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1. US-China geoeconomic rivalry intensifies: A risk or an opportunity for European companies?

Author:
Jana Titievskaia
Publication Date:
11-2022
Content Type:
Policy Brief
Institution:
Finnish Institute of International Affairs
Abstract:
As the US and China balance between the pursuit of strategic security interests and ambitions to attain economic growth, novel sources of risk are emerging for globally active businesses, ranging from sanctions to export controls. The Biden presidency will offer only moderate respite from the escalation of this geoeconomic rivalry, even as US-China trade recovers in the aftermath of the pandemic. In the face of US-China rivalry, the EU and its member states have opted for the third way of “open strategic autonomy”, including a range of trade instruments that will allow the EU to support the competitiveness of its companies more effectively. European companies need to closely monitor their risk exposure in various transmission channels and stay attuned to unexpected opportunities that can materialise in the form of market entry possibilities and the development of new niches.
Topic:
Hegemony, Rivalry, Strategic Interests, and Competition
Political Geography:
China, Europe, Asia, North America, and United States of America

2. Turkey in Central Asia: Possibilities and limits of a greater role

Author:
Toni Alaranta and Kristiina Silvan
Publication Date:
01-2022
Content Type:
Policy Brief
Institution:
Finnish Institute of International Affairs
Abstract:
Turkey’s long-term search for strategic autonomy, shifting global power relations, and Central Asian governments’ desire to foster multi-vector foreign policies have prompted Turkey to successfully intensify its activities in Central Asia. From the 1990s onwards, Turkey’s activism in Central Asia has strengthened cultural, trade, and diplomatic relations. Its multilateral coordinating body, the Cooperation Council of Turkic Speaking States, is being further institutionalized into the Organization of Turkic States. Turkey’s potential for acquiring a greater role in the region is limited. Its economic engagement remains modest, and Central Asian states’ responses to the Taliban takeover in Afghanistan indicate that Russia and China remain the region’s preferred security partners. Although Turkey, China, Russia, and other external actors compete in Central Asia, no full-fledged confrontation has taken place in the region so far. Turkey’s new initiatives are unlikely to change this dynamic, as long as they are conducted in the spirit of inclusive multipolarity.
Topic:
Security, Foreign Policy, Strategic Interests, and Power
Political Geography:
Europe, Central Asia, Turkey, and Asia

3. Central Bank Digital Currencies and the implications for the global financial infrastructure: The transformational potential of Russia’s digital rouble and China’s digital renminbi

Author:
Maria Shagina
Publication Date:
01-2022
Content Type:
Policy Brief
Institution:
Finnish Institute of International Affairs
Abstract:
The launch of Central Bank Digital Currencies (CBDC) not only revolutionizes the international financial system, it also represents an opportunity to minimize the exposure to the US dollar transactions and avoid US oversight. China enjoys a first-mover advantage, as it became the first major economy to launch a CBDC. Following in Beijing’s footsteps, Russia is at the forefront of advancing its digital currency project. As US-sanctioned countries, Russia’s and China’s motivation extends beyond transaction costs reduction and financial inclusion: the governments seek to reduce their dependence on the US dollar and mitigate sanctions risks. In the short term, the US dollar’s international status remains unrivalled. No currency is well-positioned to displace the greenback as a reserve currency. In the long term, CBDCs could eliminate the need for third-party intermediaries and allow cross-border transactions that take place outside of the US-led financial system. This would hamper the US’s ability to use sanctions as a geoeconomic tool and oversee their extraterritorial enforcement.
Topic:
Finance, Digital Economy, Central Bank, and Banking
Political Geography:
China and Asia

4. Southeast Asian democracy: Democratic regression or autocratic hardening?

Author:
Bart Gaens and Olli Ruohomäki
Publication Date:
06-2022
Content Type:
Policy Brief
Institution:
Finnish Institute of International Affairs
Abstract:
In line with a global trend, Southeast Asia faces an overall decline in levels of democracy, raising the question of whether democratic progress in the region has reached its limits. Most member states of the Association of Southeast Asian Nations (ASEAN) have not seen a “wave of democratization” after a long period of authoritarianism and suppression. Instead, the region has been characterized by remarkably resilient “flawed” democracies and relatively stable autocratic regimes, in some cases in spite of strong economic growth and social development. Democracy, or rather autocracy with some democratic elements, has been ebbing and flowing. Most Southeast Asian flawed democracies and autocracies alike are engaged in the politics of hedging, seeking cooperation with multiple partners. These include authoritarian China, which is not interested in the political systems of the countries it deals with, but also the US, the EU and Japan. Pragmatism is inherent in the way ASEAN polities are managed. As long as living conditions improve or at least remain stable, there is little appetite for Western-style democracy that places participatory politics and human rights at the centre of societal development.
Topic:
Governance, Authoritarianism, Democracy, and Leadership
Political Geography:
Asia and Southeast Asia

