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7281. Investors beware: Europe’s top firms are highly exposed to China

Author:
Ties Dams and Xiaoxue Martin
Publication Date:
04-2022
Content Type:
Special Report
Institution:
Clingendael Netherlands Institute of International Relations
Abstract:
Europe’s top firms are highly exposed to China, and therefore to China-related geopolitical risk. This risk is only set to increase in the coming years, as geopolitical tensions between China, the US and the EU are not expected to decrease. Moreover, case studies of LVMH, HSBC, ASML and BMW show that some of Europe’s biggest listed firms could and should offer investors more transparency on their risk-management strategies. Intelligence on China and geopolitical risk exposure is key for investors, and investors that get ahead of the curve may have the edge in the long term. This report is aimed at investors in Europe’s biggest listed firms. It argues that investors have a growing need for transparency amongst European biggest companies with regard to their strategies in dealing with China-related geopolitical risk. Even investors without direct interests in China are or will be affected by China-related geopolitical risk due to the various forms of exposure of companies in the European home market. This means that investors may be increasingly exposed to the risks linked to great power competition, without having the knowledge necessary to anticipate geopolitical changes. As geopolitical tensions between China, the US and the EU are not expected to decrease, investors would be wise to seek greater transparency about European companies’ exposure to the Chinese market – and indeed get ahead of the curve and gain a competitive advantage by investing in those firms that have forward-looking geopolitical strategies in place. This report aims to put this point on investors’ strategic agenda by making the following three points: Europe’s top firms are highly exposed to China. China-related geopolitical risk is spreading. Case studies suggest that Europe’s top firms may not be sufficiently transparent about geopolitical risk management.
Topic:
Geopolitics, Business, Investment, and Risk
Political Geography:
China and Europe

7282. The Russians are coming! The Russians are coming? Russia’s growing presence in Africa and its implication for European policy

Author:
Guido Lanfranchi and Kars de Bruijne
Publication Date:
06-2022
Content Type:
Special Report
Institution:
Clingendael Netherlands Institute of International Relations
Abstract:
The growth of Russia’s presence across Africa over the last decade has generated significant international concern, further exacerbated after Moscow’s invasion of Ukraine. Russia’s engagement can affect the interests and policies of the European Union (EU) and its member states (MS) in Africa. How should European policymakers understand these developments and respond to them? To answer this question, this report looks at Russia’s engagement in Africa, reaching three main conclusions. First, Moscow’s engagement with Africa has so far remained limited as compared to that of other global players, particularly in the economic domain. The current level of (media) attention devoted to Russia’s role in Africa is thus not supported by sufficient evidence of its actual engagement in the continent. At the same time, however, the growth of Russia’s presence is a real trend. Second, Russian actors are guided by a rather loose strategy when it comes to Africa. The Russian state has some interests that act as a broad framework. However, the actual engagement is carried out not only by state actors, but also by state-backed conglomerates and politically connected private businesses. These latter actors have their own specific interests, which are not always fully aligned with those of the Russian state. While state actors are often driven by geopolitical considerations, Russian companies are more interested in economic opportunities. Third, Russia’s engagement in African countries is significantly shaped by the different national contexts and by the interests of African governments. For instance, in a strong state like Ethiopia, Russia’s engagement takes place exclusively at the governmental level. By contrast, in Sudan and Mali (contexts with weaker state structures), other Russian actors like PMCs and private businesses are involved. Yet, in all three cases, Moscow’s presence tends to grow when relations between African governments and their international partners (especially in the West) deteriorate, often in the wake of authoritarian turns. This shows the opportunistic nature of Russia’s engagement, as well as the complex trade-offs faced by EU/MS governments when engaging with African governments. These findings have significant consequences for the policy response of the EU and its member states. This report suggests that: (i) Rather than trying to respond reactively to Russia’s presence, EU/MS should focus on strengthening their own relations with relevant African partners. Addressing some of the political and economic imbalances in the Europe-Africa partnership may be an effective way to strengthen such relations, and by doing so to reduce the chances of an increase in Russia’s influence. (ii) In countries where this preventive strategy is difficult to implement (e.g. when facing authoritarian governments), decisions on whether/how to engage should go beyond debates about Russia’s (potential) presence, and be based instead on a comprehensive understanding of EU/MS interests and norms. Partnerships with non-governmental actors (e.g. the private sector, traditional authorities) may allow EU/MS governments to remain engaged despite souring ties with the government. (iii) In countries where Russia’s presence is already established, evidence-based and context-specific assessments of this presence should inform the EU/MS policy response. This can allow EU/MS governments to avoid overreacting to Russia’s influence, while also not underestimating its dangers. (iv) To pursue their interests in an increasingly multipolar world, EU/MS governments should try to strengthen their leverage vis-à-vis Russia (as well as other actors). To do so, EU/MS policymakers should leverage more strategically the engagement of European businesses across Africa.
Topic:
Foreign Policy, European Union, and Engagement
Political Geography:
Africa, Russia, and Europe

