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1. China's Blockchain and Cryptocurrency Ambitions: The First-mover Advantage

Author:
Alice Ekman
Publication Date:
07-2021
Content Type:
Policy Brief
Institution:
European Union Institute for Security Studies
Abstract:
China was initially cautious in the development and application of blockchain technology. Among the technology’s best-known attributes are the relative anonymity and immutability of the information, as every blockchain transaction has a digital record and signature that can be identified, validated, stored and shared. This technology could therefore become a double-edged sword for the Communist Party of China (CPC), as it goes against the government’s efforts to censor content it considers sensitive and, in more general terms, efforts to assert its cyber-sovereignty. However, after at first observing the emergence of blockchain technology with concern, China’s central government has increasingly seen it as an opportunity, as has been the case with most emerging technologies. Since the launch of the 13th five-year plan in 2016 and the release of the first White Paper on Blockchain Technology and Application Development by the Ministry of Industry and Information Technology the same year, the CPC has increasingly considered that blockchain could become an economic, political and geopolitical asset for the country, if ‘guided’ well. China has continued to shape its positioning on and conceptualisation of blockchain technology on a regular basis over the last 5 years: the China Blockchain Industry White Paper (1) was published in 2018, another White Paper entitled Blockchain Technology Application in Judicial Evidence Storage was published in 2019 (2) and the 14th five-year plan (2021–2025), released in March 2021, also refers to blockchain and cryptocurrency (see timeline diagram on page 7) (3). China’s unique approach to blockchain is conditioned precisely by this paradox, stemming from the decentralised nature of the technology and the highly centralised nature of the Chinese political system. While blockchain technology is essentially decentralised, regulations in China have aimed to guarantee state control over its development and application. As part of this dual policy, which is analysed in the first part of the Brief, the Chinese government has launched its own digital currency – the digital yuan. At the same time, it dislikes bitcoin, which relies on a truly decentralised type of blockchain. Although blockchain is best known for being the technology behind cryptocurrency, the Chinese government’s approach towards blockchain is very comprehensive, going far beyond cryptocurrencies. It promotes application of the technology in a variety of fields, ranging from energy conservation to urban management and law enforcement, and has strong ambitions to become the world leader in the field. In October 2019, China’s President Xi Jinping, speaking at a study session for members of the Politburo, declared that he wanted the country to be a ‘rule-maker’ on blockchain, suggesting that this technology will increasingly become a key arena in the country’s race against the United States for technological supremacy (4). Blockchain has become a fast-growing sector in China over the last two years. But is China likely to succeed in the global promotion of an alternative form of blockchain? This Brief answers this question by analysing the development of different applications at national level, before and during the Covid-19 pandemic, but also the emergence of international cooperation on blockchain and cryptocurrency.
Topic:
Science and Technology, Cryptocurrencies, and Blockchain
Political Geography:
China and Asia

2. China's Data Strategy: Creating a state-led market

Author:
Camille Boullenois
Publication Date:
10-2021
Content Type:
Policy Brief
Institution:
European Union Institute for Security Studies
Abstract:
In 2019 and 2020, the European Union, the United Kingdom and the United States issued strategy papers on data governance acknowledging the importance of data to their economic development and national security. With different emphases, four competing objectives dominate these data strategies: innovation (using data to create new business models and boost economic growth); security (ensuring that sensitive data is not used by a hostile foreign power); privacy (protecting citizens from abusive use of personal data); and surveillance (using data to monitor and control citizens’ and companies’ behaviour). In the past two years, China has been defining its own data strategy and governance regime and, while juggling the same four competing objectives as its Western counterparts, is taking an innovative approach. While the specific data governance framework is still being debated among scholars, policymakers, industrial lobbyists and state institutions, local pilot regulations on data and stakeholders’ public positions have already hinted at its future characteristics. This Brief aims to shed light on these debates over China’s emerging data governance framework. It starts by describing the objectives of the framework, then summarises the debates around the new data rights that Chinese policymakers are establishing and analyses China’s first local pilot regulations defining those rights. The Brief then focuses specifically on health data to illustrate how China'sdata governance regime is designed to work. Finally, the Brief gives an overview of the challenges that China’s data governance framework presents for EU governments and companies. Ultimately, China’s data governance regime will have important implications for the protection of EU citizens’ data and creates a risk of data protectionism. It is therefore crucial that the EU understands early enough the direction that China is taking, so that it can respond appropriately.
Topic:
Governance, European Union, Transnational Actors, and Data
Political Geography:
China and Asia

