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  • Author: Ji Guoxing
  • Publication Date: 08-2001
  • Content Type: Policy Brief
  • Institution: East-West Center
  • Abstract: In the wake of a collision between a U.S. spy plane and a Chinese jet fighter off the coast of Hainan in April 2001, verbal skirmishing between the United States and China revealed sharply different conceptions of jurisdictional and navigational principles. These differences persist and will likely be the cause of future conflicts; they have already caused strife among countries ringing the South China Sea. Central to these conflicts are the exclusive economic zones (EEZ) that extend 200 nm into the sea from coastal nations' baselines. Created by the UN Law of the Sea Convention, these zones attempt to accommodate coastal states' interest in controlling offshore resources and maritime powers' interests in maintaining freedom of navigation. But ambiguities in the Convention's language combined with coastal states' proliferating EEZ claims have created a tinderbox. The situation will remain volatile as long as the focus remains on jurisdictional disputes. But confidence-building efforts aimed more narrowly on practical navigation issues and managing “incidents at sea” offer a starting point for first bilateral and then multilateral agreements. In the wake of a collision between a U.S. spy plane and a Chinese jet fighter off the coast of Hainan in April 2001, verbal skirmishing between the United States and China revealed sharply different conceptions of jurisdictional and navigational principles. These differences persist and will likely be the cause of future conflicts; they have already caused strife among countries ringing the South China Sea. Central to these conflicts are the exclusive economic zones (EEZ) that extend 200 nm into the sea from coastal nations' baselines. Created by the UN Law of the Sea Convention, these zones attempt to accommodate coastal states' interest in controlling offshore resources and maritime powers' interests in maintaining freedom of navigation. But ambiguities in the Convention's language combined with coastal states' proliferating EEZ claims have created a tinderbox. The situation will remain volatile as long as the focus remains on jurisdictional disputes. But confidence-building efforts aimed more narrowly on practical navigation issues and managing “incidents at sea” offer a starting point for first bilateral and then multilateral agreements.
  • Topic: Security, Energy Policy, International Law
  • Political Geography: United States, Japan, China
  • Author: Caspar Fithin
  • Publication Date: 04-2001
  • Content Type: Policy Brief
  • Institution: Oxford Analytica
  • Abstract: China said yesterday it would release the crew of the US EP-3 surveillance aircraft that was forced to land in Hainan Island on April 8, following a mid-air collision with a Chinese fighter. The Bush administration will welcome resolution of the dispute, especially as opinion polls released yesterday showed that a majority of US citizens regarded the crew as 'hostages'. Had the 24 crew members not been released before the Easter holiday, the crisis would have become far more significant for the White House, and inflamed anti-China sentiment in Congress. In the short term, resolution of the crisis will result in a scaling down of the criticism of some conservatives that the White House has been unduly accommodating towards China. However, in the longer-term, the episode will strengthen the conservative 'anti-China' lobby in Washington, which could hamper Bush's future attempts to improve relations with Beijing.
  • Topic: International Relations, Politics
  • Political Geography: United States, China, Washington, Beijing
  • Author: Thomas P. Rohlen
  • Publication Date: 07-2000
  • Content Type: Working Paper
  • Institution: Asia-Pacific Research Center
  • Abstract: Now, more than at any point since 1949, Hong Kong's economic future is tied to that of China. This commonplace observation must be coupled with the less obvious, but equally fundamental point that Hong Kong's future with China is based largely on activities that arise in or pass through the Pearl River Delta. This region, however, is cut in half by a sovereign border and governed by a patchwork of political authorities. The Delta as a whole is rich with opportunities, but it is increasingly apparent that these can be realized only if integration moves forward, both in a metropolitan and regional sense. This prospect is currently marked by serious uncertainties.
  • Topic: Security
  • Political Geography: United States, China, Asia, Hong Kong
  • Author: Steven M. Goldstein
  • Publication Date: 02-2000
  • Content Type: Working Paper
  • Institution: Asia-Pacific Research Center
  • Abstract: This paper discusses the relationship between the United States and the Republic of China (ROC) from 1949 to 1979. This was an association that began and ended with an American determination to distance itself from the government on Taiwan, in the interests of improved relations with the government of the People's Republic of China (PRC) on the mainland. In the intervening years, the United States and the ROC were aligned in a relationship—formalized by a mutual defense treaty from 1955 to 1979—which weathered two (almost three) military confrontations with the PRC.
  • Topic: Security
  • Political Geography: United States, China, America, Asia
  • Author: James K. Galbraith, Jaiging Lu
  • Publication Date: 05-2000
  • Content Type: Working Paper
  • Institution: Council on Foreign Relations
  • Abstract: How can one best explain China's remarkable economic growth during twenty-one years and its rise from autarky to world economic power? The exercise requires chutzpah; it demands simplification; it cries out for the trained capacity to present a unifying theme with a weighty set of policy implications.
  • Topic: Development
  • Political Geography: China, Asia
  • Author: Robert A. Manning, Ronald Montaperto, Brad Roberts
  • Publication Date: 04-2000
  • Content Type: Working Paper
  • Institution: Council on Foreign Relations
  • Abstract: Historically, U.S. nuclear strategists and arms control experts have paid little attention to the People's Republic of China (PRC). China has not been a major factor in the U.S. nuclear calculus, which has remained centered on U.S.-Russian nuclear arsenals as the principal framework for arms control and arms reductions. Yet today China is the only one of the five de jure nuclear weapons states qualitatively and quantitatively expanding its nuclear arsenal.
  • Topic: Security, Foreign Policy, Defense Policy, Arms Control and Proliferation, Nuclear Weapons
  • Political Geography: Russia, United States, China, Europe, Asia
  • Author: Neil E. Silver
  • Publication Date: 04-2000
  • Content Type: Working Paper
  • Institution: Council on Foreign Relations
  • Abstract: The political dynamics of China-Japan relations have changed in reaction to three events: the demise of bipolar world politics, China's ''rise,'' and Japan's unexpected economic stall. These changed political dynamics have brought important challenges and consequences for the United States.
