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181. Putin Is Doing Xi’s Dirty Work (and the West Is Helping Him)

Author:
William R. Spiegelberger
Publication Date:
11-2022
Content Type:
Commentary and Analysis
Institution:
Foreign Policy Research Institute
Abstract:
Vladimir Putin’s diplomatic turn to China has been a disappointment for good reason: Beijing is more interested in advancing its own anti-Western interests than in helping Moscow. The more fruitful and natural partnership would be between Russia and the West, since both face a common threat from China and the infrastructure for mutual prosperity is already in place. The main impediment to improved Russian-Western relations is the continued rule of Putin, who is increasingly doing China’s bidding at Russia’s expense.
Topic:
Foreign Policy, Diplomacy, Bilateral Relations, Partnerships, Xi Jinping, and Vladimir Putin
Political Geography:
Russia, China, Eurasia, and Asia

182. Treading Lightly: China’s Footprint in a Taliban-led Afghanistan

Author:
Jiayi Zhou, Fei Su, and Jingdong Yuan
Publication Date:
11-2022
Content Type:
Commentary and Analysis
Institution:
Stockholm International Peace Research Institute
Abstract:
This SIPRI Insights Paper provides a preliminary assessment of China’s attitudes to and policies on Afghanistan since the August 2021 Taliban takeover. It examines the scope of China’s security, economic and humanitarian interests, and the depth of its engagement so far. It finds that China’s footprint has been minimal due not only to China’s non-interference policy but also to a range of broader challenges: the militant extremist groups that continue to operate on Afghan soil, the risks of investing in a country where the government remains unrecognized by any member of the international community and a fragile stability that is far from conducive to long-term planning. While there may be prospects and opportunities for China to contribute to Afghan peace and development, particularly from a broader regional perspective, current realities mean that China’s overall approach to Afghanistan will remain cautious, pragmatic and limited.
Topic:
Security, Foreign Policy, Development, Taliban, and Investment
Political Geography:
Afghanistan, China, and South Asia

183. Arms-production Capabilities in the Indo-Pacific Region: Measuring Self-reliance

Author:
Lucie Béraud-Sudreau, Xiao Liang, Siemon T. Wezeman, and Ming Sun
Publication Date:
10-2022
Content Type:
Special Report
Institution:
Stockholm International Peace Research Institute
Abstract:
Armed forces in the Indo-Pacific region remain dependent on weapon systems imported from foreign suppliers. This is despite the efforts of many governments in the Indo-Pacific to implement policies that support the development of local arms industrial capabilities with the aim of increasing self-reliance. This report develops three indicators to give a score and regional ranking of self-reliance in arms production to 12 jurisdictions in the Indo-Pacific region: Australia, China, India, Indonesia, Japan, South Korea, Malaysia, Pakistan, Singapore, Taiwan, Thailand and Viet Nam. Overall, this report contributes to knowledge and debates on armament trends and military modernization in the Indo-Pacific. In a region where tensions among neighbours are rising, it further contributes to transparency with regard to levels of self-reliance in domestic arms production, allowing for an independent assessment of the region’s respective arms industries.
Topic:
Security, Foreign Policy, Arms Control and Proliferation, Arms Trade, and Imports
Political Geography:
China, Australia, and Indo-Pacific

184. How to Engage and Prevail in Political Warfare against China

Author:
John Lee
Publication Date:
11-2022
Content Type:
Policy Brief
Institution:
Hudson Institute
Abstract:
In his report to the Twentieth National Congress of the Communist Party in October, Xi Jinping praised the progress made over the past decade under his leadership to advance the great rejuvenation of the Chinese nation domestically and internationally. According to Xi, this is taking place in an era of “momentous changes of a like not seen in a century [and which] are accelerating across the world.”1 For Xi, these “great changes” comprise “a significant shift [that] is taking place in the international balance of power, presenting China with new strategic opportunities in pursuing development.”2 A pillar of Xi’s plan to realize the rejuvenation of China and to emerge as the preeminent nation in the region and beyond is to shrink the strategic, military, economic, political, and normative ground in the region on which the United States can sustain, build, and demonstrate its power and influence. This is because China knows there is no material or nonmaterial counterbalance without the US. Additionally, the more China can weaken the resolve of US allies and other countries to support American-led initiatives to counter China and the credibility of the US-led alliance system, the smaller and weaker the ground for Washington to maintain its footholds in distant lands becomes, and the closer China draws to its goal of preeminence. The Chinese plan relies on building unmatched “comprehensive national power,” or CNP, which China can use to seduce, compel, or coerce other nations.3 CNP has material and nonmaterial elements. Regarding the latter, Beijing places enormous emphasis on political warfare in the form of information and influence operations. The first three memos in this series on Chinese political warfare argue that the Chinese Communist Party (CCP) makes no distinction between wartime and peacetime and believes it is engaged in a perpetual “struggle” against the West.4 Regarding political warfare, the previous memos noted that the People’s Liberation Army (PLA) plays a central and often dominant role in leading doctrine and operations when it comes to informational and influence warfare.
Topic:
Foreign Policy, Defense Policy, and Chinese Communist Party (CCP)
Political Geography:
China and Asia

