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5051. Adjusting Chinese Bilateral Trade Data: How Big is China's Trade Surplus

Author:
John W. Schindler and Dustin H. Beckett
Publication Date:
04-2005
Content Type:
Working Paper
Institution:
Board of Governors of the Federal Reserve System
Abstract:
Hong Kong plays a prominent role as a re-exporter of a large percentage of trade bound for or coming from China. Current reporting practices in China and its trading partners do not fully reflect this role and therefore provide a misleading picture of the origin or ultimate destination of Chinese exports and imports. We adjust bilateral trade data for both China and its trading partners to correct for this problem. We also correct for differences due to markups in Hong Kong and different standards for reporting trade (c.i.f. versus f.o.b.). For 2003, we estimate that China's overall trade surplus was between $53 billion and $126 billion, larger than that reported in official Chinese data, but smaller than that reported by China's trading partners. We also provide evidence that, in general, the actual origin of a good that is transshipped through Hong Kong is correctly reported by the importing country, but the final destination of such goods is not correctly reported by the exporting country.
Topic:
Economics and International Trade and Finance
Political Geography:
United States, China, and Hong Kong

5052. Exchange Rate Pass-through to U.S. Import Prices: Some New Evidence

Author:
Jaime Marquez, Mario Marazzi, Nathan Sheets, Joseph Gagnon, Robert J. Vigfusson, Jon Faust, Robert F. Martin, Trevor Reeve, and John Rogers
Publication Date:
04-2005
Content Type:
Working Paper
Institution:
Board of Governors of the Federal Reserve System
Abstract:
This paper documents a sustained decline in exchange rate pass-through to U.S. import prices, from above 0.5 during the 1980s to somewhere in the neighborhood of 0.2 during the last decade. This decline in the pass-through coefficient is robust to the measure of foreign prices that is included in the regression (i.e., CPI versus PPI), whether the estimation is done in levels or differences, and whether U.S. prices are included as an explanatory variable. Notably, the largest estimates of pass-through are obtained when commodity prices are excluded from the regression. In this case, the pass-through coefficient captures both the direct effect of the exchange rate on import prices and an indirect effect operating through changes in commodity prices. Our work indicates that an increasing share of exchange rate pass-through has occurred through this commodity-price channel in recent years. While the source of the decline in passthrough is difficult to pin down with certainty, our work points to several factors, including the reduced share of (commodity-intensive) industrial supplies in U.S. imports and the increased presence of Chinese exporters in U.S. markets. We detect a particular step down in the passthrough coefficient around the time of the Asian financial crisis and document a shift in the export pricing behavior of emerging Asian firms around that time.
Topic:
Economics, Industrial Policy, and International Trade and Finance
Political Geography:
United States and China

5053. China Brief, The Dragon's Thirst for Canadian Oil

Author:
Wenran Jiang, Willy Lam, David G. Wiencek, and Drew Thompson
Publication Date:
05-2005
Content Type:
Policy Brief
Institution:
The Jamestown Foundation
Abstract:
April marked a small leap forward in China's energy relations with Canada. China National Offshore Oil Corp. (CNOOC) put down $150 million for a one-sixth stake in MEG Energy Corp., an upstart oil sands company. This is China's first major investment in Canada's vast oil sands industry. Two days later, Petro China International Co. Ltd. signed a memorandum of understanding with Canada's giant pipeline company Enbridge Inc., promising cooperation in the $2.5 billion Gateway pipeline from Alberta to the West Coast that may supply China with 200,000 barrels of crude a day once completed. China's large energy corporations are predicting more such deals but at a “much bigger” scale.
Topic:
International Relations, Government, and Political Economy
Political Geography:
China, Canada, and Israel

5054. China Brief,Beijing's Growing Politico-Economic Leverage over Ulaanbaatar

Author:
Morris Rossabi, Sergei Blagov, Migeddorj Batchimeg, Alicia Campi, and Wang Wei-Fang
Publication Date:
05-2005
Content Type:
Policy Brief
Institution:
The Jamestown Foundation
Abstract:
Just before the 2005 Tsagaan Sar (or New Year's) celebrations, a Mongolian government official urged his fellow citizens not to buy Chinese gifts for relatives and friends because if they did he estimated that $30 million would enter China's coffer.
Topic:
International Relations, Government, and Political Economy
Political Geography:
China, Eurasia, and Israel

5055. China Brief, Anti-Japanese Protests Pose Long-Term Challenges for Beijing

Author:
You Ji, Willy Lam, Tarique Niazi, and John C.k. Daly
Publication Date:
04-2005
Content Type:
Policy Brief
Institution:
The Jamestown Foundation
Abstract:
It is not surprising that President Hu Jintao and his colleagues decided in mid-April to cool down anti-Japanese protests: a body blow has been dealt to China's reputation as a responsible member of the global community. The fact that the Chinese Communist Party (CCP) administration was close to losing control over xenophobic crowds has again alerted Beijing to the reality that nationalism is a double-edged sword. There are also signs that CCP factions not allied with Hu and his sidekick, Premier Wen Jiabao, have used the worsening crisis with Japan to fault the way that the Hu-Wen team has conducted its foreign policy.
Topic:
International Relations, Government, and Political Economy
Political Geography:
China and Israel

