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881. Confrontation Muted, Tensions Growing

Author:
David J. Keegan and Kyle Churchman
Publication Date:
05-2023
Content Type:
Journal Article
Journal:
Comparative Connections
Institution:
Pacific Forum
Abstract:
As 2023 began, cross-Strait confrontation was muted. Travel began returning to pre-COVID levels across the Strait and between the mainland and Taiwan’s offshore islands. At China’s annual National People’s Congress, outgoing Premier Li Keqiang and reanointed President Xi Jinping eschewed inflammatory rhetoric about reunification with Taiwan. Taiwan and the US kept Taiwan President Tsai Ing-wen’s transit of the US low-key. Tsai met House Speaker Kevin McCarthy in California, deflecting the speaker’s expressed interest in visiting Taiwan and avoiding the destabilizing Chinese military exercises around Taiwan that followed Speaker Pelosi’s visit last August. Despite this calm, seeds of confrontation proliferated. China cut a communications cable to Taiwan’s offshore islands and announced a coast guard drill to inspect commercial shipping in the Taiwan Strait, both interpreted as practice for gray-zone coercion. China persuaded Honduras to sever its longstanding diplomatic ties with Taiwan. Taiwan increased its military budget and expanded training with US forces. Former Taiwan President Ma Ying-jeou visited China and met Chinese officials, endorsing the 1992 Consensus and signaling that the upcoming election campaign for Taiwan’s president will again offer two very different visions of Taiwan’s future relationship with mainland China.
Topic:
International Relations, Bilateral Relations, Coercion, and Regional Politics
Political Geography:
China, Taiwan, and Asia

882. China Strengthens Regional Leadership Countering US Challenges

Author:
Robert G. Sutter and Chin-Hao Huang
Publication Date:
05-2023
Content Type:
Journal Article
Journal:
Comparative Connections
Institution:
Pacific Forum
Abstract:
Southeast Asia featured prominently in Beijing’s increasingly strong international efforts to portray China as a source of strategic stability and economic growth with comprehensive global governance plans supportive of interests of developing countries and opposing the United States. These efforts intensified after the landmark 20th Party Congress in October and the 14th National People’s Congress in March. They were reinforced as Xi Jinping emerged from COVID restrictions and preoccupation with domestic matters to engage actively in summitry with leaders of Vietnam, Laos, the Philippines, Cambodia, Malaysia, and Singapore. China’s economic importance for regional countries grew as did its dominance over the contested South China Sea. Its show of force against Taiwan in April had little discernible impact on China-Southeast Asia relations, while notable US advances in military cooperation with the Philippines warranted Chinese warnings that escalated during the reporting period.
Topic:
Bilateral Relations, Leadership, Economic Growth, Strategic Stability, and Regional Politics
Political Geography:
China, Asia, and Southeast Asia

883. US-China Effort to Set “Guardrails” Fizzles with Balloon Incident

Author:
Sourabh Gupta
Publication Date:
05-2023
Content Type:
Journal Article
Journal:
Comparative Connections
Institution:
Pacific Forum
Abstract:
The proposed “guardrail” that Joe Biden and Xi Jinping sought to erect last fall in Bali failed to emerge in the bitter aftermath of a wayward Chinese surveillance balloon that overflew the United States and violated its sovereignty. Though Antony Blinken and Wang Yi met on the sidelines of the Munich Security Conference afterward, aspersions cast by each side against the other, including a series of disparaging Chinese government reports, fed the chill in ties. Taiwan President Tsai Ing-wen’s meeting with House Speaker Kevin McCarthy during the return leg of her US transit added to bilateral and cross-strait tensions and were met with Chinese sanctions. Issues pertaining to Taiwan, be it arms sales or a speculated Chinese invasion date of the island, remained contentious. The administration’s attempt to restart constructive economic reengagement with China, including via an important speech by US Treasury Secretary Janet Yellen, appears to have fallen on deaf ears in Beijing. Following the Biden-Xi meeting on Nov. 14 on the sidelines of the G20 Leaders Summit in Bali, Indonesia, US-People’s Republic of China relations were transitioning to an improving track—or so it seemed. US Defense Secretary Lloyd Austin met with his Chinese counterpart, Defense Minister Wei Fenghe, on the sidelines of the ASEAN Defense Ministers” Meeting-Plus meeting in Cambodia on Nov. 22. On Dec. 11-12, US Assistant Secretary of State for East Asian and Pacific Affairs Daniel Kritenbrink held “candid, in-depth and constructive” talks in Beijing. On Jan. 18, Secretary Yellen had a “candid, substantive, and constructive conversation” with departing Vice-Premier Liu He in Zurich ahead of the World Economic Forum in Davos. Hours before Secretary Blinken was due to board a flight to Beijing on Feb. 3, which would have been the highest-ranking contact between the two sides since the Bali meeting, the budding rapprochement came to a screeching halt.
Topic:
Security, Foreign Policy, Economics, and Bilateral Relations
Political Geography:
China, Asia, North America, and United States of America

