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281. Technological Competition and China

Author:
James A. Lewis
Publication Date:
11-2018
Content Type:
Working Paper
Institution:
Center for Strategic and International Studies (CSIS)
Abstract:
Napoleon’s famous quotation about a sleeping giant moving the world when it awoke seems prescient, but a closer examination presents a more complex story. China’s rise is often accompanied by corresponding predictions of inevitable conflict and U.S. decline. These predictions are simplistic and rest on assumptions of China’s economic and political trajectory that may not be valid. In the near term, competition is unavoidable, and the more important challenge comes from China’s efforts to “return to the center of the world stage” and the means China uses to attain this at a time when the United States is reassessing its global role. The United States and China are in a growing competition, perhaps verging on conflict, but it is not a nineteenth century competition between empires for control of territory and resources. Unlike great power competition in previous centuries, the focal point is not military strength or territorial expansion. This conflict is over control of the modern levers of power—global rules and institutions, standards, trade, and technology. The ability to create new technologies, particularly digital technologies (given their importance for politics, security, and economic growth) have become key factors in the U.S.-China relationship, which is marked by close commercial cooperation and deep governmental distrust. This disparity creates unavoidable tensions. The link between technology, innovation, national security, and international power is now widely recognized. When Vladimir Putin says that the country that leads in artificial intelligence (AI) “will be the ruler of the world,” it is hyperbole, but hyperbole that confirms that political leaders recognize that the ability to innovate is a potent source of national power. In the digital age, national security and national power have different requirements shaped by technological change and cyberspace. Innovation has become a central element of its international influence.1 This is not new—the U.S.-Soviet space race was a contest of the ability of different systems to produce new technologies, but those were unique government programs. Technological competition today is as much between companies as states. A country’s ability to innovate and produce advanced technologies provides economic strength, military power, and an intangible benefit of perceived leadership. Both China and the United States have advantages and disadvantages in this contest, and while it is usual to focus on quantitative aspects—such as the number of engineers or patents and spending on research and development (R&D)—these are not the key determinants of technological competition between states. This competition is a contest of ideas on governance for investment, innovation, and the internet. The internet and global connectivity not only reshape the environment for competition but also create political and market forces that both nations find difficult to control.
Topic:
Science and Technology, Hegemony, and Strategic Competition
Political Geography:
China and Asia

282. The Rise of China as a Cybersecurity Industrial Power: Principles, Drivers, Policies, and International Implications

Author:
Tai Ming Cheung
Publication Date:
09-2018
Content Type:
Working Paper
Institution:
Berkeley APEC Study Center
Abstract:
This paper examines China’s cybersecurity industrial development over the past two decades since the arrival of the internet in that country. This analysis takes place from a primarily security and technology perspective because the national security apparatus occupies a powerful presence in China’s cyber affairs. Moreover, the development of the cybersecurity industry is significantly driven by the development of technological capabilities. Key issues explored include: 1) Chinese decision-making and thinking on cybersecurity development within the context of the Chinese leadership’s general approach to development, national security, and technology advancement; 2) the nature and characteristics of recent Chinese cybersecurityrelated development strategies and plans; 3) the drivers behind the development of China’s cybersecurity industry, looking especially at market failures, national security rationales, and government intervention; 4) the proliferation of principal actors and coalitions in the Chinese cybersecurity industry and how this influences its development; and 5) the nature of the relationship between the state and cybersecurity firms, in particular examining four types of interactions: the state as a customer; state hiring of talent; the state’s direct regulatory power, and the state as an investor. The paper concludes by considering the international implications of China’s rise as an increasingly capable and confident cybersecurity power.
Topic:
Development, Science and Technology, Cybersecurity, and Industry
Political Geography:
China and Asia

283. Government as Facilitator: How Japan is Building its Cybersecurity Market

Author:
Benjamin Bartlett
Publication Date:
09-2018
Content Type:
Working Paper
Institution:
Berkeley APEC Study Center
Abstract:
This paper explores Japan’s industrial policy toward cyber security. I begin by describing the perceived market failures with regard to cyber security, and the Japanese government’s rationales for intervention. Next, I briefly describe the institutions involved in Japan’s cyber security policy-making. I follow by discussing three models of Japanese intervention: government as provider, government as facilitator, and government as promoter. Then, I examine the factors that have led to this particular constellation of measures. Finally, I look at the effectiveness of these measures as well as make some concluding remarks about likely future trends.
Topic:
Government, Science and Technology, Cybersecurity, and Public Policy
Political Geography:
Japan and Asia