5. Russia’s connectivity strategies in Eurasia: Politics over economy

Author:
Kristiina Silvan and Marcin Kaczmarski
Publication Date:
06-2022
Content Type:
Policy Brief
Institution:
Finnish Institute of International Affairs
Abstract:
Russia has been attempting to strengthen connectivity within Eurasia since the early 2000s as a part of its policy to “pivot to the East”. Yet due to limited resources and political will, the tangible effects of its connectivity strategy have remained limited. The Russian Far East would greatly benefit from an improved connectivity infrastructure, given its proximity to Asian markets and the abundance of natural resources in the region. However, the attempts to accelerate regional socio-economic development by strengthening the region’s connectivity have failed to make a difference. In post-Soviet Central Asia, Russia adopted a passive approach to connectivity in the 1990s and 2000s, which meant focusing on maintaining and protecting the links inherited from the Soviet Union. It was only the pressure of external actors – both China and the West – that prompted Moscow to take a more active stance in the region in the 2010s. The launch of China’s Belt and Road Initiative pushed Russia to promote its own grand vision of trans-continental connectivity, the Greater Eurasian Partnership, designed to reaffirm Moscow’s great-power status and its equal standing with China. While it lacks economic and administrative foundations and its implementation is highly implausible, it has fulfilled a symbolic role as Russia’s grand connectivity project for Eurasia.
Topic:
Economics, Infrastructure, Belt and Road Initiative (BRI), Rivalry, and Resource Allocation
Political Geography:
Russia, China, Europe, and Asia

6. China’s Belt and Road Initiative: Successful economic strategy or failed soft-power tool?

Author:
Jyrki Kallio
Publication Date:
09-2022
Content Type:
Policy Brief
Institution:
Finnish Institute of International Affairs
Abstract:
The Belt and Road Initiative (BRI) is part of China’s efforts to integrate its neighbouring countries into its economic sphere, thus increasing China’s security in its immediate neighbourhood while facing an increasingly hostile international environment due to its rivalry with the US. In reality, the BRI has evolved into an umbrella term for various infrastructure and development projects with no unified object or strategy. The projects should, in principle, increase goodwill towards China, and correspondingly boost its influence, but in practice they are mainly aimed at economic benefit. The results of the BRI, especially as a soft-power tool, are ambiguous. Its ideational basis is thin, consisting mainly of China’s critique towards the “hegemony of the West”. This reduces the BRI to a hollow slogan with little appeal apart from the pragmatic gains. However, the BRI is here to stay for the duration of Xi Jinping’s rule because China’s foreign policy is often driven by prestige. The BRI is enshrined in the Communist Party’s Constitution in order to both add weight to the initiative and to increase the Party’s prestige with its success, modest as it may be.
Topic:
Economics, International Trade and Finance, Infrastructure, Hegemony, and Belt and Road Initiative (BRI)
Political Geography:
China and Asia

7. Leadership successions in Central Asia: Elite pacts, dynasties and revolutions

Author:
Kristiina Silvan
Publication Date:
11-2022
Content Type:
Policy Brief
Institution:
Finnish Institute of International Affairs
Abstract:
Despite their shared communist past, similarities in political systems, and record of “authoritarian learning” from one another, there is significant diversity in how Central Asian regimes have prepared and undergone leadership successions. Authoritarian states, particularly those led by personalist rulers, face instability during moments of leadership succession. Sometimes the turbulence develops into a full-blown succession crisis characterized by increased elite contestation and popular protests. In Turkmenistan and Uzbekistan, personalist leaders died in office and the elites chose a successor after negotiations. Still, most regional leaders have sought to pass power gradually to a designated successor, either a familial or non-familial member of the elite, with varying degrees of success. China and Russia have been directly and indirectly involved in the transitions. Moscow has been particularly involved in the short-term de-escalation of succession crises in Kyrgyzstan in 2020 and Kazakhstan in 2022. Russia’s war in Ukraine has changed the context of Central Asian successions, which means that future transitions will take place in uncharted territory.
Topic:
Governance, Leadership, Succession, and Transition
Political Geography:
Central Asia and Asia

