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Begin New Search Topic International Trade and Finance Political Geography United States Content Type Working Paper Publishing Institution Council on Foreign Relations

1. Managing Global Disorder: Prospects for U.S.-China Cooperation

Author:
Council on Foreign Relations
Publication Date:
04-2018
Content Type:
Working Paper
Institution:
Council on Foreign Relations
Abstract:
Emerging challenges to international order require cooperation between the United States and China, two countries that share a common interest in preventing the world from becoming more dangerous and disorderly. U.S.-China relations are becoming more strained and antagonistic, however, and the prospects for cooperation appear to be receding. To explore whether there are still grounds for cooperation on issues of common concern between the two countries, in March 2018 the Center for Preventive Action (CPA) at the Council on Foreign Relations convened a group of fifteen experts from the United States and China for the workshop “Managing Global Disorder: Prospects for U.S.-China Cooperation.” CPA partnered with Peking University’s School of International Studies in Beijing for the workshop and also met with experts at the China Institutes of Contemporary International Relations in Beijing and the Shanghai Institutes for International Studies in Shanghai. During the workshop, President Donald J. Trump announced plans to impose about $60 billion in new tariffs on Chinese imports. While trade was a major topic of discussion, it was by no means the only area discussed. Workshop participants assessed conflicting views of the sources of global disorder and examined areas of global governance such as international trade, development, the environment, and the future of various multilateral institutions. They also discussed the most pressing security challenges in East and Southwest Asia. Participants highlighted the need for a greater understanding between the United States and China on the evolving international order. No major transnational problems will be solved without some cooperation between the two powers. It is therefore imperative that the two countries avoid a further deterioration of the relationship and instead identify areas of potential cooperation.
Topic:
International Cooperation, International Trade and Finance, Tariffs, and Social Order
Political Geography:
United States, China, Asia, and North America

2. The U.S.-Southeast Asia Relationship: Responding to China’s Rise

Author:
Council on Foreign Relations
Publication Date:
05-2018
Content Type:
Working Paper
Institution:
Council on Foreign Relations
Abstract:
Although the Barack Obama administration rhetorically made Southeast Asia a centerpiece of its “rebalance to Asia” strategy, the administration still largely focused on the Middle East and Europe, and Southeast Asia remained a low U.S. policy priority. The Obama administration did try to boost U.S. economic ties with Southeast Asia in 2016 by forging the Trans-Pacific Partnership (TPP), but that trade deal was broadly unpopular in the United States. The following year, the Donald J. Trump administration ended U.S. participation in the TPP, and it also suggested launching punitive economic measures against Southeast Asian states currently running trade surpluses with the United States. Many Southeast Asian leaders now worry that Washington has no clear security or economic strategy for the region, other than applying pressure on Beijing to respect freedom of navigation in the South China Sea. In this perceived void of U.S. leadership and strategy, workshop participants assessed how Southeast Asia might change as China becomes an increasingly dominant regional security and economic actor. They also discussed the future of U.S. strategic and economic relationships with important partners in the region, including Indonesia, the Philippines, Singapore, Thailand, and Vietnam. Participants further considered how China might use its growing leverage in Southeast Asia, and whether Beijing’s tactics could backfire. Finally, several workshop participants posited that the United States, China, and Southeast Asian states could cooperate on at least some nontraditional security issues, such as combating piracy and terrorism.
Topic:
Diplomacy, International Cooperation, International Trade and Finance, and Economic Cooperation
Political Geography:
United States, China, Asia, and Southeast Asia

3. What the Trump Administration’s NAFTA Priorities Get Right (and Wrong) About Digital Trade

Author:
Anupam Chander
Publication Date:
09-2017
Content Type:
Working Paper
Institution:
Council on Foreign Relations
Abstract:
Digital commerce and trade are increasingly important to the global economy. Seven of the ten most valuable firms today are technology companies (Apple, Alphabet, Microsoft, Amazon, Facebook, Alibaba, and Tencent). Data, according to some analysts, is the new oil. A major study concluded that the internet has powered some one-fifth of recent economic growth within the leading economies. Jobs are increasingly dependent on digitization; digital skills are needed for all but two job categories [PDF] in the United States: dishwashing and food cooking. Just as national economies are becoming more digitized, barriers to digital trade are being erected. These barriers limit opportunities for consumers to access global providers and for small- and medium-sized enterprises to reach new customers. It is not only technology firms that suffer; all enterprises with international operations need cross-border data flows to process, analyze, and transfer data about employees, customers, and operations. Global supply chains depend on the flow of goods, data, and services across borders. Moreover, commitment to the free flow of information across borders is essential to freedom of expression. Digital trade is about more than access to markets; it is about access to information. The renegotiation of the North American Free Trade Agreement (NAFTA) is an excellent opportunity to set the gold standard for digital free trade. Despite public pronouncements about the harm free trade causes to the steel and automobile industries, the Donald J. Trump administration, to its credit, recognizes the importance of removing digital trade barriers in its stated objectives for the NAFTA renegotiation [PDF]. In its negotiations with Canada and Mexico, the Trump administration should seek rules limiting data localization, promote a balanced approach to intellectual property protections, support cross-border privacy rules, and remove barriers that hinder the trade of services.
Topic:
International Cooperation, International Trade and Finance, Digital Economy, and NAFTA
Political Geography:
United States, Canada, North America, and Mexico