884. China-Russia Relations: Ending the War? Or the World?

Author:
Yu Bin
Publication Date:
01-2023
Content Type:
Journal Article
Journal:
Comparative Connections
Institution:
Pacific Forum
Abstract:
As the Ukraine conflict was poised to expand, the “extremely complicated” situation at the frontline (in Vladimir Putin’s words on Dec. 20) gave rise to intensified high-level exchanges between Moscow and Beijing as they searched for both an alternative to the conflict, and stable and growing bilateral ties. As the Ukraine war dragged on and mustered a nuclear shadow, it remained to be seen how the world would avoid what Henry Kissinger defined as a “1916 moment,” or a missed peace with dire consequences for not only the warring parties but all of civilization.
Topic:
Foreign Policy, Bilateral Relations, Conflict, and Russia-Ukraine War
Political Geography:
Russia, China, Eurasia, Asia, and Indo-Pacific

885. Japan-China Relations: A Period of Cold Peace?

Author:
June Teufel Dreyer
Publication Date:
01-2023
Content Type:
Journal Article
Journal:
Comparative Connections
Institution:
Pacific Forum
Abstract:
In the sole high-level meeting in the reporting period, on the sidelines of the APEC meeting in Bangkok in November, General Secretary/President Xi Jinping and Prime Minister Kishida Fumio essentially talked past each other. At an earlier ASEAN+3 meeting in Phnom Penh, Premier Li Keqiang and Kishida not only talked past each other but pointedly walked past each other. There was no resolution of major issues: the Chinese position is and remains that Taiwan is a core interest of the PRC in which Japan must not interfere. Japan counters that a Chinese invasion would be an emergency for Japan. On the islands known to the Chinese as the Diaoyu and to the Japanese as the Senkaku, Tokyo considers them an integral part of Japan on the basis of history and international law while China says the islands are part of China. On jurisdiction in the East China Sea, Japan says that demarcation should be based on the median line and that China’s efforts at unilateral development of oil and gas resources on its side of the median are illegal. Beijing does not recognize the validity of the median line. Economically, a number of Japanese industries have been decoupling from China out of concern for the integrity of their supply chains and for security reasons while others are planning to expand operations there. Both sides continued their respective defense buildups while accusing the other of military expansionism.
Topic:
Security, Defense Policy, Diplomacy, Economics, Politics, and Bilateral Relations
Political Geography:
Japan, China, and Asia

886. China-Korea Relations: Kim Jong Un Tests Xi-Yoon Diplomacy

Author:
Scott Snyder and See-Won Byun
Publication Date:
01-2023
Content Type:
Journal Article
Journal:
Comparative Connections
Institution:
Pacific Forum
Abstract:
Regional and global summits presented high-level platforms for China-South Korea engagement in November. The summitry showed that the relationship had returned with solidity with the resumption of international meetings and in-person exchanges. Although the Xi Jinping and Yoon Suk Yeol leaderships advanced diplomatic exchange, concerns emerged over enduring political and security constraints and growing linkages with the economic relationship. Kim Jong Un’s escalation of military threats, through an unprecedented number of missile tests this year, challenged Xi-Yoon bilateral and multilateral diplomacy. China-North Korea bilateral interactions, while brisk, primarily relied on Xi and Kim’s exchange of congratulatory letters around significant founding anniversaries, China’s 20th Party Congress, and expressions of condolences after the death of former Chinese leader Jiang Zemin. The UN Security Council’s failure to take unified action on DPRK threats prompted South Korea to voice frustration with China and expand cooperation with US and Japanese partners. Such responses only reinforced concerns raised in recent leadership exchanges, and Korean domestic division over Yoon’s diplomatic strategies.
Topic:
Diplomacy, Nuclear Weapons, Bilateral Relations, and Multilateralism
Political Geography:
China, Asia, South Korea, and North Korea