185. Don’t Fear Vacuums: It’s Safe To Go Home

Author:
Benjamin H. Friedman
Publication Date:
12-2022
Content Type:
Commentary and Analysis
Institution:
Defense Priorities
Abstract:
“We will not walk away and leave a vacuum to be filled by China, Russia, or Iran,” President Biden said this July in defense of his administration’s continued commitment to the Middle East.1 His comments reflect a widely held misconception: that a U.S. military exit from the Middle East would empower U.S. adversaries, and thus somehow make Americans less secure.2 U.S. leaders and pundits have expressed similar fears about the danger of creating vacuums by leaving Syria, Afghanistan (before U.S. exit of course), and even Africa, where only smatterings of U.S. troops are stationed.3 Vacuum fears also fuel more general warnings against surrendering influence in the developing world. Chinese investments via its Belt and Road Initiative—a massive set of infrastructure-development loans—for example, are said to exploit a vacuum the United States should compete to fill. Chinese trade in South America, or Russian port calls there, are said to reflect a failure to exert U.S. influence.4 The burgeoning idea behind these claims is that “great power competition,” which once seemed a useful rationale for exiting conflicts and lingering endeavors of the global war on terror, demands winning an open-ended, ill-defined contest for influence with Russia and China in the greater Middle East and developing world, or what is now sometimes called the global south.5 Vacuums that could be said to follow a U.S. exit—not the terrorists or insurgents U.S. forces were deployed to fight—are the new justification for staying.
Topic:
Security, Foreign Policy, Defense Policy, and Military Affairs
Political Geography:
China, Middle East, and United States of America

186. Divergencias chino-estadounidenses y reconfiguración de la política exterior latinoamericana. Introducción al número especial

Author:
Pablo Biderbost and Guillermo Boscán Carrasquero
Publication Date:
10-2022
Content Type:
Journal Article
Journal:
Revista UNISCI/UNISCI Journal
Institution:
Unidad de investigación sobre seguridad y cooperación (UNISCI)
Abstract:
Este número especial de la Revista UNISCI se centra en la rivalidad creciente entre Estados Unidos y China en el contexto latinoamericano. Pretende ofrecer una visión comprehensiva del papel de estas potencias en la región y la adaptación que han debido realizar, en el contexto de su política exterior, los estados latinoamericanos. A tales efectos, se analizan dimensiones tanto vinculadas a la seguridad como a las relaciones comerciales entre estas naciones y los, en la actualidad, dos estados dominantes del escenario geopolítico internacional.
Topic:
Security, Foreign Policy, Trade, and Competition
Political Geography:
China, Latin America, and United States of America

187. Aid and Technological Cooperation as a Foreign Policy Tool for Emerging Donors: The Case of Brazil

Author:
Kamil Yılmaz
Publication Date:
12-2022
Content Type:
Journal Article
Journal:
Uluslararasi Iliskiler
Institution:
International Relations Council of Turkey (UİK-IRCT)
Abstract:
There is a high concern that development assistance can be seen as national interest from the donor’s perspective. The book dwells on the specific case of Brazil and tackles the question of how a country like Brazil seeks power and influence by providing no-strings-attached foreign technical assistance. In the book, there are also some similarities and differences among Southern emerging donors like China, India and South Africa, concerning their take on foreign assistance. The book, as Farrias puts it, is mainly about foreign policy motivations and development assistance. In the particular case of Brazil, author asks what the foreign policy logic behind the no-strings-attached development assistance is. While answering the question, she gets help from a theoretical perspective, which is a combination of realism and constructivism. According to Farrias, development partnership between developing countries is understudied; and she wants to clear this gap with a specific case study. According to her, most studies deal with money-based cooperation, but from a developing country’s perspective, knowledge sharing is common. Hence, technical cooperation is ought to be explored, Farrias claims. According to Farrias, technical cooperation is mostly on non-controversial topics. She advocates that despite the weakness of development assistance, it is one of the most common foreign policy tools for developing countries.
Topic:
Foreign Policy, International Cooperation, Science and Technology, Foreign Aid, Book Review, and Development Assistance
Political Geography:
China, India, South Africa, Brazil, and Global South

