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2101. The North Korean Factor in the Sino-Russian Alliance

Author:
Stephen Blank
Publication Date:
07-2019
Content Type:
Journal Article
Journal:
Joint U.S.-Korea Academic Studies
Institution:
Korea Economic Institute of America (KEI)
Abstract:
The Kim-Putin summit in April 2019 and the abortive Trump-Kim summit in February 2019 compel us to review Korean issues from the regional security standpoint, rather than primarily as a proliferation question. Despite apparent failure of the Trump-Kim summit, the search for denuclearization and peace in Korea will continue. North Korea is obviously resuming discussions with Russia and China to decide their future course of action, inasmuch as Kim went to Vladivostok. The summit with Putin in April only reinforced those considerations, as it is clear from the subsequent press conference that Kim asked Putin to transmit his views to Washington and that Putin agreed to do so. Likewise, Washington must rethink its approach. Instead of emphasizing denuclearization, Washington would likely benefit from viewing Korean issues primarily as regional security questions. Certainly, Russia and China do so. Therefore, rethinking Russo-Chinese ties to North Korea offers valuable insights in the quest for a lasting Korean peace, especially as Russia and China have become allies.5 The argument of a Sino-Russian alliance is admittedly a minority view among scholars, but the mounting evidence of their alliance is apparent not only in regard to Korea—as the other chapters in this collection show—but in larger military-political affairs as well.
Topic:
Security, Foreign Policy, Bilateral Relations, and Alliance
Political Geography:
Russia, China, Asia, and North Korea

2102. Sino-Russian Relations, South Korea, and North Korea

Author:
Robert Sutter
Publication Date:
07-2019
Content Type:
Journal Article
Journal:
Joint U.S.-Korea Academic Studies
Institution:
Korea Economic Institute of America (KEI)
Abstract:
This examination of the relations among these four governments assesses the ever-closer China-Russia relationship featuring stronger strategic alignment against the United States and its interests in many parts of the world, including the Korean Peninsula. It also considers how the Sino-Russian relationship reacted to the major changes in the Korean Peninsula brought on by the string of remarkable developments on the peninsula since 2017. Those developments include: the Donald Trump administration’s heavy pressure against North Korean nuclear weapons development in 2017; North Korea’s abrupt shift away from confrontation and toward negotiations with the U.S. and South Korea in early 2018; the subsequent dramatic shift toward top-level U.S.-North Korea negotiations to ease tensions and improve relations seen in Trump’s meetings with North Korean leader Kim Jong-un in June 2018 and February 2019; and active, related North Korean summitry with South Korea and China. In this period, China and Russia in relations with South Korea and North Korea repeatedly worked together to offset U.S. pressures and undermine U.S. influence. Developments over the past two years have seen China emerge as a critically important player with a major role in all aspects of negotiations involving the crisis caused by North Korea’s rapid development and repeated testing of nuclear weapons and related development and testing of ballistic missiles capable of carrying a nuclear warhead as far as the continental U.S. By contrast, Russia’s role and influence have declined in importance. The failed revival of the Six-Party Talks, in which Russia and Japan played a direct role along with North and South Korea, China, and the U.S. in dealing with the North Korean nuclear weapons crisis, and the current regional dynamic focused on only the four latter powers means that Moscow and Tokyo have been marginalized by recent developments. Such an outcome challenges the Russian government of President Vladimir Putin and its drive to play a prominent role as a leading world power on issues important to Russian interests. Demonstrating new prominence, Putin hosted visiting Kim during a brief summit long sought by Russia in Vladivostok on April 25. The Russian leader said North Korea’s security concerns would be better met with international guarantees involving Russia and China rather than bilateral North Korean agreements with the U.S. Up until this point, Russia had been playing second fiddle to Beijing, repeatedly siding with China in matters regarding the Korean Peninsula. China, for its part, seemed comfortable with close cooperative relations with Russia as it deals with Korean matters. Whatever differences the two may have over Korean issues have been difficult to discern amid their collaboration and cooperation, which focus on weakening the American position in Korea and Northeast Asia.
Topic:
International Relations, Security, Foreign Policy, Diplomacy, and Bilateral Relations
Political Geography:
Russia, China, Asia, South Korea, and North Korea

2103. The China-Russia-North Korea Triangle After Kim Jong-un's Turn to Diplomacy

Author:
Gilbert Rozman
Publication Date:
07-2019
Content Type:
Journal Article
Journal:
Joint U.S.-Korea Academic Studies
Institution:
Korea Economic Institute of America (KEI)
Abstract:
The triangle of Beijing-Moscow-Pyongyang has great significance for the geopolitics of not only Northeast Asia, but the globe. It played a critical role in the 1950 launching of the Korean War, when the Cold War took shape. It became the subject of much speculation in the 2000s, when the Six-Party Talks offered hope that the post-Cold War framework could become one of trust based on shared interests in peace and stability and joint prosperity focused on Northeast Asia. Today, it is again worthy of close attention, as diplomacy has intensified in an atmosphere of increasing polarization. Various alternatives for the future of this triangle have recently been suggested. The options offered for the emerging China-Russia-North Korea triangle include the following. One, a North Korean defection centered on a deal with the United States and an understanding with South Korea allowing for gradual inter-Korean integration with economics in the forefront. Two, a Chinese sphere of influence, which Russia is too weak to resist and North Korea prefers to the danger of regime change through Korean integration and U.S. demands for openness and human rights. Three, a balanced triangular alliance, where North Korea resumes playing off its allies in Beijing and Moscow without having to take the side of either, but this time without a serious split between the two great powers. Four, maximum autonomy of Pyongyang carving space among the five states most concerned with its destiny, leaving this triangle with no more significance than the triangle with the U.S. and South Korea. Fast-moving, diplomatic developments in 2018-2019 provide some evidence for assessing these alternative outcomes.
Topic:
Security, Foreign Policy, Diplomacy, and Economy
Political Geography:
Russia, China, Asia, and North Korea

2104. Iran Looking East: An Alternative to the EU?

Author:
Annalisa Perteghella
Publication Date:
11-2019
Content Type:
Special Report
Institution:
Italian Institute for International Political Studies (ISPI)
Abstract:
In February 2018, anticipating the US withdrawal from the JCPOA, Iran’s Supreme Leader Ayatollah Ali Khamenei declared a policy of “preferring East over West”, thus paving the way for deeper cooperation with Asian powers such as China, Russia, and India. Differently from the “Look East” policy promoted during the presidency of Ahmadinejad (2005-2013), the current Iranian strategy is not only functional to escape the US-led isolation, but it rather seems devoted to the consolidation of a block of power which can commit to security and economic schemes in alternative to the Western-dominated ones. This ISPI report aims to answer few crucial questions: Which are the major initiatives promoted within the Iran’s “Look East 2.0” strategy? To what extent will Tehran succeed in creating a solid Eastern block? What will be the influence of the wider geopolitical context? And finally, what role is left for the EU?
Topic:
Security, Nuclear Weapons, Treaties and Agreements, European Union, Economy, and JCPOA
Political Geography:
Russia, China, Europe, Iran, Middle East, and India

2105. Russia and China: Anatomy of a Partnership

Author:
Aldo Ferrari and Eleonora Tafuro Ambrosetti
Publication Date:
05-2019
Content Type:
Special Report
Institution:
Italian Institute for International Political Studies (ISPI)
Abstract:
While the “decline of the West” is now almost taken for granted, China’s impressive economic performance and the political influence of an assertive Russia in the international arena are combining to make Eurasia a key hub of political and economic power. That, certainly, is the story which Beijing and Moscow have been telling for years. Are the times ripe for a “Eurasian world order”? What exactly does the supposed Sino-Russian challenge to the liberal world entail? Are the two countries’ worsening clashes with the West drawing them closer together? This ISPI Report tackles every aspect of the apparently solidifying alliance between Moscow and Beijing, but also points out its growing asymmetries. It also recommends some policies that could help the EU to deal with this “Eurasian shift”, a long-term and multi-faceted power readjustment that may lead to the end of the world as we have known it.
Topic:
Partnerships, Economy, and Alliance
Political Geography:
Russia, China, and Eurasia

2106. China’s Race to Global Technology Leadership

Author:
Alessia Amighini
Publication Date:
05-2019
Content Type:
Special Report
Institution:
Italian Institute for International Political Studies (ISPI)
Abstract:
The current trade war between the US and China looks like a small piece in a much larger puzzle over world leadership in which China plays the part of the ascending challenger seeking to upset the existing balance of power. Technology and innovation seem to be Beijing’s weapons of choice in its frontal assault on Washington in sectors traditionally led by the US. China is not only acquiring technology. Its ambitions include the regulation of international trade and global governance. Just what a China-led global order would look like is still unclear, but the inherent dangers of technology need to be meticulously assessed, as they have the potential to alter the core values of modern societies. To what extent will technology facilitate China’s rise?
Topic:
International Trade and Finance, Science and Technology, Governance, Leadership, and Trade Wars
Political Geography:
China and Asia

2107. The Role of Cities in the Energy Transition

Author:
Jorge Camargo, Clarissa Lins, Bruna Mascotte, Hans van Ammers, Luis Antonio Lindau, Marcelo Porto, and Paul Antoine Matthieu
Publication Date:
04-2019
Content Type:
Special Report
Institution:
Brazilian Center for International Relations (CEBRI)
Abstract:
The first event organized by the CEBRI Infrastructure and Energy Program in 2019 counted with the support of the Dutch Consulate in Rio de Janeiro, and discussed the global trends that are reshaping cities and how these interconnect with the energy transition. Starting with opening remarks by Jorge Camargo, CEBRI Trustee, the event was moderated by Clarissa Lins, Catavento Consultoria’s Founding Partner and CEBRI Senior Fellow. The panel benefitted from insights presented by Marcelo Porto, Vice-President at IBM Cloud Latin America; Luis Antonio Lindau, Director at WRI Cities Brazil; Paul Antoine Matthieu, Project Director for the Energy Transition in Nijmegen, Netherlands; and Hans van Ammers, Senior Advisor on Climate Mitigation and Adaptation in Arnhem, Netherlands. This paper consolidates the content presented by each participant, as well as the debate that followed, respecting the Chatham House rules applied to the events hosted by CEBRI’s Infrastructure and Energy Program. It also includes additional insights provided by Catavento Consultoria.
Topic:
Energy Policy, Infrastructure, and Cities
Political Geography:
China and Brazil

