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Begin New Search Topic Development Political Geography Asia Content Type Working Paper Publication Year within 10 Years

41. Is China Still a Developing Country? And Why It Matters for Energy and Climate

Author:
Philippe Benoit and Kevin Tu
Publication Date:
07-2020
Content Type:
Working Paper
Institution:
Center on Global Energy Policy (CGEP), Columbia University
Abstract:
China’s dramatic economic growth in the 21st century has made it not only the second largest economy in the world but also a powerhouse in the global energy system. Now, as the top energy consumer and the biggest emitter of greenhouse gases, China is being closely watched and judged as its impact on energy markets and climate grows more profound. Looking forward, many issues are expected to shape the evolution of China’s energy sector, not least of which is its development status. While China’s economic might makes it a superpower alongside the United States, it still faces many of the major challenges of a typical developing country, such as widespread energy poverty, including 400 million people without access to clean cooking, significant air pollution, and dependence on increasing energy use to fuel future economic growth. Its modest income per capita qualifies it as a middle-income developing country. Evaluating China’s development status is not just an academic exercise. How China views itself and its challenges and how the international community classifies it carry real-world consequences that can significantly impact how the country manages its energy needs going forward, what fuels it uses, how it interacts with energy and other partners, and the level of its contributions and commitment to climate change mitigation and adaptation efforts worldwide. Understanding the nature and implications of China’s development situation can help in designing energy policies and fostering an international framework that better promote sustainable growth both within the country and globally. This paper examines how the usual criteria employed by international organizations to determine a country’s development standing have become increasingly difficult to apply to China, given the dramatic changes it has undergone over the past several decades, notably from an energy perspective. The paper finds that China combines significant characteristics of both developing and developed countries and examines the energy and environmental implications of this hybrid status.
Topic:
Climate Change, Development, Energy Policy, and Environment
Political Geography:
China and Asia

42. Determinants of Korean Outward Foreign Direct Investment: How Do Korean Firms Respond to the Labor Costs of Host Countries?

Author:
Hanbyul Ryu and Young Sik Jeong
Publication Date:
09-2020
Content Type:
Working Paper
Institution:
Korea Institute for International Economic Policy (KIEP)
Abstract:
Low cost of labor has been one of the major incentives that foreign firms invest in many developing countries. Yet, many developing countries including China and ASEAN have recently experienced a rapid increase in labor costs. Using the wage information provided by JETRO, this study examines how Korean FDI outflow is affected by the increase in labor costs of the manufacturing industry in host countries. The results indicate that the worker’s and engineer’s wages in Asian developing countries, who accumulated at least 3 and 5 years of work experience, have generally a negative impact on Korean FDI outflow. However, there exist positive relationships between the wages and FDI when the wages stay at very low levels. We do not find evidence that labor costs make a significant impact on Korean FDI outflow to European or Developed countries.
Topic:
Development, Foreign Direct Investment, and Labor Market
Political Geography:
China, Asia, and Korea

43. China and COVID-19: a shock to its economy, a metaphor for its development

Author:
George Magnus
Publication Date:
02-2020
Content Type:
Working Paper
Institution:
LSE IDEAS
Abstract:
The Chinese government’s draconian actions to control the coronavirus seem to be producing a remarkable economic contraction. As so many are unable to attend or resume work at the moment, the government’s palliative economic measures may gain little traction. Although the demand shock will eventually fade, other longer-term issues will surely endure. The supply shock will be less obvious but more corrosive. The government’s questionable conduct in managing the public health crisis has unveiled significant features about governance in Xi’s China that can be mapped on to China’s development. While this crisis is the biggest challenge Xi has faced, there is little doubt that he will survive it, champion the party’s role in the nation’s rescue, and feel emboldened to continue with his authoritarian governance. Yet it is this that, in the long run, will prove incompatible with China’s economic development ambitions.
Topic:
Development, Economy, COVID-19, and Health Crisis
Political Geography:
China and Asia

44. Building Development Partnership: Engagement Between China and Latin America

Author:
Haibin Niu
Publication Date:
06-2019
Content Type:
Working Paper
Institution:
The Carter Center
Abstract:
The full-fledged economic ties between China and Latin America and the Caribbean are important indicators of China’s role as a global player. In the ongoing and heightened debate about China’s rise, China’s impact on Latin America is being discussed by scholars and policymakers worldwide. Though there are doubts about China’s intentions and impact on Latin America, China has developed a more substantial and meaningful policy framework to build development partnership with the region.
Topic:
Foreign Policy, Development, International Cooperation, and Economic Cooperation
Political Geography:
China, Asia, and Latin America

