east Asia. This could mean that coal would have a larger role, which is bad news for climate change. Countries in the ASEAN region need policies to achieve balanced, reliable, secure and cost-effective energy supply, a pre-requisite for the region’s ambitious economic development plans. A combination of solid local policies, investment by international players in the region and stability in global gas markets would enable gas to play a positive role in South-east Asia, which is a fast-growing region and an increasingly important catalyst of global energy market developments. Paper prepared in the framework of the IAI-Eni Strategic Partnership, May 2021.
Topic:
Climate Change, Energy Policy, Natural Resources, Gas, and ASEAN
Political Geography:
Asia and Southeast Asia

236. The (Im-)Possibility of Rational Socialism: Mises in China’s Market Reform Debate

Author:
Isabella Weber
Publication Date:
10-2021
Content Type:
Working Paper
Institution:
Political Economy Research Institute (PERI), University of Massachusetts Amherst
Abstract:
Investigate the long first decade of reform in China (1978-1992) to show that Mises, in particular his initiating contribution to the Socialist Calculation Debate, became relevant to the reconfiguration of China’s political economy when the reformers gave up on the late Maoist primacy of continuous revolution and adhered instead to an imperative of development and catching up. During the Cultural Revolution, Mao had rejected the notions of efficiency and rational economic management. In the late 1970s, the reformers under Deng Xiaoping’s leadership elevated these notions to highest principle. As a result, Mises’ critique that socialism could not achieve a rational economic order came to be debated throughout the 1980s and Chinese economists developed their own reading of Mises and the Socialist Calculation Debate. When Deng Xiaoping reinstated market reforms in the early 1990s after the Tiananmen crackdown, a history of thought review of the possibility of rational socialism and socialist markets helped to justify the Socialist Market Economy with Chinese Characteristics the official designation of China’s economic system to this day.
Topic:
Markets, History, Reform, Economy, and Socialism
Political Geography:
China and Asia

237. Regulated Market, Trapped Workers: The Impacts of the "Tolerant and Prudent" Policy on Labour Precarity in China’s Online Ridehailing Sector

Author:
Wei Zhang, Hao Qi, and Zhongjin Li
Publication Date:
11-2021
Content Type:
Working Paper
Institution:
Political Economy Research Institute (PERI), University of Massachusetts Amherst
Abstract:
Since 2017, China has adopted the "tolerant and prudent" policy in regulating emerging digital platform industries. The impacts of this policy on labour precarity have been rarely studied. Drawing on an original survey of over 600 ridehailing drivers in two Chinese cities, Nanjing and Beijing, we conduct a political economy analysis for a three-party framework involving the municipal government, capital, and labour. We find that, in accordance with the "tolerant and prudent" principle, municipal governments stipulated regulations regarding the qualifications of ridehailing vehicles and drivers. These regulations, although they can help reduce labour precarity in the marketplace for licensed drivers, have exacerbated precarity in the workplace. Specifically, in response to the regulations, the ridehailing platforms aligned with thirdparty rental companies that provided licensed vehicles. This arrangement has effectively trapped many ridehailing drivers in the industry: our quantitative analysis shows that drivers bounded by a rental or rent-toown agreement worked significantly longer hours than counterparts who steered their own vehicles.
Topic:
Markets, Labor Issues, Regulation, Digital Economy, and Precarity
Political Geography:
China and Asia

238. Predicting Chinese State-Owned Enterprise Policy Incidence

Author:
Sara Hsu
Publication Date:
06-2021
Content Type:
Working Paper
Institution:
Political Economy Research Institute (PERI), University of Massachusetts Amherst
Abstract:
In this exploratory research, we examine the effect of economic and noneconomic indicators on the creation of Chinese state-owned enterprise policies. Using a VAR model, we find indicators that explain state-owned enterprise policy creation variance, which means that we can explain, to some extent, the incidence of state-owned enterprise policies. This reduces economic policy uncertainty, thereby having the potential to increase economic activity and reduce costs.
Topic:
Political Economy, Economy, and State-Owned Enterprises
Political Geography:
China and Asia

