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11. Prospects for India-Taiwan Relations

Author:
Niranjan Jose
Publication Date:
08-2020
Content Type:
Working Paper
Institution:
Council on International Policy (CIP)
Abstract:
This year’s border stand-off in the Galwan Valley between China and India following China’s encroachment into Indian territory, is a reminder of India’s perennial problems with Beijing. The latest violation is an example of the staunch stance China has adopted against India. Neither nation is interested in a full-fledged confrontation. In this scenario, New Delhi has no option but to engage with Beijing to resolve the dispute through dialogue; however discussion and confidence-building initiatives by itself will not lead India towards problem-solving. China’s confrontational approach towards India and the border disagreement set the right background as to why it could not be a better opportunity for India to meaningfully engage with Taiwan. India and Taiwan both are Asian democracies pursuing an effective resolution of dynamic social and ethnic problems, and both face aggressive Chinese security policies aimed at establishing regional hegemony. From a strategic security perspective, both India and Taiwan are deeply concerned about the rising assertiveness of Beijing in the region. The China element can become a tool for moving closer to the strategic communities in New Delhi and Taipei. India and Taiwan have a variety of mutual concerns, ranging from controlling China’s growth to a political and economic partnership. For Taiwan, China’s current trade war with the US has made several Taiwanese firms keen to reduce their vulnerability on China. Indian government initiatives such as Smart Cities, Make in India, Digital India, and Start-up India were launched to increase India’s viability for foreign investors, making it an attractive destination for Taiwanese corporations.
Topic:
International Relations, Foreign Policy, Diplomacy, and Regional Cooperation
Political Geography:
China, India, Taiwan, and Asia

12. Eurasian Union fails a critical test: Displaying irrelevance in the time of the corona crisis

Author:
Arkady Moshes, Ryhor Nizhnikau, and Kristiina Silvan
Publication Date:
05-2020
Content Type:
Working Paper
Institution:
Finnish Institute of International Affairs
Abstract:
The pandemic is testing the effectiveness of the Eurasian Economic Union. However, its actions demonstrate the fundamental flaws of this integration project instead.
Topic:
Regional Cooperation, Public Health, Pandemic, and COVID-19
Political Geography:
Europe and Asia

13. Uzbekistan’s new Central Asia policy: The economic rationale and political implications of good neighbourliness

Author:
Kristiina Silvan
Publication Date:
11-2020
Content Type:
Working Paper
Institution:
Finnish Institute of International Affairs
Abstract:
Under the leadership of President Shavkat Mirziyoyev, Uzbekistan has embarked on a moderate reform programme that aims to achieve socio-economic growth without undoing the country’s authoritarian political system. The programme has implications beyond Uzbekistan’s borders because it has changed the way Uzbekistani foreign policy is formulated and implemented. Uzbekistan’s former isolationist stance has shifted to a foreign policy opening, which is most noticeable in the improvement of its relations with its neighbours. This Working Paper analyzes “good neighbourliness”, the key concept of Uzbekistan’s new Central Asia policy. It details the amendment of Uzbekistan’s bilateral relations with its neighbours and points to the positive reception of Uzbekistan’s new regional policy in Russia, China, and the West. The paper argues that while “good neighbourliness” is a pragmatic strategy rooted in economic rationality, the policy’s regional implications are substantial. It is laying the necessary foundation for sustainable Central Asian co-operation from within in a way that is acceptable to the Central Asian states and big non-regional actors alike.
Topic:
Regional Cooperation, Bilateral Relations, Authoritarianism, Reform, and Leadership
Political Geography:
Russia, China, Europe, Central Asia, Asia, and Uzbekistan

14. Labour Market Impacts of Import Penetration from China and Regional Trade Agreement Partners: The Case of Japan

Author:
Kazunobu Hayakawa, Tadashi Ito, and Shujiro Urata
Publication Date:
04-2020
Content Type:
Working Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
The impacts of imports on the domestic labour market have been hotly debated recently. The purpose of this paper is to empirically examine the effects of not only imports from China but also those under regional trade agreements (RTAs) on employment in Japan. As in previous studies in the literature, we found that the rise in import penetration from China significantly decreases employment in Japan. However, import penetration under RTA regimes is found to have insignificant effects on employment. The finding suggests that the increase in imports under RTA regimes might not be harmful to the domestic labour market. In addition, we did not find significant effects of import penetration via input–output linkages. This insignificant result may be because imports by Japanese manufacturing firms are mostly conducted in the form of intra-firm trade, enabling them to avoid negative impacts on employment.
Topic:
International Trade and Finance, Regional Cooperation, Labor Issues, Employment, and Manufacturing
Political Geography:
Japan, China, and Asia

15. New Developments in International Production Networks: Impact of Digital Technologies

Author:
Ayako Obashi and Fukunari Kimura
Publication Date:
06-2020
Content Type:
Working Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
We conducted a standard gravity exercise using worldwide disaggregated trade data to shed light on the influence of the spread of digital technologies on network trade. We found that growing investment in industrial robots in relatively lagging countries, together with imported digitally deliverable services, is enhancing bilateral network trade flows in East Asia, but not necessarily in other parts of the world. This suggests that exploring complementarities between machines and human resources in production blocks supported by better service-link connectivity may allow newly developed economies to retain and expand the international division of labour.
Topic:
Regional Cooperation, Science and Technology, Digital Economy, and Productivity
Political Geography:
East Asia and Asia