5056. China Brief, Beijing's Alarm Over New “US Encirclement Conspiracy”

Author:
Mohan Malik, Frank Ching, Willy Lam, and William R. Hawkins
Publication Date:
04-2005
Content Type:
Policy Brief
Institution:
The Jamestown Foundation
Abstract:
One of Beijing's worst nightmares seems to be coming true. Having apparently steadied the course in the Middle East, the Bush administration is turning to Asia to tame its long-standing “strategic competitor.” While this particular term has been shelved since 9/11 – and Sino-U.S. relations have improved thanks to China's cooperation with Washington's global anti-terrorist campaign – there are signs at least from Beijing's perspective that Washington is spearheading multi-pronged tactics to contain the fast-rising Asian giant.
Topic:
International Relations, Government, and Political Economy
Political Geography:
China, Israel, and Asia

5057. China Brief, Volume 5, Issue 7 (March 29, 2005)

Publication Date:
03-2005
Content Type:
Policy Brief
Institution:
The Jamestown Foundation
Abstract:
Next month is the 50th anniversary of the Bandung Conference, where Chinese Premier Zhou Enlai and Indonesian President Sukarno set out to carve a space for Asian and African countries based on principles of mutual interest, respect for national sovereignty and non-alignment with either the United States or the Soviet Union. In 1955, an economically and politically isolated China aspired to economic self-sufficiency through a closed, planned economy that was not dependent on imported food or other raw materials.
Topic:
International Relations, Government, and Political Economy
Political Geography:
United States, China, and East Asia

5058. China Brief,Factional Politics and Beijing's Tightening Grip on Hong Kong

Author:
Frank Ching, Eugene Kogan, Willy Lam, and Richard A. Bitzinger
Publication Date:
03-2005
Content Type:
Policy Brief
Institution:
The Jamestown Foundation
Abstract:
The saga of Hong Kong Chief Executive Tung Chee-hwa's fall from grace has highlighted Beijing's tightening grip over the Special Administrative Region (SAR), as well as the dicey future of the “one country, two systems” model. While Tung indicated last Thursday that he had submitted his resignation to Beijing earlier that day because of failing health, news about his impending departure had already been splashed across the Hong Kong papers on March 2
Topic:
International Relations, Government, and Political Economy
Political Geography:
China and Israel

5059. China Brief,U.S.-Japan Security Declaration Causes China to Reconsider Stance on North Korea

Author:
Willy Lam, Arnold Zeitlin, Mikyoung Kim, and Ahmad Lutfi
Publication Date:
03-2005
Content Type:
Policy Brief
Institution:
The Jamestown Foundation
Abstract:
The likelihood of Beijing putting more pressure on Pyongyang regarding the nuclear issue has decreased given Hu Jintao's perception that a plethora of “anti-China” actions have been emanating from the Bush administration. This has increased the possibility of the Chinese Communist Party (CCP) flaunting the North Korean card against America's so-called containment policy against China – as well as Washington's harder line on Iran
Topic:
International Relations, Government, and Political Economy
Political Geography:
China and Israel

5060. China Brief, Editor's Note on Chinese Sea Power Special Issue

Author:
You Ji, Bernard D. Cole, Tarique Niazi, and Tai Ming Cheung
Publication Date:
02-2005
Content Type:
Policy Brief
Institution:
The Jamestown Foundation
Abstract:
As a maritime power, China's naval developments remain an issue of intense interest for Western policymakers as its meteoric economic development paves the way for China's transformation as a major global power. In light of Beijing's quest to secure energy resources, its extensive maritime seaboard, and unresolved territorial disputes, Chinese naval interests deserve continued attention. Undoubtedly, the People's Liberation Army Navy's (PLAN) ability to adequately defend China's sea lines of communication (SLOCs) will be critical to protecting its overseas interests. Jamestown is proud to present this special issue of China Brief on Chinese naval developments and maritime strategy.
Topic:
International Relations, Government, and Political Economy
Political Geography:
China and Israel

5061. China Brief, Thailand's Security and the Sino-Thai Relationship

Author:
Wenran Jiang, Willy Lam, William R. Hawkins, and Anthony Smith
Publication Date:
02-2005
Content Type:
Policy Brief
Institution:
The Jamestown Foundation
Abstract:
If one theme characterizes Thailand's foreign policy, it is the ability to take advantage of the rivalries of larger powers. Skillfully avoiding occupation during various colonial enterprises, Thai foreign policy has cleverly sensed the prevailing winds and adapted accordingly. Thailand's close relationship with China – arguably one of the closest in Southeast Asia – sits alongside an alliance relationship with the United States. But the re-emergence of substantial independence sentiment in Thailand's southern provinces has now put Thai diplomacy to the test. Although there is no direct link, in a sense Thailand's separatist problem parallels China's own difficulties in Xinjiang. Thailand's latest challenge, this time domestic, finds that country sharing something of a similar strategic outlook to China.
Topic:
International Relations, Government, and Political Economy
Political Geography:
China and Israel

5062. China Brief, Taiwan's Election Results: Good News, Bad News, Or No News?

Author:
Eric Hagt, Willy Lam, Drew Thompson, Gill Bates, Daniel C. Lynch, and Chen Yali
Publication Date:
01-2005
Content Type:
Policy Brief
Institution:
The Jamestown Foundation
Abstract:
The good news about the Taiwan Legislative Yuan elections last month, from the perspective of Beijing, Washington, and at least half of the Taiwan electorate, is that nothing will happen. Chen Shui-bian and his pan-green coalition remained a legislative minority, meaning a radical push ahead for more sovereignty – and the instabilities that might bring for cross-Strait relations – does not appear in the cards for now.
Topic:
International Relations, Government, and Political Economy
Political Geography:
China and Israel

