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2. Competition Versus Exclusion in U.S.–China Relations: A Choice Between Stability and Conflict
- Author:
- Jake Werner
- Publication Date:
- 09-2023
- Content Type:
- Policy Brief
- Institution:
- Quincy Institute for Responsible Statecraft
- Abstract:
- The Biden administration’s China policy is pulling in two different directions, but the tension is not widely recognized because every antagonistic measure aimed at China is filed under the heading of competition. As a result, Washington’s debate on China loses the crucial distinction between “competition” — a kind of connection with the potential to be carried on in healthy ways — and “exclusion,” an attempt to sever connection that necessarily leads to conflict if the domain is significant. Biden’s exclusion policies focus on cutting China out of the principal growth sectors in the global economy and the most lucrative and strategically important markets. Administration officials think their approach is sensible and moderate compared to more extreme voices in Washington calling for exclusion in all realms. Even so, the Biden approach is highly destabilizing because both countries consider the targeted areas vital to the future of global authority and economic prosperity, and because the attempt to trap China in a position of permanent subordination represents a serious threat to the legitimacy of China’s leaders. Healthy competition requires a shared stake in the future. In earlier periods, despite sharp tensions and mutual suspicions suffusing the relationship, U.S.–China ties were stabilized first by the joint project of containing Soviet power and then by a shared commitment to market–led globalization. Now that leaders on both sides are disenchanted with key facets of globalization, the two countries are caught in an escalatory cycle of exclusion and retaliation that risks hardening zero–sum pressures in the global system into a permanent structure of hostility. In such a scenario, each country would organize its own society and international partners to undermine the other, dramatically increasing the likelihood of violent conflict. The warning signs are already clear on both sides, as each increasingly interprets every action on the other side as part of a conspiracy to achieve domination. Notwithstanding widespread complacency about the risks of conflict after a tentative diplomatic opening in recent months, the rise of securitized thinking in both countries is steadily building institutional and ideological momentum for confrontation that can only be broken by a new and inclusive direction for the relationship.
- Topic:
- Foreign Policy, Diplomacy, Bilateral Relations, Political stability, Conflict, Strategic Competition, and Competition
- Political Geography:
- China, Asia, North America, and United States of America
3. Common Good Diplomacy: A Framework for Stable U.S.–China Relations
- Author:
- Jake Werner
- Publication Date:
- 09-2023
- Content Type:
- Policy Brief
- Institution:
- Quincy Institute for Responsible Statecraft
- Abstract:
- One curious feature of the emerging U.S.–China conflict is that each side claims to be defending the existing international order against the threat the other poses to it. Hidden beneath this seemingly irreconcilable dispute is a crucial truth: both the United States and China are status quo powers, sharing a deep interest in a stable global security environment and an open global economy. At the same time, both countries are pursuing urgently needed reforms to a global system increasingly defined by zero–sum pressures. Yet both are prone to exclusionary impulses that threaten to ruin the possibility of a shared reform agenda and instead throw the world into conflict. Working with China to revitalize the international order would not only prevent such a conflict, it would also establish the conditions for healthy forms of both competition and cooperation in the U.S.–China relationship. But how can U.S. leaders pursue such a project without simply giving a pass to China’s sometimes undesirable behavior? The focus should be diplomacy to frame an inclusive global system, focusing on actions that would reduce zero–sum constraints. In the three key realms of global authority and security, the global economy, and climate change, China is currently engaged in counterproductive moves that exacerbate existing tensions but is also pursuing promising reforms that could expand the scope for positive–sum outcomes. Rather than seeking to counter every Chinese initiative, U.S. leaders should carefully distinguish between beneficial and damaging outcomes, affirming and building on China’s constructive proposals and managing differences through negotiation rather than polemics and confrontation. Some potentially fruitful areas for cooperation include joint action to limit climate change, development in the Global South, revising the global guidelines for economic statecraft, and reforming international institutions to create a more open and inclusive world order. Pursuing cooperative efforts in such areas would both create direct benefits and improve U.S. credibility as a responsible leader of the world order rather than simply a rival of China. It would also open space to pursue competition within a rules–based order rather than risk a slide into destructive zero–sum conflict.
- Topic:
- Foreign Policy, Diplomacy, Bilateral Relations, Political stability, and International Order
- Political Geography:
- China, Asia, North America, and United States of America
4. Southeast Asia Is the Soft Underbelly of American Power in the Indo-Pacific
- Author:
- John Lee
- Publication Date:
- 01-2023
- Content Type:
- Policy Brief
- Institution:
- Hudson Institute
- Abstract:
- Southeast Asia is not just the swing sub-region in the Indo-Pacific but also the soft underbelly of the region—the area most susceptible to Chinese coercion, influence, and expansion. Except for Vietnam, Southeast Asian states have strong fence-sitting tendencies and are reluctant to properly balance and counter Beijing due to their proximity to China, smaller size, limited capabilities, and economic integration with and reliance on China. They are also constantly fearful that the US and its allies will abandon and leave them to fend for themselves against a hostile China. This means that while one can identify pockets of creative and proactive thinking in this sub-region, the prevailing inclinations of the region’s countries are to never back a side before the result is obvious, do the minimum when it comes to burden sharing, and receive maximum economic and security benefits for minimum risk, price, and commitment. In short, they are often inclined toward free riding. It is easy for the US and its allies to become frustrated with Southeast Asian states that give the impression they are seeking various forms of “strategic welfare.” The more constructive approach is to understand their domestic and external vulnerabilities and work within these.
- Topic:
- Foreign Policy, International Cooperation, Strategic Competition, ASEAN, and Regional Security
- Political Geography:
- China, Southeast Asia, United States of America, and Indo-Pacific
5. The “Odious” Legacy of Chinese Development Assistance in Africa: The Case of Angola
- Author:
- Rafael Marques de Morais and Thomas J. Duesterberg
- Publication Date:
- 02-2023
- Content Type:
- Policy Brief
- Institution:
- Hudson Institute
- Abstract:
- Within days of taking office, China’s new foreign minister, Qin Gang, was on a plane to his country’s main African client: Angola. Landing in Luanda on January 12, Qin Gang was ostensibly bringing a gift—a $250 million loan to help Angola expand high-speed broadband. Some gifts, however, are not what they seem, and some of the recent financial gifts from Chinese sources have been toxic. Soon after Qin visited Angola, US Treasury Secretary Janet Yellen traveled to three African countries but skipped Angola, possibly because of its checkered history with Chinese development assistance. The case of Angola raises questions about the extent and nature of Chinese loans and infrastructure aid to a growing number of African nations, as well as the consequences of such loans on those countries’ relations with the US.
- Topic:
- Foreign Policy, Economics, Infrastructure, Trade, Development Assistance, and Loans
- Political Geography:
- Africa, China, Angola, and United States of America
6. Xi Jinping’s Vision for the Middle East
- Author:
- Yair Albeck
- Publication Date:
- 07-2023
- Content Type:
- Policy Brief
- Institution:
- Hudson Institute
- Abstract:
- Chinese leader Xi Jinping clearly aspires to establish a new global economic order centered around Beijing, not Washington. However, a new global economic order cannot be built in a day. The immensity of this challenge has forced Xi to set his sights on a set of interim goals. These include cementing the Communist Party’s control of the Chinese economy and shielding supply chains, capital flows, and strategic bilateral and multilateral relationships from hostile American policies. These goals equate to the creation of a Sinocentric global economic subsystem. This would be partially integrated into the current Western-led system but would be sufficiently decoupled from the West to protect the pillars of the Chinese Communist Party’s political economy. In Beijing’s grand design, the Middle East plays an indispensable role. But Western analysts have often misjudged China’s interests in the region as purely commercial. While Xi values the region for its economic potential, he sees it as one of the most important arenas of competition with the United States. Yet when United States National Security Advisor Jake Sullivan recently discussed American leadership of the global economy, he focused on Europe and the Indo-Pacific and mentioned Africa and Latin America. He did not mention the Middle East once.1 Washington’s persistent blind spot in the Middle East has obscured its view of Beijing’s global ambitions. If the US does not rectify this mistake, it risks losing more influence in the region and aiding China’s effort to supplant the US atop the global economic order.
- Topic:
- Foreign Policy, National Security, Political Economy, Foreign Direct Investment, and Xi Jinping
- Political Geography:
- China and Middle East
7. Eritrea’s Growing Ties with China and Russia Highlight America’s Inadequate Approach in East Africa
- Author:
- Joshua Meservey
- Publication Date:
- 07-2023
- Content Type:
- Policy Brief
- Institution:
- Hudson Institute
- Abstract:
- China and Russia have recently increased their engagement with Eritrea, a small but strategically located country in East Africa. Meanwhile, American influence in the region is amid a yearslong slide. Despite the obvious risks, the United States has failed to muster a committed response and has even taken some counterproductive measures that demonstrate a lack of strategic thinking. If these trends continue, a vital region may fall under the conclusive influence of Washington’s primary geopolitical competitors.
