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  • Author: Danielle Cohen
  • Publication Date: 08-2017
  • Content Type: Working Paper
  • Institution: Korean Economic Institute (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: 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: 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: 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: 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: 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: 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: 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: 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: 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: 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: 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: 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
  • 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: 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: 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: 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
  • 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
  • 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: 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: 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: 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
  • 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: 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: 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: 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: 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: 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: 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
  • Author: Rajesh Basrur
  • Publication Date: 04-2014
  • Content Type: Working Paper
  • Institution: S.Rajaratnam School of International Studies
  • Abstract: The Cold War debate between Albert Wohlstetter and Patrick Blackett over the requirements of effective deterrence is of profound relevance half a century later. The two thinkers offered systematic arguments for their maximalist (Wohlstetter) and minimalist (Blackett) positions. How we conceive of these requirements shapes the kinds of nuclear weapons doctrines, forces and postures we adopt. Whereas the Wohlstetter-Blackett debate was based largely on deductive logic, the opposing arguments can today be assessed on the basis of evidence drawing from nearly seven decades of strategic behaviour between nuclear rivals. An analysis of major confrontations in five nuclear dyads – United States-Soviet Union, United States-China, Soviet Union-China, India-Pakistan, and United States-North Korea – clearly offers much stronger support for Blackett?s minimalist case than for Wohlstetter?s maximalist one. Effective deterrence does not require second-strike capability as defined by Wohlstetter and the nuclear balance has no effect on a state?s capacity to deter. Consequently, the central tenets of orthodox nuclear deterrence theory and doctrine are shown to be without foundation. For policymakers, the optimal forces and postures required for effective deterrence are therefore less demanding and the hurdles in the path of arms control and at least partial disarmament less difficult to cross.
  • Topic: Conflict Prevention, Cold War, Nuclear Weapons, Weapons of Mass Destruction, Power Politics
  • Political Geography: Pakistan, United States, China, India, North Korea
  • 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: Li Jianwei
  • Publication Date: 04-2014
  • Content Type: Working Paper
  • Institution: S.Rajaratnam School of International Studies
  • Abstract: Although disputes in the South China Sea are in general under control since 2009, developments show that China-Philippines and China-Vietnam are two key relationships that have experienced incidents leading to fluctuating levels of tension in the South China Sea region. This study reviews the evolution of these two relationships in relation to bilateral disputes in the South China Sea and the respective approaches to managing these disputes, with emphasis on the post-2009 period. By comparing the China-Philippines and China-Vietnam approaches, it intends to analyse the differences/similarities and their implication on the management of the South China Sea disputes, as well as their bilateral relations in a broader sense.
  • Topic: Security, Bilateral Relations, Territorial Disputes
  • Political Geography: China, Asia, Vietnam, Philippines
  • 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: Nick Holdstock
  • Publication Date: 04-2014
  • Content Type: Working Paper
  • Institution: Norwegian Peacebuilding Resource Centre
  • Abstract: On March 1st 2014 a knife-wielding group of ten people attacked passengers and passers-by in the railway station in Kunming, capital of China's south-western Yunnan province. Twenty-eight were killed and 113 injured. By the following day the government was describing the incident as a "separatist" attack perpetrated by "terrorists from Xinjiang". The attack in Kunming is the latest in a series of violent incidents in China that the government attributes to radical Islamist organisations that aim to promote what it calls the "Three Evils" of "terrorism, separatism and religious extremism". These acts have predominantly occurred in China's far western Xinjiang region, most recently in January and February 2014. Incidents in other parts of China have been attributed to the same forces.
  • Topic: Political Violence, Communism, Economics, Human Rights, Islam
  • Political Geography: China, Asia
  • Author: Chris Alden
  • Publication Date: 03-2014
  • Content Type: Working Paper
  • Institution: Norwegian Peacebuilding Resource Centre
  • Abstract: China is on course to becoming more deeply involved in Africa's security landscape. While the motivation behind Chinese involvement remains primarily economic, the growing exposure of its interests to the vagaries of African politics, as well as pressures to demonstrate greater global activism, are bringing about a reconsideration of Beijing's approach to the continent. China faces threats on three fronts to its standing in Africa: reputational risks derived from its assocation with certain governments; risks to its business interests posed by mecurial leaders and weak regulatory regimes; and risks faced by its citizens operating in unstable African environments. Addressing these concerns poses challenges for Beijing, whose desire to play a larger role in security often clashes with the complexities of doing so while preserving Chinese foreign policy principles and economic interests on the continent.
