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1. How Malaysian Politics Shaped Chinese Real Estate Deals and Economic Development

Author:
Guanie Lim
Publication Date:
06-2022
Content Type:
Working Paper
Institution:
Carnegie Endowment for International Peace
Abstract:
Iskandar Malaysia is the oldest and by far the most prominent economic corridor in Malaysia. Located in the southernmost state of Johor, the corridor came to host several real estate developments (such as Princess Cove and Forest City) involving multinational corporations (MNCs) from China almost immediately after the Belt and Road Initiative (BRI) was launched in 2013. On one level, the infrastructure-spending spree associated with the BRI helped boost Malaysia’s economy as Chinese real estate MNCs invested in Iskandar Malaysia to grow their overseas portfolios. However, their involvement in the corridor disrupted the existing dynamics between Malaysia’s central and local governments. Although these Chinese projects offered an opening for Johor’s state government to counter Putrajaya’s dominance in the economic corridor, some swiftly became a magnet for divisive electoral campaigning and voter anger. Combined with several socioeconomic issues, the discontent generated by these Chinese real estate projects contributed to the unexpected defeat of the long-ruling United Malays National Organization (UMNO) in Malaysia’s May 2018 general election. Chinese real estate MNCs have sought to adapt to these shifting dynamics, yet it is uncertain to what degree their adaptive strategies will bear fruit amid a looming real estate crisis back in China and other related issues. Ultimately, Chinese real estate investment has been both a tool and an enabler of efforts undertaken by various Malaysian stakeholders, rather than the all-powerful China-imposed juggernaut that some commentators on Malaysia’s development over the last two decades have tended to see. Despite the allure of lucrative real estate deals, it is equally important to recognize the potential pitfalls when local politics go awry. Events in Iskandar Malaysia demonstrate that it is politically unsustainable to push real estate projects that are too expensive for most local residents to afford.
Topic:
Politics, Entrepreneurship, Risk, Economic Development, and Real Estate
Political Geography:
China, Malaysia, and Asia

2. How Duterte Strong-Armed Chinese Dam-Builders But Weakened Philippine Institutions

Author:
Alvin Almendrala Camba
Publication Date:
06-2021
Content Type:
Working Paper
Institution:
Carnegie Endowment for International Peace
Abstract:
Chinese construction contracts and development finance have increased massively in recent years. According to many experts, these projects are largely transplants designed to offshore and export Chinese technology, labor, and policy designs to host countries. However, these views have little regard for important nuances of place, time, and politics, ignoring the degree to which host countries—such as local elites, members of civil society, and norms—shape project design, implementation, and results on the ground. Under the regime of President Rodrigo Duterte, political elites in the Philippines have pressed Chinese firms to adapt to some of their demands for political expediency on key infrastructure projects. This pattern is evident from the Kaliwa Dam and the Chico River Pump Irrigation Project—both of which have made substantial progress during Duterte’s rule. In particular, Manila has bypassed local social and environmental regulations and has paved the way for Chinese dam builders to break ground on projects quickly so as to strengthen the Duterte government’s political standing. Around the world, Chinese firms have been highly attentive to the will of local political elites, limiting or sometimes completely avoiding relationships with opposition elites and ties to civil society members. Philippine politics is turbulent. Projects supported by the Duterte regime today might not have the same traction under his successor. So while these Chinese concessions have earned favor with Duterte and his allies, such tactics may prove unsustainable over the long term and could easily spur future resentment against China among local communities marginalized by this decisionmaking. In sum, it is Filipinos, not Chinese actors, who mostly have set the agenda on these major infrastructure projects, except on a few specific contractual terms.
Topic:
Development, Politics, Infrastructure, Rodrigo Duterte, and Construction
Political Geography:
China, Philippines, and Asia-Pacific

3. Reform in Syria: Steering between the Chinese Model and Regime Change

Publication Date:
07-2006
Content Type:
Working Paper
Institution:
Carnegie Endowment for International Peace
Abstract:
The issue of political reform in Syria straddles the line between reform of political institutions and removal from power of a particular regime and entails both domestic and external actors. The regime of Bashar al-Asad is under pressure from Syrian citizens who want a different political system and different leadership. He is also under pressure from the United States, which wants Syria to change its regional policy: stop intruding in Lebanese affairs, reduce support of Palestinian groups, and make a bigger effort to prevent infiltration of radical Islamists into Iraq. As a result, it is impossible to separate completely a domestic process of political reform from the external pressures. The two are entangled to a much greater extent than in any other country in the region except Iraq, and the analysis that follows reflects this entanglement.
Topic:
International Relations, Politics, and Regime Change
Political Geography:
China, Iraq, Middle East, Asia, and Syria

4. Judicial Reform in China: Lessons from Shanghai

Author:
Veron Mei-Ying Hung
Publication Date:
04-2005
Content Type:
Policy Brief
Institution:
Carnegie Endowment for International Peace
Abstract:
The George W. Bush administration in September 2002 laid out in the “National Security Strategy of the United States” its strategy toward China: “We welcome the emergence of a strong, peaceful, and prosperous China.” During a trip to Asia in March 2005, Secretary of State Condoleezza Rice adopted a similar phrase to welcome “the rise of a confident, peaceful, and prosperous China.”
Topic:
International Relations and Politics
Political Geography:
United States, China, Shanghai, and Asia

5. Deterring Conflict in the Taiwan Strait: The Successes and Failures of Taiwan's Defense Reform and Modernization Program

Author:
Micheal D. Swaine
Publication Date:
07-2004
Content Type:
Policy Brief
Institution:
Carnegie Endowment for International Peace
Abstract:
THE TAIWAN STRAIT IS ONE OF THE TWO PLACES in the Asian Pacific where a major war could break out; the other place is the Korean Peninsula. For over fifty years, the People's Republic of China (PRC) and the Republic of China (ROC, or Taiwan) have maintained an uneasy peace across the Strait, punctuated by brief periods of limited conflict or by occasional military displays. The PRC insists that Taiwan is a part of China and asserts that the island must one day be reunited with the mainland. Until the early 1990s, the ROC government also viewed Taiwan as an integral part of China and insisted on eventual reunification, albeit under the Chinese Nationalist flag. But in recent years, with democratization opening the system to native Taiwanese, public support for independence has grown, as has the alarm in Beijing. As tensions have grown and the prospect of the resumption of a cross-Strait understanding regarding Taiwan's status has become more remote, stability has depended primarily on military deterrence. For China, such deterrence aims to prevent the final consolidation of Taiwan's separate status. For Taiwan (and the United States), it aims at preventing China from using force to compel reunification on Beijing's terms.
Topic:
Security and Politics
Political Geography:
United States, China, Taiwan, Beijing, and Asia