- Topic:
- Security, Foreign Policy, Bilateral Relations, Geopolitics, and Strategic Planning
- Political Geography:
- Africa, Russia, China, Eritrea, and United States of America
8. Keeping America close, Russia down, and China far away: How Europeans navigate a competitive world
- Author:
- Jana Puglierin and Pawel Zerka
- Publication Date:
- 06-2023
- Content Type:
- Policy Brief
- Institution:
- European Council on Foreign Relations (ECFR)
- Abstract:
- Russia’s war on Ukraine has shown European citizens that they live in a world of non-cooperation. But their cooperative foreign policy instincts are only slowly adapting to this new reality. Europeans want to remain neutral in a potential US-China conflict and are reluctant to de-risk from China – even if they recognise the dangers of its economic presence in Europe. However, if China decided to deliver weapons to Russia, that would be a red line for much of the European public. Europeans remain united on their current approach to Russia – though they disagree about Europe’s future Russia policy. They have embraced Europe’s closer relationship with the US, but they want to rely less on American security guarantees. European leaders have an opportunity to build public consensus around Europe’s approach to China, the US, and Russia. But they need to understand what motivates the public and communicate clearly about the future.
- Topic:
- Security, Foreign Policy, and Strategic Competition
- Political Geography:
- Russia, China, Europe, and United States of America
9. Chinese companies in Arctic mining are gaming the master plan
- Author:
- Patrik Andersson, Per Kalvig, and Urik Pram Gad
- Publication Date:
- 05-2022
- Content Type:
- Policy Brief
- Institution:
- Danish Institute for International Studies (DIIS)
- Abstract:
- Looking for Chinese state ownership in Arctic extractive projects misses the point, and politically framed rhetoric from Chinese companies may be misleading. Some Western companies downplay their Chinese relations, but Western companies are often reliant on Chinese partners. In Western media, Chinese companies are sometimes discussed as being parts of a well-oiled state machine. They are not, but neither are they left to fight on their own without any support or guidance. Rather, they follow their own business priorities while eagerly seizing opportunities provided through supportive state policy. Interaction and integration with the state varies between different types of companies. The Chinese Communist Party (CCP) has a complex set of levers which make it possible to secure specific strategic investments. The likelihood of state intervention varies depending on the commodity involved as well as geopolitical factors. However, the preferred mode of governance is to issue general policies that encourage companies to contribute to state objectives.
- Topic:
- Foreign Policy, Business, Global Political Economy, and Mining
- Political Geography:
- China, Asia, and Arctic
10. China's New Trade Strategy amid US-China Confrontation and Implications
- Author:
- Sang Baek Hyun, Wonho Yeon, Suyeob Na, Young Sun Kim, and Yunmi Oh
- Publication Date:
- 03-2022
- Content Type:
- Policy Brief
- Institution:
- Korea Institute for International Economic Policy (KIEP)
- Abstract:
- In 2021, China has reached the point of entering a new stage of socialist development by declaring the achievement of the goal of building ‘a comprehensive well-off society’. Since the reform and opening up of China, the paradigm of economic and social development is facing the greatest turning point from ‘getting rich first’ to ‘common prosperity’. As the US checks on China intensify during this period of economic transition in China, China is pursuing a new trade strategy to respond to it. In order to understand the changes in the global trade environment in the era of the US-China conflict, it is necessary to understand both the US checks with China and China's trade strategy to respond to them. Most of the recent US-China conflicts are analyzed from the perspective of the US checking in with China, but it is necessary to take a balanced look at what kind of countermeasures China is seeking in order to correctly forecast and prepare for changes in the global trade environment in the future.
- Topic:
- Foreign Policy, Global Markets, Trade, and Economic Development
- Political Geography:
- China, Asia, North America, and United States of America
11. Ending the Destructive Sino-U.S. Interaction Over Taiwan: A Call for Mutual Reassurance
- Author:
- Michael D. Swaine
- Publication Date:
- 10-2022
- Content Type:
- Policy Brief
- Institution:
- Quincy Institute for Responsible Statecraft
- Abstract:
- Recent years have witnessed steadily rising hostility and suspicion between the United States and China over each other’s approach vis-à-vis Taiwan. The unprecedentedly aggressive Chinese military exercises in response to U.S. House Speaker Nancy Pelosi’s trip to Taipei this year indicated that the continued downward spiral in Sino-American relations over Taiwan would increasingly expose Washington and Beijing to risks of repeated crises with a potential of a dangerous armed conflict. This brief lays out the policy steps necessary to reverse this spiral of escalation.
- Topic:
- Foreign Policy, Diplomacy, Bilateral Relations, Crisis Management, and Strategic Interests
- Political Geography:
- China, Taiwan, Asia, and United States of America
12. The Worsening Taiwan Imbroglio: An Urgent Need for Effective Crisis Management
- Author:
- Michael D. Swaine
- Publication Date:
- 11-2022
- Content Type:
- Policy Brief
- Institution:
- Quincy Institute for Responsible Statecraft
- Abstract:
- A severe diplomatic or military crisis over Taiwan is the issue that poses the greatest risk of war between the United States and China. Worryingly, the risk has increased in recent years with the deepening Sino-American rivalry amid intensifying conflicts of interest vis–à–vis Taiwan. Washington and Beijing must recognize the cycle of confrontational deterrence that drives it and take urgent measures to stop it. If the United States and China fail to take measures of mutual reassurance, the two countries will continue on the path to confrontation over Taiwan. This is particularly likely if their overall bilateral relationship continues to deteriorate. While acknowledging the likelihood of such a dangerous scenario, this brief affirms the need to improve crisis management on the Taiwan issue, outlines the major problems and limits of existing crisis management efforts, and offers concrete recommendations for improving the ability of both Washington and Beijing to more effectively manage future crises over Taiwan, as well as Sino-American crises in general.1
- Topic:
- Conflict Prevention, Foreign Policy, Diplomacy, and Crisis Management
- Political Geography:
- China, Taiwan, Asia, and United States of America
13. A Restraint Recipe for America’s Asian Alliances and Security Partnerships
- Author:
- Michael D. Swaine and Sarang Shidore
- Publication Date:
- 12-2022
- Content Type:
- Policy Brief
- Institution:
- Quincy Institute for Responsible Statecraft
- Abstract:
- As Sino–American relations deteriorate, risks of conflict between Washington and Beijing are growing. A major war would be terrible for both the United States and the region while setting back critical goals, like the fight to stop climate change. Avoiding a war while safeguarding vital U.S. interests ought to be a priority. But while many in the United States want to strengthen alliance structures as a means of deterring China and to make Taiwan a de facto security ally, those who espouse a strategy of Restraint believe this approach endangers Americans and undermines their prosperity. A policy of Restraint is predicated on the view that alliances are not ends in themselves, but a means of bolstering U.S. security. This brief analyzes the utility of America’s Asian alliances and security partnerships from a Restraint perspective under two scenarios. The first and preferred scenario is that of the United States and China walking back from their current march toward confrontation to achieve a stable, if still significantly competitive, relationship. The second and more likely scenario is a much sharper and sustained rivalry with China becoming a regionally strong, possibly in many ways dominant, power.
- Topic:
- Security, Foreign Policy, Partnerships, and Alliance
- Political Geography:
- China, Taiwan, East Asia, Asia, and United States of America
14. How to Engage and Prevail in Political Warfare against China
- Author:
- John Lee
- Publication Date:
- 11-2022
- Content Type:
- Policy Brief
- Institution:
- Hudson Institute
- Abstract:
- In his report to the Twentieth National Congress of the Communist Party in October, Xi Jinping praised the progress made over the past decade under his leadership to advance the great rejuvenation of the Chinese nation domestically and internationally. According to Xi, this is taking place in an era of “momentous changes of a like not seen in a century [and which] are accelerating across the world.”1 For Xi, these “great changes” comprise “a significant shift [that] is taking place in the international balance of power, presenting China with new strategic opportunities in pursuing development.”2 A pillar of Xi’s plan to realize the rejuvenation of China and to emerge as the preeminent nation in the region and beyond is to shrink the strategic, military, economic, political, and normative ground in the region on which the United States can sustain, build, and demonstrate its power and influence. This is because China knows there is no material or nonmaterial counterbalance without the US. Additionally, the more China can weaken the resolve of US allies and other countries to support American-led initiatives to counter China and the credibility of the US-led alliance system, the smaller and weaker the ground for Washington to maintain its footholds in distant lands becomes, and the closer China draws to its goal of preeminence. The Chinese plan relies on building unmatched “comprehensive national power,” or CNP, which China can use to seduce, compel, or coerce other nations.3 CNP has material and nonmaterial elements. Regarding the latter, Beijing places enormous emphasis on political warfare in the form of information and influence operations. The first three memos in this series on Chinese political warfare argue that the Chinese Communist Party (CCP) makes no distinction between wartime and peacetime and believes it is engaged in a perpetual “struggle” against the West.4 Regarding political warfare, the previous memos noted that the People’s Liberation Army (PLA) plays a central and often dominant role in leading doctrine and operations when it comes to informational and influence warfare.
