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  • Author: Scott A. Snyder, Geun Lee, You Young Kim, Jiyoon Kim
  • Publication Date: 01-2018
  • Content Type: Working Paper
  • Institution: Council on Foreign Relations
  • Abstract: Despite becoming influential on the world scene, South Korea remains a relatively weak country surrounded by larger, more powerful neigh- bors. This contrast between its global rank as a top-twenty economy and its regional status as the weakest country in Northeast Asia (with the exception of North Korea) poses a paradox for South Korean for- eign policy strategists. Despite successes addressing nontraditional security challenges in areas such as international development, global health, and UN peacekeeping, South Korea is limited in its capacity to act on regional security threats. South Korea has historically been a victim of geopolitical rivalries among contenders for regional hegemony in East Asia. But the coun- try’s rise in influence provides a glimmer of hope that it can break from its historical role by using its expanded capabilities as leverage to shape its strategic environment. The pressing dilemma for South Korean strategic thinkers is how to do so. As the regional security environment becomes more tense, South Korea’s strategic options are characterized by constraint, given potentially conflicting great-power rivalries and Pyongyang’s efforts to pursue asymmetric nuclear or cyber capabilities at Seoul’s expense. South Korea’s relative weakness puts a premium on its ability to achieve the internal political unity necessary to maximize its influence in foreign policy. Students of Korean history will recall that domestic factionalism among political elites was a chronic factor that hamstrung Korea’s dynastic leadership and contributed to its weakness in dealing with outside forces.
  • Topic: Foreign Policy, Diplomacy, International Cooperation, Regional Cooperation, Military Strategy
  • Political Geography: China, Asia, South Korea, North Korea
  • 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, Social Order
  • Political Geography: United States, China, Asia, North America
  • 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, Economic Cooperation
  • Political Geography: United States, China, Asia, Southeast Asia
  • Author: Heung-kyu Kim
  • Publication Date: 11-2017
  • Content Type: Working Paper
  • Institution: Council on Foreign Relations
  • Abstract: As the Republic of Korea faces an increasing threat from North Korea, evolving U.S.-China relations are becoming important to Seoul’s strategy for dealing with Pyongyang. The United States and China are competitors, but they also seek cooperation on a range of global issues. And although South Korea seeks to have good relations with both great powers, it is increasingly being pushed to take sides in the ongoing U.S.-China competition. As the U.S.-China relationship becomes more complex, South Korea needs to carefully evaluate its policy toward China in order to find the best ways to ensure Chinese cooperation on the North Korean issue, particularly taking into account China’s evolving view of North Korea. Under the leadership of Xi Jinping, China is profoundly changing its foreign policy, including its relations with the United States and the two Koreas. With more confidence in its own diplomatic, military, and economic capacity to protect its national interests, China under Xi’s leadership has begun to regard the entire Korean Peninsula as part of its sphere of influence.
  • Topic: Diplomacy, International Cooperation, Military Strategy, Denuclearization
  • Political Geography: United States, China, Asia, South Korea, North Korea
  • 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, Foreign Direct Investment
  • Political Geography: United States, China, Asia, North America
  • Author: Mike Mullen, Sam Nunn, Adam Mount
  • Publication Date: 09-2016
  • Content Type: Special Report
  • Institution: Council on Foreign Relations
  • Abstract: A new Council on Foreign Relations (CFR) Independent Task Force report, A Sharper Choice on North Korea: Engaging China for a Stable Northeast Asia, finds that the United States’ policy of “strategic patience” with North Korea will neither halt that country’s recurring and dangerous cycle of provocation nor ensure the stability of Northeast Asia in the future. To the contrary, the Task Force warns, “If allowed to continue, current trends will predictably, progressively, and gravely threaten U.S. national security interests and those of its allies.” Asserting that “China’s policy toward the DPRK [Democratic People’s Republic of Korea] will critically affect the fate of the region,” the Task Force urges U.S. officials to encourage China to work with the United States, Japan and South Korea to establish a nonnuclear and unified Korean Peninsula. “Encouraging a transformation of China’s policy toward North Korea should be the next administration’s top priority in its relations with China,” says the report. “If China, the United States, and U.S. allies can work together to pressure North Korea to abandon its nuclear program and mitigate its threatening military posture,” the Task Force contends, “a stable, prosperous Northeast Asia led by China and U.S. allies can emerge.” To the extent that China declines to cooperate and North Korea continues to refuse to negotiate, however, the report finds that United States will have no choice but to work with Japan and Korea to “consider more assertive military and political actions, including those that directly threaten the existence of the [North Korean] regime and its nuclear and missile capabilities.” The Task Force proposes that the United States take steps to sharpen the consequences for North Korea, by imposing escalating costs on continued defiance and offering incentives for cooperation.
  • Topic: Diplomacy, International Cooperation, Regional Cooperation, Military Strategy, Peace, Strategic Interests
  • Political Geography: China, Asia, North Korea, North America, United States of America
  • Author: Charles R. Kayne, Joseph S. Nye Jr., Alyssa Ayres
  • Publication Date: 11-2015
  • Content Type: Special Report
  • Institution: Council on Foreign Relations
  • Abstract: “A rising India offers one of the most substantial opportunities to advance American national interests over the next two decades,” asserts a new Independent Task Force report sponsored by the Council on Foreign Relations (CFR), Working With a Rising India: A Joint Venture for the New Century. Over the past ten years, India, the world's largest democracy, has lifted more than 130 million people out of poverty. The country has rebounded from a recent economic growth slump, surpassing China this year to become the world's fastest-growing major economy. “If India can maintain its current growth rate, let alone attain sustained double digits, it has the potential over the next two to three decades to follow China on the path to becoming another $10 trillion economy,” notes the Task Force. With Indian Prime Minister Narendra Modi's prioritization of economic growth and foreign policy revitalization, the country now has a window of opportunity to either make the necessary reforms or risk being left behind. “[India] will have to decide whether it wants to become a major part of global trade flows and deeply integrated into global supply chains. Doing so would boost India's efforts to grow its manufacturing sector and its economy; choosing not to will make that ambition harder to achieve.” Because India does not seek an alliance with the United States and closely guards its policy independence, U.S.-India relations will not resemble those Washington has with its conventional allies. For that reason, the Task Force recommends that “U.S. policymakers [should] explicitly emphasize a ‘joint-venture’ model for U.S.-India relations, focused on a slate of shared pursuits on which interests converge—and with clear mechanisms for coordinating and managing the known and expected disagreements.” The bipartisan Task Force is chaired by Charles R. Kaye, co-chief executive officer of the private equity firm Warburg Pincus and former chairman of the U.S.-India Business Council, and Joseph S. Nye Jr., distinguished service professor and former dean of the Harvard Kennedy School. Directed by CFR Senior Fellow for India, Pakistan, and South Asia Alyssa Ayres, the Task Force is composed of sixteen prominent experts from government, academic, nonprofit, and other sectors.
  • Topic: Diplomacy, International Cooperation, International Trade and Finance, Bilateral Relations, Democracy, Economic Growth
  • Political Geography: India, Asia, North America, United States of America