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51. China’s grand industrial strategy and what it means for Europe

Author:
Frederico Mollet
Publication Date:
04-2021
Content Type:
Policy Brief
Institution:
European Policy Centre (EPC)
Abstract:
In its 14th Five-Year Plan, China has mapped out a grand economic and industrial strategy that upends many of the assumptions that underpin the EU's approach - how can the Union respond? With this new plan, the EU can expect tougher competition and greater protectionism in its economic relations with China. A further blurring of the public-private sector distinction in the country's economic model will make it harder to combat unfair Chinese competition. And while China is actively courting foreign investment, it is also signalling greater protectionism to products not made in China, which will lead to European investors' and exporters' interests diverging. To balance the scales, the EU should adapt its own strategy by: continuing to develop trade instruments to combat unfair competition at home and abroad; ensuring that these instruments and institutions can respond to unfair competition from private companies benefiting from state capital investment; ensuring that the extensive and often opaque government holdings in private firms are reflected in foreign direct investment and export controls; incorporating China's attempts to reconfigure supply chains into its own assessment of strategic dependencies, identifying areas that could become vulnerable; prioritising the improvement of access to the Chinese market for goods and services produced in Europe; developing alternative sources of growth, and boost demand and reduce barriers within the Single Market to offset greater Chinese protectionism; and ensuring that its industrial policy efforts will enable European industry to match China's developments. The present moment may mark a turning point in EU–China relations: in a little over three months, an agreement on an investment treaty was followed by sanctions and countersanctions. Geopolitical conflict ratchets up between China and the US. Beijing's new economic course will reshape its global relationships. China's protectionist turn and growing one-sided dependencies will threaten Europe's long-term strategic autonomy and undercut any attempts to construct a balanced approach to EU–China relations. If the EU's multi-track strategy is to work, a concerted effort is required to preserve economic parity and balance between the two powers.
Topic:
International Relations, Political Economy, European Union, Grand Strategy, Industry, and Supply Chains
Political Geography:
China, Europe, and Asia

52. Tangled Threats: Integrating U.S. Strategies toward China and North Korea

Author:
Jacob Stokes
Publication Date:
10-2021
Content Type:
Special Report
Institution:
Center for a New American Security (CNAS)
Abstract:
China and North Korea pose intertwined challenges for U.S. and allied policy. The Korean Peninsula constitutes just one area among many in U.S.-China relations. Meanwhile, issues on the peninsula remain central to the future stability and security of Northeast Asia and implicate many broader questions about regional and global order. Dealing with China and North Korea as an interlocking pair requires integrated policies that balance the risks and rewards of various possible approaches. This policy brief explains how to develop such policies and why they are the best option for the current regional landscape. North Korea plays several roles in China’s foreign policy. These include diverting geopolitical attention away from China, providing Beijing with an opportunity to cooperate with other states, creating a point of leverage for China to extract concessions on separate issues, and acting as a flashpoint with the potential for a regional war that directly affects China’s security. At any given time, some roles will be more pronounced than others, but each of them is always present to some degree. Any integrated U.S. strategy toward the pair will have to account for a volatile geopolitical landscape in Northeast Asia. Major trends include closer ties between Beijing and Pyongyang, deteriorating U.S.-China relations, and South Korea’s desire, especially under the government of President Moon Jae-in, to engage North Korea while balancing ties with China and the United States. The United States should employ a strategy toward China and North Korea that blends calibrated pressure and results-oriented engagement. The goal of this strategy should be problem-management rather than problem-solving. Washington should implement this approach across four areas: shaping U.S.-China relations regarding the Korean Peninsula; engaging North Korea on political and security issues; promoting stable deterrence in the region; and coordinating a shared inter-Korean and foreign policy with South Korea. Key recommendations for the United States include acknowledging that major breakthroughs are unlikely with either China or North Korea; proposing four-party nuclear and peace talks with South Korea, North Korea, China, and the United States; and standing up a Nuclear Planning Group that includes Washington, Seoul, and Tokyo to bolster deterrence and stem nuclear proliferation pressures.
Topic:
Conflict Prevention, International Relations, Foreign Policy, and Geopolitics
Political Geography:
China, Asia, North Korea, and United States of America

