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41. China’s Semiconductors Reflections on Sources and Solutions to an Expensive Problem

Author:
Jonathan Liebenau
Publication Date:
11-2023
Content Type:
Working Paper
Institution:
LSE IDEAS
Abstract:
The semiconductor industry has been a renewed topic of political debate for over three years. Due to recent US sanctions on the most advanced semiconductors, the industry has quickly become another flashpoint in the competition between the US and China to dominate the 21st century’s strategic technologies. In this Strategic Update, Dr Jonathan Liebenau explains the development of the semiconductor industry in the context of China’s rise to become an increasingly capable technology power. China’s sustained efforts in industrial policy to cultivate a domestic innovation system coincided with Western firms’ offshoring strategies since the 1990s, transforming China into a large producer and consumer of semiconductors. While Taiwan and the West retained cutting edge chip design capabilities, Chinese firms such as Huawei and Hikvision have become competitive providers of mobile phones, surveillance equipment and related infrastructure services. Despite Washington and its partners’ conviction to constrain in China’s technological prowess, industrial policy initiatives such as the CHIPS Act will face an uphill battle when it comes to bringing manufacturing capacity back to Western economies. In this context, the UK must combine short term incentives with a longer-term strategic vision to remain competitive in one of the 21st century’s key strategic arenas.
Topic:
Science and Technology, Sanctions, Strategic Competition, Production, and Semiconductors
Political Geography:
China, Asia, North America, and United States of America

42. China’s smart cities and the future of geopolitics

Author:
Valentin Weber
Publication Date:
05-2023
Content Type:
Working Paper
Institution:
LSE IDEAS
Abstract:
In this latest Strategic Update, Valentin Weber explores Chinese scientific research and industry application of smart cities, with ‘city brains’. The geostrategic implications for these complex Chinese smart city construction projects outside of China – particularly surrounding surveillance and artificial intelligence – and a potential future ‘world digital brain’ must be considered by policymakers, even if we are far away from an eventual bifurcation of the global internet.
Topic:
Science and Technology, Geopolitics, Surveillance, Artificial Intelligence, and Smart Cities
Political Geography:
China and Asia

43. Countering United Front Work: Taiwan’s Political Warfare System

Author:
Mariah Thornton
Publication Date:
03-2023
Content Type:
Working Paper
Institution:
LSE IDEAS
Abstract:
This strategic update introduces the challenges posed by China’s united front work, which has significantly expanded due to unprecedented institutional elevation and support under Xi Jinping. Mariah argues that Taiwan—a country that has effectively resisted China’s united front activities for several decades—can serve as an instructive case for other democratic countries in institutionalising counter-interference operations. The briefing initially explores the origins of Taiwan’s political warfare system, its evolution from the martial law era to democratisation in the 1990s, and how this history informs the institution’s modern structure and operations. The information presented in this report was compiled during a period of fieldwork in Taiwan from late September to early November 2022, in which she interviewed dozens of political warfare officers as well as Taiwanese defence and security experts–a majority of whom have chosen to remain anonymous. In the conclusion, Mariah offers broad policy recommendations based on these findings that may be applicable to other countries experiencing united front work activities and or seeking to institutionalise counter-interference operations.
Topic:
Security, Defense Policy, Politics, Public Opinion, Propaganda, and Regional Security
Political Geography:
China, Taiwan, and Asia

44. China’s Global Strategy as Science Fiction

Author:
William A. Callahan
Publication Date:
01-2023
Content Type:
Working Paper
Institution:
LSE IDEAS
Abstract:
Xi Jinping is leading China in a new direction, but how are we to understand his global strategy? For most countries, to understand domestic and international politics we would analyse authoritative sources – leaders’ speeches, official documents and statistics, elite interviews and essays, and public opinion surveys. In the 2000s these methods worked well to probe Chinese politics. But since civil society and independent thought have been severely restricted under Xi, it’s necessary to go beyond such “factual” sources. To understand China’s global strategy, it’s best to read fiction, especially Chinese science fiction. This essay critically analyses Liu Cixin’s novels, The Wandering Earth and the Three Body Problem trilogy, to probe how Chinese sci-fi pushes us to think creatively about key topics: the relation of humans and technology, the relation of science and politics, and the relations between political communities, i.e. are we doomed to existential struggle, or can we engage with difference in creative and productive ways?
Topic:
Foreign Policy, Science and Technology, Grand Strategy, Novels, and Science Fiction
Political Geography:
China and Asia