45. Learning Equity Requires More than Equality: Learning Goals and Achievement Gaps between the Rich and the Poor in Five Developing Countries

Author:
Maryam Akmal and Lant Pritchett
Publication Date:
02-2019
Content Type:
Working Paper
Institution:
Center for Global Development
Abstract:
The Sustainable Development Goals (SDGs) for education include the goal that “all youth...achieve literacy and numeracy” (Target 4.6). Achieving some absolute standard of learning for all children is a key element of global equity in education. Using the Annual Status of Education Report (ASER) data from India and Pakistan, and Uwezo data from Kenya, Tanzania, and Uganda that test all children of given ages, whether in school or not, on simple measures of learning in math, reading (local language), and English, we quantify the role of achieving equality between the richest 20% and the poorest 40% in terms of grade attainment and learning achievement toward accomplishing the global equity goal of universal numeracy and literacy for all children. First, excluding Kenya, equalizing grade attainment between children from rich and poor households would only close between 8% (India) and 25% (Pakistan) of the gap to universal numeracy, and between 8% (Uganda) and 28% (Pakistan) of the gap to universal literacy. Second, children from the poorest 40% of households tend to have lower performance in literacy and numeracy at each grade. If such children had the learning profiles of children from rich households, we would close between 16% (Pakistan and Uganda) and 34% (India) of the gap to universal numeracy, and between 13% (Uganda) and 44% (India) of the gap to universal literacy. This shows that the “hidden exclusion” (WDR, 2018) of lower learning at the same grade levels—a gap that emerges in the earliest grades—is a substantial and often larger part of the equity gap compared to the more widely documented gaps in enrollment and grade attainment. Third, even with complete equality in grade attainment and learning achievement, children from poor households would be far from the equity goal of universal numeracy and literacy, as even children from the richest 20% of households are far from universal mastery of basic reading and math by ages 12-13. Achieving universal literacy and numeracy to accomplish even a minimal standard of global absolute equity will require more than just closing the rich-poor learning gap, it will take progress in learning for all.
Topic:
Development, Education, Sustainable Development Goals, and Language
Political Geography:
Pakistan, Kenya, Africa, Middle East, India, Asia, and Tanzania

46. Chinese Industrial Actors in Global Rule Making: A Preliminary Exploration

Author:
Honzhi Yu and Hongying Wang
Publication Date:
02-2019
Content Type:
Working Paper
Institution:
Centre for International Governance Innovation
Abstract:
In contrast to the growing profile of the Chinese government in global governance, the engagement of Chinese industrial actors in global rule making is quite limited and uneven. Some Chinese industrial leaders have shown an ambition to participate in global rule making in their respective realms; most of the others still lack interest or capacity. This policy brief identifies three plausible sources of variation among the Chinese industrial actors. It offers suggestions to Chinese industrial actors and to those concerned about China’s role in global governance, with the purpose of reducing misunderstanding and building trust between Chinese industrial actors and businesses, regulators, non-governmental organizations and stakeholders from other parts of the world in developing global standards for good governance.
Topic:
Development, Industrial Policy, and Governance
Political Geography:
China and Asia

47. The Belt and Road Initiative: Motivations, Financing, Expansion and Challenges of Xi's Ever-expanding Strategy

Author:
Alex He
Publication Date:
09-2019
Content Type:
Working Paper
Institution:
Centre for International Governance Innovation
Abstract:
This paper argues that with more objectives added since its inception in 2013, China’s Belt and Road Initiative (BRI) has evolved into a much more expansive grand strategy that includes a package of themes and goals. It examines the policy-making process of the BRI by exploring the motivations behind the plan President Xi Jinping proposed and how the initial Silk Road projects have developed into China’s package of strategies over the past few years. The priorities and performance of China’s investments in the BRI are discussed from the angle of geographical distribution, routes and projects, priority sectors and the connection between the BRI and the previous “going out” strategy China started at the beginning of the twenty-first century. The model and the specific ways China finances and invests in BRI projects, to a great extent, decided the nature of the China-led global infrastructure investment plan. BRI financing is reviewed in detail. Based on the geopolitical and geo-economic analysis of the BRI in the previous parts, the implications of the BRI for global governance as it goes beyond the ambitious infrastructure investment plan are revealed. The risks and problems facing the BRI and the controversy and criticism it has encountered are also addressed. Finally, the paper summarizes the BRI’s ever-expanding themes and the problems and risks it faces, and their implications for the future of the BRI.
Topic:
Development, Imperialism, Infrastructure, Belt and Road Initiative (BRI), and Strategic Competition
Political Geography:
China and Asia