53. Partners, Competitors, or a Little of Both? Russia and China in the Arctic

Author:
Jim Townsend and Andrea Kendall-Taylor
Publication Date:
03-2021
Content Type:
Special Report
Institution:
Center for a New American Security (CNAS)
Abstract:
The Arctic’s melting icecaps are changing more than the geography of the region. The diminishing sea ice and declining snow cover have allowed for new shipping lanes and growing access to natural resources, increasing geopolitical competition in the region. A defining feature of this competition is the growing interest and activity of Russia and China in the Arctic. Not only have the two countries increased their presence in the region, but coordination between them is growing. Political observers in Washington and beyond understand well the challenges that Russia and China each pose to the United States. But little thought has been given to how their interests and actions will combine and the challenges that such alignment will pose for the United States and its allies and partners. Previous CNAS research has highlighted the risks that greater Russia-China cooperation creates. This research argues that the growing partnership between Moscow and Beijing is amplifying the challenges that both actors pose. In the Arctic, Russia and China’s interests are converging around resource extraction projects, the expansion of the Northern Sea Route, and the enhancement of operational awareness and security cooperation. The increasing synergy in the Arctic will be most consequential for the United States on two fronts: First, Beijing is working with Moscow to improve its military capabilities. Second, Russia is increasing its economic reliance on China in the Arctic in ways that may raise Moscow’s willingness to back Beijing’s priorities in other regions and on other issues to avoid jeopardizing its economic ties with Beijing. Increasing military cooperation: Through joint research and, to a lesser extent, its joint military exercises with Russia, China is enhancing its military knowledge of and insight into the Arctic. Though China’s actual military presence in the Arctic is minimal, the two countries’ cooperation is enhancing Chinese insight into Russian dual-use technology, which Beijing can use to build its military capabilities. China can learn from Russia’s dual-use and hybrid capability development in the Arctic, accelerating its efforts to erode U.S. military advantages and posing a greater threat in the event of military conflict. Russia and China may also strengthen their military relationship in the Arctic in the future, including expanding the scope of their joint exercises in the region. Ultimately, sustained or deepening Russia-China military cooperation may threaten America’s ability to deter Chinese and Russian aggression in the region.
Topic:
International Relations, Natural Resources, Geopolitics, and Strategic Competition
Political Geography:
Russia, China, Eurasia, Asia, and Arctic

54. Is America Really Back?

Author:
Thomas Fingar
Publication Date:
11-2021
Content Type:
Commentary and Analysis
Institution:
Walter H. Shorenstein Asia-Pacific Research Center
Abstract:
Following the 2021 Taihe Civilizations Forum, the Taihe International Communications Center hosted an online discussion on October 8 that captures the candid and profound reflections of senior officials whose actions have shaped the course of ties between China and the United States. Dr. Thomas Fingar, Shorenstein APARC Fellow in the Freeman Spogli Institute for International Studies at Stanford University, former Chairman of the National Intelligence Council, and former Assistant Secretary of State, and Senior Colonel Zhou Bo (ret.), Senior Fellow at Center for International Security and Strategy at Tsinghua University, China Forum Expert, and former Director of Center for Security Cooperation of the Office for International Military Cooperation of Ministry of National Defense, were invited to join this dialogue. During their conversation, Dr. Fingar and Senior Colonel Zhou exchanged ideas on important topics such as the current state of China-U.S. relations, the future development of the two countries' bilateral ties, the rationale behind the US foreign policy and the American alliance system, as well as the "extreme competition" that China and the U.S. are trapped in.
Topic:
International Relations, Diplomacy, Hegemony, Conflict, Rivalry, and Strategic Interests
Political Geography:
China, Asia, North America, and United States of America

55. Hedging by Default: The Limits of EU “Strategic Autonomy” in a Binary World Order

Author:
Richard Higgott and Simon Reich
Publication Date:
02-2021
Content Type:
Special Report
Institution:
LSE IDEAS
Abstract:
For some time, international relations has trended in the direction of an American and Chinese dominated binary world order. While the Trump administration has been an accelerator not a cause of this trend between 2016 and 2020, not coincidentally the post 2016 era has also seen key EU figures move to develop a strategy of greater "strategic autonomy". This interest in strategic autonomy was, in no small part, a reflection of growing European distrust in the reliability of both China and, increasingly, the USA. The paper shows, in contrast to the Cold War era during which the EU was unambiguously aligned, how the EU now appears to have embarked on a hedging strategy, albeit implemented more by default than design. In its desire to defend its core interests the EU appears to lean to one side or the other on an issue by issue basis in at least seven key policy domains identified in the paper. This approach is seen to be the outcome of its dual desire to articulate the values of its much touted “Geopolitical Commission" at the same time as it tries to continue its traditional institutional commitment to multilateralism. The paper concludes that the ambiguity present in this endeavour to straddle the realist-liberal fence only serves to expose the limitations of the strategy.
Topic:
International Relations, European Union, Geopolitics, and Strategic Autonomy
Political Geography:
China, Europe, Asia, and United States of America

56. FOCAC at 21: Future Trajectories of China-Africa Relations

Author:
Chris Alden, Stephen Paduano, Mzukisi Qobo, Lukas Fiala, Iginio Gagliardone, Yu-Shan Wu, Gidon Gautel, and Lina Benabdallah
Publication Date:
10-2021
Content Type:
Special Report
Institution:
LSE IDEAS
Abstract:
The China-Africa relationship has continued to evolve over the last years. In light of the 8th Forum on China-Africa Cooperation (FOCAC) that will take place later in 2021, the latest report from LSE IDEAS China Foresight brings together an international team of experts to shed light on emerging and consolidated areas of engagement between China and Africa that will likely shape the relationship in the years to come.
Topic:
International Relations, Foreign Policy, Diplomacy, International Cooperation, and Engagement
Political Geography:
Africa and China