45. China’s Provinces as Global Actors: Evidence from China-Africa Relations

Author:
Charlotte Lenz
Publication Date:
01-2023
Content Type:
Working Paper
Institution:
LSE IDEAS
Abstract:
With the launch in the early 2000s of China’s ‘Going Global’ Strategy, Chinese provinces became one group of actors participating in China’s South-South relations. In this Strategic Update, Charlotte Lenz investigates the role of Chinese provinces as foreign policy actors and explains their internationalisation strategies, challenging the prevalent perception of China as a unitary actor on the world stage. Drawing on evidence from Africa-China relations, the report identifies two strategies employed by Chinese provinces in pursuit of their foreign policy interests: (1) Formal and informal “twinning” as a collaborative model between central and local actors, wherein central actors design policies and provincial governments execute projects; (2) and “clustering” according to a sectoral logic of investment and diplomacy in which a certain Chinese province engages a certain foreign country. Despite ongoing bureaucratic centralisation under Xi Jinping, provinces continue to pursue their own internationalisation strategies to help meet local economic and employment targets. Understanding their agency, interests and limitations is thus key to deriving a better understanding of China’s evolving global presence.
Topic:
Foreign Policy, Diplomacy, Bilateral Relations, Investment, and Internationalization
Political Geography:
Africa, China, and Asia

46. China’s Grand Vision and the Persian Gulf

Author:
Anoushiravan Ehteshami
Publication Date:
03-2023
Content Type:
Working Paper
Institution:
Istituto Affari Internazionali
Abstract:
China’s engagement with Asian regions beyond its geographical periphery has grown exponentially since the 1990s and this is nowhere more evident than in West Asia and the Persian Gulf subregion. While energy drove China’s early interactions with the Gulf states, within two decades after the Cold War the relationships had evolved into much tighter networks of partnerships. China’s relations with the Gulf states, however, has not been uniform and the case studies of the United Arab Emirates and Iran highlight the complexities of China’s strategy in this subregion and the ways in which it actively pursues its diverse set of interests.
Topic:
International Relations, Foreign Policy, Partnerships, and Strategic Interests
Political Geography:
China, Iran, Middle East, and Gulf Nations

47. The Internationalisation of the Chinese Renminbi and China’s Digital Currency Plans

Author:
Lorenzo Bencivelli and Michele Savini Zangrandi
Publication Date:
04-2023
Content Type:
Working Paper
Institution:
Istituto Affari Internazionali
Abstract:
China has made major reforms to boost the international standing of its currency. The global presence of the renminbi remains contained, however. This is due to China’s economic structure (a persistent current account surplus and a partially closed financial account) and the government’s grip on the economy. China is also a Central Bank Digital Currency (CBDC) forerunner. The digital yuan (e-cny) is already active in a large scale trial. Many claim that the e-cny could provide a major boost to the internationalisation of the renminbi. However, the internationalisation of the renminbi would require major economic reforms that cannot be bypassed by the deployment of new technologies. The e-cny is therefore unlikely to boost the renminbi’s international presence. Yet, its underlying technology could be exported to other countries wishing to deploy their own-currency CBDCs. Much like with telecommunication equipment, this scenario would put China in the position of being a provider of a critical infrastructure. In the longer run, the export of e-cny technology might also facilitate the creation alternative payment networks, though this scenario is not very likely.
Topic:
Political Economy, Governance, Finance, Currency, and Digital Policy
Political Geography:
China and Asia

