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101. Asia Beyond China: Developing a European Indo-Pacific Strategy for a Changing Global Order

Author:
Luke Patey
Publication Date:
03-2020
Content Type:
Policy Brief
Institution:
Danish Institute for International Studies
Abstract:
Much of Europe’s attention to Asia is currently being captured by China. However, if the European Union and its member states are serious about maintaining a rules-based global order and advancing multilateralism and connectivity, it should increase its work in building partnerships across Asia, particularly in the Indo-Pacific super-region. To save multilateralism, go to the Indo-Pacific. RECOMMENDATIONS: ■ Multilateralism first. Unpack and differentiate where the United States and China support the rules-based order and where not, but also look to new trade deals and security pacts with India and Southeast Asia partners. ■ Targeted connectivity. The EU should continue to offer support to existing regional infrastructure and connectivity initiatives. ■ Work in small groups. EU unanimity on China and Indo-Pacific policy is ideal, but not always necessary to get things done. ■ Asia specialists wanted. Invest in and develop career paths for Asia specialists in foreign and defence ministries and intelligence services.
Topic:
Security, Foreign Policy, Defense Policy, Emerging Markets, International Organization, Science and Technology, Power Politics, and European Union
Political Geography:
China, Europe, and Asia

102. U.S.-China Strategic Rivalry in the Indo-Pacific

Author:
Camilla Tenna Nørup Sørensen
Publication Date:
04-2020
Content Type:
Policy Brief
Institution:
Danish Institute for International Studies
Abstract:
U.S.-China strategic rivalry is intensifying – and nowhere more so than in the Indo-Pacific. This is likely to result in new US requests to close allies like Denmark to increase their security and defense policy contributions to the region. French and British efforts to establish an independent European presence in the Indo-Pacific present Denmark with a way to accommodate US requests without being drawn directly into the US confrontation with China. RECOMMENDATIONS ■ The importance of the Indo-Pacific region for Danish security and defense policy is likely to grow in the coming years. The focus and resources should therefore be directed towards strengthening Danish knowledge of and competences in the region. ■ Several European states, led by France and the UK, are increasing their national and joint European security and defense profiles in the Indo-Pacific by launching new initiatives. Denmark should remain closely informed about these initiatives and be ready to engage with them. ■ Regarding potential requests to the Danish Navy for contributions to the Indo-Pacific, Denmark should prioritize the French-led European naval diplomacy.
Topic:
Security, Foreign Policy, Defense Policy, Politics, and Power Politics
Political Geography:
China, Europe, Asia, Denmark, North America, and United States of America

103. An Avoidable War: Politics and Armed Conflict in Myanmar’s Rakhine State

Author:
International Crisis Group
Publication Date:
06-2020
Content Type:
Special Report
Institution:
International Crisis Group
Abstract:
Fighting in Myanmar’s Rakhine State is taking a rising toll. It will hinder any effort to contain COVID-19 or resolve the Rohingya crisis. Rather than trying to defeat the Arakan Army, Naypyitaw should negotiate with ethnic Rakhine, endeavouring to convince them of electoral democracy’s benefits. What’s new? The eighteen-month armed conflict between state forces and the Arakan Army in Rakhine State is Myanmar’s most intense in years. It shows no sign of de-escalation and the COVID-19 threat has not focused the parties’ minds on peace. The government’s designation of the group as terrorist will make matters worse. Why does it matter? The conflict is taking a heavy toll on civilians, with a peaceful settlement appearing more remote than ever. Without a settlement, the future of Rakhine State looks bleak, and addressing the state’s other major crisis, the situation of the Rohingya, will be even more difficult. What should be done? The conflict cannot be resolved on the battlefield. Rather than trying to prevail militarily and relying on inadequate humanitarian measures to cushion the blow, the government needs a political strategy to address Rakhine grievances and give the community renewed hope that electoral democracy can help them achieve their aspirations.
Topic:
Minorities, Democracy, Civilians, and Armed Conflict
Political Geography:
Asia, Southeast Asia, and Myanmar