284. A Centralized Cybersecurity Strategy for Taiwan

Author:
Hsini Huang and Tien-Shen Li
Publication Date:
09-2018
Content Type:
Working Paper
Institution:
Berkeley APEC Study Center
Abstract:
Viewing cyber security as a matter of national security, the Taiwanese government established the National Information and Communication Security Taskforce (the Taskforce) in 2001 to actively implement ICT security infrastructure policies and strengthen national capacity against threats to the country’s increasing cyber security issues. A series of national strategy programs and action plans followed the founding of the Taskforce and were carried out over the last fifteen years. Authorities in Taiwan are deliberating over the draft of “Information and Communication Management Act (ICM Act)” in response to the increasing awareness of potential malicious cyberattacks targeting the public and private sector. Under this Act, both government and nongovernment bodies will have to comply with the new legislation with the hope that the coded regulations and new management scheme will have a positive impact on enhancing national security and increasing the domestic market. This article aims to provide a thorough review of the proposed national information security policies in Taiwan between 2001 and 2017, as well as deliver a case for the comparative study of industrial policies employed to bolster domestic cyber security markets.1 By summarizing the government’s industrial policy in developing a cyber security market and identifying key stakeholders involved in the policy-making process, we describe the major rationale and drivers behind the government’s plan of action and aim to push for a more comprehensive understanding of the proposed policy tools used by the authorities to boost the development of the cyber security industry in Taiwan.
Topic:
National Security, Science and Technology, and Cybersecurity
Political Geography:
Taiwan and Asia

285. The Strategic Importance of Antartica for China and India Under Mearsheimer's Offensive Realism

Author:
Monica Heinzaelmann and Leonardo Faria de Mattos
Publication Date:
06-2018
Content Type:
Journal Article
Journal:
AUSTRAL: Brazilian Journal of Strategy International Relations
Institution:
Postgraduate Program in International Strategic Studies, Universidade Federal do Rio Grande do Sul
Abstract:
The Antarctic Treaty was signed during the Cold War and intended to preserve the continent and transform it into a conflict free territory, prioritizing scientific cooperation. Despite having quadrupled the number of its signatories, the Antarctic Treaty System (ATS) faces nowadays the uncertainties of the new international order. Starting out from John Mearsheimer’s realistic perspective, this paper aims to analyze, the strategic importance of Antarctica and the interests that China and India have on the continent, as well as speculate on how their rise on the international scenario can impact the future of the Antarctic Treaty System.
Topic:
International Cooperation, International Trade and Finance, Science and Technology, and Treaties and Agreements
Political Geography:
China, India, Asia, and Antartica

286. Making Korea Grow Again: Rebalancing the Moon Jae-in Economic Agenda

Author:
Choong Yong Ahn
Publication Date:
05-2018
Content Type:
Working Paper
Institution:
Korea Economic Institute of America (KEI)
Abstract:
The Moon Jae-in administration in South Korea has taken a two-pronged approach to ensure urgently needed job creation and inclusive growth. Although measures towards each set of economic policies have been implemented since Moon took office in May 2017, what’s often referred to as “incomeled growth” has been prioritized over innovative growth. The income-led growth model is largely driven by domestic consumption through pro-labor distributional policies including a wage hike to raise the disposable income of low- and middleincome individuals, thereby triggering equity with growth. Focused more on the supply side, the innovative growth model encourages startups to create jobs and innovate. It is a great challenge for Korea to pursue growth and equity through both sets of policies. After a year in office, the Moon administration’s economic agenda, often referred to as J-nomics, has not fully produced the intended policy objectives in terms of job creation and growth. To mitigate a declining potential growth rate and pursue robust and inclusive growth, the twin policies need to be rebalanced, reprioritized, and interconnected in a mutually reinforcing manner to empower the private sector to play a bigger role. As a mid-sized open economy, Korea requires global market competitiveness on the supply side to create decent jobs by buoying entrepreneurship and innovation. Structural reforms in the labor market combined with deregulations necessary for the advent of disruptive 4th-industrial-revolution technologies must be expedited. Furthermore, a new business ecosystem in which win-win collaborations between globally-oriented conglomerates and small businesses must be encouraged to replace a zero-sum business culture.
Topic:
Economics, Science and Technology, Global Markets, and Economic Growth
Political Geography:
Asia, South Korea, and Korea

287. Science Diplomacy: An Underestimated Toolkit of South Korea’s Foreign Policy

Author:
Olga Krasnyak
Publication Date:
04-2018
Content Type:
Working Paper
Institution:
Korea Economic Institute of America (KEI)
Abstract:
Science diplomacy is becoming increasingly popular in foreign policy. Branching out of public diplomacy, science diplomacy is a sophisticated and knowledge-based toolkit to secure and promote foreign policy objectives. Unlike the U.S., the best example of how effective science diplomacy can be, South Korea does not recognize science diplomacy as a source of soft power. This paper looks at ways to incorporate science diplomacy into Seoul’s foreign policy agenda, the benefits from which will further its goals in advancing South Korea’s image as an attractive, cooperative, and influential country. Building South Korea’s reputation as among the core of scientifically developed countries will not only enhance commercial benefits, but also help address the current security dilemma, shape future geopolitical outcomes in a multi-polar world, and accelerate Korea’s participation in emerging scientific endeavors such as space exploration.
Topic:
Foreign Policy, Diplomacy, and Science and Technology
Political Geography:
Asia and South Korea