48. Reinventing Soft Power: The Strong Impact of China’s Soft Power “Shortcomings” on the Global South

Author:
Tanina Zappone
Publication Date:
07-2023
Content Type:
Working Paper
Institution:
Istituto Affari Internazionali
Abstract:
After being introduced into the Chinese academic debate in the 1990s, the notion of soft power has undergone such a process of “Sinicisation” that some scholars now wonder if the original concept has been gradually “reinvented” in China. Given worsening opinions about the PRC in the US and Europe over the last years, many analysts have stressed the weakness of China’s soft power, pointing to its state-centred approach and lack of an attractive set of values to be emulated as the main shortcomings. However, China’s growing influence in the Global South shows that these analyses have misevaluated the real goals and motivations of China’s soft power. The Russia-Ukraine war provides telling examples of the successful dynamics of China’s “defensive” or “negative” version of soft power and suggests it has significant impact in the least industrialised countries.
Topic:
Foreign Policy, Development, and Soft Power
Political Geography:
Russia, China, Ukraine, Asia, and Global South

49. China and the Global South: Many Initiatives, One Narrative

Author:
Marina Rudyak
Publication Date:
08-2023
Content Type:
Working Paper
Institution:
Istituto Affari Internazionali
Abstract:
Since its 2013 launch, the China-led Belt and Road Initiative (BRI) has stirred heated debates. Despite Beijing framing it as win-win cooperation, concerns mounted over BRI’s risks for involved countries, especially in the Global South. China’s narrative merely signals a search for an effective communication strategy and international discourse power, while its understanding of development remains constant. Developing countries play a crucial role in China’s pursuit of global status. Firstly, it positions itself as the advocate for developing nations, promoting “diverse paths to modernisation” and “true multilateralism”. Secondly, China aims to redefine major power by prioritising development and security over liberal democracy.
Topic:
Foreign Policy, Development, Infrastructure, Multilateralism, Belt and Road Initiative (BRI), and Modernization
Political Geography:
China, Asia, and Global South

50. China’s Changing COVID-19 Policies: Market and Public Health

Author:
Zhun Xu
Publication Date:
05-2023
Content Type:
Working Paper
Institution:
Political Economy Research Institute (PERI), University of Massachusetts Amherst
Abstract:
After the outbreak of COVID-19 in early 2020, China took fast and decisive measures to successfully contain the spread of the virus within its borders. While the rest of the world saw huge human and social costs in the pandemic, the Chinese mainland for about two years was largely free from COVID. The zero-COVID model, however, met great challenges by early 2022. Despite some efforts to save the zero-COVID model, in November 2022, the Chinese government abruptly abandoned its signature COVID controls during the pandemic and switched to the opposite. This article reviews the evolution of the Chinese COVID policies and places the dramatic turns in the context of the changing Chinese political economy. The findings show that the shifting class interests and actions were an important force behind China’s retreat from zero- COVID.
Topic:
Markets, Political Economy, Public Health, and COVID-19
Political Geography:
China and Asia