8. Myanmar’s Generals Recoup: The recurrence of military-defined “disciplined democracy”

Author:
Bart Gaens
Publication Date:
02-2021
Content Type:
Commentary and Analysis
Institution:
Finnish Institute of International Affairs
Abstract:
Myanmar’s generals cited election fraud as the motive behind their coup. However, as the country’s transition during the past decade has been rooted in military-orchestrated “disciplined democracy”, the real drivers behind the coup are likely different.
Topic:
Authoritarianism, Elections, Democracy, Coup, and Military Government
Political Geography:
Asia, Burma, and Myanmar

9. EU-China Investment Agreement: the EU’s Balancing Act between Values and Economic Interests

Author:
Saila Turtiainen
Publication Date:
03-2021
Content Type:
Commentary and Analysis
Institution:
Finnish Institute of International Affairs
Abstract:
The ratification process for the EU’s new investment agreement with China is expected to be very difficult. Although the aim is to improve EU-China relations, the process of getting the agreement approved in the EU will end up causing further tensions with China as the EU tries to strike a balance between promoting its values and economic interests.
Topic:
International Cooperation, International Trade and Finance, European Union, Conflict, and Economic Cooperation
Political Geography:
China, Europe, and Asia

10. Russia's Redefined View on Strategic Stability: A Security Dilemma in Northern Europe?

Author:
Jyri Lavikainen
Publication Date:
04-2021
Content Type:
Policy Brief
Institution:
Finnish Institute of International Affairs
Abstract:
Te concept of strategic stability has traditionally been associated with a stable nuclear relationship between leading nuclear powers, the US and USSR/Russia. Teir last commonly agreed defnition of the concept in 1990 formed the basis of the START negotiations, defning strategic stability as a nuclear relationship, where neither side has an incentive to attempt a disarming strike. In 2016, Russia and China suggested replacing the concept of strategic stability with ‘global strategic stability’ by arguing that the conventional defnition of strategic stability as a military category concerning only nuclear weapons was outdated.1 Instead, they seek to redefne strategic stability as a concept con- cerning the state of great-power relations, with both political and military categories, the military category being the focus of analysis in this paper.
Topic:
Military Strategy, Conflict, Strategic Stability, Rivalry, and Strategic Interests
Political Geography:
Russia, China, Europe, and Asia

11. The Geostrategic Interests of External Actors in Myanmar: A Struggle for Influence in a Country in Turmoil

Author:
Bart Gaens and Olli Ruohomäki
Publication Date:
05-2021
Content Type:
Policy Brief
Institution:
Finnish Institute of International Affairs
Abstract:
Countries with geostrategic stakes in Myanmar have reacted in different ways to the military coup of 1 February 2021 and its aftermath, which have resulted in over 750 casualties thus far. China benefits from stability in Myanmar but, given its vast geoeconomic and geopolitical interests as Myanmar is a vital part of the BRI, will not criticize the military. Thailand, itself a military-dominated pseudo-democracy, is certainly reluctant to exert pressure. India focuses on its own national interest and prioritizes the partnership with its strategically important neighbour. Japan applies quiet diplomacy and aims to function as mediator, while at the same time protecting its business interests. The EU and US have sanctions in place, but history shows these do not have much effect on the junta. Russia’s presence is not significant, but Moscow uses arms sales to establish a foothold in the Indo-Pacific. ASEAN aims to mediate with Indonesia in the lead, and even achieved a broad consensus on the situation in Myanmar, but likely remains too divided to deliver lasting change on the ground. Given the divergent geostrategic interests of external actors in Myanmar, a concerted effort to achieve change in the country is unlikely. Hence, sustained change has to come from within the country.
Topic:
Authoritarianism, Democracy, Coup, Military Government, Strategic Interests, and Influence
Political Geography:
Asia, Burma, and Myanmar

12. Water and Fire at Kyrgyz-Tajik Border: Ferghana Valley’s Security Environment could take a Turn for the Worse

Author:
Kristiina Silvan
Publication Date:
05-2021
Content Type:
Commentary and Analysis
Institution:
Finnish Institute of International Affairs
Abstract:
The latest clash between Tajikistan and Kyrgyzstan casts a shadow over the region’s already fragile security situation. The simmering conflict in Central Asia’s Ferghana Valley could potentially escalate into an open armed conflict between the two states.
Topic:
Security, Environment, Territorial Disputes, Water, and Conflict
Political Geography:
Central Asia, Asia, Kyrgyzstan, and Tajikistan

