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Begin New Search Topic International Trade and Finance Political Geography China Content Type Journal Article Publication Year within 25 Years

1. Impact of economic sanctions on net commodity-producing and net commodity-consuming countries

Author:
Sergio R. Vale and Eduardo Viola
Publication Date:
01-2023
Content Type:
Journal Article
Journal:
Revista Brasileira de Política Internacional (RBPI)
Institution:
Instituto Brasileiro de Relações Internacionais (IBRI)
Abstract:
The war in Ukraine has had a marked economic impact. However, since Russia is a net producer of important commodities, the impact of sanctions on its economy was less than expected. But what would happen if there was a war involving a country that was a net importer of commodities? In the case of a possible China-US conflict over Taiwan, the impact on the world economy would be different, with a deeper recession around the world, but the impact on the Brazilian economy would still be positive on account of the possibility that would remain of agricultural exports to China.
Topic:
Agriculture, Economics, International Trade and Finance, Sanctions, Commodities, and Exports
Political Geography:
Russia, China, Europe, Ukraine, Taiwan, Asia, North America, and United States of America

2. Beyond Geopolitics: A Geoeconomic Perspective of China-Iran Belt and Road Initiative Relations

Author:
Seyedashkan Madani
Publication Date:
06-2022
Content Type:
Journal Article
Journal:
Uluslararasi Iliskiler
Institution:
International Relations Council of Turkey (UİK-IRCT)
Abstract:
The Belt and Road Initiative (BRI) is the largest regional development project in the history of global development. It is estimated that Chinese companies will invest up to $1.2 trillion in infrastructure development in Asia and elsewhere in the coming years. However, there are many obstacles to the successful implementation of this initiative in the host countries, including geographical factors, local culture, geopolitical contestation, public attitudes, institutional capacity, and governance quality. These challenges can substantially diminish the coherence of the BRI and prevent its effective implementation. This study aims to develop an analytical framework for exploring the risks associated with and challenges of executing BRI projects in Iran. To this end, all risks are categorized into three broad groups: operational, financial, and geopolitical. The results show that Iran generally faces many internal and external challenges in attracting foreign investment. The critical question is: Why is Iran receiving substantial investment from Chinese companies despite its unfavorable business environment? A geoeconomic approach is used to develop a theoretical framework to explain Iran-China BRI relations. In this context, Iran’s geoeconomic significance is the main factor encouraging the flow of Chinese investment into the country. The BRI comprises mostly functional cooperation between China and countries along the Silk Road based on a specific geospatial environment. Iran’s geospatial environment encourages Chinese investments in infrastructure, which is the main content of functional cooperation.
Topic:
Development, International Trade and Finance, Infrastructure, and Belt and Road Initiative (BRI)
Political Geography:
China and Asia

3. China's Geo-Economic Interest in Africa: A Short Overview

Author:
Jajati K. Pattnaik and Chandan K. Panda
Publication Date:
06-2022
Content Type:
Journal Article
Journal:
Journal of Liberty and International Affairs
Institution:
Institute for Research and European Studies (IRES)
Abstract:
The article examines China’s geo-economic interest in Africa. China intends to exercise its leverage over both coastal frontiers for trade and defense and its hinterland for rich mineral, metal, and fossil deposits. Furthermore, the debt trap seems to be one of the methods through which China intended to bargain with Africa to bag as much advantage as it could gain. The question that emerges from this critical engagement with China-Africa relations is to look into how the reality of Africa’s narrative of development is projected both from outside and within and the contradiction embodied in that projection. China used the narrative of development to set its feet on African soil. This paper discusses China’s penetration into Africa by offering interest-free loans and its gradual emergence as a neocolonial power through expanding its network. The method used in the study to establish China’s monopoly and interfering streak in African affairs through BRI is the analysis of available data based on which the objectives and the conclusions are drawn.
Topic:
International Trade and Finance, Infrastructure, Hegemony, Belt and Road Initiative (BRI), and Strategic Interests
Political Geography:
China and Asia

