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  • Author: Jie Bai, Jiahua Liu
  • Publication Date: 12-2019
  • Content Type: Working Paper
  • Institution: The John F. Kennedy School of Government at Harvard University
  • Abstract: It is well known that various forms of non-tariff trade barriers exist within a country. Empirically, it is difficult to measure these barriers as they can take many forms. We take advantage of a nationwide VAT rebate policy reform in China as a natural experiment to identify the existence of these intranational barriers due to local protectionism and study the impact on exports and exporting firms. As a result of shifting tax rebate burden, the reform leads to a greater incentive of the provincial governments to block the domestic flow of non-local goods to local export intermediaries. We develop an open-economy heterogenous firm model that incorporates multiple domestic regions and multiple exporting technologies, including the intermediary sector. Consistent with the model’s predictions, we find that rising local protectionism leads to a reduction in interprovincial trade, more “inward-looking” sourcing behavior of local intermediaries, and a reduction in manufacturing exports. Analysis using micro firm-level data further shows that private companies with greater baseline reliance on export intermediaries are more adversely affected.
  • Topic: International Trade and Finance, Political Economy, Reform, Tariffs
  • Political Geography: China, Asia
  • Author: Jie Bai, Panle Barwick, Shengmao Cao, Shanjun Li
  • Publication Date: 11-2019
  • Content Type: Working Paper
  • Institution: The John F. Kennedy School of Government at Harvard University
  • Abstract: Are quid pro quo (technology for market access) policies effective in facilitating knowledge spillover to developing countries? We study this question in the context of the Chinese automobile industry where foreign firms are required to set up joint ventures with domestic firms in return for market access. Using a unique dataset of detailed quality measures along multiple dimensions of vehicle performance, we document empirical patterns consistent with knowledge spillovers through both ownership affiliation and geographical proximity: joint ventures and Chinese domestic firms with ownership or location linkage tend to specialize in similar quality dimensions. The identification primarily relies on within-product variation across quality dimensions and the results are robust to a variety of specifications. The pattern is not driven by endogenous joint-venture network formation, overlapping customer base, or learning by doing considerations. Leveraging additional micro datasets on part suppliers and worker flow, we document that supplier network and labor mobility are important channels in mediating knowledge spillovers. However, these channels are not tied to ownership affiliations. Finally, we calibrate a simple learning model and conduct policy counterfactuals to examine the role of quid pro quo. Our findings show that ownership affiliation facilitates learning but quality improvement is primarily driven by the other mechanisms.
  • Topic: International Trade and Finance, Science and Technology, Developing World
  • Political Geography: China, Asia
  • Author: Jie Bai, Ludovica Gazze, Yukun Wang
  • Publication Date: 10-2019
  • Content Type: Working Paper
  • Institution: The John F. Kennedy School of Government at Harvard University
  • Abstract: Collective reputation implies an important externality. Among firms trading internationally, quality shocks about one firm’s products could affect the demand of other firms from the same origin country. We study this issue in the context of a large-scale scandal that affected the Chinese dairy industry in 2008. Leveraging rich firm-product level administrative data and official quality inspection reports, we find that the export revenue of contaminated firms dropped by 84% after the scandal, relative to the national industrial trend, and the spillover effect on non-contaminated firms is measured at 64% of the direct effect. Notably, firms deemed innocent by government inspections did not fare any better than noninspected firms. These findings highlight the importance of collective reputation in international trade and the challenges governments might face in signaling quality and restoring trust. Finally, we investigate potential mechanisms that could mediate the strength of the reputation spillover. We find that the spillover effects are smaller in destinations where people have better information about parties involved in the scandal. New firms are more vulnerable to the collective reputation damage than established firms. Supply chain structure matters especially in settings where firms are less vertically integrated and exhibit fragmented upstream-downstream relationships.
  • Topic: International Trade and Finance, Markets, Business , Global Political Economy, Accountability
  • Political Geography: China, Asia
  • Author: Joseph Halevi
  • Publication Date: 11-2019
  • Content Type: Working Paper
  • Institution: Institute for New Economic Thinking (INET)
  • Abstract: The paper highlights the position of German authorities, showing that they were quite lucid about the fundamental weaknesses inherent in a process that separated monetary from fiscal policies by giving priority to the centralization of the former. Instead of repeating the well known critiques levelled against the EMU – for which readers are referred to the unsurpassed treatment by Stiglitz, the essay highlights the splintering of Europe in the way in which it has unfolded during the 1990s and in the first decade of the present millennium. In particular the early economic and political origins of the terminal crisis of Italy are located between the late 1980s and the 1990s. France is shown to belong increasingly to the so-called European periphery by virtue of a weakening industrial structure and persistent balance of payments deficits. The paper argues that France regains its central role by political means and through its weight as an active nuclear military power centered on maintaining its imperial interests and posture especially in Africa. The first decade of the present millennium is portrayed as the period in which a distinct German economic area had been formed in the midst of Europe with a strong drive to the east with an increasingly powerful gravitational pull towards the People’s Republic of China.
  • Topic: Economics, International Political Economy, Political Economy, History, Macroeconomics
  • Political Geography: Africa, China, Europe, Asia, Germany, Global Focus
  • Author: Kai Gehring, Lennart C. Kaplan, Melvin H.L. Wong
  • Publication Date: 10-2019
  • Content Type: Working Paper
  • Institution: Empirical Studies of Conflict Project (ESOC)
  • Abstract: China’s development model challenges the approaches of traditional Western donors like the World Bank. We argue that both aim at stability, but differ in the norms propagated to achieve that. Using fixed effects and IV estimations, we analyze a broad range of subnational stability measures in Africa. Aid by both the WB and China does not increase outright conflict nor any type of citizen protest, on average. Both even reduce outright conflict by governments against civilians. Still, Chinese aid is associated with more government repression and an increased acceptance of authoritarian norms, while WB projects strengthen democratic values.
  • Topic: Development, International Political Economy, Political Economy, World Bank, Developing World
  • Political Geography: Africa, China
  • Author: Euan Graham, Chengxin Pan, Ian Hall, Rikki Kersten, Benjamin Zala, Sarah Percy
  • Publication Date: 03-2018
  • Content Type: Working Paper
  • Institution: Australian National University Department of International Relations
  • Abstract: In this Centre of Gravity paper, six of Australia’s leading scholars and policy experts debate Australian participation in the ‘Australia-India-Japan-United States consultations on the Indo-Pacific’ - known universally as the ‘Quad’. A decade since its first iteration, the revival of the Quad presents significant questions for Australia and the regional order. Is the Quad a constructive partnership of the region’s major powers to safeguard regional stability, uphold the rules-based order and promote security cooperation? Is it a concert of democracies seeking to contain China? Or is it an emerging strategic alignment that risks precipitating the very confrontation with China it seeks to avoid? Or is it something else entirely? Euan Graham opens the debate by arguing that the Quad represents a rare second chance for Australia to cooperate with regional powers who have a shared interest is the maintenance of stability in Asia through the preservation of a balance of power. In addition to constraining China’s strategic choices beyond its maritime periphery, Dr. Graham argues that the Quad’s revival aims to send a concerted strategic signal to China along the four compass points of the Indo-Pacific region, but sufficiently restrained to avoid significant blowback from Beijing. Chengxin Pan responds that instead of forcing China to change tack, the Quad, by exacerbating China’s strategic vulnerability, will achieve precisely the opposite: prompting it to further strengthen its military capabilities. Dr. Pan argues that the nature of China’s challenge to the existing regional order is actually geoeconomic in design, as evidenced by the Belt and Road Initiative. To meet this challenge, however, the Quad’s military response is far from the right answer or an effective alternative. Ian Hall next argues that the Quad is neither a proto-alliance nor an instrument for containing China. Given that these states have so far failed to advance a coherent and coordinated line on Chinese initiatives to transform the region, Dr. Hall notes that the Quad offers something more prosaic and evolutionary: a forum for discussion and information exchange intended to lead to better policy coordination between like-minded states with a stake in the rules-based order. Rikki Kersten notes that the Japanese government wants Quad 2.0 to be seen as a Japanese initiative because it aspires to lead an ethical endeavour that reaches beyond the Asia-Pacific region. This represents a stepchange in post-war Japanese foreign and security policy thinking. Japan under Abe is seeking to harness rising insecurity to underpin its own regional leadership credentials and enhance the geographical scope of its security policy ambition. Benjamin Zala responds that the potential risks associated with sending containment-like signals to Beijing in the short-term and the potential for misperceptions over ambiguous commitments during a future crisis in the longer-term clearly outweigh the benefits of the current vague aspiration to cooperation with no clear purpose. Dr. Zala also warns against blurring the lines between formal military alliances and strategic partnerships like the Quad which increase the odds of miscalculation during times of power transition. Finally, Sarah Percy rounds out the debate by arguing that discussions of the Quad’s high politics have thus far obscured the more practical and interesting questions about how it might function and contribute to maritime security. Dr. Percy notes that that the day-to-day operations of most navies are focused on the more proximate security challenges posed by maritime crime. The Quad would yield tangible and possibly lasting benefits from such cooperation.
  • Topic: Conflict Prevention, Diplomacy, Military Affairs, Maritime
  • Political Geography: United States, Japan, China, India, Asia, Australia
  • Publication Date: 01-2018
  • Content Type: Working Paper
  • Institution: LSE IDEAS
  • Abstract: This LSE IDEAS Special Report - with senior contributors from politics, journalism, and academia - looks at the internal causes and consequences of the return of the 'Middle Kingdom'. It explores the extent to which Deng's momentous economic reforms in 1978 have shaped modern China, what the country's expanded international role under Xi means, and who really makes Chinese foreign policy.
  • Topic: International Affairs, Global Political Economy
  • Political Geography: China
  • Author: Qiyuan Xu
  • Publication Date: 01-2018
  • Content Type: Working Paper
  • Institution: Institute of World Economics and Politics
  • Abstract: In 2017, the Chinese economy rebounded more significantly than expected. There is now general anticipation that growth in 2018 will fall slightly compared with that of 2017, but that it will remain stable at 6.5 percent or above. However, there are some factors that could lead to downward pressure on investment and consumption in 2018
  • Topic: International Political Economy, International Affairs
  • Political Geography: China
  • Author: Yi Huang, Chen Lin, Sibo Liu, Heiwai Tang
  • Publication Date: 04-2018
  • Content Type: Working Paper
  • Institution: Centre for Trade and Economic Integration, The Graduate Institute (IHEID)
  • Abstract: On March 22, 2018, Trump proposed to impose tariffs on up to $50 billion of Chinese imports leading to a significant concern over the "Trade War" between the US and China. We evaluate the market responses to this event for firms in both countries, depending on their direct and indirect exposures to US-China trade. US firms that are more dependent on exports to and imports from China have lower stock and bond returns but higher default risks in the short time window around the announcement date. We also find that firms' indirect exposure to US-China trade through domestic input-output linkages affects their responses to the announcement. These findings suggest that the structure of US-China trade is much more complex than the simplistic view of global trade that engendered Trump's "Trade War" against China.
  • Topic: Economics, International Cooperation, International Trade and Finance, Global Political Economy, Trade Wars, Exports
  • Political Geography: United States, China, Asia
  • Author: Marcin Kaczmarski
  • Publication Date: 03-2017
  • Content Type: Working Paper
  • Institution: Center for Transatlantic Relations
  • Abstract: This paper is part of CTR's Working Paper Series: "Russia and the West: Reality Check." U.S. domination in global politics provided a powerful incentive for the post-Cold War rapprochement between Russia and China. The worsening of Russia’s relations with the West since 2014 made Moscow even more willing to offer significant concessions to Beijing. However, closer Russian-Chinese cooperation predates the Russian-Western crisis over Ukraine and reaches back to the 2008-2009 global economic crisis. Even the growing power asymmetry has not dissuaded Moscow from deepening its cooperation with China. This challenged widespread Western expectations that Russia would be eager to cooperate with the West in order to compensate for China’s increasing advantage. Hence, a potential improvement of Russian-Western relations is highly unlikely to result in the weakening of Russian-Chinese ties
  • Topic: International Relations, Foreign Policy, Energy Policy, International Cooperation, Bilateral Relations, Trump, Alliance
  • Political Geography: Russia, China, Europe, United States of America
  • Author: Panpan Yang, Bing Han
  • Publication Date: 12-2017
  • Content Type: Working Paper
  • Institution: Institute of World Economics and Politics
  • Abstract: Responsible research and innovation (RRI) represents a new evolving approach to governing research and innovation that takes into account potential impacts on the environment and society. Most published studies on RRI focus on the social benefits of research and innovation through examining RRI’s definitions and approaches for its implementation. In contrast, the present study addresses the influence of RRI on economic growth, and discusses the situations in which RRI will benefit economies. Our study finds that for its implementation to be successful, RRI needs to meet certain conditions, and that its implementation is not always beneficial to economic growth. To achieve a better result from RRI as part of an innovation policy, each country should balance the push and pull power of RRI to make sure that it becomes a building block rather than a stumbling block for innovation, economic growth and social welfare. To assure that RRI can be successfully implemented, China needs to strengthen and improve the participation mechanisms for stakeholders in major scientific and technological innovative activities.
  • Topic: International Relations
  • Political Geography: China
  • Author: Liu Dongmin
  • Publication Date: 01-2017
  • Content Type: Working Paper
  • Institution: Institute of World Economics and Politics
  • Abstract: The Chinese government seeks a more prominent role for China’s currency, the renminbi, in the international financial system. Its efforts to establish the renminbi as an international currency – like the US dollar – have hitherto emphasized relatively limited applications such as trade settlement and exchange rate arbitrage. However, recent market and policy developments point to the internationalization process henceforth being driven more by the renminbi’s status as a reserve currency
  • Topic: International Political Economy
  • Political Geography: China
  • Author: Mohsen Shariatinia, Hamidreza Azizi
  • Publication Date: 11-2017
  • Content Type: Working Paper
  • Institution: Institute of World Economics and Politics
  • Abstract: Iran served as a bridge in the ancient Silk Road, connecting the East and the West. It also has great potential to play an important role in the new Silk Road. The present study analyzes the factors affecting Iran–China cooperation in the context of the Belt and Road Initiative at the strategic and operational levels. This article shows that, at the strategic level, Iran defines this project as an opportunity to improve its status in the world economy, expanding its room to manoeuvre in the international arena and developing its ties with China, a rising great power. At the operational level, the opportunities and challenges for Iran–China cooperation could be summarized as pertaining to five realms within the Silk Road Economic Belt Initiative: policy coordination, facilitation of connectivity, unimpeded trade, financial integration and people-to-people bonds. The present study asserts that the main opportunity for cooperation between the two countries lies in facilitating connectivity and that the key challenge is financial integration.