13. The US is Refocusing its Foreign Policy Priorities on the Indo-Pacific: Recalibrating Alliance Politics in a Pivotal Region

Author:
Bart Gaens
Publication Date:
09-2021
Content Type:
Commentary and Analysis
Institution:
Finnish Institute of International Affairs
Abstract:
The United States under President Joe Biden is strengthening efforts to constrain China in the Indo-Pacific region. At least for now, a new US focus on the region is aimed primarily at reinforcing “minilateral” alignments, potentially at the expense of the EU and its member states.
Topic:
Foreign Policy, Diplomacy, Regional Cooperation, Hegemony, Multilateralism, and Influence
Political Geography:
Asia, North America, United States of America, and Indo-Pacific

14. China’s Foreign Policy at the Centennial of the Communist Party: Prestige Above All

Author:
Jyrki Kallio
Publication Date:
09-2021
Content Type:
Policy Brief
Institution:
Finnish Institute of International Affairs
Abstract:
Chinese external and internal politics have manifested increased ideologization in recent years, presumably laying the groundwork for the Communist Party’s 100th anniversary this year. The trend is likely to continue at least until the completion of the 20th Party Congress in 2022. In China’s foreign policy, this ideologization has taken the form of increased emphasis on the realization of China’s “Grand Rejuvenation” and heightened sensitivity to anything that might stand in its way. This is in line with the Party’s historical narrative emphasizing the “century of humiliation” and the ensuing efforts to curb China’s rise. The resulting prestige-driven foreign policy has proved harmful to China’s external image. An easing of Chinese politics may thus be conceivable once the Party has left the current sensitive times behind to its satisfaction. Countries with vital economic ties to China, and which depend at the same time on continued US support in security policies, have little choice but to continue tightroping for a few more years at least.
Topic:
Foreign Policy, Diplomacy, International Cooperation, Hegemony, Conflict, and Economic Cooperation
Political Geography:
China and Asia

15. China and Geoeconomic Dynamics in Central Asia: Balancing Global Strategies, Local Interests and Multiple Partners

Author:
Aliya Tskhay
Publication Date:
10-2021
Content Type:
Working Paper
Institution:
Finnish Institute of International Affairs
Abstract:
Central Asia is at the core of China’s ambitious Belt and Road Initiative (BRI), which promises to bring connectivity, trade, and improved infrastructure, as well as overall economic development to the states of the region. Yet beyond the official rhetoric, China is promoting its power through geoeconomic means. This paper looks at areas of cooperation (energy, infrastructure, trade, and finance) and identifies the ways in which China is involved with the region. Through a combination of loans, investments, and infrastructure projects, the research shows how China ‘binds’ the region closer to itself and ‘wedges’ out alternative partners. It also shows how Central Asian states utilise the funding within the BRI framework for national development programmes, whilst navigating avenues for mitigating the establishment of a dependent relationship with China. The paper concludes with some policy implications for China, Central Asia, and the wider region.
Topic:
Development, International Trade and Finance, Infrastructure, Hegemony, Belt and Road Initiative (BRI), and Strategic Interests
Political Geography:
China and Asia

16. Russian policy towards Central Asia 30 years after the collapse of the Soviet Union: Sphere of influence shrinking?

Author:
Kristiina Silvan
Publication Date:
11-2021
Content Type:
Policy Brief
Institution:
Finnish Institute of International Affairs
Abstract:
Russia views Central Asia as its sphere of influence and attempts to keep the five post-Soviet countries, Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, and Uzbekistan, in its geopolitical orbit. Central Asian countries’ dependency on Russia is decreasing, albeit at a different pace in different policy spheres and geographical areas. This variation depends upon factors ranging from Moscow’s priorities, the presence and capability of Russia and other actors, and Central Asian domestic issues. Russia’s policy in Central Asia is rooted in bilateral relations, but from the early 2000s onwards, Moscow has sought to integrate the region’s states into multilateral organizations that it leads, primarily in the spheres of economy and security. Russian influence in the region is greatest in the security sphere and, due to the rise of China, smallest in the economic sector. People-to-people contacts remain strong as a result of the common Soviet past and current migration flows. Central Asian countries share Russia’s authoritarian outlook on politics. Russia remains a powerful player in Central Asia, but Moscow’s lack of a forward-looking strategy and its current great-power posturing threaten its dominance in the future.
Topic:
Foreign Policy, Hegemony, Post-Soviet Space, and Influence
Political Geography:
Russia, Europe, Central Asia, and Asia