57. Shaping the Indo-Pacific? Japan and Europeanisation

Author:
Yee-Kuang Heng
Publication Date:
11-2021
Content Type:
Working Paper
Institution:
LSE IDEAS
Abstract:
In this Strategic Update, Professor Yee-Kuang Heng investigates European power projection and presence in the Indo-Pacific, and its converging nature with Japan’s attempt to shape the regional environment in its favour. While UK threat perceptions have converged significantly with Japan’s since former Prime Minister David Cameron’s promulgation of a “golden era” in relations with China, managing expectations of Japan’s attempt to ‘shape’ and encourage Europeanisation remains crucial. But is it fair to conclude that Japan has been successful in encouraging a stronger European presence to help it shape the Indo-Pacific order?
Topic:
International Relations, Foreign Policy, Europeanization, and Strategic Competition
Political Geography:
Japan, China, United Kingdom, Europe, and Indo-Pacific

58. Strategic Foresight in Chin: The other missing dimension

Author:
Paul Charon
Publication Date:
03-2021
Content Type:
Policy Brief
Institution:
European Union Institute for Security Studies
Abstract:
Over the last few decades, analysis of international relations and strategic issues has developed rapidly in China, both within the Chinese Communist Party– state apparatus and in think tanks and universities. However, the richness of this field of study is in stark contrast to the absence of any real open reflection on the question of foresight. If, like other nations, China is committed to understanding the world in which it is evolving and to identifying possible changes, the function of foresight has not been conceptualised or institutionalised to the same degree as in the West. Foresight analysis in China is marked by several salient features: firstly, it remains almost non-existent in Chinese institutional frameworks dedicated to the analysis of international relations; secondly, the concepts of the ‘black swan’ and the ‘grey rhino’ have made a significant breakthrough, particularly in economics, before being cannibalised and politicised by the Party; and thirdly, the reading of the horizon remains essentially informed by the Party’s vision, fears and obsessions.
Topic:
International Relations, Political Parties, Domestic Policy, and Strategic Interests
Political Geography:
China and Asia

59. North Korea’s Energy Crisis: What Are the Problems?

Author:
Kyung-sool Kim
Publication Date:
10-2021
Content Type:
Commentary and Analysis
Institution:
East Asia Institute (EAI)
Abstract:
North Korean businesses run by state-supplied energy have not been properly operated due to a sharp decrease in energy supply. Long-standing energy shortages have paralyzed the state energy supply and demand system, causing further disruptions in statewide functions. In this commentary, Kyung-sool Kim, Honorary Senior Research Fellow at the Korea Energy Economics Institute, states that this resulted from a complex accumulation of various problems: the characteristics of the regime, national capacity, state monopoly of production factors, the lack of a market, limitations of policy functions, the absence of capital and technology, and international isolation. The author argues that radical changes such as systemic reform and market opening are necessary to resolve these issues. The author adds that North Korea should be free from international isolation and propagate change in order to utilize external support.
Topic:
International Relations, Energy Crisis, and Energy
Political Geography:
China, Asia, and North Korea

60. The China Challenge Prompts Recovery of a Strained ROK-Japan Relations: Analyzing ROK-Japan Relations Through the 9th Joint Korea-Japan Public Opinion Survey

Author:
Yul Sohn
Publication Date:
11-2021
Content Type:
Commentary and Analysis
Institution:
East Asia Institute (EAI)
Abstract:
Korea-Japan relations have been strained for the past 3 years as the feelings of fatigue between the two citizens has been steadily increasing due to the Korean Supreme Court’s ruling on the forced wartime labor in October 2018. Bilateral cooperation to reorganize the world order after COVID-19 also remains bleak. The East Asia Institue (EAI, President Yul Sohn) and Genron NPO (President Yasushi Kudo) conducted the “9th Joint Korea-Japan Public Opinion Poll.” Based on the results of the survey, this issue briefing examines the differences in public opinion between the two countries on security and economic cooperation. This briefing also analyzes the Korean public’s call to improve ROK-Japan relations and increase cooperation. President Sohn argues that ROK-Japan relations should be re-examined under the intensified U.S.-China strategic competition and the possible post-pandemic global risks. He also states that Japan should abandon its one-track approach and understand the Korean’s preference for “future-oriented” cooperation. Additionally, the next Korean administration should respond to public opinion and strive towards the reconstruction of ROK-Japan relations.
Topic:
International Relations, Regional Cooperation, Public Opinion, and Strategic Competition
Political Geography:
Japan, China, Asia, South Korea, and United States of America