  • Topic: International Relations, Security
  • Political Geography: United States, Japan, China, Israel, East Asia, Asia
  • Author: C. Fred Bergsten
  • Publication Date: 03-2000
  • Content Type: Working Paper
  • Institution: Peterson Institute for International Economics
  • Abstract: The initial postwar challenge from East Asia was economic. Japan crashed back into global markets in the 1960s, became the largest surplus and creditor country in the 1980s, and was viewed by many as the world's dominant economy by 1990. The newly industrialized countries (Korea, Taiwan, Hong Kong, Singapore) followed suit on a smaller but still substantial scale shortly thereafter. China only re-entered world commerce in the 1980s but has now become the second largest economy (in purchasing power terms), the second largest recipient of foreign direct investment inflows, and the second largest holder of monetary reserves. Indonesia and most of Southeast Asia grew at 7 percent for two or more decades. The oil crises of the 1970s and the financial crises of the late 1990s injected temporary setbacks but East Asia has clearly become a third major pole of the world economy, along with North America and Western Europe.
  • Topic: Economics, International Trade and Finance, Political Economy
  • Political Geography: Japan, China, Europe, Israel, Taiwan, East Asia, Asia, North America, Korea, Singapore, Hong Kong
  • Author: William Foster, Seymour E. Goodman
  • Publication Date: 11-2000
  • Content Type: Working Paper
  • Institution: Center for International Security and Cooperation
  • Abstract: China and the United States share a new and rapidly expanding border—the Internet. It is a border that neither country fully understands. The possibility for misunderstanding is great because the Internet is not only transforming the relationship between the two countries, it is also transforming the countries themselves. It could be argued that China is going through the greater change. Unlike the past where information was mediated by the State, the mass media, and the work unit, Chinese citizens with Internet connections and a command of English have unprecedented direct and immediate access to information and people around the world. Because of abundance of Chinese language content, Chinese who can only read Chinese still have access to a wealth of information. The Chinese government has imposed its own unique regime on the networks in China that connect to the Internet. Though the United States and China both participate in the Internet, the regimes that they use to govern their networks are very different.
  • Topic: Government, Science and Technology
  • Political Geography: United States, China, Asia
  • Author: Michael M. May, Chi Zhang, Thomas C. Heller
  • Publication Date: 03-2000
  • Content Type: Working Paper
  • Institution: Center for International Security and Cooperation
  • Abstract: This paper examines the impact on global warming of development and structural changes in the electricity sector of Guangdong Province, China, together with the possible effect of international instruments such as are generated by the Kyoto Protocol on that impact. The purpose of the paper is three–fold: to examine and analyze the data available, to put that data into an explanatory economic and institutional framework, and to analyze the possible application of international instruments such as CDMs in that locality. Our plans are to supplement this work with similar work elsewhere in China.
  • Topic: Development, Economics, Energy Policy, Environment
  • Political Geography: China, Asia
  • Author: Kenneth Flamm, Ann Markusen, Judith Reppy, John Lovering, Claude Serfati, Andrew D. James, Eugene Cobble, Judith Sedaitis, Corinna-Barbara Francis, Dov Dvir, Asher Tishler, Etel Solingen
  • Publication Date: 04-2000
  • Content Type: Working Paper
  • Institution: Cornell University Peace Studies Program
  • Abstract: A review of current and forthcoming developments in the European defense industry (which here means mainly Britain, France, Germany, and Italy) would lead, I believe, to some fairly clear conclusions. The relationship between sectoral and national (including regional) economic development is changing profoundly. This is above all because the defense industry currently represents a major and extremely significant instance of globalization. However, this is not the kind of globalization described in many summaries.
  • Topic: Security, Defense Policy, Economics, Industrial Policy
  • Political Geography: Russia, United States, China, United Kingdom, Middle East, France
  • Author: John Lewis Gaddis
  • Publication Date: 08-2000
  • Content Type: Working Paper
  • Institution: The Geneva Centre for Security Policy
  • Abstract: The North Atlantic Treaty Organization stands at a crossroads. Critical choices lie ahead that will determine its future. I begin my paper this way because it is customary to begin pronouncements on NATO with this kind of statement. Indeed papers and speeches on NATO have been beginning this way through the half-century of the alliance's existence - and yet NATO never quite reaches whatever crisis the speaker or writer has in mind. NATO seems to have a life of its own, which is remarkably detached from the shocks and surprises that dominate most of history, certainly Cold War history. And NATO's members, both actual and aspiring, seem bent on keeping it that way. So what is a crossroad anyway in historical terms? Most of my colleagues, I think, would say that it's a turning point: a moment at which it becomes clear that the status quo can no longer sustain itself, at which decisions have to be made about new courses of action, at which the results of those decisions shape what happens for years to come. The Cold War was full of such moments: the Korean War, Khrushchev's de-Stalinization speech, the Hungarian and Suez crises, the Berlin Wall, the Cuban Missile Crisis, the Six Day War, the Tet offensive, Nixon's trip to China, the invasion of Afghanistan, the reunification of Germany, the collapse of the Soviet Union, the end of the Cold War itself. What strikes me as a historian, though, is how little impact these turning points had on NATO's history - even General deGaulle, who tried to turn himself personally into a turning point. The structure and purposes of the alliance today are not greatly different from what they were when NATO was founded. Which is to say that NATO's history, compared to that of most other Cold War institutions, is uneventful, bland, and even (let us be frank) a little dull. That very uneventfulness, though, is turning out to be one of the more significant aspects of Cold War history. It surprised the historians, who have been able to cite no other example of a multi-national alliance that has had the robustness, the durability, the continuity, some might say the apparent immortality, of this one. It has also surprised the international relations theorists, for it is a fundamental principle of their discipline that alliances form when nations balance against threats. It follows, then, that as threats dissipate, alliances should also - and yet this one shows no signs of doing so. An instrument of statecraft, which is what an alliance normally is, has in this instance come to be regarded as a fundamental interest of statecraft. That requires explanation, which is what I should like to attempt here.