48. Insights into China’s Developing Country Status

Author:
Tao Ma
Publication Date:
10-2019
Content Type:
Working Paper
Abstract:
As the international status of China as a rising power has been growing rapidly in the past 40 years, along with remarkable achievements in economic growth, China’s developing country status has been questioned by some Western developed countries. In January 2019, the US submitted to the WTO General Council the proposal An Undifferentiated WTO: Self-Declared Development Status Risks Institutional Irrelevance (WT/GC/W/757), presenting data arguing that China and some other developing countries had advanced to such an extent that they should be limited from being eligible for special and differential treatment and should give up their developing country status. During the WTO General Council meeting at the end of February, China and other developing countries hotly debated this issue with the US. China insisted that developing countries were confronted with mounting external tensions and their legitimate rights and interests in some international organizations and agreements had been constantly challenged. Against this background, it is critical to clarify China’s ongoing status as a developing country. Only after the real divide between China and developed countries has been clarified can China’s status as a developing country be secured.
Topic:
Development, Economics, and Trade
Political Geography:
China, Asia, and United States of America

49. Forty Years Development of China’s Outward Foreign Direct Investment: Retrospect and the Challenges Ahead

Author:
Tao Wang and Kailin Gao
Publication Date:
05-2019
Content Type:
Working Paper
Abstract:
Outward foreign direct investment (OFDI) has increasingly become an importantmethod for China to integrate into the world economy. This paper comprehensivelyreviews and analyses policy development and the changing pattern of China’s OFDIover the past 40 years. We divide the development into “restricted” (1978–1999), “relaxed” (2000–2016) and “regulated” (2017 onwards) stages. This paper alsoreviews literature on the impact of Chinese OFDI on China and host countries. Despite its generally positive ef ects, large-scale and unbalanced OFDI activitieshave alarmed Chinese policy-makers. Both developing and developed host countrieshave expressed their concern over national security and the misbehavior of someChinese overseas enterprises. Therefore, greater supervision and adjustment fromquantity to quality growth is necessary for the future development of China’s OFDI.
Topic:
Development, History, and Foreign Direct Investment
Political Geography:
China and Asia

50. Engaging with India’s Electrification Agenda: Powering Assam

Author:
Stephen Naimoli and Kartikeya Singh
Publication Date:
09-2019
Content Type:
Working Paper
Institution:
Center for Strategic and International Studies
Abstract:
Assam is the most populous and economically active of the northeastern states and thus acts as the nexus between the mainland and the northeast. Due to insurgencies and armed conflict spanning several decades, Assam struggled to deliver many basic services to its citizens, including electricity, and failed to attract major industries. Coupled with the state’s unique topography of Himalayan foothills, forests, and a massive floodplain dominated by the mighty Brahmaputra River, infrastructure development in the state has not been easy. However, with the settling of several conflicts, the state is poised to be the economic engine of India’s northeast and take its place as India’s gateway to southeast Asia. To do so, it is focusing on agriculture, led by a thriving tea industry and energy resources—the state accounts for 15 percent of India’s total crude oil and 50 percent of onshore natural gas output. On the power sector side, Assam has increased the share of its population with electricity access from 44.57 percent in 2015 to 100 percent in 2019. An important measure of the health of the state’s electric power sector is aggregate technical and commercial losses (AT&C), which measure line losses from transmission and distribution equipment, power theft, billing and collection inefficiencies, and customers’ inability to pay. Assam’s AT&C losses in 2015 were 24.2 percent. Under the state’s Power for All plan formed with the central government, the state’s utility Assam Power Distribution Corporation Limited (APDCL) would target AT&C losses of 18.15 percent in 2019. As of August 2019, this goal has virtually been met—APDCL’s AT&C losses are currently 18.2 percent. Under the central government’s Ujwal Discom Assurance Yojana (UDAY) scheme, which aims to improve the financial health of the country’s utilities, Assam has a target of 150,000 smart meters for customers with monthly consumption between 200-500 kilowatt-hours (kWh) by December 2019. As of August 2019, the state has deployed 15,567 smart meters for these customers, 10 percent of its goal. The state also had a target to deploy 31,000 smart meters for customers with monthly consumption of over 500 kWh per month by December 2017, but to date has only deployed 11,881 smart meters, 38 percent of its goal. Assam has a target to install 663 megawatts (MW) of solar power in the state to contribute to the central government’s target of 100 gigawatts by 2022. As of May 2019, data from the Ministry of New and Renewable Energy indicate it has installed 22.4 MW, 3.38 percent of its goal.
Topic:
Development, Energy Policy, and Electricity
Political Geography:
India and Asia

