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1. Immaterial Competition: Rethinking the Roles of Economics and Technology in the US-China Rivalry

Author:
Arthur Tellis
Publication Date:
05-2022
Content Type:
Special Report
Institution:
Hudson Institute
Abstract:
The US-China rivalry is likely to be the fulcrum around which international affairs are structured in the twenty-first century, akin to the Cold War from 1947 to 1991. This rivalry, like its predecessor, emerges from divergent geopolitical interests and imperatives. While the Chinese Communist Party’s aims are many, various, and subject to change, they include its continued control of the Chinese State; economic and technological modernization and leadership; internal order; complete union with Taiwan on Beijing’s terms; certain territorial concessions from its neighbors; and the disestablishment of security arrangements across the Indo-Pacific that it views as threatening and trammeling. The latter three are in direct conflict with US interests and imperatives in the Indo-Pacific: prohibiting China’s unilateral modification of the status quo vis-à-vis Taiwan; preserving the sovereignty and territorial integrity of its allies and partners; and maintaining its military partnerships and presence in the region. These antithetical interests animate a larger struggle for hegemony in the Indo-Pacific and serve as the terms on which this contest will be decided. Explanations of the rivalry as an ideological contest or a competition born from competing economic interests are less compelling by comparison. The United States and China are motivated to an extent by ideological imperatives, but these do not appear to propel or serve as the central stakes for the rivalry as much as they affect each’s disposition toward the other. Long-standing trade, investment, and commercial disputes and competition, meanwhile, are not so substantial that they motivate the rivalry. While these issues are impactful to niche communities and conspicuous to national policymakers, they are not particularly consequential for national prosperity. The logic of competition, trade, and globalization, in fact, suggests that the US-China commercial relationship is mutually beneficial, notwithstanding each’s concerns with the other’s economic statecraft and market-leading firms. In their geopolitical rivalry, there are a few key forces or contests of interest: path dependence, regime continuity, prudent strategy, third-party alignments, and the balance of military forces in the Indo-Pacific. Each affects the United States’ and China’s ability to achieve their ends and shapes their rivalry. Economic and technological statecraft, by contrast, is largely peripheral to these ends as it does not effectively advance political objectives relevant to territory, borders, security architectures, and national defense. That is not to suggest that economic and technological factors are irrelevant, however; they shape, constrain, and advantage the United States and China across their rivalry’s key forces and contests of interests. Particularly noteworthy are economic and technological factors’ impact on the military balance. Tradition and intuition hold that nations with bigger and more advanced economies are better postured to resource, procure, and manufacture military equipment and can therefore generate greater military power. In the case of the US-China military competition, however, total military power is less relevant than the specific military balance in the Indo-Pacific, in which the distribution and strength of forces in the theater, the capability and reliability of key materiel inputs of outsized importance, and the operational concepts and tactics with which each’s military fights are more important. Total military power—and in particular greater military equipment—matters on the margin, of course, if only because the party with the greater mass and quality of materiel will be able to retain more forces in the Indo-Pacific, maintain more of these key materiel inputs, and develop novel operational concepts and tactics tailored to their superior materiel. Neither the United States’ nor China’s total economic production, public balance sheet, high-technology commercial firms, and scientific production are likely to provide a decisive or lasting advantage on this count. Each country’s economy can support substantially greater military spending, limiting the extent to which one can derive an advantage from the other’s more binding constraints. The capacity and maturity of each country’s defense industrial base is of greater relevance, but these are flexible quotients that investment can improve. This elasticity of defense production suggests that microeconomic endowments may be binding in the short run but variable in the longer run, meaning that policy choices—rather than existing economic endowments—constrain military production. Technological endowments, informing each country’s capacity for broad innovation, are of similarly bounded importance because military technology is somewhat narrow and other factors, such as military procurement processes and inflexibility in concepts of operation, limit the extent to which superior technology translates into military advantage. The fundamental result of this argument is that the concerns that propel the emerging US-China economic and technological competition are ultimately not all that relevant to the matters at the core to their rivalry and to the instruments of national power most relevant to these issues. The US should therefore be wary of policies ostensibly demanded by economic and technological competition and may find its interests better served by limiting its rivalry with China to military competition driven by its core geopolitical interests.
Topic:
Economics, Science and Technology, Strategic Competition, and Rivalry
Political Geography:
China, Asia, North America, and United States of America

2. 'Win Without Fighting': The Chinese Communist Party's Political and Institutional Warfare Against the West

Author:
John Lee and Lavina Lee
Publication Date:
05-2022
Content Type:
Special Report
Institution:
Hudson Institute
Abstract:
When compared to Western forms of diplomatic conversation and strategic discussion, phrases emanating from Beijing and the Chinese Communist Party (CCP) can appear peculiar, platitudinous, and so ambiguous as to be devoid of practical content. China’s paramount leader Xi Jinping speaks frequently about a ‘community of shared future,’ a ‘common destiny for mankind’ as part of his ‘China dream,’ or of his country’s ‘rejuvenation.’ He promises to pursue and achieve a ‘new type of great-power relations’ with the United States that will ‘expand the converging interests of all and build a big global family of harmony and cooperation.’ Yielding to the temptation to dismiss these phrases as glib and meaningless or as empty promises to the world would be a serious mistake. Emerging as the victorious side after the world was reshaped in the aftermath of the Second World War, and, more recently, the formal end of the Cold War, the United States and its allies have generally enjoyed dominance in all forms of power. The challenge and threat of China is largely understood in the context of its increase in material power, which is relatively easy to understand and quantify. In contrast, far less attention is being paid to non-material power, which is, admittedly, more nebulous and difficult to assess. However, China’s focus has been on relentlessly building its ‘comprehensive national power’ (CNP), that is, the sum-total of its powers and strengths—economic, military affair, science and technology, education, and resource—and influence. Thus, CNP encompasses both material and non-material power, and China’s buildup of both of these forms of power best explains its strategic and diplomatic successes. Chinese ‘rejuvenation’ is also not just about building GDP or having the world’s largest naval fleet. Rather, the CCP’s vision of a ‘community of shared future for mankind’ is very much about displacing the dominance enjoyed by the US and other advanced democracies in shaping global discourse and conversations, norms and standards, and influence within and through institutions. The advanced democracies have taken these less obvious forms of power for granted, a complacency that Beijing has exploited. As the CCP recognizes, “In the final analysis, the rise of a great power is a cultural phenomenon. It (that power) must be accepted by the international community. Be accommodated by the international system, rely on the international system, and be recognised by international norms.” To be sure, there is a rich and growing literature on the CCP’s various information, influence, and institutional resources and activities, and this report does not seek to reproduce the excellent work already in the public domain. Rather, it begins from the uncomfortable but growing realization that the CCP believes it has long been at war with the US and its allies, even though kinetic force has been used in only a few instances. It looks at why this war is being waged, what the hallmarks of success for Beijing look like, and how the use of non-material strategies in the form of political and institutional warfare complements and augments China’s better known material approaches in the CCP’s determined attempts to win this ongoing war or struggle. The report seeks to emphasize that, in understanding the challenge and threat of China, political and institutional warfare should not be treated as optional or interesting adjuncts to traditional notions of warfare or that their effects are peripheral to core strategic and even military objectives. On the contrary, non-material approaches are essential to the Chinese strategy and have real-world outcomes that are often the same ones that the use of force or economic coercion is intended to achieve. Just as the CCP views comprehensive power as encompassing material and non-material elements, its notion of waging and winning a war may or may not include a military element. We need to do the same when countering, deterring, and, if necessary, defeating Chinese strategies and actions. Moreover, the CCP’s approach is not just about putting its views forward in overt or veiled ways in the hope that it will change our minds about various issues. Instead, Beijing’s strategy is much more proactive and profound than that. The CCP’s political and institutional approaches are about fundamentally changing and shaping even the way we begin to think about or analyze an issue or what we perceive to be its ‘first principles.’ It is designed to shape the way we talk (or do not talk) about an issue, the presumptive and analytical frameworks we employ to do so, and the discourse regarding it that is accepted and deemed acceptable. At first glance, such a deeply cognitive approach might seem fanciful and impossible to implement. However, this report offers two recent case studies of instances where the CCP enjoyed considerable success in melding the material and the cognitive—with tangible and real-world results. This report then offers a summary of the real-world strategic effects and their impacts on the tactical decision-making of countries and their elites that should concern those in charge of our political, economic, military, and diplomatic policies and activities. In conclusion, it suggests some general responses to the CCP’s strategy, approach, and actions in these contexts.
Topic:
Foreign Policy, Politics, Economy, Institutions, Strategic Competition, and Chinese Communist Party (CCP)
Political Geography:
China, Asia, North America, and United States of America