5063. China and the Six-Party Talks: The New Turn to Mediation Diplomacy

Author:
Samuel S. Kim
Publication Date:
09-2005
Content Type:
Journal Article
Journal:
International Journal of Korean Studies
Institution:
International Council on Korean Studies
Abstract:
During more than a half century of its checkered international life, the People's Republic of China (PRC) has not been known for self-initiated mediation diplomacy in the world's trouble spots. Thus, China's uncharacteristically proactive mediation efforts in the second US-DPRK nuclear standoff, both reflects and affects significant changes in its foreign-policy thinking and behavior. Beijing's seemingly abrupt policy shift provides a timely case study for examining its changing role in the shaping of a new international order in East Asia in general and on the Korean peninsula in particular.
Political Geography:
China and Beijing

5064. Raising the Salience of Mexico and Canada

Author:
Chappell Lawson
Publication Date:
04-2005
Content Type:
Policy Brief
Institution:
MIT Center for International Studies
Abstract:
Canada and Mexico rarely figure high on the list of American priorities. Policymakers focus on conflicts in the Middle East; specialists in international relations discuss China's growing influence; and newspapers cover the international crisis du jour. It is easy to forget about two countries that appear to pose no direct or immediate threat to U.S. interests.
Topic:
Foreign Policy, Politics, and Regional Cooperation
Political Geography:
China, America, Middle East, Canada, North America, and Mexico

5065. Agricultural Policy Reform in China

Publication Date:
11-2005
Content Type:
Policy Brief
Institution:
The Organisation for Economic Co-operation and Development
Abstract:
China is the world's sixth largest economy and its most populous country, home to 1.3 billion people or 21% of the Earth's total population. But it faces a major challenge in providing its people with food – China has only 10% of the world's arable land and only one quarter of the average world water resources per person.
Topic:
Agriculture, Civil Society, and Economics
Political Geography:
China and Asia

5066. Agricultural Policy Reform in Brazil

Publication Date:
10-2005
Content Type:
Policy Brief
Institution:
The Organisation for Economic Co-operation and Development
Abstract:
Brazil is a major player in the global economy, one of the world's 10 largest economies, with a population of 180 million and vast natural resources. Brazil's agricultural land is exceeded only by China, Australia and the United States, and agriculture plays an important role in the country's economy. Primary agriculture accounts for 8% of GDP, while agricultural products account for about 30% of exports.
Topic:
International Relations, Agriculture, and Economics
Political Geography:
United States, China, Brazil, South America, and Australia

5067. China's Governance in Transition

Publication Date:
09-2005
Content Type:
Policy Brief
Institution:
The Organisation for Economic Co-operation and Development
Abstract:
China's economic reforms over the past two decades have brought remarkable growth, the development of a vibrant private sector and significant reform of the state-owned sector. Private businesses now represent some 57% of GDP, and productivity in the state-owned sector has improved significantly. However, a number of problems threaten to undermine prospects for sustainable growth. These notably include social tensions, partly due to increasing inequality within society and massive migration to the cities, but also linked to corruption, insufficient public services and rising unemployment as millions of workers have been laid off in the reform of the state-owned sector, while agriculture still displays huge structural under-employment.
Topic:
Development, Economics, and Government
Political Geography:
China and Asia

5068. Economic Survey of China, 2005

Publication Date:
09-2005
Content Type:
Policy Brief
Institution:
The Organisation for Economic Co-operation and Development
Abstract:
China's economic growth has averaged 9½% per cent over the past two decades. The rapid pace of economic change is likely to be sustained for some time. These gains have contributed not only to higher personal incomes, but also to a significant reduction in poverty. At the same time, the economy has become substantially integrated with the world economy. A large part of these gains have come through profound shifts in government policies. Reforms have allowed market prices and private investors to play a significant role in production and trade.
Topic:
Development, Economics, and Emerging Markets
Political Geography:
China and Asia

5069. Can America Rebuild the Crumbling State of U.S.-Asia Relations?

Author:
Kishore Mahbubani
Publication Date:
03-2005
Content Type:
Policy Brief
Institution:
Weatherhead East Asian Institute, Columbia University
Abstract:
Ambassador Mahbubani's address looked at previous American actions that built "reservoirs of good will" that ultimately assisted America in its ideological victory in the Cold War, especially in Asia: its sharing of the "American dream" with the world; its openness to foreign students; the international order built by the United States after 1945; and, finally, the stabilizing effects of its military presence in East Asia. However, the end of the Cold War has brought changes, and the gulf between America's self-perception and the way it is seen in the Islamic world, and China in particular, demonstrate the dwindling of those good will reservoirs.
Topic:
Foreign Policy, Defense Policy, Emerging Markets, International Trade and Finance, and Bilateral Relations
Political Geography:
United States, China, America, and East Asia

5070. Dangerous Strait: The U.S.-Taiwan-China Crisis

Author:
Nancy Bernkopf Tucker
Publication Date:
03-2005
Content Type:
Book
Institution:
Columbia University Press
Abstract:
Dangerous Strait provides fresh perspectives on the complex political, economic, and strategic issues of the Taiwan Strait. Essays examine a variety of topics, which include the movement for independence and its place in Taiwanese domestic politics, the underlying weaknesses of democracy in Taiwan, and the significance of China and Taiwan's economic interdependence. In the area of security, contributors provide incisive critiques of Taiwan's incomplete military modernization, the strains in U.S.-Taiwan relations and their differing interpretations of China's intentions, and the misguided inclination to abandon Washington's traditional policy of strategic ambiguity.
Topic:
International Security
Political Geography:
China, Taiwan, and Asia-Pacific
Publication Identifier:
9780231509633
Publication Identifier Type:
ISBN

