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62. Japan’s Expanded Regional Security Role: The Challenge of China
- Author:
- Eyal Ben-Ari
- Publication Date:
- 01-2022
- Content Type:
- Working Paper
- Institution:
- Jerusalem Institute for Strategy and Security (JISS)
- Abstract:
- Japan’s steady build-up of its substantial military power is based on a realistic view of meeting current security challenges, especially those presented by China.
- Topic:
- Security, Military Strategy, Conflict, and Strategic Interests
- Political Geography:
- Japan, China, and Asia
63. China’s increased presence in Latin America: Win-win relations or a new dependency? A state of the art
- Author:
- Daniel Agramont Lechín
- Publication Date:
- 01-2022
- Content Type:
- Working Paper
- Institution:
- Postgraduate Program on Sustainable Development and Social Inequalities in the Andean Region (trAndeS)
- Abstract:
- The rise of the Popular Republic of China (PRC) is one of the most significant events in contemporary international relations. However, at the global level, the “reemergence of China as a major global power has led to a considerable debate over the likely consequences for the rest of the world” (Jenkins, 2010: 810). China’s growing power raises questions as to the meaning of its superpower status as a nation, and the impact of its newfound influence in not only the Asia-Pacific region, but also the Global South (Dessein, 2015). In the specific case of Latin America and the Caribbean (LAC), the debate centers on the potential disadvantages that China’s vast supply of financial resources might bring for the region. Accordingly, the current paper is intended to examine the debate that has arisen in recent literature around the impact of China’s increased economic presence on Latin America –with win-win relations on the one hand and new dependency on the other.
- Topic:
- International Relations, Economics, Investment, and Dependency
- Political Geography:
- China, Asia, and Latin America
64. Proceed with Caution: Israeli Research Collaboration with China
- Author:
- Casey Babb
- Publication Date:
- 09-2022
- Content Type:
- Working Paper
- Institution:
- Institute for National Security Studies (INSS)
- Abstract:
- For Israel, warming relations with China has, in large part, been driven by pragmatic and enticing economic prospects, with policies focused on seizing the economic opportunity. For Xi and the Chinese Communist Party, the rationale for strengthening relations with Israel has been equally pragmatic, if of a different nature. China has long sought access to Israel’s vaunted innovation and technology sector – one of the most advanced in the world. For these reasons, China-Israel relations have accelerated dramatically, in areas ranging from trade in goods, to investment deals, to diplomatic relations, and beyond. However, over the last few years, and partly in response to mounting US pressure on Israel to reconsider its relations with China, there has been a noticeable cooling of economic activity between the two countries. That being said, if Israel wants to solidify its relationship with the US while limiting the gateways China could conceivably use to access or acquire the country’s technology and innovation in certain dual-use domains, it must also ensure the country’s research, intellectual property, and expert knowledge in these areas is sufficiently protected.
- Topic:
- Security, Science and Technology, Bilateral Relations, Intellectual Property/Copyright, Innovation, and Strategic Interests
- Political Geography:
- China, Middle East, Israel, and Asia
65. Normalization between Turkey and Israel: Will it Last?
- Author:
- Gallia Lindenstrauss and Remi Daniel
- Publication Date:
- 08-2022
- Content Type:
- Working Paper
- Institution:
- Institute for National Security Studies (INSS)
- Abstract:
- The decision by Turkey and Israel to normalize their relations stems from several processes that brought the Turkish side to push for normalization and the Israeli side to respond affirmatively. Yet alongside the serious motivations of the two sides to continue this process, there are issues that could become obstacles. Among them are the developments between Israel and the Palestinians, Turkey-US relations, the dynamics of Turkey's integration in processes related to the Abraham Accords, and the nature of future Israeli plans regarding gas exports. Nonetheless, coping with challenges related to these issues will be easier with senior diplomatic representation present in both countries.