  • Topic: Economics, Human Rights, International Trade and Finance, Bilateral Relations
  • Political Geography: Africa, China, Asia
  • Author: Sean Kay
  • Publication Date: 01-2014
  • Content Type: Working Paper
  • Institution: Centre for International Peace and Security Studies
  • Abstract: This working paper demonstrates that the announced "pivot" to Asia by the United States represents a major break with twenty years of liberal and neoconservative priorities in American foreign policy. The pivot to Asia reflects a return to realist thinking in terms of America's international goals. The paper also shows that this shift is difficult to achieve due to existing priorities in other regions and domestic policy dynamics. The paper begins with a brief explanation of the traditions of idealism and realism in American foreign policy. The analysis then explains the various dynamics necessary to implement the "pivot" to Asia and shows the major constraints on implementing this new approach. The conclusion shows that emerging priorities suggest both a need and capacity for a realist alignment of American foreign policy. However, institutionalized constraints risk undermining America's ability to adjust to a new set of twenty-first century global economic and security interests.
  • Topic: Foreign Policy, Arms Control and Proliferation, Emerging Markets
  • Political Geography: United States, China, East 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: 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
  • 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: 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: Mathieu Duchâtel, Oliver Bräuner, Zhou Hang
  • Publication Date: 06-2014
  • Content Type: Working Paper
  • Institution: Stockholm International Peace Research Institute
  • Abstract: Chinese foreign policy is slowly shifting away from a strict interpretation of non-interference, towards a pragmatic and incremental adaptation to new challenges to China's globalizing economic and security interests. Although there has always been a degree of flexibility in Chinese foreign policy regarding non-interference, even during the Maoist period, the principle has by and large remained a key guideline for diplomatic work and a major rhetorical tool.
  • Topic: Foreign Policy, Governance
  • Political Geography: China, Asia
  • Author: Shuja Nawaz, Mohan Guruswamy
  • Publication Date: 04-2014
  • Content Type: Working Paper
  • Institution: Atlantic Council
  • Abstract: India and Pakistan, born out of a single British-ruled entity in 1947, have continued an implacable rivalry marked by periodic wars and hostilities as well as through proxies. This unending conflict has led them to invest heavily in their militaries and even to choose nuclear weaponry as a deterrence on the part of Pakistan toward India and on India's part toward both Pakistan and China. Although there have been occasional moves toward confidence building measures and most recently toward more open borders for trade, deep mistrust and suspicion mark this sibling rivalry. Their mutual fears have fuelled an arms race, even though increasingly civil society actors now appear to favor rapprochement and some sort of an entente. The question is whether these new trends will help diminish the military spending on both sides.
  • Topic: Security, Foreign Policy, Economics, International Trade and Finance, Reform
  • Political Geography: Pakistan, China, India, Asia, Southeast Asia
  • Author: Jason Marczak, Peter Schechter
  • Publication Date: 02-2014
  • Content Type: Working Paper
  • Institution: Atlantic Council
  • Abstract: Why is now the right moment to commission a poll on the US public's views toward Cuba and US-Cuba relations? Why is a new, nonpartisan Latin America center reaching out to grab the third rail of Latin American foreign policy in the United States? Both good questions. Sometimes in foreign policy, structural impediments or stark policy differences will stymie progress in a certain area. Relations with China could not proceed until the United States recognized a “one China” policy that forever downgraded US relations with Taiwan. An activist foreign policy with Africa was impossible until the United States denounced apartheid.
  • Topic: International Relations, Foreign Policy, Reform
  • Political Geography: Africa, United States, China, Cuba, Latin America
  • 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
  • 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: Aaron Shull
  • Publication Date: 06-2014
  • Content Type: Working Paper
  • Institution: Centre for International Governance Innovation
  • Abstract: Examining global cybercrime as solely a legal issue misses an important facet of the problem. Understanding the applicable legal rules, both domestically and internationally, is important. However, major state actors are using concerted efforts to engage in nefarious cyber activities with the intention of advancing their economic and geostrategic interests. This attempt to advance a narrow set of economic interests through cybercrime and economic cyber espionage holds to the potential to erode the trust in the digital economy that has been a necessary condition for the success of the Internet as an economic engine for innovation and growth. By pursuing these efforts, states are prioritizing short-term interests over long-term stability and a responsibly governed, safe and secure Internet platform. This paper explores the recent unsealing of a 31-count indictment against five Chinese government officials and a significant cyber breach, perpetrated by Chinese actors against Western oil, energy and petrochemical companies. The paper concludes by noting that increased cooperation among governments is necessary, but unlikely to occur as long as the discourse surrounding cybercrime remains so heavily politicized and securitized. If governments coalesced around the notion of trying to prevent the long-term degradation of trust in the online economy, they may profitably advance the dialogue away from mutual suspicion and toward mutual cooperation.