  • Topic: Security, Defense Policy, NATO
  • Political Geography: Afghanistan, Russia, United States, China, Europe, Asia, Soviet Union, Germany, Berlin
  • Author: Molly Padgett-Cross
  • Publication Date: 12-2000
  • Content Type: Working Paper
  • Institution: Ralph Bunche Institute for International Studies, City University of New York
  • Abstract: Post-Mao China is a country of contentious debate. 1978 market reforms ushered in an astounding improvement in domestic living standards and secured the PRC's role in international trade. With a post-1978 average of 7% increase in GDP year-on- year, the country claims growth more than three times the global average. Continued reforms and their resulting economic improvement leave no doubt of government commitment to fuqiang (to be rich and powerful), as summed by Deng Xiaoping's oft-quoted sentiment, “To be rich is glorious.” However, in the government's desire to ma intain its legitimacy through expanding the private sector and maintaining impressive GDP growth, the state often neglects the welfare of individuals, particularly women.
  • Topic: Development, Gender Issues, Human Rights
  • Political Geography: China
  • Publication Date: 05-2000
  • Content Type: Working Paper
  • Institution: U.S. Government
  • Abstract: In a recent conference, trade experts identified three primary reasons the World Trade Organization (WTO) failed to launch a new trade Round at its December 1999 Ministerial. First, leading members were unable to resolve differences on critical issues prior to the gathering. In addition, many developing countries and nongovernmental organizations were more assertive than they had been at previous conferences. Finally, in recent years, the WTO has expanded the range of issues it addresses, which has made efforts to reach a consensus on any point more difficult. According to the speakers, as a result of the acrimonious Ministerial, the WTO has suffered a substantial loss of credibility, which will impair efforts to launch a new Round in the near term. There is no immediate alternative to strong US leadership, and WTO negotiations will be more complicated because developing countries and nongovernmental organizations will be more inclined to resist trade liberalization efforts that they believe do not advance their interests. Experts at the conference offered a variety of assessments regarding the course the WTO might choose to follow this year. The majority argued that if the trade body is seeking to rebuild confidence, it could continue with scheduled meetings on agriculture and services and use the time to rebuild confidence. A minority, however, held that the forum is too fractured to make progress, thus talks would only undermine the already declining prestige of the trade body. The experts identified several long-run challenges that the WTO will probably need to address to be an effective decisionmaking institution, including: Bridging the developed-developing country gap Costa Rica, Mexico, and South Africa generally support trade liberalization and have credibility among developed and developing states; thus they are in a position to meld the interests of the two sides. Enacting institutional reforms The organization's expansive agenda and large membership require that it adopt policies that facilitate decisionmaking, especially before new members such as China and Russia join. The trade body may try to increase transparency to promote greater trust in its procedures. Also, to avoid protracted and bitter selections such as the forum suffered last year, the WTO could review its procedures for electing a new director general. Managing the backlash against globalization Supporters of freer trade could launch a massive educational program to highlight the gains for all countries from expanded trade and to counter the dire assertions made by nongovernmental organizations (NGOs).
  • Topic: Foreign Policy, Development, Economics, International Trade and Finance
  • Political Geography: Russia, China
  • Publication Date: 03-2000
  • Content Type: Working Paper
  • Institution: U.S. Government
  • Abstract: China's People's Liberation Army (PLA) is embarked on an ambitious, long-term military modernization effort to develop capabilities to fight and win short-duration, high- intensity conflicts along its periphery. China's defense modernization is broad reaching, encompassing the transformation of virtually all aspects of the military establishment, to include weapon systems, operational doctrine, institution building, and personnel reforms. China values military power to defend economic interests, secure territorial claims, and build political influence commensurate with its status as a regional power with global aspirations. In recent years, the PLA has accelerated reform and modernization in response to the central leadership's concerns that developments across the Taiwan Strait could put at risk Beijing's objectives for Taiwan unification.
  • Topic: Defense Policy, Arms Control and Proliferation
  • Political Geography: United States, China, Taiwan, Beijing
  • Author: Todd M. Koca, Jason D. Ellis
  • Publication Date: 10-2000
  • Content Type: Working Paper
  • Institution: Institute for National Strategic Studies
  • Abstract: The nature, scope, and viability of the strategic relationship between the People's Republic of China (PRC) and the United States have emerged as leading security policy issues. Among the many reasons for this are: China's evidently growing defense budget and its military modernization campaign; its often threatening rhetoric over Taiwan; its reputed espionage activities; and disputes over collateral security issues, such as China's continuing proliferation of weapons of mass destruction. Furthermore, Beijing's lack of transparency concerning its strategic capabilities and modernization programs, and the intentions that undergird each, make it difficult to confidently forecast China's future direction; yet significant strategic decisions undertaken today will have far-reaching and long-term implications. There is a growing sense among defense analysts and specialists that the future disposition of Chinese strategic forces may only modestly resemble that of the past. Looking ahead, U.S. policy- makers must address three central questions: (1) the likely extent of China's strategic modernization; (2) the degree of complementarity of U.S. and PRC regional and strategic interests over time; and (3) the implications of each for U.S. foreign and defense policy.
  • Topic: Arms Control and Proliferation
  • Political Geography: United States, China, Taiwan
  • Author: James J. Przystup, Ronald N. Montaperto, Gerald W. Faber
  • Publication Date: 09-2000
  • Content Type: Working Paper
  • Institution: Institute for National Strategic Studies
  • Abstract: Relations across the Taiwan Strait have reached an apparent impasse. Both China and Taiwan have, in a sense, painted themselves into corners. Yet, aware of the considerable costs that will inevitably be incurred by new and higher levels of tension or conflict, both President Jiang Zemin of China and Chen Shui-bian, the newly elected President of Taiwan, share a vital interest in finding a face-saving way out of their respective dilemmas without compromising their longer term objectives. In the process, each is being influenced and constrained by a number of factors related to politics, economics, and broad strategic interests. Overall, these factors will provide incentives to seek a reduction of tensions, at least in the short term. At the same time, years of mutual mistrust and the stark and growing differences between their respective political and social cultures will continue to affect the prospects for a mutually acceptable resolution of the issues separating China and Taiwan.
  • Topic: Security, Defense Policy, Government
  • Political Geography: China, Europe, Taiwan
  • Publication Date: 03-2000
  • Content Type: Working Paper
  • Institution: The Carter Center
  • Abstract: At the invitation of the Ministry of Civil Affairs (MCA), People's Republic of China, The Carter Center sent a delegation to observe villager committee (VC) elections in Hebei Province from January 4 to 13, 2000. The delegation was led by Ambassador Gordon L. Streeb, Associate Executive Director of the Center, and made up of nine Center staff members, election experts and China scholars from various universities in the United States and Denmark. This was the fourth time since 1997 that the Center has observed village elections in China and the first time that an international organization has been invited to observe a primary VC election.