887. Tensions Intensify as Taiwan-US IT Cooperation Blossoms

Author:
David J. Keegan and Kyle Churchman
Publication Date:
01-2023
Content Type:
Journal Article
Journal:
Comparative Connections
Institution:
Pacific Forum
Abstract:
In the wake of then US Speaker of the House Nancy Pelosi’s visit to Taiwan in August, China’s extensive military exercises continued to impose a more threatening “new normal” in the Taiwan Strait. Taiwan continued to be the focus of heated public exchanges between the US and China. US President Biden said, for a fourth time, that the US would defend Taiwan and added an inflammatory codicil that independence was for Taiwan to decide. At the 20th Congress of the Chinese Communist Party, General Secretary Xi Jinping promised China would strive for peaceful reunification with Taiwan but would not renounce use of force. On Dec. 23, Biden signed the Taiwan Enhanced Resilience Act and a State Department appropriation providing $2 billion in loans for Taiwan to purchase US equipment. Two days later, China sent 71 military aircraft and seven ships to intimidate Taiwan, its largest-ever one-day exercise near the island. Two days later, Taiwan President Tsai Ing-wen announced that Taiwan would extend its military conscription to 12 months. TSMC formally broke ground for the first of two factories in the US, a $40 billion investment. The new year will see Taiwan’s DPP and KMT parties launch their presidential election campaigns, debating visions for cross-Strait defense, dignity, and dialogue as the Chinese military appears determined to intensify its intimidation.
Topic:
Defense Policy, International Cooperation, Bilateral Relations, Information Technology, and Military
Political Geography:
China, Taiwan, Asia, and United States of America

888. Xi Moderates to US and Others Amid Continued Competition

Author:
Robert G. Sutter and Chin-Hao Huang
Publication Date:
01-2023
Content Type:
Journal Article
Journal:
Comparative Connections
Institution:
Pacific Forum
Abstract:
Southeast Asia was the center of international attention in November as regional and global leaders gathered at the G20 conference in Indonesia, which took place between the annual ASEAN-hosted summit meetings in Cambodia and the yearly APEC leaders meeting in Thailand. Acute China-US rivalry loomed large in media and other forecasts, warning of a clash of US-Chinese leaders with negative implications feared in Southeast Asia and elsewhere. The positive outcome of the Biden-Xi summit at the G20 conference and related actions eased tensions, which was welcomed, particularly in Southeast Asia, but the implications for the US and allies’ competition with China remain to be seen. Tensions over disputes in the South China Sea continued unabated. President Xi Jinping made his first trip to a major international gathering at the G20 conference followed by the APEC meeting after more than two years of self-imposed isolation in line with his government’s strict COVID-19 restrictions. His visit occurred against the background of China’s unprecedented military show of force in response to US advances in relations with Taiwan, strident criticism of US efforts to increase influence in Southeast Asia and elsewhere, and remarkable warnings about China’s determination to resist adverse international threats in his landmark report to the 20thCommunist Party Congress in October validating his third term as party leader. Representing the United States at the ASEAN and G20 summits, President Joseph Biden gave no ground on Taiwan or other sensitive issues, increased US support for the island government, signed two massive bills calling for over half a trillion dollars of spending to compete with China on high technology and climate change, and imposed strict export controls on advanced computer chip technology to undermine China’s high technology ambitions. Because of protocol and scheduling, Xi and Biden overlapped only at the G20 meeting, making the Xi-Biden summit meeting on the sidelines of that conference a focus of attention. As discussed in the US-China chapter of this edition of Comparative Connections, Xi adopted a more moderate approach in dealing with the United States. He notably ended China’s past insistence that the United States change its policies toward China before China would agree to the Biden government’s longstanding request to work with China to set guardrails to manage US-China rivalry in ways that would avoid military conflict. The Chinese leader’s new approach was accompanied by public diplomacy efforts that were remarkable because they were starkly contrary to Chinese diplomacy throughout 2022. Chinese representatives and commentary endeavored to persuade audiences in Southeast Asia and elsewhere that Xi’s report and recent strident Chinese commentary and provocative actions did not represent China’s intentions. They corrected such “misperceptions” and advised that Chinese intentions were moderate, accommodating, and positive, focused on constructive outreach for cooperation in Southeast Asia and elsewhere. In addition to the United States, targets for this call to improve ties included US allies and partners heretofore strongly criticized by China for their policies in Southeast Asia and elsewhere, notably Japan and Australia.
Topic:
Foreign Policy, Leadership, Strategic Competition, Rivalry, and Regional Politics
Political Geography:
China, Asia, Southeast Asia, and United States of America