4. Writing New Rules for the U.S.-China Investment Relationship

Author:
Jennifer M. Harris
Publication Date:
12-2017
Content Type:
Working Paper
Institution:
Council on Foreign Relations
Abstract:
Chinese outbound investment is on the rise, and much of it is finding its way into the United States. Be- tween 2010 and 2015, China’s foreign direct investment (FDI) inflows to the United States grew by an average of 32 percent annually.1 Within the past two years alone, Chinese foreign investment inflows to the United States increased four-fold, and available data suggests 2017 will see the second highest annual investment on record, after 2016.2 This is not a two-way street: the United States and other foreign investors do not enjoy similar open market access in China. China maintains a dizzying assortment of formal and informal barriers to for- eign investment—from outright restrictions and quotas to mandatory joint ventures, forced localization measures, and domestic licensing regimes. Despite years of negotiations, these barriers are, if anything, growing more cumbersome in many sectors. U.S. firms paint a darkening picture of the business climate they face in China. U.S. FDI in China has slowed considerably in recent years: after growing roughly 180 percent from 2002 to 2007 (albeit from a low baseline), U.S. FDI flows into China have declined since 2012.3 The one-way surge of Chinese investment into the United States comes against a backdrop of strategic mistrust between Washington and Beijing. Ongoing accusations of state-sponsored cyber predation of U.S. firms, Beijing’s increasing aggressiveness over territorial disputes, its systematic efforts to under- mine the U.S. alliance system in Asia, and mounting tensions over North Korea all contribute to a dark- ening mood in the U.S.-China relationship. And, like so much involving China, this investment is simply different. Rarely, if ever, has the United States seen an increase in investment of this magnitude—espe- cially from a non-ally and especially from one where the lines between state ownership and private own- ership are so inherently blurred. For all the concern surrounding Japanese investment in the United States in the 1980s—coming as it did amid fierce economic competition—those debates ultimately re- mained under the umbrella of the U.S.-Japan military alliance. All of this raises questions about whether the United States needs to tighten its stance on Chinese in- bound investment; proposals to that effect have bipartisan support in the Congress. The Donald J. Trump administration has signaled its desire for a tougher approach in its economic dealings with China, which U.S. businesses seem to welcome. One foundation for such an approach is the principle of reciprocity. Roughly two dozen sectors in China—construction, mining, banking, insurance, and so on—remain effectively off-limits to American investment, because the Chinese government protects its domestic companies through regulations and financial subsidies. Even in sectors that technically allow foreign investment, discriminatory industrial policies tilt the playing field in favor of Chinese firms. Until this changes, Washington would be justi- fied—even obligated—to limit Chinese investment in the U.S. market. However, U.S. policymakers do not have a consensus on what a policy of reciprocity would entail, and different policy interpretations could spell quite different economic and foreign policy consequences for the United States. The United States should aim for a version of reciprocity that allows it the flexibility to maximize pressure on the broad range of Chinese industrial policy concerns while leaving a clear route to negotiations. The United States should also encourage European and other Western countries, many of which are seeing similar increases in Chinese investment, to adopt this new approach.
Topic:
Diplomacy, International Cooperation, International Trade and Finance, and Foreign Direct Investment
Political Geography:
United States, China, Asia, and North America

5. North America Time for a New Focus

Author:
Shannon K. O'Neil
Publication Date:
10-2014
Content Type:
Working Paper
Institution:
Council on Foreign Relations
Abstract:
North America was once called the New World. The people, their ideas, and the resources of the continent shaped the histories of the Old World—East and West. Today, North America is home to almost five hundred million people living in three vibrant democracies. If the three North American countries deepen their integration and cooperation, they have the potential to again shape world affairs for gen-erations to come.
Topic:
Security, Economics, Energy Policy, and International Trade and Finance
Political Geography:
United States and America