- Topic:
- Foreign Policy, Defense Policy, and Chinese Communist Party (CCP)
- Political Geography:
- China and Asia
15. In support of a new approach with the Western Balkans: Staged accession with a Pierre MIREL consolidation phase
- Author:
- Pierre Mirel
- Publication Date:
- 05-2022
- Content Type:
- Policy Brief
- Institution:
- Robert Schuman Foundation (RSF)
- Abstract:
- In his “Strasbourg Speech” to the European Parliament on 9 May 2022, French President Emmanuel Macron put forward the idea of a European Political Community, to organise Europe from a broader political perspective than the European Union. He was targeting the membership applications of Ukraine, Moldova and Georgia. He nonetheless created a stir in the Western Balkans, even though he made it clear in his press conference that "for the Balkans, the path is already mapped out", by which he meant membership. This concern is understandable given the European perspective they were offered twenty years ago at the European Council of Thessaloniki on 21 June 2003, and that many voices are now being raised in favour of granting the new candidates to the East this formal membership status, or even of opening negotiations already. The European Council of 23-24 June will be important for two reasons: what is the European future of the three new candidates? Will Bulgaria lift its veto on the opening of accession negotiations with Albania and Northern Macedonia? Maintaining it would further weaken the credibility of the European Union at a time when China and Russia are making their ambitions clear.
- Topic:
- Foreign Policy, European Union, Regional Integration, and European Council
- Political Geography:
- China, Eastern Europe, and Balkans
16. Where is China heading?
- Author:
- Jean-Pierre Cabestan
- Publication Date:
- 10-2022
- Content Type:
- Policy Brief
- Institution:
- Robert Schuman Foundation (RSF)
- Abstract:
- China is ambitious, it is making this known and everyone is beginning to realise it. So much so that today a growing number of observers fear that it will take greater risks to achieve its objectives and fall into the famous "Thucydides' trap"; in short, that it will launch into a war, notably around Taiwan, which would inevitably involve the United States. Isn't its goal to supplant America and become the world's leading power? If, by 2028 or 2030, the Chinese economy were to exceed the US economy in terms of GDP, it is doubtful that it will succeed in removing the US from its pedestal. This is likely to be lower and more contested. But rather than a power transition, the world is witnessing the emergence of new, permanently asymmetrical bipolarity and, no doubt, a new Cold War[1].
- Topic:
- Foreign Policy, Geopolitics, Economy, and Multipolarity
- Political Geography:
- China and Asia
17. Australia’s Strategic Responses to the US-China Rivalry and Implications to Korea
- Author:
- Ina Choi, Sunhyung Lee, Jaeho Lee, and So Eun Kim
- Publication Date:
- 08-2022
- Content Type:
- Policy Brief
- Institution:
- Korea Institute for International Economic Policy (KIEP)
- Abstract:
- As in other Asia-Pacific countries, boosting trade with China has provided a growth engine for Australia's economy. Australia shared concerns over security threats posed by China’s military expansion, but up until the mid-2010s hard balancing against China did not seem to be an option for Australia. Australia’s recent moves against China, however, signal that Canberra has reset its China policy, with an overhaul of its national security and defense strategy. The shift of Australia’s China policy is an interesting case to explore how the regional order is likely to evolve in the growing US-China competition. Assessing Australia’s recent foreign policy is also relevant to Korea, both in terms of navigating Korea’s relations with the US and China and enhancing strategic ties between Australia and Korea. Against this backdrop, this study unravels Australia’s strategic responses to the changing regional order and draw implications for Korea's foreign policy.
- Topic:
- Security, Foreign Policy, National Security, Economy, Trade, and Rivalry
- Political Geography:
- China, South Korea, Australia, Asia-Pacific, and United States of America
18. The United Arab Emirates and Sino-American Competition: Towards a Policy of Non-Alignment?
- Author:
- Jean-loup Samaan
- Publication Date:
- 12-2022
- Content Type:
- Policy Brief
- Institution:
- Institut français des relations internationales (IFRI)
- Abstract:
- In just under five years, the United Arab Emirates (UAE) has accelerated its rapprochement with Xi Jinping’s China, to the point of becoming the first Gulf country to find itself at the heart of the rivalry between Beijing and Washington. Although benefiting from a large US military presence, the UAE has made its partnership with the Chinese regime a new priority that goes beyond energy and trade. Over the past five years, the United Arab Emirates (UAE) has used its economic and strategic rapprochement with China as a tool to diversify its foreign policy. If this Chinese policy of the UAE - which has traditionally been Washington's partner in the region - mirrors the erosion of American influence in the Gulf, the sustainability of Abu Dhabi's strategy should be questioned. Despite its aspirations for strategic autonomy, the UAE remains heavily dependent on US security guarantees, meaning that tensions between Washington and Abu Dhabi over its growing partnership with Beijing in sensitive areas (5G network, defence cooperation) could undermine its security foundations. While the energy crisis ensuing from the war in Ukraine allows the Gulf oil-producing countries to be in a powerful position vis-à-vis Western consumers, Abu Dhabi now seems determined to maintain its balancing act between Washington and Beijing.
- Topic:
- Foreign Policy, Diplomacy, Geopolitics, and Strategic Competition
- Political Geography:
- China, United Arab Emirates, United States of America, and Gulf Nations
19. China between lockdowns and the 20th Party Congress: What can we expect for the EU and globally?
- Author:
- Jan Hoogmartens
- Publication Date:
- 10-2022
- Content Type:
- Policy Brief
- Institution:
- EGMONT - The Royal Institute for International Relations
- Abstract:
- Whether it is aggressive industrial subsidies, the militarization of the South China Sea, human rights violations in Xinjiang or political suppression in Hong Kong, there is a whole litany of foreign policy concerns which are attributed by media and China watchers to the People’s Republic of China. This policy brief will try to make some sense out of these worries by focusing on how current events might shape the outcome of the 20th Party Congress. It will start by assessing China’s track record and examining some of its main policy drivers. Consequently, it will explore what it means for the EU and its companies doing business with China, focusing on supply chains and strategic autonomy. Finally, the policy brief will come to the question whether we do not focus too much on the great power competition between the US and China.
- Topic:
- Foreign Policy, Hegemony, Leadership, Power, and Competition
- Political Geography:
- China and Asia
20. The Sino-Lithuanian Crisis: Going beyond the Taiwanese Representative Office Issue
- Author:
- Konstantinas Andrijauskas
- Publication Date:
- 03-2022
- Content Type:
- Policy Brief
- Institution:
- Institut français des relations internationales (IFRI)
- Abstract:
- The year 2021 marked the 30th anniversary of the establishment of diplomatic relations between China and Lithuania. Instead of commemorative events and customary lofty rhetoric, the bilateral relationship rapidly plunged to a level rarely seen in either country’s foreign policies since the end of the Cold War. Sino-Lithuanian relations remain de facto downgraded to the level of chargé d’affaires, Lithuania’s physical embassy in Beijing is empty, while the southernmost Baltic state continues to withstand China’s multidimensional campaign of diplomatic, discursive and, most importantly, economic pressure. The principal cause behind this diplomatic crisis was the opening of the Taiwanese Representative Office in the Lithuanian capital of Vilnius in mid-November 2021. This Briefing will argue, however, that there were other important reasons behind the current state of affairs that had been accumulating over the course of two years. The opening of the Taiwanese Representative Office in the Lithuanian capital of Vilnius in mid-November 2021 triggered an unprecedented diplomatic crisis between the People’s Republic of China and Lithuania. China resorted to massive economic coercion measures to pressure Vilnius, such as the freezing of bilateral trade. European multinational companies also reported that Beijing blocked their exports because of Lithuanian components in their products. In late January 2022, the European Union (EU) launched a case at the World Trade Organization against China over discriminatory trade practices against Lithuania. The current crisis must be understood in the broader context of the degradation of the relations between China and Lithuania, but also the EU, since 2019. As such, this crisis is symptomatic of the developing trend in the relationship between the EU and China.