4. ‘Community of Common Destiny’ as Post-Western Regionalism: Rethinking China’s Belt and Road Initiative from a Confucian Perspective

Author:
Raoul Bunskoek and Chih-yu Shih
Publication Date:
06-2021
Content Type:
Journal Article
Journal:
Uluslararasi Iliskiler
Institution:
International Relations Council of Turkey (UİK-IRCT)
Abstract:
Conventional explanations of China’s Belt and Road Initiative (BRI) focus on how the BRI will be in China’s interest, how it will strengthen China’s geopolitical position, or a combination of the two. We argue that such views are limited because they merely interpret the BRI through ‘Western’ IR lenses. This paper ‘re-worlds’ China by using the BRI as a case study to illustrate how in the discursive field(s) of China’s elite, China as a Westphalian nation state, and China as amorphous Tianxia under Confucianism coexist, struggle for recognition, and are interrelated. Consequently, we argue that China, because of the economic miracle it created domestically over the last few decades, is now convinced of its own ‘moral superiority’, and ready to export its self-perceived ‘benevolence’ abroad. In this light, we read the BRI to be undergirded by a combination of ‘Western’ and Confucian values, suggesting a post-Western/post-Chinese form of regionalism.
Topic:
International Trade and Finance, Infrastructure, Hegemony, Belt and Road Initiative (BRI), and Regionalism
Political Geography:
China and Asia

5. The Clash of Japan’s FOIP and China’s BRI?

Author:
Daisuke Akimoto
Publication Date:
06-2021
Content Type:
Journal Article
Journal:
The Rest: Journal of Politics and Development
Institution:
Centre for Strategic Research and Analysis (CESRAN)
Abstract:
Since the late 2010s, the concept of the “Indo-Pacific” has been becoming increasingly significant in the international political arena. In August 2016, Japanese Prime Minister Shinzo Abe proposed a policy of “Free and Open Indo- Pacific” (FOIP) as Japan’s new diplomatic vision at the Tokyo International Conference on African Development (TICAD) VI held in Kenya. The FOIP strategy was supported by the Donald Trump administration followed by the renaming of the United States Indo-Pacific Command. However, China has viewed the FOIP as a containment strategy against the Chinese Belt and Road Initiative (BRI). The FOIP vision is unclear for general observers, and it might cause a security dilemma with the Chinese BRI. Is it possible for the FOIP vision to coexist with China’s BRI, or are these two strategic visions destined to clash with each other? In an attempt to answer these questions, the article aims to provide multiple perspectives of the FOIP concept by applying international relations (IR) theory. This article warns that the FOIP and the BRI are likely to bring about diplomatic tension that could be escalated into a military skirmish over the territorial dispute. In order to avoid the possible military clash, it finally seeks to explore possible future pathways of the peaceful coexistence of the two visions in the Indo-Pacific region.
Topic:
International Trade and Finance, Infrastructure, Belt and Road Initiative (BRI), and Rivalry
Political Geography:
Japan, China, and Asia

6. Revisiting the Us-china Trade War: A Strategic Assessment

Author:
Zaeem Hassan Mehmood
Publication Date:
01-2021
Content Type:
Journal Article
Journal:
AUSTRAL: Brazilian Journal of Strategy International Relations
Institution:
Postgraduate Program in International Strategic Studies, Universidade Federal do Rio Grande do Sul
Abstract:
The relations among United States of America and People’s Republic of China have historically survived several bouts and rounds however the approach employed by the Trump Administration for a program involving reprisal hefty tariff-trade war against China has given a new face to the bilateral relations between the two states. The paper demonstrates that domestic and international agents played a vital role in initiating and nurturing the trade clash between Washington and Beijing since 2018 to date. The aim of the study is to ascertain that how the political climate and past pursuits of one country conditions policy outcomes in another, and how domestic political pressures on politician’s conditions their relations with foreign counterparts. The paradigm of rational choice theory is adopted to provide a conceptual understanding to the triggering of the trade war between the economic giants.
Topic:
Cold War, International Trade and Finance, Hegemony, Conflict, Trade Wars, and Rivalry
Political Geography:
China, Asia, North America, and United States of America