104. Commerce and Conflict: Navigating Myanmar’s China Relationship

Author:
International Crisis Group
Publication Date:
03-2020
Content Type:
Special Report
Institution:
International Crisis Group
Abstract:
Isolated from the international community, Myanmar is deepening its dependence on China. But closer ties, Beijing-backed megaprojects and private Chinese investment carry both risks and opportunities. Both states should proceed carefully to ensure local communities benefit and avoid inflaming deadly armed conflicts. What’s new? The Rohingya crisis has strained Myanmar’s relations with the West and much of the Global South, pushing it to rely more on diplomatic and economic support from China. With a China-Myanmar Economic Corridor proceeding, and smaller private-sector projects proliferating, China’s investments in Myanmar are poised to shift into higher gear. Why does it matter? Many of these projects are located in or near areas of active armed conflict, and are often implemented without sufficient transparency, consultation with local communities or awareness of the local context. They risk empowering armed actors, heightening local grievances and amplifying anti-Chinese sentiment, which could lead to a popular backlash. What should be done? China needs to take more responsibility for ensuring that its projects benefit local communities and Myanmar’s economy, and do not exacerbate conflict. The Myanmar government should enhance its China expertise to negotiate and regulate projects more effectively. Both sides need to practice greater transparency and meaningful community consultation.
Topic:
International Relations, Bilateral Relations, Conflict, and Economic Cooperation
Political Geography:
China, Asia, Southeast Asia, and Myanmar

105. Southern Thailand’s Peace Dialogue: Giving Substance to Form

Author:
International Crisis Group
Publication Date:
01-2020
Content Type:
Special Report
Institution:
International Crisis Group
Abstract:
Talks to end the insurgency in Thailand’s southernmost provinces have repeatedly encountered obstacles, including the main rebel organisation’s abstention from the current round. With a new Thai official taking charge, and inviting that group to rejoin, both parties should drop objections that have hindered progress. What’s new? A peace dialogue process between the Thai government and Malay-Muslim separatists may be entering a new phase after stagnating for more than a year. A new Thai delegation chief has called for direct talks with the main insurgent group, Barisan Revolusi Nasional, which has rejected the existing dialogue. Why does it matter? Though the level of violence in Thailand’s deep south has declined over the years, recent attacks in Bangkok and Yala highlight the continuing threat. Meanwhile, civilians remain caught up in a protracted conflict that has claimed more than 7,000 lives since 2004. What should be done? The dialogue process needs a reboot, with Barisan Revolusi Nasional included. That group should prepare to engage constructively. Bangkok should overcome its aversion to international mediation and cease equating decentralisation with partition. The Thai government and Malaysia, the dialogue facilitator, should consider how to incorporate external mediation.
Topic:
Conflict Prevention, Negotiation, and Peace
Political Geography:
Asia, Thailand, and Southeast Asia

106. China’s Activities in the South Caucasus: Issue 1, 29.06.2020 – 26.07.2020

Author:
Medea Ivaniadze
Publication Date:
07-2020
Content Type:
Special Report
Institution:
Georgian Foundation for Strategic International Studies -GFSIS
Abstract:
The digest covers China’s political, diplomatic, economic and other activities in the South Caucasus region and relations between China and the South Caucasus countries. It relies on a wide variety of sources, including the Chinese media. It is worth noting that the Chinese media is controlled by the Communist Party of China (according to the World Press Freedom Index China is nearly at the bottom of the list and ranks 177th out of 180 countries).
Topic:
Diplomacy, Politics, Media, Economy, and Belt and Road Initiative (BRI)
Political Geography:
China, Eurasia, Caucasus, Asia, and South Caucasus