  • Topic: Civil Society, Democratization, International Organization
  • Political Geography: United States, China, Denmark
  • Author: Youn-Suk Kim
  • Publication Date: 09-2000
  • Content Type: Journal Article
  • Journal: International Journal of Korean Studies
  • Institution: International Council on Korean Studies
  • Abstract: Historically, Korea has been under the influence of its ambitious neighbors, China, Japan and Russia, which causes Korea's intense concern for its long-term independence. Through the budding signs of North-South Korea unification, Korea perceives that long-term peace and security derive from having a close diplomatic and economic relationship with the United States as the most crucial ingredient. Thus President Kim Dae Jung of South Korea and his counterpart of the North, Kim Jong II, at the June meeting emphasized the continued presence of United States troops in the Korean peninsula for stability and peace in East Asia even after the unification. In association with the United States economy, the unified Korea could play a major role as a regional balancer, giving stability to a new order in Northeast Asia and the Asia-Pacific region as a whole.
  • Political Geography: Russia, United States, Japan, China, Korea, Northeast Asia
  • Author: Chong-Wook Chung
  • Publication Date: 09-2000
  • Content Type: Journal Article
  • Journal: International Journal of Korean Studies
  • Institution: International Council on Korean Studies
  • Abstract: I feel deeply honored to be invited to this annual meeting of the International Council on Korean Studies and to deliver a keynote speech on overseas Koreans. I would like to express my profound gratitude to Professor I lpyong Kim, President of the Council, and others who worked so hard to make this timely and important annual meeting a success. Before I start, let me make some preliminary remarks. First, I do not believe I can speak on behalf of the government of Korea. I left the government two years ago to return to the academic community. Second, I do not consider myself, either as a scholar or as a former government official, an expert on the subject of overseas Koreans. The best claim I can make in this connection is the fact that while I was serving as the senior secretary for national security and foreign policy for the President for two years in 1993 and 1994, my responsibilities included the affairs of overseas Koreans.
  • Political Geography: China, America, Korea
  • Author: Nicholas R. Lardy
  • Publication Date: 05-2000
  • Content Type: Policy Brief
  • Institution: The Brookings Institution
  • Abstract: In what has been described as its most important vote this year, the U.S. Congress will soon decide whether to provide permanent normal trade relations to China. A vote is required because, after 14 years of negotiations, China is poised to enter the World Trade Organization (WTO). Assuming China concludes its bilateral negotiations with the European Union by June or July, entry is likely before the end of the year. The cornerstone principle of the World Trade Organization is that members provide each other unconditional Most Favored Nation trade status, now called Permanent Normal Trade Relations (PNTR) in U.S. trade law. Current U.S. law precludes granting PNTR to China; as a result President Clinton has asked Congress to amend the law. A negative vote would have no bearing on China's entry into the World Trade Organization, but it would mean that U.S. companies would not benefit from the most important commitments China has made to become a member. Gaining the full range of benefits is particularly important in light of the large and growing deficit the United States faces in its trade with China (Figure 1). A positive vote would give U.S. companies the same advantages that would accrue to companies from Europe, Japan, and all other WTO member states when China enters the World Trade Organization. It would also provide an important boost to China's leadership, that is taking significant economic and political risks in order to meet the demands of the international community for substantial additional economic reforms as a condition for its WTO membership. A positive vote would strengthen bilateral economic relations more generally. That may help place a floor on the broader bilateral relationship, which continues to face critical challenges on security issues, stemming largely from tensions between China and Taiwan, and on human rights issues.
  • Topic: International Relations, International Trade and Finance
  • Political Geography: United States, China, Europe, Asia
  • Author: Jonathan G. Clarke
  • Publication Date: 10-2000
  • Content Type: Policy Brief
  • Institution: The Cato Institute
  • Abstract: The foreign policy record of the Clinton-Gore administration deserves a less than stellar grade. At the end of the Cold War, there was an extraordinary opportunity to build a new relationship with a democratic Russia; restructure U.S. security policy in both Europe and East Asia to reduce America's burdens and risk exposure; and revisit intractable Cold War–era problems, such as the frosty relations with Cuba, Vietnam, and North Korea. The administration's performance must be judged within the context of such an unprecedented opportunity for constructive change.
  • Topic: International Relations, Foreign Policy
  • Political Geography: Russia, United States, China, Europe, Israel, East Asia, Asia, North Korea, Vietnam
  • Author: Mark A. Groombridge
  • Publication Date: 04-2000
  • Content Type: Policy Brief
  • Institution: The Cato Institute
  • Abstract: The U.S. Congress is in the historic position of being able to help pro-reform leaders in China move their country in a market-oriented direction. A vote to grant China permanent normal trade relations (PNTR) status will bolster the position of those leaders in Beijing who are attempting to deepen and broaden the scope of China's two-decade experiment with economic reform. Granting PNTR and China's subsequent accession to the World Trade Organization will benefit, not only the United States and the world trading community, but most directly the citizens of China, millions of whom are still mired in abject poverty.
  • Topic: International Relations, Foreign Policy, International Trade and Finance
  • Political Geography: United States, China, Beijing, Asia
  • Author: Richard L. Lawson, Donald L. Guertin, Shinji Fukukawa, Kazuo Shimoda
  • Publication Date: 11-2000
  • Content Type: Policy Brief
  • Institution: Atlantic Council
  • Abstract: Given the dramatic increases in economic growth, energy use and attendant environmental problems in Asia, it is timely for Japan and the United States to increase their bilateral cooperation and cooperation with other Asian countries in the energy field as an integral part of their efforts to help Asia achieve sustainable development. The magnitude of growth in Asia in energy use is well illustrated, for example, by a projected doubling in China from 1990 to 2020. Projections indicate energy demand in China could triple by 2050, relative to 1990. These increases are not only of great significance to individual Asian economies, but also globally, as projections indicate that most of the growth in energy demand in the next century will occur in Asia (and principally in China and India). Achievement of such growth in energy demand, to improve the living standards of the 3.3 billion Asians that now represent about half of the world's population, is essential from the viewpoint of equity, social development and the economic well-being of people throughout Asia.