5071. If Not Balancing, What? Forms of Resistance to American Hegemony

Author:
Jeremy Pressman
Publication Date:
03-2004
Content Type:
Working Paper
Institution:
Belfer Center for Science and International Affairs, Harvard University
Abstract:
While traditional understandings of international affairs would predict the formation of a balancing coalition against the dominant U.S. position in world affairs, some analysts now contend that the U.S. advantage is so comprehensive and so unprecedented that we have not seen and will not see balancing behavior on the part of second tier powers like China, Russia, Japan, and Germany. It would be a mistake, however, to assume that the absence of balancing means the United States will not face any meaningful opposition in the international arena. Though in the short term a bloc of states is unlikely to form a counter-coalition. the historical form of resistance to dominant powers other states still find important ways to resist U.S. dominance.
Topic:
International Relations and Defense Policy
Political Geography:
Russia, United States, Japan, China, and Germany

5072. Global Economic Governance at a Crossroads: Replacing the G-7 with the G-20

Author:
Johannes F. Linn and Colin I. Jr. Bradford
Publication Date:
04-2004
Content Type:
Policy Brief
Institution:
The Brookings Institution
Abstract:
Finance ministers representing the Group of 7 (G-7) industrialized countries met in Boca Raton, Florida, in early February amid concerns about the weakening of the U.S. dollar. One factor in the dollar's decline is the U.S. trade deficit, which is partly due to the undervalued Chinese yuan. The involvement of China, which is not a G-7 member, illustrates both the glaring gap in global governance and the increasing economic and policy interdependence between industrial countries and major emerging market economies (EMEs). As one observer, referring to the Boca Raton meeting, put it, "China is the 800-pound gorilla and it isn't even part of the negotiations."
Topic:
International Relations, Foreign Policy, Government, and Political Economy
Political Geography:
United States and China

5073. Deterring Conflict in the Taiwan Strait: The Successes and Failures of Taiwan's Defense Reform and Modernization Program

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

5074. Assessing America's War on Terror: Confronting Insurgency, Cementing Primacy

Author:
Ashley J. Tellis
Publication Date:
12-2004
Content Type:
Working Paper
Institution:
Carnegie Endowment for International Peace
Abstract:
During the 1990s the United States and its allies enjoyed a much sought-after period of prosperity and tranquility following the end of the Cold War. In hindsight, however, it is now apparent that Al Qaeda, a fiercely anti-American global terrorist network, was taking root in over sixty countries during this period, culminating in the devastating September 11 attacks on New York and Washington, D.C. The Bush administration, which had entered office determined to secure U.S. primacy amid the emergence of major power centers in Asia, such as China, soon found itself forced to confront a worldwide Islamist insurgency. This study analyzes the relevance of terrorist groups as substatal actors in international politics, their influence on deeper dynamics of the international system, and the challenges facing the United States posed by transnational terrorist organizations. It argues that international terrorism, although currently salient, does not necessarily replace or even alter the traditional concerns of international politics, but rather subsists among them. On balance, the United States has managed these interlocking challenges with partial success, and needs to pay greater attention to pursuing the legitimacy and protecting the economic foundations of its power. Failing to do so, or waging a poorly defined “war against all,” carries the risk of far-reaching economic and political reverberations that may, in the not-too-distant future, enervate the United States, undermine its legitimacy as the sole superpower, and gradually erode continued American dominance in the world order.
Topic:
Terrorism and War
Political Geography:
United States, China, New York, Washington, Middle East, and Asia

5075. President Bush's Muddled Policy on Taiwan

Author:
Ted Galen Carpenter
Publication Date:
03-2004
Content Type:
Policy Brief
Institution:
The Cato Institute
Abstract:
The Bush administration has gone from one extreme to the other with regard to U.S. policy on Taiwan. During the early months of his administration, the president gave a seemingly unconditional pledge to defend Taiwan from attack by mainland China—going significantly further than his predecessors had. He followed that assurance by approving the largest arms sales package to Taiwan in nearly a decade. In marked contrast to the Clinton years, high-profile visits by Taiwanese leaders to the United States have been encouraged, despite Beijing's protests.
Topic:
Foreign Policy, Development, and Politics
Political Geography:
United States, China, and Asia

5076. North Korea's Nuclear Ambition: Causes and Consequences

Author:
Mustafa Kibaroglu
Publication Date:
03-2004
Content Type:
Journal Article
Institution:
Uluslararasi Iliskiler
Abstract:
Because of the inferiority complex first against Japan, then against the United States, the North Korean leadership embarked upon nuclear weapons development program from the inception of their state. Due to the tangible and comprehensive support provided by the Soviet Union and the People's Republic of China in the field of nuclear science and technology, North Korea has seemingly passed a significant threshold on the way to become a de facto nuclear weapons state. As of 2004, it is widely believed that North Korea has already extracted enough plutonium for a couple of nuclear warheads. Combined with its 1,350 kilometer-range ballistic missile capability, North Korea stands as one of the most significant threats to regional and global security and stability. In the aftermath of the September 11 terror attacks on the United States, Russia and China have greatly reduced their support to North Korea and intensified their efforts to mend the differences between that country and the US, just like Japan and South Korea did for long, with a view to not to pave the way to the escalation of a crisis on the Korean Peninsula.
Topic:
Nuclear Weapons and Weapons of Mass Destruction
Political Geography:
United States, Japan, China, Asia, South Korea, North Korea, Soviet Union, and Korean Peninsula