2108. Whither US-China Trade War? Impacts on global trade, technology and finance, and strategies to mitigate risks

Author:
Lia Valls Pereira, Tatiana Rosito, and Gabriel de Barros Torres
Publication Date:
06-2019
Content Type:
Special Report
Institution:
Brazilian Center for International Relations (CEBRI)
Abstract:
For its twelthth meeting, CEBRI's China Analysis Group organized discussions on the economic and geopolitical causes and consequences of trade frictions between China and the United States, considering its impact on different actors and on the multilateral trading system at large. Despite the original focus on trade imbalances, participants noted that the bilateral rivalry’s underlying drivers relate to competition for leadership in high-tech sectors and, fundamentally, to the conciliation of practices associated with different development models. Notwithstanding the uncertainty surrounding the next steps in the dispute, there was a consensus among participants that a complete decoupling between both economies is virtually unfeasible in the short-term and not likely in the long-term. The speakers at the event were Marcos Troyjo, Jin Canrong, Kellie Meiman and Niu Haibin and comments were made by Lia Valls and Tatiana Prazeres. The event was coordinated by CEBRI Senior Fellow Tatiana Rosito.
Topic:
Science and Technology, Bilateral Relations, Finance, Trade Wars, Risk, and Trade
Political Geography:
China, Asia, North America, and United States of America

2109. Chinese-Brazilian partnerships in digital economy and innovation

Author:
Anna Jaguaribe, Tatiana Rosito, Adalberto Maluf, Li Yan, and Pan Wei
Publication Date:
08-2019
Content Type:
Special Report
Institution:
Brazilian Center for International Relations (CEBRI)
Abstract:
At its 13th meeting, CEBRI’s China Analysis Group promoted in-depth discussions on the main features of the Chinese national innovation system, addressing the underpinnings of the digital economy in China and current challenges in the process of transitioning from technological catching-up to an innovation-driven economy. First of all, as an illustration of the overall prosperity of the Chinese digital economy, participants highlighted the fast transformation of Shenzhen into a global hub for entrepreneurship and innovation, becoming a reference for business models in Silicon Valley itself. Notably, the recent establishment of a pilot demonstration zone for socialism with Chinese characteristics in Shenzhen illustrates the city’s key role in Chinese innovation and industrial development policy. The speakers at the event were the Director of Marketing, Sustainability and New Business at BYD Brasil Adalberto Maluf; the Director of the International Cooperation Department of the Tus-Clean Energy Group Jiao Jiwen; and Researcher at the Chinese Academy of Science and Technology for Development (CASTED) Li Yan. Comments were made by CEBRI Trustee, Anna Jaguaribe; the Vice-President of the Private Sector of the Development Bank of Latin America (CAF) Jorge Arbache; and Professor at Peking University Pan Wei. The event was coordinated by the Senior Fellow of CEBRI Tatiana Rosito.
Topic:
Partnerships, Digital Economy, and Innovation
Political Geography:
China, Asia, Brazil, and South America

2110. China as a Military Power: Strategic Vision and Global Action

Author:
Marcos Azambuja, Monica Herz, Tatiana Rosito, Andy Mok, Durval Durães Neto, and Rafael Almeida
Publication Date:
09-2019
Content Type:
Special Report
Institution:
Brazilian Center for International Relations (CEBRI)
Abstract:
At its 14th meeting, the China Analysis Group promoted insightful discussions on the goals and priorities of Chinese security and defense strategy, considering its regional and global implications – as well as opportunities for cooperation with Latin America and Brazil. Against the backdrop of China-US geopolitical rivalry, China’s more assertive foreign policy under Xi Jinping has often been perceived as a threat by other nations. However, one of the key messages conveyed by Chinese official documents and narrative is the peaceful nature of China’s military ascent, based on a defensive modernization of its armed forces – even though a less conciliatory tone is adopted in regard to Chinese core interests, especially concerning territorial integrity. The speakers at the meeting were Senior Research Fellow at the Center for China and Globalization (CCG) Andy Mok; the Brazilian Army Attaché to People’s Republic of China for bilateral exchange Col. Durval Durães Neto; and CEBRI's Trustee Emeritus Marcos Azambuja. The event had as commentators Professor at the Institute of International Relations of the Pontifical Catholic University of Rio de Janeiro (IRI/PUC-Rio) Monica Herz and Chief of Staff of the Sixth Army Division, Col. Rafael Almeida. CEBRI's Senior Fellow, Tatiana Rosito, coordinated the meeting.
Topic:
Security, Foreign Policy, Defense Policy, Armed Forces, Military Affairs, and Geopolitics
Political Geography:
China, Asia, Brazil, South America, and United States of America

2111. Brazil and China facing global environmental challenges

Author:
Izabella Teixeira, Ana Toni, Tatiana Rosito, Akio Takahara, Gabriel de Barros Torres, Marco Túlio Scarpelli Cabral, Wi Wang, and Wenhong Xie
Publication Date:
11-2019
Content Type:
Special Report
Institution:
Brazilian Center for International Relations (CEBRI)
Abstract:
At its 15th meeting, the China Analysis Group promoted insightful discussions on global environmental challenges shared by Brazil and China, highlighting priority topics for bilateral cooperation in the short-, medium- and long-term, within and beyond the 2030 Agenda for Sustainable Development. Despite the huge potential for bilateral cooperation in areas ranging from the bio-economy to climate-resilient cities, participants consensually noted a lack of bilateral frameworks dedicated to sustainable development between China and Brazil – for instance, the absence of a sub-committee aimed at environmental cooperation within the Sino-Brazilian High-Level Coordination and Cooperation Committee (COSBAN). Ultimately, better exploring the co-benefits associated to bilateral cooperation on shared environmental challenges – including but not restricted to climate change – could contribute to strengthening multilateral frameworks and global environmental cooperation. The speakers at the 15th meeting were CEBRI Trustee Izabella Teixeira; Vice-President of the Institute of Science and Development (ISD) of the Chinese Academy of Sciences (CAS) Wang Yi; Professor of Contemporary Chinese Politics at the University of Tokyo Akio Takahara; Head of the Environment Division II at the Ministry of Foreign Affairs Marco Túlio Scarpelli Cabral; and China Programme Manager at Climate Bonds Initiative Wenhong Xie. The event's commentator was CEBRI Senior Fellow Ana Toni, and the coordinator was Senior Fellow Tatiana Rosito.
Topic:
Development, Environment, Bilateral Relations, and Sustainable Development Goals
Political Geography:
China, South Asia, Asia, and Brazil

2112. Chinese Leadership and the Future of BRI: What Key Decisions Lie Ahead?

Author:
Brad Parks
Publication Date:
07-2019
Content Type:
Policy Brief
Institution:
Center for Global Development
Abstract:
It’s 2028. The Belt and Road Initiative (BRI) has been underway for 15 years, but the initial enthusiasm and momentum behind BRI has vanished. Many of the governments that initially joined the initiative have publicly withdrawn or quietly wound down their participation. China’s staunchest allies remain engaged but even they have reservations about the wisdom of the initiative. They are saddled with unproductive public investment projects and struggling to service their debts. Domestic public sentiment towards China has soured, and they have come to view their participation in BRI as more of a political liability than an asset. But they worry about the consequences of alienating their most important patron and creditor. China has also assumed a defensive posture. Lacking the goodwill that it possessed at the beginning of BRI, it is now using inducements and threats to prevent its remaining clients from abandoning the initiative. Western donors and lenders watch from the sidelines with a sense of bemusement. They encouraged China to “multilateralize” BRI by establishing a common set of project appraisal standards, procurement guidelines, fiduciary controls, and social and environmental safeguards that other aid agencies and development banks could support. But Beijing chose to go it alone. It opted not to embrace the use of economic rate-of-return analysis to vet project proposals; resisted efforts to harmonize its environmental, social, and fiduciary safeguards with those used by aid agencies and development banks outside of China; and pushed back on the “Western” suggestion that it modernize its monitoring and evaluation practices. China bet that its fast and flexible approach to infrastructure finance would prove to be so compelling that traditional donors and lenders would eventually jump on the bandwagon and co-finance BRI projects. But it miscalculated. Its model was insufficiently attractive on its merits to enlist the participation and support of the other major players in the bilateral and multilateral development finance market. Nor was it sufficiently appealing to sustain elite and public support in partner countries.
Topic:
Development, International Trade and Finance, Infrastructure, Leadership, and Belt and Road Initiative (BRI)
Political Geography:
China and Asia

2113. Hybrid Warfare and Deniability as Understood by the Military

Author:
Håkan Gunneriusson
Publication Date:
01-2019
Content Type:
Journal Article
Journal:
Polish Political Science Yearbook
Institution:
Polish Political Science Association (PPSA)
Abstract:
Russia and China are terraforming the maritime environment as part of their warfare. In both cases the actions are illegal and the performance is offensive to its actual nature. In the case of China, the practice is construction of artificial islands in the South Chinese Sea and in the case of Russia it is about the infamous bridge built over the Kerch strait, Ukraine. Neither Russia nor China expects an armed conflict with the West in the near future. That is a reasonable assumption, which is weaponized at the political-strategically level. The attack of this weaponized situation is that the trust in the West. Primarily the EU (European Union) and NATO (North Atlantic Treaty Organization), is eroded for every day which these countries challenges the international system which the western democracies say that they present and defend. China and Russia offer their authoritarian systems as a replacement and there are a lot of pseudo-democratic or even out-right authoritarian regimes on the sideline watching this challenge unfold. The article highlights the difference for the NATO-countries in logic of practice when it comes to the political social field on one hand and the military political field on the other hand. The article uses material from a previously unpublished survey made on NATO-officers then attending courses at NATO Defense College (NDC).
Topic:
Defense Policy, NATO, International Cooperation, War, Military Strategy, European Union, Conflict, Civil-Military Relations, and Hybrid Warfare
Political Geography:
Russia, China, Europe, Asia, North America, and United States of America

2114. Power Analysis and Geopolitical Codes of South China Sea States in the Context of Contemporary Geopolitics

Author:
Marek Musiol
Publication Date:
01-2019
Content Type:
Journal Article
Journal:
Polish Political Science Yearbook
Institution:
Polish Political Science Association (PPSA)
Abstract:
The analysis in this article provides an overview of the research on the current relations among countries of the South China Sea basin. For this purpose, I have decided to apply the geopolitical research workshop, focusing on its contemporary approach. On the one hand, this work uses the available indicators and index to gauge the level of development, economic and demographic potential, and military expenditure of these states. On the other hand, an effort was made to analyze and measure power, taking into account the changing geopolitical status of countries in this sub-region. Contemporary geopolitics in this context allows to verify the scale of the impact on permanent environmental and geographic factors (e.g. publicized investments carried out by the People’s Republic of China in Mischief Reef, Fiery Cross, Subi Reef and Woody Island) and the elaboration of proposals going beyond the classical, geopolitical framework (morphological, political and military factors). Therefore, this article also includes the use of geopolitical codes to assess the current strategies of these countries and to describe potential scenarios of actors’ behaviour in the sub-region.
Topic:
Power Politics, Territorial Disputes, Geopolitics, and Conflict
Political Geography:
China, Asia, and South China Sea