  • Topic: International Political Economy, International Affairs
  • Political Geography: China, Iran
  • Author: Giovanni Andornino
  • Publication Date: 10-2017
  • Content Type: Working Paper
  • Institution: Institute of World Economics and Politics
  • Abstract: As Chinese leaders endeavor to maintain the international environment aligned with their strategic aim of realizing the “dream of national rejuvenation,” the remarkable increase in China’s capabilities, coupled with uncertainty in the global economy and the ambivalent attitude of the USA toward the international order, poses fresh challenges to Beijing’s foreign policy. The present paper argues that a lexicographic preference for the mitigation of the risk of pushback against China’s core interests underpins the Belt and Road Initiative. Pursuing a strategy of credible reassurance commensurate to the shift in the distribution of power in China’s neighborhood and globally, President Xi Jinping’s administration has been cultivating a form of connective leadership that commits China to the encapsulation of the Belt and Road Initiative for transregional connectivity into its own national development strategy, generating an octroyé, non-hegemonic, type of international social capital, and integrating the existing order without corroborating the position of its founder
  • Topic: International Political Economy
  • Political Geography: China
  • Author: Anastas Vangeli
  • Publication Date: 10-2017
  • Content Type: Working Paper
  • Institution: Institute of World Economics and Politics
  • Abstract: This paper provides an overview of China’s burgeoning relationship with Central, East and Southeast Europe (CESEE) in the context of the Belt and Road Initiative (BRI). China has rapidly expanded the extent of its interactions with CESEE since 2012, and this region has subsequently become one of the focal points of the BRI. The key feature of China’s engagement with CESEE is the devising of an experimental and innovative approach, demonstrated in the establishment of an institutional mechanism for cooperation with a particular group of 16 CESEE countries (16+1). The case of China–CESEE relations offers an insight into how, in the era of the BRI, China is complementing its economic approach with institution-building and policy coordination. The article concludes that as the BRI progresses, these tendencies will remain central to China’s relations with CESEE
  • Topic: International Affairs
  • Political Geography: China
  • Author: YUAN Zhengqing, SONG Xiaoqin
  • Publication Date: 10-2017
  • Content Type: Working Paper
  • Institution: Institute of World Economics and Politics
  • Abstract: The study of international norms is an important topic in the international politics. Western theories tend to emphasize the top-down instruction at the international level and learning at the state level, and empirical studies focus on the dissemination of Western norms to the rest of the world. Consequently, the role of non-Western countries is neglected in the process of norm dissemination. The dissemination of the Five Principles of Peaceful Coexistence offers an excellent opportunity to examine the behaviors of non-Western countries. The Five Principles proposed by China was neither imposed forcibly upon other countries nor intended to educate others in a condescending manner with a so-called “civilized” standard. Instead, the Five Principles started to disseminate in the process of equal interactions with the neighboring countries with similar experiences in history. Gradually, it embedded itself into more international meetings and treaties through establishing diplomatic relations, convening international meetings, participating in international organizations and offering foreign aid and expanded from ideologically similar countries into ideologically divergent ones.
  • Topic: International Affairs
  • Political Geography: China
  • Author: YUAN Zhengqing, Li Zhiyong, Zhufu Xiaofei
  • Publication Date: 07-2017
  • Content Type: Working Paper
  • Institution: Institute of World Economics and Politics
  • Abstract: The life cycle of international norms is not actually a process of emergence, diffusion and internalization. As is shown by the logic of argumentation and the relational logic of processoriented constructivism, the development of international norms may take another approach, one of origination, diffusion and remolding. Through dialogues on norms, discourse critique, self-remolding and other means, China has enriched the practice of remolding international human rights norms with a human rights theory centered on the right to survive and develop, thereby providing a new approach and new angle of vision that allows non-Western countries to break away from the monist approach of norm development.
  • Topic: Human Rights, International Affairs
  • Political Geography: China
  • Author: Danielle Cohen
  • Publication Date: 08-2017
  • Content Type: Working Paper
  • Institution: Korea Economic Institute of America (KEI)
  • Abstract: China and ASEAN possess tremendous opportunities for economic cooperation, but also face significant security challenges, particularly regarding the South China Sea. In both domains, China’s national identity has greatly influenced the trajectory of the bilateral relationship. China’s ASEAN policy is characterized by a desire to recreate the Sinocentric structures of the tributary system, a belief in the historical legitimacy of China’s maritime and territorial claims, a vision of China as a global economic powerhouse, and a sense that China has already “peacefully risen” and can more actively assert itself to reap the rewards.
  • Topic: International Relations, International Affairs
  • Political Geography: China
  • Author: Henry Holst
  • Publication Date: 01-2017
  • Content Type: Working Paper
  • Institution: Project 2049 Institute
  • Abstract: Taiwan’s Indigenous Defense Submarine (IDS) program has spurred a small but fierce debate over the merits of Taiwan’s submarine aspirations. This study argues that the discussion surrounding Taiwan’s IDS program fails to consider the potential long-run strategic benefits for the United States. Taiwan’s IDS program could spur greater PLA budgetary allocation in an area of favorable U.S.-China technological asymmetry: anti-submarine warfare (ASW). Given the high probability of greater PLA investment in high-end war fighting capabilities, larger PLA spending on ASW is comparatively less threatening to U.S. regional interests than other capabilities within high-technology confines. This study concludes by recommending a reevaluation of the long-run strategic merits of assisting Taiwan’s pursuit of a submarine program.
  • Topic: International Affairs
  • Political Geography: China
  • Author: Douglas Barrios, Stuart Russell, Matt Andrews
  • Publication Date: 07-2016
  • Content Type: Working Paper
  • Institution: The John F. Kennedy School of Government at Harvard University
  • Abstract: There is perhaps no larger sports policy decision than the decision to host or bid to host a mega-event like the FIFA World Cup or the Summer Olympics. Hosts and bidders usually justify their decisions by touting their potential impact. Many organizers and promoters either fund or widely disseminate ex-ante studies that tend to highlight the positive effects of the event. For instance, the consultancy firm Ernst & Young produced a 2010 report prior to the 2014 World Cup in Brazil that painted an optimistic picture of the event’s potential legacy. It estimated that an additional R$ 142.39 billion (4.91% of 2010 GDP) would flow through the Brazilian economy over the 2010-2014 period, generating 3.63 million jobs per year, R$ 63.48 billion (2.17% of 2010 GDP) of income for the population and additional tax collection of R$ 18.13 billion (0.62% of 2010 GDP) for the local, state and federal governments. Ernst & Young estimated that during the same period 2.98 million additional visitors would travel to Brazil, increasing the international tourist inflow up to 79%. Such results, if true, would clearly attractive for governments considering a bid, but these expected impacts don’t always materialize. Moreover, hosting mega-events requires significant investments - and the cost of these investments is rising. Zimbalist notes emerging economies like China, Brazil, and South Africa have increasingly perceived "mega-events as a sort of coming-out party signaling that [they are] now a modernized economy, ready to make [their] presence felt in world trade and politics" (Zimbalist 2015). Their intentions may be noble, but the intention of using mega-events as a "coming-out party" means developing countries hoping to host them need to make massive investments. They are confronted by significant obstacles in that they lack sufficient stadiums, accommodations, transportation systems, and other sports-related infrastructure. As a result, each of the mega-events hosted by emerging economies has been exorbitantly expensive. The 2014 World Cup cost Brazil between USD 15 billion and USD 20 billion, while Beijing reportedly spent USD 40 billion prior to the 2008 Summer Olympic (Zimbalist 2015). Additionally, as the debt-ridden 1976 Summer Olympics in Montreal demonstrates, expensive mega-events are not limited to emerging economies alone. Flyvbjerg and Stewart have even shown that every Olympics since 1960 has gone over budget (Flyvbjerg and Stewart 2012). Such incredible figures, in terms of both costs and benefits, beget the question: are mega-events worth it? Which type of reports should governments focus their attention on? What economic consequences should a government reasonably expect? With such high stakes, policymakers need to choose wisely. We attempt to answer these questions and aid the decisions of policymakers by providing a concise review of the rich academic literature on mega-events. For the purposes of this paper, we mainly focus on the Summer Olympic Games and the FIFA World Cup as mega-events. However, we also leverage information regarding events like the Winter Olympic Games, the UEFA football championships, and the Commonwealth Games. These events are organized on a smaller scale than the previous two, but they might provide some insights on how to best understand mega-events. We focus on claims surrounding the direct or indirect mechanisms that facilitate the impact that ex-ante studies predict. We provide a review of these claims and their validity according to the existing literature. Section 1 focuses on the argument that mega-events lead to increased economic activity in the host economy. Specifically, we evaluate whether or not mega-events leads to access to previously inaccessible funds and increased investments. These investments could theoretically come from supranational organizations, private stakeholders, or public stakeholders. We also consider whether or not these new expenditures and investments have the multiplicative effect that many ex-ante studies assume they have. We finally investigate if the economic activity surrounding mega-events leads to increased revenues and tax collection for host governments. Overall, the existing academic literature suggests that any increased economic activity resulting from the event is routinely dwarfed by additional public budgetary commitments. Moreover, the arguments regarding multiplicative effects and increased revenues also tend to be exaggerated. Section 2 shifts the focus to the potential impact of mega-events on a specific industry: tourism. We explore the effect of mega-events on the number of tourists visiting the host region and their spending habits. We explore this channel both for analyses specific to a single mega-event and for cross-country evaluations incorporating many events. Next, we consider the impact of a mega-event on a region’s brand and image in the international community with the idea of testing if hosting the competition will impact future tourism. Finally, we consider if mega-events lead to increases in the capacity of a city or country to welcome future tourists as a result of improved airport infrastructure, accommodations, and/or transportation systems. As was true in Section 1, the academic literature suggests that the claims of many ex-ante studies are misleading. Our review finds that there is some evidence for increases in tourist arrivals to certain events, but those increases are far smaller than what is generally predicted beforehand. These effects are also usually dependent on factors, such as the timing of the competition, that are specific to the host region and the event itself. Section 3 briefly discusses other potential qualitative and social impacts of mega-events such as international business relations, crime reduction, and the "feel-good effect." In the penultimate section, Section 4, we discuss how these conclusions should impact the decision-making of policymakers. Finally, in a short conclusion, we summarize the findings of our review.
  • Topic: Infrastructure, Sports, Economy, Olympics, World Cup
  • Political Geography: China, South Africa, Brazil, Global Focus
  • Author: Luke Patey, Michal Meidan
  • Publication Date: 11-2016
  • Content Type: Working Paper
  • Institution: Danish Institute for International Studies
  • Abstract: The size and sophistication of Chinese foreign investment is on the rise. In 2014, inbound investment to China was outpaced by outbound investment for the first time. Chinese foreign investment has surpassed the $100 billion mark for the past three years, making China the third largest overseas investor. At the same time, beyond oil and gas, which dominated headlines over the past decade, Chinese state-owned enterprises and private corporations are making multi-billion dollar investments in construction, telecommunications, nuclear, and high-tech across the globe. What political and security implications do these new investment have for host government in North America and Europe? What is the view point of Beijing towards the growing reach of its corporations overseas? A new policy brief by Michal Meidan, research associate at Chatham House and Asia Analyst at Energy Aspects, and DIIS senior researcher Luke Patey explores these questions.
  • Topic: Globalization, International Political Economy, International Trade and Finance
  • Political Geography: China, Global Focus
  • Author: Robert M. Orr
  • Publication Date: 04-2016
  • Content Type: Working Paper
  • Institution: Council of American Ambassadors
  • Abstract: In the past two years, the creation of the Chinese-sponsored Asian Infrastructure Investment Bank (AIIB) has caused considerable attention in many capitals, particularly in Washington and Tokyo. Some view the establishment of the AIIB as a challenge to the supremacy of the post-World War II Bretton Woods order. Others see it as another symbol of shifting regional power in Asia. Some have deep concerns about the AIIB’s willingness to adhere to international safeguards and open procurement.
  • Topic: International Trade and Finance
  • Political Geography: United States, Japan, China, Asia-Pacific
  • Author: Soren Scholvin
  • Publication Date: 04-2016
  • Content Type: Working Paper
  • Institution: Finnish Institute of International Affairs
  • Abstract: Geopolitical research is frequently portrayed as a dead end. To some scholars it appears that in the 21st century geography is largely scenery, all but irrelevant to the most important issues of grand strategy. This working paper aims to revitalise geopolitics, reflecting both on the critique of the subject and the strengths that have characterised it for more than a century. It is argued that geographical conditions constitute a set of opportunities and constraints, a structure that is independent of agency. General patterns and long-term processes can be aptly explained by this structure but geopolitics is not a theory of state behaviour or foreign policy. Understanding specific phenomena that occur in international relations therefore requires taking into consideration non-geographical factors. Such a combination of geographical and non-geographical factors provides sound explanations, as several examples demonstrate: China’s projection of power into the Indian Ocean, South Africa’s approach to the political crisis in Zimbabwe in 2008, Iran’s maritime strategy and the poor integration of Colombia and South America. Given that geopolitics is about analysing international relations (or politics) for its geographical content, all those committed to geopolitics should concentrate on the three guiding questions: Do geographical conditions influence the observed outcome? If yes, do geographical conditions influence the observed outcome significantly? If yes, how, meaning in combination with which other factors do geographical conditions influence the observed outcome?
  • Topic: Geopolitics
  • Political Geography: China, Iran, South Africa, Colombia, South America, Zimbabwe
  • Author: Jeffrey Bader
  • Publication Date: 03-2016
  • Content Type: Working Paper
  • Institution: The Brookings Institution
  • Abstract: Serious people understand that the manner in which the United States deals with China will be a critical, if not the critical, overseas chal- lenge for the United States in the 21st century. China will likely be the largest economy in the world within one or two decades; the second or third strongest military soon, if not already; and competitive with the United States and Europe in global economic, and perhaps political and cultural, influence in some regions. China is ruled by a Communist Par- ty resistant to political liberalization at home and wedded to nationalist rhetoric and behavior in dealing with its neighborhood, enhancing the chances for rivalry with the United States. For those students of history who see conflict as the likely outcome when ris- ing powers encounter dominant powers, these are precursors of a dark future. How should we deal with China? What policy framework best optimizes our interests, which are multiple and not always consistent with each oth- er? Americans are in the midst of an ongoing presidential campaign that, in a better world, would be asking and answering such questions, but this is not such a campaign.
