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1. The South Korea-U.S. Summit and Measures to Enhance Bilateral Cooperation on North Korea

Author:
Jechun Kim
Publication Date:
05-2023
Content Type:
Commentary and Analysis
Institution:
East Asia Institute (EAI)
Abstract:
Jechun Kim, a professor at Sogang University, points out that the Biden administration appears to prioritize competition with China, the Taiwan issue, and the Ukraine War, despite the growing threat posed by North Korea’s nuclear and missile capabilities. In response, Kim underlines the importance of issuing a “2023 US-ROK Joint Statement on North Korea” after President Yoon’s visit to the White House. Given the fading interest and support for the reunification of the Korean Peninsula, Professor Kim emphasizes the significance of addressing the rapid advancement in DPRK’s nuclear capabilities. He then suggests that South Korea needs to create a conducive environment for peaceful reunification through strong support from the U.S. for the “Audacious Initiative.”
Topic:
Diplomacy, International Cooperation, Nuclear Weapons, Bilateral Relations, and Denuclearization
Political Geography:
Asia, South Korea, North Korea, North America, and United States of America

2. ROK-US Alliance: Linchpin for a Free and Open Indo-Pacific

Author:
Rob York, Chloe Clougher, Julian Gluck, Jaeeun Ha, and Lindsay Horikoshi
Publication Date:
06-2023
Content Type:
Working Paper
Institution:
Pacific Forum
Abstract:
The US-ROK alliance in 2023 celebrates its 70th anniversary, and in both countries remains broadly popular. Previous doubts that both countries have had about the other’s commitment have largely given way to a sense of shared opportunities, and shared challenges. Not only is there an ever-more belligerent North Korea, with its growing nuclear and missile arsenals, but the People’s Republic of China uses both military and economic means to coerce other countries and Russia has demonstrated a willingness to upend norms, redraw borders, and dare former partners (including Seoul) to risk its ire. This is also an era of the minilateral, as the US seeks to move past its previous hub-and-spokes alliance system in Asia and draw its partners into closer cooperation. South Korea, especially under its current administration, demonstrates increased interest in becoming a regional player, with its recent gestures toward old frenemy Japan representing a key test: historical differences between the US’ two closest partners have prevented a “normal” relationship from emerging despite many similarities in political systems, values, and interests, and Korean public opinion remains skeptical of the Seoul-Tokyo rapprochement. Furthermore, there is always a chance that issues complicating US-ROK relations in the past—conduct by US military personnel in Korea, trade disputes, environmental concerns related to US bases—could resurface. All of these issues present challenges for the alliance that will require addressing. In that light, the Pacific Forum, with the generous support of the Korea Foundation, has launched the “ROK-US Next Generation Leaders Initiative” program, bringing together young burgeoning scholars and analysts from both countries to discuss pressing issues in the alliance the way forward. This edited volume contains edited papers on pressing topics—extended deterrence, North Korea, China, Russia, Japan, and much more—by rising scholars we expect to see addressing these issues in the years to come. Their active engagement, we believe, will help the alliance endure another 70 years, will providing for the security and prosperity of both countries.
Topic:
Foreign Policy, Bilateral Relations, Alliance, and Regional Security
Political Geography:
South Korea, North America, United States of America, and Indo-Pacific

3. An Even Larger Role in Everything

Author:
Akhil Ramesh and Michael Rubin
Publication Date:
05-2023
Content Type:
Journal Article
Journal:
Comparative Connections
Institution:
Pacific Forum
Abstract:
On May 24, 2022, President Joe Biden met Indian Prime Minister Narendra Modi on the sidelines of the Quad summit in Tokyo. According to the White House readout of the meeting, “The leaders reviewed the progress made in the US-India Comprehensive Global Strategic Partnership. They committed to deepen the Major Defense Partnership, encourage economic engagement that benefits both countries, and expand partnership on global health, pandemic preparedness, and critical and emerging technologies.” While such statements are often aspirational and lag in implementation, the first four months of 2023 show the renaissance in US-India ties to be real.
Topic:
Foreign Policy, Science and Technology, Bilateral Relations, Elections, and Partnerships
Political Geography:
South Asia, India, North America, and United States of America