2115. The Role of the Arctic in Chinese Naval Strategy

Author:
Ryan D. Martinson
Publication Date:
12-2019
Content Type:
Journal Article
Journal:
China Brief
Institution:
The Jamestown Foundation
Abstract:
In her recent China Brief article, Dr. Anne-Marie Brady examined the prospect of China deploying military power to the Arctic (China Brief, December 10). Applying the methods she used in her pathbreaking 2017 book, Brady draws from authoritative Chinese sources to demonstrate the growing importance of the Arctic in China’s strategic calculus. [1] She also cites a host of other indications that Beijing intends to send naval forces—especially submarines—north through the Bering Strait. Her research provides important context for an oracular 2019 U.S. Department of Defense claim that China could be laying the foundation for naval operations in the Arctic (Department of Defense, May 2). Building on the excellent work done by Brady and others, this article argues that the available evidence allows for more categorical conclusions about China’s Arctic intentions. Specifically, the Chinese Navy has formally decided to incorporate Arctic ambitions into its naval strategy, and Chinese scientists and engineers are already conducting research to help it realize these ambitions.
Topic:
Security, Defense Policy, Military Strategy, and Territory
Political Geography:
China, Asia, and Arctic

2116. The “22 vs. 50” Diplomatic Split Between the West and China Over Xinjiang and Human Rights

Author:
Roie Yellinek and Elizabeth Chen
Publication Date:
12-2019
Content Type:
Journal Article
Journal:
China Brief
Institution:
The Jamestown Foundation
Abstract:
On July 8, 2019, a group of 22 states issued a joint letter to the 41st session of the United Nations Human Rights Council (UNHRC), which condemned China’s mass detention of Uyghurs and other minorities in the Xinjiang region of northwest China. [1] In the letter, the signatories expressed their countries’ concerns about “credible reports of arbitrary detention in large scale places of detention” in the region and “widespread surveillance and restrictions” targeting Uyghurs and other minorities. The letter (hereafter “First Letter”) called upon the People’s Republic of China (PRC) to uphold its national laws and international commitments, and to “refrain from the arbitrary detention and restrictions on freedom of movement of Uyghurs, and other Muslim and minority communities in Xinjiang” (UNHRC, July 8). Just four days later, on July 12, 2019, another group of 37 states issued a competing letter to the UNHRC that backed the PRC’s policies in the Xinjiang region (Xinhua, July 13). This letter (hereafter “Second Letter”) asserted that “the work of [UNHRC] should be conducted in an objective… non-confrontational and non-politicized matter,” and expressed “firm opposition to relevant countries’ practice of politicizing human rights issues, by naming and shaming, and publicly exerting pressures on other countries.” This Second Letter commended “China’s remarkable achievements” in “protecting and promoting human rights through development.” The letter further “call[ed] on relevant countries to refrain from employing unfounded charges against China,” and urged the UNHRC to approach the Xinjiang situation “in an objective and impartial manner… with true and genuinely credible information” (UNHRC, July 12). One signatory state, Qatar, subsequently withdrew its support. [2] However, by the time the Second Letter was re-issued later in July, representatives of thirteen additional states and the Palestinian Authority had added their support, bringing the total number of signatories to fifty. [3] This letter exchange between 22 critics and 50 supporters of the PRC’s policies in Xinjiang demonstrates how the Chinese Communist Party (CCP) has leveraged its economic and political influence over other voting members at the UNHCR to advocate for its own positions, and to weaken legal and procedural frameworks of the international human rights regime.
Topic:
Diplomacy, Human Rights, International Cooperation, and Humanitarian Crisis
Political Geography:
China, Asia, and Global Focus

2117. China’s 2020 Economic Agenda: Maintaining Stability Amid Flux

Author:
Yun Jiang and Adam Ni
Publication Date:
12-2019
Content Type:
Journal Article
Journal:
China Brief
Institution:
The Jamestown Foundation
Abstract:
China’s top annual economic policy gathering, the Central Economic Work Conference (中央经济工作会议, Zhongyang jingji gongzuo huiyi), or CEWC, was held between December 10 and 12 in Beijing. This year’s CEWC focused on the theme of “achieving developmental progress on the basis of first ensuring stability” (稳字当头, 稳中求进 / wen zi dangtou, wen zhong qiu jin) (Xinhua, December 12)—thereby continuing a theme stressed during the meeting of the National People’s Congress in March of this year (China Brief, March 22). Given increasing economic risks and political challenges, both domestic and international, the party-state’s focus on the supremacy of stability is unsurprising. Importantly, the CEWC reiterates that the goal of achieving a “moderately prosperous society” (小康社会, xiaokang shehui) by the end of 2020 is “a priority among priorities” (重中之重, zhong zhong zhi zhong). This article examines the key outcomes of the 2019 CEWC, which set the overall direction of China’s economic policy agenda for 2020. In doing so, we highlight a central underlying tension: on the one hand, the Chinese Communist Party (CCP) wants to keep a steady ship at a time of economic and strategic flux; on the other, maintaining strong economic growth requires ambitious developmental goals and economic reform imperatives, which have added pressure for bold policy actions. How well Chinese policymakers can navigate this tension in 2020 has important ramifications for both China’s national development and the CCP’s political legitimacy.
Topic:
Security, Development, Economics, Legitimacy, and Strategic Interests
Political Geography:
China and Asia

2118. Planting the Seed: Ethnic Policy in Xi Jinping’s New Era of Cultural Nationalism

Author:
James Leibold
Publication Date:
12-2019
Content Type:
Journal Article
Journal:
China Brief
Institution:
The Jamestown Foundation
Abstract:
The recent leak of secret Chinese Communist Party (CCP) documents in Xinjiang provides irrefutable evidence of the CCP’s radical plan to fundamentally remake Xinjiang society and transform the thoughts and behaviour of its Muslim minorities (ICIJ, 24 November). Less well known, however, is the role that Xi and his supporters have played in reorienting People’s Republic of China (PRC) policy away from a previous tolerance of ethnocultural heterogeneity, and towards a virulent form of cultural nationalism that pathologizes dissent and diversity as an existential threat to the Party and the nation. The self-described “New Era” (新时代, Xin Shidai) of Xi Jinping Thought marks a decisive departure from previous attempts to propitiate ethnic minorities through special preferences and a “loose reins” (羁縻, jimi) system of ethnic autonomy. This new orientation is most clearly articulated in a public speech Xi Jinping gave in September, suggesting a new level of confidence in the Party’s attempt to build a “spiritual homeland” (精神家园, jingshen jiayuan) for China’s fragile political unity in the face of deep internal resistance in the peripheries of Xinjiang, Tibet, and Hong Kong.
Topic:
Nationalism, Culture, Minorities, Ethnicity, and Discrimination
Political Geography:
China and Asia

2119. The CCP’s Renewed Focus on Ideological Conditioning, Part 2: The New Five-Year Plan for Training Party Cadres

Author:
John Dotson
Publication Date:
12-2019
Content Type:
Journal Article
Journal:
China Brief
Institution:
The Jamestown Foundation
Abstract:
The leadership of the Chinese Communist Party (CCP) has long pointed to the collapse of the Soviet Union as a cautionary example, and party organs have produced books and films that warn of the dire consequences that would follow from any steps to loosen the CCP’s grip on the economy, public discourse, or political power. These materials have been made the focus of mandatory study under CCP General Secretary Xi Jinping (SCMP, November 18, 2013). Alongside alleged villains such as the reformist Mikhail Gorbachev, ideological laxity among Soviet Communist Party members has been identified as a key factor in the downfall of the Soviet state. [1] To address this, the CCP leadership has undertaken concerted efforts throughout 2019 to bolster ideological indoctrination among its own membership. Party members have been made subject to mandatory use of the smartphone app Xuexi Qiangguo (学习强国), which was introduced in January of this year. [2] Users are required to meet quotas of “study points” for spending time on the app, reading and commenting on articles, and taking tests about party policies (SCMP, February 14, 2019). In addition to serving as a channel for ideological indoctrination, the app also serves as a surveillance tool: it both “collects and sends detailed app log reports on a daily basis, containing a wealth of user data and app activity,” and contains “code that amounts to a backdoor to rooted devices… granting complete administrator-level access to a user’s phone” (Open Technology Fund, September 12). The CCP’s current official ideology is “Xi Jinping Thought on Socialism with Chinese Characteristics in the New Era” (习近平新时代中国特色社会主义思想, Xi Jinping Xin Shidai Zhongguo Tese Shehui Zhuyi Sixiang). This ideological program is grounded in Xi’s ever-growing cult of personality, and relies heavily on the dogmatic repetition of slogans rather than clearly articulated ideas. In broad terms, it strikes three general themes: (1) achieving the “China Dream” (中国梦, Zhongguo Meng) of restored national greatness; (2) unyielding CCP control over politics and Chinese society; and (3) continuing reforms in party-state institutions and governance. The latter element is often expressed in terms of greater centralization of power at the top echelons of the CCP, and demands for stricter personal loyalty to Xi Jinping (China Brief, November 19). [3]
Topic:
Politics, Reform, Ideology, and State Building
Political Geography:
China and Asia

2120. Shifting Global Politics and the Middle East

Author:
Marc Lynch and Amaney Jamal
Publication Date:
03-2019
Content Type:
Research Paper
Institution:
Project on Middle East Political Science (POMEPS)
Abstract:
What is the current structure of international relations, and how does this shape the politics of the Middle East? For decades, the answer was clear: international structure was unipolar, and American predominance shaped the alliance choices of both its allies and its adversaries. In recent years, this clarity has been overtaken by confusion. American primacy has perhaps declined, or at least shifted in its application, but no rival power has yet risen to take its place. How has this perceived change in global structure affected regional politics in the Middle East? In October 2018, POMEPS, Princeton University’s Bobst Center, and the American University of Beirut brought together nearly two dozen scholars from the United States, Europe and the Middle East at AUB to discuss the impact of shifting global structure on regional dynamics. This collection features sixteen essays ranging across diverse perspectives on the evolving relationship between the global and the regional. Taken together, they offer a fascinating window into the relationship between the global and the regional, and the implications for contemporary regional politics.
Topic:
International Relations, Security, Diplomacy, Politics, Poverty, Power Politics, European Union, Partnerships, Inequality, Brexit, Arab Spring, Alliance, Conflict, Transatlantic Relations, Donald Trump, and Regional Power
Political Geography:
China, Europe, Middle East, Yemen, Saudi Arabia, Syria, North America, United States of America, and Gulf Nations