3. Regaining the High Ground Against China: A Plan to Achieve US Naval Aviation Superiority This Decade

Author:
Bryan Clark and Timothy A. Walton
Publication Date:
04-2022
Content Type:
Special Report
Institution:
Hudson Institute
Abstract:
The U.S. Navy and Marine Corps face growing challenges ranging from China and Russia to regional threats such as Iran and North Korea, all of whom seek to undermine their neighbors’ stability and revise geopolitical relationships in their favor. Despite the impact of the COVID-19 pandemic and resulting economic downturn, each of these potential adversaries continued to improve its military capabilities, especially the number and reach of precision missiles able to strike U.S. allies and slow or prevent intervention by U.S. naval forces. Supported by commercial and military surveillance networks in every domain, weapons located on adversary territory are capable of threatening U.S. and allied ships, troop formations, and aircraft hundreds of miles away. U.S. naval aviation risks sliding into irrelevance unless Navy and Marine Corps leaders embrace organizational and investment changes that would enable more effective operational concepts against peer adversaries. To support the approaches, naval air forces will need greater reach, adaptability, and capacity, which this study proposes to address by changing the composition of carrier air wings and repurposing aircraft based ashore or on surface combatants and amphibious ships. Rebalancing naval aviation primarily involves force management, supported by additional procurement or modification of existing aircraft and payloads. This contrasts with prevailing Navy and Marine Corps plans, which sustain the existing force with minimal improvements while prioritizing development of next-generation capabilities. Not only does this approach fail to address the urgent nature of Russian and Chinese threats, but it also perpetuates the Navy’s expectation that revolutionary new capabilities will fix problems that demand tactical, organizational, or adaptive technical solutions. That strategy failed to deliver in the cases of the Littoral Combat Ship, Zumwalt-class destroyer, and Ford-class carrier. The F/A-XX program for a sixth-generation air superiority fighter-even if successful-is unlikely to transform naval aviation but could consume resources needed to address peer adversaries during the next decade. The shortfalls facing naval airpower against the People’s Republic of China are significant, but not insurmountable. Analysts have pronounced the death of the aircraft carrier several times since the end of World War II, but by exploiting its adaptability and mobility U.S. naval forces could remain relevant against peer opponents despite the emergence of long-range sensor and precision weapon networks. However, achieving the reach and capacity necessary to counter Chinese aggression in the Indo-Pacific will depend on carriers focusing on the mission only they can do sustainably and at scalelong-range counter-air and strike warfare. Navy and Marine Corps leaders have an opportunity to substantially improve the ability of maritime airpower to influence events in the Indo-Pacific. However, rebalancing naval aviation will require overcoming cultural, organizational, and programmatic hurdles. As described in this report, the necessary changes are possible and affordable, but only if naval leaders embrace the urgency of their challenges and do not continue to hope they can continue to push their problems-and solutions-out into the future.
Topic:
Defense Policy, National Security, Armed Forces, Military Affairs, Navy, and Strategic Competition
Political Geography:
China, Asia, North America, and United States of America

4. Chinese Political Warfare: The PLA’s Information and Influence Operations

Author:
John Lee
Publication Date:
06-2022
Content Type:
Special Report
Institution:
Hudson Institute
Abstract:
Material power is relatively easy to understand and quantify. Much less attention is given to nonmaterial power, which is admittedly more nebulous and difficult to assess. Even so, if power is broadly defined as the capacity to exercise or impose one’s will over another, then nonmaterial forms of power need to be taken seriously. This means understanding them, increasing one’s capacity to operationalize and exercise them, and institutionalizing their use to achieve national and security interests. The issue of nonmaterial power (especially information and influence operations, which will fall under the term political warfare) is arising because these forms of power have been taken for granted or have been largely ignored by the advanced democracies. Beijing is exploiting our complacency. There is already a rich and growing body of literature on the various information, influence, and institutional resources and activities of the Chinese Communist Party (CCP). This brief does not seek to reproduce the excellent work already out there
Topic:
Foreign Policy, Politics, Armed Forces, and Information Warfare
Political Geography:
China and Asia

5. Learning to Win: Using Operational Innovation to Regain the Advantage at Sea against China

Author:
Bryan Clark, Timothy A. Walton, and Trent Hone
Publication Date:
07-2022
Content Type:
Special Report
Institution:
Hudson Institute
Abstract:
The US Navy has spent the last decade attempting to pivot from efficiently maintaining the post–Cold War peace to effectively preventing and fighting a war against China or Russia. The circa-2000 Navy faced pervasive low-end threats from terrorists, insurgents, and regional opponents; today it is up against great power adversaries who used the past twenty years of relative stability to modernize and expand their fleets. The People’s Liberation Army (PLA) Navy is now larger than its American counterpart and is narrowing the US Navy’s capability advantages.1 Russia’s Navy, while smaller than that of the United States or China, boasts some of the most capable submarines in the world and hypersonic missile-equipped frigates.2 Proliferation of computing, sensing, material, and countermeasure technologies has leveled the playing field for military capability development. Building faster, more precise, stealthier, or smarter ships, aircraft, and weapons than opponents⎯the US Navy’s playbook since the Cold War⎯will no longer yield substantial or persistent advantages. The Navy will need to continue pursuing improved capabilities, but regaining and maintaining an edge against Chinese and Russian forces will depend as much or more on the US fleet establishing new operational concepts and tactics that exploit its strengths and its enemies’ vulnerabilities.3
Topic:
Defense Policy, National Security, Navy, Maritime, and Innovation
Political Geography:
China, Asia, North America, and United States of America

6. Understanding and Countering China's Approach to Economic Decoupling from the United States

Author:
John Lee
Publication Date:
08-2022
Content Type:
Special Report
Institution:
Hudson Institute
Abstract:
Many experts have highlighted American efforts to partially decouple from China. Yet China began pursuing a far more ambitious and comprehensive decoupling strategy vis-à-vis the United States long before Donald Trump entered the White House. This monograph examines China’s evolving approach to economic decoupling from the US. It makes the following arguments and conclusions. First, on the back of a preexisting mercantilist political economic structure, China has been explicitly pursuing economic decoupling from US and allied economies on Chinese terms for at least a decade. Second, while the US seeks to decouple some aspects of its economic activity from China, the latter seeks to dominate vast segments of the Asian economy and to decouple these segments from the US. This is the Chinese strategy and threat that the US vastly underappreciates. Third, the most important segments are the high-tech and high-value sectors. These sectors are where competition is the most consequential and where decoupling on US terms needs to occur. Fourth, China faces increasingly serious problems and obstacles regarding its decoupling strategy. Many of these arise out of structural weaknesses inherent in its political economy. The monograph is written to assist the Biden administration and those who follow it to possess a deeper understanding of: China’s actions and the motives behind them; China’s strengths, weaknesses, and vulnerabilities; and How the US and its allies can craft an evolving approach that better plays to their individual and collective strengths and advantages. China hopes the US and its allies will adopt a cautious, gradualist, and ineffective approach to countering Beijing’s strategy and objectives. The Chinese Communist Party knows the US and other advanced economies still have immense advantages despite clever Chinese messaging to the contrary. The US and its allies continue to enjoy considerable leverage and remain well placed to partially decouple from China on their preferred terms, but they need to act quickly, collectively, and decisively.
Topic:
International Relations, Foreign Policy, Defense Policy, Economics, and National Security
Political Geography:
China, Asia, North America, and United States of America