7. Revitalization of Maritime Silk Road Based on the Security Implications and Cooperation

Author:
Hamsu Abdul Gani
Publication Date:
07-2021
Content Type:
Journal Article
Journal:
AUSTRAL: Brazilian Journal of Strategy International Relations
Institution:
Postgraduate Program in International Strategic Studies, Universidade Federal do Rio Grande do Sul
Abstract:
The revitalization of the Silk Road as a trade route, cultural exchange, religion, science and civilization based on the “Maritime Silk Road” (MSR) is the focus of strategic studies and international relations. ASEAN countries, including Indonesia in the MSR route and the contestation of the United States and China who are fighting for dominance in the Indo-Pacific region, face challenges and opportunities. The results of this research, which uses a normative approach, show that the revitalization of the MSR may give positive impacts to China’s foreign affairs for the good interaction and communication among people by economic trade.
Topic:
Globalization, International Trade and Finance, Maritime, and Silk Road
Political Geography:
China and Asia

8. The China-Pakistan Economic Corridor

Author:
Ali Haider Saleem and Arhama Siddiqa
Publication Date:
08-2021
Content Type:
Journal Article
Journal:
Baku Dialogues
Institution:
ADA University
Abstract:
The term Silk Road is used by scholars to describe a network of trading posts and markets linking East Asia to the Mediterranean. In terms of geographical context, the editors of Baku Dialogues define the region as the “geographic space looking west past Anatolia to the warm seas beyond; north across the Caspian towards the Great Plain and the Great Steppe; east to the peaks of the Altai and the arid sands of the Taklamakan; and south towards the Hindu Kush and the Indus valley, looping down around in the direc­tion of the Persian Gulf and across the Fertile Crescent.” States falling under this parasol include China, Pakistan, Iran, Turkey, the five Central Asian republics, Azerbaijan, and Russia. China’s Belt and Road Initia­tive (BRI), which traverses several continents, is a long‑term, strategic investment plan with the objective of facilitating economic integration of countries in line with the historic Silk Road. In April 2015, China’s President, Xi Jinping announced the China‑Pakistan Economic Corridor (CPEC), which amounts to BRI’s flagship project. This en­terprise, which encompasses road, rail, and oil pipeline links, will help Beijing advance its influence across South and Central Asia.
Topic:
Economics, International Cooperation, International Trade and Finance, Bilateral Relations, Infrastructure, and Silk Road
Political Geography:
Pakistan, China, and Asia

9. Beijing’s Long Way to the Gulf Region Oil, Security, Geopolitics

Author:
Fuad Shahbazov
Publication Date:
04-2021
Content Type:
Journal Article
Journal:
Baku Dialogues
Institution:
ADA University
Abstract:
Energy cooperation has been a key aspect of growing bilateral cooper­ation between China and the Arab states of the Gulf region for the past several years. Since 1996, China has become a net importer of crude oil and, as the second‑largest en­ergy consumer in the world after the United States, is now the third‑largest importer of oil after the United States and Japan. Therefore, it should not come as a surprise that China is eying a deep and strategic partnership with the states of a re­gion that sits on top of the world’s largest proven crude oil and natural gas reserves. The deepening political and economic cooperation between China and the member states of the Gulf Cooperation Council (GCC) has received increasing atten­tion from the region’s more estab­lished strategic players: foremost the United States, but also the UK as well as the EU and some of its member states. Indeed, the region’s apparent geopolitical challenges— such as the American withdrawal from the Middle East, the escalation of sectarian wars in the region, the outbreak and development of the Syrian conflict followed by the spread of Islamic radicalism and similar threats—have encouraged the Arab states in the Gulf (as well as Iran) to look more to the East for new reliable partners. This has pro­vided China with an opportunity to obtain a foothold in the region, which sits adjacent to the Silk Road region and is therefore of signifi­cant and lasting interest to readers of Baku Dialogues. With the rapid growth of its economy and consequent height­ened energy demands, China is viewed as a potential investor by the oil rich GCC states, each of which needs to diversify its economy. On­going Western sanctions directed against Iran also make China an attractive proposition for Tehran. Although the Chinese interest in, and policy towards, the region is increasingly complex, this new axis between the Gulf region (especially the Arab half) and China has not received much attention from the think tank and academic communities—at least in the West.
Topic:
Security, International Cooperation, International Trade and Finance, Oil, Natural Resources, Hegemony, and Energy
Political Geography:
China, Asia, and Gulf Nations