  • Topic: International Relations, Foreign Policy, International Political Economy
  • Political Geography: China, America
  • Author: Hongying Wang
  • Publication Date: 03-2016
  • Content Type: Working Paper
  • Institution: Centre for International Governance Innovation
  • Abstract: In recent years, the world has seen rapid growth in China’s financial reach beyond its borders. Following the announcement of a “going out” strategy at the turn of the century, many Chinese enterprises have ventured to invest and operate abroad. After three decades as primarily a recipient of foreign direct investment (FDI), China has now emerged as a major FDI-originating country as well. Much of China’s foreign aid is closely entangled with its outgoing FDI, and it has also been rising. Since 2013, the Chinese government has been pushing for a new One Belt, One Road (OBOR) initiative, aiming to connect China with countries along the ancient Silk Road and a new Maritime Silk Road via infrastructure investment. In addition, since 2009, China has actively promoted the internationalization of its currency, the renminbi (RMB). There has been a great deal of anxiety about the motivations behind China’s going out policy and its possible international consequences. Many view it as an expression of China’s international ambition and a strategy that threatens the existing international order; however, that is not the whole story. An equally important but often less understood issue is the role of China’s domestic politics and political economy in shaping its new activism in foreign financial policy. Moreover, it is unclear how successful the going out policy is. The complexity of China’s going out policy was the topic for a recent round table discussion hosted by the Centre for International Governance Innovation and the Foreign Policy Institute at the School of Advanced International Studies of Johns Hopkins University in Washington, DC.[1] Participants discussed a number of issues around two broad themes: the impact of domestic political economy on China’s foreign economic policy and the challenges for China’s external financial strategy — in particular, its OBOR initiative.
  • Topic: Markets, Political Economy, Monetary Policy, Infrastructure, Foreign Direct Investment, Financial Markets
  • Political Geography: China
  • Author: Alex He
  • Publication Date: 03-2016
  • Content Type: Working Paper
  • Institution: Centre for International Governance Innovation
  • Abstract: This paper explores China’s perspectives and practices in its quest for overseas energy supply security and its participation in international energy cooperation since becoming a net oil import country in 1993. It compares the traditional approach, in which China mainly focuses on bilateral means to pursue its overseas energy supply security, and the new concept of energy security, in which greater involvement in global energy governance, in particular in the Group of Twenty (G20), is highlighted to promote China’s energy security. The paper argues that China still retains a bilateral and regional cooperation approach, while making progress in developing closer cooperation with existing major global energy governing institutions. The One Belt, One Road strategy proposed in 2013 is regarded as a strengthened version of the bilateral and regional cooperation approach. Chinese academic circles constitute the main forces advocating China’s more positive participation in global energy governance. The G20 provides significant institutional arrangements to coordinate big powers to govern the international energy markets and to address climate change. This paper suggests that, given China’s growing prominence at the G20, it could be the proper platform for the country to play a more active role in global energy governance.
  • Topic: Climate Change, Energy Policy, Environment, Oil, Regional Cooperation, Bilateral Relations, Governance, G20
  • Political Geography: China
  • Author: Wendy Dobson
  • Publication Date: 02-2016
  • Content Type: Working Paper
  • Institution: Centre for International Governance Innovation
  • Abstract: This paper reviews Indonesia’s economic prospects and what these imply for a closer relationship with Canada. By posing the question “Is Indonesia the next China?,” the author suggests that Indonesia has the considerable economic potential envisaged by foreign investors, but conveys uncertainty as to whether Southeast Asia’s most populous country can make the changes necessary to realize that potential. A review of the economic record and comparison of China’s and Indonesia’s economic structures, endowments and institutions show major differences between the two countries. The paper further questions what it will take to realize Indonesia’s potential, finding the answers to be: human capital development; increased participation in the region’s global value chains; meeting the growing middle-class demand for modern services; raising productivity in agriculture and fishing; and increasing use of the Internet. Failure to make these changes will increase the chances of Indonesia’s growth in per capita incomes slowing and falling into the middle-income trap. Canada’s role will be to monitor closely how Indonesia tackles its five priorities at the same time as it responds to the opportunities to exploit Indonesia’s abundant natural resources, urbanization and its expanding consumer demand for modern services and educational opportunities.
  • Topic: Economics, Emerging Markets, Human Welfare, International Trade and Finance, Natural Resources, Regulation
  • Political Geography: China, Indonesia
  • Author: John Whalley, Li Chunding
  • Publication Date: 05-2016
  • Content Type: Working Paper
  • Institution: Centre for International Governance Innovation
  • Abstract: The Trans-Pacific Partnership (TPP) Agreement has now been concluded, but it still faces the challenge of ratification in each of the 12 member countries that are partners to the agreement. China is the world’s second- largest economy, but is not part of the TPP Agreement, which has provoked a great deal of debate in China on the best strategy for China to deal with the TPP. This paper analyzes China’s possible trade strategy, raising three issues for consideration, given the TPP Agreement. First, security of market access should be China’s main concern in any free trade agreement (FTA) negotiation, but the TPP does not include content that is particularly relevant to this issue. Second, the nal TPP Agreement is somewhat less than the high-level, ambitious agreement that has been proclaimed. Third, the rati cation process in all 12 member countries will be slow and may possibly not even happen. This paper sets out four strategies for China: to promote the development of China’s remaining regional and bilateral FTAs; to negotiate a bilateral FTA with the United States; to promote deep domestic reform and opening up by enlarging the coverage of the TPP; and, nally, to negotiate its entry in the TPP as soon as possible, so that the terms of entering the agreement do not degenerate for China.
  • Topic: International Political Economy
  • Political Geography: China
  • Author: Saori N. Katada
  • Publication Date: 05-2016
  • Content Type: Working Paper
  • Institution: East-West Center
  • Abstract: In 2015, two mega-initiatives took shape that will affect economic relations in the Asia-Pacific region: the US-promoted Trans-Pacific Partnership (TPP) trade agreement and the China-led Asian Infrastructure Investment Bank (AIIB). Although they address different needs, both are expected to have profound effects on Asia's economic governance in the near future, and will shape economic norms in the Asia Pacific and beyond. Japan has joined the TPP but stayed out of the AIIB, decisions that might seem counterintuitive considering its history of resisting trade liberalization and of promoting infrastructure investment. Is Japan simply favoring its US ally over rival China? Or is it that Japan's position on the TPP and AIIB aligns with its own economic priorities, and enhances its geo-economic advantage? With a US-China competition over economic ideas and regional strategies, Japan occupies a unique position that may allow it to influence the direction of Asia-Pacific economic governance, which is now being battled out by the two "titans."
  • Topic: Economics, International Trade and Finance, Political Economy, Treaties and Agreements
  • Political Geography: China, Asia
  • Author: Saul P. Limaye, Tsutomu Kikuchi
  • Publication Date: 01-2016
  • Content Type: Working Paper
  • Institution: East-West Center
  • Abstract: Until recently, Southeast Asia had not been a region of sustained focus for the US-Japan relationship. But the situation is changing. The international relations of the Asia-Pacific is becoming more "multipolarized." This requires the US and Japan to think about the future of the region beyond the issue of US-China relations, which has preoccupied past discussions. A number of nations and institutions in the Asia-Pacific region will substantially affect the region's future. Southeast Asian nations and the Association of Southeast Asian Nations (ASEAN) are among them. A new era of more coordinated, sustained, and combined commercial and security involvement by the US and Japan in Southeast Asia may be at hand. In light of these changes, the East-West Center in Washington (EWCW), in collaboration with the Japan Institute of International Affairs (JIIA), and through the support of the Sasakawa Peace Foundation (SPF), initiated a dialogue with Southeast Asians about their perspectives on how the US-Japan relationship and alliance could or should approach cooperation with the region.
  • Topic: Security, Economics, Markets, Peacekeeping
  • Political Geography: United States, Japan, China, Asia-Pacific
  • Author: Dieter Ernst
  • Publication Date: 03-2016
  • Content Type: Working Paper
  • Institution: East-West Center
  • Abstract: This paper explores what we know about possible employment effects of the 10-year plan, issued by the State Council on May 19, 2015, entitled Made in China 2025. MIC2025 was designed to address China’s emerging labor shortage challenge. To achieve this goal, the plan seeks to boost labor productivity through an increased use of robots and through network-based upgrading of the entire industrial value chain and related services. How might the projected increase in labor productivity affect the creation and quality of jobs in China? Will China’s push into advanced manufacturing now move the country’s manufacturing employment closer to the pattern of “employment de-industrialization” observed in the US and other industrialized countries? How China will cope with the advanced manufacturing challenge for employment will have major implications not only for the US and other industrialized countries, but also for emerging economies and, most importantly for the majority of developing countries that are still struggling as latecomers to labor-intensive industrial manufacturing. The paper lays out objectives of the MIC 2025 plan and highlights a failure of Chinese policy makers to take into account employment effects and other labor market issues when they design their grand visions of industrial policy. The paper finds that until 2014, manufacturing has acted as an employment absorber in China. However new data on unemployment, labor force participation and income inequality signal that China may now be moving towards an “employment de-industrialization” pattern, unless enough knowledge-intensive service jobs will be created in China’s growing information economy. The paper concludes with implications for policy and further research.
  • Topic: Economics, International Political Economy, Markets, Labor Issues
  • Political Geography: China
  • Author: Angela Stanzel, Agatha Kratz, Justyna Szczudlik, Dragan Pavlićević
  • Publication Date: 12-2016
  • Content Type: Working Paper
  • Institution: European Council On Foreign Relations
  • Abstract: China faced hard times in 2016 – at least when it comes to promoting its investment in Europe. The European Union is one of its most important economic and trading partners and the final destination of China’s flagship initiative, the New Silk Road. However, some EU member states have recently become increasingly critical of China’s push for more investment in Europe. Beijing has invested significant effort in building a new entry point into Europe through the central and eastern European (CEE) countries – in particular, through the 16+1 framework. As reflected in Agatha Kratz’s article in this edition of China Analysis, the CEE region is attractive to China thanks to its strategic geographical position for the New Silk Road project, its high-skilled yet cheap labour, and its open trade and investment environment.
  • Topic: International Political Economy, International Affairs
  • Political Geography: China
  • Author: XIAO Yingying, YUAN Zhengqing
  • Publication Date: 07-2016
  • Content Type: Working Paper
  • Institution: Institute of World Economics and Politics
  • Abstract: The internet history in Africa is short, but this new technology is spreading fast on the continent. Along with this, cybercrime in Africa is becoming increasingly rampant, while the relevant legal institutions and law enforcement capacity are lagging behind, with public and private cyber security awareness being relatively weak. In recent years, African countries start accelerating the design of institutional framework concerning cyber security governance. Besides e-transaction and cybercrime, personal data protection is also part of Africa’s cyber security governance, which is the result of the “impartment“ from Western developed countries and the active advocacy from NGOs. Whether at the national level, sub-regional organization level, the African Union level or NGO level, those Western developed countries and western-dominated international organizations have played a role in the institutional design of African cyber security governance, some of which referred to or even copied the original designs of the Western countries. This may lead to the African continent being “recolonized” in cyberspace, with no autonomous decision-making power in global cyber security governance. Besides, from design to implementation, African countries still have a long way to go, and whether the institutions based on the western experience are suitable for the culture and ideas of the African countries, remains to be tested with practice.
  • Topic: International Relations, International Affairs
  • Political Geography: Africa, China
  • Author: Choi Nakgyoon
  • Publication Date: 12-2016
  • Content Type: Working Paper
  • Institution: Korea Institute for International Economic Policy (KIEP)
  • Abstract: This paper studied the effects of anti-dumping measures on the imports to investigate whether the trade restriction effect of an anti-dumping duty is dominant in the US, the EU, China, and India from 1996 to 2015. Our results indicate that a 1% increase in the anti-dumping duties decreases the import of the targeted product by about 0.43~0.51%. The actual statistics, however, show that the total import of the targeted products increased by about 30 percent while an anti-dumping duty was in force. That indicates that an anti-dumping duty is just a temporary import relief. This paper also investigated whether an anti-dumping duty is terminated in the case that the injury would not be likely to continue or recur if the duty were removed. The increase in market share, MFN tariff rate, and dumping margin turns out to decrease the hazard of termination of an anti-dumping duty, but the increase in value added increases the hazard of termination. Generally speaking, this result indicates that the WTO member countries have regulated the overuse of an anti-dumping measure. It also implies that anti-dumping duties have been used as a tool for trade remedy.
  • Topic: International Political Economy, International Trade and Finance
  • Political Geography: China
  • Author: Shyam Saran
  • Publication Date: 11-2016
  • Content Type: Working Paper
  • Institution: Centre for Policy Research, India
  • Abstract: In the next decade, how US-China relations unfold will shape the external environment for countries like India. How does China perceive the Trump presidency?
  • Topic: International Relations, Bilateral Relations, Economy, Trump
  • Political Geography: China, South Asia, India, Asia, North America, United States of America
  • Author: Geetima Das Krishna, Ankit Bhardwaj
  • Publication Date: 02-2016
  • Content Type: Working Paper
  • Institution: Centre for Policy Research, India
  • Abstract: After three decades of double-digit growth, China is slowing as it is rebalancing its economy from export-driven to less-volatile domestic consumption driven economy. The paper looks at the impact of China slowdown on India through different channels. Even though India is usurping China as the fastest growing major economy in the world, Indian economy being a fifth of the Chinese economy and also less material intensive can hardly substitute for China as a global growth driver. China has emerged as the largest trading partner of India but India’s trade still remains less vulnerable to Chinese slowdown directly as India’s services exports account for as much as 50% of India’s overall exports (merchandise and services). On the other hand, China’s total FDI investment in India has been miniscule $1.2 billion till September 2015 and India’s infrastructure sector, with its massive investment needs, can be the natural destination for Chinese investments. India reaped the indirect benefit of lower commodity prices in terms of narrower CAD, softening inflation, lower interest rate, increased government fiscal bonanza, all of which contributed to greater macro-stability in India. It was also found that a 50bps decline in China’s growth rate is likely to lower India’s growth by 30bp in the short run.