3. Strategic Foresight in Chin: The other missing dimension

Author:
Paul Charon
Publication Date:
03-2021
Content Type:
Policy Brief
Institution:
European Union Institute for Security Studies
Abstract:
Over the last few decades, analysis of international relations and strategic issues has developed rapidly in China, both within the Chinese Communist Party– state apparatus and in think tanks and universities. However, the richness of this field of study is in stark contrast to the absence of any real open reflection on the question of foresight. If, like other nations, China is committed to understanding the world in which it is evolving and to identifying possible changes, the function of foresight has not been conceptualised or institutionalised to the same degree as in the West. Foresight analysis in China is marked by several salient features: firstly, it remains almost non-existent in Chinese institutional frameworks dedicated to the analysis of international relations; secondly, the concepts of the ‘black swan’ and the ‘grey rhino’ have made a significant breakthrough, particularly in economics, before being cannibalised and politicised by the Party; and thirdly, the reading of the horizon remains essentially informed by the Party’s vision, fears and obsessions.
Topic:
International Relations, Political Parties, Domestic Policy, and Strategic Interests
Political Geography:
China and Asia

4. The Butterfly Effect: Why does Eastern Europe matter to Japan?

Author:
Daisiuke Kitade
Publication Date:
05-2020
Content Type:
Policy Brief
Institution:
European Union Institute for Security Studies
Abstract:
Long gone are the days when Eastern Europe was Russia’s exclusive backyard. The last decade has witnessed the rapid expansion of political and economic ties between powers from the Middle East and Asia and East European states. While much of the analysis on the rise of these powers is usually focused on China and its One Belt One Road march across the post-Soviet world, the role of other Asian powers remains underexplored. Whereas China’s penetration of the region has been in the spotlight, Japan’s charm offensive to rekindle diplomatic, political and economic ties with Eastern Europe has tended to be overlooked. In the last five years, Japan has opened three new embassies in the region (in Armenia, Belarus and Moldova), Japan’s prime minster has paid the first official visit to Ukraine in the history of bilateral relations between the two countries and the Japanese foreign minister travelled to all three South Caucasus republics. More recently, in the midst of the Covid-19 pandemic Japan pledged to provide the flu drug Avigan to Georgia, Moldova and Ukraine free of charge. All this raises the question why, despite such a great geographical distance, Eastern Europe matters to Japan? The aim of this Brief is threefold. Firstly, to outline the place of Eastern Europe in Japan’s foreign policy and shed light on the drivers shaping Tokyo’s approach. Secondly, to assess Japan’s economic presence as well as the amount of development aid it has provided to East European states. Thirdly, to reveal similarities between Japan’s and the EU’s strategies in this region and ultimately, to identify areas of cooperative synergy.
Topic:
Security, Development, Geopolitics, Investment, Trade, and Development Aid
Political Geography:
Russia, Japan, and Asia