7. Chinese Information and Influence Warfare in Asia and the Pacific

Author:
John Lee
Publication Date:
09-2022
Content Type:
Special Report
Institution:
Hudson Institute
Abstract:
The People’s Liberation Army’s increasingly provocative and reckless activities in and around disputed zones such as Taiwan, the Senkaku Islands, and the South China Sea constitute only one means through which Beijing seeks to change key aspects of the regional order and compel others to “accept its interests.” However, the Chinese Communist Party and PLA are already decades into China’s information and influence war, which is designed to either weaken the will and capabilities of the United States and its allies should military conflict break out or, even better, eliminate the need for China to use military force to achieve its primary objectives (i.e., to “win without fighting”). In this context, the PLA is several steps ahead of the West; whereas Western analysts observe that the PLA is operating in the “grey zone,” the PLA is instead redefining and expanding this grey zone by manipulating how other countries think about it. With respect to this so-called grey zone, a cost-benefit analysis encompassing both objective and subjective elements typically determines an entity’s decision to respond with military force. For example, crafting narratives about the PLA’s military superiority, elite capture, ability to foment disunity within a target country, or normalization of coercion raises the West’s threshold of what provocations demand a military response—thereby expanding the grey zone within which the PLA and CCP are allowed to operate. Thus, Beijing is well ahead of the US and its allies in conceptualizing and operationalizing the use of military actions other than (kinetic) war to achieve political or strategic objectives. Finally, Asia and the Pacific constitute both the primary and most suitable region within which the Chinese can conduct information and influence warfare. These sub-regions’ unique material, geographical, ideational, and cultural characteristics render them especially suitable for Beijing to successfully wage political warfare. This policy memo describes the key objectives, strategies, and tactics of Chinese information and influence warfare developed and refined for use in the Asia-Pacific region. It focuses on maritime Southeast Asia and the Pacific, the areas of highest interest for the US, Australia, and their allies. Offering Singapore, Thailand, and the Solomon Islands as three pertinent case studies, the memo also lays the groundwork for an examination of effective US and allied counters to Beijing’s activities in these contexts, which follow-up reports in this series will present.
Topic:
Foreign Policy, Economics, National Security, Territorial Disputes, and Information Warfare
Political Geography:
China and Asia

8. An Assessment of US and Allied Information and Influence Warfare

Author:
John Lee
Publication Date:
10-2022
Content Type:
Special Report
Institution:
Hudson Institute
Abstract:
The first two policy memos in this series on Chinese information and influence warfare pointed out that the Chinese Communist Party (CCP) believes it is engaged in a perpetual “struggle” against the West and makes no fundamental distinction between wartime and peacetime. These reports also explained 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. Additionally, the previous memos argued that Asia and the Pacific are both the primary and most suitable subregions for the conduct of such Chinese activities. For the CCP and PLA, the region has unique material, geographical, ideational, and cultural characteristics that render it especially suitable for Beijing to successfully wage political warfare. Previous memos focused on the PLA’s Three Warfares framework, which consists of public opinion, psychological, and legal warfare. The Chinese intent is not merely to disrupt, confuse, or create mischief but to craft and control grand narratives. Doing so is extremely effective because these narratives determine how we reflexively interpret information and situations, what seems possible or not, what seems prudent rather than reckless, and what appears to be rational and in one’s long-term interest. Grand narratives determine how we think about a problem, issue, or development. In doing so, they predetermine the range of “reasonable” options and solutions that we believe are available. The previous memos also offered analysis and examples of how the CCP and PLA are using political warfare to achieve strategic objectives and to undermine the interests of the United States and its allies. Ominously, and in important respects, Beijing is not just “winning without fighting” but taking the more insidious approach of achieving strategic goals without victory.1 This third memo in the series examines US and allied information and influence doctrine and operations, especially by the defense establishments. In these democracies, the government has largely allowed the defense establishments to lead doctrine and capability for the information and influence elements of political warfare. The paper looks at the strengths and shortcomings of how the US and others conceive of information and influence warfare as it relates to responding to Chinese efforts in the region, as detailed in the first two memos. In doing so, it prepares the way for the fourth and final memo, which will look at specific policies and activities that the US and its allies could engage in to advance its interests and values and to counter some of the more damaging and insidious elements of Chinese political warfare in the region. The memo focuses on the US and, to a lesser extent, Australia because these Five Eyes countries are the most active and invested in understanding and countering Chinese information and influencing warfare efforts in the region. It is important to remember that such warfare is different in nature, purpose, and implementation from the usual diplomatic and soft-power efforts undertaken by democracies. The first memo argues as follows: Engaging in information and influence operations (or countering those by other countries) is a whole-of-government enterprise. [But it is] very different from the usual public messaging and soft power efforts led by diplomats and embassies. Engagement in this kind of political warfare is far more akin to missions undertaken by defense forces in that there must be specific objectives, tactics designed based on the objectives and resources available, and quick implementation by ready and well-resourced teams formed specifically for these tasks—even if this type of warfare is relentless and a protracted struggle.2
Topic:
Foreign Policy, Defense Policy, National Security, and Information Warfare
Political Geography:
China, Asia, North America, and United States of America

9. The Mixed Record of China’s Belt and Road Initiative

Author:
Thomas J. Duesterberg
Publication Date:
10-2022
Content Type:
Special Report
Institution:
Hudson Institute
Abstract:
China’s Belt and Road Initiative (BRI), a signature program of Xi Jinping, has had undoubted success in supporting Xi’s ambitions to reestablish China as a global leader while strengthening its mercantilist economy. Nonetheless, developed and developing countries are reconsidering the program because of its success—largely for China itself—and because of the global economic and political crises since the onset of the COVID-19 pandemic. BRI also has increasingly visible problems caused by its operating structure, prompting participants and developed countries whose geoeconomic and geopolitical interests are undermined by the program’s expansion to reassess it. Continued BRI growth is at best questionable and probably unlikely in the wake of growing pushback to the program as well as growing problems inside China itself.`
Topic:
Economics, Infrastructure, Belt and Road Initiative (BRI), and Xi Jinping
Political Geography:
China and Asia

10. 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

11. 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

12. 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

13. 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

14. The Atrocities Against Uyghurs and Other Minorities in Xinjiang

Author:
Nury Turkel
Publication Date:
05-2021
Content Type:
Policy Brief
Institution:
Hudson Institute
Abstract:
This memo is adapted from Nury Turkel’s testimony before the US House of Representative’s Committee on Foreign Affairs’ hearing on May 6, 2021, “The Atrocities Against Uyghurs and Other Minorities in Xinjiang.” He testified on behalf of the Uyghur Human Rights Project.
Topic:
Human Rights, Politics, Religion, Repression, Uyghurs, and Freedom
Political Geography:
China and Asia

15. A Just Response to Beijing’s COVID-19 Abuses

Author:
David Asher, Miles M. Yu, David Feith, Matthew Zweig, and Thomas DiNanno
Publication Date:
06-2021
Content Type:
Policy Brief
Institution:
Hudson Institute
Abstract:
Nearly 18 months after word of a deadly new virus began leaking out of Wuhan, China, the Chinese government’s response remains fundamentally hostile to international cooperation and transparency. Despite hundreds of offers of assistance, polite diplomatic entreaties, and demands for access to data by governments and health authorities across the globe, the world still knows far too little about COVID-19’s origin. As in a Dali painting, the clocks have melted but time has not stood still. China’s initial silencing and censoring of its doctors and scientists, followed by misinformation about COVID-19’s dangers—especially denials concerning the virus’s ability to be spread human-to-human, invisibly and asymptomatically—helped cost the world trillions of dollars and millions of lives. Whether one believes COVID-19 originated in a zoonotic host, a bat cave, a frozen food shipment, or a Wuhan lab’s dangerous “dual-use” research supporting undeclared bioweapons programs, the world needs answers from the Chinese Communist Party. These are answers Beijing won’t provide unless it faces a high price for refusing. For the good of public health and international security, the Biden administration and the Congress can unite in a coordinated, long-term response.
Topic:
Security, Health, Research, Transparency, Public Health, and COVID-19
Political Geography:
China and Asia

16. A Strategic US Approach to India’s COVID-19 Crisis

Author:
Husain Haqqani and Aparna Pande
Publication Date:
06-2021
Content Type:
Policy Brief
Institution:
Hudson Institute
Abstract:
The recent surge of COVID-19 in South Asia challenges India’s traditional ability to aid its smaller neighbors, a change that could, in turn, affect India’s influence in its competition with China. Unless India can recover from this surge with the help of allies like the United States, the pandemic could impact the Indo-Pacific’s geopolitical balance. In the past, India has often acted as a first responder across South Asia, helping other countries recover from natural disasters, and it initially occupied this role during the first months of the coronavirus pandemic, when it helped several South Asian and Indian Ocean region countries cope with the effects of the disease. India’s role as ‘first responder’ has been a key factor in its geopolitical power and in maintaining its role as a leader in the region. However, the resurgence of COVID-19 has jolted India at a time when democratic countries, including the United States, view India as critical to balancing China’s deepening influence cross Asia. South Asia, a region holding 23 percent of the world’s population, now accounts for over 11 percent of global COVID-19 cases and 6 percent of COVID-related deaths. The world’s largest democracy and second-most populous country, India alone currently accounts for over 84 percent of South Asia’s cases and deaths. For most of 2020, it appeared that India, thanks partly to a lockdown, had managed to avert a huge health crisis. During this time, India supported its immediate South Asian neighbors by supplying personal protective equipment and medications. However, the latest COVID-19 surge has created a crisis that has strained the Indian health infrastructure’s ability to meet. With more resources being diverted towards domestic ends, India’s ability to maintain friends and influence other countries has diminished, also potentially shrinking its sphere of influence. The US must therefore go beyond dealing with its own health crisis and also support India in dealing with its crisis. Instead of allowing China to consolidate its positions in Pakistan, Sri Lanka, Bangladesh, Nepal, and the Maldives, helping India restore its ability to provide assistance would be in the best interests of the United States and its allies.
Topic:
International Relations, Health Care Policy, Geopolitics, and COVID-19
Political Geography:
South Asia, India, Asia, and United States of America