10. What Is Drawing Xi’s China and Lukashenko’s Belarus Closer?

Author:
Solomiya Kharchuk
Publication Date:
01-2021
Content Type:
Journal Article
Journal:
Polish Political Science Yearbook
Institution:
Polish Political Science Association (PPSA)
Abstract:
What are the primary drivers of the relationship between Xi’s China and Lukashenko’s Belarus? The present research paper uses the historical process-tracing method to provide an answer to this question. Furthermore, it uses quantitative data analysis regarding the economic intercourse between Belarus and China. It examines whether China’s opposition regarding the unipolar American-led world order and Belarus’s security concerns are the primary drivers of the relationship between Minsk and Beijing. The present article concludes that the congruence of beliefs and Minsk’s desire to ensure survival are drawing the two countries closer together. China’s new strategy encompasses Beijing’s increasing participation in world affairs. China opposes the world order led by a single hegemon, the United States of America. In the interim, Belarus, a relatively weak state insignificant in the global balance of power, shares Beijing’s beliefs about the desired nature of the contemporary world order. However, the Belarusian economy’s condition, which relies heavily on external funding, does not allow the economic cooperation between Minsk and Beijing to thrive. China gradually increases its engagement with Belarus, yet it obscures its ambitions, for Minsk lies in Moscow’s sphere of influence.
Topic:
International Cooperation, International Trade and Finance, Infrastructure, Hegemony, and Belt and Road Initiative (BRI)
Political Geography:
China and Asia

11. Tariffs and Monetary Policy: A Toxic Mix

Author:
Michael D Bordo and Mickey D. Levy
Publication Date:
01-2020
Content Type:
Journal Article
Journal:
The Cato Journal
Institution:
The Cato Institute
Abstract:
The ratcheting up of tariffs and the Fed’s discretionary conduct of monetary policy are a toxic mix for economic performance. Escalating tariffs and President Trump’s erratic and unpredictable trade policy and threats are harming global economic performance, distorting monetary policy, and undermining the Fed’s credibility and independence. President Trump’s objectives to force China to open access to its markets for international trade, reduce capital controls, modify unfair treatment of intellectual property, and address cybersecurity issues and other U.S. national security issues are laudable goals with sizable benefits. However, the costs of escalating tariffs are mounting, and the tactic of relying exclusively on barriers to trade and protectionism is misguided and potentially dangerous. The economic costs to the United States so far have been relatively modest, dampening exports, industrial production, and business investment. However, the tariffs and policy uncertainties have had a significantly larger impact on China, accentuating its structural economic slowdown, and are disrupting and distorting global supply chains. This is harming other nations that have significant exposure to international trade and investment overseas, particularly Japan, South Korea, and Germany. As a result, global trade volumes and industrial production are falling. Weaker global growth is reflected in a combination of a reduction in aggregate demand and constraints on aggregate supply.
Topic:
International Trade and Finance, Monetary Policy, Economic Growth, Tariffs, and Industry
Political Geography:
Japan, China, Europe, Asia, South Korea, Germany, North America, and United States of America