239. Predicting Chinese Banking Policy Incidence

Author:
Sara Hsu
Publication Date:
07-2021
Content Type:
Working Paper
Institution:
Political Economy Research Institute (PERI), University of Massachusetts Amherst
Abstract:
In this exploratory research, we examine the effect of economic and noneconomic indicators on the creation of Chinese Banking and Insurance Regulatory Commission policies using a VAR model. We find that CBIRC policies are predicted by State Council construction policies and policies set by the State Administration of Foreign Exchange. This indicates that the CBIRC is inward-looking, observing what other regulators are doing rather than responding to changes in the real and financial economy. This may be a product of market distortions due to China’s unique blend of state-oriented and market-based institutions.
Topic:
Political Economy, Regulation, and Banking
Political Geography:
China and Asia

240. The Hong Kong National Security Law and its Implications for Middle Powers

Author:
Tuvia Gering
Publication Date:
08-2021
Content Type:
Working Paper
Institution:
Jerusalem Institute for Strategy and Security (JISS)
Abstract:
In May 2021, an Israeli company became the first documented case of China imposing free expression limitations on a foreign business under the 2020 Hong Kong National Security Law. Democracies must ensure that their citizens are not prosecuted for exercising their basic rights.
Topic:
Security, Democracy, Freedom of Expression, and Freedom
Political Geography:
China, Middle East, Israel, and Asia

241. China’s biased role in the Israeli-Palestinian conflict

Author:
Tuvia Gering
Publication Date:
06-2021
Content Type:
Working Paper
Institution:
Jerusalem Institute for Strategy and Security (JISS)
Abstract:
Beijing’s anti-Israel statements and actions during the recent Gaza operation undermined Israeli trust in China.
Topic:
Diplomacy, Bilateral Relations, Conflict, and Negotiation
Political Geography:
China, Middle East, Israel, and Asia

242. China’s Experience in Building a Venture Capital Sector: Four Lessons for Policy Makers

Author:
Anton Malkin
Publication Date:
01-2021
Content Type:
Working Paper
Institution:
Centre for International Governance Innovation
Abstract:
China’s journey from being a technological backwater to a technological superpower was fuelled, in part, by the success of its venture capital (VC) sector in supporting start-ups. Its VC market is now the second largest in the world after that of the United States. As of 2019, China produced more “unicorns” (privately held, rapidly growing, early-stage technology companies valued at US$1 billion or more) than the United States. Policy makers can learn the following lessons from China’s growing VC sector: China’s use of labour market incentives promotes reverse migration of highly educated expatriates; weak intellectual property protection is not necessarily a deterrent to VC funding, especially in developing countries; government finance, when used appropriately, can help direct VC toward promising technology firms; and an emerging market does not need to wait until it becomes financially developed in order to create funding channels to support start-ups and entrepreneurship.
Topic:
Science and Technology, Hegemony, Finance, and Venture Capital
Political Geography:
China and Asia

243. Biotechnology and Security Threats: National Responses and Prospects for International Cooperation

Author:
Hanzhi Yu and Yang Xue
Publication Date:
03-2021
Content Type:
Working Paper
Institution:
Centre for International Governance Innovation
Abstract:
Cutting-edge biotechnology, mainly consisting of gene editing, gene drives and gene synthesis, is developing and changing rapidly. It acts as a double-edged sword, bringing benefits to human development in many fields, such as medical treatment and agriculture, while also posing serious threats to biological security, human existence and development. For example, the case of He Jiankui, a young scholar from the Southern University of Science and Technology of China who created gene-edited babies, triggered a global controversy and debate on biosafety in the winter of 2018. This paper argues that the problems China faces do not only exist in China — they are in fact common problems faced by all countries in the world. Due to the COVID-19 pandemic, the world is paying close attention to global health governance and biosafety issues. There is a window of opportunity for global collaboration to deal with biosecurity threats.
Topic:
Security, International Cooperation, Science and Technology, and Biotechnology
Political Geography:
China and Asia

244. China’s Techno-Industrial Development: A Case Study of the Semiconductor Industry

Author:
Alex He
Publication Date:
05-2021
Content Type:
Working Paper
Institution:
Centre for International Governance Innovation
Abstract:
This paper reviews the strategies and plans, policy-making institutions, process and problems in China’s techno-industrial development. Although it has made noticeable progress in some areas in the past two decades, China still lags behind in most core technology and advanced manufacturing fields, such as high-end chips. There have been several real breakthroughs in the semiconductor sector by private companies such as HiSilicon and rapid advancement in frontier technologies — artificial intelligence, fifth-generation wireless communication network technology, big data, blockchain and the Internet of Things — by private companies such as Huawei, Tencent, Alibaba and Baidu; however, state-sponsored technological innovation and breakthroughs have been crippled by the existing problems in China’s science and technology research system and a campaign-style catch-up strategy that rewards bureaucrats on short-term goals, as well as by weak links between academic research and industry and a swing between the market-oriented approach for technology acquisitions and indigenous innovation for technology breakthroughs. A case study of China’s semiconductor industry demonstrates both the problems and progress in China’s techno-industrial development, as well as the implications for the country's prospects of evolving into a technological powerhouse.
Topic:
Development, Science and Technology, Artificial Intelligence, Industry, and 5G
Political Geography:
China and Asia