17. Regaining the Digital Advantage: A Demand-Focused Strategy for US Microelectronics Competitiveness

Author:
Bryan Clark and Dan Patt
Publication Date:
07-2021
Content Type:
Special Report
Institution:
Hudson Institute
Abstract:
Microprocessors are a critical element of US national infrastructure and manage the country’s energy grids, transportation systems, and telecommunications networks. Without a reliable supply of computer chips and microelectronic components, most US economic and societal activity would grind to a halt. The semiconductor manufacturing process is largely concentrated in East Asia, where manufacturers could be subjected to pressure or coercion by the People’s Republic of China. The semiconductor supply chain, and its inherent resilience and security, could be strengthened by US government investment to bring more steps of the microelectronics production and assembly process onto US shores. To guide government policies, this study proposes a four-factor framework measured from the perspective of the US microelectronics customers and industry. These factors include: resilience of continued microelectronics supplies to the US market; assurance that US microelectronics reflect their intended design and are free of security vulnerabilities; the ability of the US microelectronics industry to meet current microelectronics demand, which shapes the ecosystem; and the value added from US firms, which supports future demand.
Topic:
International Relations, Defense Policy, National Security, Science and Technology, Communications, Infrastructure, Cybersecurity, and Military Spending
Political Geography:
China, Asia, North America, and United States of America

18. China’s Gambit for Total Information Dominance: A US-Australia Response

Author:
Patrick M. Cronin
Publication Date:
06-2021
Content Type:
Special Report
Institution:
Hudson Institute
Abstract:
This report assesses China’s comprehensive approach to information power and its implications for the U.S.-Australia alliance. The purpose of the report is threefold: to enlarge alliance awareness of China’s whole-of-society information challenge; highlight critical responses to this challenge from Canberra and Washington; and deepen alliance thinking regarding strategy and policy. The scale and scope of China’s information enterprise distinguishes it from other countries. Overt persuasion campaigns and covert influence operations are thoroughly researched, carefully choreographed, and uninhibited by concerns over individual or sovereign rights. Beijing goes beyond the use of information and instead seeks to achieve primacy in discourse power by weaponizing narrative in ways analogous to asymmetric military strategies. China uses a distinctive whole-of-society approach to building a dazzling wealth of data and information. Aided by intellectual property theft, forced technology transfers, decades of education training abroad, and other forms of acquiring information, China’s industrial policy goes beyond protectionist measures like subsidies. When Military-Civil Fusion is considered, this development has far more than economic and technological ramifications.
Topic:
International Relations, Science and Technology, Alliance, Data, and Information Technology
Political Geography:
China, Asia, Australia, and United States of America

19. Recommendations to Congress Concerning the Investigation into SARS-CoV-2's Origin

Author:
Thomas DiNanno
Publication Date:
08-2021
Content Type:
Policy Brief
Institution:
Hudson Institute
Abstract:
On May 26, 2021, President Biden announced that he had tasked the US Intelligence Community (IC) with providing a definitive review of SARS-CoV-2’s origins within 90 days, and that deadline is fast approaching. On the same day, CNN reported that the Biden administration had shut down another investigation into possible Chinese government dual-use biological programs being conducted at the Wuhan Institute of Virology (WIV) and its associated facilities. This investigation, which was being conducted by the Bureau of Arms Control, Verification and Compliance (AVC), had been initiated by Secretary Pompeo’s State Department in 2019, and its purpose was to answer the following questions: What role, if any, did the Chinese government’s virus research program play in its biological weapons program? Under the Biological Weapons Convention, any use and development of capabilities with potential dual uses (civilian and military) must be for peaceful purposes. Did this virus research program and the spread of SARS-CoV-2 represent a further Chinese violation of the Biological Weapons Convention (BWC)? Following the completion of the 90-day review, Congress should, over the short term, request that the AVC Bureau continue the investigation into SARS-CoV-2’s origin that President Biden interrupted and re-assigned to the Intelligence Community. In contrast to the US IC, the Bureau’s sole function is to assess other nations’ compliance with their international arms control obligations and, moreover, has the legal mandate to do so. Additionally, this memo contains recommendations concerning the US government’s compliance-and-verification function over the long term that would support policymakers and allow it to effectively fulfill its Congressional mandate.
Topic:
Health Care Policy, Pandemic, COVID-19, and Global Health
Political Geography:
China and Asia

20. Europe's China Chimera

Author:
Peter Rough
Publication Date:
02-2021
Content Type:
Policy Brief
Institution:
Hudson Institute
Abstract:
When Xi Jinping, the chairman of the Chinese Communist Party (CCP), dreams of global domination, he worries about one thing above all else: a hostile United States backed by its allies—and on the Eurasian landmass, the US has no more important ally than Europe. As a result, Xi has worked to weaken the transatlantic alliance through a two-pronged economic stratagem. First, under the guise of globalization, China has insinuated itself into the European economy, creating dependencies. Second, Beijing is manipulating those dependencies to hollow out and supplant Europe’s advanced economies. To give this deception cover, China has built a vast political network across Europe, from basic sympathizers to outright spies. Until recently, barely anyone took notice, but the financial crisis and forever wars of the past two decades, culminating in the election of Donald Trump as president of the United States, lured the self-confident Xi out into the open. During the coronavirus pandemic, China revealed an aggressive attitude toward Great Britain’s former colonies that shocked the United Kingdom. In the span of mere months, London shifted from cooperation to confrontation. In July, it became the first country in Europe to block the Chinese telecommunications giant, Huawei, from its next-generation networks. Germany, the continent’s most important country, still sees China as key to post-pandemic recovery and economic growth, however. Xi has exploited this attitude to strike an investment agreement with the European Union (EU), the chief purpose of which is to forestall a transatlantic approach under the new US president, Joe Biden. Together, the United States and Europe have unparalleled advantages against any competitor. Now is the time for cooperation, before Xi’s dreams become our collective nightmare.
Topic:
International Relations, Foreign Policy, and Chinese Communist Party (CCP)
Political Geography:
China, Europe, and Asia

21. Fear and Insecurity: Addressing North Korean Threat Perceptions

Author:
Patrick M. Cronin
Publication Date:
03-2021
Content Type:
Special Report
Institution:
Hudson Institute
Abstract:
Diplomacy with North Korea must factor in an understanding of the Kim regime’s fears and insecurity. Pyongyang’s military actions and negotiating gambits jeopardize the United States, South Korea, and other nations’ vital interests and policy goals. Accordingly, the study of North Korean threat perceptions—how Kim Jong-un thinks about the utility of force and about threats to his regime—is essential for averting strategic surprise and buttressing diplomacy. National security strategy should be systematic, a deliberate calculation about national capabilities to achieve crucial objectives. It should be infused with an understanding of other actors, both friend and foe. A coherent national security strategy begins with clear and realistic written objectives. If aims are vague, it will be difficult to concentrate resources and mobilize others around a common cause. Similarly, if a nation’s goals are too ambitious and surpass the prospects or means for success, then the national security strategy represents wishful thinking and will likewise be difficult to carry out. What is needed is a serious attempt to grapple with the world as it exists and to harmonize a nation’s crucial ends with existing means.
Topic:
International Relations, Foreign Policy, Diplomacy, and National Security
Political Geography:
East Asia, Asia, South Korea, North Korea, and United States of America