- Topic:
- Foreign Policy, Diplomacy, Bilateral Relations, European Union, and WTO
- Political Geography:
- China, Europe, Taiwan, Asia, and Lithuania
21. What do we know about cyber operations during militarized crises?
- Author:
- Michael Fischerkeller
- Publication Date:
- 01-2022
- Content Type:
- Policy Brief
- Institution:
- Atlantic Council
- Abstract:
- The Department of Defense (DoD) will soon kick off the drafting of its cyber strategy and cyber posture review to align US cyber capabilities and operating concepts with the foreign policy objectives of the Joseph Biden-Kamala Harris administration. Given that the administration describes China as the “pacing threat,” debates over the best use of cyber operations and campaigns will likely be framed by US-China interaction in day-to-day competition, and by a potential militarized crisis and war over the status of Taiwan. This essay focuses on how cyber operations employed during militarized crises are likely to impact escalation management. Policymakers may be attracted to the idea that cyber operations could serve as de-escalatory offramps in a crisis. Such expectations should be tempered, if not completely set aside, for two reasons. First, there is no experience with cyber operations employed during a militarized crisis between two nuclear-armed peers. Absent direct experience, all one can rely on is academic research. Yet, secondly, deductive and empirical academic research provides no basis for confidence that cyber operations are either de-escalatory or non-escalatory in the context of militarized crises.
- Topic:
- Foreign Policy, Cybersecurity, Crisis Management, and Militarization
- Political Geography:
- China, Taiwan, Asia, North America, and United States of America
22. China: An Economic and Political Outlook for 2022
- Author:
- Kevin Rudd
- Publication Date:
- 01-2022
- Content Type:
- Policy Brief
- Institution:
- Asia Society
- Abstract:
- In recent years, Xi Jinping has taken China to the “left” politically and economically, but to the “right” with his deeply nationalist narratives at home and a more assertive foreign and security policy abroad. More recently, this has contributed to a slowdown in the Chinese economy and an increase in the level of political and policy reaction against Xi’s anti-market measures. Now, with last month’s Central Economic Work Conference, the Communist Party appears to have now acknowledged a number of Xi’s measures have indeed gone too far, especially as Xi himself seeks to maximize economic stability ahead of his bid for reappointment to another term in office at the 20th Party Congress this November. But whether these corrective measures will be enough to restore economic growth in the short term given the Chinese private sector is now “once bitten, twice shy” is another question altogether. In China: An Economic and Political Outlook for 2022 – Domestic Political Reaction to China’s Economic Slowdown ASPI President and CEO Kevin Rudd tackles these questions and provides an analysis of how China’s economic challenges are likely to shape its politics and policies in the year ahead.
- Topic:
- Foreign Policy, Politics, Economy, and Xi Jinping
- Political Geography:
- China and Asia
23. Forging European Unity on China: The Case of Hungarian Dissent
- Author:
- Ties Dams
- Publication Date:
- 04-2022
- Content Type:
- Policy Brief
- Institution:
- Clingendael Netherlands Institute of International Relations
- Abstract:
- EU Member states can be divided on China, even on issues such as human rights. Often singled out as an agent of division is the Hungarian government of prime minister Viktor Orbán. Hungarian dissent begs the question: how can the EU move forward on China given Hungary’s strategy of obstructive dissent? European cooperation ought not wait for unanimity, nor should it rely on value-politics: member states should play the power game to circumvent or break lingering impasses. Member States should support setting up a 27+1 Forum as the main platform for European China-policy, form a leading group tackling strategic corruption and corrosive capital, and initiative a track 1.5 dialogue on China with Germany and the Visegrád Countries.
- Topic:
- Foreign Policy, Corruption, Human Rights, and European Union
- Political Geography:
- China, Europe, Asia, and Hungary
24. Ukraine: Toward a Prolonged War of Attrition Fuelling Great Power Competition
- Author:
- Al Jazeera Center for Studies
- Publication Date:
- 08-2022
- Content Type:
- Policy Brief
- Institution:
- Al Jazeera Center for Studies
- Abstract:
- Russia and China no longer need to play by the rules of the Euro-American international order. It is therefore likely that in this uncertain period of flux, the major four powers will vie to win friends and allies, giving second-tier powers like Turkey and India more influence if they can ably manage their foreign relations and avoid unnecessary alignment with any of the four major powers.
- Topic:
- International Relations, Foreign Policy, Power Politics, Strategic Competition, and Russia-Ukraine War
- Political Geography:
- Russia, China, Ukraine, and Eastern Europe
25. The Folly of Pushing South Korea Toward a China Containment Strategy
- Author:
- Jessica J. Lee and Sarang Shidore
- Publication Date:
- 05-2022
- Content Type:
- Policy Brief
- Institution:
- Quincy Institute for Responsible Statecraft
- Abstract:
- The narrow victory of conservative candidate Yoon Suk-yeol in the recent South Korean presidential election comes against the backdrop of an intensifying U.S.-China rivalry, now compounded by the Ukraine crisis. Washington would like South Korea to play a security role in its Indo-Pacific strategy — a strategy that effectively aims to contain China. However, South Korean elites (and the general public) are deeply ambivalent and internally divided on the question of containing China. Pushing South Korea — a robust democracy with major elite divisions — toward containing Beijing risks negative consequences for the United States. These include a reduction in U.S. influence in South Korea, erosion of the U.S.-South Korea alliance, a less-effective South Korean presence in the region, and, in the long run, the potential of South Korean neutrality with respect to China. To avoid these negative outcomes for the United States, Washington should: • Avoid pressuring South Korea to join its China-containment strategy, • Refrain from including Seoul in emerging, non-inclusive, bloc-like structures of U.S. allies in Asia, • Consider pulling back on its intended new Terminal High Altitude Area Defense deployments until a greater consensus is reached within South Korea on the issue, • See South Korea’s role as a bridge and an opportunity to stabilize Washington’s own relationship with Beijing. For example, both South Korea and China could be included in non-traditional security activities of the Quad such as infrastructure and climate change, and • More generally, demilitarize the Quad and open it to wider participation for strengthening U.S. influence in Asia, rather than see it as a zero-sum vehicle for containing China.
- Topic:
- Security, Foreign Policy, Diplomacy, Containment, and Quad Alliance
- Political Geography:
- China, Asia, South Korea, North America, and United States of America
26. Memo on an "Economic Article 5" to Counter Authoritarian Coercion
- Author:
- Ivo H. Daalder and Anders Fogh Rasmussen
- Publication Date:
- 06-2022
- Content Type:
- Policy Brief
- Institution:
- Chicago Council on Global Affairs
- Abstract:
- The world's democracies need a way to fight back against coercive economic actions by authoritarian governments, argue Ivo Daalder and Anders Fogh Rasmussen. Increasingly, authoritarian countries are using economic coercion against democracies. In recent years, China’s economic coercion of Lithuania and Australia stands out as a prominent example. Russia uses economic levers to achieve geopolitical aims, notably by weaponizing its natural resources. The aim of such coercion is to bend the will of democratic countries. This is a test for the free world. In response, we propose an Economic Article 5 among democracies to counter authoritarian coercion.
- Topic:
- Foreign Policy, Authoritarianism, Economy, Business, and Trade
- Political Geography:
- Russia, China, Asia, North America, and United States of America
27. Let a thousand contacts bloom: How China competes for influence in Bulgaria
- Author:
- Vladimir Shopov
- Publication Date:
- 03-2022
- Content Type:
- Policy Brief
- Institution:
- European Council on Foreign Relations (ECFR)
- Abstract:
- China is a geopolitical latecomer to Bulgaria, having traditionally shown more interest in other countries in south-eastern Europe. Beijing has long struggled to gain influence in Bulgaria due to the country’s EU membership and entrenched interests in sectors such as infrastructure and energy. China has responded to this challenge by adopting a multi-track strategy of engagement with state and non-state actors at the national and subnational levels. Beijing has significantly expanded its subnational cooperation with Bulgaria in areas such as culture, education, agriculture, research, public procurement, and e-governance. China has focused on strengthening its frameworks of cooperation and building relationships with local elites to circumvent national policies. China’s growing presence in Bulgaria has concerning implications in areas such as technology transfers, agriculture, research, ‘smart city’ and governance projects, control of critical infrastructure, and public procurement.
- Topic:
- Foreign Policy, Diplomacy, International Cooperation, and European Union
- Political Geography:
- China, Europe, Asia, and Bulgaria
28. Principled pragmatism: Europe’s place in a multipolar Middle East
- Author:
- Julien Barnes-Dacey and Hugh Lovatt
- Publication Date:
- 04-2022
- Content Type:
- Policy Brief
- Institution:
- European Council on Foreign Relations (ECFR)
- Abstract:
- A multipolar Middle East is emerging as the US “right-sizes” its posture in the region – and as regional states and external powers, including Russia and China, become more assertive. Russia’s war on Ukraine is accelerating these dynamics, while also provoking destabilising price shocks and underscoring the region’s importance to energy markets. The Middle East’s geopolitical shifts pose huge challenges to Europe, but multipolarity could create space to promote European interests more effectively. A coherent European approach should be guided by principled pragmatism: acknowledging the region as it is rather than as Europeans want it to be, while staying focused on the principles needed to secure longer-term stability. Europeans need to enhance transatlantic complementarity and stop ceding leverage to their Middle Eastern partners. While they compete for influence with Russia and China, they should maintain room for coordination with both countries. Europe should tap into the opportunities created by stabilisation support, green energy, and economic diversification – areas that could provide an edge over China.