51. PRC Foreign and Military Policy, 1977-81: Shades of Mao, the Imprint of Deng

Author:
Frederick C. Teiwes and Warren Sun
Publication Date:
02-2022
Content Type:
Working Paper
Institution:
China Studies Centre, The University of Sydney
Abstract:
This Working Paper is a draft chapter for a book on the poorly understood CCP elite politics of the early post-Mao period, tentatively entitled Hua Guofeng, Deng Xiaoping, and the Dismantling of Maoism. Conventional wisdom pictures the period up to the December 1978 Third Plenum as a struggle between Hua and Deng, reflecting neo-Maoist v. reformist tendencies, and won by Deng at the plenum. In fact, there was broad consensus between them, Hua was more proactive in key areas, and there is no evidence of anything approaching a power struggle. This paper, however, deals with an area where elements of accepted views of Deng hold up. In essence, Deng held both the foreign policy and particularly PLA portfolios, notably where they concerned the crucial relationships with the US, Soviet Union, Japan, and Vietnam. In external relations Deng was broadly regarded to have performed brilliantly, while Hua was thought a mere cypher. Overall, Hua was clearly secondary in external relations, but he took the bold step of initiating relations with revisionist Yugoslavia, made the most telling proposal in the high-level negotiations with the US, and deeply impressed dominant European leaders Margaret Thatcher and Helmut Schmidt. Deng’s foreign policy outlook was deeply influenced by Mao, he could push Mao’s “horizontal line” concept to counterproductive extremes, almost losing the Sino-Japanese Peace Treaty, and rather than brilliantly negotiating US normalization, the Chinese side was slow to grasp the outcome that was always there. Most significant, and revealing of the underlying dynamic of CCP politics, was the war against Vietnam. This was truly Deng’s war, opposed by not only Hua, but also by a broad array of senior civilian and PLA officials, including surviving marshals. This was essentially the first time since his return to work in 1977, in contrast to persuading his colleagues through intense effort, that Deng simply asserted his authority. Neither here or elsewhere, was argument decisive as it had generally been under Hua’s leadership to that point. What was decisive was Deng’s enormous prestige as the most outstanding of the surviving “old revolutionaries” who achieved the success of 1949. It was the same factor that allowed Deng’s quiet coup against Hua at the turn of 1979-80, with no significant resistance from Hua or anyone else, and with no explanation being made in any official forum until well after the fact.
Topic:
Diplomacy, Politics, Governance, Leadership, and Normalization
Political Geography:
China and Asia

52. Australia’s Response to the China Threat: The Case for Engagement

Author:
David S. G. Goodman
Publication Date:
01-2022
Content Type:
Working Paper
Institution:
China Studies Centre, The University of Sydney
Abstract:
The dominance of the China Threat discourse in Australia’s public affairs suggests poor prospects for any continued Australia-China relations, let alone positive interactions of mutual benefit. An exploration of alternative ways to approach Australia’s relationship with China may though prove not only more constructive but also better future-proofed. The first step is to recognize that while China certainly poses challenges to Australia the perception of threat is more relevant to the USA. The second is the recognition of differences and the development of ways to mediate those differences. And the third is to build on the complementarities for the benefit of both Australia and China, not just through economic but also through social interactions. As Europe discovered in the 1950s, the development of mutual understanding of other peoples, their cultures, and their social and economic systems is a precursor not simply to respect and the avoidance of unwarranted prejudice, but to cooperation for a wider public good.
Topic:
Security, Hegemony, Conflict, and Rivalry
Political Geography:
China, Asia, and Australia

53. Digitalization of Special Economic Zones in China

Author:
Jie (Jeanne) Huang
Publication Date:
01-2022
Content Type:
Working Paper
Institution:
China Studies Centre, The University of Sydney
Abstract:
Special Economic Zones (SEZ) have become the forefront in China to test legal and technological reforms for digital trade. This chapter explores three cutting-edge case studies in China’s SEZs: the Beijing blockchain-based Single Window deposit box; newly established big data exchanges in Beijing, Tianjin, and Shanghai SEZs; and pilot projects in financial, medical care and automobile industries to flow data across the border in the Shanghai SEZ. It scrutinizes China's experiments in the context of its applications to join CPTPP and DEPA. It argues that the development of Chinese domestic law for digital trade is shifting away from the traditional paradigm that uses international commitments to push domestic reform or make domestic law according to international law. The development of Chinese domestic law for digital trade relies much more on China’s domestic needs than what FTAs negotiations require. FTAs are increasingly becoming a tool for China to shape international law rather than a benchmark for legislating domestic Chinese law.
Topic:
Development, Economics, International Trade and Finance, Hegemony, and Digitalization
Political Geography:
China and Asia