889. US-India Relations: Friends with Benefits

Author:
Akhil Ramesh
Publication Date:
01-2023
Content Type:
Journal Article
Journal:
Comparative Connections
Institution:
Pacific Forum
Abstract:
2022 was a challenging year, not just for US-India relations, but for every India analyst trying to explain the Indian government’s position on the Russia-Ukraine conflict. Explaining to a non-IR audience India’s history of nonalignment during the Cold-War era and its current policy of multi-alignment was not a gratifying endeavor. While the last four months of 2022 did not have the friction and stress-tests as the first four of 2022 or the slow and steady expansion of relations that followed between May and September, they certainly had multiple surprising events that could make them the halcyon months of 2022. In mid-November, the US and Indian armies engaged in a military exercise at Auli, not far from the Line of Actual Control (LAC) separating Indian-held and Chinese-held territory. While the US and Indian armies have engaged in exercises prior to 2022, this proximity to the Indo-China border is a first. A month later, in another first, US Treasury Secretary Janet Yellen traveled to India to meet Indian Finance Minister Nirmala Sitharaman to expand the US-India “Indo-Pacific partnership.” Yellen characterized India as a “friendly shore” for supply chain diversification and as the indispensable partner for the US. A country that earned notoriety for its bureaucracy and trade protectionism over the years was suddenly characterized as “friendly”; one that was highly skeptical of foreign militaries on its shores was actively engaging the US military at one of its most sensitive and tempestuous borders. The primary catalyst for this sea change has been shared concerns over a rising, authoritarian, and hegemonic China. The events of the last four months, while making India’s multi-alignment labored, also made it abundantly clear that the US-India relations will continue to expand to maintain a free and open Indo-Pacific.
Topic:
Security, Foreign Policy, International Cooperation, and Bilateral Relations
Political Geography:
China, South Asia, India, North America, and United States of America

890. For All the Tea in China: The English East India Company

Author:
Jamie Haworth and Sai Mirthipati
Publication Date:
02-2023
Content Type:
Case Study
Institution:
Oxford Centre for Global History
Abstract:
In Chinese mythology, Shennong was a deified emperor credited with discovering, among other things, modern agriculture, the use of fire, farmers’ markets and the Chinese calendar. As the story goes, one autumn afternoon his subjects were boiling water near a Camellia tree when a gust of wind blew some leaves into the pot. Intrigued by the fragrance, Shennong took a sip. Invigorated, he named the mystical infusion “cha”, thereby adding tea to the illustrious roster of his inventions. The Chinese character for “cha” depicts a man standing between “grass” and “tree” – a fitting, almost prescient characterisation that centres the story of tea on the story of humanity. For a millennium until the 1500s, tea was a closely guarded secret held by the Chinese elite. However, within the next three centuries, this elixir of life native to China would become a common commodity widely available across the Western hemisphere. Tea’s exclusivity lessened by degrees, eventually becoming a staple in working-class communities. As more people consumed tea, it became a complex and powerful economic driver – but not all by serendipity, despite Shennong’s myth. The Western thirst for tea led to competing schools of economic thought, financial systems of capital allocation and principles of governance that still characterise the modern world. Simultaneously, however, the Western thirst for economic power led to the development of the tea industry, a commodity that elites marketed in order to support colonial interests in India and China; tea would become inseparable from colonial identity. Chinese tea forced a shift in popular academic sentiment for trade, as part of a transition from a mercantilist zero-sum game to a Ricardian world of comparative advantage. The risks inherent in the tea trade prompted the development of the legal paradigms of limited liability and joint ownership. Furthermore, government-granted monopolies to ship tea prompted the populace to question the role of competition, government intervention and the ethics of running private armies that put state armies to shame. The story of tea includes the building of empires, the fighting of wars and the collapse of state powers. At the centre of it all was the East India Company and the imperial scramble to trade all the tea in China.
Topic:
Agriculture, History, Capitalism, Trade, British East India Company, and Tea
Political Geography:
China, Asia, and England