17. China’s responsibility for the Covid-19 pandemic: An international law perspective

Author:
Katja Creutz
Publication Date:
06-2020
Content Type:
Working Paper
Institution:
Finnish Institute of International Affairs
Abstract:
The coronavirus pandemic has roiled international relations. The huge global toll of the pandemic, both in terms of deaths and economic implications, has raised the question of Chinese responsibility. This Working Paper analyzes China’s responsibility for Covid-19 under international law. In order for state responsibility to arise, China must have committed an internationally wrongful act. The conduct must be attributable to China and must constitute a breach of its international obligations. An analysis of the timeframe concerning the main measures undertaken by Chinese authorities at different government levels shows a lag in reporting the outbreak to WHO according to the International Health Regulations. Hence, there appears to be a case for injured states to invoke China’s responsibility. The prospects for implementation are nevertheless bleak. A tacit understanding seems to prevail among states not to pursue the spread of pathogens in terms of legal responsibility or litigation. Whether major power rivalry or the enormous costs of the pandemic will change this non-confrontational tradition of dealing with pathogens remains to be seen.
Topic:
Leadership, Public Health, Pandemic, and COVID-19
Political Geography:
China and Asia

18. Great-power competition and the rising US-China rivalry: Towards a new normal?

Author:
Bart Gaens and Ville Sinkkonen
Publication Date:
09-2020
Content Type:
Working Paper
Institution:
Finnish Institute of International Affairs
Abstract:
The United States and China are posited to be at the epicenter of an emerging and – by most accounts – intensifying rivalry. This report delves into the theoretical underpinnings as well as the geostrategic and geo-economic dynamics driving this great-power competition. It explores future prospects for contestation and engagement in key issue areas, such as arms control, trade and sanctions. The chapters in this volume also examine the Indo-Pacific as the immediate regional frontline of the unfolding great-power contest and explore the role that Europe has to play in this game. As the world is crossing the threshold into a new age of great-power competition, the debate on the US-China rivalry reveals the complex and contested nature of the meanings, causes, policy implications and future prospects of what is set to become the “new normal” in global politics.
Topic:
Hegemony, Geopolitics, Conflict, and Rivalry
Political Geography:
United States, China, Asia, and North America

19. Turkey and the post-pandemic world: What kind of revisionism?

Author:
Toni Alaranta
Publication Date:
09-2020
Content Type:
Working Paper
Institution:
Finnish Institute of International Affairs
Abstract:
This study analyzes Turkish foreign policy narratives generated by the Covid-19 pandemic, and their intellectual and political context provided by Western debates. The approach is based on the assumption that the narratives about the pandemic provide an interesting window through which to observe the long-term fears and hopes concerning international politics in Turkey. The study utilizes Steven Ward’s conceptualization of distributive and normative revisionism as a theoretical framework for analyzing Turkey’s increasingly assertive foreign policy. It also discusses the analytical limits of this concept by introducing the idea of revisionism as a familiar narrative trope in Western International Relations scholarship. The study demonstrates that while Turkey remains loosely attached to its traditional commitment to defend the existing order, it increasingly expresses its dissatisfaction within that order, sometimes pushing it to the limits, and taking action that could even be defined as normative, or radical, revisionism.
Topic:
Foreign Policy, Public Health, Pandemic, COVID-19, and Revisionism
Political Geography:
Europe, Turkey, and Asia

20. Iran’s foreign policy: Buying time until the US presidential elections

Author:
Mariette Hagglund
Publication Date:
10-2020
Content Type:
Working Paper
Institution:
Finnish Institute of International Affairs
Abstract:
A key issue dominating Iran’s foreign policy agenda is the future of the Iran nuclear deal with regard to the next US president. Non-state armed groups mark the core of Iran’s leverage in the region, but Iran is currently looking into diversifying its means of influence. Although Iran considers its non-aligned position a strength, it is also a weakness. In an otherwise interconnected world, where other regional powers enjoy partnerships with other states and can rely on external security guarantors, Iran remains alone. By being more integrated into regional cooperation and acknowledged as a regional player, Iran could better pursue its interests, but US attempts to isolate the country complicate any such efforts. In the greater superpower competition between the US and China, Iran is unlikely to choose a side despite its current “look East” policy, but may take opportunistic decisions.
Topic:
Security, Foreign Policy, Military Strategy, and Elections
Political Geography:
United States, China, Iran, Middle East, Asia, and North America