4. US-Korea Relations: Nuclear New Year

Author:
Mason Richey
Publication Date:
05-2023
Content Type:
Journal Article
Journal:
Comparative Connections
Institution:
Pacific Forum
Abstract:
South Korean president Yoon Suk-yeol has tried to make a priority of transforming the traditional US-South Korea military alliance into a “global, comprehensive strategic alliance” with increasing ambitions beyond hard security issues on the Korean Peninsula and in Northeast Asia in general. Yoon and his foreign policy team get an “A” for vision and effort—joining the NATO Asia-Pacific Four (AP4) and releasing an Indo-Pacific Strategy in 2022 are evidence. But, like Michael Corleone trying to go legit in The Godfather III, every time they make progress getting out, they get pulled back into the Peninsula. To wit, during the first trimester of 2023 Korean Peninsula security issues again commanded disproportionate attention from Seoul and Washington. The proximate cause for this dynamic is North Korea’s mafioso-in-chief, Kim Jong Un, who started 2023 with a January 1 missile launch and kept at it throughout the winter. This, of course, followed record-breaking 2022 North Korean missile tests and demonstrations, which totaled approximately 70 launches of around 100 projectiles. Given the near-zero prospects for North Korean denuclearization and the growing arsenal at Pyongyang’s disposal, it is understandable that any South Korean president would be distracted from interests further afield. The audacious nature of Yoon’s re-focusing on South Korean security was surprising and controversial, however. On January 11, apparently fed up with perceived South Korean vulnerability to its nuclear-armed consanguine, and perhaps irritated with the Biden administration’s slow realization of this South Korean sentiment, he made a pronouncement that no democratic leader in Seoul has ever made publicly before: he stated that South Korea—which benefits from US extended nuclear deterrence—could still consider acquiring its own nuclear weapons, if “North Korean provocations continued intensifying.” This set off a diplomatic kerfuffle that resonated—on both sides of the 38th parallel, as well as in Washington and Beijing—for much of the rest of the January-April reporting period. Given the provocative nature of Yoon’s statement, the South Korean presidential office later backtracked, “clarifying” that Yoon was simply expressing his “firm commitment to defending the nation” against North Korea’s nuclear threats, and while the “worst case scenario must be taken into consideration,” “the principle of abiding by the [Nuclear] Nonproliferation Treaty holds.” In any event, Washington took notice of its anxious ally, responding with demonstrations of commitment to extended deterrence for South Korea—including a visit by Secretary of Defense Lloyd Austin and strategic asset deployments to South Korea. All this was in addition to regular combined military exercises and naval exercises featuring US aircraft carrier strike groups. Washington also consented to more bilateral consultation with Seoul regarding the US nuclear umbrella. The saga has concluded—at least for now—with the Washington Declaration promulgated at the Biden-Yoon summit in late April. The Washington Declaration promises tightened US-South Korea extended deterrence coordination and consultation, while the leaders’ summit—in the context of Yoon’s state visit to celebrate 70 years of US-South Korea alliance relations—functioned as a renewal of Washington-Seoul ties. These ties are now perhaps as strong as they have ever been. If Pyongyang has reckoned that increased belligerence would decouple the US-South Korea alliance, it has seemingly miscalculated.
Topic:
Security, Nuclear Weapons, Bilateral Relations, Alliance, and Strategic Interests
Political Geography:
Asia, South Korea, North America, and United States of America