7283. A new conflict management strategy for Syria: Creating a Safe, Calm and Neutral Environment

Author:
Malik al-Abdeh and Lars Hauch
Publication Date:
07-2022
Content Type:
Special Report
Institution:
Clingendael Netherlands Institute of International Relations
Abstract:
The search for peace in Syria faces a deep crisis. The battlefield has reached a stalemate, the Constitutional Committee never emerged from its cul-de-sac, and the UN’s ‘step-for-step’ approach suffers from flawed conceptual underpinnings as well as a lukewarm reception. Meanwhile, Syria remains divided into three areas that risk drifting further apart amid deteriorating humanitarian conditions. This reality on the ground should serve as a marker for recalibrating Western policy on Syria beyond the current focus on sanctions, accountability, and humanitarian aid. Western policy makers – mostly those from the US, European Union and Turkey – must base a much-needed new conflict management strategy on three ‘ground truths’: 1) the conflict is largely frozen and Syria is likely to remain divided into competing areas of control that are supported, or overseen, by external powers for the foreseeable future; 2) questions of national legitimacy and power sharing are not currently solvable and must be temporarily put on the back burner; c) diplomatic efforts to stabilise Syria and prevent partition are likely to be more effective when they focus on restoring practical connectivity between the different areas of control in terms of flows of people, goods and trade/aid/investment, as well as education. Such a strategy can take shape by operationalising the UN-sanctioned concept of a ‘safe, calm and neutral environment’ (SCNE) via a clear set of principles for engagement, a detailed stakeholder/interest mapping of the various conflict parties, and a focus on pragmatic measures to improve daily conditions. The objective of such a strategy is to enable a durable return to relatively normal life for Syrians still living in the country, and to create linkages between the country’s war-torn parts that can open windows of opportunity in the longer term for a political process reflecting the intention of UNSCR 2254.
Topic:
Conflict Resolution, Diplomacy, Syrian War, Peace, and Conflict Management
Political Geography:
Middle East and Syria

7284. On a Collision Course: Russia’s Dangerous Game in Ukraine

Author:
Al Jazeera Center for Studies
Publication Date:
02-2022
Content Type:
Policy Brief
Institution:
Al Jazeera Center for Studies
Abstract:
While Russia demands a written guarantee that Ukraine will not be offered NATO membership, Western countries are warning it of dire consequences if it launches a war on Ukraine. The balance of power between the two parties, Russia and the West, may remain on the verge of collapse, leaving Ukraine unstable and Ukrainian leadership unable to control the entire country.
Topic:
NATO, Armed Conflict, and Russia-Ukraine War
Political Geography:
Russia, Ukraine, and Eastern Europe

7285. The End of the Post-Cold War Era: Russia's Adventure in Ukraine Reshapes the Entire World Order

Author:
Al Jazeera Center for Studies
Publication Date:
03-2022
Content Type:
Policy Brief
Institution:
Al Jazeera Center for Studies
Abstract:
Whether Russian adventure in Ukraine proves to be a success or a failure, the integration of Russia into Europe has come to a halt. Europe will face division once again, albeit along lines that differ greatly from those of the Cold War.
Topic:
NATO, Integration, Post Cold War, and Russia-Ukraine War
Political Geography:
Russia, Ukraine, and Eastern Europe

7286. War in Ukraine enters its second month: serious implications and far-reaching changes

Author:
Al Jazeera Center for Studies
Publication Date:
03-2022
Content Type:
Policy Brief
Institution:
Al Jazeera Center for Studies
Abstract:
The Russian invasion of Ukraine in its second month witnessed several developments, including the failure of the Russian forces to achieve a quick and decisive military victory and the Russian leadership's reduction of its primary objectives.
Topic:
Military Affairs, Armed Conflict, and Russia-Ukraine War
Political Geography:
Russia, Ukraine, and Eastern Europe

7287. After the 25 July constitutional referendum: Codification of autocratic rule heightens Tunisians’ fears of the future

Author:
Al Jazeera Center for Studies
Publication Date:
08-2022
Content Type:
Policy Brief
Institution:
Al Jazeera Center for Studies
Abstract:
While Saied initially had popular momentum behind his programme—he came into office in 2019 with a whopping 72 percent of the vote—his popularity has eroded sharply over the last year as many Tunisians have lost faith in his ability to address economic woes, improve living conditions and fight corruption.
Topic:
Corruption, Constitution, Referendum, and Autocracy
Political Geography:
North Africa and Tunisia

7288. 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

7289. Conflict in Two Theaters? European Misperceptions about the Asia-Pacific

Author:
Elisabeth Suh
Publication Date:
09-2022
Content Type:
Policy Brief
Institution:
German Council on Foreign Relations (DGAP)
Abstract:
Russia’s 2022 invasion of Ukraine is being heralded as a moment of strategic clarity for Europe about the return of revisionist power politics. While the immediate neighborhood remains the main concern, European strategists are worried about a second source of risk: violent revisionism in the Asia-Pacific. The United States has already shifted its center of strategic gravity to the Pacific, but conflicts brewing there also require a European response.
Topic:
Security, Defense Policy, Political stability, Conflict, Violence, and Russia-Ukraine War
Political Geography:
Europe, Ukraine, and Asia-Pacific

7290. What If the EU Did Not Share Data to Protect Its Critical Infrastructure?

Author:
Päivi Mattila-Wiro and Isto Mattila
Publication Date:
09-2022
Content Type:
Working Paper
Institution:
German Council on Foreign Relations (DGAP)
Abstract:
This scenario shows what could happen if the EU fails to establish an information exchange environment among its critical infrastructure (CI) entities. In 2030, only a few services related to the EU’s CI remain local and confined to a single domain. Most are heavily interconnected – and thus increasingly subject to hybrid attacks. Because the EU still provides no common guidelines to record and share information about such attacks, CI operators cannot analyze threats, recognize EU-wide patterns, or identify adversaries. Two EU directives from the early 2020s recognized this gap but did not provide the tools to address it.
Topic:
Science and Technology, Infrastructure, European Union, and Data
Political Geography:
Europe