- Topic:
- Diplomacy, Bilateral Relations, Normalization, and Strategic Interests
- Political Geography:
- Europe, Turkey, Middle East, Israel, and Asia
66. China below the Radar: Israel-US Strategic Dialogue on Technology
- Author:
- Assaf Orion and Shira Efron
- Publication Date:
- 07-2022
- Content Type:
- Working Paper
- Institution:
- Institute for National Security Studies (INSS)
- Abstract:
- The statements issued by President Biden during his visit to the Middle East include little mention of China. However, close reading reveals that between the lines, China is quite present in the agreements reached by the President and Israel and Saudi Arabia. The dialogue on technology cooperation announced by Jerusalem and Washington, which is related directly to the Great Power competition, signals a new stage in partnership between the countries: Israel alongside the United States, even if not against China
- Topic:
- Diplomacy, Science and Technology, Bilateral Relations, and Rivalry
- Political Geography:
- China, Middle East, Israel, Asia, North America, and United States of America
67. The Race to Electric Vehicles: Technology, US-China Rivalry, and Big Money
- Author:
- Ariel Sobelman
- Publication Date:
- 06-2022
- Content Type:
- Working Paper
- Institution:
- Institute for National Security Studies (INSS)
- Abstract:
- In recent years Israel has become a leading player in auto tech, and China is interested in Israeli developments in a field that is expected to assume a significant role in the rivalry between Washington and Beijing. Therefore, it is important for Israel to define a national strategy on the issue, in order to avoid unnecessary involvement in the inter-bloc clash
- Topic:
- Green Technology, Innovation, Rivalry, and Electric Vehicles
- Political Geography:
- China, Asia, North America, and United States of America
68. After the Russian “Ruse,” China Looks for New Friends
- Author:
- Galia Lavi
- Publication Date:
- 03-2022
- Content Type:
- Working Paper
- Institution:
- Institute for National Security Studies (INSS)
- Abstract:
- With the Russian invasion of Ukraine, it would seem that Beijing and Moscow should be a united front against the West. But in actuality, China has been surprised by the scale of the Russian aggression and is now rethinking its position in the geopolitical arena. How will this affect the Middle East?
- Topic:
- Foreign Policy, Military Strategy, Conflict, and Strategic Interests
- Political Geography:
- Russia, China, Europe, and Asia
69. Introducing Third Way’s US-China Digital World Order Initiative
- Author:
- Valerie Shen and Jayson Browder
- Publication Date:
- 06-2022
- Content Type:
- Working Paper
- Institution:
- Third Way
- Abstract:
- If it wasn’t clear three months ago, it is clear now: the next global era will be defined by democracy versus autocracy. In this competition, a new and decisive divide pits America’s approach of “digital democracy” against China’s approach of “digital autocracy.” This great divide places the US and allies on one side and China's unfettered access to sensitive data on the other. China’s digital authoritarianism has been described as "one giant QAnon" and is ubiquitous among the 1.4 billion inhabitants of the country. Moreover, one of the greatest threats to American national security interests is if China prevails in exporting and normalizing its model of digital supremacy. China’s global network of surveillance systems is antithetical to liberal democratic values, as it monitors, punishes, and conditions citizens, as well as influences them through automated disinformation campaigns. China’s ambition for global digital supremacy is real and supported by aggressive diplomatic efforts and massive financial investments. The effort by the United States and like nations to maintain a peaceful and prosperous world order will require a level of sophistication and commitment unrivaled in our history. China is not only an adversary. It is sometimes a partner whose massive economy is deeply entwined with that of the US and other friendly nations. This is not the zero-sum game of the Cold War conflict, and the hope is that it never becomes so. Will liberal democracies strengthen and proliferate or weaken and dwindle in the 21st century? The Chinese state intends to shape the global digital order in its image by redrawing technological norms and standards. Ultimately, the US-China national security competition may hinge on who sets the digital world order.
- Topic:
- Science and Technology, Authoritarianism, Democracy, Digital Economy, Innovation, and Rivalry
- Political Geography:
- China, Asia, North America, and United States of America
70. Hidden Defaults
- Author:
- Sebastian Horn, Carmen M. Reinhart, and Christoph Trebesch
- Publication Date:
- 01-2022
- Content Type:
- Working Paper
- Institution:
- Kiel Institute for the World Economy (IfW)
- Abstract:
- China’s lending boom to developing countries is morphing into defaults and debt distress. Given the secrecy surrounding China’s loans, also the associated defaults remain “hidden”, as missed payments and restructuring details are not disclosed. We construct an encompassing dataset of sovereign debt restructurings with Chinese lenders and find that these credit events are surprisingly frequent, exceeding the number of sovereign bond or Paris Club restructurings. Chinese lenders follow a resolution approach reminiscent of 1980s Western lenders; they seldom provide deep debt relief with face value reduction. If history is any guide, multi-year debt workouts with serial restructurings lie in store.