16. Assessment of Industrial Cluster Policies in Viet Nam: The Role of Special Economic Zones in Attracting Foreign Direct Investment

Author:
Nguyen Quynh Huong
Publication Date:
06-2020
Content Type:
Working Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
Special economic zones (SEZs) are considered as one of important regional industrial policies to attract foreign investment in developing countries such as Viet Nam. The review of SEZs development in Viet Nam including the comprehensive review of infrastructure and business environment in SEZs are presented in this paper for the first time. Moreover, the paper gives novel non-parametric evidence to indicate the positive causal linkage between the zoning policies and the attraction of foreign investment at district-level in the country during the period 2011–2015.
Topic:
Industrial Policy, Regional Cooperation, Foreign Direct Investment, and Industry
Political Geography:
Asia and Vietnam

17. China’s BRI: The Security Dimension

Author:
David F Gordon, Haoyu Tong, and Tabatha Anderson
Publication Date:
09-2020
Content Type:
Working Paper
Institution:
International Institute for Strategic Studies
Abstract:
In this second report published by the IISS Belt and Road Initiative (BRI) Project under the Geo-Economics, Geopolitics and Strategy Programme, the authors examine a range of security-related challenges that the BRI confronts as it expands into diverse geographies to China’s west and south. The report explores the risks in operating across environments fraught with political, economic and social instability. Beyond this, it delves into the actual and potential challenges that the BRI faces from Islamic extremism and terrorism. The report also assesses the ways in which the Maritime Silk Road (MSR) fits into China’s growing strategic interests in Southeast Asia, and the development of the Digital Silk Road (DSR) at the forefront of the technological and geopolitical competition between China and the United States. Finally, the report explores the China–Pakistan Economic Corridor (CPEC) as a case study of the security risks and governance challenges present in what is probably the single most important country-wide BRI endeavour.
Topic:
Regional Cooperation, Infrastructure, Hegemony, Digital Economy, Belt and Road Initiative (BRI), and Silk Road
Political Geography:
Pakistan, China, and Asia

18. China's Rise as a Global Security Actor: Implications for NATO

Author:
Meia Nouwens and Helena Legarda
Publication Date:
12-2020
Content Type:
Working Paper
Institution:
International Institute for Strategic Studies
Abstract:
In December 2019, for the first time, NATO leaders recognised China as a new strategic point of focus for the Alliance. This reflects growing concern among NATO members surrounding China’s geopolitical rise and its growing power-projection capabilities, as well as the impact that these may have on the global balance of power. Today, China is not only taking a central role in Indo-Pacific security affairs but is also becoming an increasingly visible security actor in Europe’s periphery. As such, the question of how to deal with an increasingly global China has been an important part of Secretary-General Jens Stoltenberg’s NATO 2030 reflection process. China poses a wide range of challenges to NATO. Beijing sees the Alliance as a United States-centric outfit that may be used by Washington to contain China, and has therefore tried to influence individual NATO members’ decisions in order to weaken the Alliance’s unity. Close ties between China and Russia, especially in the security and military spheres, have also been a source of concern for NATO allies. Besides the Chinese and Russian navies’ joint exercises in the Baltic and Mediterranean seas, there is also the potential for the two sides to further coordinate – or at least align their behaviour – on issues of relevance to the Alliance, including hybrid warfare and cyber espionage, arms-control issues, and their approach to Arctic governance, among others. China’s defence spending and military-modernisation process, along with the growing strength of its defence industry, have led to the proliferation of more advanced military platforms around the world. Beijing is also expanding its stockpile of missiles, some of which have the range to reach NATO countries. China’s military-power-projection capabilities have likewise edged towards Europe as the People’s Liberation Army (PLA) has expanded its international presence over the last few years. While NATO allies may have agreed that China presents a number of challenges to the Alliance’s security, they have yet to achieve consensus on how to address them. Some of these issues lie beyond NATO’s traditional areas of competence and will require expertise best provided by partners of the Alliance rather than the Alliance itself. NATO allies will need to prioritise how, when, where and with which partners to use their combined resources to deal with them. At the same time, the Alliance acknowledges that China is not its adversary. NATO thus must find areas of common interest where it can continue to cooperate with China, albeit with a more clear-eyed approach than it has done in the past. Addressing the opportunities and problems posed by China as a cohesive alliance will be more important than ever.
Topic:
Security, Foreign Policy, Defense Policy, NATO, Diplomacy, Regional Cooperation, and Hegemony
Political Geography:
China, Europe, North Atlantic, Asia, and North America