  • Topic: International Trade and Finance, Bilateral Relations, Economy, Economic growth, Regional Integration
  • Political Geography: China, South Asia, India, Asia
  • Author: Dmitri V. Trenin
  • Publication Date: 04-2015
  • Content Type: Working Paper
  • Institution: Carnegie Endowment for International Peace
  • Abstract: The rupture between Russia and the West stemming from the 2014 crisis over Ukraine has wide-ranging geopolitical implications. Russia has reverted to its traditional position as a Eurasian power sitting between the East and the West, and it is tilting toward China in the face of political and economic pressure from the United States and Europe. This does not presage a new Sino-Russian bloc, but the epoch of post-communist Russia's integration with the West is over. In the new epoch, Russia will seek to expand and deepen its relations with non-Western nations, focusing on Asia. Western leaders need to take this shift seriously.
  • Topic: International Relations
  • Political Geography: Russia, United States, China, Europe
  • Author: Wang Tao
  • Publication Date: 05-2015
  • Content Type: Working Paper
  • Institution: Carnegie Endowment for International Peace
  • Abstract: Petroleum coke (petcoke), a by-product of petroleum refining that is high in contaminants, has quietly emerged in China as an inexpensive, but very dirty, alternative to coal. A significant share of the petcoke used in China is imported from the United States, where it is generally considered waste. The Chinese government is committed to reducing coal consumption for environmental reasons, but petcoke is not yet well-known to the country’s policymakers. Still, its use and resulting emissions must be addressed if efforts to reduce air pollution and climate change are to be effective.
  • Topic: Climate Change, Energy Policy, Industrial Policy, Treaties and Agreements
  • Political Geography: China, East Asia
  • Author: David J. Berteau, Gregory Sanders, T.J. Cipoletti, Meaghan Doherty, Abby Fanlo
  • Publication Date: 01-2015
  • Content Type: Working Paper
  • Institution: Center for Strategic and International Studies
  • Abstract: The European defense market, though impacted by lethargic economic growth and painful fiscal austerity measures, continues to be a driver in global defense. Five of the fifteen biggest military spenders worldwide in 2013 were European countries, and Europe remains a major market for international arms production and sales. Surges in military spending by Russia, China, and various Middle Eastern countries in recent years has augmented the defense landscape, especially as European countries in aggregate continue to spend less on defense and the United States embarks on a series of deep-striking budget cuts. This report analyzes overall trends in defense spending, troop numbers, collaboration, and the European defense and security industrial base across 37 countries. To remain consistent with previous reports, this briefing utilizes functional NATO categories (Equipment, Personnel, Operations and Maintenance, Infrastructure, and Research and Development) and reports figures in constant 2013 euros unless otherwise noted. Many of the trends identified within the 2012 CSIS European Defense Trends report continued into 2013, namely reductions in topline defense spending, further cuts to R spending, and steadily declining troop numbers. Though total European defense spending decreased from 2001-2013, with an accelerated decline between 2008 and 2010, select countries increased spending2 between 2011 and 2013. Collaboration among European countries has decreased in the R category; however, it has increased in the equipment category – indicating increased investment in collaborative procurement. Defense expenditure as a percentage of total government expenditure has decreased across Europe from 2001-2013 with the exceptions of Albania and Estonia. An updated CSIS European Security, Defense, and Space (ESDS) Index is included within this report and exhibits a shift in geographic revenue origin for leading European defense firms away from North America and Europe and towards other major markets between 2008 and 2013. Finally, a brief analysis of Russian defense spending is included in the final section of this report in order to comprehend more fully the size and scope of the European defense market within the global framework. In 2013, Russia replaced the United Kingdom as the third largest global defense spender, devoting 11.2 percent of total government expenditures to defense. This briefing report concludes with summarized observations concerning trends in European defense from 2001 to 2013. CSIS will continue to follow and evaluate themes in European defense, which will appear in subsequent briefings.
  • Topic: Security, Defense Policy, Military Affairs, Budget
  • Political Geography: Russia, China, United Kingdom, America, Europe
  • Author: Anthony H. Cordesman, Aaron Linn
  • Publication Date: 03-2015
  • Content Type: Working Paper
  • Institution: Center for Strategic and International Studies
  • Abstract: The tensions between the Koreas – and the potential involvement of the People's Republic of China (China or PRC), Japan, Russia, and the United States of America (US) in a Korean conflict – create a nearly open-ended spectrum of possible conflicts. These conflicts could range from posturing and threats – “wars of intimidation” – to a major conventional conflict on the Korean Peninsula, intervention by outside powers like the US and China, and the extreme of nuclear conflict.
  • Political Geography: Russia, United States, Japan, China, Korea, Northeast Asia
  • Author: Gregory Poling
  • Publication Date: 08-2015
  • Content Type: Working Paper
  • Institution: Center for Strategic and International Studies
  • Abstract: The Center for Strategic and International Studies (CSIS) hosted its fifth annual South China Sea conference on July 21, 2015. The event garnered more interest and a considerably larger audience—both in CSIS’s at-capacity conference room and online—than its four predecessors. Interest in the conference reflected the wider discussion on the South China Sea among policy communities in Washington and around the Asia Pacific—discussions that have risen to the top of the strategic agenda in many capitals. This report seeks to grapple with the dual policy challenges—one immediate and one long-term—of the South China Sea disputes, and offers recommendations to U.S. policymakers.
  • Topic: Conflict Resolution, Diplomacy
  • Political Geography: China
  • Author: Anthony H. Cordesman, Steven Colley
  • Publication Date: 09-2015
  • Content Type: Working Paper
  • Institution: Center for Strategic and International Studies
  • Abstract: China’s emergence as a global economic superpower and as a major regional military power in Asia and the Pacific, has had a major impact on its relations with the United States and its neighbors. China was the driving factor in the new strategy the United States announced in 2012 that called for the U.S. to “rebalance” its forces to Asia-Pacific region. At the same time, China’s actions on its borders, in the East China Sea, and in the South China Sea have shown that China is steadily expanding its geopolitical role in the Pacific, and having a steadily increasing impact on the strategy and military developments in other Asian powers. As a result, the People’s Republic of China (PRC), the United States, and China’s neighbors face a critical need to improve their understanding of how each state in the region is developing its military power, and find ways to avoid the kind of military competition that could lead to rising tension or conflict.
  • Topic: Arms Control and Proliferation, Industrial Policy, International Trade and Finance, Power Politics
  • Political Geography: China, East Asia
  • Author: Robert D. Blackwill, Henry A. Kissinger, Ashley J. Tellis
  • Publication Date: 04-2015
  • Content Type: Working Paper
  • Institution: Council on Foreign Relations
  • Abstract: "China represents and will remain the most significant competitor to the United States for decades to come. As such, the need for a more coherent U.S. response to increasing Chinese power is long overdue," write CFR Senior Fellow Robert D. Blackwill and Carnegie Endowment for International Peace Senior Associate Ashley J. Tellis in a new Council Special Report, Revising U.S. Grand Strategy Toward China. "Because the American effort to 'integrate' China into the liberal international order has now generated new threats to U.S. primacy in Asia—and could result in a consequential challenge to American power globally—Washington needs a new grand strategy toward China that centers on balancing the rise of Chinese power rather than continuing to assist its ascendancy." The authors argue that such a strategy is designed to limit the dangers that China's geoeconomic and military power pose to U.S. national interests in Asia and globally, even as the United States and its allies maintain diplomatic and economic interactions with China.
  • Topic: Foreign Policy, Defense Policy, Diplomacy, International Trade and Finance
  • Political Geography: China
  • Author: Jiang Nan
  • Publication Date: 06-2015
  • Content Type: Working Paper
  • Institution: Australian National University Department of International Relations
  • Abstract: The illegal ivory trade fuels illegal elephant poaching in both Africa and Asia. The illegal ivory trade in China is considered a key threat to the survival of the elephant species: since 2009, China has become the largest illegal ivory market in the world. Although China has uncovered a great number of cases of illegal ivory trade with the seizure of illegal ivory in the past decade, this trade is still growing. A deeper understanding of the nature and patterns of illegal ivory trade through an analysis of ivory seizure data should improve the efficiency of efforts to prevent the illegal ivory trade in China. This paper analyses data on 106 seizures of illegal ivory that was collected from Chinese news reports between 1999 and 2014, with a particular focus on its frequency and illegal trade ‘hotspot’ locations in China. The analysis found three illegal ivory trade cycles (2001–2005, 2006–2010, and 2011–2014) and four hotspots. Preventing the illegal ivory trade will require more international cooperation and coordination between China and other countries.
  • Topic: International Cooperation, Trade, Illegal Trade, Ivory
  • Political Geography: Africa, China, Asia
  • Author: Georg Strüver, Pascal Abb
  • Publication Date: 03-2015
  • Content Type: Working Paper
  • Institution: German Institute of Global and Area Studies
  • Abstract: This paper uses the case of Sino–Southeast Asian relations to gain insights on China's ability to muster support for its global agenda. The analysis focuses on the regional–global nexus of interstate relations and explores the extent to which the quality of two states' regional relations influences the likelihood of behavioral alignment in global politics. To this end, we consider a range of potentially influential aspects of Sino–Southeast Asian relations (the quality of bilateral relations based on recent event data, alliance policy, regime similarity, development level, and economic ties) and employ a statistical model to search for correlations with observed trends of voting coincidence in the United Nations General Assembly during the period 1979–2010. We find a strong correlation between the quality of regional bilateral relations and global policy alignment, which indicates that patterns of regional cooperation and conflict also impact the trajectory of China's rise in world affairs.
  • Topic: Bilateral Relations
  • Political Geography: China, Southeast Asia
  • Author: Tristram Sainsbury
  • Publication Date: 10-2015
  • Content Type: Working Paper
  • Institution: Lowy Institute for International Policy
  • Abstract: The G20 engagement groups represent a cross-section of society at the G20. They have an important role in publicly holding the G20 to account, assessing the forum’s performance, and contributing to the G20 agenda. The groups have differing agendas and vastly different priorities ahead of the Antalya Leaders’ Summit in November. However, there are some areas of overlap, such as calls from several groups for G20 leaders to respond to the Syrian refugee crisis and be more active in addressing gender inequality. Open and effective outreach to broader society should be an important priority of the 2016 Chinese G20 Presidency. China should look to improve the efficiency of the engagement processes in 2016, so that engagement groups are more focused on recommending fewer, but more pragmatic and high-impact policy solutions.
  • Topic: Foreign Policy, Diplomacy, International Cooperation, International Organization, International Trade and Finance
  • Political Geography: China
  • Author: Brendan Thomas- Noone, Rory Medcalf
  • Publication Date: 09-2015
  • Content Type: Working Paper
  • Institution: Lowy Institute for International Policy
  • Abstract: India and China, rising powers in the Indo-Pacific, are moving from the test and design phase of sea-based nuclear weapon platforms to active deployment. In the long-term, these new ballistic missile-carrying nuclear submarines could lead to greater strategic stability in the region. But only once systems that ensure their safe and credible operation are put in place. The deployment of these weapons will also exacerbate existing regional tensions over the South China Sea and the Bay of Bengal, and drive the deployment of ballistic missile defence systems and enhanced anti-submarine warfare capabilities in the region.
  • Topic: Defense Policy, Arms Control and Proliferation, Power Politics, Military Affairs
  • Political Geography: China, India
  • Author: Linda Jakobson, Rory Medcalf
  • Publication Date: 06-2015
  • Content Type: Working Paper
  • Institution: Lowy Institute for International Policy
  • Abstract: Regional security is being adversely affected by a worsening perception gap between China and other regional powers in the Indo-Pacific. What China sees as the legitimate defence of its interests others in the region see as assertive behaviour. There are some real differences in interests between China and other regional players in the Indo-Pacific, but tensions can also be moderated by efforts to address the perception gap.
  • Topic: Conflict Resolution, Security, Defense Policy, Arms Control and Proliferation
  • Political Geography: China, Australia/Pacific
  • Author: Daniele Fattibene
  • Publication Date: 11-2015
  • Content Type: Working Paper
  • Institution: Istituto Affari Internazionali
  • Abstract: Russia’s “pivot to Asia” has come to the fore in the wake of the crisis over Ukraine. Growing tensions with the West over the common neighbourhood, coupled with economic sanctions, have accelerated this trend, with China gaining in strength as both an economic and military partner to Moscow. The Kremlin’s propaganda has sought to convince the broader public that Russia’s strategies in Eastern Europe, Central Asia and the Arctic region are a complement to China’s new Silk Road Economic Belt. Nonetheless, behind the headlines huge potential problems jeopardise the emergence of a durable Sino-Russian consensus in Eurasia. Against this backdrop, the EU should opt for “strategic patience.” This would be a far more effective policy choice than finger pointing, which only deepens the mutual ideological clash between the EU and Russia.
  • Topic: Diplomacy, Economics, International Trade and Finance, Bilateral Relations, Sanctions
  • Political Geography: Russia, China, Asia
  • Publication Identifier: 978-88-98650-69-9
  • Publication Identifier Type: DOI
  • Author: Nicola Casarini
  • Publication Date: 10-2015
  • Content Type: Working Paper
  • Institution: Istituto Affari Internazionali
  • Abstract: With the One Belt One Road (OBOR), arguably Beijing’s major diplomatic outreach in decades, a process towards greater Sino-European connectivity has been put in place. The implementation of the OBOR in Europe has focused so far on financing infrastructure projects, in particular railways in Southeast Europe and ports in the Mediterranean Sea. This has been complemented by growing monetary linkages between the People’s Bank of China and European central banks through the establishment of currency swap agreements and yuan bank clearing – so-called “offshore renminbi hubs” – with the aim of lowering transaction costs of Chinese investment and bolstering the use of the Chinese currency. While there are undoubtedly great economic opportunities, China’s OBOR initiative also presents the EU with a major political challenge. There is the risk, in fact, that a scramble for Chinese money could further divide EU member states and make it difficult for Brussels to fashion a common position vis-à-vis Beijing. Furthermore, China’s economic penetration into Europe may lead – if not properly managed – to a populist backlash as well as a strain in relations with Washington. All these elements should be taken into consideration by EU policymakers, as China’s OBOR makes inroads into the Old Continent.
  • Topic: Development, International Trade and Finance, Bilateral Relations, Infrastructure
  • Political Geography: China, Europe
  • Publication Identifier: 978-88-98650-64-4
  • Publication Identifier Type: DOI
  • Author: Nicholas Borst, Nicolas R. Lardy
  • Publication Date: 08-2015
  • Content Type: Working Paper
  • Institution: Peterson Institute for International Economics
  • Abstract: China's banking system is now the largest in the world, and its capital markets are rapidly approaching the size of those in the advanced economies. Borst and Lardy trace the evolution of China's financial system away from a traditional bank-dominated and state-directed financial system toward a more complex, market-based system. They analyze and outline the optimal sequence of financial reforms needed to manage the new risks accompanying this evolution.