891. Messages to Washington: The significance of China's push for a new world order during President Jinping's Moscow visit

Author:
FARAS
Publication Date:
04-2023
Content Type:
Policy Brief
Institution:
Future for Advanced Research and Studies (FARAS)
Abstract:
Chinese President Xi Jinping, on March 20, 2023, arrived in Moscow on a three-day state visit to meet Russian President Vladimir Putin, drawing harsh criticism from the West. Western countries consider the visit as explicit support to the Russian leader. During the visit, China and Russia signed numerous agreements to show their willingness to reinforce their bilateral relations.
Topic:
Security, Bilateral Relations, Economic Cooperation, Multipolarity, and Russia-Ukraine War
Political Geography:
Russia, China, and United States of America

892. Second Meeting in Beijing: China-Facilitated Iran-Saudi diplomatic reconciliation efforts amid US apprehensions

Author:
FARAS
Publication Date:
04-2023
Content Type:
Policy Brief
Institution:
Future for Advanced Research and Studies (FARAS)
Abstract:
On April 6, Iranian Foreign Minister Hossein Amir-Abdollahian and his Saudi Arabian counterpart, Faisal bin Farhan Al-Saud, signed a joint statement in Beijing announcing the resumption of diplomatic relations between the two countries, which follows a tripartite agreement signed under China's auspices on March 10.
Topic:
Diplomacy, Treaties and Agreements, Reconciliation, and Regional Politics
Political Geography:
China, Iran, Middle East, Asia, Saudi Arabia, and United States of America

893. Intertwined Interest: What’s behind China-Ivory Coast strengthened relations?

Author:
FARAS
Publication Date:
03-2023
Content Type:
Policy Brief
Institution:
Future for Advanced Research and Studies (FARAS)
Abstract:
The diplomatic relation between China and Ivory Coast spans over more than four decades. Both sides have strengthened their relations in recent years as China looks to cement its presence in Africa.
Topic:
Foreign Policy, Diplomacy, Bilateral Relations, Investment, and Economic Cooperation
Political Geography:
China, Asia, and Ivory Coast

894. Military capabilities affected by climate change: An analysis of China, Russia and the United States

Author:
Adaja Stoetman, Dick Zandee, Ties Dams, Niels Drost, and Louise Van Schaik
Publication Date:
01-2023
Content Type:
Special Report
Institution:
Clingendael Netherlands Institute of International Relations
Abstract:
Climate change is one of the most pressing challenges of the present and the future. Rising temperatures and sea levels, as well as extreme weather events are manifestations of climate change that also influence military capabilities. Increased attention for the climate change-security nexus is visible both at the national and the international level: nationally through the incorporation of climate change in security strategies and internationally through incorporation in important strategic documents such as the EU’s Strategic Compass and NATO’s Strategic Concept. Given its transnational nature, governments around the world have a shared responsibility to face climate change. A particular role is laid down for the global powers, China, Russia and the United States, given their position in the world. It is, however, questionable whether the global powers’ interests align. They differ in their approaches to address climate change, and even more so in their views on how it affects the armed forces. China and particularly Russia are more reluctant towards depicting climate change as a matter of international security. This is for example visible in international forums, such as the UN Security Council. In contrast, in the US, support for climate action is subject to political preferences, but climate related security risks are widely recognised within the defence establishment. This report reviews various aspects of the relationship between climate and security, with a particular focus on the military. It discusses the role of climate change in a country’s security and defence strategy and, vice versa, the changing tasks and deployment of the armed forces in response to climate change, the effects of climate change on military infrastructure, and measures to realise a greener defence sector.
Topic:
Security, Climate Change, European Union, and Military
Political Geography:
Russia, China, Asia, North America, and United States of America