5077. Future of the Shanghai Cooperation Organization and China

Author:
Selçuk Çolakoglu
Publication Date:
03-2004
Content Type:
Journal Article
Institution:
Uluslararasi Iliskiler
Abstract:
Sino-Russian bilateral relations have steadily developed during the 1990s. With the help of the Shanghai Cooperation Organization (SCO), which was established in 1996, China and Russia had the chance to balance the hegemony of the US in the world and to prevent the interfering of other great powers to central Eurasian issues. Central Asian countries, which have been historically and strategically squeezed between Russia and China, have also taken part in the SCO. With the US military operation of Afghanistan after September 11th terrorist attacks in 2001, the new era has started in Central Asia and the SCO has been affected negatively within this process. The attitude of Russia and China is very important for the future of the SCO as an organization. The SCO will be able to protect its entity and continue to develop, as long as the cooperation between China and Russia carries on depending on mutual interests.
Topic:
Regional Cooperation and Bilateral Relations
Political Geography:
Russia, United States, China, Central Asia, and Asia

5078. China and Oil: The Middle East Dimension

Author:
Simon Henderson
Publication Date:
09-2004
Content Type:
Policy Brief
Institution:
The Washington Institute for Near East Policy
Abstract:
Rapidly growing Chinese oil demand was one of the key factors influencing discussions at this week's meeting of the Organization of Petroleum Exporting Countries (OPEC), convened in Vienna by ministers from OPEC member states. During the first eight months of 2004, Chinese oil imports surged by 40 percent compared with the same period in 2003, contributing to the rapid rise in oil prices during the summer. China, the world's most populous nation, knows its economic growth must be fueled by oil imports, with the Middle East serving as the principal source. Accordingly, Beijing has begun to make energy security a priority, mounting a campaign to build improved commercial and diplomatic relations with Middle Eastern states. These efforts will entail increased competition with U.S. influence in the region.
Topic:
Security, Oil, and Religion
Political Geography:
United States, China, Middle East, and Arab Countries

5079. Globalization and Regional Income Inequality: Evidence from within China

Author:
Guanghua Wan, Zhao Chen, and Ming Lu
Publication Date:
11-2004
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
China's recent accession to the WTO is expected to accelerate its integration into the world economy, which aggravates concerns over the impact of globalization on the already rising inter-region income inequality in China. This paper discusses China's globalization process and estimates an income generating function, incorporating trade and FDI variables. It then applies the newly developed Shapley value decomposition technique to quantify the contributions of globalization, along with other variables, to regional inequality. It is found that (a) globalization constitutes a positive and substantial share to regional inequality and the share rises over time; (b) capital is one of the largest and increasingly important contributor to regional inequality; (c) economic reform characterized by privatization exerts a significant impact on regional inequality; and (d) the relative contributions of education, location, urbanization and dependency ratio to regional inequality have been declining.
Topic:
Economics and Globalization
Political Geography:
China and Asia

5080. Output and Price Fluctuations in China's Reform Years: What Role did Money Play?

Author:
Guanghua Wan and Yin Zhang
Publication Date:
08-2004
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
The Chinese economy underwent cyclical fluctuations in growth and inflation in the reform period. Contrasting views exist on the role of money in such fluctuations. This paper assesses these views employing structural VEC models based on the exchange equation. It is found that in the long run money accommodates, rather than causes, changes in output and prices. In the short run, price fluctuations are mostly attributable to shocks that have permanent effects on prices and money but not on real output. These shocks also account for a large proportion of fluctuations in money, and strongly influence the movements of output.
Topic:
Economics, Emerging Markets, and International Trade and Finance
Political Geography:
China and Asia

5081. What Accounts for China's Trade Balance Dynamics?

Author:
Guanghua Wan and Yin Zhang
Publication Date:
08-2004
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
This paper proposes a structural VAR model which extends the frameworks of Hoffmaister and Roldós (2001) and Prasad (1999). The model is then used to analyse the sources of China's trade balance fluctuations in the period of 1985–2000. Efforts are made to distinguish the forces which underlie the long-run trend in trade balance from those with transitory impacts. The effects of four types of shock are examined—the foreign supply shock, the domestic supply shock, the relative demand shock, and the nominal shock. Among other findings, two emerge as important. First, the movements in China's trade are largely the result of real shocks. Second, the Renminbi is undervalued, yet changes in the exchange rate bear little on the trade balance. Therefore, monetary measures would not suffice to redress China's trade 'imbalance'.
Topic:
Economics, Emerging Markets, and International Trade and Finance
Political Geography:
China and Asia

5082. China's Business Cycles: Perspectives from an AD–AS Model

Author:
Guanghua Wan and Yin Zhang
Publication Date:
08-2004
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
This paper represents a first attempt to study China's business cycles using a formal analytical framework, namely, a structural VAR model. It is found that: (a) demand shocks were the dominant source of macroeconomic fluctuations, but supply shocks had gained more importance over time; (b) the driving forces of demand shocks were consumption and fixed investment in the first cycle of 1985–90, but shifted to fixed investment and world demand in the second cycle of 1991–96 and the post-1997 deflation period; and (c) macroeconomic policies did not play an important part either in initiating or counteracting cyclical fluctuations.
Topic:
Demographics, Economics, and Emerging Markets
Political Geography:
China

5083. Divergent Means and Convergent Inequality of Incomes among the Provinces and Cities of Urban China

Author:
John Knight, Li Shi, and Zhao Renwei
Publication Date:
08-2004
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
Two precisely comparable national household surveys relating to 1988 and 1995 are used to analyse changes in the inequality of income in urban China. Over those seven years province mean income per capita grew rapidly but diverged across provinces, whereas intra-province income inequality grew rapidly but converged across provinces. The reasons for these trends are explored by means of various forms of decomposition analysis. Comparisons are also made between the coastal provinces and the inland provinces. The decompositions show the central role of wages, and within wages profitrelated bonuses, together with the immobility of labour across provinces, in explaining mean income divergence. The timing of economic reforms helps to explain the convergence of intra-province income inequality. Policy conclusions are drawn.
Topic:
Demographics, Development, and Economics
Political Geography:
China and Asia