188. What the Quad Is, Is Not, and Should Not Be

Author:
Daniel Depetris
Publication Date:
09-2021
Content Type:
Commentary and Analysis
Institution:
Defense Priorities
Abstract:
Since its establishment in 2007, the Quadrilateral Security Dialogue (QSD or Quad) has transformed into a multilateral forum to enhance military coordination in the Indo-Pacific among the U.S., Japan, India, and Australia and to address issues of mutual concern—particularly the rise of China. The U.S. has pushed for this transformation. Quad members speak of the group as a forum for issues in the Indo-Pacific ranging from COVID-19 and climate change to emerging technologies. But China, Asia’s biggest power, is integral to addressing each issue. In early 2021, the group’s leaders signed a joint statement reiterating the importance of a rules-based order in the Indo-Pacific—a reference to what all four members regard as China’s illegitimate claims in the South and East China Seas. Indo-Pacific Quad members also have disputes with China: India over its shared border with China; Japan over China’s sovereignty claims over the Senkaku islands; and Australia over worsening ties, including onerous trade restrictions and tariffs.
Topic:
Security, Foreign Policy, Defense Policy, COVID-19, and Quad Alliance
Political Geography:
Japan, China, India, Australia, and United States of America

189. Economic Cracks in the Great Wall of China: Is China's Current Economic Model Sustainable?

Author:
Thomas J. Duesterberg
Publication Date:
12-2021
Content Type:
Special Report
Institution:
Hudson Institute
Abstract:
Since Deng Xiaoping changed the trajectory of Chinese economic policy in 1978, the People’s Republic of China (PRC) has amassed an impressive record of economic growth. Many economists and political analysts, however, have come to question whether the top-down, mercantilist economic system in the PRC is sustainable in the medium to long term. This report explores the long-term structural and short-term economic problems in contemporary China, and in particular considers whether the Xi Jinping regime can avoid a financial crisis and effectively manage a transition to a stable new equilibrium. Structural issues include a looming downturn in the population and in the workforce; associated problems with an underdeveloped and underfinanced social safety and welfare net; income and regional inequality; environmental degradation; and domestic shortages of raw materials, agricultural production, and energy resources. The acute economic problems analyzed in the paper are a real estate bubble, the accumulation of dangerous levels of debt, dependence on external markets and financing, a difficult transition to a more consumer-oriented and less investment-driven economy, a crackdown on dynamic digital and financial sectors, a return to dominance of low-productivity state-owned enterprises and manufacturing firms, and weak governance from an increasingly authoritarian and unaccountable regime. Many of these acute issues result from Xi’s changes in policy since 2013. Xi’s turn toward greater economic self-reliance while maintaining mercantilist trade relations signals an effective decoupling from the US and allied economies. Some historical examples of bubble economies and financial crises are discussed as possible analogies to the current situation in China. One conclusion is that the Middle Kingdom will see a much slower-growing economy, which makes addressing the structural issues much more difficult. Inability or lack of determination to address the large array of issues may also undermine the political legitimacy of the current regime, which has been buttressed since 1978 by a rapid growth model based on debt, real estate, and investment, including infrastructure. The concluding section of this report offers policy tools that the United States and its allies could deploy to induce China to be a more responsible stakeholder in the world economy and a more reliable contributor to global sustainability. The tools considered in the study include trade policy and export controls, expanded oversight of foreign investment (both direct and portfolio investment), cooperation with allies on China policy, and defense-related sanctions. The paper also suggests that deployment of these tools could be a factor in weakening China’s economy as well as a means to convince its leadership to pursue less mercantilist and authoritarian global strategies, which are harmful to the US economy and to global stability.
Topic:
Foreign Policy, International Trade and Finance, Finance, Economy, and Economic Growth
Political Geography:
China and Asia

