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  • Author: Scott A. Snyder, Geun Lee, You Young Kim, Jiyoon Kim
  • Publication Date: 01-2018
  • Content Type: Working Paper
  • Institution: Council on Foreign Relations
  • Abstract: Despite becoming influential on the world scene, South Korea remains a relatively weak country surrounded by larger, more powerful neigh- bors. This contrast between its global rank as a top-twenty economy and its regional status as the weakest country in Northeast Asia (with the exception of North Korea) poses a paradox for South Korean for- eign policy strategists. Despite successes addressing nontraditional security challenges in areas such as international development, global health, and UN peacekeeping, South Korea is limited in its capacity to act on regional security threats. South Korea has historically been a victim of geopolitical rivalries among contenders for regional hegemony in East Asia. But the coun- try’s rise in influence provides a glimmer of hope that it can break from its historical role by using its expanded capabilities as leverage to shape its strategic environment. The pressing dilemma for South Korean strategic thinkers is how to do so. As the regional security environment becomes more tense, South Korea’s strategic options are characterized by constraint, given potentially conflicting great-power rivalries and Pyongyang’s efforts to pursue asymmetric nuclear or cyber capabilities at Seoul’s expense. South Korea’s relative weakness puts a premium on its ability to achieve the internal political unity necessary to maximize its influence in foreign policy. Students of Korean history will recall that domestic factionalism among political elites was a chronic factor that hamstrung Korea’s dynastic leadership and contributed to its weakness in dealing with outside forces.
  • Topic: Foreign Policy, Diplomacy, International Cooperation, Regional Cooperation, Military Strategy
  • Political Geography: China, Asia, South Korea, North Korea
  • Author: Council on Foreign Relations
  • Publication Date: 04-2018
  • Content Type: Working Paper
  • Institution: Council on Foreign Relations
  • Abstract: Emerging challenges to international order require cooperation between the United States and China, two countries that share a common interest in preventing the world from becoming more dangerous and disorderly. U.S.-China relations are becoming more strained and antagonistic, however, and the prospects for cooperation appear to be receding. To explore whether there are still grounds for cooperation on issues of common concern between the two countries, in March 2018 the Center for Preventive Action (CPA) at the Council on Foreign Relations convened a group of fifteen experts from the United States and China for the workshop “Managing Global Disorder: Prospects for U.S.-China Cooperation.” CPA partnered with Peking University’s School of International Studies in Beijing for the workshop and also met with experts at the China Institutes of Contemporary International Relations in Beijing and the Shanghai Institutes for International Studies in Shanghai. During the workshop, President Donald J. Trump announced plans to impose about $60 billion in new tariffs on Chinese imports. While trade was a major topic of discussion, it was by no means the only area discussed. Workshop participants assessed conflicting views of the sources of global disorder and examined areas of global governance such as international trade, development, the environment, and the future of various multilateral institutions. They also discussed the most pressing security challenges in East and Southwest Asia. Participants highlighted the need for a greater understanding between the United States and China on the evolving international order. No major transnational problems will be solved without some cooperation between the two powers. It is therefore imperative that the two countries avoid a further deterioration of the relationship and instead identify areas of potential cooperation.
  • Topic: International Cooperation, International Trade and Finance, Tariffs, Social Order
  • Political Geography: United States, China, Asia, North America
  • Author: Council on Foreign Relations
  • Publication Date: 05-2018
  • Content Type: Working Paper
  • Institution: Council on Foreign Relations
  • Abstract: Although the Barack Obama administration rhetorically made Southeast Asia a centerpiece of its “rebalance to Asia” strategy, the administration still largely focused on the Middle East and Europe, and Southeast Asia remained a low U.S. policy priority. The Obama administration did try to boost U.S. economic ties with Southeast Asia in 2016 by forging the Trans-Pacific Partnership (TPP), but that trade deal was broadly unpopular in the United States. The following year, the Donald J. Trump administration ended U.S. participation in the TPP, and it also suggested launching punitive economic measures against Southeast Asian states currently running trade surpluses with the United States. Many Southeast Asian leaders now worry that Washington has no clear security or economic strategy for the region, other than applying pressure on Beijing to respect freedom of navigation in the South China Sea. In this perceived void of U.S. leadership and strategy, workshop participants assessed how Southeast Asia might change as China becomes an increasingly dominant regional security and economic actor. They also discussed the future of U.S. strategic and economic relationships with important partners in the region, including Indonesia, the Philippines, Singapore, Thailand, and Vietnam. Participants further considered how China might use its growing leverage in Southeast Asia, and whether Beijing’s tactics could backfire. Finally, several workshop participants posited that the United States, China, and Southeast Asian states could cooperate on at least some nontraditional security issues, such as combating piracy and terrorism.