2121. Determinants of Developing Countries' Export Upgrading: The Role of China and Productive Investment

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

2122. U.S. Trade Policy in North America, China, and Beyond

Author:
Andy Green and Daniella Zessoules
Publication Date:
02-2019
Content Type:
Working Paper
Institution:
Center for American Progress - CAP
Abstract:
In recent decades, economic, political, and technological barriers to international trade and investment have collapsed around the world. This rapid globalization of commerce has lifted many out of poverty in developing countries, but due in part to a lack of meaningful labor and environmental standards and enforcement, it has also resulted in an outsourcing of production and jobs as well as downward pressure on workers’ real wages in developed countries such as the United States.1 The key trade agreements and international institutions put in place to manage globalization, such as the North American Free Trade Agreement (NAFTA) and China’s entry into the World Trade Organization (WTO), have failed to rebalance the rules to enable globalization to work on behalf of all workers—not just in the United States, but in Mexico, China, and more broadly. And in many cases, the trade rules have exacerbated economic pressures on many U.S. workers.2 For years, progressive voices in the United States have called for efforts to make globalization work better for working families, communities, and the environment.3 Now, the Trump administration has sought claim to the trade reform mantle. Those claims, however, should be met with skepticism. The 2017 congressional Republican tax law slashed taxes for corporations and the wealthy on the false promise of raising wages for workers.4 Corporate profits, share buybacks, and mergers and acquisitions have all boomed, but working-class wages have barely budged.5 The international provisions of the 2017 tax law further incentivize offshoring operations at the expense of domestic investments and sourcing.6 The Trump administration’s domestic economic agenda of financial deregulation, budget cuts, and attacks on workplace safety and labor rights protections will simply make matters worse for working families. The administration’s record on trade policy has been mixed and largely incoherent. The president railed against NAFTA and other trade agreements for harming workers and U.S. jobs yet renegotiated a new NAFTA deal that fails to make labor and environmental standards meaningfully enforceable.7 His administration has slapped tariffs on adversaries and allies alike with little strategy—often in the name of national security and without addressing the root causes of the problem. Threatening further tariffs, the administration now is engaged in negotiations with China over intellectual property theft, market access for foreign multinationals, and a state-led industrial strategy.8 The president announced a delay in the additional tariffs, suggesting a deal with China is coming together, but concerns have long existed that the administration may settle for high-profile spot sales of U.S. commodities while effectively letting structural impediments and China’s industrial policies continue.9 The cost of what may be President Donald Trump’s high-profile deal with China could be real concessions for the United States, including in the technology and national security space, without providing lasting, solidly enforceable benefits more broadly.10 As U.S. Trade Representative Robert Lighthizer makes his first appearance this week before the new U.S. House of Representatives, the Trump administration will finally have to answer for its approach. Here are several questions that Congress should ask in order to hold the administration accountable to the American people.
Topic:
Security, International Cooperation, International Trade and Finance, and Science and Technology
Political Geography:
China, Asia, North America, and United States of America

2123. The Birth Of The Modern Chinese Banking Industry: Ri Sheng Chang

Author:
Vivid Lam, Oenone Kubie, and Christopher McKenna
Publication Date:
11-2019
Content Type:
Case Study
Institution:
Oxford Centre for Global History
Abstract:
Pingyao (平遥) is a remote place for a tourist attraction. Located in the centre of Shanxi province, it is some 380 miles from Beijing and further from Shanghai or Hong Kong where the tourists tend to congregate. Yet, despite the isolation, come they do to Pingyao. The nearest airport to Pingyao is in Tiayuan, over one hundred kilometres away, so most visitors arrive by coach or by train; along the poorly paved streets and past the decaying houses until they arrive in the middle of the city. Here the tourists disembark from their coaches and their trains and find themselves transported to the days of the Qing dynasty emperors, surrounded by imperial architecture. The tourists wander slowly towards West Street. This is the home of the most popular attraction: the headquarters of Ri Sheng Chang (日昇), a late Qing company which revolutionised Chinese banking, now a museum and an increasingly busy tourist attraction. This is the story of how it came to be and how the little city in a small province in China rose to prominence, became the financial centre of the world’s largest economy, fell to obscurity and, now, rises again.
Topic:
Tourism, Capitalism, Currency, Industry, and Banking
Political Geography:
China and Asia

2124. Military Activities in the EEZ: A U.S.-China Dialogue on Security and International Law in the Maritime Commons

Author:
Peter A. Dutton
Publication Date:
12-2019
Content Type:
Special Report
Institution:
China Maritime Studies Institute, U.S. Naval War College
Abstract:
On the wall in the entranceway to the personal offices of the Commander, Pacific Fleet, there hangs prominently displayed a life-size portrait of Adm. Chester William Nimitz, the legendary architect of the American naval victory in the Pacific sixty-five years ago. The painting is specially lit, giving the admiral's thoughtful gaze a lifelike glow as if he were present, judging the decisions and actions of his successors in command as these officers find means to preserve regional peace and guard American interests. In the painting's background are the objects of naval war, standing as striking reminders of the heavy price in American blood and treasure paid for the nearly three generations since then during which the Pacific Ocean has been an American lake. It has been this freedom from serious threat that has provided room for American strategic and operational maneuver during the Korean conflict, the Vietnam War, and the Cold War, that has afforded an avenue for the movement of forces during conflicts in Iraq and Afghanistan, the capacity to deter conflict in East Asia, the access needed to assure the security of allies and partners, and the ability to provide support to populations devastated by disaster.
Topic:
International Relations, Security, International Law, Military Affairs, Maritime, and Dialogue
Political Geography:
China, Asia, North America, and United States of America

2125. China and its wests – evolution of security dynamics and its consequences for the defence industries of the involved actors

Author:
Paweł Markiewicz
Publication Date:
12-2019
Content Type:
Journal Article
Journal:
Security and Defence Quarterly
Institution:
War Studies University
Abstract:
OBJECTIVES: The research objective of the paper is to analyse the recent, ever more pronounced shifts and changes in security dynamics between China and its “Wests”. METHODS: The methods used in the study consist of in-depth going qualitative research and analysis of Western journals as well as an investigation and translation of primary Chinese sources. RESULTS: Each cooperation effort and security partnership between China and the analysed partners means that the defence capabilities of one player will affect those of the other. This is a matter of concern for those who are currently in a position that relies on the import of military and intelligence equipment from stronger actors, as such a relationship may provide easier access and leverage for giants such as China to influence their domestic foreign policy and security agendas. CONCLUSIONS: The results of the study shed light on the on-going relevance of the question: is it possible to find space in which actors can achieve their own security objectives that is beneficial for the development of their defence industries without challenging the foreign policies of one another? Can competition between China and the actors it interacts with be conducted primarily in the political and economic field, with security relations only focusing on peaceful imports and exports instead of an arms race? One may only speculate.
Topic:
Security, Foreign Policy, and Defense Industry
Political Geography:
China and Asia

2126. A World on the Move: Trends in Global Student Mobility

Author:
Rajika Bhandari and Institute of International Education
Publication Date:
03-2018
Content Type:
Special Report
Institution:
Institute of International Education (IIE)
Abstract:
A World on the Move highlights key developments currently influencing student mobility in higher education in the United States and globally. Drawing upon Open Doors, Project Atlas and other sources of global data, the analysis points to a continuing demand for an international higher education in many parts of the world. Against the backdrop of recent trends, this report provides insight into the context of international student mobility.
Topic:
Employment, Mobility, and Higher Education
Political Geography:
Africa, China, Europe, Middle East, Canada, Asia, Germany, Latin America, North Africa, Australia/Pacific, Caribbean, North America, and United States of America

2127. The Strategic Case for South Korea to Join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership

Author:
Kyle Ferrier
Publication Date:
04-2018
Content Type:
Journal Article
Journal:
International Journal of Korean Studies
Institution:
International Council on Korean Studies
Abstract:
South Korea is at a critical crossroads. The future of the liberal international order, a major source of strength for Seoul, is unclear. President Donald Trump has repudiated the longstanding American role of upholding the liberal order. While Beijing has been quick to capitalize on this policy shift, the norms China seeks to promote either fall short of or run counter to the advancement of an open and rules-based international system. Although South Korea may be caught between these two great powers, it is by no means powerless to influence how international economic norms are advanced. To best meet its economic and even strategic interests, the Moon administration should begin negotiations to have South Korea join the remaining countries in the Trans-Pacific Partnership, known as the CPTPP.
Topic:
International Relations, Belt and Road Initiative (BRI), Trans-Pacific Partnership, Free Trade, Regionalism, and Donald Trump
Political Geography:
China, Asia, South Korea, North America, and United States of America

2128. The Rise of China and the Rebound in Korea’s Manufacturing Employment

Author:
Kyong Hyun Koo and Unjung Whang
Publication Date:
12-2018
Content Type:
Working Paper
Institution:
Korea Institute for International Economic Policy (KIEP)
Abstract:
Over the last three decades, the world has experienced a substantial in-crease in Chinese import penetration due to the rapid improvement in Chi-na’s supply productivity, which is often called the “China shock” or “China syndrome.” The existing literature have shown that the increase in imports from China due to the China shock adversely affected the manufacturing employment of a number of advanced countries such as the U.S., Norway, Denmark, and Spain. Unlike those advanced countries, South Korea has shown a pronounced increase in exports to China as well as imports from China since the 1990s. Over the same time, furthermore, Korea’s manufactur-ing employment has shown a stagnated downward trend compared to other advanced economies and even rebounded since the mid-2000s. Given these motivations, this study investigates both import and export channels to ex-plore how the China trade shocks affected the exceptional trend in Korea’s manufacturing employment from 1993 through 2015. To capture the overall employment effects of the China shocks, specifically, we consider not only how a Korean manufacturing industry employment is affected by the change in its direct exposure to China trade shocks (direct effects), but also how other industries’ changes in exposure to China trade shocks affect the industry through domestic industrial linkages (indirect ef-fects), largely following the empirical approach employed by Acemoglu et al. (2016). Mainly using firm-level data for almost all Korean manufacturing firms with more than four employees and the 2SLS estimation method, we find that during the period 1993-2015 the increase in Chinese import expo-sure had statistically insignificant direct effects on Korea’s manufacturing em-ployment on average, while 1% point increase in Chinese export exposure directly caused 0.18% increase in employment across Korean manufacturing industries. For the indirect effects of China shocks, in contrast, 1% point in-crease in Chinese import exposures of downstream industries (intermediate goods buyers) led to 3.00% decrease in employment of upstream industries (intermediate goods sellers) on average, while 1% point increase in Chinese export exposures of downstream industries brought 1.70% increase in em-ployment of upstream industries on average. The relatively moderate direct effects compared to the indirect ones are partly explained by two factors: First, Korea has gone through a substantial change in the structure of its trade with China since 2000s, so that within-industry supply chains between China and Korea have become more intertwined for some industries. Second, the Korean industries whose main downstream industries were substantially exposed to the Chinese imports (exports) tended to have a relatively low di-rect Chinese import (export) exposure during the period 1993-2015. Based on the 2SLS estimates above, the increased Chinese import expo-sure turns out to have decreased Korea manufacturing employment by 1,210,000 during the period 1993-2015, mainly through the indirect channel. In contrast, the increased Chinese export exposure appears to have increased Korea manufacturing employment by 1,090,000 during the same period, through the direct channel (210,000) and indirect channel (880,000). In the case of Korea’s manufacturing industry, therefore, most of the job reduction attributable to the China shocks has been also offset by job creation caused by the China shocks. Such a considerable increase in manufacturing jobs due to the rise of China, which has not been reported yet in other advanced economies, appear to have played an important role in generating the re-bounding trend in Korea’s manufacturing employment.
Topic:
Globalization, Labor Issues, Economic Policy, and Trade Shocks
Political Geography:
China, Asia, and South Korea