190. The Diminishing Path to Growth: Can Xi Jinping Avoid Crisis during China's Economic Transition

Author:
Thomas J. Duesterberg
Publication Date:
12-2021
Content Type:
Special Report
Institution:
Hudson Institute
Abstract:
Since Deng Xiaoping changed the trajectory of Chinese economic policy in 1978, the People’s Republic of China (PRC) has amassed an impressive record of economic growth. Starting as a poverty-stricken agricultural society under rigid socialist rule, the country has grown steadily and rapidly to become the second largest economy in the world and carved out a growth path whose strength and longevity is historically unprecedented. As the 21st century has unfolded, the PRC has become a near peer competitor to the United States and other developed countries in terms of economic and political power. It is deploying this power in multiple ways that explicitly challenge US leadership in both the economic and global political spheres. If the PRC manages to maintain recent growth rates of around 6 percent per year, it will soon overtake the United States as the world’s largest economy and enhance its ability to challenge the global US leadership position, which has been a pillar of stability since World War II. The US and its allies had hoped that the PRC would become a responsible stakeholder in a liberal international order, but these hopes have been undermined in recent years by China’s increasingly apparent mercantilist economic policies, its aggressive expansion of political power, the resurgent dominance of state-owned enterprises, and the ever-more evident suppression of political liberties and traditional cultures in its sphere of influence. Many economists and political analysts, however, have come to question whether the top-down, mercantilist economic system in the PRC is sustainable in the medium to long term. A number of trends suggest weaknesses in the traditional economic and political structures that have propelled growth in China: growing private and public sector debt, adversely shifting demography, the return to prioritizing state-run enterprises over private firms, the continued reliance on an export-oriented economic system, growing weaknesses in the financial system, dependence on external commodity and technology suppliers, persistent economic and geographic inequality, and continued reliance on external financing. Recent economic data show that bankruptcies are growing, returns on investment are shrinking, and capital controls are contributing to unrealistic valuations of internal capital stock and housing stock. Additionally, regulations are stifling innovative sectors of the economy, and opaque and unregulated consumer financing products are undermining central bank monetary policy and contributing to over-leveraged balance sheets among consumers and small businesses. Consumer purchasing power that is consistently too weak to absorb domestic production, along with incentives to increase that production, has resulted in sustained trade surpluses that create a closed loop of increased investment in manufacturing and the need for growing markets. More recently, US-led efforts to deny China access to certain high-technology products and materials have underscored Chinese vulnerabilities in key sectors like telecommunications and semiconductors. This dynamic results in trade tensions with developing countries and in economically questionable investment in the developing world. These tensions, along with the undermining of developing world markets through subsidized PRC production, are increasingly causing costly disruptions in trade flows and placing pressure on the state banking system, which is the source of most external financing. If the mounting problems with the current Chinese economic model result in material slowing of growth or even sustained recession in the PRC, this would have substantial impact on the United States and its allies in two important ways. First, given that the PRC is the second largest (or in some measures the largest) economy in the world and has been an engine of growth for economies in Europe and the rest of Asia, slower growth or recession in China would likely lead to a global slowdown or recession. Second, because growth has immense political salience in the PRC—it justifies the authoritarian system of governance—a significant slowdown or recession could lead to political instability. Given Chinese nationalist rhetoric and revanchist ambitions toward Taiwan, political instability could in turn motivate risky military activities that escalate into confrontations with democratic, market-oriented countries. From the perspective of the United States, a slowdown could exacerbate the already serious trade and economic tensions, especially if nationalist forces in China sought to cast the US as the scapegoat for its internal problems. In sum, a better understanding of the weaknesses within the PRC growth model and its potential frailties would allow policymakers to craft targeted tools when needed to support US policy objectives, either economic or political, and to deter PRC aggression or the undermining of US economic interests. Policy tools such as trade tariffs, export controls, and limitations on direct investments and access to US financial markets could have material impact on Chinese performance. A more robust understanding of the impact of these tools would help the United States and its allies craft overall strategies to meet the Chinese economic and political challenge. Even while operating in a time frame longer than twelve months, many financial analysts have begun to describe the unfolding economic challenges in the PRC. The general public, including political opinion leaders and government analysts, have not generally understood the extent of the danger of economic crisis in China. Instead, the common assumption is that growth in the PRC, albeit a continuing economic threat to the US economy, is not in danger of faltering. This white paper takes a different view, exploring the structural weaknesses characterizing the current Chinese economic model and the recent policy changes initiated by President Xi Jinping. Its working assumption is that the combination of these two factors will result in a material weakening of the dynamic growth China has enjoyed since Deng Xiaoping set his country on a more Western-style growth path in the late 1970s. At a minimum, various factors will slow growth to levels more characteristic of modern developed economies; and at the extreme these factors may possibly lead to negative growth and weakening of the political strength that underpins the dictatorship of the Chinese Communist Party (CCP).
Topic:
Foreign Policy, Economics, Economic Growth, and Xi Jinping
Political Geography:
China and Asia