  • Topic: Energy Policy, International Cooperation
  • Political Geography: United States, China, Israel, East Asia, Asia
  • Author: Chen Yixin
  • Publication Date: 01-2000
  • Content Type: Policy Brief
  • Institution: Chatham House
  • Abstract: Recent years have seen increasing liberalization of trade in financial services associated with the GATT / WTO negotiations. The Agreement concluded on 13 December 1997 by 70 WTO members will result in a significant impact on the financial services sector for these members. Although China has not yet been admitted to membership of the WTO, it has come under pressure to open its financial services market. Market access in this sector has been not only one of the major issues in its WTO accession talks, but also intrinsically linked to China's ongoing domestic financial system reforms, consistent with the gradualist scheme for its overall economic reform. China has been liberalizing its financial services sector, but only gradually. This paper outlines the reforms in its financial sector since 1979, and then offers an explanation for the slow speed of reform .
  • Topic: Economics, International Trade and Finance
  • Political Geography: China, Shanghai
  • Author: Caspar Fithin
  • Publication Date: 11-2000
  • Content Type: Policy Brief
  • Institution: Oxford Analytica
  • Abstract: A leaked Shanghai Stock Exchange report has detailed the extent of trading irregularities within China's domestic equity markets. In the primary market, a series of companies have falsified records on profits, assets and even entire businesses in order to publicly issue and list shares. In the secondary markets, insider trading, the spreading of false information, coordinated stock purchases, price ramping and sales of stocks by large institutional investors are common practice. The extent of trading irregularities reflects the government's preference for market growth over regulatory standardisation. This approach is undermining the CSRC's credibility. Unless regulatory practices are tightened, institutional investors will not have the maturing effect on markets and stabilising impact on prices the government seeks.
  • Topic: Economics, Government, Markets
  • Political Geography: China
  • Author: Caspar Fithin
  • Publication Date: 10-2000
  • Content Type: Policy Brief
  • Institution: Oxford Analytica
  • Abstract: US Trade Representative Charlene Barshefsky and China's Prime Minister Zhu Rongji this month held talks in Beijing to discuss China's accession to the WTO. Beyond opening up commercial opportunities to US firms, the award of permanent normal trade relations status to China, and its prospective accession to the WTO, should in theory add predictability to the bilateral trade relationship.
  • Topic: International Relations, International Organization, International Trade and Finance
  • Political Geography: United States, China, Beijing
  • Author: Oxford Analytica
  • Publication Date: 06-2000
  • Content Type: Policy Brief
  • Institution: Oxford Analytica
  • Abstract: With the presidential primary season having ended this week, the race for the White House now heads for the party conventions. Since effectively securing the Republican nomination, Texas Governor George Bush has regained his poll lead over the de facto Democratic nominee, Vice-President Al Gore. If Bush retains a clear poll lead by the convention season, the current signs of apprehension amongst Democratic leaders will become more apparent. If Gore can more closely identify himself with the economy's exceptionally strong performance, he is perfectly capable of staging a full recovery and securing victory in November.
  • Topic: Government, Politics
  • Political Geography: United States, China
  • Author: Oxford Analytica
  • Publication Date: 06-2000
  • Content Type: Policy Brief
  • Institution: Oxford Analytica
  • Abstract: A recent meeting of Asian countries on how to combat increasingly violent pirates in the region follows landmark prosecutions of those involve, but years of half-hearted action by coastal states. The International Chamber of Commerce has already called on ASEAN trade bloc nations to join China and Japan in signing the 1988 UN Convention for the Suppression of Unlawful Acts against the Safety of Maritime Navigation (the Rome convention). It would allow pirates caught in seas beyond national maritime jurisdictions to be prosecuted as international criminals. However, 14 of the 16 countries at the Japanese-sponsored talks in Singapore last March have yet to sign. Findings will be presented to a high-level international conference between regional maritime security agencies and government shipping bodies in Tokyo this month.
  • Topic: Security, Government, International Trade and Finance
  • Political Geography: Japan, China, Asia, Singapore
  • Author: Oxford Analytica
  • Publication Date: 02-2000
  • Content Type: Policy Brief
  • Institution: Oxford Analytica
  • Abstract: China's relatively rapid growth cannot mask the fundamental problems the economy faces. The government will be forced to continue to apply stimulus to the economy, but the sustainability of this approach is limited. The positive impact of eventual WTO membership will take time to be felt, while accession–related reforms and increased foreign competition will prove disruptive. The country has a limited time in which to prepare.
  • Topic: Economics, Government, International Trade and Finance
  • Political Geography: China
  • Author: Linda Jakobson
  • Publication Date: 01-1999
  • Content Type: Working Paper
  • Institution: Finnish Institute of International Affairs
  • Abstract: Though the Chinese Communist Party clings to its monopoly on power and fully intends to avoid “walking down the road of the Soviet Union,” it is implementing revolutionary political reform in the countryside. For the past decade, multi-candidate elections, in which candidates need not be members of the Communist Party, have been held in hundreds of thousands of Chinese villages. Abdicating its prerogative to appoint village chiefs, the Party has conceded that elected ones are more effective. The grassroots-level governance reform (jiceng zhengquan gaige) not only empowers ordinary citizens and encourages them to take part in the decision-making process. It also institutionalizes the concepts of accountability and transparency.
  • Topic: Democratization, Government
  • Political Geography: China, Asia, Soviet Union
  • Author: Douglas Paal
  • Publication Date: 07-1999
  • Content Type: Working Paper
  • Institution: Asia-Pacific Research Center
  • Abstract: As Americans consider their options for protecting and advancing their interests in Asia in the twenty-first century, it is natural that there will be wide-ranging views and vigorous debate. Recent events such as the 1996 Taiwan crisis, the Asian economic meltdown in 1997, and the exchange of state visits by presidents Bill Clinton and Jiang Zemin in 1997 and 1998 have intensified, then moderated and redirected, much of the debate over a very short span of time. Two years ago, for example, the Chinese were worrying aloud about American efforts to “encircle” China. Now they talk about “building a constructive strategic partnership with the U.S.” Despite these ups and downs, however, the fundamental choices for the United States have remained largely the same.