895. China “De-risking”: A Long Way from Political Statements to Corporate Action

Author:
Ole Spillner and Guntram Wolff
Publication Date:
06-2023
Content Type:
Policy Brief
Institution:
German Council on Foreign Relations (DGAP)
Abstract:
Major Western leaders have been calling for “de-risking” from China, rather than “decoupling.” But what exactly de-risking means and how it differs from decoupling, remains unclear. It is ultimately firms, not governments, driving trade and investment relations. But firms cannot account for unidentified risks by themselves. National security risks are for governments to define. Complex supply chain externalities might entail risks to production that are also difficult for firms to account for. Furthermore, firms may bet that governments will rescue them if a worst-case scenario happens, effectively socializing risks. In the EU, Germany is particularly exposed to China risk in terms of security, macroeconomic, and political exposure.
Topic:
Security, European Union, Macroeconomics, Supply Chains, and Geoeconomics
Political Geography:
China, Europe, and Asia

896. US Trade Policy Options for Pacific Islands States Require Washington’s Political Commitment

Author:
Marcus Noland
Publication Date:
07-2023
Content Type:
Special Report
Institution:
East-West Center
Abstract:
The Pacific Islands have emerged as a zone of contestation in the ongoing rivalry between China and the United States. While the US has long been the dominant military power in the region, China is raising its profile through activities like port visits, military exercises, and establishing diplomatic and security ties with regional states like Kiribati and the Solomon Islands. In 2018, Chinese leader Xi Jinping visited Papua New Guinea for the Asia Pacific Economic Cooperation (APEC) summit. President Biden was supposed to visit PNG in May 2023, in the first ever visit of a sitting US president to the Pacific Islands, but that trip was scuttled due to the debt ceiling fiasco in Washington. In the economics sphere, the US has attempted to counter China’s Belt and Road Initiative (BRI) together with Japan and Australia through the Blue Dot Network and the Indo-Pacific Infrastructure Trilateral to promote high-quality, transparent, and sustainable infrastructure development. The region contains considerable natural resources, and the US has been working with Pacific Island nations to promote sustainable resource management, in contrast to China’s alleged illegal, unreported, and unregulated fishing in the Pacific. What has been missing, however, is a trade policy component to the US strategy to counterbalance China’s exploration of a free trade agreement with the Pacific Islands Forum (PIF).
Topic:
Foreign Policy, Economics, Politics, and Trade Policy
Political Geography:
China, North America, United States of America, and Pacific Islands

897. Abrogating the Visiting Forces Agreement: Its Effects on Philippines’ Security and Stability in Southeast Asia

Author:
Renato Acosta
Publication Date:
02-2023
Content Type:
Special Report
Institution:
East-West Center
Abstract:
During much of 2022, the defense and security alliance between the United States of America and the Philippines, anchored on and reinforced by the 1951 Mutual Defense Treaty (MDT, teetered on the brink of collapse. Former Philippine President Rodrigo Duterte brought relations to the brink through attempts to scuttle the Visiting Forces Agreement (VFA). This move would only embolden Chinese challenges to Manila’s territorial integrity and its aspirations to dominate Southeast Asia and the South China Sea. While the Duterte administration recited parochial reasons to terminate the VFA, pundits from the security and diplomatic sectors viewed Duterte’s attempts as a pretext to steer the Philippines towards China under his own brand and definition of an independent foreign policy. During his term, Duterte reiterated that President Xi Jinping and other Chinese officials were his friends. He also publicly declared that the Kalayaan Island Group (KIG), a northeastern section of the Spratly Islands, was already in physical control and possession of Beijing due to the unchallenged presence of its military and maritime militia vessels there. Given these statements, Duterte has constantly received criticism over his defeatist stance towards China.
Topic:
International Relations, Security, Politics, Armed Forces, and Instability
Political Geography:
China, Philippines, Southeast Asia, Asia-Pacific, and United States of America