5. 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

6. The US and Japan Build Multilateral Momentum

Author:
Sheila A. Smith and Charles McClean
Publication Date:
05-2023
Content Type:
Journal Article
Journal:
Comparative Connections
Institution:
Pacific Forum
Abstract:
2023 brings a renewed focus on the US-Japan partnership as a fulcrum of global and regional diplomacy. With an eye to the G7 Summit in Hiroshima in mid-May, Prime Minister Kishida Fumio began the year with visits to G7 counterparts in Europe and North America. Later in the spring, he toured Africa in an effort to gain understanding from countries of the Global South. The Joe Biden administration looks ahead to a lively economic agenda, as it hosts the APEC Summit in November on the heels of the G20 Summit in New Delhi in September. National Security Advisor Jake Sullivan laid out in detail the economic ambitions of the Biden national strategy on April 27, giving further clarity to how the administration’s foreign policy will meet the needs of the American middle class. Regional collaboration continues to expand. Both leaders will gather in Australia on May 24 as Prime Minister Anthony Albanese hosts the third in-person meeting of the leaders of the Quad. Also noteworthy in this first quarter of 2023 is the progress in ties between Japan and South Korea. Trilateral consultations began early in the Biden administration, and after the election of President Yoon Suk Yeol last spring, the groundwork for resolving the many difficulties in the bilateral relationship began. This spring, President Yoon and Prime Minister Kishida revealed their progress in a set of visits to each other’s capitals. A trilateral summit is planned for the G7 Summit, which Yoon will attend as an observer. Overshadowing this active multilateral calendar is the continuing war in Ukraine. Both Kishida and Biden have visited President Volodymyr Zelenskyy in his capitol. The United States and Japan remain stalwart supporters of the Ukrainian defense effort as Ukrainians prepare for the spring counteroffensive against Russian forces. Yet questions have arisen within the US Congress over the scale and duration of military aide provided to Zelenskyy. Interestingly, there remains little doubt about the Kishida Cabinet’s support of Ukraine. While Japan does not provide lethal aid, it has joined in solidarity with European nations to contribute to the complex humanitarian relief needed by the Ukrainian people. Political choices will also shape the remainder of the year. President Biden on April 25 announced his run for a second term in the 2024 election. The Republican field of candidates begins to emerge with former UN Ambassador Nikki Haley officially declaring her candidacy on Feb. 14, and Florida Gov. Ron DeSantis, while not yet official, has been the center of media attention. Former President Donald Trump has already begun his rallies, having announced his candidacy on Nov. 15. In Tokyo, talk of a national snap election continues, with the latest rumors suggesting that Kishida, coming off his party’s good showing in local elections in April, might opt for a ballot after the G7 Summit in Hiroshima.
Topic:
Security, Foreign Policy, Diplomacy, Bilateral Relations, and Multilateral Relations
Political Geography:
Japan, Asia, North America, and United States of America

7. 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

8. US-Japan Relations: Ramping Up Diplomacy and Defense Cooperation

Author:
Sheila A. Smith and Charles McClean
Publication Date:
01-2023
Content Type:
Journal Article
Journal:
Comparative Connections
Institution:
Pacific Forum
Abstract:
In the wake of the death of former Prime Minister Abe Shinzo, the fall brought unexpectedly turbulent politics for Prime Minister Kishida Fumio. In the United States, however, President Joe Biden welcomed the relatively positive outcome of the midterm elections, with Democrats retaining control over the Senate and losing less than the expected number of seats in the House. Diplomacy continued to be centered on various impacts of the Russian invasion of Ukraine, but both Biden and Kishida focused their attention on a series of Asian diplomatic gatherings to improve ties. Chinese President Xi Jinping’s attendance at the G20 Meeting in Bali and APEC gathering in Bangkok proffered the opportunity finally for in-person bilateral meetings for both leaders. Finally, Japan’s long awaited strategic documents were unveiled in December. A new National Security Strategy (NSS) took a far more sober look at China’s growing influence and included ongoing concerns over North Korea as well as a growing awareness of Japan’s increasingly difficult relationship with Russia. Accompanying the NSS is a 10-year defense plan, with a five-year build-up commitment, that gave evidence that Kishida and his ruling coalition were serious about their aim to spend 2% of Japan’s GDP on its security. The desire for greater lethality was also there, with the inclusion of conventional strike investment.
Topic:
Diplomacy, Bilateral Relations, Alliance, and Defense Cooperation
Political Geography:
Japan, Asia, North America, and United States of America

9. Mateship Amongst Competition: Recommendations for the U.S.-Australia Alliance

Author:
Randall G. Schriver and Wallace "Chip" Gregson
Publication Date:
01-2023
Content Type:
Working Paper
Institution:
Project 2049 Institute
Abstract:
The U.S.-Australia alliance is one of the deepest and most comprehensive alliances in existence. In this report, a bipartisan study group co-chaired by Project 2049 Chairman Hon. Randall Schriver and LtGen Wallace “Chip” Gregson identify three key priorities for the U.S.-AUS alliance. Then, they explore recommendations to address these priorities in four main spheres: political, defense, trade, and resource security. Their recommendations range from minor adjustments of current alliance institutions to expansive changes such as the broadening of ITAR. They conclude by reaffirming the current strength of the U.S.-AUS alliance, and that its current challenges present an opportunity to demonstrate how like-minded allies can “lift as one” and deliver a robust, agile, and sustainable response in the face of an increasingly unstable security environment.
Topic:
Security, Foreign Policy, Bilateral Relations, Alliance, and Strategic Competition
Political Geography:
Australia, North America, and United States of America