22. Does China Really Dominate Global Innovation? The Impact of China’s Subsidized Patent Application System

Author:
Jonathan Putnam, Hieu Luu, and Ngoc Ngo
Publication Date:
03-2021
Content Type:
Special Report
Institution:
Hudson Institute
Abstract:
Over the past two decades, China’s economy has grown impressively, while its patented innovations have grown at an even higher rate. But this patent application trend should not simply be accepted at face value. The Chinese government has subsidized patent applications as part of its overall domestic industrial policy agenda, which underlies China’s claim to have “won” the global innovation race, especially in next-generation technologies like 5G or AI. Our study shows that high rates of patenting do not necessarily mean dominance, or even leadership, among the world’s innovation economies. China’s recent announcement that it plans to end subsidies for patent applications by 2025 perhaps acknowledges that its policy is no longer necessary or desirable. In any case, uncritical reports of China’s innovation dominance, overall or in prominent high-tech sectors, should be viewed skeptically, especially by policymakers.
Topic:
Intellectual Property/Copyright, Law, Economy, and Innovation
Political Geography:
China and Asia

23. 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

24. 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

25. Ambition and Overreach: Countering One Belt One Road and Beijing’s Plans to Dominate Global Innovation

Author:
John Lee
Publication Date:
02-2020
Content Type:
Special Report
Institution:
Hudson Institute
Abstract:
The first monograph in this series, China’s Economic Slowdown: Root Causes, Beijing’s Response and Strategic Implications for the US and Allies, examined the structural problems in the Chinese economy that have led to a recent permanent slowdown after three decades of double-digit growth rates. The monograph focused on the political and economic costs of the slowdown and efforts to stabilize an economy that has poured far too much national wealth into commercially unproductive areas. Yet the Communist Party is not passively awaiting an unhappy economic fate in connection with its mounting imbalances and domestic economic dysfunction. In many respects, its leaders have been highly creative in seeking solutions that do not entail a weakening of the party’s hold on economic power. On the contrary, the party has been busily shaping and pursuing grand strategic policies such as the Belt and Road Initiative (BRI) and Made in China 2025 (MIC 2025) to solve or alleviate many of its domestic political-economic problems. This monograph, part two in the series, examines how the US and its allies can confront and counter these Chinese strategies and initiatives. It will do so by taking seriously the challenge they present and suggesting responses that take into account Chinese vulnerabilities and the points of leverage available to the US and its allies. This linking of China’s vulnerabilities and weaknesses, on the one hand, and its ambition and purpose with respect to its outward-focused policies, is essential for effective policy responses. If the domestic is not linked with the external, US policies are much more likely to become complacent, counterproductive, or susceptible to overreaching. In linking analyses of Beijing’s domestic political economy with its external policies, the monograph will challenge some enduring but incorrect grand narratives that play into the hands of the CCP.
Topic:
Foreign Policy, Economics, Science and Technology, and Trade
Political Geography:
China and Asia

26. A Global Survey of US-China Competition in the Coronavirus Era

Author:
Eric B. Brown, Patrick M. Cronin, H.R. McMaster, Husain Haqqani, Aparna Pande, Satoru Nagao, John Lee, Seth Cropsey, Peter Rough, Liselotte Odgaard, Blaise Misztal, Douglas J. Feith, and Michael Doran
Publication Date:
05-2020
Content Type:
Special Report
Institution:
Hudson Institute
Abstract:
The outbreak of the novel coronavirus has introduced a series of new stresses and factors in the US-China relationship. While the world has struggled to contain the pandemic and its tragic repercussions, the People’s Republic of China has used the outbreak to launch a global campaign of misinformation, further its economic coercion through the Belt and Road Initiative, and continue military expansion efforts in the South China Sea. China’s attempt to exploit the pandemic for political, strategic, and economic gain is problematic in the current environment, yet it is consistent with, and a continuation of, China’s long-term strategy. This report offers a global survey and assessment of attempts by the Chinese Communist Party (CCP) to expand its influence, including by exploiting the pandemic. As the United States and its allies focus on combatting the virus and salvaging their economies, there is an opportunity to better understand China’s strategy and develop a unified response.
Topic:
International Relations, Foreign Policy, Economics, Strategic Competition, and COVID-19
Political Geography:
China, South Asia, Asia, North America, and United States of America

27. Boosting Taiwan’s Economic Status is Good Strategy, Economics, and Domestic Policy

Author:
John Lee
Publication Date:
06-2020
Content Type:
Special Report
Institution:
Hudson Institute
Abstract:
This report makes the following arguments: From Taiwan’s perspective, the greater its economic presence and importance to the world, the better positioned it is to reduce its dependency on China and maintain its autonomy. This also serves US interests. From the US perspective, deepening the economic relationship with Taiwan in strategic ways will assist it in achieving greater economic distance from China and reducing the extent to which China can capture and dominate global supply and value chains in the future. The US and Taiwanese economies are largely complementary, and this can become even more so. Thus, a deeper bilateral economic relationship will be generally consistent with domestic economic objectives, such as prioritizing high-value job creation and preventing high-value supply chains from remaining in China or leaving the United States. The report offers recommendations to: help prevent the hollowing out of Taiwan’s competitive strengths; help Taiwan broaden and deepen its participation in the regional and international economic space, which is currently being narrowed by China; assist with Taiwan’s desire to lower dependency on China-based supply chains, especially with respect to high-value-added processes; encourage more bilateral investment, intra-industry relations and firm-to-firm activity between the United States and Taiwan.
Topic:
International Relations, Foreign Policy, Economics, and Domestic Policy
Political Geography:
China, Taiwan, and Asia

28. Next Steps for US Trade, Manufacturing, and Supply Chains After COVID-19

Author:
Thomas J. Duesterberg
Publication Date:
07-2020
Content Type:
Special Report
Institution:
Hudson Institute
Abstract:
The imperative to return supply chains to the United States for products important to national defense, medical security, and competitiveness in key industrial and technology sectors is not new. The explosive growth of the Chinese manufacturing sector, its mercantilist challenge to the world trading system, and its impact on jobs and industrial leadership in the United States is well known and well documented. This challenge has prompted new research and policies to help reverse the erosion of US supply chains. US technology leadership has been undermined by China’s forced technology transfer, theft of intellectual property, and subsidization of traditional and new higher technology sectors. In turn, the loss of global markets and US manufacturing jobs have resulted in social problems of increasing devastation to communities in industrial areas. China’s economic growth depends, in a historically unprecedented way, on its export model and the suppression of domestic consumption. This results in a cycle of overproduction, expansion of external spheres of economic influence, and dumping of products abroad. In recent years, the United States has begun to challenge the Chinese model. However, much work remains to be done to accomplish the goal of ending mercantilist practices, establishing a level playing field for US producers, and reinvigorating domestic production. Critical supply chains for US national defense and high technology leadership have become overly dependent on China and other foreign sources. The vulnerability of supply chains has been demonstrated by interruptions in supply of key materials by both natural disasters and political decisions such as Beijing’s cutoff of rare earth metals a decade ago. More recently, in July 2020, the production of critical personal protective equipment was interrupted by massive flooding in the interior of China. Beyond Beijing’s unfair practices, China is a continental economy with the ambition to displace the United States as the leader in the global economy of the 21st century and has the economies of scale to represent a serious, long term threat to US leadership and markets. The COVID-19 pandemic has accelerated these preexisting trends and underscores the importance of bringing industrial supply chains, including medical products, back to the United States. First, the cut-off of medical supplies, not just from China but from Europe and other allies, brought the vulnerabilities of relying on outside sourcing into clearer and more immediate focus. Ninety countries blocked the exports of medical products during the early months of the pandemic. Second, border closures around the world, even within the European Union (EU), added to the worries about supply chain interruptions, including for workers and logistics. Seventy percent of the world’s points of entry restricted foreign travelers at some point as the pandemic grew. Third, border closures and supply chain interruptions increased tensions between nations, especially between the United States and China, which was criticized for its suppression of information at the start of the pandemic. Beijing’s brazen imposition of a new security law in Hong Kong while the world was preoccupied by the pandemic further eroded its global standing, especially in Europe. Fourth, the economic collapse due to the pandemic response again focused attention on the need to create more domestic jobs, including those in the hard-hit industrial sector. Finally, all these developments led allies such as the United Kingdom, Japan, and the EU to advance new policies meant to bring production back to home territories. These trends support initiatives to increase the resiliency of domestic production, even beyond the parameters of defense and medical security.
Topic:
Economics, Science and Technology, Manufacturing, Trade, COVID-19, and Supply Chains
Political Geography:
China, Asia, North America, and United States of America