5. From Bad To Worse? The Impact(s) of Covid-19 On Conflict Dynamics

Author:
Katariina Mustasilta
Publication Date:
06-2020
Content Type:
Policy Brief
Institution:
European Union Institute for Security Studies
Abstract:
In December 2019, when the novel strain of coronavirus first hit the headlines, 12 countries in the world were experiencing organised violence on an extensive scale, with more than 100 incidents of violence and attacks against civilians recorded in that month. To most of these countries, the virus seemed a distant threat at the time. Yet, a few months and over 7 million recorded Covid-19 cases later, it has evolved from a distant threat to a stark reality. The global crisis – which has unleashed an emergency in the world’s public health, political, and economic systems simultaneously – has subjected even the most stable societies to unprecedented disruption. In conflict-affected countries, i.e. countries with ongoing conflicts or a high risk of relapse into conflict, and countries emerging from conflicts, the pandemic has added another layer on top of often multiple existing layers of crisis. Against the backdrop of expert warnings over the particular vulnerabilities of conflict-affected countries to Covid-19, this Brief analyses key emerging dynamics and repercussions in conflict-affected countries in general, and in five countries in particular: Colombia, Libya, Sudan, Ukraine and Yemen. The focus here is especially on conflicts and countries previously covered by our Conflict Series, so as to build on already accumulated analysis. The Brief identifies three main ways in which the global crisis impacts conflict-affected countries. First, the pandemic itself risks exacerbating inequalities and further burdening already vulnerable groups within conflict-affected societies. Second, local and external conflict parties are quick to capitalise on various opportunities arising from the policy responses to the crisis which also complicate peace and crisis management efforts. Third, the economic fallout puts severe strain on already weak state institutions and undermines governance outcomes (thus increasing the risk of conflict). Of these three dimensions, the policy responses and distraction created by the pandemic have thus far had the most significant repercussions for conflict dynamics, unfortunately often for the worse. The global scale of the crisis and its continuing evolution complicate efforts to seize momentum for peace and set the pandemic apart from previous catastrophic/disruptive events, such as the tsunami in 2004, that in some cases led to a positive shift in local conflict dynamics. The Brief is structured as follows: the main text analyses the emerging trends catalysed by the pandemic crisis in conflict-affected contexts, while the case study boxes discuss the unfolding processes in specific countries. The last section discusses the policy options for preventing further escalatory repercussions.
Topic:
War, Inequality, Conflict, Crisis Management, and COVID-19
Political Geography:
Russia, Middle East, Asia, South America, North Africa, North America, and Africa

6. Deciphering China in the Middle East

Author:
Erzsébet N. Rózsa
Publication Date:
06-2020
Content Type:
Policy Brief
Institution:
European Union Institute for Security Studies
Abstract:
It is commonly perceived that the engagement of the People’s Republic of China (PRC) in the Middle East is driven primarily by economic interests, and that it prefers to steer clear of the conflicts in the region as much as possible. Its landmark ‘Belt and Road Initiative’ (BRI), launched in 2013 as a global infrastructure development strategy, contributes to this perception. This notion, however, overlooks the larger context of China’s engagement, both historical and contemporary. China’s new activism in the Middle East reflects the evolution of Chinese foreign policy thinking, in line with the country’s rise as an economic superpower. Its original choice of partners in the region was influenced by ideological considerations and a shared anti-colonial and anti-imperialist narrative. But its transformation into an economic powerhouse has inevitably altered its priorities and influence in the Middle East. Its economic penetration of the region is reflected in the set of cooperation agreements that it has concluded with the regional states as well as in subregional cooperation formats, e. g. the China-Arab State Cooperation Forum. The PRC’s increasing engagement in the Middle East may well be driven by its need for resources to fuel its economic growth; however, there is inevitably a political dimension too, due not only to the fact that China has a seat on the UN Security Council (UNSC) and seeks to project the image of a ‘responsible’ superpower but also because of the need to protect its investments and commercial interests in the region. China’s growing influence in the Middle East may generally be positively received, or even welcomed; however, the countries of the region have very different perspectives and often conflicting interests in the way they relate to the PRC. This Brief analyses these perspectives taking into account China’s recent initiatives in the region at a time of growing rivalry between the US and China.
Topic:
Foreign Policy, Infrastructure, Partnerships, Geopolitics, Soft Power, and Belt and Road Initiative (BRI)
Political Geography:
China, Middle East, Asia, and North Africa