2129. A Quantitative Trade Model with Unemployment

Author:
Kyu Yub Lee
Publication Date:
10-2018
Content Type:
Working Paper
Institution:
Korea Institute for International Economic Policy (KIEP)
Abstract:
Over the last decade, quantifying the welfare effects from tariff changes has become one of the main challenges among international trade economists. There are a number of quantitative trade models with micro-foundations which emphasize demand-side (Anderson and Van Wincoop 2003), supply-side (Eaton and Kortum 2002), Bertrand competition (Bernard et al. 2003), extensive and intensive margin (Chaney 2008), etc, and conclude that trade liberalization with tariff reductions leads an economy to reach a higher level of welfare compared to pre-liberalization (Costinot and Rodriguez-Clare 2014). While elegant, these models inducing gravity equations share the common assumption, a perfect labor market. Quantitative trade models with full-employment developed so far have not taken account of labor market frictions when evaluating the welfare effects from tariff changes. This paper aims to fill the gap in the trade literature by explicitly considering labor market frictions. I employ search-and-matching to a multi-country and multi-sector Ricardian model with input-output linkages, trade in intermediate goods, and sectoral heterogeneity, in order to quantify the welfare effects from tariff changes. The paper shows that labor market frictions can be a source of comparative advantage in the sense that better labor market conditions contribute to lower cost in production. Labor market frictions play a critical role in determining the probability of exporting goods to trading partners, and interact with bilateral trade share, price, expenditures, etc. Unemployment and changes in unemployment rates due to tariff reductions contribute welfare changes across countries, implying that welfare effects based on quantitative trade models with full-employment are likely to be biased. I confirm the biased welfare effects by revisiting Caliendo and Parro (2015), who conduct an analysis of the welfare effects from the NAFTA from 1993 to 2005. I show that the welfare gap between theirs and mine has a positive correlation with changes in observed unemployment rates across countries. With the constructed model, I further conduct counterfactual exercises by asking what would happen if China’s tariffs remain unchanged from 2006 to 2015. It turns out that there are mild welfare effects to trading partners in the world trading system.
Topic:
Tariffs, Economic Policy, Trade, Unemployment, and Welfare
Political Geography:
China and Asia

2130. The Role of U.N. Peacekeeping in China’s Expanding Strategic Interests

Author:
Marc Lanteigne
Publication Date:
09-2018
Content Type:
Special Report
Institution:
United States Institute of Peace
Abstract:
Despite its growing status as a major economic and military power, China continues to be a strong supporter of UN peacekeeping operations. China is not only the second-largest financial contributor to UN peacekeeping (after the United States), it has roughly 2,500 personnel deployed in ongoing missions, including in active combat zones in Mali and South Sudan—far more than any other permanent member of the UN Security Council. This Special Report examines what China hopes to gain from its participation in UN peacekeeping, as well as the challenges it will face as its troops find themselves in more dangerous “peace enforcement” situations.
Topic:
Foreign Policy, United Nations, Peacekeeping, and Peace
Political Geography:
China, Asia, Mali, and South Sudan

2131. China’s Evolving Role as a U.N. Peacekeeper in Mali

Author:
Jean-Pierre Cabestan
Publication Date:
09-2018
Content Type:
Special Report
Institution:
United States Institute of Peace
Abstract:
Chinese troops have been stationed in Mali for the last half-decade as part of the UN-mandated stabilization force. Deployed after rebel groups overran large portions northeastern Mali in 2013, it was just the second time Beijing had ever contributed combat troops to a UN peacekeeping mission. This Special Report examines how China is using its peacekeeping activities in Mali as an opportunity to train troops and test equipment in a hostile environment—and as a way of extending its diplomatic reach and soft power in Africa and beyond.
Topic:
Foreign Policy, Diplomacy, United Nations, Peacekeeping, Conflict, and Peace
Political Geography:
Africa, China, Asia, and Mali

2132. The Conflict Resource Economy and Pathways to Peace in Burma

Author:
Kevin M. Woods
Publication Date:
11-2018
Content Type:
Policy Brief
Institution:
United States Institute of Peace
Abstract:
Burma’s natural resource economy is inextricably tied to the ongoing armed conflict within the country. Questions of who has what ownership rights over what resources and how these resources can be more equitably shared with the wider population loom large. This report focuses on Burma’s resource-rich ethnic states and territories near the borders with China and Thailand and suggests that a more robust, accountable, and equitable system for managing the country’s resource wealth can help lay down the pathways to peace.
Topic:
Economics, Environment, Natural Resources, Conflict, and Peace
Political Geography:
China, Burma, Thailand, and Southeast Asia

2133. Securing China’s Belt and Road Initiative

Author:
Zi Yang
Publication Date:
11-2018
Content Type:
Special Report
Institution:
United States Institute of Peace
Abstract:
The November 23 attack on the Chinese consulate in Karachi, Pakistan, is the latest sign that anti-Chinese sentiment may be taking root in countries that have received massive inflows of investment from China’s Belt and Road Initiative. USIP’s new Special Report provides an overview of the different security arrangements China is using to protect its overseas investments and workers, and examines how the Belt and Road Initiative is spurring the rapid growth of China’s domestic private security industry.
Topic:
Security, Infrastructure, Belt and Road Initiative (BRI), and Peace
Political Geography:
Pakistan, China, South Asia, and Asia

2134. Trade Policy Options for ASEAN Countries and Their Regional Dialogue Partners: “Preference Ordering” Using CGE Analysis

Author:
Pradumna B. Rana, Xianbai Ji, Wai-Mun Chia, and Chang Tai Li
Publication Date:
03-2018
Content Type:
Working Paper
Institution:
Centre for Non-Traditional Security Studies, S. Rajaratnam School of International Studies
Abstract:
The withdrawal of the United States from the Trans-Pacific Partnership (TPP) and Trump’s “America First” agenda have ignited a second round of interest in mega-free trade agreements in the Asia Pacific region. Countries have been motivated to explore alternative trade policy options. Using national real gross domestic output gains estimated by the GTAP model to construct “preference ordering” for 10 Association of Southeast Asian Nations (ASEAN) members and their six regional dialogue partners, this paper comes up with several findings. First, when multilateral agreements are not possible, countries are better off with a narrower regional trading agreement than without one. Second, in the region, Regional Comprehensive Economic Partnership (RCEP) has higher beneficial impacts than the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). Third, for dual-track countries, that is countries that are negotiating both the CPTPP and the RCEP, implementing both agreements is better than each separately. Fourth, as expected, economic impacts of the CPPTP are lower than those of the original TPP12, but all CPPTP members will benefit although to different degrees. Fifth, economic impacts of open regionalism are higher than those of a closed and reciprocal one. Going forward, the paper argues that ASEAN countries and their regional dialogue partners need to adopt a “multi-track, multi- stage” approach to trade policy.
Topic:
Regional Cooperation, Trans-Pacific Partnership, Free Trade, and Economic Cooperation
Political Geography:
United States, China, Asia, and Asia-Pacific

2135. Indonesian Muslims in a Globalising World: Westernisation, Arabisation and Indigenising Responses

Author:
Martin van Bruinessen
Publication Date:
05-2018
Content Type:
Working Paper
Institution:
Centre for Non-Traditional Security Studies, S. Rajaratnam School of International Studies
Abstract:
In the two decades since the fall of the Suharto regime, one of the most conspicuous developments has been the rapidly increasing influence of religious interpretations and practices emanating from the Middle East and more specifically the Gulf states, leading observers to speak of the “Arabisation” of Indonesian Islam. In the preceding decades, the state had strongly endorsed liberal and development-oriented Muslim discourses widely perceived as “Westernised” and associated with secularism and Western education. Indonesia’s unique Muslim traditions have in fact been shaped by many centuries of global flows of people and ideas, connecting the region not just with the Arab heartlands of Islam and Europe but South Asia and China. What is relatively new, however, is the presence of transnational Islamist and fundamentalist movements, which weakened the established nation-wide Muslim organisations (Muhammadiyah, NU) that had been providing religious guidance for most of the 20th century. The perceived threat of transnational radical Islam has led to renewed reflection on, and efforts to rejuvenate, indigenous Muslim traditions.
Topic:
Islam, Religion, transnationalism, and Secularism
Political Geography:
United States, China, Indonesia, Asia, and Southeast Asia

2136. Xi Jinping and PLA Transformation through Reforms

Author:
You Ji
Publication Date:
05-2018
Content Type:
Working Paper
Institution:
Centre for Non-Traditional Security Studies, S. Rajaratnam School of International Studies
Abstract:
China’s five-year plan of PLA reform marked a new page in the history of PLA transformation. This article will analyse two major aspects of this round of unprecedented PLA reforms: (i) the politics of the military reform; and (ii) the PLA’s efforts to reshape its force establishments, organisational structure, and command chains. The first concerns Xi’s political leadership and the second draws a roadmap to remould the PLA by 2020. By now the reform has yielded substantial achievements: (i) the overhaul of the apex of power; (ii) the reshaping of the mid-level command chains of the war zone and service; and (iii) the restructuring of the overall force establishments. It has also created some transitional uncertainties as well.
Topic:
Military Affairs, Reform, Political structure, and transnationalism
Political Geography:
China and Asia

2137. Game of Institutional Balancing: China, the AIIB, and the Future of Global Governance

Author:
Kai He and Huiyun Feng
Publication Date:
05-2018
Content Type:
Working Paper
Institution:
Centre for Non-Traditional Security Studies, S. Rajaratnam School of International Studies
Abstract:
The establishment of the Asian Infrastructure Investment Bank (AIIB) has signified a “charm offensive” by China towards multilateral institutions and existing global financial governance. If the rise of China is inevitable, what will the future world look like and what should other countries be prepared for? Borrowing insights from institutional balancing theory and role theory in foreign policy analysis, this project introduces a “leadership transition” framework to explain policy dynamics in global governance with the AIIB as a case study. It suggests that China, the US, and other countries have employed different types of institutional balancing strategies, i.e., inclusive institutional balancing, exclusive institutional balancing, and inter-institutional balancing to compete for influence and interest in the process of establishing the AIIB. A state’s role identity as a “leader,” a “challenger,” or a “follower” will shape its policy choices regarding different institutional balancing strategies in the process of leadership transition in global governance. Institutional balancing is a new form of balancing among states in the future of global governance. China’s institutional rise in global governance might be more peaceful than widely predicted.
Topic:
Regional Cooperation, Infrastructure, Governance, and Economic Cooperation
Political Geography:
United States, China, and Asia

2138. Securing Energy Supply and Maritime Interests: Seeking Convergence

Author:
Frank Umbach
Publication Date:
10-2018
Content Type:
Working Paper
Institution:
Centre for Non-Traditional Security Studies, S. Rajaratnam School of International Studies
Abstract:
As ASEAN’s energy demand is likely to increase by almost two-thirds in the period up to 2040, the regional oil and gas resources in the offshore zones of the ASEAN member states will become even more important for enhancing the energy supply security of both the individual member states as well as for ASEAN as a whole. Accordingly, access to and political as well as physical control and security of these offshore energy resources will receive even more governmental attention. In context of China’s Belt and Road Initiative as well as South China Sea policies and its energy dimensions, they can fuel already existing maritime competition and conflicts in the South China Sea, the Bay of Bengal, the Indian Ocean and the interconnecting sea lanes and regional choke points. This paper analyses the question to what extent are energy security concepts and challenges are interlinked with maritime policies, particularly in regard to the unresolved overlapping claims in the South China Sea and the perceived intensifying naval competition in the Indian Ocean. It also highlights the strategic implications of ASEAN's rising energy demand and growing exploitation of its offshore maritime energy resources for future regional cooperation, enhanced competition and potential strategic rivalries as well as conflicts.
Topic:
Security, Energy Policy, Oil, Gas, Maritime, and ASEAN
Political Geography:
China, Asia, Indian Ocean, and South China Sea