29. Sustaining the Undersea Advantage: Transforming Anti-Submarine Warfare Using Autonomous Systems

Author:
Bryan Clark, Seth Cropsey, and Timothy A. Walton
Publication Date:
09-2020
Content Type:
Special Report
Institution:
Hudson Institute
Abstract:
Submarines have posed a challenge to naval forces for more than a century, enabling weaker maritime powers to launch surprise attacks ashore or cut an opponent off from the sea. But submarine threats, and the difficulty of countering them, increased substantially for the United States and its allies during the past decade. The Chinese People’s Liberation Army Navy (PLAN) is modernizing its fleet with conventional air-independent propulsion submarines (SSPs) that support its broader sensor and weapon networks. It is also fielding nuclear-powered attack submarines (SSN) and ballistic missile submarines (SSBNs) capable of longer or more distant deployments. New generations of Russian Federation Navy (RFN) SSNs are difficult to track and could be employed for conventional or nuclear strikes during a conflict. Both countries are augmenting their submarine fleets with large autonomous underwater vehicles (AUVs) incorporating submarine like capabilities. Modern submarine technology has also proliferated, with the North Korean and Iranian navies using submarines and AUVs to level the playing field with their larger regional competitors and the United States. Unfortunately, the current US and allied approach to antisubmarine warfare (ASW) is unlikely to cope with the probable scale of undersea threats in a crisis or conflict. US Navy ASW concepts rely on fixed seabed sensors such as the Sound Surveillance System (SOSUS) or Surveillance Towed Array Sensor System (SURTASS) ships to detect and initially track submarines. Multiple maritime patrol aircraft and guided missile destroyers (DDGs) then track each adversary submarine before potentially passing it to an SSN for longerterm surveillance. This approach works when opposing submarines deploy infrequently but is likely to break down during a large-scale submarine deployment or as submarines become quieter and harder to track. When manned platforms and expendables such as sonobuoys or torpedoes run out or are needed elsewhere, ASW operations will necessarily collapse to a defensive strategy protecting high-value targets, instead of suppressing enemy submarine operations closer to the adversary’s waters. This may result in unlocated adversary submarines operating in the open ocean, where they could threaten US and allied shipping and maritime operations.
Topic:
Defense Policy, National Security, Science and Technology, Military Affairs, Maritime, Automation, and Submarines
Political Geography:
China, Asia, North America, and United States of America

30. Weaponizing the 5G Value Chain

Author:
Bryan Clark and Dan Patt
Publication Date:
09-2020
Content Type:
Special Report
Institution:
Hudson Institute
Abstract:
US national security experts worry the United States is falling behind China in the competition for 5G mobile communication dominance. While US companies led establishment of today’s 4G networks, they are not the frontrunners in setting 5G standards, building 5G equipment, or deploying 5G infrastructure. The lead in 5G implementation belongs instead to China’s Huawei, which exploited a combination of regulatory protection, government subsidies, and capable technology to rapidly gain one-third of the global 5G market.
Topic:
National Security, Science and Technology, Internet, and 5G
Political Geography:
China, Asia, North America, and United States of America

31. Nine Months of COVID-19: The Impact on South Asia

Author:
Aparna Pande and Husain Haqqani
Publication Date:
11-2020
Content Type:
Special Report
Institution:
Hudson Institute
Abstract:
Since February of 2020, the eight countries of South Asia have been contending with the devastating effects of the coronavirus pandemic. The region has seen the third-highest death rate in the world from the virus, which originated in Wuhan, China, and brought long-term health impacts the medical community is only beginning to recognize. The economic consequences of COVID-19 on South Asia are proving to be even greater than the healthcare challenges in the region. Different South Asian countries have dealt with the pandemic in various ways, but the economic costs overall seem to be higher than the healthcare consequences. A lot has happened in the world’s most populous region since the “Crisis from Kolkata to Kabul: COVID-19’s Impact on South Asia” report was published in May 2020. This document serves as an update on the progression of the pandemic in South Asia.
Topic:
Economy, COVID-19, and Health Crisis
Political Geography:
South Asia and Asia

32. Towards an Even Stronger Japan-US Alliance

Author:
Taro Hayashi
Publication Date:
11-2020
Content Type:
Policy Brief
Institution:
Hudson Institute
Abstract:
Sixty years ago, Japan and the United States signed the Treaty of Mutual Cooperation and Security marking the beginning of the Japan-US Alliance as we know it today. The two countries have made a commitment to core values such as democracy, respect for human rights, and a rules-based international order. The Alliance has played an integral role in ensuring the peace and security of the two countries as well as realizing their shared vision of a free and open Indo-Pacific through security cooperation.
Topic:
Bilateral Relations, Economy, Alliance, and COVID-19
Political Geography:
Japan, Asia, North America, and United States of America

33. Double-Edged Aid: China’s Strategy to Gain Influence through Regional Assistance

Author:
Liselotte Odgaard
Publication Date:
03-2020
Content Type:
Special Report
Institution:
Hudson Institute
Abstract:
This report addresses China’s approach to development in Central Asia, Southeast Asia, East Africa, and the Arctic. China has worked through the Shanghai Cooperation Organization to meet Russian demands for continued regional primacy in Central Asia, helping Beijing foster economic and social dominance, access strategic energy resources, and treat the Uyghur minorities as a problem of terrorism rather than a development issue. In Southeast Asia, China has worked through the Association of South-East Asian Nations (ASEAN) to meet regional demands for soft and hard infrastructure to legitimize China’s growing strategic presence. China is therefore able to undermine the regional economic and security foothold of the US alliance system and challenge the interpretations of the Law of the Sea that legitimizes the military presence and activities of extra regional powers. In East Africa, China has cooperated with the African Union (AU) and the East African Intergovernmental Authority on Development (IGAD) to address regional demands for hard and soft infrastructure without political conditions, to link antipiracy problems to problems of poverty, and to mediate local civil wars. This has helped China establish an economic and strategic foothold at the intersection of the Indian Ocean and Middle East, projecting power far from its shores. In the Arctic, China has established research stations that function as both environmental research laboratories and military surveillance stations.
Topic:
International Relations, Economics, Health, Foreign Aid, Regulation, and Trade
Political Geography:
China and Asia

34. Crisis from Kolkata to Kabul: COVID-19’s Impact on South Asia

Author:
Husain Haqqani and Aparna Pande
Publication Date:
05-2020
Content Type:
Special Report
Institution:
Hudson Institute
Abstract:
The world’s most populous region, South Asia, with almost 1.9 billion people living in eight countries, has so far had fewer reported infections and fatalities per capita from the novel coronavirus than projected in early models. However, the region is unlikely to escape the widespread disruption and damage felt across the globe, and its worst health-care crisis may be yet to come. In South Asia, as in other regions, the COVID-19 pandemic is testing the capacities of states to provide security and effective healthcare and to maintain essential services. It is also having an impact on fragile democratic institutions and societal bonds, in addition to putting considerable strains on the economy. [...] Following is a country-by-country report, with inputs from experts on the ground, on the coronavirus pandemic’s impact in South Asia and its human, economic, and political consequences.
Topic:
Economics, Health, Crisis Management, and COVID-19
Political Geography:
Pakistan, China, South Asia, India, Asia, and Sri Lanka

35. The “China Dream” and the African Reality: The Role of Ideology in PRC-Africa Relations

Author:
James Barnett
Publication Date:
10-2020
Content Type:
Special Report
Institution:
Hudson Institute
Abstract:
The Chinese Communist Party (CCP) promotes its worldview and political and economic model overseas, particularly in the developing world, albeit in a very different manner than it did in the era of Mao Zedong. Under Mao, who fashioned himself the champion of Third World revolutionary movements, China exported a comprehensive, proactive, and universal ideology. Today the party’s theorists are struggling to develop a message of similar caliber. What they have produced so far has not translated into a particularly coherent or compelling “Xi Jinpingism” that appeals across cultures and societies. But this has not stopped the PRC from pursuing an ideologically grounded foreign policy. President Xi speaks frequently of a “Community of Common Destiny,” a still-vague vision for a Sinocentric world order in which the CCP’s model is lauded as a contribution to human civilization, liberal democracy is widely discredited, and the developing world looks to China above all others for inspiration.
Topic:
International Relations, Politics, Elites, and Chinese Communist Party (CCP)
Political Geography:
Africa, China, and Asia