191. Africa and the United States: Reengaging with Africa’s Prosperity in Mind

Author:
Carl Manlan
Publication Date:
02-2021
Content Type:
Journal Article
Journal:
Cairo Review of Global Affairs
Institution:
School of Global Affairs and Public Policy, American University in Cairo
Abstract:
With China as a dominant foreign power in Africa, the only option left for United States to engage with the continent is to follow its priorities: namely, prioritizing African youth.
Topic:
Foreign Policy, International Cooperation, Hegemony, Youth, Strategic Competition, and Rivalry
Political Geography:
Africa, China, Asia, North America, and United States of America

192. A Principled Middle Power Diplomacy Approach For South Korea to Navigate the U.S.-China Rivalry

Author:
Saeme Kim
Publication Date:
10-2021
Content Type:
Special Report
Institution:
Korea Economic Institute of America (KEI)
Abstract:
In the context of growing US-China tensions, South Korean administrations have opted for degrees of strategic ambiguity, refraining from overt actions that suggest South Korea is taking sides. While strategic ambiguity has been moderately successful, there are limits to this approach which make it unsustainable. This paper will argue that rather, South Korea needs to apply a principled middle power diplomacy, which refers to a middle power carrying out roles expected of it in accordance with a set of rules or values that uphold the liberal international order. The goal of principled middle power diplomacy would be to shape the environment in which the current great power rivalry is unfolding, in order to moderate the fallout of great power competition. After an analysis of South Korea’s middle power diplomacy, this paper will recommend that South Korea double down on its commitment to multilateralism so that it can augment its roles as a facilitator and agenda-setter on the international stage.
Topic:
International Relations, Foreign Policy, Diplomacy, Multilateralism, and Rivalry
Political Geography:
China, Asia, South Korea, North America, and United States of America

193. Building on the Middle: Diversifying South Korea’s Foreign Policy Narrative and Economic Ties

Author:
Carolin Wefer
Publication Date:
11-2021
Content Type:
Special Report
Institution:
Korea Economic Institute of America (KEI)
Abstract:
The rivalry between the United States and China is affecting countries in its midst. This particularly applies to South Korea. The country is a strong economic player with a successful net of free trade agreements. Additionally, it has branded itself as a middle power, a multilateralist, and good international citizen. However, South Korea’s middle power perspective has recently assumed a literal definition of being situated in the middle of two great powers. Seoul’s dependencies on both the U.S. and China are undeniable. As the conflict intensifies, it is thus essential for South Korea to diversify its ties through trade policy and multilateral fora. This requires leaving the literal middle power definition behind and leveraging its economic standing towards an increase in international status, as well as refocusing on the figurative middle power narrative that brought the country to its initial global esteem. Through diversification and the build-up of its economic and multilateral prowess, South Korea stands to lessen the shocks of the U.S.-China rivalry. Joining RCEP and obtaining a guest role at the G7 were important steps in that direction. They offer an expansion of both regional and global ties and an involvement in discussions on the redefinition of international fora, but more can be done.
Topic:
Foreign Policy, Economics, Multilateralism, Rivalry, and Middle Power
Political Geography:
China, Asia, South Korea, and United States of America

194. Between a Rock and a Hard Place: How Should South Korea Manage its Relations with the United States and China?

Author:
Zhiqun Zhu
Publication Date:
11-2021
Content Type:
Working Paper
Institution:
Korea Economic Institute of America (KEI)
Abstract:
This paper deals with one of the most critical issues in contemporary international relations: how China’s rise challenges foreign policies of U.S. allies, with a focus on the Republic of Korea (ROK) or South Korea. South Korea has been carefully hedging between the United States and China, its traditional security patron and largest trade partner, respectively. Strategic rivalry between the two great powers has put South Korea in an awkward position as pressure grows from the two powers to pick a side. Using a modified dual-track economics-security nexus framework, this paper suggests that the United States and China each has a significant impact on South Korea’s security and economic policies, making it important but challenging for South Korea to simultaneously manage relations with the two great powers. So far, South Korea has maintained these two sets of relationships remarkably well, but it may be difficult to continue with business as usual in the years ahead. For its own national interests, South Korea must seek to preserve the status quo under which it can continue to benefit from good relations with both great powers. The paper also proposes that South Korea should form a “middle power coalition” with like-minded nations to deflect pressures and avoid the dilemma of having to choose sides.
Topic:
International Relations, Security, Foreign Policy, Alliance, and Trade
Political Geography:
China, Asia, South Korea, and United States of America