51. The Art of Summitry

Author:
Judd Devermont
Publication Date:
09-2019
Content Type:
Working Paper
Institution:
Center for Strategic and International Studies
Abstract:
It has recently become fashionable to host a regional summit with African leaders. The Arab states, China, the European Union, France, India, Russia, and Turkey all established high-profile diplomatic forums with African counterparts. Japan has been one of the pacesetters, inviting African governments, as well as multilateral institutions, to attend TICAD since 1993. TICAD’s seventh iteration, which was staged in Yokohama from August 28- 30, 2019, welcomed 42 African presidents, vice presidents, and prime ministers and witnessed the signing of 110 memorandums of understanding (MOUs) with African countries and private-sector companies.1,2 The United States chaired one such event, the U.S.-Africa Leaders Summit, in August 2014. While it represented a milestone in U.S.-African diplomatic engagement, the United States has not attempted anything on the same scale since. In 2016, the U.S. Department of Commerce with Bloomberg Philanthropies chaired a second U.S.-Africa Business Forum. President Trump met with eight sub-Saharan African leaders on the margins of the UN General Assembly in 2017 and separately invited Nigerian president Muhammadu Buhari and Kenyan president Uhuru Kenyatta to the White House in 2018. If the U.S. government decides to resume the U.S.-Africa Leaders Summit, it has the potential to deepen ties between the United States and African counterparts, as well as promote trade and investment and advance signature initiatives.
Topic:
Development, Foreign Aid, Leadership, and Humanitarian Intervention
Political Geography:
Africa, Japan, Asia, North America, and United States of America

52. Determinants of Developing Countries' Export Upgrading: The Role of China and Productive Investment

Author:
Dic Lo and Yue Teng
Publication Date:
09-2019
Content Type:
Working Paper
Institution:
School of Oriental and African Studies - University of London
Abstract:
This paper explores the determinants of developing countries' export upgrading measured by export sophistication. In particular, as a response to the recent debate on China's impact on developing countries' industrialisation, we examine a new hypothesis that the considerable growth in developing countries' trade with China may serve as a source of productive investment for their export upgrading. Dynamic panel estimations based on HS 6-digit export data on 62 developing countries during 1995-2014 show the positive effects of human capital, productive investment, and absolute gains from trade with China measured by income terms of trade vis-à-vis China. Mediation analysis finds that the positive effect of trade with China on export upgrading takes effect largely through its enhancing effect on productive investment, which supports our hypothesis. By contrast, China's direct export-downgrading impact is minor. Our findings suggest that, for developing countries, China serves more as a stimulator of capital accumulation for industrial development than a competitor in manufacturing market or a predator of natural resources. This provides an alternative to the widespread argument of China's crowding-out and re- primarisation impact on developing countries. The priority for developing countries is therefore the appropriate use of the gains from trade for productive purposes.
Topic:
Development, International Trade and Finance, Hegemony, Investment, Exports, and Foreign Interference
Political Geography:
China and Asia

53. Innocent Bystanders

Author:
Judd Devermont and Catherine Chiang
Publication Date:
04-2019
Content Type:
Working Paper
Institution:
Center for Strategic and International Studies
Abstract:
Speaking at the United Nations General Assembly, President Nana Akufo-Addo of Ghana warned of the repercussions of escalating U.S.-China trade tensions on African nations. Although largely absent from the discourse surrounding the so-called “trade war,” sub-Saharan Africa has suffered from its impacts. Uncertainty hovering over global and African markets has already undermined investor confidence, triggering drops in commodity prices and local currencies. A slowdown in Chinese production and global growth could threaten to throw African markets further off balance. U.S. protectionist measures stand out for their repercussions on African economies and U.S.-Africa relations. Tariff tensions risk indirectly undercutting U.S. goals of promoting African self-reliance, increasing U.S.-Africa trade and investment, and countering China’s expanding influence on the continent.
Topic:
Development, Hegemony, Conflict, and Trade Wars
Political Geography:
Africa, China, Asia, North America, and United States of America