36. The Battle for the Soul of Islam

Author:
James M Dorsey
Publication Date:
10-2020
Content Type:
Commentary and Analysis
Institution:
Hudson Institute
Abstract:
It is not the caliphate that the world’s Muslim powerhouses are fighting about. Instead, they are engaged in a deepening religious soft power struggle for geopolitical influence and dominance. This battle for the soul of Islam pits rival Middle Eastern and Asian powers against one another: Turkey, seat of the Islamic world’s last true caliphate; Saudi Arabia, home to the faith’s holy cities; the United Arab Emirates, propagator of a militantly statist interpretation of Islam; Qatar with its less strict version of Wahhabism and penchant for political Islam; Indonesia, promoting a humanitarian, pluralistic notion of Islam that reaches out to other faiths as well as non-Muslim centre-right forces across the globe; Morocco which uses religion as a way to position itself as the face of moderate Islam; and Shia Iran with its derailed revolution. In the ultimate analysis, no clear winner may emerge. Yet, the course of the battle could determine the degree to which Islam will be defined by either one or more competing stripes of ultra-conservativism—statist forms of the faith that preach absolute obedience to political rulers and/or reduce religious establishments to pawns of the state.
Topic:
International Relations, Foreign Policy, Islam, Politics, and Ideology
Political Geography:
Russia, Iran, Indonesia, Turkey, Middle East, Asia, Saudi Arabia, Morocco, Qatar, and United Arab Emirates

37. Addressing the Sino-Russian Challenge

Author:
Richard Weitz
Publication Date:
11-2020
Content Type:
Special Report
Institution:
Hudson Institute
Abstract:
The Trump administration has described the People’s Republic of China and the Russian Federation as the most significant great-power challengers to the United States and its allies, values, and interests. The 2017 US National Security Strategy identified China and Russia as ideological rivals “determined to make economies less free and less fair, to grow their militaries, and to control information and data to repress their societies and expand their influence.” The 2018 US National Defense Strategy described China as “a strategic competitor using predatory economics to intimidate its neighbors” while undertaking “a military modernization program that seeks Indo-Pacific regional hegemony in the near-term and displacement of the United States to achieve global preeminence in the future.” The document further criticized Russia for seeking “veto power over the economic, diplomatic, and security decisions of its neighbors.”
Topic:
International Relations, International Cooperation, National Security, and Strategic Competition
Political Geography:
Russia, China, Eurasia, and Asia

38. The Use of Aid to Counter China's "Djibouti Strategy" in the South Pacific

Author:
John Lee
Publication Date:
03-2019
Content Type:
Special Report
Institution:
Hudson Institute
Abstract:
China has gradually militarized its facilities in the horn of Africa (Djibouti) under the pretense of anti-piracy operations and development aid since 2017, which has forced the U.S., France, and Japan to accept a permanent Chinese military presence in the same 14,400 square-mile African territory, where China is now holding live-fire exercises. Dubbed the “Djibouti strategy,” Beijing is now executing this tactic across the South Pacific, one of the most aid-dependent regions of the world. China, one of the highest contributors to Official Development Assistant (ODA) in the South Pacific, uses that tool at first under the guise of aid while actually employing it to shape the islands’ infrastructure to its own strategic military advantage. China is currently building infrastructure capable of dual economic and military use in Fiji, the Cook Islands, Samoa, Tonga, Vanuatu, and other Pacific islands. These projects support China’s aim to break through the First and Second Island Chains, a series of pro-U.S. countries that limit Chinese naval access to the Philippine Sea and Pacific Ocean. Meanwhile, U.S. ODA is deployed inefficiently and inconsistently through 19 separate agencies. The design, delivery, and administration of U.S. development assistance must be reformed. ODA is a national security issue, not just a humanitarian one. The U.S. defense community needs to embrace the strategic potential of ODA and its capacity to strengthen democracies and counter malign influence abroad.
Topic:
International Relations, Foreign Aid, Infrastructure, Alliance, and Soft Power
Political Geography:
Africa, China, Asia, Djibouti, Cook Islands, Samoa, Tonga, Vanuatu, United States of America, Fiji, and South Pacific

39. The Expanding China-Russia Defense Partnership

Author:
Richard Weitz
Publication Date:
05-2019
Content Type:
Special Report
Institution:
Hudson Institute
Abstract:
Russia and China’s relationship is increasingly strengthened by arms sales, joint military exercises, and mutual diplomatic support. With growing frequency, the two countries hare expressing joint concern towards “threatening” U.S. military capabilities and security policies. China’s growing ability to deny foreign navies access to waters and airspace is connected to the sophisticated defense platforms provided by Russia. Vladimir Putin and Xi Jinping are seeking a closer defense partnership, which could take the form of integrated military operations, collaboration on battlefield technology, or a joint missile defense system. Through joint military exercises, China is learning from Russia’s military experience in Crimea, gaining operational knowledge on expeditionary logistics and how to protect military bases in foreign countries. In 2021, the Sino-Russian Treaty of Friendship expires. Its renewal could introduce new dynamics to the China-Russian relationship, and the possible inclusion of collective defense provisions like those between the U.S. and Japan.
Topic:
Foreign Policy, Defense Policy, International Cooperation, National Security, Science and Technology, Treaties and Agreements, Bilateral Relations, Partnerships, and Weapons
Political Geography:
Russia, China, Eurasia, Asia, and United States of America

40. China, 5G, and Dominance of the Global “Infosphere”

Author:
WIlliam Schneider
Publication Date:
09-2019
Content Type:
Special Report
Institution:
Hudson Institute
Abstract:
Modern consumer society has rapidly evolved from domination by “things” to domination by information. Once upon a time, for example, a car was an object for personal transportation in which anything more than basic information about speed and fuel level came from and through the driver. Now, the automobile itself provides and processes information with which drivers interact at a much richer level. Back-up cameras, blind spot and lane drift warning lights, hands-free wireless telephony, and GPS have transformed the driving experience fundamentally, even ahead of the truly revolutionary era of self-driving cars. A large and growing fraction of the world’s day-to-day life of individuals, objects, and institutions will be indelibly stored with an electronic “footprint.” The intelligence value of this information from a national security perspective exclusively accessed through a modern communications system dominated by China – 5G – is immense and profoundly threatening. The new dominance of information is simultaneously bewildering and promising. Moreover, as rapid as the pace of development has been over the past decade, it will soon quicken—with broad implications for almost every aspect of human life. An important aspect of this shift has been the convergence of rapidly developing and mutually reinforcing technologies into an infosphere that will incorporate almost all information-based communications and data services in the global information infrastructure. Not coincidentally, an integrated infosphere meets aspirations held by the People’s Republic of China to dominate and control the global information infrastructure. Beijing’s investments in 5G reflect an understanding that this technology is the gateway to control the world’s information infrastructure and growing realm of 5G-dependent technologies. A Chinese-dominated infosphere is, in fact, the “digital road” component of its Belt-and-Road-Infrastructure (BRI). While U.S. policymakers have yet to fully grasp the implications of this emerging infosphere, the components below reflect the enabling dimensions that support China’s effort to dominate the global information infrastructure.
Topic:
Economics, Science and Technology, Internet, 5G, and Information Technology
Political Geography:
China and Asia

41. The Cornerstone and the Linchpin: Securing America’s Northeast Asian Alliances

Author:
Patrick M. Cronin
Publication Date:
10-2019
Content Type:
Special Report
Institution:
Hudson Institute
Abstract:
During an era in which strategic gravity is shifting to Asia, the United States cannot be careless in tending to its alliances with Japan and South Korea (the Republic of Korea, or ROK). The three countries face persistent threats from North Korea and from China’s semi-transparent bid for regional hegemony. Meanwhile, rocky relations between Tokyo and Seoul are jeopardizing vital U.S. interests in the Indo-Pacific. The latest disagreement between America’s premier allies raises new questions about alliance strategy, commitment, and burden-sharing. These fissures have become exacerbated as the U.S. pressures allies to increase their contributions to regional security and reciprocal trade. [...] This report seeks to explain why the U.S.-Japan and U.S.-ROK alliance are still a vital means of achieving overlapping strategic interests. At the same time, it also argues that keeping these alliances fit for purpose requires radical change rather than business as usual. Both a rapidly changing security environment and growing intra-alliance squabbling pose dangers that require U.S. leadership. This report concludes with specific ideas for advancing bilateral and trilateral cooperation in the coming months and years, without trying to achieve too much too quickly.
Topic:
International Relations, Foreign Policy, Economics, International Security, and Alliance
Political Geography:
Japan, Asia, South Korea, North America, and United States of America