12. The U.S.-China Trade War: Is There an End in Sight?

Author:
Simon Lester and Huan Zhu
Publication Date:
01-2020
Content Type:
Journal Article
Journal:
The Cato Journal
Institution:
The Cato Institute
Abstract:
Donald Trump was a trade “hawk” long before he became president. In the late 1980s, he went on the Oprah Winfrey show and complained about Japan “beating the hell out of this country” on trade (Real Clear Politics 2019). As president, he has continued with the same rhetoric, using it against a wide range of U.S. trading partners, and he has followed it up with action (often in the form of tariffs). While many countries have found themselves threatened by Trump’s aggressive trade policy, his main focus has been China. As a result, the United States and China have been engaged in an escalating tariff, trade, and national security conflict since July 2018, when the first set of U.S. tariffs on China went into effect and China retaliated with tariffs of its own. In this article, we explore the U.S.-China economic conflict, from its origins to the trade war as it stands today. We then offer our thoughts on where this conflict is heading and when it might end.
Topic:
Economics, International Trade and Finance, Tariffs, Trade Wars, and Donald Trump
Political Geography:
China, Asia, North America, and United States of America

13. GEOGRAPHY, INTERNATIONAL TRADE AND INSTITUTIONS: AN ECONOMETRIC ANALYSIS OF THE BRICS

Author:
Marcelo Corrêa, Luiz Michelo, and Carlos Schonerwald
Publication Date:
01-2020
Content Type:
Journal Article
Journal:
Conjuntura Austral: Journal of the Global South
Institution:
Conjuntura Austral: Journal of the Global South
Abstract:
After two decades of intense debate about the determinants of economic development, with authors examining the variables that characterize geography, institutions and international trade, BRICS countries were left behind. Thus, in order to fill this gap, this paper uses econometrics of panel data to analyze the economic performance of these developing nations. Mainstream economists have run into serious problems to deal with these particular determinants within the traditional endogenous growth model, and they have not come up with an agreement, so they keep trying to figure out who is the “winner of this competition”. Empirical evidence shows that there is not a unique explanatorydeterminant, and recognizing which of them can provide the best understandingdepends on the particularities of each case (ROS, 2013).Examining BRICS as a group of countries demonstrates that these specific developing nations share some remarkable features. They are rapidly-growing nations with a vast amount of land and growing participation in international trade. So, empirical tests are feasible and desirable in order to understand their recent development. However, they are also different in many aspects, mostly in terms of institutional characteristics. Thus, our goal is to find out if the econometrics of panel data can shed some light on this ongoing debate.
Topic:
International Political Economy, International Trade and Finance, Trade, Trade Policy, Economic Cooperation, and Geography
Political Geography:
Russia, China, India, South Africa, and Brazil

14. The (Re)emergence of the BRICS and the Reorganization of Power in Contemporary Geopolitics

Author:
Charles Pennaforte and Ricardo Luigi
Publication Date:
07-2020
Content Type:
Journal Article
Journal:
AUSTRAL: Brazilian Journal of Strategy International Relations
Institution:
Postgraduate Program in International Strategic Studies, Universidade Federal do Rio Grande do Sul
Abstract:
The two first decades of the 21 st Century were marked by the recrudescence of two powerhouses, Russia and China. Given their important role on global geopolitics, these two countries took advantage of the gaps resulted from yet another crisis on the structure of global capitalism, which influenced the relative decline of the United States capacity to impose its will on the international system as they had been able to do so since the end of World War II. This article’s objective is to analyze the global geopolitical rearrangement due to a weakened United States which opened the possibility for the BRICS nations to emerge as possible sources of power. To reinforce this analysis, the world-systems perspective, (here on referred to as WSP) elaborated mainly by Immanuel Wallerstein and Giovanni Arrighi is used, as well as a geopolitical approach to provide a link to international relations theories. Therefore, this paper is divided on to four sections. The first one interrelates the geopolitical theories and those of the WSP. The second section is guided towards understanding the origins and fundamentals of the WSP. On the third section, an approach is made towards the motivations and the effects of the rearrangement of power on the world’s geopolitics. Finally, on the last section, the roles and opportunities that have arisen from the emergence of the BRICS nations on the international system are presented.
Topic:
Development, International Trade and Finance, Geopolitics, and Capitalism
Political Geography:
Africa, Russia, China, Europe, India, Asia, South Africa, Brazil, and South America