54. Demand-Driven Youth Training Programs: Experimental Evidence from Mongolia

Author:
José Galdo, Bayarmaa Dalkhjavd, Altantsetseg Batchuluun, Soyolmaa Batbekh, and Maria Laura Alzúa
Publication Date:
08-2019
Content Type:
Working Paper
Institution:
Center for Distributive, Labor and Social Studies (CEDLAS)
Abstract:
Because of its high incidence and potential threat to social cohesion, youth unemployment is a global concern. This study uses a randomized controlled trial to analyze the effectiveness of a demand-driven vocational training program for disadvantaged youth in Mongolia. Mongolia, a transitional country whose economic structure shifted from a communist, centrally planned economy to a free-market economy over a relatively short period, offers a new setting in which to test the effectiveness of standard active labor market policies. This study reports positive and statistically significant short-term effects of vocational training on monthly earnings, skills matching, and self-employment. Substantial heterogeneity emerges as relatively older, richer, and better-educated individuals drive these positive effects. A second intervention that randomly assigns participants to receive repetitive weekly newsletters with information on market returns to vocational training shows positive impacts on the length of exposure to and successful completion of the program. These positive effects, however, are only observed at the intensive margin and do not lead to higher employment or earnings outcomes.
Topic:
Development, Economics, Industrial Policy, Labor Issues, Employment, Youth, and Labor Policies
Political Geography:
Mongolia and Asia

55. Infrastructure development in the Northeast: Hydropower, natural resources, legal and institutional frameworks and compliance

Author:
Manju Menon
Publication Date:
05-2019
Content Type:
Working Paper
Institution:
Centre for Policy Research, India
Abstract:
In 2000, the central government declared Northeast India as India’s hydropower hub. Over 165 large dam projects were proposed to come up in the region. These projects were held as crucial to India’s energy and environmental security as well as the economic development of the country’s marginalised northeastern borderlands.However, nearly two decades on, this proposal to regulate the region's water resources remains unimplemented. In addition, the projects have generated a lot of public opposition in Arunachal Pradesh where most of these dams are supposed to be situated, and in the downstream Brahmaputra valley of Assam. This article will look into the government's hype and failure to construct hydropower dams in the Northeast region. It points to the need for a reflexive political decision on water resource management from the BJP-led governments in Assam, Arunachal Pradesh and at the Centre.
Topic:
Development, Energy Policy, Government, Natural Resources, and Infrastructure
Political Geography:
South Asia, India, and Asia

56. A debate with the Kurdistan Region’s President

Author:
Middle East Research Institute
Publication Date:
12-2019
Content Type:
Working Paper
Institution:
Middle East Research Institute (MERI)
Abstract:
This timely session was dedicated to a debate with the President of Kurdistan Region of Iraq (KRI) to discuss central geo-political and domestic developments, including the protests and the crisis of governance in Baghdad; the Turkish invasion of Northern Syria (particularly Rojava); and finally, the effects of internal political fissures within the KRI.
Topic:
Development, Governance, and Geopolitics
Political Geography:
Iraq, Europe, Turkey, Middle East, Asia, Baghdad, Syria, and Kurdistan

57. The Rise of China as a Cybersecurity Industrial Power: Principles, Drivers, Policies, and International Implications

Author:
Tai Ming Cheung
Publication Date:
09-2018
Content Type:
Working Paper
Institution:
Berkeley APEC Study Center
Abstract:
This paper examines China’s cybersecurity industrial development over the past two decades since the arrival of the internet in that country. This analysis takes place from a primarily security and technology perspective because the national security apparatus occupies a powerful presence in China’s cyber affairs. Moreover, the development of the cybersecurity industry is significantly driven by the development of technological capabilities. Key issues explored include: 1) Chinese decision-making and thinking on cybersecurity development within the context of the Chinese leadership’s general approach to development, national security, and technology advancement; 2) the nature and characteristics of recent Chinese cybersecurityrelated development strategies and plans; 3) the drivers behind the development of China’s cybersecurity industry, looking especially at market failures, national security rationales, and government intervention; 4) the proliferation of principal actors and coalitions in the Chinese cybersecurity industry and how this influences its development; and 5) the nature of the relationship between the state and cybersecurity firms, in particular examining four types of interactions: the state as a customer; state hiring of talent; the state’s direct regulatory power, and the state as an investor. The paper concludes by considering the international implications of China’s rise as an increasingly capable and confident cybersecurity power.
Topic:
Development, Science and Technology, Cybersecurity, and Industry
Political Geography:
China and Asia