19. Principal Vectors of Russian Diplomacy in the Post-Soviet Space

Author:
O. Lebedeva
Publication Date:
01-2020
Content Type:
Journal Article
Journal:
International Affairs: A Russian Journal of World Politics, Diplomacy and International Relations
Institution:
East View Information Services
Abstract:
ThE DISINTEGRATION of the Soviet Union has led to a new geopolit- ical zone appearing on the world map – the so-called post-Soviet space where Russia plays a dominant role even though post-Soviet countries have different development paths, political regimes and economies. Amid the escalating relations between Russia and the West, the pressing prob- lem for Russia right now is to build relations with its immediate neigh- bors. Therefore, maintaining diplomatic relations with post-Soviet coun- tries is an important geopolitical goal for Russia, since this is a zone of strategic economic and political interests. however, not only Russia is interested in establishing strong diplomatic ties but also former Soviet countries. This is largely because Russia is at the center of the post-Soviet space, with many countries, including EaEU member states, pursuing trade and economic relations via Russia.
Topic:
Diplomacy, Regional Cooperation, Conflict, and Economic Cooperation
Political Geography:
Russia, Europe, Asia, and Post-Soviet Europe

20. EU-Turkey Policies in Iraq & Syria: Challenges & Opportunities

Author:
Dlawer Ala'Aldeen
Publication Date:
02-2019
Content Type:
Working Paper
Institution:
Middle East Research Institute (MERI)
Abstract:
Turkey is in every way ideally placed to bridge the EU with its southern neighbours and together tackle their common challenges and myriad business opportunities. The question is, can they align priorities and policies to make the most of the opportunities? The answer is: not easily. Given the complexity of and uncertainty in Turkey and Iraq, as well as Syria’s security dynamics, sustained EU-Turkey convergence in all areas of common interest is unlikely in the foreseeable future. Although both Turkey and the EU have adopted multifaceted foreign policies vis-a-vis the Middle Eastern countries, yet they have converged only on specific issues, such as dealing with the Iran nuclear deal. Both sides consider the US withdrawal from the deal as a “matter of concern”, believing that maintaining the deal and keeping Iran engaged through diplomatic and economic means instead of sanctions or military threats is crucial even after the US withdrawal. Otherwise, Turkey and the EU diverge on the overall approach to the most troubled neighbours, namely Iraq and Syria, which have been sources of grave concern to all. Iraq continues to be a fragile country, struggling to keep its integrity. The country was at the brink of failure between 2014-2017 after the emergence of the so called Islamic State (IS), and further threatened by the Kurdish referendum for independence in 2017. Iraq was pulled back to survival, mainly by international assistance. Interestingly, in 2018 Iraq saw two transformative general elections, one for the Federal and the other for the Kurdistan Region’s Parliament. The outcome of these elections brought about a degree of change in the political landscape, a sense of optimism for future recovery and a clear promise for creating new business opportunities for international partners. However, in keeping with the past, the formation of government in both Baghdad and Erbil became protracted and problematic. These features indicate that the Iraqi leaders remain ill focused on the country’s priorities in terms of state-building and provision of services or addressing the root causes of its fragility. Turkey and the EU share the objectives of accessing Iraq’s market and energy supply, and prevent onward migration of the displaced populations. Of course, the EU is to a large extent dependent on Turkey to achieve its goals. Therefore, it would make sense for the two sides to converge and cooperate on these issues. However, Turkey’s foreign policies in the southern neighbourhood are driven primarily by its own domestic and border security considerations and – importantly – Turkey sees the economic, political and security issues as inextricable. While Iraq has lost its state monopoly over legitimate violence and is incapable of securing its borders, Turkey often takes matters into its own hands by invading or intervening in Iraq, both directly and indirectly (through proxies). Of course, the Iraqi government considers Turkey’s interventions as acts of aggression and violations of its borders, but is unwilling to take measures against them. For Iraq, Turkey is a regional power and an indispensable neighbour. It has control over part of Iraq’s oil exports, water supply and trade routes. The EU, on the other hand, considers Turkey’s interventions as acts of self-defence but frowns upon them as destabilising factors, adding to the fragility of Iraq. In Syria, the political landscape and security dynamics are very different from Iraq, but the EU-Turkish policies follow similar patterns. Syria remains a failed state with its regime struggling to secure survival and regain control over its territories. Meanwhile, Turkey has become increasingly interventionist in Syria via direct military invasion and through proxies, culminating in the occupation of a significant area west of Euphrates, and threatening to occupy the Eastern side too. Turkey has put extreme pressure on the USA for permission to remove the Syrian Democratic Front (SDF) and its lead organisation (Democratic Union Party, PYD) from governing North East Syria (also referred to as Rojava). However, the EU and USA consider the SDF and PYD indispensable in the fight against IS and fear the Turkish interventions may have grave consequences. Federica Mogherini, the EU High Representative and Vice-President of the European Commission recently emphasised that “Turkey is a key partner of the EU”, and that the EU expect the “Turkish authorities to refrain from any unilateral action likely to undermine the efforts of the Counter-IS Coalition”. Therefore, EU-Turkey divergence or even conflict with some EU Member States is possible over Syria.
Topic:
Security, Regional Cooperation, Military Strategy, European Union, Islamic State, and Political stability
Political Geography:
Iraq, Europe, Turkey, Middle East, Asia, and Syria