  • Topic: Security
  • Political Geography: United States, China, America, Taiwan, Asia
  • Author: Chu Shulong
  • Publication Date: 06-1999
  • Content Type: Working Paper
  • Institution: Asia-Pacific Research Center
  • Abstract: The American security alliances with Japan and South Korea have been a major concern of China's foreign and defense policies. China's position toward the alliances is determined by its foreign policy and security theories, doctrines, and principles; by its approach to a regional security mechanism in the Asia-Pacific region; by its bilateral relations with countries in Northeast Asia; and by incidental issues such as territorial disputes in Asia in which it is involved.
  • Topic: Security
  • Political Geography: United States, Japan, China, Asia, Korea
  • Author: Lawrence J. Lau, K.C. Fung
  • Publication Date: 04-1999
  • Content Type: Working Paper
  • Institution: Asia-Pacific Research Center
  • Abstract: The United States and China have vastly different official estimates of the bilateral trade imbalance. The U.S. figures show that the United States had a merchandise trade deficit of US$57 billion vis-à-vis China in 1998 whereas the Chinese figures show that China had a merchandise trade surplus of only US$21 billion vis-à-vis the United States. There is a difference of US$36 billion. Which set of figures is right?
  • Topic: International Trade and Finance
  • Political Geography: United States, China, Asia
  • Author: Michael J. Green
  • Publication Date: 03-1999
  • Content Type: Working Paper
  • Institution: Asia-Pacific Research Center
  • Abstract: This monograph explores contemporary Japan-ROK security relations from the perspective of U.S. strategic interests in Asia. Japan and the Republic of Korea have been aligned but not allied since the beginning of the Cold War, and the United States has long been frustrated in its desire to strengthen the Japan-ROK leg of its network of bilateral alliances in Asia. The United States abandoned the goal of encouraging a formal U.S.-Japan-ROK alliance early on in the Cold War, and in the current strategic environment a trilateral alliance would probably be counterproductive. At the same time, however, the fluidity of East Asian security relations today has heightened the dangers of leaving the Japan-ROK security relationship in an ambiguous state. Closer Japan-ROK security cooperation will enhance U.S. efforts to maintain forward presence, manage diplomacy and potential crises on the Korean Peninsula, and integrate China as a cooperative partner in the region. In contrast, distant Japan-ROK relations would complicate all of these U.S. objectives. Hostile Japan-ROK relations, particularly in the context of Korean reunification, would have a spillover effect on Sino-U.S. relations and could return the region to the great-power rivalry of the last century.
  • Topic: Security
  • Political Geography: United States, Japan, China, Asia, Korea
  • Author: Jae Ho Chung
  • Publication Date: 02-1999
  • Content Type: Working Paper
  • Institution: Asia-Pacific Research Center
  • Abstract: Does history repeat itself? It appears so for Korea as an unfortunate geopolitical pawn of its stronger neighbors for the last century or so. History does not seem to repeat in quite the same way, however. As Chinese diplomat Huang Zunxian recommended in 1880 that Chosun (Korea's official designation during the Yi Dynasty) “side with the Qing” ( qinzhong ) while relegating the relative importance of Japan and the United States to the levels of “aligning and connecting” ( jieri and lianmei ), respectively, Korea remained for the most part the most loyal subsystem of the Sinic world order, thereby missing out on opportunities for self-strengthening and realignment and eventually becoming a Japanese colony. More than a hundred years later, the Republic of Korea (hereafter Korea) may now be about to confront a similar dilemma, but this time with a reversed order of preferences. That is to say, the rise of China, with which Korea has already accomplished diplomatic normalization, may gradually force the Seoul government to reconfigure its Cold War–based strategic thinking and reassess its half-century alliance relationship with the United States.
  • Topic: Security
  • Political Geography: United States, China, Asia, Korea
  • Author: Andrew Scobell
  • Publication Date: 01-1999
  • Content Type: Working Paper
  • Institution: Asia-Pacific Research Center
  • Abstract: China conducted a series of military exercises and missile tests in the vicinity of the Taiwan Strait between July 1995 and March 1996. On July 18, 1995, Beijing announced that missile tests would be conducted targeting an area some 90 miles off the coast of northern Taiwan. Then, on three consecutive days, July 21, 22, and 23, a total of six DF-15 missiles were launched from sites in Fujian province—two per day. The following month, after a five-day advance warning, PLA naval vessels and aircraft conducted ten days of live-fire tests off the coast of Fujian. Further military exercises were conducted in mid-November to the south of the Strait, including joint operations involving air, land, and naval arms of the PLA. On March 5, 1996, Beijing announced it would soon begin another round of missile tests. This time they were to be targeted at seas less than fifty miles from Taiwan's busiest ports. On March 8, three DF-15 missiles were fired from bases in Fujian. Five days later, another DF-15 missile was launched. Finally, also after advanced warning, live-fire tests and war games were conducted off the coast of Fujian to the north of the Strait and to the south of the Strait between March 12 and March 25. The maneuvers included amphibious landing exercises and aerial bombing. Some forty naval vessels, two hundred and sixty aircraft, and an estimated 150,000 troops participated.
  • Topic: Security
  • Political Geography: United States, China, Taiwan, Beijing, Asia
  • Author: Jerome A. Cohen
  • Publication Date: 09-1999
  • Content Type: Working Paper
  • Institution: Council on Foreign Relations
  • Abstract: My talk today has two parts. The first will comment on the roles of the various actors in the famous decision of the Hong Kong Court of Final Appeal in the “right of abode” cases and the subsequent interpretation of the Basic Law by the Standing Committee of the National People's Congress (“Standing Committee” or “NPCSC”). The second part will focus specifically on a fundamental and immediate constitutional question now confronting the various actors - whether an interpretation of the Basic Law by the NPCSC is binding on the courts of the Hong Kong Special Administrative Region (“HKSAR”).