2139. The New Southbound Policy Deepening Taiwan’s Regional Integration

Author:
Bonnie Glaser, Scott Kennedy, and Matthew Funaiole
Publication Date:
01-2018
Content Type:
Working Paper
Institution:
Center for Strategic and International Studies
Abstract:
In a concerted effort to expand Taiwan’s presence across the Indo-Pacific, President Tsai Ing-wen has introduced the New Southbound Policy (NSP) to strengthen Taipei’s relationships with the 10 countries of ASEAN, six states in South Asia (India, Pakistan, Bangladesh, Nepal, Sri Lanka, and Bhutan), Australia, and New Zealand. The policy is designed to leverage Taiwan’s cultural, educational, technological, agricultural, and economic assets to deepen its regional integration. This report tracks the ongoing implementation of the NSP and assesses what has been achieved since Tsai was elected in January 2016. The Guidelines for the New Southbound Policy issued by the Tsai administration detail that the policy is designed to (1) forge a “sense of economy community” by fostering links between Taiwan and the 18 NSP target countries; and (2) establish mechanisms for wide-ranging negotiations and dialogues, and to “form a consensus for cooperation” with NSP target countries. In the short and medium term, the Guidelines identify four goals: (1) use national will, policy incentives, and business opportunities to spur and expand “two-way” exchanges with NSP target countries; (2) encourage industry to adopt “a New Southbound strategy” in their planning; (3) cultivate more people with the skills needed to support the NSP; and (4) expand multilateral and bilateral negotiations and dialogues to enhance economic cooperation and resolve disputes and disagreements.1 The NSP follows from similarly named policies initiated under Presidents Lee Teng-hui and Chen Shui-bian, which were aimed at diversifying Taiwan’s outbound investment away from Mainland China and into Southeast Asia. Since these prior efforts had only a limited impact, skeptics often mischaracterize the NSP as the latest iteration of a failed policy. Such naysayers fail to appreciate, however, that Tsai’s approach is both more strategic and more comprehensive than those of her predecessors. While diversifying and reinvigorating Taiwan’s economy remain fundamental to the NSP, the policy also outlines mechanisms for more effectively integrating Taiwan into the region through cultivating interpersonal connections. Moreover, the NSP is being implemented at a time of slowing growth and rising wages in Mainland China, while investment opportunities are booming in Southeast Asia and South Asia. The core economic goals of the NSP include institutional initiatives, such as updating and expanding economic agreements with targeted countries. At the same time, Taiwan is seeking to encourage small and medium enterprises (SMEs) to explore opportunities overseas. Taipei has also identified avenues for improving bilateral ties by engaging with the general publics of NSP target countries, as well as with government officials and business executives. As such, Taiwan has invested heavily in expanding cultural and educational exchanges to help promote a deeper under- standing of South and Southeast Asian cultures, languages, and business practices among the people of Taiwan. These “people-centered” exchanges serve to realize Taipei’s twin goals of strengthening Taiwan’s integration with the region and facilitating its economic diversification. It is too early to determine whether the NSP will ultimately achieve its ambitious goals, and it may take years before the Tsai government’s investment will start paying dividends. Furthermore, the NSP should be carefully examined by both the countries targeted by Tsai and partners further afield—including the United States. Many of these countries have a vested interest in bolstering the mechanisms available for Taiwan to contribute to the peaceful development of Asia. These countries may find that the goals of the NSP overlap with their own objectives in the region, and therefore may be eager to lend additional support to the endeavor. Selected Policy Recommendations for the United States The United States has a profound interest in the success of Taiwan’s New Southbound Policy. Taiwan has been a long-standing partner of the United States. Its democracy and free society are a beacon of liberal values in the region, while its economic development model has been admired and studied for decades by nations in Asia and beyond. To date, the United States does not appear to have given much thought or expended much effort to support the NSP within Asia. We suggest the United States consider actively supporting the NSP. We recommend the following specific actions: The assistant secretary of state for East Asian and Pacific affairs should coordinate with his/ her counterpart in the South and Central Asia division to create an internal working group to consider how the U.S. government can support the NSP. The U.S. government should engage Japan, Australia, and India, the other members of the “quad,” in support of the NSP. The U.S. government should continue to support Taiwan’s inclusion and active participation in international and regional initiatives where statehood is not required. U.S. nongovernmental organizations (NGOs), particularly those with programs in NSP target countries, should consider partnerships with NGOs in Taiwan to integrate their work where appropriate in support of the NSP. The Commerce Department’s U.S. Commercial Service should engage with American industry associations and companies, and explore potential avenues of collaboration be- tween American and Taiwan industry in NSP target countries. The United States should consider bilateral (U.S.-Taiwan) cultural initiatives that may be brought to third countries in Asia. The United States should include Taiwan youth in relevant regional programs and networks.
Topic:
Agriculture, Education, Regional Cooperation, Science and Technology, Culture, and ASEAN
Political Geography:
Pakistan, Bangladesh, China, India, Taiwan, Sri Lanka, Nepal, and Bhutan

2140. Meeting the China Challenge Responding to China’s Managed Economy

Author:
James Andrew Lewis and John J. Hamre
Publication Date:
01-2018
Content Type:
Working Paper
Institution:
Center for Strategic and International Studies
Abstract:
The U.S.-China relationship is one that neither country can escape. Both benefit from it in important ways. The question for quite some time, though, has been whether China’s economy, international presence, and participation in global institutions would come to look more like our own, or whether it would seek to challenge the order the United States has built and led over the past 70 years. While China’s economic size does not necessarily threaten the United States, China’s willingness to use its economic leverage to forge a global economy closer to its image raises complicated questions considering its lack of transparency. The essays in this volume, written by a diverse group of CSIS scholars, address some of the key issues that currently vex the U.S.-China economic relationship.
Topic:
Diplomacy, Global Political Economy, and Economic Cooperation
Political Geography:
United States, China, Asia, North America, and Asia-Pacific

2141. The Return of Political Warfare

Author:
Seth G. Jones
Publication Date:
02-2018
Content Type:
Working Paper
Institution:
Center for Strategic and International Studies
Abstract:
The Trump administration’s National Security Strategy and National Defense Strategy outline a U.S. shift from counterterrorism to inter-state competition with China, Russia, Iran, and North Korea. However, U.S. policymakers need to be prepared for much of this competition to occur at the unconventional level, since the costs of conventional and nuclear war would likely be catastrophic. U.S. strategy is evolving from a post-9/11 focus on counterterrorism against groups like al Qaeda and the Islamic State to competition between state adversaries. As the National Defense Strategy notes, “Inter-state strategic competition, not terrorism, is now the primary concern in U.S. national security.”1 This shift has significant implications for the U.S. military, since it indicates a need to improve U.S. capabilities to fight—and win—possible wars against China, Russia, Iran, and North Korea if deterrence fails. Though it is prudent to prepare for conventional—and even nuclear—war, the risks of conflict are likely to be staggering. Numerous war games and analyses of U.S. conflicts with Russia in the Baltics, China in the Taiwan Strait and South China Sea, and North Korea on the Korean peninsula suggest the possibility of at least tens of thousands of dead and billions of dollars in economic damages. In addition, these conflicts could escalate to nuclear war, which might raise the number of dead to hundreds of thousands or even millions. According to one analysis, for example, a U.S. war with China could reduce China’s gross domestic product (GDP) by between 25 and 35 percent and the United States’ GDP by between 5 and 10 percent. The study also assessed that both countries could suffer substantial military losses to bases, air forces, surface naval forces, and submarines; significant political upheaval at home and abroad; and huge numbers of civilian deaths.2 These costs and risks will likely give Washington, Moscow, Beijing, Tehran, and even Pyongyang pause, raising several questions. Will these high costs deter the possibility of conventional and nuclear war? If so, what are the implications for the United States as it plans for a rise in inter-state competition? The Cold War offers a useful historical lens. NATO planners prepared for a possible Soviet and Warsaw Pact invasion of Western Europe. The U.S. military, for example, deployed forces to the Fulda Gap, roughly 60 miles outside of Frankfurt, Germany, as one of several possible invasion routes by Soviet and other Warsaw Pact forces. NATO also planned for nuclear war. The United States built up its nuclear arsenal and adopted strategies like mutually assured destruction (MAD). The concept of MAD assumed that a full-scale use of nuclear weapons by two or more opposing sides would cause the annihilation of both the attacker and the defender. The threat of such heavy costs deterred conflict, despite some close calls. During the 1962 Cuban Missile Crisis, the two superpowers nearly went to war after a U.S. U-2 aircraft took pictures of Soviet medium-range and intermediate-range ballistic nuclear missiles (MRBMs and IRBMs) under construction in Cuba. But Washington and Moscow ultimately assessed that direct conflict was too costly. Deterrence held. Instead, the United States and Soviet Union engaged in intense security competition at the unconventional level across Latin America, Africa, Asia, and Europe. Both countries backed substate groups and states to expand their power and influence. Under the Reagan Doctrine, for example, the United States provided overt and covert assistance to anticommunist governments and resistance movements to roll back communist supporters. The Soviets did the same and supported states and substate actors across the globe. In addition, the Soviets adopted an aggressive, unconventional approach best captured in the phrase “active measures” or aktivnyye meropriatia. As used by the KGB, active measures included a wide range of activities designed to influence populations across the globe. The KGB established front groups, covertly broadcast radio and other programs, orchestrated disinformation campaigns, and conducted targeted assassinations. The Soviets used active measures as an offensive instrument of Soviet foreign policy to extend Moscow’s influence and power throughout the world, including in Europe. Unlike the Cold War, the United States confronts multiple state adversaries today—not one. As the National Defense Strategy argues, the United States is situated in “a security environment more complex and volatile than any we have experienced in recent memory” where “the central challenges to U.S. prosperity and security is the reemergence of long-term, strategic competition by what the National Security Strategy classifies as revisionist powers.” But based on the likely costs and risks of conventional and nuclear war with China, Russia, Iran, and North Korea, much of the competition will likely be unconventional—and include what former U.S. State Department diplomat George Kennan referred to as “political warfare.” The term political warfare refers to the employment of military, intelligence, diplomatic, financial, and other means—short of conventional war—to achieve national objectives. It can include overt operations like public broadcasting and covert operations like psychological warfare and support to underground resistance groups.3 The United States’ adversaries today are already engaged in political warfare. Russia, for instance, utilizes a range of means to pursue its interests, such as technologically sophisticated offensive cyber programs, covert action, and psychological operations. Moscow has conducted overt operations like the use of RT and Sputnik, as well as semitransparent and covert efforts. It has also become increasingly active in supporting state and substate actors in countries like Ukraine, Syria, Afghanistan, and Libya to expand its influence in the Middle East, Asia, Europe, and even North Africa. Finally, Russia is attempting to exploit European and transatlantic fissures and support populist movements to undermine European Union and NATO cohesion, thwart economic sanctions, justify or obscure Russian actions, and weaken the attraction of Western institutions for countries on Russia’s periphery. Iran is using political warfare tools like propaganda, cyber attacks, and aid to substate proxies to support its security priorities, influence events and foreign perceptions, and counter threats. Tehran is also assisting state and substate actors in Yemen, Lebanon, Syria, Iraq, Bahrain, and Afghanistan. Iran supports Shia militia groups in Iraq, Hezbollah in Lebanon, the Bashar al-Assad regime in Syria, and Houthi rebels in Yemen. In the South China Sea, China is pouring millions of tons of sand and concrete onto reefs, creating artificial islands. It is also conducting a sophisticated propaganda campaign, utilizing economic coercion, and using fleets of fishing vessels to solidify its assertion of territorial and resource rights throughout the Pacific. Finally, Beijing is targeting the U.S. government, its allies, and U.S. companies as part of a cyber-espionage campaign. With political warfare already alive and well with the United States’ state adversaries, there are several implications for U.S. defense strategy. First, U.S. policymakers need to be prepared for significant inter-state competition to occur at the unconventional level, since the costs and risks of conventional and nuclear war may be prohibitively high. This should involve thinking through trade-offs regarding force posture, procurement, acquisition, and modernization. A U.S. military that predominantly focuses on preparing for conventional or nuclear war with state competitors—by modernizing the nuclear triad, building more resilient space capabilities, acquiring more effective counter-space systems, equipping U.S. forces with high-technology weapons, and emphasizing professional military education (PME) to fight conventional wars—may undermine U.S. unconventional readiness and capabilities. Second, even organizations that already engage in some types of political warfare—such as U.S. Special Operations Command and the U.S. intelligence community—will need to continue shifting some of their focus from counterterrorism to political warfare against state adversaries. This might include, for example, providing more aid to the Baltic States to conduct an effective resistance campaign against unconventional action by Moscow. Or it might involve aiding proxies in countries like Syria and Yemen to counter Iranian-backed organizations. It could also include improving the border security capabilities and effectiveness of Ukrainian military and police units against Russian-backed rebels. Third, the United States should invest in resources and capabilities that allow the military and other U.S. government agencies to more effectively engage in political warfare—and to provide agencies with sufficient authorities to conduct political warfare. One example is improving capabilities to conduct aggressive, offensive cyber operations. Other examples might include advanced electronic attack capabilities, psychological warfare units, security force assistance brigades, and precision munitions. Recognizing that other powers routinely conduct political warfare, George Kennan encouraged U.S. leaders to disabuse themselves of the “handicap” of the “concept of a basic difference between peace and war” and to wake up to “the realities of international relations—the perpetual rhythm of struggle, in and out of war.” Kennan’s advice may be even more relevant today in such a competitive world.
Topic:
Security, Defense Policy, Nuclear Weapons, Military Strategy, and Counter-terrorism
Political Geography:
Russia, United States, China, Europe, Asia, and North Korea