15. Will China’s E-commerce Reshape a Reopening World?

Author:
Cheng Li and Ryan McElveen
Publication Date:
06-2020
Content Type:
Journal Article
Journal:
Cairo Review of Global Affairs
Institution:
School of Global Affairs and Public Policy, American University in Cairo
Abstract:
China’s advances in digital-buying make the nation a harbinger of how a post-lockdown global economy could look.
Topic:
Globalization, International Trade and Finance, Digital Economy, COVID-19, and Commerce
Political Geography:
China and Asia

16. Pakistan and CPEC Are Drawn Into the U.S.-China Rivalry

Author:
Adnan Aamir
Publication Date:
01-2020
Content Type:
Journal Article
Journal:
China Brief
Institution:
The Jamestown Foundation
Abstract:
Leaders in the People’s Republic of China (PRC) and the Islamic Republic of Pakistan were stunned in late November when a senior U.S. government official issued a strong verbal attack on the China-Pakistan Economic Corridor (CPEC). On November 21 in Washington, D.C., U.S. Assistant Secretary of State for the Bureau of South and Central Asia Affairs Alice Wells spoke at length about the CPEC at a public event, criticizing multiple elements of the $62 billion flagship component of China’s Belt and Road Initiative (BRI). Ambassador Wells cast doubt upon claims that CPEC will generate sustainable economic development in Pakistan and criticized the project’s cost escalations and non-transparent processes of awarding CPEC contracts to Chinese firms. She appealed to Pakistan’s citizens to ask tough questions of the PRC regarding the CPEC and China’s related projects in Pakistan (U.S. State Department, November 21, 2019). In the past, the U.S. government had raised concerns over CPEC and China’s “debt-trap diplomacy,” but it had never presented such a direct and detailed set of criticisms. Ambassador Wells crossed that line—bringing the notoriously stalled out CPEC back under international scrutiny just after Chinese and Pakistani leaders had brokered a cautiously optimistic set of funding deals to jumpstart progress a month before (Ministry of Foreign Affairs (PRC), October 9, 2019). Chinese representatives were quick to respond to Ambassador Wells’s criticisms. The next day, PRC Ambassador to Islamabad Yao Jing(姚敬) said that he had been “shocked and surprised to see the remarks of Alice,” and that Ambassador Wells lacked accurate knowledge and had relied on “Western media ‘propaganda’” for her accusations. He called on the U.S. to “show your evidence, give me evidence” of specific cases of corruption related to the CPEC, and questioned whether Wells was taking potshots at the CPEC to score political points. Ambassador Yao challenged the U.S. to suit its actions to its words: “If there is any sincerity… [the U.S. should] come forward to invest in Pakistan. We [China] welcome U.S. investment in Pakistan.” (INP (Pakistan), November 22, 2019; VOA, November 22, 2019). In addition to refocusing negative attention on the CPEC, Assistant Secretary of State Wells’ speech drew a reluctant Pakistan further into the tumultuous U.S.-China political rivalry. Pakistan faces a balance of payments crisis and a severely weakened currency, which has led it to grow increasingly dependent on economic ties with China. At the same time, the Pakistani leadership has navigated a complex and multifaceted historic security and political partnership with the U.S. If, as Ambassador Wells’ statement seems to imply, Pakistan’s engagement with China is seen to come at the expense of its bilateral relationship with the U.S. – or vice-versa – then Pakistan’s delicate power balancing diplomacy will soon become even more tenuous.
Topic:
Diplomacy, International Cooperation, International Trade and Finance, Leadership, and Conflict
Political Geography:
Pakistan, China, Middle East, Asia, North America, and United States of America

17. The Future of Chinese Foreign Economic Policy Will Challenge U.S. Interests, Part 1: The Belt-and-Road Initiative and the Middle Income Trap