195. The Sino–U.S. National Identity Gap and Bilateral Relations

Author:
Danielle Cohen
Publication Date:
07-2021
Content Type:
Journal Article
Journal:
Joint U.S.-Korea Academic Studies
Institution:
Korea Economic Institute of America (KEI)
Abstract:
The national identity gap between China and the United States has become increasingly apparent. Under Xi Jinping, China has sought to reclaim its historical greatness and proclaimed itself to be a responsible great power that offers a credible alternative to Western values, while also promoting increasingly authoritarian policies at home, complete with extensive repression in Xinjiang and renewed state control of the economy. Assertions of U.S. national identity were somewhat muted under Donald Trump, confused by the battle between those who supported the administration’s “America First” policy, its transactional approach to foreign affairs, and its deemphasis on human rights and democracy promotion in U.S. foreign policy, and those who worried about the global repercussions of an isolationist, nativist policy. For a time, the United States seemed more preoccupied with its trade war with China than with claims that the United States should act as the global protector of human rights and democracy. The COVID-19 pandemic further complicated already tense Sino–U.S. relations and called both countries’ national identities into question. While China had, as of spring 2021, succeeded in keeping its COVID-19 outbreak remarkably small, the damage caused by its initial suppression of medical reports, along with successful virus mitigation in a number of non-authoritarian states, called into question its claim to be a responsible world power on the basis of its pandemic performance. Meanwhile, the Trump administration failed to protect U.S. citizens from catastrophic death tolls and prevented the United States from taking a leading role in resolving this global crisis. In January 2021, the Biden administration took office with a focus on swiftly ending the pandemic, while also reasserting the traditional U.S. global leadership role. When combined with its assessment of U.S. power after the 2008 Global Financial Crisis and of U.S. domestic social and political instability evident throughout 2020-2021, the pandemic has strengthened China’s perceptions of the United States as a country in decline, and of China as a “risen” great power that should now play a major role in shaping the global order. At the same time, although U.S. policy towards China remains firm despite the presidential transition, the underlying rationale has shifted from the “America First” approach of the Trump administration to the democratic values-infused approach of the Biden administration. As the world struggles to move beyond the pandemic, the national identities of China and the United States are increasingly defined in opposition to each other and seem likely to drive an ever more challenging bilateral relationship in the coming years.
Topic:
International Relations, Foreign Policy, Bilateral Relations, Culture, and Domestic Politics
Political Geography:
China, Asia, North America, and United States of America

196. The Pandemic as a Geopolitical Gamechanger in the Indo-Pacific: The View from China

Author:
Yun Sun
Publication Date:
07-2021
Content Type:
Journal Article
Journal:
Joint U.S.-Korea Academic Studies
Institution:
Korea Economic Institute of America (KEI)
Abstract:
How has the COVID-19 pandemic reshaped or influenced China’s geopolitical outlook and its grand strategy for the years to come? This is a question that will determine China’s relationship with the United States, the Indo-Pacific region, and the rest of the world. In the Chinese strategic community, the pandemic has been regarded as a “watershed” event that has reshaped the structure of the international system and the power equilibrium. Its importance is elevated to the same status as the end of World War II, which determined the bipolar international system between the U.S. and the Soviet Union, and the end of the Cold War which began thirty years of U.S. hegemony in a unipolar world. Although China began as a sheer loser in the pandemic given its culpability in the origin of COVID and its early poor management of the domestic spread of the disease, Beijing believes that it has eventually emerged as a pure winner in the pandemic: the relative gain China has made vis-à-vis the U.S.’s bigger losses in disease control, national power, economic growth, global leadership, and credibility has strengthened Chinese confidence that the tide is turning in China’s favor. The “effectiveness” of the Chinese political system, as manifested in its domestic disease control, has reinforced China’s ideological conviction of its superiority. As China uses COVID diplomacy to demonstrate the superiority and desirability of its political system, the pandemic is perceived as an opportunity for it to shape the new international order and promote China’s desired “Community of Common Destiny.” Challenges remain, as the U.S. revamps its alliance system under the Biden administration and as regional powers and Western countries grow increasingly concerned and anxious about China’s growing confidence and capabilities. However, for China, the pandemic has been a great opportunity, and China has emerged from it as a pure winner. It is an interesting question as to how the pandemic has changed the nature and the dynamics of the great power competition between the U.S. and China. Most would agree that the pandemic exacerbated, accelerated, and aggravated the deterioration of relations that the U.S. and China had already been experiencing before 2020. However, the differences lie in the degree, intensity, velocity, and extensiveness of the damage. Without the pandemic, the downward slope U.S. and China had already been on would not have come to a state of “freefall” in 2020. And that “freefall” period has long-lasting and significant implications for their bilateral relations in the post-COVID world. The damaged trust, confidence, and credibility, and the deeply entrenched sense of hostility, or even antagonism, have made any effort to repair the relations extremely difficult, if not completely impossible. And this reality will affect the regional dynamics in the Indo-Pacific region for the many years and decades to come.
Topic:
International Relations, Security, Foreign Policy, Geopolitics, and COVID-19
Political Geography:
China, Asia, North America, United States of America, and Indo-Pacific