  • Topic: Economics, Markets, Financial Crisis, Reform
  • Political Geography: China
  • Author: Carol Graham, Shaojie Zhou, Junyi Zhang
  • Publication Date: 06-2015
  • Content Type: Working Paper
  • Institution: The Brookings Institution
  • Abstract: The past two decades in China brought unprecedented rates of economic growth, development, and poverty reduction. Indeed, much of the reduction in the world’s extreme poverty rates during that time can be explained by the millions of people in China who exited poverty. GDP per capita and household consumption increased fourfold between the years 1990 and 2005.1 China jumped 10 places forward on the Human Development Index from 2008 until 2013, moving up to 93 of 187 countries, and life expectancy climbed to 75.3 years, compared to 67 years in 1980.
  • Topic: Development, Economics, Health, Human Welfare
  • Political Geography: China
  • Author: Dieter Ernst
  • Publication Date: 02-2015
  • Content Type: Working Paper
  • Institution: EastWest Institute
  • Abstract: As an exclusionary property right, patents invite their use as a strategic weapon to shape markets and to reap monopoly rents through patent monetization. The increasing variety and global reach of strategic patenting strategies pose new and under-researched challenges for the international distribution of innovation gains. This think piece explores the proliferation of strategic patenting strategies, and highlights the growing complexity and uncertainty of the international patent system that result from the increasing use of patents as market deterrents and as a new asset class. Part One of the paper introduces four manifestations of strategic patenting that are well documented in the literature, i.e. the use of standard-essential patents (SEPs) as entry deterrents; aggressive patent infringement litigation that has galvanized the smart phone wars, with Apple as the pioneer; the proliferation of patent monetization services; and the use of cross-border patent licensing as a tool for corporate transfer pricing and tax planning. While existing research provides important insights into the drivers, we lack systematic theoretical and empirical research on how strategic patenting affects the international distribution of innovation gains. Part Two seeks to shed light on two recent forms of strategic patenting which need both theoretical and empirical case study research, i.e. the rise of Sovereign Patent Funds (SPFs), and first signs of patent-avoiding latecomer strategies, with China's Xiaomi as the most prominent example. The paper concludes with questions for policy and further research.
  • Topic: Defense Policy
  • Political Geography: China
  • Author: Dr. David Lai
  • Publication Date: 10-2015
  • Content Type: Working Paper
  • Institution: The Strategic Studies Institute of the U.S. Army War College
  • Abstract: The Chinese government conducted a military parade to commemorate the “70th Anniversary of the Victory of the Chinese People’s War of Resistance Against Japanese Aggression and the World Anti-Fascist War” on September 3, 2015. Although Chinese President Xi Jinping uttered “peace” 18 times in his brief opening remarks and Chinese government propaganda flooded China’s media with massive unqualified praise afterward, this show of force was by no means a blessing for peace. On the contrary, it arguably will cast a shadow over China’s outreach in the Asia-Pacific region for years to come.
  • Topic: War, Governance, Peacekeeping, Military Affairs
  • Political Geography: Japan, China, Asia-Pacific
  • Author: Roman Muzalevsky
  • Publication Date: 07-2015
  • Content Type: Working Paper
  • Institution: The Strategic Studies Institute of the U.S. Army War College
  • Abstract: China’s emergence as a global actor has questioned the position of the United States as the strongest power and the future of the Washington-led global order. To achieve the status of a truly global player wielding influence in all dimensions of power would require China to leverage its regional influence in Central Asia. This region is increasingly representing China’s western leg of economic expansion and development, and is of a growing strategic importance for Beijing. It is also a region that should be of greater strategic importance to Washington, which seeks to preserve its leading position in the international system and ensure China’s peaceful integration in the global political, security, and economic architecture.
  • Topic: Economics, International Cooperation, International Trade and Finance, Hegemony, Global Markets, Global Security
  • Political Geography: China, Eurasia, Asia
  • Author: David Lai, Roy Kamphausen
  • Publication Date: 07-2015
  • Content Type: Working Paper
  • Institution: The Strategic Studies Institute of the U.S. Army War College
  • Abstract: This volume is of special relevance in light of the profound changes occurring within the Chinese People’s Liberation Army (PLA). China’s desire to develop a military commensurate with its diverse interests is both legitimate and understandable. The challenge for U.S. Pacific Command (USPACOM) is to understand how China will employ this growing military capability in support of its interests. The book addresses the uncertainty surrounding the potential direction of the PLA by examining three distinct focus areas: domestic, external, and technological drivers of PLA modernization; alternative futures for the PLA; and, implications for the region, world, and U.S.-China relations. The analysis provides an insightful perspective into the factors shaping and propelling the PLA’s modernization, its potential future orientation ranging from internally focused to globally focused, and how the PLA’s choices may impact China’s relations with its neighbors and the world.
  • Topic: Defense Policy, International Cooperation, Military Strategy, Military Affairs
  • Political Geography: China, United States of America
  • Author: Richard Dr. Weitz
  • Publication Date: 04-2015
  • Content Type: Working Paper
  • Institution: The Strategic Studies Institute of the U.S. Army War College
  • Abstract: China and Russia have engaged in an increasing number of joint exercises in recent years. These drills aim to help them deter and, if necessary, defeat potential threats, such as Islamist terrorists trying to destabilize a Central Asian government, while at the same time reassuring their allies that Russia and China would protect them from such challenges. Furthermore, the exercises and other joint Russia-China military activities have a mutual reassurance function, informing Moscow and Beijing about the other’s military potential and building mutual confidence about their friendly intentions toward one another. Finally, the joint exercises try to communicate to third parties, especially the United States, that Russia and China have a genuine security partnership and that it extends to cover Central Asia, a region of high priority concern for Moscow and Beijing, and possibly other areas, such as northeast Asia. Although the Sino-Russian partnership is limited in key respects, the United States should continue to monitor their defense relationship since it has the potential to become a more significant international security development.
  • Topic: Security, War, Governance, Military Affairs
  • Political Geography: Russia, China
  • Author: Zheng Liansheng
  • Publication Date: 03-2015
  • Content Type: Working Paper
  • Institution: Centre for International Governance Innovation
  • Abstract: The shadow banking system was defined in 2007 by Paul McCulley, the managing director of Pacific Investment Management Company, but it began to receive significant attention in the immediate aftermath of the GFC. Since the beginning of the financial crisis in 2008, the regulatory agencies of different countries, international organizations and think tanks have all carried out in-depth research into shadow banking and have released a series of results. Regulatory reforms have also addressed shadow banking, the most important of which is the US Dodd-Frank Act of 2010, which aims to restrain the expansion and risk taking of shadow banking in the United States. The United Kingdom and the European Union have also adopted reforms and built up a supervisory system to track the risks of the shadow banking system.
  • Topic: Financial Crisis
  • Political Geography: United States, China, United Kingdom, Europe
  • Author: Ming Zhang
  • Publication Date: 03-2015
  • Content Type: Working Paper
  • Institution: Centre for International Governance Innovation
  • Abstract: Due to the 2008-2009 global financial crisis, the Chinese government began to promote renminbi (RMB) internationalization in order to raise its international status, decrease reliance on the US dollar (USD) and advance domestic structural reform. RMB internationalization has achieved progress not only in cross-border trade settlement, but also in the offshore RMB markets. However, the rampant cross-border arbitrage and the relatively slow development of RMB invoicing compared to RMB settlement are becoming increasingly problematic. RMB internationalization has exerted significant influence on not only the Chinese economy but also other emerging market economies. RMB internationalization complicates domestic monetary policy, exacerbates the currency mismatch on China's international balance sheet and increases both the scale and volatility of short-term capital flows. It offers emerging economies another alternative for pricing domestic currency and investing foreign exchange reserves. Its overall impact on the international monetary system's stability will depend on how the capital account is liberalized and the consistency and transparency of Chinese monetary policy. This paper concludes with five recommendations for Chinese policy makers to promote RMB internationalization in a sustainable way that is conducive to international stability.
  • Topic: Development, Economics, Government
  • Political Geography: United States, China
  • Author: John Whalley
  • Publication Date: 02-2015
  • Content Type: Working Paper
  • Institution: Centre for International Governance Innovation
  • Abstract: The China (Shanghai) Pilot Free Trade Zone (SPFTZ) founded in September 2013, is a trial for China's new round of “reform and opening up” (China.org.cn 2008). The SPFTZ has promised liberalization on capital account and trade facilitation as its main objectives. This paper discusses reasons why China needs such a pilot zone after three decades of economic development, examines the differences between the SPFTZ and other free trade zones (FTZs) and highlights the developments of the SPFTZ since its inception. The SPFTZ's initial impressions are assessed, especially its impact on the opening of China's capital account and financial liberalization. The hope is that the success of the SPFTZ, and more pilot policies replicated in China, will give rise to a more balanced Chinese economy in the following decade.
  • Topic: Development, Economics
  • Political Geography: China
  • Author: Fan He, Qiyuan Xu
  • Publication Date: 02-2015
  • Content Type: Working Paper
  • Institution: Centre for International Governance Innovation
  • Abstract: With a balance between radicalism and gradualism, renminbi (RMB) cross-border settlement covers all of the items in China's balance of payments (BoP), including financial accounts, although some of these accounts are still controlled by means of quotas and administrative approval. By the end of the first quarter in 2014, the amount of RMB trade settlement had reached ¥11 trillion since the pilot scheme was launched in July 2009. RMB cross-border settlement has become increasingly important for monetary authorities in terms of macroeconomic policy frameworks. This is especially the case with the more sophisticated conditions in global monetary markets, which result not only from the nontraditional monetary policies employed by the European Central Bank and the Bank of Japan, but also the ongoing quantitative easing (QE) tapering by the US Federal Reserve and the spillover effects on emerging economies. It is increasingly important to evaluate the potential influence of RMB internationalization on China's macroeconomy. A framework, which includes monetary supply and demand, was created to analyze the influences of RMB cross-border settlement on China's domestic interest rate, asset price and foreign exchange (forex) reserves. RMB settlement behaves in different ways with the various items in BoP, such as imports, exports, foreign direct investment (FDI), overseas direct investment (ODI), RMB Qualified Foreign Institutional Investor (RQFII), RMB Qualified Domestic Institutional Investor (RQDII) and cross-border loans. It was found that RMB settlement in different items leads to different effects on China's economy. For RMB export settlement, RMB overseas direct investment (RODI) and RQFII at the initial stage, RMB settlement does not affect China's interest rate and asset price. In addition, more favourable to the People's Bank of China (PBoC), foreign exchange reserves increase less with these reforms; therefore, they should be promoted with priority. However, it is necessary to stress that all settlements should be based on real transactions in order to prevent fake exports. For RMB import settlement, RODI and RQDII at the initial stage, these pilot schemes exert influences on China's economy through interest rate changes, causing an additional increase of forex reserves. Although other short-term items in the financial account could also impact the interest rate, the items in this group are either based on real business such as trade and investment or on financial transactions at the initial stage on a small scale. Therefore, this group has a relatively moderate influence on the interest rate. It is important to remember that this negative by-product is a result of the assumption that the PBoC targets exchange rate stability. If the PBoC sets the exchange rate system to be flexible enough, then such pilot schemes will not cause an increase of forex reserves. It is thus essential to advance exchange rate regime reforms to keep up with the steps of RMB internationalization. With the progress in RQDII and RQFII, the endorsement of issuing dim sum bonds for capital backflows and with the increase in lending from the offshore to the onshore market, these types of RMB cross-border settlements will not exert pressure on forex reserves; however, they do have an impact on the money market. If the amount of RMB flowing through these items is large enough, the interest rate and asset price will be significantly affected, and could be in conflict with the intended monetary policy. These types of transactions are the most risky to monetary authorities; therefore, they should be cautious regarding these items. In the short term, RMB settlements in these kinds of items should be regulated with quotas. In the medium to the longer term, these items should be opened in a gradual way.
  • Topic: Foreign Exchange, Monetary Policy
  • Political Geography: Japan, China, Europe
  • Publication Date: 10-2015
  • Content Type: Working Paper
  • Institution: Economist Intelligence Unit
  • Abstract: After the plunge in commodity prices in 2015, the outlook for raw materials remains highly uncertain amid slowing economic growth in China and looming interest rate rises in the US. In China—which gobbles up nearly one-half of the world’s consumption of aluminium, copper and coal—demand for base materials risks moderating further as the economy moves away from an investment-driven growth model. This will continue to have knock-on effects on the performance of commodity-exporting economies, weighing down on global consumption of raw materials. However, supply responses are beginning to emerge from commodity producers worldwide. Coupled with less favourable weather prospects, this will lead to some market tightening next year, allowing for some price stabilisation after four years of decline. This report provides a snapshot of The Economist Intelligence Unit’s current commodity price indexes, exploring the changing prices for industrial raw materials and food, feedstuffs & beverages. Each article provides analysis and forecasts across a number of key commodities, helping you to assess the fast-changing environment of commodity markets and influence key decision-making processes.
  • Topic: Economics, Emerging Markets, Industrial Policy, International Trade and Finance, Monetary Policy
  • Political Geography: China
  • Publication Date: 01-2015
  • Content Type: Working Paper
  • Institution: East-West Center
  • Abstract: China, the world's leading exporter of electronic products, faces a fundamental dilemma. It is the largest and fastest-growing market for semiconductors, the core component of those electronics products. Yet, at least 80 percent of the semiconductors used in China's electronics products must be imported. As a result, China's trade deficit in semiconductors has more than doubled since 2005 and now exceeds the huge amount it spends on crude oil imports. To correct this unsustainable imbalance, China's new strategy to upgrade its semiconductor industry seeks to move from catching up to forging ahead in semiconductors. The strategy calls for simultaneously strengthening advanced manufacturing and innovation capabilities in China's integrated circuit (IC) design industry and its domestic IC fabrication, primarily through foundry services. Drawing on policy documents and interviews with China-based industry experts, this study takes a close look at the objectives, strategy, and implementation policies of China's new push in semiconductors and examines what this implies for China's prospects in this industry. The study shows that China's new policy resorts to private equity investment rather than subsidy as the tool of industrial policy. The government participates in equity investment and claims it will do so without intervening in management decisions. This policy is expected to reduce the cost of investment funds for a selected group of firms, which is to form a "national team" in the semiconductor industry. China's new policy to upgrade its semiconductor industry through innovation does not represent a radical break with its deeply embedded statist tradition. Within these boundaries, however, the study detects important changes in the direction of a bottom-up, market-led approach to industrial policy. In response to the rising complexity and uncertainty of today's semiconductor industry, the government seems more open to experimentation with new approaches to investment finance and flexible, bottom-up policy implementation, based on multilayered industrial dialogues with private firms. China's policies to forge ahead in semiconductors, thus, provide an interesting example of its current efforts to move from investment-driven catching up to an innovation-driven development model.