107. Partial decoupling from China: A brief guide

Author:
Derek Scissors
Publication Date:
07-2020
Content Type:
Special Report
Institution:
American Enterprise Institute for Public Policy Research
Abstract:
Partial decoupling from China is overdue. The People’s Republic of China (PRC) suppresses foreign competition and infringes intellectual property. It is an ugly dictatorship at home and increasingly aggressive overseas. Decoupling involves a range of tools and economic activities. Policymakers should quickly move to document and respond to Chinese subsidies, implement already legislated export control reform, monitor and possibly regulate outbound investment, and provide legal authority to move or keep supply chains out of the PRC. Decoupling has costs—higher prices, lower returns on investment, and lost sales. But they are dwarfed by the costs of continued Chinese economic predation and the empowerment of the Communist Party.
Topic:
Foreign Policy, Defense Policy, and Bilateral Relations
Political Geography:
China, Asia, North America, and United States of America

108. China’s global investment vanishes under COVID-19

Author:
Derek Scissors
Publication Date:
07-2020
Content Type:
Special Report
Institution:
American Enterprise Institute for Public Policy Research
Abstract:
As expected given COVID-19, China’s construction and, especially, investment around the world plunged in the first half of 2020. The decline may be exaggerated by Chinese firms not wanting to report global activity, but Beijing’s happy numbers are not credible. From what little can be discerned, the Belt and Road Initiative is becoming more important, primarily because rich countries are more hostile to Chinese entities. American policy needs to shift. Incoming Chinese investment is now extremely small, but technology is still being lost due to lack of implementation of export controls. Growing American portfolio investment in China is unmonitored and may support technology thieves, human rights abusers, and other bad actors.
Topic:
Foreign Policy, Investment, and COVID-19
Political Geography:
China, Asia, North America, and United States of America

109. China’s global investment in 2019: Going Out goes small

Author:
Derek Scissors
Publication Date:
01-2020
Content Type:
Special Report
Institution:
American Enterprise Institute for Public Policy Research
Abstract:
Chinese investment and construction around the world contracted in 2019, regardless of Beijing’s claims to the contrary. However, the decline is concentrated in large, headline-winning deals, and Chinese firms remain active on a smaller scale. A contraction in acquisitions in rich economies has boosted the relative importance of greenfield spending. The number of countries in the Belt and Road continues to expand, and power plant and transport construction continues to be preeminent. American policymakers were initially spurred to act by intense Chinese investment in 2016. This has dropped sharply, but there are challenges related to investment review that are more important, starting with strengthening export controls.
Topic:
Foreign Policy, Economy, Belt and Road Initiative (BRI), and Investment
Political Geography:
China and Asia

110. A stagnant China in 2040, briefly

Author:
Derek Scissors
Publication Date:
03-2020
Content Type:
Special Report
Institution:
American Enterprise Institute for Public Policy Research
Abstract:
There is a considerable chance China will stagnate by 2040, with gross domestic product growth at 1–1.5 percent. The process has started, seen most clearly in stark trends for debt and aging, but better-quality data on productivity would clarify how far along stagnation is and whether it at some point reverses. China shows no sign of adopting pro-productivity reform. It will not spur growth by leveraging or bolster a shrinking labor force through current population and education policy. Innovation will help, but a large economy requires broad innovation, and the party dislikes competition. A twist comes from China’s global position, which will not deteriorate much. Outbound investment has retrenched, and the yuan’s rise was exaggerated. Consumption exports and commodities imports will stall. But China will easily be a top-two market in most sectors, and other countries are not acting to displace it. Instead, localization will occur. Commodities producers and some developing countries will lose, the latter as Chinese capital dries up. Countries that make difficult reforms will win. Consumer goods will see inflation, but innovation will be healthier with less Chinese influence. American firms will seek new pastures, and Chinese stagnation means production may relocate to the US.
Topic:
Foreign Policy, Defense Policy, GDP, and Economic growth
Political Geography:
China and Asia