197. Xi Jinping’s Evergrande Dilemma

Author:
John Lee
Publication Date:
09-2021
Content Type:
Policy Brief
Institution:
Hudson Institute
Abstract:
Evergrande is one of the top-two real estate developers in a still highly fragmented Chinese sector. Its main strategy is to achieve ever-increasing scale (rather than profitability) in order to move ahead of and crowd out commercial competitors. It has also amassed the largest land reserves of all Chinese developers, which were financed through massive borrowings. By 2018, Evergrande held 822 pieces of undeveloped land in 228 cities, with a planned gross floor area of 3.28 billion square feet of new homes—the equivalent of 10 percent of Germany’s entire housing stock. It paid $75 billion just for this undeveloped land. Although Evergrande’s market share is only around 4 percent, its borrowings stand out. Its current balance sheet liabilities amount to an estimated 2 percent of China’s gross domestic product (GDP), while its off-balance-sheet liabilities could be another 1 percent of China’s GDP. This makes Evergrande the most indebted property developer in the world. Burdened by this debt, struggling to meet its debt interest and repayment obligations, and viable only if property asset values and sales continue to increase, Evergrande faces possible financial collapse—an event bound to have flow-on effects for the Chinese economy. However, the unusually high global interest in Evergrande has arisen because its woes are increasingly seen as symptomatic of those faced by the broader Chinese economy, which is struggling with enormous levels of indebtedness and overreliance on the real estate sector. Debt held by nonfinancial institutions in China increased from about 115 percent of GDP in 2010 to around 160 percent of GDP currently. This is the most rapid and largest increase in a 10-year period for any major economy and makes the level of debt held by Chinese nonfinancial institutions one of the highest in the world. The real estate sector accounts for around 15 percent of GDP, while property services account for another 14 percent—the highest in any developing economy. The share of the real estate sector as a proportion of GDP was only about 4 percent in 1997 and 9 percent in 2008. Since 2008, up to a third of all domestic fixed investment has gone into real estate, and up to half of total national debt is linked to the real estate sector.
Topic:
International Relations, Foreign Policy, Debt, Economics, Markets, and Business
Political Geography:
China and Asia