5084. Income Inequality in Rural China: Regression-based Decomposition Using Household Data

Author:
Guanghua Wan and Zhangyue Zhou
Publication Date:
08-2004
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
A considerable literature exists on the measurement of income inequality in China and its increasing trend. Much less is known, however, about the driving forces of this trend and their quantitative contributions. Conventional decompositions, by factor components or by population subgroups, only provide limited information on the determinants of income inequality. This paper represents an early attempt to apply the regression-based decomposition framework to the study of inequality accounting in rural China, using household level data. It is found that geography has been the dominant factor but is becoming less important in explaining total inequality. Capital input emerges as a most significant determinant of income inequality. Farming structure is more important than labour and other inputs in contributing to income inequality across households.
Topic:
Demographics, Development, and Economics
Political Geography:
China and Asia

5085. Fifty Years of Regional Inequality in China: A Journey through Central Planning, Reform, and Openness

Author:
Ravi Kanbur and Xiaobo Zhang
Publication Date:
08-2004
Content Type:
Working Paper
Institution:
United Nations University
Abstract:
This paper constructs and analyses a long-run time-series for regional inequality in China from the Communist Revolution to the present. There have been three peaks of inequality in the last fifty years, coinciding with the Great Famine of the late 1950s, the Cultural Revolution of the late 1960s and 1970s, and finally the period of openness and global integration in the late 1990s. Econometric analysis establishes that regional inequality is explained in the different phases by three key policy variables; the ratio of heavy industry to gross output value, the degree of decentralization, and the degree of openness.
Topic:
Development, Economics, Industrial Policy, and Political Economy
Political Geography:
China and Asia

5086. Taiwan Strait IV: How an Ultimate Political Settlement Might Look

Publication Date:
02-2004
Content Type:
Working Paper
Institution:
International Crisis Group
Abstract:
Each side's most preferred solution for resolving the continuing Taiwan Strait issue – in the case of Taipei, widely recognised de jure independence; and in the case of Beijing, reunification of China on the same 'one country, two systems' basis as Hong Kong – are both non-starters. Neither society is likely to accommodate the other or change to the degree necessary to make either option realistically achievable, even ten or fifteen years down the road. If the risk of conflict across the Taiwan Strait – too serious to be accepted with equanimity, as the tensions of the last few months have shown – is to be reduced, then there has to be new thinking about what an ultimate political settlement might look like, and how to get there.
Topic:
Government, Politics, and Regional Cooperation
Political Geography:
China, Israel, Taiwan, Beijing, East Asia, and Hong Kong

5087. Energy insecurity: China, India and Middle East oil

Author:
Anthony Bubalo and Mark P Thirlwell
Publication Date:
12-2004
Content Type:
Policy Brief
Institution:
Lowy Institute for International Policy
Abstract:
The rapid expansion of their economies has seen China and India become voracious consumers of energy. Oil, much of it imported from the Middle East, has become an increasingly important part of their energy needs. Both governments are conscious that this growing reliance on one of the world's most unstable regions leaves their countries vulnerable to supply disruptions and/or price fluctuations. As a result, energy security has become a key foreign policy objective and, particularly in the case of China, is shaping their approach to the Middle East. This issues brief provides an overview of current energy demand trends and raises for discussion some of the potential longer term strategic implications of this growing dependence on Mid-East oil.
Topic:
Energy Policy
Political Geography:
China, Middle East, India, and Asia

5088. River at risk: the Mekong and the Water Politics of China and Southeast Asia

Author:
Milton Osborne
Publication Date:
08-2004
Content Type:
Working Paper
Institution:
Lowy Institute for International Policy
Abstract:
By the middle of March 2004 there was growing concern in Thailand, Laos and Cambodia about the level of the Mekong River. Poor rains in the wet season of 2003 and a subsequent protracted dry period appeared to be largely to blame for the sharply lower level of water in the Mekong by comparison with 'normal' years. But the unusually dry season may not have been the only factor at work. Officials in Thailand have claimed that Chinese authorities have endeavoured to limit the flow of water out of the dams already built on the Mekong in China's Yunnan province, as they undertake new dam construction and continue work to clear the river of obstacles to navigation. At the same time, Thai officials suggest that unusual volatility in the river's flow reflects the manner in which China has been closing its dam gates. Gates are closed for three days, before opening them for one day to allow Chinese cargo vessels to travel to and from river ports in the southern Yunnan province and northern Thailand.
Topic:
Environment, Political Economy, and Politics
Political Geography:
China, Cambodia, Thailand, and Southeast Asia

5089. The Beijing 2008 Olympic Games: China in the limelight

Author:
John Bowan
Publication Date:
08-2004
Content Type:
Policy Brief
Institution:
Lowy Institute for International Policy
Abstract:
Beijing's successful bid for the 2008 Olympic Games gives China a unique opportunity to signal its emergence as a leading player in the mainstream of international affairs. The Games will provide a unique opportunity to showcase to the international public, as well as to foreign governments and international business, China's technical and organisational capabilities, its cultural and social achievements, and its standing and potential as a global economic power and partner. The ongoing strong commitment to the Games by the national Government, and the rapid and efficient progress made to date by the Beijing Olympic organisers, are impressive; from a technical point of view, China's challenging Olympic project is on track. The Games will make some limited contribution to the extraordinary economic and technological development China is making, particularly in environmental protection. Similarly, the Games have the potential to make some incremental contribution to improving human rights in China. Their significance as a force for change in this area should not be overestimated, however, and the evidence is that the Olympic influence on China's human rights has so far been limited. Despite the good cooperation at the Olympic level that has developed between China and Taiwan in recent years, the hosting of the Games would not stand in the way of drastic action by China if Taiwan pursued independence beyond the limits of its tolerance. Australia's cooperative Olympic links with China, developed during Beijing's bid, add a valuable dimension to the strong and important relationship between the two countries.
Topic:
International Relations, Civil Society, and Development
Political Geography:
China and Asia