  • Topic: Diplomacy, International Cooperation, International Trade and Finance, Economic Cooperation
  • Political Geography: United States, China, Asia, Southeast Asia
  • Author: Aaron Connely
  • Publication Date: 08-2017
  • Content Type: Special Report
  • Institution: Council on Foreign Relations
  • Abstract: In April 2016, the Lowy Institute and the Council on Foreign Relations' International Institutions and Global Governance program held a workshop on Southeast Asian perspectives on U.S.–China competition, which informed this publication. That workshop was made possible in part by the generous support of the Robina Foundation. This report is a collaboration between the Lowy Institute and the Council on Foreign Relations. The views expressed in this report are entirely the authors' own and not those of the Lowy Institute, the Council on Foreign Relations, or the Robina Foundation.
  • Topic: Governance, Global Political Economy
  • Political Geography: China, America
  • Author: William Norris
  • Publication Date: 06-2017
  • Content Type: Special Report
  • Institution: Council on Foreign Relations
  • Abstract: The Chinese government has embarked on an effort to reorient its economy from an investment- and export-driven model toward one predicated on a larger role for consumption and market forces. At the same time, China is also experiencing a new normal of much slower economic growth. The economic downturn and concomitant structural shift in China’s economy has already begun affecting its foreign policy. Security, not economics, is becoming one of President Xi Jinping’s—and China’s—top strategic priorities.
  • Topic: Global Political Economy
  • Political Geography: China
  • Author: Council on Foreign Relations
  • Publication Date: 10-2017
  • Content Type: Working Paper
  • Institution: Council on Foreign Relations
  • Abstract: Chinese firms, both private and state-owned, have in recent years invested billions of dollars in the U.S. technology industry, raising concerns that a powerful rival has gained or could soon gain access to sensitive and, in some cases, critical technologies that underpin American military superiority and economic might. At the workshop entitled “Chinese Investment in Critical U.S. Technology: Risks to U.S. Security Interests,” held in San Francisco, on July 18, 2017, CFR convened nearly thirty current and former government officials, academics, bankers, investors, and corporate executives to explore whether the large and growing early-stage Chinese investment in critical U.S. technology poses a threat to U.S. national security, and, if so, to outline policies that mitigate the risks of unbridled Chinese investment and to bolster U.S. competitiveness.
  • Topic: Security, Science and Technology, Foreign Direct Investment, Cybersecurity
  • Political Geography: United States, China, Asia, North America
  • Author: Heung-kyu Kim
  • Publication Date: 11-2017
  • Content Type: Working Paper
  • Institution: Council on Foreign Relations
  • Abstract: As the Republic of Korea faces an increasing threat from North Korea, evolving U.S.-China relations are becoming important to Seoul’s strategy for dealing with Pyongyang. The United States and China are competitors, but they also seek cooperation on a range of global issues. And although South Korea seeks to have good relations with both great powers, it is increasingly being pushed to take sides in the ongoing U.S.-China competition. As the U.S.-China relationship becomes more complex, South Korea needs to carefully evaluate its policy toward China in order to find the best ways to ensure Chinese cooperation on the North Korean issue, particularly taking into account China’s evolving view of North Korea. Under the leadership of Xi Jinping, China is profoundly changing its foreign policy, including its relations with the United States and the two Koreas. With more confidence in its own diplomatic, military, and economic capacity to protect its national interests, China under Xi’s leadership has begun to regard the entire Korean Peninsula as part of its sphere of influence.