  • Topic: Economics, International Trade and Finance, Oil, Science and Technology, Financial Markets
  • Political Geography: China
  • Author: Christopher McNally, Boy Lüthje
  • Publication Date: 09-2015
  • Content Type: Working Paper
  • Institution: East-West Center
  • Abstract: The global financial crisis of 2008-09 led to a policy consensus in China that its socioeconomic development model needed rebalancing. China's rapid development has been based on extensive growth reliant on exports, low wages, environmental exploitation, and the manufacturing of cheap products. China's current plans identify paths to economic rebalancing through intensive growth driven by rising investment in new technologies and manufacturing processes, improved wages and skills, and improved worker and environmental protections. Two industries, automotive and information technology, demonstrate the experience of and opportunities for rebalancing. Both offer improved employment conditions with better wages, but continue to incorporate large swaths of low-wage employment with little protection for workers' health and the environment. Economic rebalancing in China, therefore, has so far only appeared in pockets. Institutional safeguards for wages and labor standards remain constrained by powerful alliances among multinational corporations, Chinese state-owned/private enterprises, and the Chinese state.
  • Topic: Economics, Markets, Science and Technology, Labor Issues, Financial Crisis
  • Political Geography: China
  • Author: Maxine Builder
  • Publication Date: 01-2015
  • Content Type: Working Paper
  • Institution: Atlantic Council
  • Abstract: Growing rates of antimicrobial resistance (AMR) pose a threat to public health that could undo many of the medical advances made over the last seventy years, eroding the global medical safety net and posing a significant threat to national security. Diseases once eliminated by a single course of antibiotics show drug resistance, often to several different classes of drugs. Some of the implications of increasing rates of AMR are intuitive, such as longer duration of illness, extended hospital stays, and higher rates of mortality. But other effects of a postantibiotics world are less obvious, such as the inability to perform life-saving operations or the ability for a simple scratch on the arm to kill. Humanity could soon find itself living in a reality in which communicable diseases such as tuberculosis, cholera, pneumonia, and other common infections cannot be controlled. This potentially catastrophic problem still can be abated, and the global health community, including the World Health Organization (WHO), has highlighted AMR as a priority in global health. But all sectors of the international community, not simply those in public health, need to take immediate steps to reverse the current trends and eliminate the systematic misuse of antimicrobial drugs, especially in livestock, and restore the pipeline of new antimicrobial drugs. The significant health and economic costs of AMR are difficult to quantify due to incomplete data that often underreports the extent of the problem, since there are no standard metrics or consensus on methodology to measure rates of AMR. But even the piecemeal statistics that exist paint a bleak picture. In a 2013 report, the US Centers for Disease Control and Prevention (CDC) reports at least two million Americans acquire serious infections to one or more strains of AMR bacteria annually, and at least 23,000 people die of these infections.1 A 2008 study estimated the excess direct costs to the US medical system attributable to AMR infections at $20 billion, with additional estimated productivity losses to be as high as $35 billion.2 With the increase in resistant infections and continuing rise in medical costs, the cost to the American medical system no doubt also has increased. This trend is not a uniquely American problem; it is truly global in scope. The European Union (EU) reports about 25,000 deaths annually due to drug-resistant bacteria, at an overall, combined cost of $2 billion in healthcare costs and productivity losses.3 There were over 14.7 million incidents of moderate-to-severe adverse reactions to antibiotics each year between 2001 and 2005 in China. Of these, 150,000 patients died annually.4 The most recent available data on China estimates that treatment of AMR infections during that same time period cost at least $477 million, with productivity losses of more than $55 million each year.5 A 2005 study of the United Kingdom (UK) found that the real annual gross domestic losses due to AMR were between 0.4 and 1.6 percent.6 Although slightly outdated, this estimate may be a useful guide in assessing the global impact of AMR, and given the trend of increasing resistance, it is likely that the impact will also increase accordingly. That said, it is prudent to repeat that the disparities in the quality of data reporting standards across China, the United States, the United Kingdom, and the European Union make it difficult to directly compare the severity of the impacts AMR has on each entity. The primary cause of AMR globally is antibiotic overuse and misuse, be it from doctors inappropriately prescribing antibiotics to treat viral infections or individuals seeking over-the-counter antibiotics for self-treatment. But another driver, less obvious than overuse in humans, is the use of antimicrobials in livestock, and the ratio of use in animals as compared to humans is astounding. In the United States, about 80 percent of all antibiotics are consumed in either agriculture or aquaculture. Generally, these drugs are administered to livestock as growth promoters and are medically unnecessary. Resistance in livestock quickly spreads to humans, and many community-acquired infections are the result of a contaminated food supply. Although most infections are acquired in the community, most deaths attributed to resistant infections occur in healthcare settings, and healthcare-acquired (or nosocomial) infections are another driver of AMR. At this point, AMR does not pose an immediate and direct threat to national security. Rather, this is a creeping global security crisis. If current trends continue, these drugs upon which the world relies will lose effectiveness. The gains made in fighting infectious diseases will be reversed, and a wide range of routine surgeries and easily treatable infections will become much more dangerous and deadly. This will cause the health of the world's working population to deteriorate, and the economic productivity and social cohesion of the globe to decline. At any time, a “black swan” event—triggered by an outbreak of drug-resistant tuberculosis, cholera, or pneumonia, for example—could prove catastrophic, endangering the fabric of societies and our globalized economy, forcing a stop to international trade and travel to prevent further spread. The issue of AMR is a tragedy of the commons in which individual incentives lead to the overuse and eventual destruction of a shared resource. International cooperation is required to walk back from this ledge and avoid a postantibiotics world, even though it is impossible to completely reverse the damage already done.
  • Topic: Health, National Security, Infectious Diseases, Health Care Policy
  • Political Geography: United States, China, United Kingdom, America, Europe
  • Author: Enrique Dussel Peters
  • Publication Date: 09-2015
  • Content Type: Working Paper
  • Institution: Atlantic Council
  • Abstract: Weeks before Chinese President Xi Jinping meets with President Barack Obama in Washington, the Atlantic Council's Latin America Center launched a new report that unravels the complexities of the Latin America-China relationship. Titled China's Evolving Role in Latin America: Can it Be a Win-Win?, the report provides five recommendations to help both China and Latin America usher in a mutually beneficial post-commodity-boom relationship. The key to long-term success will be to insure that the relationship promotes—rather than delays—economic growth and social progress in the hemisphere. In the report, renowned Mexico-based China Expert Enrique Dussel Peters, an Atlantic Coucil author and Professor at the Graduate School of Economics at the National Autonomous University of Mexico (UNAM), calls for a ratcheting up of strategic planning and multilateral support so the relation¬ship is a win-win for all parties, including the United States. A deep dive of the state of play is provided for five countries: Argentina, Brazil, Cuba, Mexico, and Venezuela. These countries illustrate the spectrum of ties with China, ranging from those with long and complex historical relation¬ships to those almost entirely structured around recent opportunities for economic cooperation.
  • Topic: Diplomacy, Economics, Bilateral Relations
  • Political Geography: China, Latin America
  • Author: Mario Esteban
  • Publication Date: 10-2015
  • Content Type: Working Paper
  • Institution: Elcano Royal Institute
  • Abstract: Relations between China and Latin America are complex, strengthening, notably asymmetrical and fundamentally economic. Ties have intensified rapidly in recent years, to the extent of shaping the evolution of countries in the region and their processes of regional integration. Spain cannot afford to remain indifferent to this phenomenon, given its close links to this part of the world. The strengthening of ties between China and Latin America has a double-edged impact on Spanish interests. On the one hand, the headway that China is making in the region translates into a loss of Spanish influence and attraction in one of the traditional spheres for Spain’s foreign policy. On the other hand, the greater presence of China can contribute to the development of the region and is generating opportunities for cooperation and synergies with Spanish players, both public and private, on multiple stages.
  • Topic: International Affairs, Geopolitics
  • Political Geography: China, Latin America, Spain
  • Author: Frédéric Grare
  • Publication Date: 03-2014
  • Content Type: Working Paper
  • Institution: Carnegie Endowment for International Peace
  • Abstract: Mutual indifference has long characterized relations between India and Australia, but the two countries' interests are increasingly converging. In particular, New Delhi and Canberra are both wary of China's growing assertiveness in the Asia-Pacific region. Yet there are several constraints hindering the development of a strong India-Australia partnership, and both countries need to be realistic about the prospects for a closer strategic relationship.
  • Topic: Security, Foreign Policy, Defense Policy, Bilateral Relations
  • Political Geography: China, Asia, New Delhi, Australia, Canberra
  • Author: Ashley J. Tellis
  • Publication Date: 01-2014
  • Content Type: Working Paper
  • Institution: Carnegie Endowment for International Peace
  • Abstract: China is poised to become a major strategic rival to the United States. Whether or not Beijing intends to challenge Washington's primacy, its economic boom and growing national ambitions make competition inevitable. And as China rises, American power will diminish in relative terms, threatening the foundations of the U.S.-backed global order that has engendered unprecedented prosperity worldwide. To avoid this costly outcome, Washington needs a novel strategy to balance China without containing it.
  • Topic: Foreign Policy, Economics, Military Strategy
  • Political Geography: United States, China, America, Washington, Asia
  • Author: Yukon Huang, Canyon Bosler
  • Publication Date: 09-2014
  • Content Type: Working Paper
  • Institution: Carnegie Endowment for International Peace
  • Abstract: Much of the media coverage of China's economy suggests that the country is headed for a financial crisis. China's mountain of debt is decried, local government finances are labeled menacing, and a property bubble is called disastrous. But this picture is misleading. While China has serious debt problems, with prudent macroeconomic policies and productivity-enhancing structural reforms, the challenges should be manageable if underlying fiscal issues and growth-related reforms are addressed.
  • Topic: Debt, Economics, Reform
  • Political Geography: China, East Asia
  • Author: Anthony H. Cordesman
  • Publication Date: 04-2014
  • Content Type: Working Paper
  • Institution: Center for Strategic and International Studies
  • Abstract: Creating political unity and reasons to be loyal to government. Creating a new structure of governance and balance between factions. Effective revenue collection, budget planning and expenditure, and limits to corruption. Fully replacing NATO/ISAF with the ANSF and "layered defense". Creating a new structure of security forces, advisors, and aid funds, to include addressing the presence of US and other nations' personnel. Acting on the Tokyo Conference: Creating effective flow and use of aid, economic reform, and limits to corruption and waste Stabilizing a market economy driven by military spending and moving towards development: Brain drain and capital flight. Coping with weather and other challenges to agricultural structure and with pressures to increase the narco - economy. Dealing with neighbors: Pakistan, I ran, Central Asian nations, India, China, and Russia.
  • Topic: International Relations, Security, Military Strategy, Foreign Aid
  • Political Geography: Pakistan, Afghanistan, Russia, China, South Asia, India, North America
  • Author: Gregory B. Poling
  • Publication Date: 07-2014
  • Content Type: Working Paper
  • Institution: Center for Strategic and International Studies
  • Abstract: Tensions in the South China Sea have continued to build over the last year, with the Philippines submitting its evidence against Chinese claims to an arbitration tribunal, Beijing parking an oil rig in waters claimed by Vietnam, and Malaysia growing increasingly anxious about Chinese displays of sovereignty at the disputed James Shoal. These and other developments underscore just how critical managing tensions in the South China Sea are, for the region and for the United States.
  • Topic: International Relations, Diplomacy, Sovereignty, Territorial Disputes
  • Political Geography: United States, China, Malaysia, Beijing, Asia
  • Author: Anthony H. Cordesman
  • Publication Date: 09-2014
  • Content Type: Working Paper
  • Institution: Center for Strategic and International Studies
  • Abstract: The United States and the People's Republic of China (PRC) face a critical need to improve their understanding of how each is developing its military power and how to avoid forms of military competition that could lead to rising tension or conflict between the two states. This report focuses on China's military developments and modernization and how they are perceived in the US, the West, and Asia.
  • Topic: Defense Policy, Military Strategy
  • Political Geography: United States, China, Asia
  • Author: Anthony H. Cordesman
  • Publication Date: 11-2014
  • Content Type: Working Paper
  • Institution: Center for Strategic and International Studies
  • Abstract: It now seems unlikely that the P5+1 countries of the United States, Russia, China, the United Kingdom, France, and Germany can reach a comprehensive agreement with Iran by the end of November. A final agreement remains a possibility, but it seems far more likely that if an agreement is not reached, the negotiations will be extended rather than abandoned all together. The question then arises as to how to judge the outcome of this set of negotiations, be it an actual agreement, an extension, or the collapse of the negotiations.
  • Topic: Diplomacy, Nuclear Weapons, Treaties and Agreements, International Security, Nuclear Power
  • Political Geography: Russia, United States, China, United Kingdom, Iran, France, Germany
  • Author: Anthony H. Cordesman
  • Publication Date: 11-2014
  • Content Type: Working Paper
  • Institution: Center for Strategic and International Studies
  • Abstract: I have been asked to help set the stage for this conference by looking at the broader issues that can address the issue of A World with No Axis? International Shifts and their Impact on the Gulf. I have spent enough time in the Gulf over the years to know how often people have strong opinions, interesting conspiracy theories, and a tendency to ignore hard numbers and facts. We all suffer from the same problems , but today I'm going to focus as much on facts and numbers as possible.
  • Topic: Globalization, Bilateral Relations, Hegemony
  • Political Geography: United States, China
  • Author: Anthony H. Cordesman
  • Publication Date: 11-2014
  • Content Type: Working Paper
  • Institution: Center for Strategic and International Studies
  • Abstract: The United States and the People's Republic of China (PRC) face a critical need to improve their understanding of how each is developing its military power and how to avoid forms of military competition that could lead to rising tension or conflict between the two states. This report focuses on China 's military developments and modernization and how they are perceived in the US, the West, and Asia.