54. A US failure in Ukraine Crisis could lead to a conflagration in Middle East, Asia

Author:
Efraim Inbar
Publication Date:
02-2022
Content Type:
Working Paper
Institution:
Jerusalem Institute for Strategy and Security (JISS)
Abstract:
China could learn that US determination is melting away, and its threats can be ignored. An attack on Taiwan could follow.
Topic:
Military Strategy, Hegemony, Conflict, and Strategic Interests
Political Geography:
China, Taiwan, Asia, North America, and United States of America

55. Could Biden construct a new world order through détente with Russia?

Author:
Efraim Inbar
Publication Date:
01-2022
Content Type:
Working Paper
Institution:
Jerusalem Institute for Strategy and Security (JISS)
Abstract:
Such a scenario would give the US a leg up against China’s totalitarianism and expansionist aims, and bridge the age-old schism with Russia
Topic:
Diplomacy, Hegemony, Rivalry, and Strategic Interests
Political Geography:
Russia, China, Europe, Asia, North America, and United States of America

56. Japan’s Expanded Regional Security Role: The Challenge of China

Author:
Eyal Ben-Ari
Publication Date:
01-2022
Content Type:
Working Paper
Institution:
Jerusalem Institute for Strategy and Security (JISS)
Abstract:
Japan’s steady build-up of its substantial military power is based on a realistic view of meeting current security challenges, especially those presented by China.
Topic:
Security, Military Strategy, Conflict, and Strategic Interests
Political Geography:
Japan, China, and Asia

57. China's Course to Carbon Neutrality

Author:
Cory Combs
Publication Date:
09-2022
Content Type:
Working Paper
Institution:
Asia Society
Abstract:
China is in the midst of a wholesale economic transformation, driven by the central government’s pursuit of sustainability in all its forms: economic, social, and environmental. At the heart of this transformation sit Xi Jinping’s “dual carbon” targets: one to peak emissions before 2030, and the other to achieve carbon neutrality before 2060. However, such straightforward guiding targets belie the monumental complexity of unraveling and then rebuilding the fossil fuel–driven economy that enabled China’s rapid rise as a global economic power. The difficulties of moving China’s economy up the value chain – particularly from low-grade, emissions-intensive industrial manufacturing toward high value-add, green and low-carbon production – are compounded by the immense political frictions posed by entrenched interests and bureaucratic inertia. In this context, it is imperative for observers – particularly those keen on engaging with China during its grand green transformation experiment – to understand the many pieces, players, and problems involved. To this end, this report takes stock of China’s planning and reform efforts across the domains of climate, energy, and industrial upgrading since the 14th Five-Year Plan (2021–2025) was adopted. It then assesses the key drivers and constraints shaping these efforts, with the aim of elucidating the most likely path ahead – even as Beijing itself continues to map it out.
Topic:
Climate Change, Environment, Economy, Sustainability, and Carbon Emissions
Political Geography:
China and Asia

58. China’s 20th Party Congress Leadership Reshuffle: Stasis or Sweep?

Author:
Christopher K Johnson
Publication Date:
10-2022
Content Type:
Working Paper
Institution:
Asia Society
Abstract:
President and Chinese Communist Party (CCP) General Secretary Xi Jinping successfully thwarted another “Twitter coup” in late September 2022, making clear he will remain China’s top leader for at least the next five years. But there is much less certainty about who else will make up the new leadership team at the 20th Party Congress that will assist Xi in guiding the country through its most challenging period in decades. There are virtually no hard rules in CCP politicking limiting the range of possible outcomes, and even the “norms” that are often cited as governing the process of choosing a new leadership lineup are, at best, loose conventions rather than predictable practices. Xi’s extreme centralization of power also means that China’s already deeply opaque political system is even more so, and more than two and a half years of COVID isolation for China has made it much more challenging to glean authoritative insights. Nevertheless, one still gets a very clear sense that the personnel arrangements for the party congress are largely in hand, and that Xi Jinping is firmly in command and very comfortable with them. If we accept that as the baseline, it is possible to deduce the most likely scenarios for personnel turnover at the apex of CCP power and decision-making, the Politburo Standing Committee (PBSC). As with so many things in Xi Jinping’s unique political universe, it seems that the outcome will probably be one of two fairly binary, and perhaps nearly equally likely, possibilities. The first, a “stasis” scenario, would see very little change to the PBSC as Xi either strictly adheres to the convention, followed since 2002, that officials 68 or older must retire, or largely abides by it except for some PBSC incumbents, most probably Premier Li Keqiang, who may step down even though he is 67. In the second “sweep” scenario, Xi could adjust the age criteria downward or just outright ignore it, creating a lot more room for new entrants to the PBSC.
Topic:
Leadership, Domestic Politics, Political Parties, Xi Jinping, and Chinese Communist Party (CCP)
Political Geography:
China and Asia