245. The Road from Galwan: The Future of India-China Relations

Author:
Vijay Gokhale
Publication Date:
03-2021
Content Type:
Working Paper
Institution:
Carnegie Endowment for International Peace
Abstract:
China and India struggle to comprehend each other’s international ambitions. The misperceptions that follow lead to a lack of trust, border skirmishes, and potentially worse. On June 15, 2020, Indian and Chinese troops engaged in a brawl that left twenty Indian soldiers dead while causing an unspecified number of Chinese casualties. The clash is a part of a broader border standoff along the Galwan River between the two forces on the Line of Actual Control that is yet to be resolved. The Indian strategic community is broadly in agreement that this border dispute marks an implacable decline in India-China ties. They argue that the very basis of relations that emerged after former Indian prime minister Rajiv Gandhi’s visit to Beijing in 1988 has been shaken, if not destroyed. Yet, how did the two countries manage to reach this nadir in ties, and furthermore, what does the Galwan clash signify for the future of Sino-Indian relations? This paper argues that, long before the present border dispute occurred, Sino-Indian relations had been steadily declining due to rampant misperceptions of the other side, contributing to a lack of trust. The most fundamental misperception between the two countries is the inability to comprehend each other’s international ambitions, yielding the fear that their foreign policies are targeted against the other. This paper traces the impact and development of these misperceptions on Sino-Indian ties through three different phases before considering the future of the relationship after the Galwan dispute.
Topic:
Foreign Policy, Bilateral Relations, Territorial Disputes, and Borders
Political Geography:
China, South Asia, India, and Asia

246. China’s Improvised Mask Diplomacy in Chile

Author:
Urdinez. Francisco
Publication Date:
04-2021
Content Type:
Working Paper
Institution:
Carnegie Endowment for International Peace
Abstract:
During the pandemic, Chinese medical and equipment supplies to Chile have come mostly from a diverse cast of Chinese players with local experience in Chile. They adapted to Chile’s unique system of emergency and disaster management. China has become a global power, but there is too little debate about how this has happened and what it means. Many argue that China exports its developmental model and imposes it on other countries. But Chinese players also extend their influence by working through local actors and institutions while adapting and assimilating local and traditional forms, norms, and practices. With a generous multiyear grant from the Ford Foundation, Carnegie has launched an innovative body of research on Chinese engagement strategies in seven regions of the world—Africa, Central Asia, Latin America, the Middle East and North Africa, the Pacific, South Asia, and Southeast Asia. Through a mix of research and strategic convening, this project explores these complex dynamics, including the ways Chinese firms are adapting to local labor laws in Latin America, Chinese banks and funds are exploring traditional Islamic financial and credit products in Southeast Asia and the Middle East, and Chinese actors are helping local workers upgrade their skills in Central Asia. These adaptive Chinese strategies that accommodate and work within local realities are mostly ignored by Western policymakers in particular. Ultimately, the project aims to significantly broaden understanding and debate about China’s role in the world and to generate innovative policy ideas. These could enable local players to better channel Chinese energies to support their societies and economies; provide lessons for Western engagement around the world, especially in developing countries; help China’s own policy community learn from the diversity of Chinese experience; and potentially reduce frictions.
Topic:
Diplomacy, Disaster Relief, Health, Pandemic, and COVID-19
Political Geography:
China, Asia, South America, and Chile