- Topic:
- Foreign Policy, Geopolitics, Multipolarity, Strategic Interests, Pragmatism, and Regional Politics
- Political Geography:
- Russia, China, Europe, Ukraine, Middle East, North America, and United States of America
29. What now for Australia-China relations?
- Author:
- The University of Sydney China Studies Centre
- Publication Date:
- 06-2022
- Content Type:
- Policy Brief
- Institution:
- China Studies Centre, The University of Sydney
- Abstract:
- After the May Federal Election, Labor Party leader Anthony Albanese was sworn in as the new Prime Minister of Australia. What could this change in government mean for future Australia-China relations? At the China Studies Centre event on 3 June, four experts and practitioners in Australia-China relations discussed the bilateral relations over the past few years and the prospects for future political, social and economic interactions.
- Topic:
- International Relations, Security, Foreign Policy, Diplomacy, Bilateral Relations, and Conflict
- Political Geography:
- China, Asia, and Australia
30. An Overlooked Source of Chinese Influence in Latin America
- Author:
- Linda Zhang and Ryan Berg
- Publication Date:
- 02-2021
- Content Type:
- Policy Brief
- Institution:
- The Jamestown Foundation
- Abstract:
- The People’s Republic of China’s (PRC) engagement in Latin America and the Caribbean (LAC) is drawing increased scrutiny from U.S. policymakers. The International Liaison Department of the Central Committee of the Chinese Communist Party (ILD) (中共中央对外联络部, zhonggong zhongyang duiwai lianluo bu) is one of the many Chinese organizations active in LAC. Although its footprint is relatively small compared to larger trade and governmental organizations, the ILD’s emphasis on ideology and on long-term relationship building in its engagements is noteworthy and should be monitored more closely within the context of China-Latin America relations.
- Topic:
- Foreign Policy, International Affairs, Political Parties, and Chinese Communist Party (CCP)
- Political Geography:
- China, Asia, and Latin America
31. Australia's South China Sea Challenges
- Author:
- Malcolm Cook
- Publication Date:
- 05-2021
- Content Type:
- Policy Brief
- Institution:
- Lowy Institute for International Policy
- Abstract:
- China will not agree to a South China Sea Code of Conduct (COC) that is consistent with the 2016 South China Sea arbitral tribunal ruling, and therefore any COC which China agrees with the Association of Southeast Asian Nations (ASEAN) will harm Australia’s interests. But a lack of Australian support for such a Code would aggravate relations with Southeast Asian states and ASEAN, and with China. Australia should use the time afforded by the drawn-out Code of Conduct negotiations to coordinate with the five littoral Southeast Asian states affected by China’s unlawful maritime claims. Australia should emphasise the need for consistency with international law, especially the 2016 arbitral ruling. The Biden administration is likely to increase pressure on Australia to conduct freedom of navigation operations (FONOPS) in the South China Sea. Such action may risk a significant Chinese response against Australia.
- Topic:
- Foreign Policy, Territorial Disputes, Maritime, Alliance, and Freedom of Movement
- Political Geography:
- China, Australia, Southeast Asia, Asia-Pacific, United States of America, and South China Sea
32. Chinese-Australians in the Australian Public Service
- Author:
- Yang Jiang
- Publication Date:
- 04-2021
- Content Type:
- Policy Brief
- Institution:
- Lowy Institute for International Policy
- Abstract:
- Almost every governmental policy decision made today has a China angle, and building understanding of China has become more pressing for Australian policymaking than ever. Despite the urgent demand within the Australian public service for China expertise and language skills, the existing skills of many Chinese-Australians are being overlooked. Australia has a significant, diverse, and growing population of Chinese-Australians, but they are underrepresented and underutilised in the public service. A better harnessing of the skills and knowledge of this community — including via improved recruitment processes, better use of data, skills-matching, and reviewing and clarifying security clearance processes and requirements — would have substantial benefits for Australian policymaking in one of its most important bilateral relationships.
- Topic:
- Foreign Policy, Government, Bilateral Relations, and Public Service
- Political Geography:
- China, Asia, and Australia
33. To Beat China On Tech In Emerging Markets, Learn From It: Competing with China on 5G and future technologies
- Author:
- Luke Patey
- Publication Date:
- 05-2021
- Content Type:
- Policy Brief
- Institution:
- Danish Institute for International Studies (DIIS)
- Abstract:
- Recommendations: The US, South Korea, Japan, and the EU can pool resources to level the playing field with China and offer new finance options for developing countries seeking to upgrade their communications and technology infrastructure. The US should look to the India and Vietnam model and help other nations develop domestic capacities that lower dependencies on Huawei and other foreign tech providers over time. Open RAN is no silver bullet to compete with China. Its potential will only be fully realized in the mid and long run, after high integration costs, security gaps, and other problems are worked out.
- Topic:
- Security, Foreign Policy, Development, Politics, Science and Technology, Power Politics, Economy, and Cyberspace
- Political Geography:
- Japan, China, Asia, North America, and United States of America
34. Nature and Nurture: How the Biden Administration Can Advance Ties With India
- Author:
- Anubhav Gupta
- Publication Date:
- 01-2021
- Content Type:
- Policy Brief
- Institution:
- Asia Society
- Abstract:
- The state of the U.S.-India relationship is strong, but two critical developments in 2020 have created a new inflection point for the relationship. Growing apprehension in both New Delhi and Washington about Chinese aggression has created the strategic convergence long sought by a U.S. defense establishment eager to enlist India to balance China. On the other hand, devastated by the Covid-19 global pandemic, the United States and India face challenging economic recoveries amid growing protectionist sentiments at home that could diminish the relationship’s promise. Having won the U.S. presidential election, Joe Biden has an opportunity to consolidate and accelerate the relationship by creating a substantive and broad partnership with India, which can undergird U.S. policy in Asia and support U.S. global interests for decades to come. this paper provides a blueprint for how the Biden administration can actualize what previous presidents have deemed a “natural partnership.”
- Topic:
- Foreign Policy, Bilateral Relations, Partnerships, COVID-19, and Joe Biden
- Political Geography:
- China, India, and United States of America
35. ASPI NOTES for the Biden Administration
- Author:
- Wendy Cutler, Anubhav Gupta, Nathan Levine, Richard Maude, Elina Noor, Jing Qian, Alistair Ritchie, Kevin Rudd, Daniel R. Russel, and Thom Woodroofe
- Publication Date:
- 01-2021
- Content Type:
- Policy Brief
- Institution:
- Asia Society
- Abstract:
- The Asia Society Policy Institute (ASPI) Notes for the Biden Administration is designed to offer creative and practical ideas for how the United States might re-engage in the Asia Pacific, particularly in the critical first six months of the new administration. The administration will immediately face a range of challenges and opportunities in this important region, including on climate change, public health, and the global economy. President-elect Biden and his team have signaled the need for the United States to lean into and deepen its engagement with friends and allies. This will mean leveraging the Asia Pacific’s multilateral architecture as well as using global forums such as the G20 and international organizations. Trade policy will also figure importantly in any effort to renew and expand America’s engagement. Additionally, the U.S.-China relationship will loom large from the outset. Tensions with China will surely linger, whether in the South China Sea or the Taiwan Strait, complicating the task of establishing a new framework of “managed strategic competition” – a combination of each side's "red lines," continued competition, plus agreement on areas of mutually beneficial cooperation. ASPI Notes for the Biden Administration provides a diverse package of 20 actionable proposals to address specific risks or objectives in reconnecting with the Asia Pacific. These notes carefully reflect the views, perspectives, and expectations of the region itself – a hallmark of ASPI’s approach.