  • Topic: International Security, Military Strategy, Hegemony
  • Political Geography: United States, China, Asia, Korea
  • Author: Michael J. Green, David J. Berteau, Zack Cooper
  • Publication Date: 12-2014
  • Content Type: Working Paper
  • Institution: Center for Strategic and International Studies
  • Abstract: Three years have passed since President Barack Obama laid the groundwork for the U.S. rebalance to the Asia Pacific region. Support for the rebalance strategy is substantial, but questions remain about its implementation. As China's power grows and its assertive- ness in regional disputes increases, U.S. allies and partners continue to rely on the United States to help reinforce regional security. In this increasingly tense Asia Pacific security environment, it is critical that regional allies, partners, and competitors recognize and acknowledge that the United States is a Pacific power with the ability to carry out its rebalance strategy.
  • Topic: Regional Cooperation, Hegemony
  • Political Geography: United States, China, Asia
  • Author: Hui Zhang, Tuosheng Zhang
  • Publication Date: 03-2014
  • Content Type: Working Paper
  • Institution: Belfer Center for Science and International Affairs, Harvard University
  • Abstract: Since the terrorist attacks of September 11, 2001, the threat of nuclear terrorism has become one of the most significant challenges to international security. China has worked to meet this challenge, but a continuing effort is needed. The 2010 and 2012 Nuclear Security Summits raised the issues of nuclear security to a higher political level and enhanced international consensus on the danger of nuclear terrorism. China actively participated in the first two summits, and President Xi Jinping will participate in the Nuclear Security Summit in the Netherlands in March 2014. China's commitment to nuclear security is now well established. Former president Hu Jintao emphasized in 2012 that, "the threat of nuclear terrorism cannot be overlooked." Meeting that threat, as President Hu recognized, "is a long and arduous task."
  • Topic: Arms Control and Proliferation, Nuclear Weapons, Terrorism, Border Control
  • Political Geography: China, Asia
  • Author: Henry Lee, Scott Moore, Sabrina Howell, Alice Xia
  • Publication Date: 10-2014
  • Content Type: Working Paper
  • Institution: Belfer Center for Science and International Affairs, Harvard University
  • Abstract: In recent decades there has been a gradual transformation in environmental policy away from command-and-control policies and toward the use of more flexible, market-based mechanisms. This transformation is evident in the environmental policy of the United States, and the European Union where many scholars and policymakers have accepted the argument that, in comparison with more traditional regulatory approaches, market-centered solutions offer a cheaper and more efficient way to achieve many environmental policy objectives. While market mechanisms may work in certain economies and certain countries, whether they are appropriate for addressing the problem of climate change for countries without an institutionalized domestic market economy, such as china, is still an open question. This report summarizes the discussions, conclusions, and questions posed during The Harvard- Tsinghua Workshop on Market Mechanisms to Achieve a Low-Carbon Future for China. As the report makes clear, most participants believe that market mechanisms have a powerful role to play in achieving a low-carbon future for China. However, considerable differences emerged among the participants regarding the proper design and implementation of market mechanisms, and sig-nificant questions remain concerning the proper role of market mechanisms in addressing climate change. This report, and the workshop it summarizes, does not attempt to resolve these differences, but aims to contribute to an ongoing discussion on the future of climate policy in China. The re¬mainder of this Introduction describes the context for the workshop, its three thematic sessions, and outlines three over-arching themes that emerged. These themes are explored in the summaries of the three thematic sessions, while the Conclusion raises issues for further research. The impetus for the workshop was laid out in three public keynote speeches that addressed, respec¬tively, China's desire to achieve a low-carbon future, reasons to prefer market mechanisms over other potential solutions, and the importance of sustaining innovation in achieving climate policy objectives. China has adopted pilot cap-and-trade programs in five Provinces and two cities – to¬gether accounting for seven percent of the country's total carbon dioxide emissions. These pilots support a vision of achieving a “third industrial revolution” where economic growth and value-creation is de-coupled from carbon dioxide emissions. Second, market mechanisms are generally preferred by economists to regulation and subsidies as a means to reduce emissions because they achieve reductions at a lower overall cost, tend to direct emissions to their highest-value uses, and demand less institutional capacity since emitters rather than governments decide how to reduce emissions. Third, emissions reductions need to be linked to continual technological and policy in¬novation, as well as the need for proper design and implementation of market mechanisms. This point was emphasized with reference to the European Union Emissions Trading System (EUETS), where initial carbon permit prices were too low to incentivize low-carbon research and develop¬ment. The low initial price of the EUETS made it more palatable to industry, but too low to send a significant market signal due to institutional weaknesses and the economic downturn. The keynote addresses framed the discussion for the remainder of the workshop, which consisted of three off-the-record thematic sessions. Each thematic session focused on a different set of mar¬ket mechanisms to address different facets of the climate policy challenge. The first session exam¬ined instruments designed to limit and reduce emissions of carbon dioxide, either by imposition of a tax designed to internalize the external cost of climate disruption or through establishment of a cap-and-trade system whereby permits to emit carbon dioxide are issued under an overall cap set by government, and which can then be traded as some emitters make efficiency improvements. The second session examined the use of subsidies and other incentives to encourage clean technol¬ogy innovation, and the third session examined the potential for a water-rights trading system to allocate water resources under conditions of increasing scarcity triggered by disruption in precipi¬tation and increased evaporation rates. The workshop concluded with a session devoted to developing a framework for further research and debate on the use of market mechanisms to refine and advance China's climate policy. The framework centered on three over-arching issues concerning market mechanisms: policy mix, innovation systems, and governance. The first of these issues concerns the inclusion of market mechanisms in a broader mix of policy responses, including command-and-control, which may be combined to achieve specific policy objectives. The second concerns the use of market mecha¬nisms to develop, sustain, and enhance innovation systems that continually create new solutions and technologies to achieve a low-carbon future. The third concerns the importance of institutional design and governance systems to ensure the proper functioning of market mechanisms.
  • Political Geography: United States, China, Europe
  • Author: Wing Ho Tom Cheng, Gautam Kamath, Kevin Rowe, Eleanor Wood, Taisen Yue
  • Publication Date: 08-2014
  • Content Type: Working Paper
  • Institution: Belfer Center for Science and International Affairs, Harvard University
  • Abstract: Shanghai will lock in a future of high energy costs and worsening air pollution if it does not change current policies for the planning, construction, and operation of new urban developments, particularly transportation systems, and buildings. This report assesses the policy frameworks for these systems and their implications for Shanghai's prospects as a low carbon city. The major obstacles to efficient, low carbon development are the fragmented planning system for land use and transportation, the insufficiently stringent building energy efficiency codes and the lack of investment in opportunities to encourage efficient consumer behavior. Carbon lock-in occurs when infrastructure projects, or other developments with long lifetimes, are designed with high-carbon characteristics that are difficult to reverse later. This issue is par¬ticularly acute for rapidly-urbanizing Shanghai, where there is an emphasis on keeping project costs low and completion times short. This report was prepared as a case study for the Chinese Academy of Social Sciences (CASS), a prominent government-affiliated think tank in China. The recommendations are addressed to the Shanghai Municipal Government. Many recommendations hold relevance for the governments of other fast-growing Chinese cities facing similar carbon lock-in challenges to Shanghai.
  • Political Geography: China, Shanghai
  • Author: Yanzhong Huang
  • Publication Date: 03-2014
  • Content Type: Working Paper
  • Institution: Council on Foreign Relations
  • Abstract: The Global Fund to Fight AIDS, Tuberculosis and Malaria (hereafter "the Global Fund" or "the Fund") is the world's main multilateral funder in global health and the largest financier of anti-AIDS, anti-tuberculosis (TB), and anti-malaria programs. Since its inception in 2002, the Global Fund has disbursed $23.2 billion to more than 140 countries; today, it accounts for 21 percent of the international funding for the prevention and treatment of HIV/AIDS, 82 percent of that for TB, and 50 per cent of that for malaria. Until recently, it awarded grants based on the need of individual countries and the quality of each proposal. As a performance-based initiative, it closely tracks the results flowing from each grant disbursement. As a value-oriented organization, it requires recipients to have transparent, accountable, and inclusive governance mechanisms. Indeed, in terms of multisectoralism and civil society participation, the Fund is considered the most progressive global health institution. But unlike many other health-related multilateral organizations, it is not an implementing agency and lacks in-country presence. Instead, as a funding mechanism, it has grant applications and project/program implementation in each country overseen by a "country coordinating mechanism" (CCM), which draws representatives from government, UN and donor agencies, nongovernmental organizations (NGOs), the private sector, and people living with the diseases.
  • Topic: Civil Society, Economics, Health, Governance
  • Political Geography: China, East Asia
  • Publication Date: 07-2014
  • Content Type: Working Paper
  • Institution: International Crisis Group
  • Abstract: Enmity between China and Japan is hardening into a confrontation that appears increasingly difficult to untangle by diplomacy. Positions on the dispute over the Diaoyu/Senkaku island group are wide apart, and politically viable options to bridge the gap remain elusive. New frictions have arisen. China's announcement in November 2013 of an Air Defence Identification Zone (ADIZ), overlapping that of Japan's and covering the disputed islands, deepened Tokyo's anxiety that Beijing desires both territory and to alter the regional order. Prime Minister Shinzo Abe's provocative visit to the Yasukuni Shrine in December 2013 triggered a bitter argument as to whether Japan has fully atoned for its Second World War aggression, a still vivid sore in the region. Amid heightened suspicion and militarisation of the East China Sea and its air space, the risks of miscalculation grow. Leadership in both countries needs to set a tone that prioritises diplomacy to calm the troubled waters: November's Asia-Pacific Economic Cooperation (APEC) summit might provide such an opportunity.
  • Topic: Diplomacy, Bilateral Relations, Territorial Disputes, Hegemony
  • Political Geography: Japan, China, Asia, Tokyo, Island
  • Publication Date: 08-2014
  • Content Type: Working Paper
  • Institution: International Crisis Group
  • Abstract: The International Conference on Asian Food Security (ICAFS) took place from 21–22 August 2014 at the Grand Copthorne Waterfront Hotel in Singapore. ICAFS 2014, themed 'Towards Asia 2025: Policy and Technology Imperatives' was aimed at understanding the mid-to-long term trends and challenges that affect Asian food security with in the horizon of 2025 and beyond as the region faces significant challenges posed by changes in demography and consumption patterns, performance decline in agriculture, environmental degradation, natural resource depletion and climate change. This conference sought to address questions relating to the future of food policy and technology that contribute to food security in Asia. The choice of the time-horizon of 2025 was specifically earmarked for a number of reasons. The first session is dedicated to highlighting the identified trends and challenges to food security in 2025. From a national planning standpoint, a decade usually represents a good medium-run timeframe for policies to be formulated and enacted. On a regional level ASEAN's post 2015 agenda will also be looking into a 10-year timeframe. The International Food Policy research Institute (IFPRI), the world's leading food policy research centre, has also chosen 2025 as the time period by when the world should aim to eradicate hunger and malnutrition. Hence there seems to be a good convergence on this particular timeframe; one we should all as institutions and individuals commit to make the region and world more food secure. Session 2 highlights the food security challenges and opportunities in the context of Post 2015 Millennium Development Goals (MDGs). This session addresses issues such as how to increase productivity and supply chains; challenges and opportunities for policy, science and technology interventions as well as how to modernize food supply chains. Session 3 presents the topic of market integration and trade facility. The idea is to promote regional integration and food trade as means for sustaining food security by increasing economic access to food. This is relevant to the ASEAN Economic Community 2015 agenda, which includes tariff reduction, enhanced trade facilitation, reduction in barriers to trade among others, and aims to accelerate economic growth and development. Benefits and challenges are also discussed based on the context of the region's two biggest economies, China and India, anticipating 2025.Session 4 discusses options for financing and investing in agricultural development and technological innovation. With global reduction in public spending on research and development (R) in agriculture, options should be diversified where it allows private sectors and other alternative financing such as insurance and micro financing to help poor and vulnerable farmers. Session 5 suggests an integrated approach for Asia towards 2025. This session looks at the role of science and R in further boosting agricultural production and the need for systematic surveillance of food security through different monitoring systems using different types of indexing and benchmarking tools. These monitoring systems should be able to be responsive to potential calamities and mitigate shocks of natural disasters.
  • Political Geography: China, India, Asia
  • Author: Chenyang Li, James Char
  • Publication Date: 03-2014
  • Content Type: Working Paper
  • Institution: International Crisis Group
  • Abstract: In discussions on Myanmar's political reforms since the installation of a civilianised military regime in 2011, most analysts have focused on the bedevilment of bilateral ties between Beijing and Naypyidaw. To be sure, China has since become more attuned to the concerns of non-state actors with the opening up of Myanmar's political space as well as recalibrated its strategies in the face of renewed diplomatic competition from other countries in vying for the affections of the Burmese leadership. In acknowledging the corrections China's Myanmar policy has undergone, this article argues that Beijing's factoring in of Burmese national interests and development needs can help enhance its prospects. While a return to the previous robust bilateral relationship may appear inconceivable in the near future, this article concludes that there is still hope for Beijing in overcoming the challenges posed by Naypyidaw's political transition should it be able to keep up with the latter's evolution over the longer term.
  • Political Geography: China, Beijing, Myanmar, Naypyidaw
  • Author: Nele Noesselt
  • Publication Date: 08-2014
  • Content Type: Working Paper
  • Institution: German Institute of Global and Area Studies
  • Abstract: This paper analyses changes in China's relations with socialist countries. It uses Chinese academic publications to add an insideâ?out perspective to the interpretation of Chinese foreign policy and outlines key socioâ?cognitive determinants of China's foreign behaviour. The paper starts with an overview of role theory, integrating Chinese scholars' writings on images of ego and alter to identify the main patterns and frames of China's selfproclaimed national role(s). It argues that China's actor identity comprises various, partly contradictory role conceptions. National roles derived from China's internal structures and its historical past lead to continuity in Chinese foreign policy, while the 'new' roles resultant from China's rise to global powerhood require it to adapt its foreign policy principles. The paper then examines four bilateral relationships – between China and Cuba, North Korea, the Soviet Union/Russia, and Vietnam – and discusses their development over time in light of China's reformulation of its 'socialist' role conception.
  • Topic: International Relations, Foreign Policy, Socialism/Marxism
  • Political Geography: China, Asia
  • Author: Malcolm Cook
  • Publication Date: 01-2014
  • Content Type: Working Paper
  • Institution: Lowy Institute for International Policy
  • Abstract: Northeast Asia is one of the most important crucibles of global economic and strategic change, and it is far from a stable one. The modern histories of China, Japan and South Korea were forged by Japan's colonisation of China and Korea and the Korean War that divided the peninsula and saw China on the side of North Korea and Japan on the side of South Korea. This recent history has left the bilateral relations on each side of this turbulent triangle strained by a lack of trust, popular antipathy and unresolved territorial disputes. As noted in the project's Beijing workshop, the stalled trilateral free trade agreement negotiations between the three Northeast Asian neighbours, launched with great hope in 1997, have been the victim of this turbulence and strain.