247. The US–China trade war and phase one agreement

Author:
Chad P. Bown
Publication Date:
02-2021
Content Type:
Working Paper
Institution:
Peterson Institute for International Economics
Abstract:
The Trump administration changed US trade policy toward China in ways that will take years for researchers to sort out. This paper makes four specific contributions to that research agenda. First, it carefully marks the timing, definitions, and scale of the products subject to the tariff changes affecting US-China trade from January 20, 2017 through January 20, 2021. One result is that each country increased its average duty on imports from the other to rates of roughly 20 percent, with the new tariffs and counter-tariffs covering more than 50 percent of bilateral trade. Second, the paper highlights two additional channels through which bilateral tariffs changed during this period: product exclusions from tariffs and trade remedy policies of antidumping and countervailing duties. These two channels have received less research attention. Third, it explores why China fell more than 40 percent short of meeting the goods purchase commitments set out for 2020, the first year of the phase one agreement. Finally, the paper considers additional trade policy actions—involving forced labor, export controls for reasons of national security or human rights, and reclassification of trade with Hong Kong—likely to affect US-China trade beyond the Trump administration.
Topic:
Education, Trade Wars, Trade Policy, and Protectionism
Political Geography:
China, Asia, North America, and United States of America

248. How China lends: A rare look into 100 debt contracts with foreign governments

Author:
Anna Gelpern, Sebastian Horn, Scott Morris, Brad Parks, and Christoph Trebesch
Publication Date:
05-2021
Content Type:
Working Paper
Institution:
Peterson Institute for International Economics
Abstract:
China is the world’s largest official creditor, but basic facts are lacking about the terms and conditions of its lending. Very few contracts between Chinese lenders and their government borrowers have ever been published or studied. This paper is the first systematic analysis of the legal terms of China’s foreign lending. The authors collect and analyze 100 contracts between Chinese state-owned entities and government borrowers in 24 developing countries in Africa, Asia, Eastern Europe, Latin America, and Oceania, and compare them with those of other bilateral, multilateral, and commercial creditors. Three main insights emerge. First, the Chinese contracts contain unusual confidentiality clauses that bar borrowers from revealing the terms or even the existence of the debt. Second, Chinese lenders seek advantage over other creditors, using collateral arrangements such as lender-controlled revenue accounts and promises to keep the debt out of collective restructuring (“no Paris Club” clauses). Third, cancellation, acceleration, and stabilization clauses in Chinese contracts potentially allow the lenders to influence debtors’ domestic and foreign policies. Even if these terms were unenforceable in court, the mix of confidentiality, seniority, and policy influence could limit the sovereign debtor’s crisis management options and complicate debt renegotiation. Overall, the contracts use creative design to manage credit risks and overcome enforcement hurdles, presenting China as a muscular and commercially savvy lender to the developing world.
Topic:
Foreign Policy, Debt, Government, and Banking
Political Geography:
China and Asia

249. The Vision Group on U.S.-ROK Relations: Insights and Recommendations

Author:
KEI
Publication Date:
01-2021
Content Type:
Working Paper
Institution:
Korea Economic Institute of America (KEI)
Abstract:
The Korea Economic Institute of America (KEI), with the generous support of the Korea Foundation, organized six “Vision Group” roundtable conversations with leading American scholars and commentators to discuss the United States’ relationship with the Republic of Korea. The first was held in December 2019, the last in November 2020. The intent was to consider the future of relations during a time of change. The Vision Group comprised a wide range of expertise and opinion. This record conveys some of the insights and recommendations that arose during the conversations.
Topic:
International Relations, Security, Foreign Policy, Economics, and Human Rights
Political Geography:
China, Asia, South Korea, North Korea, and United States of America

250. Limits of Public Diplomacy and Soft Power: Lessons from the THAAD Dispute for South Korea's Foreign Policy

Author:
Maximilian Ernst
Publication Date:
04-2021
Content Type:
Working Paper
Institution:
Korea Economic Institute of America (KEI)
Abstract:
This paper examines South Korea’s foreign policy towards China before, during, and after the Terminal High Altitude Area Defense (THAAD) missile defense dispute to investigate the limits of South Korea’s public diplomacy and soft power. South Korea’s official public diplomacy has the objective to “gain global support for Korea’s policies,” following Joseph Nye’s narrow definition of soft power. South Korea furthermore ranks high in the most relevant soft power indices. Based on the case of Chinese economic retaliation against South Korea in response to THAAD deployment, this paper argues that public diplomacy and soft power only work in the absence of traditional security contentions, but fail in the presence of such security contentions. The THAAD case also demonstrates the utility of traditional diplomacy, based on high-level summits and negotiations, to solve the very disputes that South Korea’s latent public diplomacy and soft power were unable to alleviate.
Topic:
International Relations, Foreign Policy, Diplomacy, Economics, and Weapons
Political Geography:
China, Asia, South Korea, and Korea