898. Balancing Natural Resources and Human and Social Capital: Pathways to Economic Diversification in Mongolia

Author:
Thorvaldur Gylfason and Jean-Pascal N. Nganou
Publication Date:
09-2023
Content Type:
Special Report
Institution:
The Vienna Institute for International Economic Studies (WIIW)
Abstract:
Economic diversification has gained significant attention as a crucial factor for sustainable development worldwide. This paper addresses the risks associated with extreme specialisation and explores the potential benefits of economic diversification for Mongolia. By comparing Mongolia with its designated aspirational and structural peers, the paper aims to shed light on strategies that can foster economic and societal diversification in the country. Although Mongolia possesses favourable levels of human capital compared with its peers, its unusually high ratio of natural capital to human capital highlights the necessity of reducing reliance on natural resources and promoting human capital-intensive economic activities. The paper examines the implications of declining demand for Mongolia's key minerals, primarily coal, resulting from climate change concerns and evolving investor preferences towards sustainability, China's coal consumption reduction goals, and the enduring impact of the COVID-19 pandemic. Through this analysis, the paper offers insights into pathways for Mongolia to diversify its economy and enhance the well-being of its people by striking a balance between natural resources and human and social capital.
Topic:
Natural Resources, Governance, Democracy, Economic Growth, Human Capital, Diversification, Macroeconomics, Social Capital, Transition, and ASEAN
Political Geography:
Russia, China, Malaysia, Canada, Mongolia, Kazakhstan, Colombia, Armenia, Australia, Qatar, Chile, Peru, United Arab Emirates, Ecuador, and Guyana

899. Trade Balances and International Competitiveness in Cyber-physical, Digital Task-intensive, ICT Capital-intensive and Traditional Industries

Author:
Alexandra Bykova and Roman Stöllinger
Publication Date:
05-2023
Content Type:
Special Report
Institution:
The Vienna Institute for International Economic Studies (WIIW)
Abstract:
In this report, we analyse the international competitiveness of the EU in four industry groups over the period 1995-2018. The groups are delineated by specific factor intensities, where these intensities are assessed from digital tasks performed by labour services and ICT capital stocks. The EU’s positions relating to trade balances, revealed comparative advantages and unit value ratios are assessed relative to its main competitors, such as the US, China, Japan and South Korea. The trade specialisation patterns confirm EU advantages in traditional industries, which still represent the largest part of global trade, and in the group of digital task-intensive industries. In the cyber-physical group of industries, which are characterised by both high digital task and ICT capital intensities, the EU records a trade deficit, although this has been receding in recent years. Competitiveness indicators depict heterogeneity among EU countries. The loss of international competitiveness for some technology front-runners is a worrying sign. On the positive side, however, a reduction in trade deficits or an improvement in product quality and market shares is evident for certain EU countries, especially in the Central European region.
Topic:
International Trade and Finance, European Union, Trade, Digitalization, and International Competition
Political Geography:
Japan, China, Europe, Asia, South Korea, and United States of America

900. Competition Versus Exclusion in U.S.–China Relations: A Choice Between Stability and Conflict

Author:
Jake Werner
Publication Date:
09-2023
Content Type:
Policy Brief
Institution:
Quincy Institute for Responsible Statecraft
Abstract:
The Biden administration’s China policy is pulling in two different directions, but the tension is not widely recognized because every antagonistic measure aimed at China is filed under the heading of competition. As a result, Washington’s debate on China loses the crucial distinction between “competition” — a kind of connection with the potential to be carried on in healthy ways — and “exclusion,” an attempt to sever connection that necessarily leads to conflict if the domain is significant. Biden’s exclusion policies focus on cutting China out of the principal growth sectors in the global economy and the most lucrative and strategically important markets. Administration officials think their approach is sensible and moderate compared to more extreme voices in Washington calling for exclusion in all realms. Even so, the Biden approach is highly destabilizing because both countries consider the targeted areas vital to the future of global authority and economic prosperity, and because the attempt to trap China in a position of permanent subordination represents a serious threat to the legitimacy of China’s leaders. Healthy competition requires a shared stake in the future. In earlier periods, despite sharp tensions and mutual suspicions suffusing the relationship, U.S.–China ties were stabilized first by the joint project of containing Soviet power and then by a shared commitment to market–led globalization. Now that leaders on both sides are disenchanted with key facets of globalization, the two countries are caught in an escalatory cycle of exclusion and retaliation that risks hardening zero–sum pressures in the global system into a permanent structure of hostility. In such a scenario, each country would organize its own society and international partners to undermine the other, dramatically increasing the likelihood of violent conflict. The warning signs are already clear on both sides, as each increasingly interprets every action on the other side as part of a conspiracy to achieve domination. Notwithstanding widespread complacency about the risks of conflict after a tentative diplomatic opening in recent months, the rise of securitized thinking in both countries is steadily building institutional and ideological momentum for confrontation that can only be broken by a new and inclusive direction for the relationship.
Topic:
Foreign Policy, Diplomacy, Bilateral Relations, Political stability, Conflict, Strategic Competition, and Competition
Political Geography:
China, Asia, North America, and United States of America