58. Nationalism and development in Asia

Author:
Prasenjit Duara
Publication Date:
08-2018
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
This paper identifies historic patterns in the dialectic between nationalism and development across various East, South, and Southeast Asian nations. Nationalism as the rationale for development is used by regimes to achieve high levels of growth, but also generates exclusivism and hostilities, often in order to integrate a political core. Popular nationalism has also dialectically reshaped the goals and patterns of development during the post-Second World War period. The region is divided into zones shaped by twentieth-century historical and geo-political conditions. Colonial and Cold War conditions were as important as internal political and ethnic circumstances. Turning points in the dialectical relationship were common within a region. More recently, a common transregional pattern has emerged with neoliberal globalization being accompanied by exclusivist nationalism.
Topic:
Development, Nationalism, War, History, and Colonialism
Political Geography:
Asia

59. What Is the U.S. Trade and Development Agency?

Author:
Daniel F. Runde and Romina Bandura
Publication Date:
01-2018
Content Type:
Working Paper
Institution:
Center for Strategic and International Studies
Abstract:
The U.S. Trade and Development Agency (USTDA) is a small independent federal agency whose mission is to help American “companies create U.S. jobs through the export of U.S. goods and services for priority development projects in emerging economies.” USTDA links American businesses to export opportunities in emerging markets by funding activities such as project preparation and partnership building in sectors including transportation, energy, and telecommunications. Since it was established 25 years ago, the agency has generated a total of $61 billion in U.S. exports and supported over 500,000 American jobs. In connecting American business to such opportunities, USTDA also links American technology’s best practices and ingenuity with U.S. trade and development policy priorities. USTDA is an instrument to enable American-led infrastructure development in emerging economies and, therefore, frequently sees increasing competition from government-backed Chinese firms and the challenge they can pose to American commercial engagement under the flag of One Belt, One Road (OBOR). OBOR is paving the way for Chinese engineering, procurement, and construction companies to prepare and develop infrastructure projects in OBOR countries in a way that favors Chinese standards, thereby exerting significant pressure to select Chinese suppliers. This creates a potentially vicious cycle—the more China builds, the faster their standards become the international norm, and, ultimately, this cycle could foreclose export opportunities for U.S. businesses and harm American competitiveness in global infrastructure development. U.S. exporters are increasingly requesting USTDA intervention at the pivotal, early stages of a project’s development, to compete in markets, such as the OBOR countries, where they frequently face Chinese competition. Of note, 40 percent of USTDA’s activities in 2016 were in OBOR countries across South and Southeast Asia, Central Asia, the Middle East, and Africa. Although there are other agencies that may seem to do work similar to USTDA, there are various aspects that make it a unique agency. This paper provides a brief description of USTDA, its origin and evolution, the impact on the U.S. economy and its proactive collaboration across U.S agencies. Finally, it offers a set of recommendations for USTDA on how to improve its operations and strengthen its role in the developing world.
Topic:
Development, Energy Policy, Communications, Infrastructure, Trade, and Transportation
Political Geography:
Africa, United States, Middle East, Asia, and North America

60. Made in China 2025 as a Challenge in Global Trade Governance: Analysis and Recommendations

Author:
Anton Malkin
Publication Date:
08-2018
Content Type:
Working Paper
Institution:
Centre for International Governance Innovation
Abstract:
This paper provides a reassessment of Made in China 2025 (MIC 2025) — China’s industrial policy framework aimed at helping the country overcome the much-maligned middle-income trap — in the context of global trade governance. It suggests that China’s industrial policies have been viewed too narrowly — without sufficient attention to longer-term global governance issues — by a large segment of the global business and policy-making community. The paper argues that the general aims of MIC 2025 and the policies that underpin them are not unreasonable, given the increasingly prevalent dilemmas in global trade that China’s leaders are grappling with. These include problems of international development arising from growing global industrial concentration — driven by the growth of the intangible economy — and China’s shrinking access to importing and developing technological components (such as semiconductor chips) that are increasingly characterized as “dual-use” by China’s trading partners. This suggests that resolving the concerns of China’s trading partners regarding China’s industrial policies requires global trade governance reform to ensure an equitable, rules-based global trading order that addresses the legitimate needs of developing and middle-income economies in acquiring foreign-owned technological components and know-how, for the purposes of economic development. The paper concludes by outlining specific recommendations for Canada’s policy makers in improving their economic relationship with China in the context of MIC 2025.
Topic:
Development, Industrial Policy, Science and Technology, Governance, and Free Trade
Political Geography:
China, Canada, Asia, and North America