- Topic:
- Foreign Policy, Climate Change, Economy, Trade, Public Health, and Joe Biden
- Political Geography:
- China, Taiwan, Asia, Asia-Pacific, and United States of America
36. Twenty Years of One Country Two Systems in China: Evaluation and Future Prospects
- Author:
- Jai Chul Heo
- Publication Date:
- 04-2021
- Content Type:
- Policy Brief
- Institution:
- Korea Institute for International Economic Policy (KIEP)
- Abstract:
- This study evaluated China's model of “One Country, Two Systems” (一國兩制) 20 years into operation and the bilateral relationship between Taiwan and Mainland China ‒ focusing on Hong Kong, Macau, and Taiwan ‒ and examined future prospects. The study is meaningful in that it conducts a more objective evaluation than the previous studies by empirically analyzing data accumulated over the past 20 years of implementation of the One Country Two Systems principle from various perspectives. In addition, it is also a timely study in that it analyzes how the One Country Two Systems arrangement is likely to develop in the future, and what impact this would have, making considerations for changes in China's national strategy during the Xi Jinping period and the competition for hegemony between the U.S. and China. The results of the analysis indicate that over the past 20 years China has been experimenting with the possibility of coexisting different systems in one country, and that the One Country Two Systems arrangement, as a new form of unification which has never been attempted in the history of mankind, has actually shown the possibility of success. However, in recent years, various political contradictions have been exposed in the process of implementing the arrangement, mostly in the Hong Kong society, and the resulting conflict has gradually intensified. While maintaining the current capitalist system for 50 years, Macau is expected to gradually progress in its “Sinicization,” with continuing active economic and social exchanges and cooperation with mainland China. As a result, Macau is expected to be fully incorporated into China's socialist system in 2049, 50 years after the return, but it is likely to remain a city of special character considering Macau's region and its economic structure. On the other hand, the One Country Two Systems arrangement with Hong Kong is expected to undergo a difficult process in the future. In the midst of various conflicts surrounding Hong Kong, the guarantee for Hong Kong’s autonomy is expected to end in 2047 amid efforts on the part of the mainland government to sinicize Hong Kong. And China wants to apply the philosophy of “One Country, Two Systems” to its reunification with Taiwan as well, but in reality this remains very low in possibility.
- Topic:
- Foreign Policy, Politics, Bilateral Relations, Hegemony, and Strategic Competition
- Political Geography:
- China, Taiwan, Asia, Korea, Hong Kong, and Macau
37. The Effects of US-China Rivalry on Latin America and Their Implications
- Author:
- Sungwoo Hong, Yeo Joon Yoon, Jino Kim, Jeewoon Rim, and Jimin Nam
- Publication Date:
- 02-2021
- Content Type:
- Policy Brief
- Institution:
- Korea Institute for International Economic Policy (KIEP)
- Abstract:
- The conflict between the United States and China may be the issue of most importance as well as interest to the world, prior to COVID-19. This conflict between the two countries is appearing not only in the economic sector, but also in various field such as politics, diplomacy, and military affairs. Such competition between the two countries is likely to escalate further as multilateral systems such as the WTO are threatened and protectionism intensifies in the post-COVID-19 world. Even within Latin America, the competition between the two countries frequently appears in a variety of forms. Conflicts between the United States and China in Latin America tend to occur mainly in the infrastructure sectors. Furthermore, the United States pressured Latin American countries to choose between the United States and China, with the results of this pressure depending on the political orientation of the ruling government. In order to investigate the impact of retaliatory tariffs between the two countries on Latin American countries’ exports and welfare, we employ an event analysis for exports and computational general equilibrium (CGE) model for welfare, with Argentina, Brazil, Mexico, and Chile as the subject of our analysis. Based on the outcome of the event study, Brazil’s exports to the United States moderately increased due to the tariff imposition, and such an effect persisted for short term. Its exports to China rose considerably immediately after the tariff imposition, and then the impact tended to decrease over time. By contrast, it is difficult to conclude that the tariff imposition had a statistically significant and lasting effect on the exports of the remaining three countries to the United States and China. As a result of the analysis using the CGE model, meanwhile, the tariffs imposed between the United States and China trivially increased the welfare of Latin American countries.
- Topic:
- Foreign Policy, Economy, Tariffs, Exports, Trade, and Rivalry
- Political Geography:
- China, Asia, South America, Latin America, Korea, and United States of America
38. Confronting China on sensitive issues
- Author:
- Andreas Bøje Forsby
- Publication Date:
- 12-2021
- Content Type:
- Policy Brief
- Institution:
- Danish Institute for International Studies (DIIS)
- Abstract:
- In the past few years, we have witnessed a resurgence of liberal human rights issues and other sensitive political questions in bilateral relations between Denmark and China. This has triggered a series of confrontations over, among other things, a satirical cartoon in Jyllands-Posten, Chinese sanctions against the Copenhagen-based Alliance of Democracies and the installation of a ‘pillar of shame’ sculpture in front of Christiansborg (housing the Danish Parliament) in solidarity with the pro-democracy protesters in Hong Kong. Meanwhile, bilateral relations have taken a sharp downward turn, threatening the very existence of the Comprehensive Strategic Partnership launched by Denmark and China in 2008. While Danish governments are mandated by Folketinget (Parliament) to raise human rights concerns with Beijing, for many years Copenhagen preferred to do so in a relatively discreet manner, on the margins of bilateral meetings or together with a coalition of states in multilateral fora such as the UNHRC. Since 2019, however, human rights and other sensitive issues have come to dominate the bilateral agenda, reflecting a broader Western development as China has come to be widely seen as ‘a systemic rival’ to liberal democracy.
- Topic:
- Foreign Policy, Defense Policy, Diplomacy, and International Organization
- Political Geography:
- China, Asia, Denmark, and Baltic States
39. The myths and realities of China's economic coercion
- Author:
- Luke Patey
- Publication Date:
- 11-2021
- Content Type:
- Policy Brief
- Institution:
- Danish Institute for International Studies (DIIS)
- Abstract:
- Despite the significance of the world’s second largest economy increasingly using its trade and connectivity as a weapon to advance its foreignand security-policy aims, separating the myths from the realities of Chinese coercion is crucial in shaping appropriate policy responses and deterring China and others from such assertive behaviour.
- Topic:
- Security, Foreign Policy, Defense Policy, Diplomacy, Economics, and Coercion
- Political Geography:
- China, Europe, Asia, and Denmark
40. Xi Jinping’s Evergrande Dilemma
- Author:
- John Lee
- Publication Date:
- 09-2021
- Content Type:
- Policy Brief
- Institution:
- Hudson Institute
- Abstract:
- Evergrande is one of the top-two real estate developers in a still highly fragmented Chinese sector. Its main strategy is to achieve ever-increasing scale (rather than profitability) in order to move ahead of and crowd out commercial competitors. It has also amassed the largest land reserves of all Chinese developers, which were financed through massive borrowings. By 2018, Evergrande held 822 pieces of undeveloped land in 228 cities, with a planned gross floor area of 3.28 billion square feet of new homes—the equivalent of 10 percent of Germany’s entire housing stock. It paid $75 billion just for this undeveloped land. Although Evergrande’s market share is only around 4 percent, its borrowings stand out. Its current balance sheet liabilities amount to an estimated 2 percent of China’s gross domestic product (GDP), while its off-balance-sheet liabilities could be another 1 percent of China’s GDP. This makes Evergrande the most indebted property developer in the world. Burdened by this debt, struggling to meet its debt interest and repayment obligations, and viable only if property asset values and sales continue to increase, Evergrande faces possible financial collapse—an event bound to have flow-on effects for the Chinese economy. However, the unusually high global interest in Evergrande has arisen because its woes are increasingly seen as symptomatic of those faced by the broader Chinese economy, which is struggling with enormous levels of indebtedness and overreliance on the real estate sector. Debt held by nonfinancial institutions in China increased from about 115 percent of GDP in 2010 to around 160 percent of GDP currently. This is the most rapid and largest increase in a 10-year period for any major economy and makes the level of debt held by Chinese nonfinancial institutions one of the highest in the world. The real estate sector accounts for around 15 percent of GDP, while property services account for another 14 percent—the highest in any developing economy. The share of the real estate sector as a proportion of GDP was only about 4 percent in 1997 and 9 percent in 2008. Since 2008, up to a third of all domestic fixed investment has gone into real estate, and up to half of total national debt is linked to the real estate sector.
- Topic:
- International Relations, Foreign Policy, Debt, Economics, Markets, and Business
- Political Geography:
- China and Asia
41. Genocide in Xinjiang: Centering Uyghur Human Rights in US Policies Toward China
- Author:
- Nury Turkel
- Publication Date:
- 11-2021
- Content Type:
- Policy Brief
- Institution:
- Hudson Institute
- Abstract:
- Acts of genocide are currently underway against the Uyghur people in the Xinjiang Uyghur Autonomous Region of northwestern China, also known as East Turkistan. As part of a campaign of persecution and cultural eradication, Chinese authorities have, according to former detainees and prisoners, subjected millions of Uyghurs and other minorities to rape, torture, forced labor, arbitrary detention, involuntary abortion and sterilization in state-run facilities, and the separation of around half a million Uyghur children from their families. Although both Republicans and Democrats in the United States have acknowledged these horrifying acts as genocide, the rest of the world has been slow to follow, whether because they find the evidence to be inconclusive or because they are reluctant to antagonize China. Regardless, now that the Biden administration is on record declaring the actions of the Chinese government to be genocide, the United States has a legal and moral obligation to do what it can to end the mass atrocities that the Chinese Communist Party (CCP) is committing against the Uyghur people. While both the Trump and Biden administrations and Congress have already taken steps to address this human rights disaster, more can and should be done to defend the Uyghur people, address their humanitarian needs, promote accountability, and ensure that individuals and entities within the United States—including private businesses—are not complicit in the abuses underway. A strong response to the ongoing genocidal campaign would send a powerful message to Beijing that America will not tolerate efforts to destroy ethno-religious groups, either as a whole or in part. Conversely, failure to act would render the Convention on the Prevention and Punishment of the Crime of Genocide (which the United States ratified in 1988) and its implementing legislation null and void. Through the three Cs—competition, confrontation, and cooperation—the Biden administration can act in coordination with US friends and allies abroad to end these atrocities. The Biden administration is now on record as recognizing this repressive campaign as genocide, a move that must trigger a response toward Beijing that departs from business as usual. Although China’s significant global influence supports the assumption that effective levers to influence its behavior with respect to human rights issues are lacking, international attention and pressure have already caused Beijing to backpedal to a certain degree. This attention and pressure resulted from US-led efforts to rally international support coupled with US legislative and executive responses, including sanctions, visa restrictions, and trade restrictions. This policy memo outlines the nine areas of action that, performed in coordination with complementary actions of partners and allies, could alleviate the Uyghur human rights crisis, pressure China to reverse course, and ensure that the West and corporate America are not complicit in genocide.
