Search

Begin New Search Topic Diplomacy Political Geography North America Publishing Institution Council on Foreign Relations

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

Author:
Council on Foreign Relations
Publication Date:
08-2017
Content Type:
Working Paper
Institution:
Council on Foreign Relations
Abstract:
While relations between the United States and Russia have deteriorated in recent years, making it exceedingly difficult for both countries to collaborate in managing a variety of common concerns, emerging challenges to global order make such cooperation increasingly imperative. To explore where U.S.-Russia cooperation is desirable and, in some places, even necessary, the Center for Preventive Action at the Council on Foreign Relations convened an international group of twenty-three experts at the Tufts University European Center in Talloires, France, on June 9 and 10, 2017, for the workshop “Managing Global Disorder: Prospects for U.S.-Russian Cooperation.”
Topic:
NATO, Diplomacy, International Cooperation, and Military Strategy
Political Geography:
Russia, United States, Europe, and North America

2. 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

3. A Sharper Choice on North Korea: Engaging China for a Stable Northeast Asia

Author:
Mike Mullen, Sam Nunn, and 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, and Strategic Interests
Political Geography:
China, Asia, North Korea, North America, and United States of America

4. Working With a Rising India

Author:
Charles R. Kayne, Joseph S. Nye Jr., and 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, and Economic Growth
Political Geography:
India, Asia, North America, and United States of America

5. Generating Momentum for a New Era in U.S.-Turkey Relations

Author:
Elizabeth Sherwood-Randall and Stephen Cook
Publication Date:
06-2006
Content Type:
Working Paper
Institution:
Council on Foreign Relations
Abstract:
The growing schism between the West and the Islamic world is one of the primary challenges confronting American foreign and defense policymakers. As a consequence, the relationship between the United States and Turkey—a Western-oriented, democratizing Muslim country—is strategically more important than ever. Turkey has the potential to be an invaluable partner as Washington endeavors to chart an effective course in its relations with the Muslim world. However, to achieve this level of cooperation, U.S.-Turkey relations must be repaired and modernized.
Topic:
International Relations, Foreign Policy, and Diplomacy
Political Geography:
United States, America, Washington, Turkey, and North America

6. U.S.-India Nuclear Cooperation

Author:
Michael Levi and Charles Ferguson
Publication Date:
06-2006
Content Type:
Working Paper
Institution:
Council on Foreign Relations
Abstract:
The United States has long sought to prevent the spread of nuclear weapons and to build a relationship with India, a rising power but a nuclear pariah since it first exploded an atomic bomb in 1974. In announcing a sweeping negotiated framework for nuclear cooperation with India on July 18, 2005, followed by an agreement on details on March 2, 2006, the Bush administration has stirred deep passions and put Congress in the seemingly impossible bind of choosing between approving the deal and damaging nuclear nonproliferation, or rejecting the deal and thereby setting back an important strategic relationship. Yet patience and a few simple fixes would address major proliferation concerns while ultimately strengthening the strategic partnership—provided Congress and the administration work together.
Topic:
International Relations and Diplomacy
Political Geography:
United States, India, Asia, and North America