10. Course Correction: Charting a More Effective Approach to U.S.-China Trade

Author:
Clark Packard and Scott Lincicome
Publication Date:
05-2023
Content Type:
Policy Brief
Institution:
The Cato Institute
Abstract:
Over the past several years the U.S.-China economic relationship has soured and become subordinated to broader concerns about national security and geopolitics. After a decades‐​long reform agenda in China that lifted hundreds of millions out of grinding poverty, Chinese president Xi Jinping has increasingly turned inward—reembracing Maoist socialism and heavy‐​handed central planning. Washington’s response to these worrisome developments has been reflexively hawkish economically, scattershot, and woefully inadequate for the economic challenge that China presents.
Topic:
National Security, Bilateral Relations, Economy, and Trade
Political Geography:
China, Asia, North America, and United States of America

11. Normalizing U.S.–Pakistan Relations

Author:
Adam Weinstein
Publication Date:
08-2023
Content Type:
Special Report
Institution:
Quincy Institute for Responsible Statecraft
Abstract:
The U.S.–Pakistan relationship is often portrayed negatively among the lawmakers, media, and general public of both countries, with a focus on mutual resentment and dysfunction. The early relationship was burdened by mismatched expectations regarding support in conflicts with India. Different priorities from the start of U.S. involvement in Afghanistan during the 1980s further strained the relationship. The United States also sanctioned Pakistan and India for developing nuclear weapons, which had a disparate impact on Pakistan, causing ongoing tension. Many in Washington’s policy and journalistic communities hold negative views of Pakistan, viewing it as an enabler of terrorism that seeks geopolitical rents but rarely delivers. Pakistanis often resent what they view as Washington’s use of the country as a “frontline state” in both the Cold War and the War on Terror, claiming tens of thousands of lives, only to discard it later. These grievances are largely dismissed in Washington as self–inflicted. Despite the negative public debate, serving officials in both governments generally hold a more nuanced view, recognizing the broad overlapping interests shared by the United States and Pakistan in areas like climate change, trade, and counterterrorism. There is already an exhaustive literature on terrorism in Pakistan, nuclear security, and potential conflicts along the Line of Control with India. This brief will instead focus on revitalizing U.S.–Pakistan relations through innovative diplomacy in areas that have received less attention, such as trade, regional integration, people–to–people connections, and climate change. Its principal recommendation is that Washington should resist viewing Pakistan through the narrow lens of the “War on Terror” or great power competition. Instead it should pursue its interests through more normalized relations, while recognizing U.S. limitations in influencing events in Pakistan or the region.
Topic:
Security, Foreign Policy, Diplomacy, Bilateral Relations, Counter-terrorism, and Strategic Interests
Political Geography:
Pakistan, South Asia, North America, and United States of America

12. 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

13. Common Good Diplomacy: A Framework for Stable U.S.–China Relations

Author:
Jake Werner
Publication Date:
09-2023
Content Type:
Policy Brief
Institution:
Quincy Institute for Responsible Statecraft
Abstract:
One curious feature of the emerging U.S.–China conflict is that each side claims to be defending the existing international order against the threat the other poses to it. Hidden beneath this seemingly irreconcilable dispute is a crucial truth: both the United States and China are status quo powers, sharing a deep interest in a stable global security environment and an open global economy. At the same time, both countries are pursuing urgently needed reforms to a global system increasingly defined by zero–sum pressures. Yet both are prone to exclusionary impulses that threaten to ruin the possibility of a shared reform agenda and instead throw the world into conflict. Working with China to revitalize the international order would not only prevent such a conflict, it would also establish the conditions for healthy forms of both competition and cooperation in the U.S.–China relationship. But how can U.S. leaders pursue such a project without simply giving a pass to China’s sometimes undesirable behavior? The focus should be diplomacy to frame an inclusive global system, focusing on actions that would reduce zero–sum constraints. In the three key realms of global authority and security, the global economy, and climate change, China is currently engaged in counterproductive moves that exacerbate existing tensions but is also pursuing promising reforms that could expand the scope for positive–sum outcomes. Rather than seeking to counter every Chinese initiative, U.S. leaders should carefully distinguish between beneficial and damaging outcomes, affirming and building on China’s constructive proposals and managing differences through negotiation rather than polemics and confrontation. Some potentially fruitful areas for cooperation include joint action to limit climate change, development in the Global South, revising the global guidelines for economic statecraft, and reforming international institutions to create a more open and inclusive world order. Pursuing cooperative efforts in such areas would both create direct benefits and improve U.S. credibility as a responsible leader of the world order rather than simply a rival of China. It would also open space to pursue competition within a rules–based order rather than risk a slide into destructive zero–sum conflict.
Topic:
Foreign Policy, Diplomacy, Bilateral Relations, Political stability, and International Order
Political Geography:
China, Asia, North America, and United States of America