- Topic:
- Foreign Policy, Genocide, Human Rights, and Religion
- Political Geography:
- China, Asia, United States of America, and Xinjiang
42. The Chinese Communist Party’s Economic Challenge to the Free World
- Author:
- Miles M. Yu
- Publication Date:
- 04-2021
- Content Type:
- Policy Brief
- Institution:
- Hudson Institute
- Abstract:
- The Chinese economy and the philosophical roots of China’s system have greater implications for the United States economy than many assume. The one critical fact to understand about the People’s Republic of China is that it is a communist dictatorship ruled by a Marxist-Leninist party. The Party is dedicated to maintaining and strengthening its monopoly on all powers in the world’s most populous country and to mounting the most serious challenge to the free world since the Cold War. This policy memo will examine the Chinese economy’s distinct traits, how it operates, and why it thrives under a monopolistic government that exploits and challenges the global free market system, along with possible policy recommendations for the United States and its allies. Unlike most other communist countries, China has been afforded the benefits of a global free-market system and enjoys largely open access to international trade, capital markets, and advanced technologies. The paradox of a communist nation fully participating in a largely capitalist system has enriched and strengthened the Chinese Communist Party (CCP), to the point where Beijing poses a mortal threat to the United States and to the international free market economic system that has enabled the rise of the communist state. The West played a role in creating the current state of play. But too many conversations in the United States focus only on our own strategic thinking. In his historic speech at the Richard Nixon Library in July 2020, former Secretary of State Mike Pompeo aptly described the situation and how we got here: “Our policies—and those of other free nations—resurrected China’s failing economy, only to see Beijing bite the international hands that were feeding it.” As President Richard Nixon admitted in his later years, his initiative to open up China in 1972 might have created a Frankenstein.
- Topic:
- Foreign Policy, Communism, Economics, and Chinese Communist Party (CCP)
- Political Geography:
- China, Asia, and United States of America
43. Europe's China Chimera
- Author:
- Peter Rough
- Publication Date:
- 02-2021
- Content Type:
- Policy Brief
- Institution:
- Hudson Institute
- Abstract:
- When Xi Jinping, the chairman of the Chinese Communist Party (CCP), dreams of global domination, he worries about one thing above all else: a hostile United States backed by its allies—and on the Eurasian landmass, the US has no more important ally than Europe. As a result, Xi has worked to weaken the transatlantic alliance through a two-pronged economic stratagem. First, under the guise of globalization, China has insinuated itself into the European economy, creating dependencies. Second, Beijing is manipulating those dependencies to hollow out and supplant Europe’s advanced economies. To give this deception cover, China has built a vast political network across Europe, from basic sympathizers to outright spies. Until recently, barely anyone took notice, but the financial crisis and forever wars of the past two decades, culminating in the election of Donald Trump as president of the United States, lured the self-confident Xi out into the open. During the coronavirus pandemic, China revealed an aggressive attitude toward Great Britain’s former colonies that shocked the United Kingdom. In the span of mere months, London shifted from cooperation to confrontation. In July, it became the first country in Europe to block the Chinese telecommunications giant, Huawei, from its next-generation networks. Germany, the continent’s most important country, still sees China as key to post-pandemic recovery and economic growth, however. Xi has exploited this attitude to strike an investment agreement with the European Union (EU), the chief purpose of which is to forestall a transatlantic approach under the new US president, Joe Biden. Together, the United States and Europe have unparalleled advantages against any competitor. Now is the time for cooperation, before Xi’s dreams become our collective nightmare.
- Topic:
- International Relations, Foreign Policy, and Chinese Communist Party (CCP)
- Political Geography:
- China, Europe, and Asia
44. A US-India Trade Agenda for the Biden Administration
- Author:
- Aparna Pande and Husain Haqqani
- Publication Date:
- 02-2021
- Content Type:
- Policy Brief
- Institution:
- Hudson Institute
- Abstract:
- The US ought to counteract the influence of Chinese authoritarianism early and often. One relatively low-cost way is to encourage India to engage more deeply as a competitor with China in the global economy. A democracy since its independence in 1947, with a population about the same as that of China, India is that country’s natural rival in Asia. Beginning with India’s decision in 1990-91 to liberalize its economy, the nation has gradually opened its vast market to global trade. Fueled by fresh access to foreign capital and technology, India’s economy grew over six percent during the first decade of the 21st century. In May 2014, this progress was further advanced by the election of Prime Minister Narendra Modi. For the first time in India’s history, a conservative administration had a clear parliamentary majority, making it possible to legislate foundational, market-positive reform. India has adopted a new insolvency and bankruptcy code and replaced multiple taxation regimes across its states with a federal goods and services tax, which is welcome. But India has done little to end its excessive protectionism. Its distrust of foreign corporations, a legacy of colonial rule, endures. Indian policy makers may believe that the US is so eager for Indian competition with China that Washington will grant them a pass on restrictive trade and investment policies. But there is a better choice. India is nowhere near its full economic potential, and the fix isn’t complicated. The Biden agenda for India should encourage India to lower tariffs, to remove barriers to foreign retail, to roll back unnecessarily restrictive data privacy rules, and to provide economic incentives for foreign investment.
- Topic:
- International Relations, Foreign Policy, Bilateral Relations, and Trade
- Political Geography:
- China, South Asia, India, and United States of America
45. US Support for Australia and the Region Against PRC Coercion: A Six Point Agenda
- Author:
- John Lee
- Publication Date:
- 03-2021
- Content Type:
- Policy Brief
- Institution:
- Hudson Institute
- Abstract:
- Since around 2016, Australia has been transitioning away from a “small target” hedging mindset toward a more proactive countering and balancing approach vis-à-vis the People’s Republic of China. This is largely a response to the increasingly assertive and coercive activities of the Chinese Communist Party (CCP), which is the predominant cause of instability, uncertainty, and anxiety in Canberra and throughout the Indo-Pacific region. The CCP has implemented a sustained and cascading array of economic and diplomatic punishments against Australia in an attempt to intimidate Australia and force changes in Australian policy. Beijing is explicit that this is the purpose of the ongoing series of punishments against Canberra. In November 2020, its embassy in Canberra went to the extraordinary lengths of releasing the infamous “14 grievances” against the Australian government[i] to justify the ongoing punitive measures. These included mainly domestic Australian policies such as restrictions on Chinese investment, the funding of Australian think tanks critical of the PRC, the passing of foreign interference legislation to root out Chinese interference in Australian institutions, and the banning of Chinese firms from the Australian 5G telecommunications roll-out. Australia is widely seen as the proverbial canary in the mine and needs American support. If Australia can hold its ground and continue to find the courage and creativity to pursue its national interest, then the PRC will suffer an enormous blow. On the other hand, if Australia is eventually cowed by the PRC and relents on key policy settings, then other sovereign nations might well lose the courage to stand firmer against the PRC’s coercion and intimidation. Strengthening the fortitude of Australian leaders is the assurance that the United States is behind its ally. That assurance was previously given to Canberra by the Donald Trump administration and has been continued by the Joe Biden administration. Indeed, the Biden administration has declared it will go further and do better than the previous administration in reinvigorating and deepening its alliances and friendships with Indo-Pacific nations to better manage the PRC challenge and threat. This brief has been prepared to assist the Biden team in doing just that. It gives some context to Australia’s evolving Indo-Pacific strategy: how a nation that is not a superpower is thinking about the PRC’s policies and activities in the region, why Canberra is taking proactive and forward leaning actions to counter and balance the PRC, and what Canberra is hoping will be some priority areas for the Biden administration with respect to the Indo-Pacific approach and strategy by the US.