Author:
Sagatom Saha
Publication Date:
01-2020
Content Type:
Journal Article
Journal:
China Brief
Institution:
The Jamestown Foundation
Abstract:
Chinese Communist Party (CCP) General Secretary Xi Jinping and other senior CCP leaders have prudently planned for the slowing economic growth that China now faces. CCP officials plan to transition China from its current export-led growth model to one driven by indigenous innovation, and one in which China’s rising global prominence confers to it many of the same advantages traditionally enjoyed by the United States (such as low borrowing costs and influence within international institutions). Although U.S.-China relations have become further fraught amid the trade war, many prominent China hands nevertheless assert that Beijing’s long-term economic plans do not run counter to U.S. strategic interests. [1] However, many of China’s planned foreign economic initiatives—to include the Belt and Road Initiative (BRI), global value chain advancement, and renminbi (RMB) internationalization—will come at U.S. expense. Policymakers in both Washington and Beijing should accordingly expect U.S.-China tensions to persist beyond the Trump administration. China’s need for new growth vehicles is twofold: its economic size has not translated into global influence, and its current economic model is losing steam. First, China’s transformation into the world’s second-largest economy has yet to yield equivalent influence in the international system. Beijing’s sway in the World Bank and the International Monetary Fund (IMF), for example, lag behind China’s status as the largest trade partner and foreign investor for much of the world. The United States, by contrast, has leveraged its economic status to maintain effective control of the Bretton-Woods institutions, to obtain low borrowing costs, and to exercise punishing sanctions programs against unfriendly governments. Second, Chinese growth has seen a secular decline over the last decade (see figure 1). The official projected GDP growth rate for 2020 is 6.1 percent (Xinhua, November 30, 2019), but some Chinese officials have hinted that they expect lower sub-6 percent growth in 2020 (South China Morning Post, November 14, 2019). This is a noteworthy signal, for CCP discourse has previously identified the benchmark of 6 percent GDP growth as necessary to avoid social unrest (China Brief, March 22, 2019).
Topic:
Foreign Policy, Economics, International Cooperation, International Trade and Finance, Hegemony, Conflict, and Rivalry
Political Geography:
China, Middle East, Asia, North America, and United States of America

18. The Future of Chinese Foreign Economic Policy Will Challenge U.S. Interests, Part 2: Renminbi Internationalization and International Economic Institutions

Author:
Sagatom Saha
Publication Date:
02-2020
Content Type:
Journal Article
Journal:
China Brief
Institution:
The Jamestown Foundation
Abstract:
Complications surrounding the Belt and Road Initiative (BRI), and the dangers of the “middle-income trap,” are not the only factors impacting the international economic policies of the People’s Republic of China (PRC). Furthermore, poor capital efficiency is not the only feature of the Chinese economy that frustrates the country’s policymakers. China’s gross domestic product (GDP) has roughly doubled in the last decade, but Beijing’s pull in the international monetary and financial system remains lackluster. This lack of progress stems in part from the dollar’s centrality around the world, as well as U.S. dominance in international economic institutions. Beijing’s economic planners have long advocated against the dollar while attempting to increase the global role of the PRC’s own renminbi (RMB) currency. While past efforts stumbled, RMB internationalization and increased Chinese influence will directly confront U.S. economic and geopolitical interests.
Topic:
Economics, International Cooperation, International Trade and Finance, Hegemony, Conflict, and Rivalry
Political Geography:
China, Asia, North America, and United States of America