7. Stand by Me! The Sino-Russian Normative Partnership in Action

Author:
Alice Ekman, Sinikukka Saari, and Stanislav Secrieru
Publication Date:
08-2020
Content Type:
Policy Brief
Institution:
European Union Institute for Security Studies
Abstract:
It has become commonplace to describe the relationship between China and Russia as ‘a marriage of convenience’,1 in particular in the aftermath of the annexation of Crimea in 2014. However, this popular metaphor hides very different – even contradictory – interpretations of the nature and future of the relationship. Perhaps depending on one’s take on arranged marriages, the deepening relationship between these two states is seen as ‘stable and successful’2 and ‘durable’,3 or on the contrary, as a ‘mere’ convenient arrangement doomed to be a temporary solution.4 It seems that fuzzy and often misunderstood marriage allegories bring more confusion than clarity to understanding and explaining complex relations between states. Shared norms and worldview would certainly indicate a steady and long-term arrangement whatever the marriage metaphor used. The Sino-Russian partnership is dense and multidimensional, and it is rooted in shared norms. International norms – the standard of expected state behaviour – reflect the underlying values of the global system, and underpin international cooperation in the political, economic and security-related fields.Sino-Russian normative cooperation aims at redefining and re-interpreting existing international norms in a way that reflects their shared principles, worldviews and threat perceptions – ‘like-mindedness’ as Chinese official communication refers to it.5 Both China and Russia share a conviction that today's international order is unfairly dominated by the US and the West, and that the current international norms and their interpretation reflect Western values that should not be considered universal. They are both convinced that these need to be changed, and that the time is ripe for this. For Beijing and Moscow, a post-Western era of global governance looms on the horizon. This shared reading of the present and predilection for such a future global order has been translated into dynamically evolving normative cooperation between the partners at multilateral level. Two other important and shared convictions are, first, that neither party represents a threat to the other regime’s survival (and even has an interest in supporting the other regime) and, second, that the West would like to see the regime in both China and Russia challenged (and under the right circumstances is ready to contribute to this). The shared worldview and threat perception help to smooth out the differences between the two countries: when their interpretations differ, they show mutual self-restraint and acquiesce rather than go against each other in the name of national interest. This Brief examines the normative dimension of Sino-Russian cooperation – i.e. how the two countries advance their understanding of international rules and norms together in the international arena. It studies how the two countries advance their understanding of appropriate state behaviour internationally in three areas: human rights, non-intervention and cyber-governance. All three issues are united by a common thread – states’ sovereignty – a robust version of which both vigorously defend. As a result, in these three areas, their cooperation is particularly strong and proactive.
Topic:
Bilateral Relations, European Union, Partnerships, Geopolitics, and Norms
Political Geography:
Russia, China, Eurasia, and Asia

8. Towards Urban Decoupling? China’s smart city ambitions at the time of Covid-19

Author:
Alice Ekman and Cristina de Esperanza Picardo
Publication Date:
05-2020
Content Type:
Policy Brief
Institution:
European Union Institute for Security Studies
Abstract:
The term ‘smart city’ relates to the use of technology to improve urban infrastructure and services, from energy grids to systems for transport/mobility and parking, and includes water treatment, waste management and security aspects, among others. China has made the smart city part of its national development strategy: the concept was endorsed by President Xi Jinping at a national urbanisation convention in 2015, and later explicitly mentioned in the 13th Five-Year Plan (2016-2020), adopted in March 2016. Since then, the central government has massively encouraged the development of smart cities across Chinese national territory – claiming in January 2019 to have a total of 500 “smart city pilot projects ready or under construction”. It has also urged technology companies to become leaders at a global level, and to reach out to foreign cities in support of their own smart city development. China often promotes its smart cities through existing bilateral and regional frameworks (such as the China-ASEAN Summit or the China-Central Asia Cooperation Forum) and in particular under the banner of the ‘Belt & Road Initiative’ (BRI), as well as its derivative, the ‘Digital Silk Road’, which are attracting a significant number of countries. If China is today investing in the smart city industry in a comprehensive way, including mobility and ecological aspects, it first and foremost developed a strong focus on and expertise in the public security dimension. In fact, China’s definition of smart city was initially assimilated to ‘safe city’ and the development of surveillance networks for the state security authorities. It is mainly, but not exclusively, this ‘safe’ dimension of smart cities that a host of Chinese companies are offering to foreign countries and cities – and the one that will be analysed in this Brief. How is China adjusting its safe city ambitions domestically and internationally during the Covid-19 crisis? And what are the challenges raised by China’s recent safe city developments? This Brief identifies two main types: a normative challenge and a geopolitical one. Both of them will potentially lead to an ‘urban decoupling’, with the development of diverging types of cities and urban governance models in the future.
Topic:
Science and Technology, Governance, Geopolitics, Cities, and COVID-19
Political Geography:
China and Asia