5090. What Kind of Landing for the Chinese Economy?

Author:
Nicholas R. Lardy and Morris Goldstein
Publication Date:
11-2004
Content Type:
Policy Brief
Institution:
Peterson Institute for International Economics (PIIE)
Abstract:
Rarely has the outlook for the Chinese economy been so contested. The financial press widely quotes three alternative perspectives on the short-and medium-term outlook. One school argues that the Chinese government's recent efforts to rein in overly rapid growth are working and that the economy is now on a glide path to what is referred to as a soft landing. While “soft landing” is usually not fully defined, its chief feature in this case is that Chinese economic growth slows modestly from its current pace of 9 to 10 percent to around 8 percent and that the rate of job creation does not slow enough to constitute a major political challenge for the regime. At the other end of the spectrum is the hard landing school, which argues that the authorities to date have not tightened sufficiently, that loan and investment growth remain excessive, and that the authorities soon will be forced to take more drastic action that will trigger a sharp correction. Finally, the no landing school argues that China's efforts to slow growth modestly are misguided since the economy was not overheating in 2003 and early 2004. In this view, China is in the early stages of a secular boom that has several additional years to run.
Topic:
Economics and Political Economy
Political Geography:
China and Asia

5091. China Bashing 2004

Author:
Gary Clyde Hufbauer and Yee Wong
Publication Date:
09-2004
Content Type:
Policy Brief
Institution:
Peterson Institute for International Economics (PIIE)
Abstract:
On April 26, 2004, Senator John Kerry released his six-point trade pro - gram, “Trade Enforcement: Asleep at the Wheel,” and conspicuously targeted China for violating worker rights, dumping, and supporting “illegal currency manipulation” (Kerry 2004). Five days earlier, senior Bush administration officials met with Chinese Vice Premier Wu Yi to settle a few trade disputes (e.g., WiFi) but did not resolve the most contentious ones (exchange rates, semiconductors, and labor rights).
Topic:
Development, Globalization, and International Trade and Finance
Political Geography:
China and Asia

5092. Doubling the Global Work Force: The Challenge of Integrating China, India, and the Former Soviet Bloc into the World Economy

Author:
Richard B. Freeman
Publication Date:
11-2004
Content Type:
Working Paper
Institution:
Peterson Institute for International Economics (PIIE)
Abstract:
In 1985, the global economic world (N. America, S. America, Western Europe, Japan, Asian Tigers, Africa) consisted of 2.5 billion people. In 2000 as a result of the collapse of communism, India's turn from autarky, China's shift to market capitalism, global economy encompassed 6 billion people. Had China, India, and the former Soviet empire stayed outside, global economy would have had 3.3 billion.
Topic:
International Relations, Economics, and Government
Political Geography:
Africa, Japan, China, America, India, Asia, and Western Europe

5093. What Went Right in Japan

Author:
Adam S. Posen
Publication Date:
09-2004
Content Type:
Working Paper
Institution:
Peterson Institute for International Economics (PIIE)
Abstract:
Japan's recovery is strong. Real GDP growth will exceed 4 percent this year and likely be 3 percent or higher in 2005 and perhaps even 2006. The Japanese economy has been growing solidly for the last five quarters (average real 3.2 percent annualized rate), and the pace is sustainable, given Japan's underlying potential growth rate (which has risen to 2 to 2.5 percent per year) and the combination of catch-up growth closing the current output gap and some reforms that will raise the growth rate for quarters to come (though not permanently). Indicators of domestic demand beyond capital investment are increasingly positive, including housing starts bottoming out, inventories drawing down, and diminished deflation. Moreover, on the external side, while China was the main source of export growth in 2003, the composition of exports has become more balanced this year and is widening beyond that seen in other recoveries. Just as in the United States and other developed economies, a sharp slowdown in Chinese growth and a sustained further increase in energy prices represent the primary risks to the outlook.
Topic:
Development and Economics
Political Geography:
United States, Japan, China, Israel, East Asia, and Asia

5094. Adjusting China's Exchange Rate Policies

Author:
Morris Goldstein
Publication Date:
06-2004
Content Type:
Working Paper
Institution:
Peterson Institute for International Economics (PIIE)
Abstract:
During the past year, there has been considerable debate about, and much international criticism of, China's exchange rate and its currency regime. Yes, criticism of China in the United States would likely be more muted if the ongoing recovery were not so “jobless,” if employment in the US manufacturing sector had not (mainly for other reasons) declined so much in the three-year run-up to this presidential elect ion year, if so much attention were not focused on the very large bilateral US trade deficit with China instead of China's economically—more meaningful overall balance-of-payments position, and if the United States had not done such a poor job of improving its saving-investment imbalance—particularly in the public sector.
Topic:
Economics and International Trade and Finance
Political Geography:
United States, China, and Asia