14. Primer: Australian Prime Minister Anthony Albanese’s Visit to the United States

Author:
John Lee
Publication Date:
10-2023
Content Type:
Policy Brief
Institution:
Hudson Institute
Abstract:
While Ukraine, Gaza, and climate change will feature heavily on the agenda during Australian Prime Minister Anthony Albanese’s visit to Washington, DC, the most important and enduring issue between the two countries is progressing AUKUS (Australia–United Kingdom–United States) as the key ANZUS (Australia–New Zealand–United States) contemporary alliance initiative. If the AUKUS arrangement stalls and fails to have a meaningful impact on the strategic and military balance of power, then America’s regional allies and partners will lose faith that a reinvigorated American-led alliance system can serve as a check on Chinese power. America’s slow progress to reform the International Traffic in Arms Regulations (ITAR) is an immense frustration for Australian and American proponents of AUKUS. However, concerns regarding inadequate investment in the American military industrial base are reasonable and legitimate. Australian defense policy is underfunded and lacks urgency despite defense analysts’ assessment that the strategic environment is rapidly deteriorating. Australian underperformance will increase skepticism of AUKUS in both countries. Both countries need to undertake much more detailed scenario planning and commit to the agreed sharing of burdens and responsibilities to deter or defeat China.
Topic:
Defense Policy, Diplomacy, Bilateral Relations, and AUKUS
Political Geography:
Australia, North America, and United States of America

15. The Effects of the United States-China Trade War During the COVID-19 Pandemic on Global Supply Chains: Evidence from Viet Nam

Author:
Duc Anh Dang and Ngoc Anh Tran
Publication Date:
08-2023
Content Type:
Working Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
The trade war between the United States (US) and China has affected their bilateral trade as well as that with other countries. This study investigates how Vietnamese firms performed during the COVID-19 pandemic under the shadow of this trade war. The change in the log of Vietnamese exports to the US from 2017 to 2020 is used to measure the impact of the trade war, and the change in the log of Chinese exports to the US is then used as an instrument for the Vietnamese export change during the same period. It is found that firms that faced more trade war exposure increased their investment, profit, and value added, which may be due to the market exit of unproductive firms. Moreover, the trade war impact is more pronounced for large firms. Foreign-invested firms gained less from trade war exposure. The pandemic weakened the trade war effect on firm performances; however, it exacerbated the trade tension effect on foreign-trade firms.
Topic:
Bilateral Relations, Investment, Trade, and COVID-19
Political Geography:
China, Asia, North America, and United States of America

16. U.S.-China Data War Intensifies as Bilateral Relations Nosedive

Author:
Willy Wo-Lap Lam
Publication Date:
04-2023
Content Type:
Journal Article
Journal:
China Brief
Institution:
The Jamestown Foundation
Abstract:
U.S.-China relations appear headed for further deterioration despite the People’s Republic of China’s (PRC) efforts to lure back American multinationals and Beijing’s relatively limited support for Russia in its war with Ukraine. Washington has characterized the “existential competition” with the Chinese Communist Party (CCP) as an entrenched struggle on all fronts, but the data and information sectors have recently become areas of particularly intense contention. The Xi Jinping leadership has sternly retaliated against purported efforts by the U.S. and its allies to choke off the PRC’s high-tech development pathways. Recent moves targeting American and other foreign firms are also closely linked to General Secretary Xi Jinping’s obsession with cybersecurity and control of data. Last weekend, the Cyberspace Administration of China (CAC), the administrative arm of the policy-setting Central Cyberspace Affairs Commission (CCAC) that Xi chairs, announced an investigation into the operations of leading American memory-chip maker Micron Technology. The CAC cited the need to safeguard the supply chains of Chinese IT and data companies. Regardless, Micron, whose China operations account for 11 percent of worldwide sales, has insisted that it “stands by the security of our products” (Straits Times, April 1; South China Morning Post [SCMP], March 31).
Topic:
Bilateral Relations, Cybersecurity, Information Technology, and Data Governance
Political Geography:
China, Asia, North America, and United States of America