59. China’s National ETS and the Power Market: How the ETS Can Achieve Significant Emission Reductions

Author:
Yan Qin, Alistair Ritchie, and Yi Chen
Publication Date:
10-2022
Content Type:
Working Paper
Institution:
Asia Society
Abstract:
China’s newly established national emissions trading system (ETS) is intended to serve as the primary tool in assisting China in meeting its "dual carbon" target of CO2 peaking before 2030 and carbon neutrality by 2060. It is the largest ETS globally, accounting for 40 percent of China's CO2 emissions and more than 10 percent of worldwide emissions, with the potential to double its current size once industrial sectors are added. In its initial phase, it covers the power sector, particularly more than 2,000 enterprises operating coal- and gas-fired power stations. However, some critical challenges need to be overcome before the ETS can fulfill its emissions reduction potential in the power sector by driving fuel switching away from coal and toward renewables and low-carbon fuels through the carbon price. China's National ETS and The Power Market: How the ETS Can Achieve Significant Emission Reductions examines these challenges in relation to both the ETS itself and its interactions with the power market. It also proposes a policy pathway to address these challenges and unlock their potential to drive significant and cost-effective CO2 emissions reductions in the power sector and raise large amounts of revenue to fund the transition to carbon neutrality across the expanding ETS sectors.
Topic:
Climate Change, Markets, Carbon Emissions, and Energy
Political Geography:
China and Asia

60. Assessing the groundwork: Surveying the impacts of climate change in China

Author:
Stephan Robin
Publication Date:
09-2022
Content Type:
Working Paper
Institution:
Australian Strategic Policy Institute (ASPI)
Abstract:
The immediate and unprecedented impacts of climate change are becoming increasingly apparent across China, as they are for many parts of the world. Since June 2022, China has been battered by record-breaking heatwaves, torrential downpours, flooding disasters, severe drought and intense forest fires. In isolation, each of those climate hazards is a reminder of the vulnerability of human systems to environmental changes, but together they are a stark reminder that climate change presents a real and existential threat to prosperity and well-being of billions of people. Sea-level rise will undermine access to freshwater for China’s coastal cities and increase the likelihood of flooding in China’s highly urbanised delta regions. Droughts are projected to become more frequent, more extreme and longer lasting, juxtaposed with growingly intense downpours that will inundate non-coastal regions. Wildfires are also projected to increase in frequency and severity, especially in eastern China. China’s rivers, which have historically been critical to the county’s economic and political development, will experience multiple, overlapping climate (and non-climate) impacts. In addition to these direct climate hazards, there will also be major disruptions to the various human systems that underpin China, such as China’s food and energy systems as are discussed in this report. These impacts deserve greater attention from policy analysts, particularly given that they’ll increasingly shape China’s economic, foreign and security policy choices in coming decades. This report is an initial attempt to survey the literature on the impact that climate change will have on China. It concludes that relatively little attention has been paid to this important topic. This is a worrying conclusion, given China’s key role in international climate-change debates, immense importance in the global economy and major geostrategic relevance. As the severity of climate change impacts continue to amplify over the coming decades, the significance of this gap will only grow more concerning.
Topic:
Security, Climate Change, National Security, and Geopolitics
Political Geography:
China and Asia-Pacific