6. Freeing the Global Market: How to Boost the Economy by Curbing Regulatory Distortions

Author:
Shanker A. Singham
Publication Date:
10-2012
Content Type:
Working Paper
Institution:
Council on Foreign Relations
Abstract:
The U.S. economy faces major challenges competing internationally. One of the most worrisome is the growing use in China and other advanced developing countries of anticompetitive market distortions (ACMDs)—including regulatory protection that privileges specific companies—which put foreign competitors at a disadvantage. ACMDs are government actions that give certain business interests artificial competitive advantages over their rivals, be they foreign or domestic, to the detriment of consumer welfare. These market distortions are especially damaging to the industries in which the United States enjoys the greatest comparative advantages, but they are also harmful to the long-term prosperity of developing economies and cost the global economy trillions of dollars. To combat ACMDs, the conventional trade policy approach of focusing on the The U.S. economy faces major challenges competing internationally. One of the most worrisome is the growing use in China and other advanced developing countries of anticompetitive market distortions (ACMDs)—including regulatory protection that privileges specific companies—which put foreign competitors at a disadvantage.1 ACMDs are government actions that give certain business interests artificial competitive advantages over their rivals, be they foreign or domestic, to the detriment of consumer welfare. These market distortions are especially damaging to the industries in which the United States enjoys the greatest comparative advantages, but they are also harmful to the long-term prosperity of developing economies and cost the global economy trillions of dollars.
Topic:
Economics, Emerging Markets, Globalization, International Trade and Finance, and Markets
Political Geography:
Russia, United States, China, India, and Brazil

7. ASEAN's Future and Asian Integration

Author:
Joshua Kurlantzick
Publication Date:
11-2012
Content Type:
Working Paper
Institution:
Council on Foreign Relations
Abstract:
In a region largely bereft of regional organizations and long divided by the Cold War, the Association of Southeast Asian Nations (ASEAN) has been the most significant multilateral group for the past forty-five years. Since the end of the Cold War, ASEAN has grown increasingly influential. While much of the West and most emerging markets continue to suffer because of the 2008 global recession, the leading ASEAN economies have recovered and are thriving. Perhaps most important, ASEAN has helped prevent interstate conflicts in Southeast Asia, despite several brewing territorial disputes in the region.
Topic:
Cold War, Development, Economics, Emerging Markets, and International Trade and Finance
Political Geography:
United States and Asia

8. U.S. Trade and Investment Policy

Author:
Matthew J. Slaughter, Edward Alden, Andrew H. Card, and Thomas A. Daschle
Publication Date:
09-2011
Content Type:
Working Paper
Institution:
Council on Foreign Relations
Abstract:
The growth of global trade and investment has brought significant benefits to the United States and to the rest of the world. Freer trade and investment, facilitated by rules the United States led in negotiating and implementing, have alleviated poverty, raised average standards of living, and discouraged conflict.
Topic:
Economics, International Trade and Finance, Markets, Labor Issues, and Financial Crisis
Political Geography:
United States

9. Partners in Preventive Action: The United States and International Institutions

Author:
Paul B. Stares and Micah Zenko
Publication Date:
09-2011
Content Type:
Working Paper
Institution:
Council on Foreign Relations
Abstract:
With the U.S. military overstretched after a decade of continuous combat operations and Washington facing acute fiscal pressures, the strategic logic of preventive action to reduce the number of foreign crises and conflicts that could embroil the United States in burdensome new commitments has never been more compelling.
Topic:
Globalization, International Organization, International Trade and Finance, Peace Studies, and United Nations
Political Geography:
United States, Europe, Washington, and Southeast Asia

10. Managing Instability on China's Periphery

Author:
Daniel Markey, Paul B. Stares, Evan A. Feigenbaum, Scott A. Snyder, John W. Vessey, and Joshua Kurlantzick
Publication Date:
08-2011
Content Type:
Working Paper
Institution:
Council on Foreign Relations
Abstract:
If past experience is any guide, the United States and China will find themselves embroiled in a serious crisis at some point in the future. Such crises have occurred with some regularity in recent years, and often with little or no warning. Relatively recent examples include the Taiwan Strait crisis of 1996, the accidental bombing of the Chinese embassy in Belgrade in 1999, and the EP-3 reconnaissance plane incident in 2001, as well as several minor naval skirmishes since then. The ensuing tension has typically dissipated without major or lasting harm to U.S.-China relations. With China's rise as a global power, however, the next major crisis is likely to be freighted with greater significance for the relationship than in previous instances. Policymakers in both Washington and Beijing, not to mention their respective publics, have become more sensitive to each other's moves and intentions as the balance of power has shifted in recent years. As anxieties and uncertainties have grown, the level of mutual trust has inevitably diminished. How the two countries manage a future crisis or string of crises, therefore, could have profound and prolonged consequences for the U.S.-China relationship. Given the importance of this relationship to not only the future evolution of the Asia-Pacific region but also to the management of a host of international challenges, the stakes could not be higher.
Topic:
Conflict Prevention, Foreign Policy, Arms Control and Proliferation, Diplomacy, and International Trade and Finance
Political Geography:
United States, China, Israel, and Asia