  • Topic: Defense Policy, Crime, International Trade and Finance, Terrorism, Bilateral Relations
  • Political Geography: United States, China, Asia
  • Author: Wenhua Shan, Lu Wang
  • Publication Date: 08-2014
  • Content Type: Working Paper
  • Institution: Columbia Center on Sustainable Investment
  • Abstract: Since China and the European Union (EU) announced their decision to negotiate a bilateral investment treaty (BIT) at the 14th China-EU Summit in February 2012, the two sides have engaged in two rounds of negotiations. If successful, it will be the first standalone EU BIT, a BIT between the world's largest developed economy and the world's largest developing economy, and will occupy a unique place in the history of BIT negotiations.
  • Topic: Economics, International Trade and Finance, Bilateral Relations, Foreign Direct Investment
  • Political Geography: China, Europe, 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: Kai He, Huiyun Feng
  • Publication Date: 09-2014
  • Content Type: Working Paper
  • Institution: S.Rajaratnam School of International Studies
  • Abstract: China's assertive diplomacy in recent years has ignited intense debates among International Relations (IR) scholars. Some argue that China's assertive behavior is rooted in its perception of increasing power and capabilities. Others suggest that it is U.S. policies that triggered China's assertive reactions. Relying on an original survey of China's IR scholars conducted in Beijing in 2013 and using structural equation modeling (SEM), we empirically examine Chinese IR scholars' attitude towards Chinese power versus the United States, their perceptions of U.S. policy in Asia, and their preference for an assertive Chinese foreign policy. We find that both the power perception and policy reaction arguments make sense in accounting for Chinese IR scholars' attitude regarding China's assertive diplomacy. However, our research suggests that a more pessimistic view on Chinese power is more likely to be associated with a preference for an assertive foreign policy.
  • Topic: Foreign Policy, Diplomacy, Emerging Markets
  • Political Geography: China, East Asia
  • 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: 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: Ekaterina Klimenko
  • Publication Date: 09-2014
  • Content Type: Working Paper
  • Institution: Stockholm International Peace Research Institute
  • Abstract: Russia has identified the Arctic as both a strategic priority and a resource base for the 21st century. Against a backdrop of expectations about the opportunities available in the Arctic, Russia has primarily pursued a policy focused on strengthening national sovereignty in the region. However, despite the considerable attention given to the development of the Arctic by the Russian leadership, progress in achieving Russia's goals in the Arctic has been slow.
  • Topic: Migration
  • Political Geography: Russia, 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: 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: 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: Jason Healey, Klara Tothova Jordan, John C. Mallery, Nathaniel V. V. Youd
  • Publication Date: 11-2014
  • Content Type: Working Paper
  • Institution: Atlantic Council
  • Abstract: Confidence-building measures (CBMs) are an instrument of international politics, negotiated by and applied between states to strengthen international peace and security by reducing and eliminating the causes of mistrust, fear, misunderstanding, and miscalculations that states have about the military activities of other states.
  • Political Geography: Russia, China, America
  • Author: Daniel H. Rosen
  • Publication Date: 10-2014
  • Content Type: Working Paper
  • Institution: Atlantic Council
  • Abstract: PRESIDENT XI JINPING ANNOUNCED a sweeping overhaul for China's economy in November 2013, with pledges to make market forces decisive, treat homegrown and foreign investors with the same laws and regulations, and change the mission statement of the government. The reform program, known as the Decisions plan and presented at the Communist Party leadership's Third Plenum meeting, is comprehensive and marks a turning point in China's modern history. The degree of boldness also indicates that after 35 years of world-beating economic performance, China's development model is obsolete and in need of urgent, not gradual, replacement. To justify the risks, President Xi quoted an impassioned plea for policy modernization by his predecessor Deng Xiaoping: the only way to avoid a dead end – a blind alley – is to deepen reform and opening both at home and with the world.
  • Topic: Economics, International Trade and Finance, Political Economy, Reform
  • Political Geography: China
  • Author: Masahiko Aoki
  • Publication Date: 06-2014
  • Content Type: Working Paper
  • Institution: 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: Dieter Ernst
  • Publication Date: 10-2014
  • Content Type: Working Paper
  • Institution: East-West Center
  • Abstract: China's new strategy to upgrade its semiconductor industry (outlined in the "Guidelines to Promote National Integrated Circuit Industry Development," June 24, 2014), seeks to move from catching-up to forging ahead in semiconductors, by strengthening simultaneously China's integrated circuit (IC) design industry and domestic IC foundry services.