  • Topic: Foreign Policy, International Law
  • Political Geography: China, Asia, Hong Kong
  • Author: Warwick McKibbin
  • Publication Date: 12-1999
  • Content Type: Working Paper
  • Institution: The Brookings Institution
  • Abstract: The economies of South East Asia and Korea have been shaken by a financial and economic crisis that has enveloped the region since mid 1997. There are competing explanations for the cause of the crisis however most commentators would agree that a major shock that impacted on the countries has been a dramatic increase in the perceived risks of investing in these economies. This paper explores the impact of a re-evaluation of the risk in the Asian economies focussing on the differential real consequences of a temporary versus more permanent rise in risk. It contributes to our understanding of the possible consequences of the Asia crisis by applying a global simulation model that captures both the flow of goods as well as international capital flows between countries. The real impacts on the Asian economies of a rise in risk perceptions in the model are large and consistent with observed adjustment. However the spillovers to the rest of the world are relatively small because the loss in export demand that accompanies the crisis in Asia is offset by a fall in long term interest rates as capital flows out of Asia into the non-Asian OECD economies. Thus strong domestic demand in economies such as the US induced by the general equilibrium effects of the reallocation of financial capital can more than offset the consequences of lower export growth. The analysis also highlights the impacts on global trade balances reflecting the movements of global capital and points to both potential problems and lesson for policymakers over the coming years.
  • Topic: Economics, Emerging Markets, Globalization
  • Political Geography: China, Israel, East Asia, Asia
  • Author: Warwick McKibbin, KK Tang
  • Publication Date: 12-1999
  • Content Type: Working Paper
  • Institution: The Brookings Institution
  • Abstract: Despite the setbacks from the recent Asian currency crisis, the ascendancy of Asia as an economic centre of world economic activity is likely to continue into the 21st century. A key issue that will shape the role of Asia, and indeed the shape of the world economy in the 21st century, is the economic development of China. To date China has successfully weathered the currency storm in Asia and continues on a program of economic reform. If anything, the problems of Japan and Korea provide powerful lessons for other countries undergoing rapid economic growth and structural change. These lessons include the importance of a well developed financial sector with lending and investment decisions based on market signals rather than government directives. Whether China can further integrate smoothly into global markets and sustain the fast growth of the last few decades will be a crucial development in the world economy. In this paper, we explore the impacts of continued Chinese economic reform with a focus on the role of international financial flows both in the adjustment within China as well as in the transmission of Chinese reforms to the rest of the world.
  • Topic: Economics, Emerging Markets, Globalization
  • Political Geography: China, Israel, East Asia, Asia
  • Author: Warwick McKibbin
  • Publication Date: 12-1999
  • Content Type: Working Paper
  • Institution: The Brookings Institution
  • Abstract: This paper explores the impact on economies of trade liberalization under alternative regional and multilateral arrangements: unilateral liberalization; liberalization as part of the ASEAN regional grouping; liberalization as part of the APEC regional grouping; or liberalization as part of a multilateral trade liberalization regime. The paper is based on a Dynamic Intertemporal General Equilibrium model (DIGEM) called the Asia-Pacific G-Cubed Model. It is shown that the long run gains from a country's own liberalization tend to be large relative to the gains from other countries liberalizing although this varies across countries. It is also shown that there is a significant difference between the effects on GDP (production location) and the effects on consumption per capita of the alternative liberalization approaches across countries. The timing of liberalization is also shown to matter. With open capital markets the gains from credibly announced trade liberalization are realized before the reforms are put in place because there is a rise in global investment which raises the global capital stock. In addition there is a reallocation of capital via financial market adjustment. This paper also demonstrates that for some economies, there can be short run adjustment costs to trade liberalization because resources cannot be instantly reallocated across sectors in an economy. These adjustment costs from own liberalization can be reduced if more countries also liberalize. The nature of the dynamic adjustment suggests that other macroeconomic policies may play an important role during the early period of phased-in trade liberalization.
  • Topic: Economics, Emerging Markets, Globalization
  • Political Geography: China, Israel, East Asia, Asia
  • Author: Warwick McKibbin, Yiping Huang
  • Publication Date: 12-1999
  • Content Type: Working Paper
  • Institution: The Brookings Institution
  • Abstract: Rapid growth of the Chinese economy in the past decade and its potential for strong growth into the foreseeable future have caused anxieties in the rest of the world. Some commentators see Chinese growth wholly in terms of competition for trade and investment opportunities with other developing economies and a major cause of structural adjustments in the advanced industrialized economies. In particular there have been warnings of severe consequences for international agricultural markets. In this paper we use a dynamic general equilibrium model called the G-CUBED model (developed by McKibbin and Wilcoxen) to explore possible future paths of the Chinese economy based on projections of population growth, sectoral productivity growth, energy efficiency and technical change in the Chinese economy. This model captures not only the composition of the direct trade impacts of developments in the Chinese economy but also the implications of the endogenous flows of financial capital on macroeconomic adjustment in the world economy. The study focuses on the period from 1990 to 2020. Rather than being a problem for the world economy, we find strong growth in China is beneficial for the world economy directly through raising world incomes.
  • Topic: Economics, Emerging Markets, Globalization
  • Political Geography: China, Israel, East Asia, Asia
  • Author: Warwick McKibbin
  • Publication Date: 12-1999
  • Content Type: Working Paper
  • Institution: The Brookings Institution
  • Abstract: An important aspect of macroeconomic interdependence in the Asia Pacific region is the adjustment of trade and current account balances in response to changes in saving and investment rates in individual economies. Greater trade flows, reliance on imported intermediate goods as well as more integrated capital markets imply that shifts in private or public saving and investment rates in an economy in the region can potentially have large impacts on other economies. This paper explores the quantitative nature of these linkages by focusing on a number of shocks within the context of a new dynamic multi-sector global model called the Asia-Pacific G-Cubed Model (AP-GCUBED). This model integrates sectoral adjustment with macroeconomic interdependence including explicit treatment of capital flows to explore the implications of a variety of productivity and investment shocks in the Asia Pacific Region. The first shock considered is a permanent decline in private investment in Japan. The second shock is a temporary rise in total factor productivity growth in China. The fall in Japanese investment is found to have a significant effect on trade flows and financial flows in the region whereas the rise in Chinese productivity has a quite different effect on the region.