  • Topic: Diplomacy, International Cooperation, Military Strategy, Denuclearization
  • Political Geography: United States, China, Asia, South Korea, North Korea
  • Author: Riccardo Alcaro, Ettore Greco
  • Publication Date: 11-2017
  • Content Type: Working Paper
  • Institution: Council on Foreign Relations
  • Abstract: A nuclear-armed North Korea is a threat to the fragile strategic equilibrium on the Korean Peninsula and to international security at large. Emboldened by a nuclear arsenal, the highly militarized regime of President Kim Jong-un could be tempted to embark on aggressive acts. Meanwhile, the United States could opt for preventive military action. Even if neither party seeks a military confrontation, conflict could ensue due to miscalculation or simple misreading of each other’s intentions. Limited military exchanges could spiral out of control, eventually involving not only North Korea, the United States, and its allies in the region—Japan and South Korea—but also China. The repercussions of North Korea’s nuclear challenge may not be limited to Northeast Asia, not least because the nonproliferation regime, a pillar of international security, would be dealt a serious, if not fatal, blow if regional adversaries sought to meet it by acquiring their own nuclear arsenals. The destabilizing effects of North Korea’s nuclear and ballistic programs on regional and international security cannot be overestimated. In devising a response to the North Korean challenge, regional actors should remain committed to the denuclearization of the Korean Peninsula, but they should also implement security measures with observable results short of full denuclearization. Specifically, the United States and its allies should concentrate on sanctioning North Korea and on diplomatic action, actively seeking the involvement of China and Russia, while employing a strategy of deterrence and containment.
  • Topic: Diplomacy, Regional Cooperation, Military Strategy, Nonproliferation, Denuclearization
  • Political Geography: Japan, China, Asia, South Korea, North Korea
  • Author: Jennifer M. Harris
  • Publication Date: 12-2017
  • Content Type: Working Paper
  • Institution: Council on Foreign Relations
  • Abstract: Chinese outbound investment is on the rise, and much of it is finding its way into the United States. Be- tween 2010 and 2015, China’s foreign direct investment (FDI) inflows to the United States grew by an average of 32 percent annually.1 Within the past two years alone, Chinese foreign investment inflows to the United States increased four-fold, and available data suggests 2017 will see the second highest annual investment on record, after 2016.2 This is not a two-way street: the United States and other foreign investors do not enjoy similar open market access in China. China maintains a dizzying assortment of formal and informal barriers to for- eign investment—from outright restrictions and quotas to mandatory joint ventures, forced localization measures, and domestic licensing regimes. Despite years of negotiations, these barriers are, if anything, growing more cumbersome in many sectors. U.S. firms paint a darkening picture of the business climate they face in China. U.S. FDI in China has slowed considerably in recent years: after growing roughly 180 percent from 2002 to 2007 (albeit from a low baseline), U.S. FDI flows into China have declined since 2012.3 The one-way surge of Chinese investment into the United States comes against a backdrop of strategic mistrust between Washington and Beijing. Ongoing accusations of state-sponsored cyber predation of U.S. firms, Beijing’s increasing aggressiveness over territorial disputes, its systematic efforts to under- mine the U.S. alliance system in Asia, and mounting tensions over North Korea all contribute to a dark- ening mood in the U.S.-China relationship. And, like so much involving China, this investment is simply different. Rarely, if ever, has the United States seen an increase in investment of this magnitude—espe- cially from a non-ally and especially from one where the lines between state ownership and private own- ership are so inherently blurred. For all the concern surrounding Japanese investment in the United States in the 1980s—coming as it did amid fierce economic competition—those debates ultimately re- mained under the umbrella of the U.S.-Japan military alliance. All of this raises questions about whether the United States needs to tighten its stance on Chinese in- bound investment; proposals to that effect have bipartisan support in the Congress. The Donald J. Trump administration has signaled its desire for a tougher approach in its economic dealings with China, which U.S. businesses seem to welcome. One foundation for such an approach is the principle of reciprocity. Roughly two dozen sectors in China—construction, mining, banking, insurance, and so on—remain effectively off-limits to American investment, because the Chinese government protects its domestic companies through regulations and financial subsidies. Even in sectors that technically allow foreign investment, discriminatory industrial policies tilt the playing field in favor of Chinese firms. Until this changes, Washington would be justi- fied—even obligated—to limit Chinese investment in the U.S. market. However, U.S. policymakers do not have a consensus on what a policy of reciprocity would entail, and different policy interpretations could spell quite different economic and foreign policy consequences for the United States. The United States should aim for a version of reciprocity that allows it the flexibility to maximize pressure on the broad range of Chinese industrial policy concerns while leaving a clear route to negotiations. The United States should also encourage European and other Western countries, many of which are seeing similar increases in Chinese investment, to adopt this new approach.
  • Topic: Diplomacy, International Cooperation, International Trade and Finance, Foreign Direct Investment
  • Political Geography: United States, China, Asia, North America
  • 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