  • Topic: Economics, Globalization, Industrial Policy, Markets, Science and Technology
  • Political Geography: China, Asia
  • Author: John Whalley, Hejing Chen
  • Publication Date: 10-2014
  • Content Type: Working Paper
  • Institution: Centre for International Governance Innovation
  • Abstract: China, in the next few years, faces the prospect of major regional and bilateral trade negotiations possibly including the Trans-Pacific Partnership (TPP), the Regional Comprehensive Economic Partnership with the Association of Southeast Asian Nations (ASEAN) and Japan, Korea, India, Australia and New Zealand and separate negotiations with India, Korea and Japan, potentially the United States and even possibly the European Union. A likely key element in such negotiations, and one already raised by the United States in the TPP negotiations, is that of trade arrangements involving state-owned enterprises (SOEs). China is viewed from outside as having a large SOE sector, and large SOEs are viewed as having a protected monopoly position in domestic Chinese markets.
  • Topic: International Trade and Finance, Markets, World Trade Organization
  • Political Geography: Japan, China, Europe, India, Asia, Australia, Korea
  • Author: Alex He
  • Publication Date: 10-2014
  • Content Type: Working Paper
  • Institution: Centre for International Governance Innovation
  • Abstract: As the largest emerging economy, China believes that the Group of Twenty (G20), instead of the Group of Eight (G8), is the ideal platform for its participation in global governance. This paper examines the reasons why China joined the G20 rather than the G8, and then focuses on a detailed review of China's participation in G20 summits since the enhanced forum began in 2008. China took a very active and cooperative attitude in dealing with the global financial crisis in 2008-2009. The paper observes that China also insisted on its own agenda for reforms to the international monetary system, through reforms to the international financial institutions that manage it — in particular, raising the number of voting shares and the representation of developing countries at the IMF and the World Bank. Based on the reviews of China's performance in the G20 summits since 2008, the paper explores China's policy making through its participation in the G20, determining that it is shaped by several major economic departments in addition to the Ministry of Foreign Affairs, and coordinated by a vice premier responsible for economic and financial affairs. The paper concludes that China has gained immensely from its participation in the G20. Most importantly, China entered the centre stage of global economic governance through the G20, which allowed the country to demonstrate that it is a responsible great power, and communicate and maintain relations with other major powers. The main challenges China has faced since joining the G20, from the perspective of some Chinese scholars, are a lack of capacity for agenda setting and shaping initiatives, as well as inadequate communication and coordination among different government departments and between the Sherpa and financial tracks of the G20.
  • Topic: Economics, International Political Economy, International Trade and Finance, International Monetary Fund, Global Recession, Financial Crisis, World Bank
  • Political Geography: China
  • Author: Hongying Wang
  • Publication Date: 09-2014
  • Content Type: Working Paper
  • Institution: Centre for International Governance Innovation
  • Abstract: More than a decade after it put forth the idea of the Sovereign Debt Restructuring Mechanism (SDRM) in the early 2000s, the International Monetary Fund (IMF) is again seeking to engage various stakeholders in a new round of discussions about improving sovereign debt restructuring. As a major international creditor, China is an important force to reckon with. So far, the Chinese government has said little publicly regarding the recent IMF reports on this issue. Chinese policy makers and analysts are supportive of the IMF's attempt to explore ways for earlier and more orderly debt restructuring, but they find the proposed reforms to be only marginally useful. From China's point of view, the most important question in debt management is how to prevent excessive borrowing and lending and reduce the likelihood of unsustainable debt. It sees discussions about the mechanisms of sovereign debt restructuring as having little effect on this question. As an international creditor, China's main concern has to do with safeguarding the value of its overseas assets from the detrimental effect of macroeconomic policies of Western countries, especially the United States. This is not an issue that can be addressed by improved debt restructuring mechanisms. China remains deeply concerned about the power imbalance between developed and developing countries in the international financial system. Going forward in the global dialogue over sovereign debt restructuring, China's priority will be to minimize international financial instability while protecting the development needs of developing countries.