- Topic:
- Foreign Policy, Geopolitics, Joe Biden, and Strategic Planning
- Political Geography:
- China, Australia, United States of America, and Indo-Pacific
46. China’s Foreign Policy at the Centennial of the Communist Party: Prestige Above All
- Author:
- Jyrki Kallio
- Publication Date:
- 09-2021
- Content Type:
- Policy Brief
- Institution:
- Finnish Institute of International Affairs
- Abstract:
- Chinese external and internal politics have manifested increased ideologization in recent years, presumably laying the groundwork for the Communist Party’s 100th anniversary this year. The trend is likely to continue at least until the completion of the 20th Party Congress in 2022. In China’s foreign policy, this ideologization has taken the form of increased emphasis on the realization of China’s “Grand Rejuvenation” and heightened sensitivity to anything that might stand in its way. This is in line with the Party’s historical narrative emphasizing the “century of humiliation” and the ensuing efforts to curb China’s rise. The resulting prestige-driven foreign policy has proved harmful to China’s external image. An easing of Chinese politics may thus be conceivable once the Party has left the current sensitive times behind to its satisfaction. Countries with vital economic ties to China, and which depend at the same time on continued US support in security policies, have little choice but to continue tightroping for a few more years at least.
- Topic:
- Foreign Policy, Diplomacy, International Cooperation, Hegemony, Conflict, and Economic Cooperation
- Political Geography:
- China and Asia
47. What Europeans think about the US-China Cold War
- Author:
- Ivan Krastev and Mark Leonard
- Publication Date:
- 09-2021
- Content Type:
- Policy Brief
- Institution:
- European Council on Foreign Relations (ECFR)
- Abstract:
- A majority of European citizens believe a new cold war with both China and Russia is under way – but they mostly do not think that their own country is involved. Most believe the US is already taking part in these confrontations, and they consider EU institutions as more likely than their own governments to be in a cold war with China and Russia. An optimistic interpretation sees the outsourcing of such great-power competition to Brussels as the arrival of a true EU foreign policy – but a more pessimistic analysis sees a gap emerging between Brussels on the one hand and member state capitals and EU citizens on the other. This difference in views between whether one’s own country is taking part in the brewing conflict, as opposed to whether America and the EU are, suggests there is no European public consensus that the world of tomorrow will be one of growing competition between democracy and authoritarianism. Given this risk, policymakers should find a different, less ideological, framing to generate public support for a strong transatlantic alliance.
- Topic:
- Foreign Policy, Cold War, Authoritarianism, European Union, Democracy, Alliance, and Strategic Competition
- Political Geography:
- China, Europe, and United States of America
48. The crisis of American power: How Europeans see Biden’s America
- Author:
- Ivan Krastev and Mark Leonard
- Publication Date:
- 01-2021
- Content Type:
- Policy Brief
- Institution:
- European Council on Foreign Relations (ECFR)
- Abstract:
- Most Europeans rejoiced at Joe Biden’s victory in the November US presidential election, but they do not think he can help America make a comeback as the pre-eminent global leader. Europeans’ attitudes towards the United States have undergone a massive change. Majorities in key member states now think the US political system is broken, and that Europe cannot just rely on the US to defend it. They evaluate the EU and/or their own countries’ systems much more positively than that of the US – and look to Berlin rather than Washington as the most important partner. There are geopolitical consequences to American weakness. A majority believe that China will be more powerful than the US within a decade and would want their country to stay neutral in a conflict between the two superpowers. Two-thirds of respondents thought the EU should develop its defence capacities. There is a great chance for a revival of Atlanticism, but Washington cannot take European alignment against China for granted. Public opinion will have a bigger effect on the relationship than it once did, and needs to be taken into account.
- Topic:
- Foreign Policy, Politics, Public Opinion, and Transatlantic Relations
- Political Geography:
- China, Europe, and United States of America
49. Decade of patience: How China became a power in the Western Balkans
- Author:
- Vladimir Shopov
- Publication Date:
- 02-2021
- Content Type:
- Policy Brief
- Institution:
- European Council on Foreign Relations (ECFR)
- Abstract:
- China has become the most prominent third actor in the Western Balkans. The country’s activities are spread unevenly across the region, but they follow a common approach. This approach is marked by China’s wide-ranging efforts to establish itself in key economic areas and to gradually position itself as an indispensable actor. China is slowly transforming its interactions with Western Balkans countries in sectors such as culture, media, and politics into long-term and institutionalised relationships. As European and US ambivalence towards the Western Balkans persists, the region will be in increasing danger of falling into an endless spiral of competition between various foreign actors. Western policymakers should address the widening developmental gap between the region and the EU through initiatives such as targeted investment plans in energy and infrastructure, sectoral integration frameworks, and the frontloading of EU law in the accession process.
- Topic:
- Foreign Policy, Infrastructure, European Union, and Investment
- Political Geography:
- China, Europe, Eastern Europe, Balkans, and United States of America
50. How to Think About the China-Russia Partnership
- Author:
- James Sherr and Frank Jüris
- Publication Date:
- 09-2021
- Content Type:
- Policy Brief
- Institution:
- International Centre for Defence and Security - ICDS
- Abstract:
- Since the conclusion of the Treaty on Good-Neighbourliness and Friendly Cooperation in 2001, the balance of power between China and Russia has appreciably shifted in favour of the former, but their common definition of the enemy and the complementarity of their core interests remains as strong as it ever was. If the China-Russia relationship is not an alliance, then what is it, and what are its limits? In the Xi-Putin era, apprehension and ambition have transformed the ‘axis of convenience’ into an axis of necessity. But will ‘strategic partnership’ prove important or irrelevant to potential conflicts in Taiwan, Belarus or Ukraine? How much should be made of divergences of approach in Central Asia and the Arctic, where China’s rise leaves no stone unturned? To what extent will Russia continue to welcome the growth of China’s power — to the point of nuclear parity with the United States and, by extension with Russia itself?
- Topic:
- Foreign Policy, Treaties and Agreements, Bilateral Relations, Partnerships, Geopolitics, Alliance, and Emerging Powers
- Political Geography:
- Russia, China, Eurasia, Taiwan, Asia, Arctic, and United States of America
51. A New World Order, According to Beijing
- Author:
- Nadège Rolland
- Publication Date:
- 02-2021
- Content Type:
- Policy Brief
- Institution:
- International Centre for Defence and Security - ICDS
- Abstract:
- After seven decades of liberal order and three decades of American unipolarity, it may be difficult to imagine that the current rules-based international system, supported by liberal norms and values and organised around a set of multilateral institutions, could eventually give way to something radically different. But in Beijing, political and intellectual elites have engaged in intense discussions about building a new world order. This latest brief of China Awareness Series casts light on this discussion and outlines the emerging contours of vision and strategy pursued by China in building a new world order.
- Topic:
- Foreign Policy, Politics, International Affairs, Unipolarity, Emerging Powers, and International System
- Political Geography:
- China and Asia
52. China and the Persian Gulf in the Aftermath of a U.S. Withdrawal
- Author:
- Steven Simon
- Publication Date:
- 09-2021
- Content Type:
- Policy Brief
- Institution:
- Quincy Institute for Responsible Statecraft
- Abstract:
- • Given longstanding U.S. economic ties to the Arab Gulf states, the withdrawal of the U.S. military would not mean the United States is departing from the region. Even if it did signify that, however, China would be unlikely to fill the vacuum. A U.S. decision to maintain a military presence in the region should therefore not be based on fear of a strategic vacuum that China will fill to America’s disadvantage. • The United States should leverage China’s interest in stable cross–Gulf relations by working in tandem with Beijing to encourage dialogue and confidence-building measures. • The United States should monitor Chinese military deployments to the Indian Ocean and work with Gulf partners to set limits on China’s military use of air and naval bases. This would serve as a confidence-building measure and ensure that the Gulf does not become an arena for competition amid heightened Sino–American tensions.
- Topic:
- Foreign Policy, International Trade and Finance, Military Affairs, and Strategic Engagement
- Political Geography:
- China, Middle East, Persian Gulf, and United States of America
53. It’s complicated: Russia’s tricky relationship with China
- Author:
- Kadri Liik
- Publication Date:
- 12-2021
- Content Type:
- Policy Brief
- Institution:
- European Council on Foreign Relations (ECFR)
- Abstract:
- Western policymakers are now asking whether Russia and China will join forces in an alliance of autocracies, and whether they have a chance to manage this challenge by drawing Moscow away from Beijing. Neither of these outcomes is likely in the short term: Russia has many reasons to maintain a cordial relationship with China, while policymakers in Moscow view rapprochement with the West as impossible or too politically costly. The Kremlin’s thinking on China is an amalgam of quickly developing trends that will determine Russia’s position in a world shaped by the US-China rivalry. While the West does not have an opportunity to prompt a policy U-turn in Moscow that divides Russia and China, it could give Russia space to hedge against China in key areas such as advanced technology.
- Topic:
- Foreign Policy, Alliance, Ideology, Pragmatism, and Autocracy
- Political Geography:
- Russia, China, and Asia