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881. 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

882. 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

883. 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

884. 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

885. 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

886. 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

887. 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

888. 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

889. 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

890. 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