  • Topic: Economics, Emerging Markets, Globalization
  • Political Geography: China, Israel, East Asia, Asia
  • Author: Christopher Layne
  • Publication Date: 05-1999
  • Content Type: Working Paper
  • Institution: The Cato Institute
  • Abstract: The Clinton administration has made one miscalculation after another in dealing with the Kosovo crisis. U.S. officials and their NATO colleagues never understood the historical and emotional importance of Kosovo to the Serbia n people, believing instead that Belgrade's harsh repression of the ethnic Albanian secessionist movement in Kosovo merely reflected the will of President Slobodan Milosevic of Yugoslavia. The administration's foreign policy team mistakenly concluded that, under a threat of air strikes, the Yugoslav government would sign a dictate d peace accord (the Rambouillet agreement) to be implemented by a NATO peacekeeping force in Kosovo. Even if Milosevic initially refused to sign the Rambouillet agreement, administration leaders believed that Belgrade would relent after a brief “demonstration” bombing campaign. Those calculations proved to be disastrously wrong.
  • Topic: Conflict Resolution, International Relations, Foreign Policy, NATO, Ethnic Conflict
  • Political Geography: Russia, United States, China, Europe, Eastern Europe, Asia, Kosovo, Yugoslavia, Serbia, Balkans, Albania
  • Author: Doug Bandow
  • Publication Date: 05-1999
  • Content Type: Working Paper
  • Institution: The Cato Institute
  • Abstract: To contain Soviet-led communism and, secondarily, to prevent a militarily resurgent Japan, Washington established a network of alliances, bases, and deployments throughout East Asia after World War II. By the 1990s the Soviet Union had imploded, China had become a reasonably restrained international player, and other communist states had lost their ideological edge. At the same time, the noncommunist nations had leaped ahead economically. Despite such momentous developments, however, U.S. policy remains fundamentally the same.
  • Topic: Security, Foreign Policy, Defense Policy
  • Political Geography: United States, Japan, China, Washington, Israel, Soviet Union
  • Author: Michael M. May, Alastair Iain Johnston, W.K.H. Panofsky, Marco Di Capua, Lewis R. Franklin
  • Publication Date: 12-1999
  • Content Type: Working Paper
  • Institution: Center for International Security and Cooperation
  • Abstract: The Cox Commission of the U.S. Congress was established in June 1998 to investigate concerns over Chinese acquisition of sensitive U.S. missile and space technology in connection with the launching of U.S. civilian satellites using Chinese launchers on Chinese territory. The investigations were broadened in October 1998 to include alleged security problems and possible espionage at the U.S. nuclear weapons laboratories. Some conclusions were released in January 1999 by the White House together with the administration's response. The full declassified (redacted) version of the report of the Cox Commission was released on May 25, 1999.
  • Topic: Security, Foreign Policy, Defense Policy, Arms Control and Proliferation, Nuclear Weapons
  • Political Geography: United States, China, Asia
  • Author: George Bunn
  • Publication Date: 09-1999
  • Content Type: Working Paper
  • Institution: Center for International Security and Cooperation
  • Abstract: The nuclear nonproliferation regime was challenged in 1998 by nuclear-weapon tests in India and Pakistan, by medium-range missile tests in those countries and in Iran and North Korea, by Iraq's defiance of UN Security Council resolutions requiring it to complete its disclosure of efforts to acquire weapons of mass destruction, and by the combination of “loose nukes” and economic collapse in Russia. Additional threats to the regime's vitality came in 1999 from the erosion of American relations with both China and Russia that resulted from NATO's 1999 bombing of Yugoslavia—with additional harm to relations with China resulting from U.S. accusations of Chinese nuclear espionage and Taiwan's announcement that it was a state separate from China despite its earlier acceptance of a U.S.-Chinese “one China” agreement. Major threats to the regime also came from the continued stalemate on arms-control treaties in the Russian Duma and the U.S. Senate, from a change in U.S. policy to favor building a national defense against missile attack, and from a Russian decision to develop a new generation of small tactical nuclear weapons for defense against conventional attack.
  • Topic: International Relations, Arms Control and Proliferation, Economics, Government, Nuclear Weapons
  • Political Geography: Pakistan, Russia, United States, China, Europe, Iran, South Asia, Middle East, Israel, East Asia, Asia, Korea
  • Author: Jian Sun
  • Publication Date: 02-1999
  • Content Type: Working Paper
  • Institution: United Nations University
  • Abstract: Since the beginning of the Chinese economic reforms in 1978, there has been a series of effort to reform the labour compensation practice in state-owned enterprises to strengthen the link between pay and productivity. Despite the reforms, however, rapid increases in wage rates occurred in state-owned enterprises. Moreover, although state-owned enterprises have much lower productivity gains than non-state enterprises, they pay substantially higher wages and have faster wage growth.
  • Topic: Economics, Globalization, Industrial Policy, International Political Economy
  • Political Geography: China, Asia
  • Author: Danny Quah
  • Publication Date: 01-1999
  • Content Type: Working Paper
  • Institution: United Nations University
  • Abstract: Can the increasing significance of knowledge-products in national income—the growing weightless economy—influence economic development? Those technologies reduce "distance" between consumers and knowledge production. This paper analyzes a model embodying such a reduction. The model shows how demand-side attributes—consumer attitudes on complex goods; training, education, and skills for consumption (rather than production)—can importantly affect patterns of economic growth and development. Evidence from the failed Industrial Revolution in 14th-century China illustrates the empirical relevance of the analysis.
  • Topic: Development, Economics, Science and Technology
  • Political Geography: China
  • Author: Dmitriy Gershenson, Herschel I. Grossman
  • Publication Date: 12-1999
  • Content Type: Working Paper
  • Institution: Independent Institute
  • Abstract: The Soviet ruling elite, the nomenklatura, used both cooption and political repression to encourage loyalty to the communist regime. Loyalty was critical both in defusing internal opposition to the rule of the nomenklatura and in either deterring or defeating foreign enemies of the Soviet Union. The cost of coopting people into the communist party was a decrease in the standard of living of members of the nomenklatura, whereas the cost of political repression was the danger that members of the nomenklatura would themselves be victimized. We assume that the nomenklatura determined the extent of cooption and the intensity of political repression by equating perceived marginal benefits and marginal costs.
  • Topic: Cold War, Government
  • Political Geography: Russia, China