288. Resourcing Green Technologies through Smart Mineral Enterprise Development

Author:
Salem Ali, Perrine Toledano, Nicolas Maennling, Nathaniel Hoffman, and Lola Aganga
Publication Date:
02-2018
Content Type:
Working Paper
Institution:
Columbia Center on Sustainable Investment
Abstract:
Much has been written in recent years about the urgency to develop new technologies that meet ambitious targets for more efficient energy infrastructure with reduced reliance on fossil fuels. There has also been growing recognition that mineral scarcity can hamper the speed of key technologies being developed. The dominance of China as a global supplier of many technology minerals and the Chinese government’s ability to constrain supply has led to a focus on the international trade dimensions of the challenge. The United States, Japan, the European Union and South Korea have all been keenly focused on securing mineral supply for their domestic industries through a range of initiatives. These efforts have included the World Trade Organization dispute resolution mechanism; research investment in alternative and more widely available materials where possible; and considering strategic stockpiles of minerals from internal sources that harken back to Cold War era strategies for material security. In this report, we argue that a neglected area in addressing the mineral scarcity challenge is the private sector’s current trajectory for geological mineral exploration of key minerals and innovative initiatives on material efficiency and recycling where possible. We term this approach Smart Mineral Enterprise Development (SMED) which entails a partnership between public and private entities to consider pathways whereby public sector data sharing on geology can be coupled with research innovations in the private sector both upstream and downstream of mineral supply. Just as smart energy grids harness efficiencies in electricity supply and demand through a dynamic process of communication, SMED processes can do the same for key technological bottlenecks in mineral supply. We focus on cobalt to highlight the bottlenecks; identify alternative supply sources based on current exploration and recycling technologies; propose ways in which the international legal framework could be adapted to promote investments in critical minerals; and consider ways by which the public sector can assist the private sector in developing a SMED process that would bring forth more efficient and effective entrepreneurial activity to meet our green technology needs.
Topic:
Climate Change, Energy Policy, Science and Technology, Natural Resources, European Union, Green Technology, and Electricity
Political Geography:
United States, China, Europe, Asia, and South Korea

289. Made in China 2025 as a Challenge in Global Trade Governance: Analysis and Recommendations

Author:
Anton Malkin
Publication Date:
08-2018
Content Type:
Working Paper
Institution:
Centre for International Governance Innovation (CIGI)
Abstract:
This paper provides a reassessment of Made in China 2025 (MIC 2025) — China’s industrial policy framework aimed at helping the country overcome the much-maligned middle-income trap — in the context of global trade governance. It suggests that China’s industrial policies have been viewed too narrowly — without sufficient attention to longer-term global governance issues — by a large segment of the global business and policy-making community. The paper argues that the general aims of MIC 2025 and the policies that underpin them are not unreasonable, given the increasingly prevalent dilemmas in global trade that China’s leaders are grappling with. These include problems of international development arising from growing global industrial concentration — driven by the growth of the intangible economy — and China’s shrinking access to importing and developing technological components (such as semiconductor chips) that are increasingly characterized as “dual-use” by China’s trading partners. This suggests that resolving the concerns of China’s trading partners regarding China’s industrial policies requires global trade governance reform to ensure an equitable, rules-based global trading order that addresses the legitimate needs of developing and middle-income economies in acquiring foreign-owned technological components and know-how, for the purposes of economic development. The paper concludes by outlining specific recommendations for Canada’s policy makers in improving their economic relationship with China in the context of MIC 2025.
Topic:
Development, Industrial Policy, Science and Technology, Governance, and Free Trade
Political Geography:
China, Canada, Asia, and North America

290. The Future of Nuclear Power in China

Author:
Mark Hibbs
Publication Date:
05-2018
Content Type:
Special Report
Institution:
Carnegie Endowment for International Peace
Abstract:
China is on course to lead the world in the deployment of nuclear power technology by 2030. Should it succeed, China will assume global leadership in nuclear technology development, industrial capacity, and nuclear energy governance. The impacts will be strategic and broad, affecting nuclear safety, nuclear security, nonproliferation, energy production, international trade, and climate mitigation. Especially critical is whether China achieves an industrial-scale transition from current nuclear technologies to advanced systems led by fast neutron reactors that recycle large amounts of plutonium fuel.
Topic:
Climate Change, Energy Policy, Science and Technology, Governance, Nuclear Power, Nonproliferation, and Industry
Political Geography:
China and Asia