- Topic:
- Development, International Cooperation, Finance, Bonds, and Influence
- Political Geography:
- China and Asia
71. Place-based policies and agglomeration economies: Firm-level evidence from Special Economic Zones in India
- Author:
- Holger Görg and Alina Mulyukova
- Publication Date:
- 03-2022
- Content Type:
- Working Paper
- Institution:
- Kiel Institute for the World Economy (IfW)
- Abstract:
- This paper exploits time and geographic variation in the adoption of Special Economic Zones in India to assess the direct and spillover effects of the program. We combine geocoded firm-level data and geocoded SEZs using a concentric ring approach, thus creating a novel dataset of firms with their assigned SEZ status. To overcome the selection bias we employ inverse probability weighting with time-varying covariates in a difference-in-differences framework. Our analysis yields that conditional on controlling for initial selection, SEZs induced no further productivity gains for within SEZ firms, on average. This effect is predominantly driven by relatively less productive firms, whereas more productive firms experienced significant productivity gains. However, SEZs created negative externalities for firms in the vicinity which attenuate with distance. Neighbouring domestic firms, large firms, manufacturing firms and non-importer firms are the main losers of the program. Evidence points at the diversion of inputs from non-SEZ to SEZ-firms as a potential mechanism.
- Topic:
- Economics, Business, Special Economic Zones, and Geography
- Political Geography:
- India and Asia
72. Cutting through the Value Chain: The Long-Run Effects of Decoupling the East from the West
- Author:
- Gabriel Felbermayr, Alexander Sandkamp, and Hendrik Mahlkow
- Publication Date:
- 03-2022
- Content Type:
- Working Paper
- Institution:
- Kiel Institute for the World Economy (IfW)
- Abstract:
- With ever-increasing political tensions between China and Russia on one side and the EU and the US on the other, it only seems a matter of time until protectionist policies cause a decoupling of global value chains. This paper uses a computable general equilibrium trade model calibrated with the latest version of the GTAP database to simulate the effect of doubling non-tariff barriers - both unilateral and reciprocal - between the two blocks on trade and welfare. Imposing trade barriers almost completely eliminates bilateral imports. In addition, changes in price levels lead to higher imports and lower exports of the imposing country group from and to the rest of the world. The targeted country group increases exports to the rest of the world and reduces imports. Welfare falls in all countries involved, suggesting that governments should strive to cooperate rather than turning away from each other. By imposing a trade war on Russia, the political West could inflict severe damage on the Russian economy because of the latter’s smaller relative size.
- Topic:
- International Cooperation, International Trade and Finance, European Union, Conflict, Trade Wars, Protectionism, and Rivalry
- Political Geography:
- Russia, China, Europe, Asia, North America, and United States of America
73. Can Aid Buy Foreign Public Support? Evidence from Chinese Development Finance
- Author:
- Lukas Wellner, Brad Parks, Axel Dreher, Andreas Fuchs, and Austin M. Strange
- Publication Date:
- 03-2022
- Content Type:
- Working Paper
- Institution:
- Kiel Institute for the World Economy (IfW)
- Abstract:
- Bilateral donors use foreign aid to pursue soft power. We test the effectiveness of aid in reaching this goal by leveraging a new dataset on the precise commitment, implementation, and completion dates of Chinese development projects. We use data from the Gallup World Poll for 126 countries over the 2006–2017 period and identify causal effects with (i) an event-study model that includes high-dimensional fixed effects, and (ii) instrumental-variables regressions that rely on exogenous variation in the supply of Chinese government financing over time. Our results are nuanced and depend on whether we focus on subnational jurisdictions, countries, or groupings of countries.