2142. Seven Chinas A Policy Framework

Author:
David Kelly
Publication Date:
02-2018
Content Type:
Working Paper
Institution:
Center for Strategic and International Studies
Abstract:
The debate about China’s changing role in global affairs is often framed as a dichotomous choice between a peacefully rising China that seeks to be a constructive stakeholder and an increasingly dangerous China that is challenging the status quo, both in terms of its norms and the place of the United States. The reality is more complicated. There are not only signs of both elements, but the foundations shaping Chinese behavior is multifold. Most international relations scholars examine China through one or another version of realism or liberalism. David Kelly, head of research at China Policy, offers an alternative approach that examines the nature of Chinese identity, or rather, Chinese identities, plural, and how they exhibit themselves in Chinese foreign policy. Using his renowned skills in reading Chinese-language official documents and the broader commentary, Kelly teases out seven narratives that Chinese tell themselves and the world, and he provides a codebook for explicating shifting Chinese behavior in different arenas. Kelly concludes that some of these narratives facilitate cooperation, but most point toward deep-seated tensions between China and the West in the years ahead.

Topic:
Foreign Policy, Globalization, Imperialism, and Conflict
Political Geography:
United States, China, Asia, North America, and Asia-Pacific

2143. Russia's New Nuclear Weapons: Whoever Dies with the Most Toys Wins?

Author:
Anthony H. Cordesman
Publication Date:
03-2018
Content Type:
Working Paper
Institution:
Center for Strategic and International Studies
Abstract:
Whatever his other limitations, Vladimir Putin has shown he is a master in exploiting Russian nationalism and American and European sensitivities. His latest gambit—publicizing new Russian nuclear systems—several of which are still developmental, may have key components that are untested, or do not yet exist—give him political credibility in asserting Russian national strength in a Russian election year, and emphasize the one key area where Russia remains a leading global super power: its possession of nuclear weapons. The key question is whether they represent any real change in the nuclear balance, Russian and U.S. ability to pose an existential threat to the other state, and mutual assured destruction. If they do not, they are more technological status symbols or “toys” than real threats, although the proliferation of such weapons might allow smaller nuclear powers like Iran and North Korea to defeat today’s missile and air defense systems and technologies. An analysis of the actual content of his speech, the changing nuclear and conventional balance between the superpowers—the U.S., Russia, and China, the global balance of deployed nuclear weapons, the shifts taking in US and Russian balance since the Cold War, and as a result of START, the full range of new U.S. and Russian nuclear programs, and of what Putin did and did not say about Russia's new programs, provides a very different picture from the one Putin portrayed in his speech. It shows that Putin focused on the "toy factor" in emphasize technology over any real world aspects of the balance, arms control, and war fighting.
Topic:
Defense Policy, Nationalism, Military Strategy, Authoritarianism, and Nuclear Power
Political Geography:
Russia, United States, China, Europe, and Asia

2144. Perspectives on Taiwan Insights from the 2017 Taiwan-U.S. Policy Program

Author:
Bonnie S. Glaser and Matthew Funaiole
Publication Date:
03-2018
Content Type:
Working Paper
Institution:
Center for Strategic and International Studies
Abstract:
The papers in this compendium were written by the 10 members of the 2017 CSIS Taiwan-U.S. Policy Program (TUPP) delegation. TUPP provides a much-needed opportunity for future leaders to gain a better understanding of Taiwan through first-hand exposure to its politics, culture, and history. Each participant was asked to reflect on his or her in-country experience and produce a short article analyzing a policy issue related to Taiwan. These papers are a testament to the powerful impact that follows first-hand exposure to Taiwan.
Topic:
Foreign Policy, Diplomacy, and Regional Cooperation
Political Geography:
United States, China, Taiwan, Asia, and Asia-Pacific

2145. The Other Side of the North Korean Threat: Looking Beyond Its Nuclear Weapons and ICBMs

Author:
Anthony H. Cordesman
Publication Date:
03-2018
Content Type:
Working Paper
Institution:
Center for Strategic and International Studies
Abstract:
The United States, South Korea, Japan—and every other state affected by the stability and security of Northeast Asia—has a strong incentive to find a way to end North Korea's nuclear threat and its development and deployment of ICBMs. At the same time, no one can afford to forget that North Korea poses a much wider range of threats from its conventional forces and shorter-range missiles—particularly as it develops ballistic and cruise missiles with precision strike capabilities. U.S. diplomacy and strategy cannot afford to focus solely on nuclear weapons, particularly when North Korea has the option of developing biological weapons with the same lethality as nuclear weapons. The U.S. cannot afford to ignore the conventional threat that North Korea poses to South Korea—a threat that could inflict massive casualties on South Korean civilians as well as create a level of conventional war that could devastate the South Korean economy.
Topic:
Security, Nuclear Weapons, Political stability, and Biological Weapons
Political Geography:
United States, Japan, China, Asia, South Korea, North Korea, and Asia-Pacific

2146. A Tale of Three Coal Markets Common Challenges and Unique Attributes of U.S., Chinese, and Indian Markets

Author:
Jane Nakano and Sarah Ladislaw
Publication Date:
03-2018
Content Type:
Working Paper
Institution:
Center for Strategic and International Studies
Abstract:
The United States, China, and India together constitute about 70 percent of global coal consumption and 64 percent of global coal production. Each country is an important contributor to the global coal supply and demand picture and yet each stands at a very different stage in its relationship with coal. The history of coal in the United States is predicated on a long-term decline in its share of the electricity fuel mix, but deep regional socioeconomic ties give the fuel an outsized role in national energy politics. Coal makes up 15 percent of the total U.S. energy mix and 30 percent of the electric power mix while the power sector accounts for about 90 percent of coal use in the United States. Over the years, electricity demand has flattened thanks to strong efficiency gains. Moreover, the abundance of inexpensive natural gas and rapid decline in renewable energy costs have significantly diminished the competitiveness of coal-fired power generation. Unlike in China and India, the U.S. coal fleet is in contraction as a wave of retirements is underway, with little evidence of reversal, indicating that the current downturn appears structural and not cyclical. After a recent period of decline and bankruptcy for the U.S. industry, a political movement to revitalize the coal sector has emerged from the current presidential administration. Notwithstanding the renewed political support, however, the regulatory uncertainty clouds a future pathway for a coal power resurgence. The notion of economic and energy security benefits long associated with the use of coal has effectively disappeared in one of the largest producer and consumer markets for coal in the world. China is far and away the largest coal consumer and has built coal-fired power generation capacity at an unprecedented rate over the past couple of decades. As it enters a new phase of development, China seeks to reduce the role of coal in its economy both to mitigate the environmental impacts of coal production and use but also to harness its domestic power consumption to drive its competitive advantage in things like solar, wind, and nuclear power generation. China has concrete targets to reduce greenhouse gas emissions and ambitious plans, such as a nationwide emissions trading system, that can influence the pace and scope of shift in its power supply mix. Despite these government targets and the ongoing industrial structural reform that can reduce coal’s dominance in the electric power sector, the trajectory for coal use remains significantly subject to the future of state-owned enterprises and economic liberalization. In contrast to the United States and China, India is a fast-growing market for coal where economic development and universal energy access goals often override concerns about environmental pollution and climate change. India also sees enormous opportunity in renewable energy development—for the positive environmental attributes, the potential commercial opportunities, and the ability to lessen reliance on imported sources of energy like oil, gas, and coal. The Indian central and state governments have set up ambitious policies to foster a greater share of renewable energy in the electric power mix. The growth in renewable power-generation capacity shows early indications that renewables as an indigenous resource have the potential to challenge not only coal’s economic advantage but also its energy security value propositions as an indigenous resource, warranting close attention for some potentially valuable lessons for power-sector management in other developing economies where renewables increasingly beat out coal. How India will calibrate its desire to phase out coal imports despite the quantitative and qualitative issues its domestic supply has is another issue with major implications for both global coal markets and the future of its power supply mix, particularly solar and wind. Even as each market navigates a unique set of circumstances surrounding the role of coal-fired power generation, the availability of midstream infrastructure looms large as a universally important determinant of the competitiveness of coal resources, and thus the fuel hierarchy. Railways are the dominant mode for transporting coal in China and the capacity constraints continue to intensify, disadvantaging domestic resources to imports. Midstream is also a major topic in the United States, where a lack of west coast export terminals limits the U.S. ability to take advantage of continued demand growth in Asia. Low utilization rates also reflect the headwinds facing coal-fired power generation in all three countries. For example, U.S. coal-fired power generation experienced a 20 percent decrease in coal fleet utilization rates and a 12 percent decrease in the generation capacity from 2015 to 2016. Also, while China is expected to add another 200 GW of new coal-power capacity by 2020, the utilization rate of 47.5 percent for the thermal power fleet in 2016 indicates a complex nexus between capacity investment and power demand in the country, where the capacity growth does not give a solid indication of electric power output or fuel consumption. The local air pollution and climate implications of coal-fired power generation in each country also depend on the age of their fleet and capital stock turnover. The perceived future direction of coal in each country impacts the willingness of investors to upgrade or build new, more efficient plants. Whereas the ever-weakening coal-power demand in the United States is diminishing investor appetite for new coal plants with higher efficiency, lower emissions (HELE) technology, the capacity expansion in China is enabling the modernization of its fleet that includes more HELE plants. The pace and scope of modernization for India’s coal fleet, which is much younger yet remains low efficiency and high emissions today, will be an important indicator for its future emissions profile. Lastly, various noneconomic forces at play can generate a tension between the needs of a changing electricity market and the political-economic pressures of expanding coal-power capacity. The coal sector enjoys a powerful narrative on its socioeconomic benefits like jobs and tax revenues for coal-mining communities, but enabled by technology advancements, the emerging focus on values like flexibility in the power sector has elevated attributes of many alternative sources of electricity, including renewables and natural gas in the United States. Likewise, the Chinese expansion of coal capacity appears to be misaligned not only with the projected level of power demand growth but also with government efforts to expand alternative sources of electricity, thus raising the risk of stranded or severely underutilized coal plant assets.
Topic:
Energy Policy, Natural Resources, Renewable Energy, and Coal
Political Geography:
United States, China, India, and Asia