19. Limited Payoffs: What Have BRI Investments Delivered for China Amid the Coronavirus Outbreak?

Author:
Johan Van de Ven
Publication Date:
03-2020
Content Type:
Journal Article
Journal:
China Brief
Institution:
The Jamestown Foundation
Abstract:
The coronavirus outbreak, now declared to be a pandemic by the World Health Organization (WHO, March 11), offers a prism through which to assess how China interacts with the rest of the world in a time of crisis—one that was at first confined to China’s borders, but has since become a global emergency. Some commentaries on the connection between the COVID-19 coronavirus outbreak and the Belt and Road Initiative (BRI) have portrayed Xi Jinping’s centerpiece foreign policy program as a dangerous vector enabling the pandemic—even though China was engaged in international trade and transportation prior to the commencement of the BRI in 2013 (Foreign Policy, January 24). For its part, state media in the People’s Republic of China (PRC) has linked BRI relationships to support for China amid the initial stages of the crisis, citing positive examples of support from media outlets in South Africa, Russia, and Pakistan (People’s Daily, February 20). More recently, as the spread of the disease has abated in China and increased elsewhere, Chinese authorities have sought to illustrate their support, via the “warmth” of the Belt and Road, for current hotspots such as Italy and Iran—while also criticizing the U.S. response to the crisis (Zhejiang News, March 12). Such developments in China’s foreign relations amid the coronavirus outbreak offer a window to assess the effectiveness of the BRI in one of its central goals: namely, expanding the soft power available to the PRC. Applying an understanding of soft power as a state’s ability to induce other states to take actions favorable to its own interests, available evidence across domains related to the initial phases of the COVID-19 pandemic—such as the issuance of evacuation orders, and restrictions on public transportation—indicates that BRI investments have had only modest success in building China’s soft power. International support for China was piecemeal and rhetorical, leaving China economically and politically isolated. Demonstrating the lack of soft power available to Chinese authorities, the state tabloid Global Times demanded on February 12 that countries that “have completely cut off traffic communications with China” should “reconsider and revoke these practices” (Global Times, February 12).
Topic:
International Trade and Finance, Infrastructure, Belt and Road Initiative (BRI), Public Health, Pandemic, and COVID-19
Political Geography:
China and Asia

20. Global Supply Chains, Economic Decoupling, and U.S.-China Relations, Part 1: The View from the United States

Author:
Sagatom Saha and Ashley Feng
Publication Date:
04-2020
Content Type:
Journal Article
Journal:
China Brief
Institution:
The Jamestown Foundation
Abstract:
The trade war has defined the current adversarial relationship between the United States and the People’s Republic of China (PRC). While President Donald J. Trump has at times openly expressed admiration for Chinese Communist Party (CCP) General Secretary Xi Jinping, his administration has pursued policies consistent with economic and technological decoupling. These policies include reforms that strengthen the Committee on Foreign Investment in the United States (CFIUS); greater usage of the export control system, especially the Entity List; and threatening the use of the International Emergency Economic Powers Act (IEEPA) to force U.S. companies back to the United States. These policies, taken to their logical end, would see the secular decoupling of the U.S. and Chinese economies and the rerouting of the global supply chains that bind them. The interim trade deal has done seemingly little to change the structural economic conflict between Beijing and Washington. If economic decoupling came to pass, it would portend a sweeping reorientation of the global economy that many analysts regard as lying outside the bounds of conventional analysis. Yet some Trump administration officials, such as Director of Trade and Manufacturing Policy Peter Navarro, have promoted economic decoupling as their desired aim (SCMP, June 20, 2018; Forbes, December 3, 2019). President Trump himself has “ordered” American companies to look for alternative suppliers outside of China, or to return production to the United States (Twitter, August 23, 2019). The Trump Administration’s trade and investment restrictions have not been limited to U.S. companies—they also include pressuring third-party countries and foreign companies to abide by U.S. restrictions. Chinese companies are also relocating their manufacturing capabilities abroad—in part because of secular economic trends, but U.S. actions are accelerating the process. Simply put, sustained U.S. policies on China can encourage economic decoupling, but only if global economic trends continue to cooperate. Those policies are nascent, but could likely become a structural feature of the U.S.-China economic relationship—especially since a harder stance towards China has gained traction among both major parties. This has been demonstrated by widespread criticism of Chinese trade practices in both parties, and in bipartisan votes on legislation antagonistic to Beijing, such as the Hong Kong Democracy and Human Rights Act or the UIGHUR Act (see further below). The Trump Administration has pursued a three-pronged approach in breaking down economic supply-chain links: 1) escalating tariffs, which discourages bilateral trade; 2) imposing investment restrictions and export controls that punish tech transfers; and 3) issuing threats to U.S. firms that do business in China under the IEEPA. These current policies preview what could become a new orientation in U.S. policy towards China, regardless of who leads the United States at the beginning of next year.
Topic:
International Trade and Finance, Hegemony, Conflict, Trade Wars, and Supply Chains
Political Geography:
China, Asia, North America, and United States of America