5095. Considering China as a Potential Member of the Nuclear Suppliers Group

Author:
Andrew Prosser
Publication Date:
05-2004
Content Type:
Working Paper
Institution:
Center for Defense Information
Abstract:
In January 2004, China formally requested to join the Nuclear Suppliers Group (NSG), an informal multilateral export control regime that aims to contribute to the nonproliferation of nuclear weapons through the coordination and implementation of guidelines which govern transfers of nuclear material and technology. The NSG's membership comprises the principal nuclear supplier states in Europe and the Americas, as well as Australia, Japan, New Zealand, the Republic of Korea, South Africa, and a number of former Eastern Bloc states, including Russia. The group's decisions, including those concerning the admission of new members, are made on a consensus basis, but the informal nature of the organization means that its decisions cannot be construed as legally binding upon its member countries.
Topic:
Security, Arms Control and Proliferation, and Nuclear Weapons
Political Geography:
Japan, China, Asia, South Africa, Australia, and New Zealand

5096. The World's Nuclear Arsenals

Author:
Ali Chaudhry and Andrew George
Publication Date:
07-2004
Content Type:
Working Paper
Institution:
Center for Defense Information
Abstract:
Though the exact size of China's nuclear arsenal is unknown, current best estimates are that China has about 280 strategic weapons, and a smaller number — about 120 — of tactical weapons. The weapons are based on intercontinental ballistic missiles (ICBMs) and strategic bombers, with a naval component under research.
Topic:
Security, Arms Control and Proliferation, Nuclear Weapons, and Science and Technology
Political Geography:
China

5097. The Economic aspects of security in South Eastern Europe

Author:
Mladen Stanisis
Publication Date:
01-2004
Content Type:
Working Paper
Institution:
Austrian National Defence Academy
Abstract:
In the process of constructing a safety structure in the South Eastern Europe one must bear in mind the assumptions on which the new global safety structure is based, and those are: 1. Europe, and the surrounding area of the region, is becoming more stable and peaceful, and there are no indications that there will be any armed conflicts between states in the near future. 2. The situation of volatility and insecurity is spreading globally due to unconventional threats, like international terrorism, weapons of mass destruction, drug-trafficking, illegal immigration etc. 3. The EU, as an institution of international integration, and NATO, as an international organisation, are starting to see eye to eye and are co-ordinating their activities on the basis of compatible civilisation values against the stated threats and in attempt to further economic development of the EU. 4. The role and the importance of multilateral organisations are diminishing. The emphasis is being put on the importance of bilateral relations, especially by the last superpower, the USA, whose policy of unilateralism will surely dominate international relations for some time to come. 5. Other stakeholders in the domain of international relations, with the potential to become partners of the USA in the process of reaffirming multilateral relations. The EU, the People's Republic of China, the Russian Federation and the UN have just begun adapting to new relations and there are no indications that the position of the USA as the leading world power would be contested. 6. The globalisation process dominates all aspects of international relations on the basis of scientific and technological revolution, as well as revolution in the communication of information. It will be a consistent mechanism of transferring the model of liberal democracy internationally.
Topic:
International Relations, Security, Defense Policy, and NATO
Political Geography:
United States, China, Europe, and Central Asia

5098. Could Humphrey Have Gone to China? Measuring the Electoral Costs and Benefits of Making Peace

Author:
Kenneth Schultz
Publication Date:
04-2004
Content Type:
Working Paper
Institution:
Center for International Studies, University of Southern California
Abstract:
Theoretical arguments for why “it takes a Nixon to go to China” emphasize either the superior credibility that hawks have in advocating peace or the superior political benefits they enjoy in doing so. This paper looks for evidence of these effects in the canonical case: that of U.S. rapprochement with China in the early 1970s. I use counterfactual simulations on data from the 1968 National Election Study to explore the political effects of a proposal to open relations with China, focusing on whether and how those effects would depend on who made the proposal: Richard Nixon or Hubert Humphrey. I find evidence of both the credibility and electoral security effects hypothesized in the theoretical literature. In particular, there is a very dramatic asymmetry in the political costs and benefits of proposing peace: while such a proposal would have been electorally costly for Humphrey, it could have been an electoral boon for Nixon.
Topic:
International Relations and Government
Political Geography:
United States, China, Asia, and North America

5099. China and State/Space: Scale Relations and the City in an Era of Globalization

Author:
Carolyn Cartier
Publication Date:
03-2004
Content Type:
Working Paper
Institution:
Center for International Studies, University of Southern California
Abstract:
Since the onset of reform and opening in the People's Republic of China after 1978, decentralization of state power has arguably been the most consequential transformation of the Chinese political economy, underpinning the dynamics of economic growth and state-society relations. The growth of the number and size of cities and the urban population—urbanization—are the outstanding geographical manifestations of these processes. How should we analyze the relationships between them? This chapter introduces scale relations as a basis for assessing the decentralization of state power and urbanization, and to demonstrate the 'rescaling' of the Chinese state in an era of globalization as spatial processes and their manifestation at the urban scale.
Topic:
Globalization and Government
Political Geography:
China and Asia

5100. CERI: Political Opposition, Nationalism and Islam among the Uygurs in Xinjiang Abstract

Author:
Rémi Castets
Publication Date:
10-2004
Content Type:
Working Paper
Institution:
Centre d'Etudes et de Recherches Internationales (CERI)
Abstract:
With a substantial Uyghur population, Xinjiang (East Turkistan) is, after Uzbekistan, the second largest Muslim Turkic-speaking area of settlement area in Central Asia. Annexed by China fairly late, this territory has a tumultuous history punctuated by foreign interference and separatist insurrections. Through strict control of the regional political system and a massive influx of Han settlers, the communist regime has managed to integrate this strategic region and its large oil deposits into the rest of China.
Topic:
Nationalism, Politics, and Religion
Political Geography:
China, Central Asia, Asia, and Uzbekistan