42. If You Can’t See ’em, You Can’t Shoot ’em: Improving US Intelligence, Surveillance, Reconnaissance, and Targeting

Author:
Seth Cropsey
Publication Date:
11-2019
Content Type:
Special Report
Institution:
Hudson Institute
Abstract:
This report tracks the development of naval and maritime intelligence, surveillance, reconnaissance, and targeting (ISR/T) from the Cold War to the present day. It reveals the fluctuating relationship between ISR/T and weapons ranges that have adversely impacted the US Navy’s combat capabilities. While the United States developed longer-range weapons throughout the Cold War and revised tactics and fleet composition to better employ those weapons offensively, the gap that remained between weapons range and targeting information had a negative effect on US Navy combat power. Following the Cold War, while weapons and delivery-system range decreased, ISR/T capacity and capability rose, allowing for precision strikes against ground targets at short and medium range. Finally, the contemporary fleet, facing renewed great power competition, is increasingly receiving long-range strike weapons. However, it lacks the ISR/T complex to identify and hit targets at those ranges in most over-the-horizon combat situations. Second, this report reviews the current ISR/T capabilities to which the US Navy has access, primarily in the Pacific theater, and performs first-order sufficiency analysis to gain an understanding of the impact the current program of record has on operational requirements. Finally, the report concludes with several key recommendations to naval policymakers, civilian and military.
Topic:
Foreign Policy, National Security, Science and Technology, Military Affairs, and Surveillance
Political Geography:
Asia, North America, and United States of America

43. China’s Economic Slowdown: Root Causes, Beijing’s Response and Strategic Implications for the US and Allies

Author:
John Lee
Publication Date:
12-2019
Content Type:
Special Report
Institution:
Hudson Institute
Abstract:
This monograph attempts to argue and/or demonstrate three main points. First, it looks at why there were credible fears about the stability and viability of the Chinese economy — especially the financial and banking system — leading up to the end of the Twelfth Five Year Plan (2011–15), and what these were. To understand why Beijing was so concerned, the monograph draws out the serious structural problems that were leading inevitably to a permanent slowdown from the double-digit growth rates of the first three decades of reform. Second, the monograph looks at what occurred from 2015 to the present, and how China apparently overcame its economic difficulties. In fact, it has not overcome its problems, but deferred them to a future time in ways that only its unique authoritarian political economy is able to do.Third, it is clear the Communist Party is not passively awaiting an unhappy economic fate in connection with its mounting imbalances and domestic economic dysfunction. In many respects, its leaders have been highly creative in seeking solutions that do not entail a weakening of the party’s hold on economic power. On the contrary, the party has been busily shaping and pursuing grand strategic policies such as the Belt and Road Initiative (BRI) and Made in China 2025 (MIC 2025) to solve or alleviate many of its domestic political-economic problems. This monograph argues that these and other outward-focused initiatives stem most fundamentally from Chinese weaknesses and vulnerabilities but are being remade and recast into initiatives that will strengthen the position of the CCP domestically, ensure greater resilience for its political economy, and advance its ambitious strategic and international objectives at the same time. In summary, it is about the Communist Party cleverly transforming domestic vulnerability into grand strategy and using economic approaches to gain pre-eminence and “win without fighting.”
Topic:
International Relations, Foreign Policy, National Security, Geopolitics, Economy, Belt and Road Initiative (BRI), and Strategic Competition
Political Geography:
China, Asia, North America, and United States of America

44. Breaking the Defense Barrier

Author:
Arthur Herman
Publication Date:
03-2018
Content Type:
Policy Brief
Institution:
Hudson Institute
Abstract:
The key to strengthening and deepening the U.S.-Japan alliance in order to better meet regional threats is to increase defense trade and defense industrial cooperation between the two countries. A Defense Trade Cooperation Treaty (DTCT), a formal agreement between two countries which exempts their trade in certain specified defense and defense-related articles from the arms export regulations of both nations, would be an important way to achieve that goal.
Topic:
International Relations, Defense Policy, Treaties and Agreements, Bilateral Relations, and Trade
Political Geography:
East Asia, Asia, North America, and United States of America

45. The U.S.-Japan Alliance: Significance and Role

Author:
Seth Cropsey and Jun Isomura
Publication Date:
04-2018
Content Type:
Special Report
Institution:
Hudson Institute
Abstract:
The alliance between the United States and Japan, born at the end of the Second World War, continues to play a vital role in the defense of the Japanese Islands and in U.S. regional Indo-Pacific strategy. The People’s Republic of China is challenging the U.S.-Japan alliance in the Indo-Pacific Region. China has greatly increased its defense budget, expanded and modernized its navy, and increased operations that challenge the region’s status quo—including in the East China Sea, where the PRC regularly violates Japan’s territorial waters, in the vicinity of the contested Senkaku Islands. China’s belligerent behavior poses a strategic threat to Japan’s domestic security and will continue to encroach on Japanese and U.S. interests in the region. The PRC’s threatening behavior and an aggressive nuclear-armed North Korea are testing the U.S.-Japan bilateral alliance as it has not been tested since the Cold War. The United States continues to serve as a guarantor of Japan’s national security. The U.S. military has stationed naval, air force, army, and amphibious forces in Japan as a strategic deterrent against would be aggressors. With U.S. forces in Japan as a deterrent, Japan has developed a pacifist strategy based on non-aggression and security limited to self-defense. The Japanese constitution’s Article 9 enshrined this principle into law. Japan’s regional strategy has paid dividends through political, diplomatic, and economic engagement with Indo-Pacific countries. This includes Japan’s increasing defensive security cooperation in the region. The Japanese Self-Defense Forces have participated alongside the United States and such neighboring states as South Korea in bilateral and multilateral exercises that build both capabilities and security relationships. Beyond diplomatic and soft power engagement, Japan has in recent years increased its defensive capabilities. To counter Chinese and North Korean missile threats, Japan has worked with the United States to build an advanced ballistic missile defense. In addition, the Japanese Self-Defense Forces have acquired medium-range cruise missiles for its air forces to deter potential adversaries from launching attacks. Tokyo has expanded its defense to counter challenges below the threshold of war against Japan’s outlying islands. Improved intelligence, surveillance, and reconnaissance and the establishment of amphibious forces contribute to this defense.
Topic:
International Relations, Defense Policy, National Security, Bilateral Relations, and Alliance
Political Geography:
Japan, China, Asia, North America, and United States of America

46. Israel and China Take a Leap Forward—but to Where?

Author:
Arthur Herman
Publication Date:
11-2018
Content Type:
Commentary and Analysis
Institution:
Hudson Institute
Abstract:
There is certainly no denying that, in terms of trade and investment alone, the burgeoning economic partnership between Israel and China has at least the potential of transforming not only Israel itself but also Israel’s position vis-à-vis the rest of the Middle East—and most notably vis-à-vis Iran, which happens to be Beijing’s other key partner in the region. Inevitably, it could also have an impact on Israel’s relations with the United States. But is this a marriage made in heaven? Or is it something else? Weighing the answer to that question involves probing beneath the two countries’ currently successful dynamic of trade and commercial transactions to their respective geopolitical agendas. When it comes to Israel, the acknowledged junior partner, it also requires examining whether and how the relationship with China could become a dependency. Such a change might please Beijing, but it would impose on Israeli national security a new kind of vulnerability, one very different from the challenges it has faced successfully in the past.
Topic:
Diplomacy, National Security, Bilateral Relations, Partnerships, Geopolitics, and Economy
Political Geography:
China, Middle East, Israel, and Asia

47. Keeping the Peace in the Pacific: The Next Steps in American Policy

Author:
John Lee and Charles Horner
Publication Date:
04-2014
Content Type:
Policy Brief
Institution:
Hudson Institute
Abstract:
U.S. administrations and officials are consistently caught flat-footed by the increasing assertiveness of the People's Republic of China (PRC) over disputed territories in the East China and South China Seas. This assertiveness is strident, yet controlled. Beijing's objectives in the region, with respect to maritime issues in particular, have been apparent for several decades. While the United States is well aware of the PRC's "talk and take" approach—speaking the language of negotiation while extending de facto control over disputed areas—U.S. policy has been tactical and responsive rather than strategic and preemptive, thus allowing China to control the pace and nature of escalation in executing talk and take.
Topic:
International Relations, Diplomacy, Economics, International Trade and Finance, and Bilateral Relations
Political Geography:
United States, China, and Asia