- Topic:
- Development, Bilateral Relations, Foreign Aid, and Influence
- Political Geography:
- China and Asia
74. Who Lends to Africa and How? Introducing the Africa Debt Database
- Author:
- David Mihalyi and Christoph Trebesch
- Publication Date:
- 03-2022
- Content Type:
- Working Paper
- Institution:
- Kiel Institute for the World Economy (IfW)
- Abstract:
- Africa’s sovereign debt markets are not well understood, partly due to a lack of data. This paper introduces the Africa Debt Database (ADD), the most granular and comprehensive dataset on external borrowing by African governments thus far. Our project moves beyond existing aggregate datasets and instead releases information on individual loans and bonds, in particular on the financial terms of each instrument. Taken together, we cover nearly 7000 loans and bonds between 2000 and 2020, with a total volume of 644 billion USD. Using this data, we study Africa’s record lending boom of the 2010s in detail. The debt boom was mainly driven by large sovereign bond issuances in London and New York, as well as growing lending by Chinese state-owned banks. The micro data also reveal a large variation in lending terms across countries, time, and creditors. Sovereign external bonds have interest rates of 6 percent, on average, Chinese banks charge 2-4 percent, and multilateral organizations just 1 percent. Strikingly, many governments in Africa simultaneously borrow large amounts from both private and official creditors, at vastly different rates. The large differences in debt servicing costs are indicative of a cross-creditor subsidy, as cheap concessional loans can be used to pay the high interest to private or Chinese creditors.
- Topic:
- Economics, Foreign Aid, Credit, and Influence
- Political Geography:
- Africa, China, and Asia
75. Who wins and who loses from state subsidies?
- Author:
- Sourafel Girma, Holger Görg, and Ignat Stepanok
- Publication Date:
- 05-2022
- Content Type:
- Working Paper
- Institution:
- Kiel Institute for the World Economy (IfW)
- Abstract:
- China is perceived to rely on subsidizing firms in targeted industries to improve their performance and stay competitive. We implement an approach that allows for the joint estimation of direct and indirect effects of subsidies on subsidized and non-subsidized firms. We find that firms that receive subsidies experience a boost for productivity. However, our approach highlights the importance of indirect effects, which are generally neglected in the literature. We find that, in general but not always, non-subsidized firms experience reductions in their productivity growth if they operate in a cluster where other firms are subsidized. These negative externalities depend on the share of firms that receive subsidies in the cluster. Aggregating direct and indirect effects into a (weighted) total effect shows that this negative indirect effect tends to dominate. We interpret our results in the light of a simple heterogenous firm type model, which highlights that subsidization, in a competitive environment of firms, may potentially harm non-subsidized firms.
- Topic:
- Governance, Business, Subsidies, and Competition
- Political Geography:
- China and Asia
76. A Primer on the 2022 National Security Strategy
- Author:
- Peter Juul and Heba Malik
- Publication Date:
- 10-2022
- Content Type:
- Working Paper
- Institution:
- Center for American Progress - CAP
- Abstract:
- The 2022 National Security Strategy introduces new ideas on navigating strategic competition with China and Russia, investing at home, and a renewed focus on the fight against climate change.
- Topic:
- Security, Climate Change, National Security, Rivalry, and Strategic Interests
- Political Geography:
- Russia, China, Europe, Asia, North America, and United States of America
77. Black Mirror Statecraft: Combating PRC Hostile Social Manipulation and Sharp Power in an Era of Great Power Competition
- Author:
- Jonathan Lushenko
- Publication Date:
- 02-2022
- Content Type:
- Working Paper
- Institution:
- Council on International Policy (CIP)
- Abstract:
- The Netflix television hit Black Mirror postulates a world in which personal mobile devices and other forms of interconnected infosphere technology produce alarming and increasingly animalistic human behavior. In the episode titled “Nosedive,” the main protagonist struggles to boost her social credit score – an algorithmic rating of all daily social interactions – to enhance her socio-economic status, earn special privileges, and sustain access to basic human resources through mostly contrived and inauthentic behavior. At first, this Twilight Zone-type plot seems unbelievable until realizing that a social credit system now exists in the People’s Republic of China (PRC).
- Topic:
- Science and Technology, Communications, Governance, and Public Opinion
- Political Geography:
- China and Asia
78. Arresting Nuclear Adventurism: China, Article VI, and the NPT
- Author:
- Henry Sokolski and Andrea Beck
- Publication Date:
- 06-2022
- Content Type:
- Working Paper
- Institution:
- Nonproliferation Policy Education Center
- Abstract:
- Given the current crisis in Ukraine, it’s tempting to consider focusing on Chinese compliance with the Nuclear Nonproliferation Treaty (NPT) to be an academic indulgence. Giving into this inclination, however, would be a mistake. As dangerous as Russia currently is, China will be more threatening in the long run. As we are learning with Russia’s violation of the 1994 Budapest Memorandum, enforcing binding understandings is critical lest violators run roughshod over law and good order. This is true with Russia’s behavior in Ukraine. It is no less so with China’s nuclear weapons buildup and its repeated refusal to join in good faith negotiations to limit its nuclear weapons activities, which is required by Article VI of the NPT. This buildup and refusal clearly flies in the face of China’s legal NPT obligations. The question is what might bring Beijing back into compliance. To get the answers, NPEC held a battery of workshops last fall, followed by a week-long diplomatic simulation. The game participants included U.S., Japanese, and Australian former and current officials and staff as well as outside experts. The group concluded that Beijing is unlikely to comply willingly with the NPT anytime soon, but that U.S. and international security would still be best served by spotlighting Beijing’s nuclear adventurism and suggesting diplomatic off-ramps to arrest its nuclear buildup.