2147. Security Implications of China’s Military Presence in the Indian Ocean

Author:
Zack Cooper
Publication Date:
04-2018
Content Type:
Working Paper
Institution:
Center for Strategic and International Studies
Abstract:
The issue: China’s increased military presence in the Indian Ocean should not come as a surprise. China is following in the traditional path of other rising powers; it is expanding its military operations to match its interests abroad. The security implications of China’s push into the Indian Ocean region are mixed. In peacetime, these efforts will certainly expand Chinese regional influence. In wartime, however, China’s Indian Ocean presence will likely create more vulnerabilities than opportunities. China’s military forays into the Indian Ocean have triggered a series of warnings. The term “string of pearls” was first used to refer to Chinese basing access in the Indian Ocean by a 2004 report for the U.S. Department of Defense. That report suggested China’s growing regional presence could “deter the potential disruption of its energy supplies from potential threats, including the U.S. Navy, especially in the case of a conflict with Taiwan.” Other scholars have warned that Beijing seeks to “dominate” the Indian Ocean region. Others suggest that the Chinese government is simply following its expanding trading interests and seeking to secure its supply lines against disruption. Although China’s presence in the Indian Ocean may permit it to increase its regional influence, Chinese facilities and forces would be highly vulnerable in a major conflict. Thus, the security implications of China’s push into the Indian Ocean region are mixed. In peacetime, these efforts will certainly expand Chinese regional influence. In wartime, however, China’s Indian Ocean presence will likely create more vulnerabilities than opportunities.
Topic:
Foreign Policy, Diplomacy, Imperialism, Military Strategy, and Maritime
Political Geography:
United States, China, India, Taiwan, Asia, and Indian Ocean

2148. China’s Maritime Silk Road Initiative: Economic Drivers and Challenges

Author:
Matthew Funaiole and Jonathan Hillman
Publication Date:
04-2018
Content Type:
Working Paper
Institution:
Center for Strategic and International Studies
Abstract:
The issue: China’s Maritime Silk Road Initiative (MSRI) seeks to connect Beijing with trading hubs around the world. Beijing insists the MSRI is economically motivated , but some observers argue that China is primarily advancing its strategic objectives. This article examines several economic criteria that should be used when analyzing port projects associated with the MSRI. China’s leaders have mapped out an ambitious plan, the Maritime Silk Road Initiative (MSRI), to establish three “blue economic passages” that will connect Beijing with economic hubs around the world.1 It is the maritime dimension of President Xi Jinping’s Belt and Road Initiative (BRI), which could include $1–4 trillion in new roads, railways, ports, and other infrastructure. Within this broad and ever-expanding construct, Chinese investments have been especially active in the Indo-Pacific region, raising questions about whether it is China’s economic or strategic interests that are driving major port investments.
Topic:
Foreign Policy, Imperialism, Maritime, and Trade
Political Geography:
China and Asia

2149. Pakistan’s Gwadar Port: A New Naval Base in China’s String of Pearls in the Indo-Pacific

Author:
Gurmeet Kanwai
Publication Date:
04-2018
Content Type:
Working Paper
Institution:
Center for Strategic and International Studies
Abstract:
The Issue The development of Gwadar Port is a key element of the greater China-Pakistan Economic Corridor (CPEC). It speaks to both the strength of the China-Pakistan relationship and the reach of China’s grand strategy. With Pakistan’s two other major ports operating near capacity with no room for expansion, projects in Gwadar promise to eventually handle one million tons of cargo annually, while also providing significant industrial, oil, and transportation infrastructure. Though a “monument of Pakistan-China friendship,” there are misgivings on both sides about CPEC, including the safety of Chinese workers, the resentment of Baloch nationalists, and the growing debt trap created by the project. The prospect of the PLA Navy in Gwadar poses greater security questions, as it forms another link in China’s efforts to expand its maritime presence in the Indo-Pacific region. The members of the Quadrilateral Security Dialogue, or “Quad,” comprised of India, Japan, Australia, and the United States, should counter China’s strategic outreach by networking with other like-minded countries on cooperative security frameworks to ensure a free, open, prosperous, and inclusive Indo-Pacific region.
Topic:
Security, Oil, Regional Cooperation, Global Political Economy, and Trade
Political Geography:
Pakistan, United States, Japan, China, Middle East, India, Asia, and Australia

2150. Rebooting U.S.-China Trade Ties: “Enter Ye Through the Narrow Gate”

Author:
Christopher K Johnson
Publication Date:
05-2018
Content Type:
Working Paper
Institution:
Center for Strategic and International Studies
Abstract:
Nearly two weeks after the U.S. “Trade Avengers” unleashed during their visit to Beijing what one reasonably could call “trade shock and awe” with a very aggressive—if thoroughly researched and well-crafted—set of demands targeting the yawning U.S. trade deficit with China and the core of that country’s throaty industrial policy, China this week is taking its turn with the visit of Chinese Communist Party (CCP) Politburo member and Vice Premier Liu He, President Xi Jinping’s economic point man who is almost universally described as a thoughtful, pragmatic, and mild-mannered policy academic. In the interim, voices from a wide swath of official Washington have sounded the alarm about the dangers of Chinese influence operations and the presence of alleged subversives, while President Trump himself seemed to cast aside these growing concerns by suggesting via Twitter that he would ask the Commerce Department to overturn its action against the Chinese telecommunications firm ZTE—long a focus of the U.S. security community for suspected cyber espionage activity and irrefutable violations of U.S. law—in response to protests that reportedly emanated directly from President Xi. With such frenetically sustained action in such a short period of time, the fog of war seems particularly thick at the moment. As such, it seems like a good time to slow down and have a think about how we got here, what actually is going on, and, with a little bit of luck, perhaps think about some ways to craft a viable way forward. Just like milestone birthdays in one’s personal life, important political anniversaries also can incline the mind toward reflection. Next year, of course, marks the fortieth anniversary of the reestablishment of diplomatic ties between the United States and China. As such, much breath and a lot of ink have been devoted to analyzing the course of the bilateral relationship over that nearly half-century. Although certainly not a universal opinion, it seems fair, if perhaps overly reductionist, to suggest that the general conclusion among a substantial number of U.S. officials, policy analysts, and journalists has been that the consistent U.S. policy emphasis on engagement with China during those forty years was, at the end of the day, a sham. In this rendering, naïve groups of senior policymakers in succeeding U.S. administrations and in most of the U.S. China-watching community were hoodwinked by wily CCP leaders who talked the talk of integrating into the so-called U.S.-led rules-based international order, but all the while they had a secret master plan to instead subvert that order and challenge U.S. primacy throughout the globe. In a slightly less menacing (if no less absurd) version of this narrative, China was, indeed, headed generally toward this hoped for integration under the stewardship of deceased paramount leader Deng Xiaoping and his handpicked successors Jiang Zemin and Hu Jintao until Xi Jinping arrived and, through a ruthless consolidation of power, decided instead to change course in what now regularly is referred to in shorthand as Xi’s “authoritarian turn.” But this conclusion seems utterly wrongheaded when examined in the light of hard facts. On the Chinese side of the equation, for example, Deng Xiaoping may have appeared warm and cuddly when donning his cowboy hat during his famous 1979 visit to the United States, but he could be just as ruthless and grasping as any other authoritarian leader. Deng’s exceptionally courageous and dogged pursuit of the policies of reform and opening certainly are worthy of praise, but they cannot, and therefore should not, be separated from the fact that he was content to sit idly by as Chairman Mao’s loyal lieutenant as Mao decimated his political rivals during the Anti-Rightist Campaign (1957-59) and the Great Leap Forward (1958-62). Nor should we forget that Deng used every ounce of his massive personal prestige with the People’s Liberation Army to, with steely determination, rally his many reluctant commanders to execute the brutal Tiananmen crackdown of June 4, 1989. Similarly, Xi Jinping is no Jack-in-the-Box-like figure who has pulled a fast one with a sharp directional turn in the last couple of years made all the more stark after his sweeping consolidation of power at last fall’s 19th Party Congress. In fact, it is this author’s contention, as supported by a large body of written work and public commentary, that everything Xi has done over the last five years was abundantly clear, whether explicitly or in embryonic form—from the moment he was introduced to the world as China’s new top leader in the fall of 2012, as encapsulated in his call for his country to pursue the “China Dream” set on a foundation of “the great rejuvenation of the Chinese nation.” This by no means suggests the United States should express support for, or even acquiescence in, Xi’s policies, but only that it should not be reacting with the borderline hysteria that now seems to be gripping Washington.
Topic:
Security, Diplomacy, Global Political Economy, and Trade Wars
Political Geography:
United States, China, Asia, and North America