9. Sochi: games with frontiers

Author:
Gerald Stang
Publication Date:
02-2014
Content Type:
Policy Brief
Institution:
European Union Institute for Security Studies
Abstract:
Russia is often seen as a land of extremes – and the narratives for this month's Winter Olympics in Sochi reflect that view. From the record-length 65,000 km Olympic torch run (which included trips to outer space, the north pole and the bottom of the world's deepest lake) to the incredible $51 billion price tag and the Ian Flemingesque threat of attacks from black widow terrorists, the Sochi games have a distinctly Russian flavour. The Kremlin appears to have envisioned the games as a national triumph, not unlike the 2008 Beijing Olympics, with organisational, architectural and sporting successes that could unite the country. However, with global headlines dominated by stories of corruption, human rights abuses, anti-gay laws and the very real threat of terrorist attacks, one might be forgiven for wondering whether the Russian government regrets its decision to bid for the games.
Topic:
Conflict Prevention, Security, Political Violence, Islam, and Insurgency
Political Geography:
Russia, Europe, and Asia

10. EU-Russia: overcoming stagnation

Author:
Nicu Popescu
Publication Date:
01-2014
Content Type:
Policy Brief
Institution:
European Union Institute for Security Studies
Abstract:
For the best part of the last two decades, EU-Russia summits have alternated between being upbeat events where new grand integration initiatives were launched – the creation of four common spaces in 2005, the partnership for modernisation in 2010 – and rather unfriendly encounters where success was seemingly measured on how impolite the partners could be to one another.
Topic:
Economics, Energy Policy, International Trade and Finance, and Bilateral Relations
Political Geography:
Russia, Europe, and Asia

11. The Eurasian Customs Union: the economics and the politics

Author:
Nicu Popescu and Iana Dreyer
Publication Date:
03-2014
Content Type:
Policy Brief
Institution:
European Union Institute for Security Studies
Abstract:
Long ignored by the West, the Eurasian Customs Union (consisting of Russia, Belarus and Kazakhstan) has recently been brought into the international limelight. The project – an attempt by the Kremlin to create a rival to the European Union and its Eastern Partnership project – attracted attention when Moscow, with its characteristic bluntness, began to pressure Armenia, Georgia, Moldova and Ukraine to join the grouping and drop their plans to sign Association Agreements with the EU. Although Russia has not succeeded in convincing all these states to join, it managed to do so with Armenia in September 2013, and the political tussle over the issue with Ukraine played a central role in triggering the country's current crisis.
Topic:
Economics, International Political Economy, International Trade and Finance, and Power Politics
Political Geography:
Europe, Eurasia, and Asia

12. China's energy demands: are they reshaping the world?

Author:
Gerald Stang
Publication Date:
03-2014
Content Type:
Policy Brief
Institution:
European Union Institute for Security Studies
Abstract:
In 2012, China was the world's seventh biggest producer of natural gas, the fourth largest oil producer, and the biggest producer of hydroelectricity. It also produced almost as much coal as the rest of the world combined. Still, this is not enough. China's domestic energy bounty has long allowed the country to keep its overall import dependency relatively low but, as the country's economy continues to boom, its import dependency is growing quickly, particularly with regard to oil.
Topic:
Economics, Energy Policy, International Cooperation, International Trade and Finance, Markets, and Natural Resources
Political Geography:
China and Asia

13. Security developments in East Asia: what implications for the EU?

Author:
Nicola Casarini
Publication Date:
02-2011
Content Type:
Policy Brief
Institution:
European Union Institute for Security Studies
Abstract:
East Asia is home to some of the most important trading partners of the Union. China is foremost among these, ranking second only to the US - in 2009, EU-China trade totalled a massive €296 billion - while the EU is China's most important trading partner. Japan is the sixth-largest trade partner of the EU - in 2009, EU-Japan trade was almost €92 billion. South Korea is the EU's eighth-largest trade partner and the EU has become South Korea's second largest export destination - total trade in 2009 was above €53 billion. Furthermore, on 6 October 2010 the EU and South Korea signed a Free Trade Agreement (FTA) which is the most ambitious bilateral trade agreement ever negotiated by the EU, and the first with an Asian country.
Topic:
International Trade and Finance
Political Geography:
Japan, China, Europe, Israel, Asia, and South Korea