198. Genocide in Xinjiang: Centering Uyghur Human Rights in US Policies Toward China

Author:
Nury Turkel
Publication Date:
11-2021
Content Type:
Policy Brief
Institution:
Hudson Institute
Abstract:
Acts of genocide are currently underway against the Uyghur people in the Xinjiang Uyghur Autonomous Region of northwestern China, also known as East Turkistan. As part of a campaign of persecution and cultural eradication, Chinese authorities have, according to former detainees and prisoners, subjected millions of Uyghurs and other minorities to rape, torture, forced labor, arbitrary detention, involuntary abortion and sterilization in state-run facilities, and the separation of around half a million Uyghur children from their families. Although both Republicans and Democrats in the United States have acknowledged these horrifying acts as genocide, the rest of the world has been slow to follow, whether because they find the evidence to be inconclusive or because they are reluctant to antagonize China. Regardless, now that the Biden administration is on record declaring the actions of the Chinese government to be genocide, the United States has a legal and moral obligation to do what it can to end the mass atrocities that the Chinese Communist Party (CCP) is committing against the Uyghur people. While both the Trump and Biden administrations and Congress have already taken steps to address this human rights disaster, more can and should be done to defend the Uyghur people, address their humanitarian needs, promote accountability, and ensure that individuals and entities within the United States—including private businesses—are not complicit in the abuses underway. A strong response to the ongoing genocidal campaign would send a powerful message to Beijing that America will not tolerate efforts to destroy ethno-religious groups, either as a whole or in part. Conversely, failure to act would render the Convention on the Prevention and Punishment of the Crime of Genocide (which the United States ratified in 1988) and its implementing legislation null and void. Through the three Cs—competition, confrontation, and cooperation—the Biden administration can act in coordination with US friends and allies abroad to end these atrocities. The Biden administration is now on record as recognizing this repressive campaign as genocide, a move that must trigger a response toward Beijing that departs from business as usual. Although China’s significant global influence supports the assumption that effective levers to influence its behavior with respect to human rights issues are lacking, international attention and pressure have already caused Beijing to backpedal to a certain degree. This attention and pressure resulted from US-led efforts to rally international support coupled with US legislative and executive responses, including sanctions, visa restrictions, and trade restrictions. This policy memo outlines the nine areas of action that, performed in coordination with complementary actions of partners and allies, could alleviate the Uyghur human rights crisis, pressure China to reverse course, and ensure that the West and corporate America are not complicit in genocide.
Topic:
Foreign Policy, Genocide, Human Rights, and Religion
Political Geography:
China, Asia, United States of America, and Xinjiang

199. Resilient Aerial Refueling: Safeguarding the US Military’s Global Reach

Author:
Timothy A. Walton and Bryan Clark
Publication Date:
11-2021
Content Type:
Special Report
Institution:
Hudson Institute
Abstract:
The US military’s aerial refueling enterprise is a critical component of its ability to project power globally in defense of American interests. As the US military adopts new concepts to enhance its lethality and gain decision advantage, aerial refueling is increasingly necessary to enable a more distributed and dynamic force. However, with an aging inventory of tanker aircraft and stiff budgetary headwinds, it is an open question whether the US Air Force is capable of fielding the aerial refueling force that the nation needs. This study assesses the current and programmed US aerial refueling enterprise and has found that it likely would be unable to support US strategy and operational concepts at scale against peer adversaries such as the People’s Republic of China. However, the US military could address these shortfalls and improve the operational resilience of its aerial refueling enterprise by adopting new concepts, capabilities, capacities, and posture.
Topic:
Foreign Policy, Defense Policy, National Security, Science and Technology, and Military Spending
Political Geography:
China, Asia, North America, and United States of America

200. The Chinese Communist Party’s Economic Challenge to the Free World

Author:
Miles M. Yu
Publication Date:
04-2021
Content Type:
Policy Brief
Institution:
Hudson Institute
Abstract:
The Chinese economy and the philosophical roots of China’s system have greater implications for the United States economy than many assume. The one critical fact to understand about the People’s Republic of China is that it is a communist dictatorship ruled by a Marxist-Leninist party. The Party is dedicated to maintaining and strengthening its monopoly on all powers in the world’s most populous country and to mounting the most serious challenge to the free world since the Cold War. This policy memo will examine the Chinese economy’s distinct traits, how it operates, and why it thrives under a monopolistic government that exploits and challenges the global free market system, along with possible policy recommendations for the United States and its allies. Unlike most other communist countries, China has been afforded the benefits of a global free-market system and enjoys largely open access to international trade, capital markets, and advanced technologies. The paradox of a communist nation fully participating in a largely capitalist system has enriched and strengthened the Chinese Communist Party (CCP), to the point where Beijing poses a mortal threat to the United States and to the international free market economic system that has enabled the rise of the communist state. The West played a role in creating the current state of play. But too many conversations in the United States focus only on our own strategic thinking. In his historic speech at the Richard Nixon Library in July 2020, former Secretary of State Mike Pompeo aptly described the situation and how we got here: “Our policies—and those of other free nations—resurrected China’s failing economy, only to see Beijing bite the international hands that were feeding it.” As President Richard Nixon admitted in his later years, his initiative to open up China in 1972 might have created a Frankenstein.
Topic:
Foreign Policy, Communism, Economics, and Chinese Communist Party (CCP)
Political Geography:
China, Asia, and United States of America