  • Topic: Debt, International Monetary Fund
  • Political Geography: United States, China
  • Author: Alex He
  • Publication Date: 08-2014
  • Content Type: Working Paper
  • Institution: Centre for International Governance Innovation
  • Abstract: The G20 has emerged as the lynchpin of China's involvement in global economic governance. It remains the only economic institutional setting where the country can operate on par with major Western powers. China has a strong interest in maintaining the status of the G20 as the premier forum for economic cooperation, and a vested interest in ensuring that the G20 does not degrade into yet another “talk shop” of multilateral diplomacy. However, the Chinese leadership's current approach to the G20 is not driven by a desire to position the country as a leading agenda setter. Instead, China's main policy priority is ensuring that the country is treated as an equal and respected partner. China recognizes that in many ways it is still in a comparatively weak position and does not have the institutional capabilities and talents needed to operate in global financial and economic institutions such as the G20.
  • Topic: Economics, International Cooperation, International Trade and Finance
  • Political Geography: United States, China
  • Author: David A. Welch
  • Publication Date: 08-2014
  • Content Type: Working Paper
  • Institution: Centre for International Governance Innovation
  • Abstract: As events demonstrate on a regular basis, the Asia-Pacific is a region prone to crisis. In recent years there has been a marked increase in the use of military force to signal interests or resolve, and even, in some cases, to alter the status quo, particularly in the East and South China Seas. Fortunately, none of these “mini crises” have escalated to the level of a shooting war. The received wisdom is that, all other things being equal, no country in the region desires conflict, owing to their high levels of economic interdependence. However, it is clear that in a context of rising nationalism, unresolved historical grievances and increasing hostility and suspicion, there is no reason to be complacent about the prospect of managing every future crisis successfully. Hence the recent surge in interest in crisis management “mechanisms” (CMMs). This paper explores the dangers of thinking of crisis management in an overly technical or mechanistic fashion, but also argues that sensitivity to those very dangers can be immensely useful. It draws upon US and Soviet experiences in the Cuban missile crisis to inform management of a hypothetical future Sino-American crisis in the East China Sea, and to identify general principles for designing and implementing CMMs.
  • Topic: Conflict Prevention, Foreign Policy, International Security, Political Theory
  • 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: Nirupama Rao
  • Publication Date: 09-2014
  • Content Type: Working Paper
  • Institution: Watson Institute for International Studies, Brown University
  • Abstract: When speaking of the politics of history involving the relationship between India and China in the period before the conflict of 1962, it is essential that we should have a sense of proportion about that history, distilling the meaning of the events that transpired and the key determinants in the evolving relationship between these two Asian powers in mid-century. How does that history connect to us, and how we shape our future? While there can be infinite meanings attached to what caused the war between India and China, what lessons are to be learnt about leadership, about public opinion, about logistical and military preparedness, about narrowing differences, and about negotiation?
  • Political Geography: China, India, Asia
  • 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
  • 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
  • Publication Date: 12-2014
  • Content Type: Working Paper
  • Institution: Economist Intelligence Unit
  • Abstract: In the debate over global manufacturing competitiveness, the labour cost question looms largest. The rapid growth in Chinese wages is having an impact not only on firms currently manufacturing in China, but also on emerging economies seeking to grab a share of that manufacturing activity (like Vietnam and Bangladesh) and developed countries seeking to revive their own manufacturing sectors (like the US). Rising wages in China could threaten the country's status as a manufacturing powerhouse if they are not matched by comparable gains in productivity.
  • Political Geography: Bangladesh, United States, China, Vietnam
  • 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: 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: Hongying Wang
  • Publication Date: 12-2014
  • Content Type: Working Paper
  • Institution: Centre for International Governance Innovation
  • Abstract: As part of a shift toward a more activist foreign policy, China has accelerated its engagement in minilateralism, which is the gathering of a sub-group of countries within or outside a multilateral institution to solve a problem when the multilateral institution is unable to reach agreements among its members. This paper examines China's minilateral diplomacy in the financial area. Although China has been involved in regional financial cooperation for the last 15 years, its recent minilateral initiatives, such as the New Development Bank (NDB), the Contingent Reserve Arrangement (CRA) and the Asian Infrastructure Investment Bank (AIIB), are far more China-centred. What are China's motivations? Will these minilateral schemes undermine the traditional multilateral institutions? This paper argues that the Chinese government seeks to use financial minilateralism to stimulate reform of global financial institutions, provide financial public goods for its regional neighbours and fellow developing countries, as well as directly promote China's economic and political interests. China's financial minilateralism is not meant to overthrow the existing multilateral institutions, but this could change depending on the interaction between how the world responds to China's new activism and the domestic political dynamics in China. Western countries should understand and accommodate China's aspirations and encourage China to keep its minilateralism open.
  • Political Geography: China
  • 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: 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