  • Topic: International Relations, Economics, Human Rights, Bilateral Relations, Territorial Disputes
  • Political Geography: Japan, China, Asia, North America
  • Author: Marco Sanfilippo
  • Publication Date: 12-2014
  • Content Type: Working Paper
  • Institution: Istituto Affari Internazionali
  • Abstract: This paper analyses foreign direct investment (FDI) activities of Chinese multinational enterprises (MNEs) in Italy. Chinese investments in Italy present features similar to those in other advanced countries, while also showing some country-specific features. Italy is considered an attractive destination for Chinese investors not only because of its large market and its strategic position as a gateway to the Mediterranean, but also because it is seen as a valuable source of strategic assets in both traditional and advanced industries. The analysis of the Italian case is supported by the presentation of a number of detailed case studies, which exemplify the strategies followed by Chinese companies in the country and help summarise the main implications of this phenomenon. Evidence presented in this paper gives rise to a number of suggestions for policy makers on how to maximise the benefits from rising flows of FDI from China and other emerging economies.
  • Political Geography: China
  • Author: Martin Persson, Sabine Henders, Thomas Kastner
  • Publication Date: 10-2014
  • Content Type: Working Paper
  • Institution: Center for Global Development
  • Abstract: This paper aims to improve our understanding of how and where global supply-chains link consumers of agricultural and forest commodities across the world to forest destruction in tropical countries. A better understanding of these linkages can help inform and support the design of demand-side interventions to reduce tropical deforestation. To that end, we map the link between deforestation for four commodities (beef, soybeans, palm oil, and wood products) in eight case countries (Argentina, Bolivia, Brazil, Paraguay, Democratic Republic of the Congo, Indonesia, Malaysia, and Papua New Guinea) to consumption, through international trade. Although few, the studied countries comprise a large share of the internationally traded volumes of the analyzed commodities: 83% of beef and 99% of soybean exports from Latin America, 97% of global palm oil exports, and roughly half of (official) tropical wood products trade. The analysis covers the period 2000-2009. We find that roughly a third of tropical deforestation and associated carbon emissions (3.9 Mha and 1.7 GtCO2) in 2009 can be attributed to our four case commodities in our eight case countries. On average a third of analyzed deforestation was embodied in agricultural exports, mainly to the EU and China. However, in all countries but Bolivia and Brazil, export markets are dominant drivers of forest clearing for our case commodities. If one excludes Brazilian beef on average 57% of deforestation attributed to our case commodities was embodied in exports. The share of emissions that was embodied in exported commodities increased between 2000 and 2009 for every country in our study except Bolivia and Malaysia.
  • Topic: Energy Policy, Environment, Natural Resources
  • Political Geography: China, Europe, Malaysia, Brazil, Argentina, Latin America, Bolivia
  • Author: Derek M. Scissors
  • Publication Date: 02-2014
  • Content Type: Working Paper
  • Institution: American Enterprise Institute for Public Policy Research
  • Abstract: Reactions to the Chinese Communist Party's announcement of major economic reforms in November have ranged from unbridled optimism to skepticism about the party's ability to implement sweeping change. In fact, the reforms themselves are flawed in multiple ways-most are inauthentic, uncredible, or nonviable. However, the areas of land and finance offer more limited prospects for true reform. The primary means of judging reform progress should be progress in reducing excess capacity. The most likely outcome is that the party will claim success but the economy will slowly stagnate, harming China's partners.
  • Topic: Economics, International Trade and Finance, Reform
  • Political Geography: China, East Asia
  • Author: Derek M. Scissors
  • Publication Date: 07-2014
  • Content Type: Working Paper
  • Institution: American Enterprise Institute for Public Policy Research
  • Abstract: Chinese foreign investment declined through mid-2014 for the first time since the financial crisis. By sector, energy draws the most investment, but a slump in energy spending means that metals and real estate have been more prominent so far in 2014. The United States has received the most Chinese investment since 2005, followed by Australia, Canada, and Brazil. China invests first in large, resource-rich nations but has also diversified by spending more than $200 billion elsewhere. Chinese investment benefits both China and the recipient nation, but host countries must consider thorny issues like Chinese cyberespionage and subsidies.
  • Topic: Economics, Human Rights, International Trade and Finance, Terrorism, Foreign Direct Investment
  • Political Geography: United States, China, Canada, Asia, Brazil, Australia
  • Author: J. Bruce Jacobs
  • Publication Date: 06-2014
  • Content Type: Working Paper
  • Institution: American Enterprise Institute for Public Policy Research
  • Abstract: China has recently attempted to use military force to back up alleged historical claims to the South China Sea and East China Sea; however, upon closer examination, the claims do not hold up. China's belligerent attempts to enforce its claims in the South and East China Seas endanger peace in Asia. China appears unlikely to accept any reasonable proposals that respect history and geography. Southeast Asian nations and other interested countries, like the United States and Australia, must maintain a military presence to deter Chinese aggression while attempting to negotiate a peaceful settlement with China.
  • Topic: International Law, Sovereignty, History, Territorial Disputes, Governance
  • Political Geography: United States, China, Asia, Australia, East China, South China
  • Author: Masahiko Aoki
  • Publication Date: 06-2014
  • Content Type: Working Paper
  • Institution: Walter H. Shorenstein Asia-Pacific Research Center
  • Abstract: This paper argues that game-theoretic approach is incomplete for institutional studies, because comparative institutions as well as institutional changes involve a possibility of multiple equilibria. In order to solve the common knowledge problem, this paper proposes to unify game theoretic thought with an analysis of public representations/propositions to summarize salient features of the recursive/emergent states of play. From this perspective the paper tries to reconcile differences in three accounts of institutions, endogenous outcome, exogenous rules and constitutive rules accounts. Then, the unified approach is applied to comparative and historical cases of the Tokugawa Japan and the Qing China. Specifically it sheds new light into the coalitional nature of Tokugawa Baku-Han regime nesting the fundamental Samurai-village pact as well as the tendency toward decentralization of political violence and fiscal competence to the provincial level toward the end of the Qing China. From these new historical interpretations, endogenous strategic forces and associated public propositions leading to institutional changes through the Meiji Restoration and the Xinhai Revolution are identified and compared.
  • Topic: Nationalism, Political Theory, Governance
  • Political Geography: China
  • Author: Timmons Roberts, Guy Edwards
  • Publication Date: 03-2014
  • Content Type: Working Paper
  • Institution: The Brookings Institution
  • Abstract: China's rapidly increasing investment, trade and loans in Latin America may be entrenching high-carbon development pathways in the region, a trend scarcely mentioned in policy circles. High-carbon activities include the extraction of fossil fuels and other natural resources, expansion of large-scale agriculture and the energy-intensive stages of processing natural resources into intermediate goods. This paper addresses three examples, including Chinese investments in Venezuela's oil sector and a Costa Rican oil refinery, and Chinese investment in and purchases of Brazilian soybeans. We pose the question of whether there is a tie between China's role in opening up vast resources in Latin America and the way those nations make national climate policy and how they behave at the United Nations Framework Convention on Climate Change (UNFCCC) negotiations. We focus on the period between the 2009 Copenhagen round of negotiations and the run-up to the Paris negotiations scheduled for 2015, when the UNFCCC will attempt to finalize a successor agreement to the Kyoto Protocol.
  • Topic: Agriculture, Development, International Trade and Finance, Oil, Natural Resources, Foreign Direct Investment
  • Political Geography: China, Latin America
  • Author: Sabrina Zajak
  • Publication Date: 04-2014
  • Content Type: Working Paper
  • Institution: Max Planck Institute for the Study of Societies
  • Abstract: This paper presents a novel analytical framework to study transnational activism in the context of today’s international governance architecture. While there is a considerable amount of literature on the emergence, development, and effects of transnational activism in specific transnational governance arrangements or within a specific local context, an integrated framework that analyzes the dynamic interplay between activism, transnational institutions, and domestic contexts is still lacking. The framework of transnational pathways of influence intends to help close this gap. It integrates insights from social movement research on transnational collective action and insights from institutional theorists on institutional interactions. The framework consists of three major concepts: the concept of intra-pathway dynamics captures the relationship of mobilization and institutional chance within one path; the concept of inter-pathway dynamics encompasses institutional interactions and interdependencies between activism across paths; and the concept of the global–local link characterizes the relationship of activism within each path to local actors, the domestic context, and the political regime. The paper outlines this framework and exemplifies it by taking the case of transnational labor-rights activism targeting labor-rights violations in a strong and nondemocratic state: the People’s Republic of China. It shows that the study of activism across different transnational pathways over time is necessary to understand the combined effects of activist interventions, institutional co-evolution and interaction as an explanation of the process of selective convergence between global norms and local practices.
  • Topic: Development, Politics, Labor Issues, Governance, Social Movement
  • Political Geography: China
  • Author: Geoffrey Till
  • Publication Date: 09-2014
  • Content Type: Working Paper
  • Institution: The Strategic Studies Institute of the U.S. Army War College
  • Abstract: The relative rise of China is likely to lead a major shift in the world's strategic architecture, which the United States will need to accommodate. For the outcome to be generally beneficial, China needs to be dissuaded from hegemonic aspirations and retained as a cooperative partner in the world system. This will require a range of potentially conflicting thrusts in U.S. policy.
  • Topic: Security, Foreign Policy, Arms Control and Proliferation, Emerging Markets, International Cooperation, Bilateral Relations
  • Political Geography: United States, China, East Asia
  • Author: Andrew Monaghan, Henry Plater-Zyberk
  • Publication Date: 08-2014
  • Content Type: Working Paper
  • Institution: The Strategic Studies Institute of the U.S. Army War College
  • Abstract: The views expressed in this report are those of the authors and do not necessarily reflect the official policy or position of the Department of the Army, the Department of Defense, or the U.S. Government. Authors of Strategic Studies Institute (SSI) and U.S. Army War College (USAWC) Press publications enjoy full academic freedom, provided they do not disclose classified information, jeopardize operations security, or misrepresent official U.S. policy. Such academic freedom empowers them to offer new and sometimes controversial perspectives in the interest of furthering debate on key issues. This report is cleared for public release; distribution is unlimited.
  • Topic: Security, Defense Policy, International Cooperation, Terrorism
  • Political Geography: United States, China, East Asia
  • Author: Clarence J. Bouchat
  • Publication Date: 06-2014
  • Content Type: Working Paper
  • Institution: The Strategic Studies Institute of the U.S. Army War College
  • Abstract: The region around the Paracel Islands and the South China Sea is important to the economies of the surrounding states in terms of the fish resources and potential for energy reserves, which result in diplomatic and physical clashes. The large flow of maritime commerce around the Paracel Islands is also crucial to the economic well-being of the region and the world, and occupation of the islands dictates control of the surrounding sea's maritime traffic, security, and economic exploitation. Although China currently occupies all of the Paracels, they are also vigorously claimed by Vietnam.
  • Political Geography: United States, China, Vietnam, Island
  • Author: Roy Kamphausen (ed.), David Lai, Travis Tanner
  • Publication Date: 04-2014
  • Content Type: Working Paper
  • Institution: The Strategic Studies Institute of the U.S. Army War College
  • Abstract: The 2012 PLA (People’s Liberation Army) conference took place at a time when the Chinese Communist Party (CCP) was making its leadership transition from Hu Jintao to Xi Jinping. The conference discussion focused on the developments in China’s national security and in the PLA during the Hu Jintao Administration from 2002 to 2012. Key observations are presented in this volume. The most significant ones are Hu Jintao’s promulgation of the new Historic Missions for the PLA, and Hu’s complete handover of power to his successor. The former has turned on the green light for the PLA to go global. The latter is a milestone is the CCP’s institution building.
  • Topic: Security, Communism, Politics, History, Military Affairs
  • Political Geography: China
  • Author: Steven Ditto
  • Publication Date: 04-2014
  • Content Type: Working Paper
  • Institution: The Washington Institute for Near East Policy
  • Abstract: The Islamic Republic has added to its nuclear negotiating team a law professor who has extensive experience making Iran's case in international disputes. On April 9, Iran and the P5+1 (Britain, China, France, Russia, and the United States, plus Germany) concluded the latest two-day round of talks on a nuclear deal, setting the next round for May 13. Earlier in the week, on April 7, Iranian media reported the appointment of Dr. Jamshid Momtaz as head of a "legal advisory group" to the Iranian negotiating team. A French-educated expert on sanctions, disarmament, and UN procedure, Momtaz has represented the Iranian government in some of its highest-profile international legal proceedings, including in claims against the U.S. government at the Hague-based International Court of Justice (ICJ). Momtaz's familiarity with the United Nations, his extensive practice in Europe, and his proven history of leveraging complex legal arguments to advance Iran's international interests indicate that in these latest rounds of P5+1 talks Tehran is likely looking for unconventional ways to "address" and "bring a satisfactory conclusion to" the UN Security Council resolutions against it, as called for in the Joint Plan of Action (JPOA) agreed to in Geneva last November.
  • Topic: Diplomacy, Economics, Human Rights, International Cooperation, Nuclear Weapons, Sanctions, Nuclear Power
  • Political Geography: Russia, United States, China, Iran, France
  • Author: Daniel H. Rosen, Thilo Hanemann
  • Publication Date: 04-2014
  • Content Type: Working Paper
  • Institution: Asia Society
  • Abstract: WHILE CHINA STARTED INVESTING AROUND THE WORLD in the early 2000s, the first waves of Chinese overseas investment targeted mostly extractive mining activities in developing countries and resource-rich advanced economies such as Australia and Canada. Over the past five years, however, Chinese capital has begun to flow into non-extractive sectors in advanced economies, increasingly targeting technology- and innovation-intensive industries. Initially, the surge of Chinese outward foreign direct investment (OFDI) in the United States largely responded to opportunities in energy and real estate, but access to technology and innovation is now becoming an important driver. In the first quarter of 2014 alone, Chinese investors announced high-tech deals worth more than $6 billion, including the takeovers of Motorola Mobility, IBM's x86 server unit, and electric carmaker Fisker.
  • Topic: Economics, International Trade and Finance, Foreign Direct Investment
  • Political Geography: China, America, Canada, Asia, Australia