- Topic:
- Arms Control and Proliferation, Diplomacy, Military Strategy, Peace, and Nonproliferation Treaty (NPT)
- Political Geography:
- Russia, China, Europe, Ukraine, and Asia
79. China's Course to Carbon Neutrality
- Author:
- Cory Combs
- Publication Date:
- 09-2022
- Content Type:
- Working Paper
- Institution:
- Asia Society
- Abstract:
- China is in the midst of a wholesale economic transformation, driven by the central government’s pursuit of sustainability in all its forms: economic, social, and environmental. At the heart of this transformation sit Xi Jinping’s “dual carbon” targets: one to peak emissions before 2030, and the other to achieve carbon neutrality before 2060. However, such straightforward guiding targets belie the monumental complexity of unraveling and then rebuilding the fossil fuel–driven economy that enabled China’s rapid rise as a global economic power. The difficulties of moving China’s economy up the value chain – particularly from low-grade, emissions-intensive industrial manufacturing toward high value-add, green and low-carbon production – are compounded by the immense political frictions posed by entrenched interests and bureaucratic inertia. In this context, it is imperative for observers – particularly those keen on engaging with China during its grand green transformation experiment – to understand the many pieces, players, and problems involved. To this end, this report takes stock of China’s planning and reform efforts across the domains of climate, energy, and industrial upgrading since the 14th Five-Year Plan (2021–2025) was adopted. It then assesses the key drivers and constraints shaping these efforts, with the aim of elucidating the most likely path ahead – even as Beijing itself continues to map it out.
- Topic:
- Climate Change, Environment, Economy, Sustainability, and Carbon Emissions
- Political Geography:
- China and Asia
80. China’s 20th Party Congress Leadership Reshuffle: Stasis or Sweep?
- Author:
- Christopher K Johnson
- Publication Date:
- 10-2022
- Content Type:
- Working Paper
- Institution:
- Asia Society
- Abstract:
- President and Chinese Communist Party (CCP) General Secretary Xi Jinping successfully thwarted another “Twitter coup” in late September 2022, making clear he will remain China’s top leader for at least the next five years. But there is much less certainty about who else will make up the new leadership team at the 20th Party Congress that will assist Xi in guiding the country through its most challenging period in decades. There are virtually no hard rules in CCP politicking limiting the range of possible outcomes, and even the “norms” that are often cited as governing the process of choosing a new leadership lineup are, at best, loose conventions rather than predictable practices. Xi’s extreme centralization of power also means that China’s already deeply opaque political system is even more so, and more than two and a half years of COVID isolation for China has made it much more challenging to glean authoritative insights. Nevertheless, one still gets a very clear sense that the personnel arrangements for the party congress are largely in hand, and that Xi Jinping is firmly in command and very comfortable with them. If we accept that as the baseline, it is possible to deduce the most likely scenarios for personnel turnover at the apex of CCP power and decision-making, the Politburo Standing Committee (PBSC). As with so many things in Xi Jinping’s unique political universe, it seems that the outcome will probably be one of two fairly binary, and perhaps nearly equally likely, possibilities. The first, a “stasis” scenario, would see very little change to the PBSC as Xi either strictly adheres to the convention, followed since 2002, that officials 68 or older must retire, or largely abides by it except for some PBSC incumbents, most probably Premier Li Keqiang, who may step down even though he is 67. In the second “sweep” scenario, Xi could adjust the age criteria downward or just outright ignore it, creating a lot more room for new entrants to the PBSC.
- Topic:
- Leadership, Domestic Politics, Political Parties, Xi Jinping, and Chinese Communist Party (CCP)
- Political Geography:
- China and Asia