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101. U.S.-China Technological Rivalry and Its Implications for Korea

Author:
Wonho Yeon
Publication Date:
11-2020
Content Type:
Policy Brief
Institution:
Korea Institute for International Economic Policy (KIEP)
Abstract:
Recent developments in advanced technology are changing the concept of hegemonic competition. The key feature of technologies in the 4th Industrial Revolution is dual-use. Emerging technologies such as 5G, AI, big data, robotics, aerospace, supercomputers, and quantum computer-related technologies can be used for both civilian and military purposes. The more you invest in the development of advanced technologies, the closer you will be to economic and military hegemony. Therefore, it is no wonder that the U.S. harbors great concerns facing the rise of China in these advanced technologies. To estimate and compare the innovation productivity of the U.S. and that of China, this study constructs a structural estimation model in which each country produces international patents using R&D expenditures and R&D researchers. Empirical results have presented novel findings indicating that China’s innovation productivity has surpassed that of the U.S. since 2015. At the same time we can observe that the U.S. has the world’s largest intellectual property surplus and keeps expanding it, while China’s intellectual property deficit has been growing every year. Given the two contradictory facts - China’s high innovation productivity and low intellectual property balance - we can conclude that China is strong at “innovation” but weak at “invention.” Knowing this, the U.S. eventually began to target this vulnerability. This is the U.S.’ Tech-Decoupling strategy. To achieve U.S.-China tech decoupling, the U.S. has been strengthening trade and investment sanctions against China. In specific, the U.S. has been utilizing the Export Control Reform Act (ECRA), Section 889 of the 2019 National Defense Authority Act, and the Foreign Investment Risk Review Modernization Act (FIRRMA). In return, China is responding to the U.S. sanctions with the new “Long March” strategy rather than a tit-for-tat strategy. In other words, China has been setting long-term aims and responding to the U.S. sanctions by improving institutional arrangements, refining industrial policies, and developing its own technologies such as “Dual-circulation strategy” and “New Infrastructure Plan.” Ironically, increasing pressure from the U.S. is expected to further strengthen China’s R&D capabilities in advanced technology and accelerate its competitiveness in emerging industries. With the onset of the 4th Industrial Revolution, China is rapidly closing the quality gap and technology gap in major industries where Korea has a comparative advantage. If Korea does not adequately respond to changes, it may be difficult to maintain a comparative advantage over China. Thus, now that U.S.-China tensions are intensifying, Korea is facing a pivotal moment in determining the future path of its economy.
Topic:
Science and Technology, Sanctions, Investment, Innovation, Trade, and Strategic Competition
Political Geography:
China, Asia, North America, Korea, and United States of America

102. An Army Transformed: USINDOPACOM Hypercompetition and US Army Theater Design

Author:
Mr. Nathan P. Freier, John Schaus, and Prof. William G. Braun III
Publication Date:
07-2020
Content Type:
Book
Institution:
The Strategic Studies Institute of the U.S. Army War College
Abstract:
The United States faces a hypercompetitive geopolitical landscape in the Indo-Pacific region, arguably the most consequential theater for US national interests over the coming decades. Although the United States has created exquisite military capabilities to counter insurgencies and fight terrorists, rivals like China have developed a whole-of-government toolkit focused on expanding their span of control and freedom of action, separating the United States from its allies, and deterring US leaders from greater engagement in East Asia. China is actively transforming its military forces, with an eye toward defeating the United States in the event of armed hostilities. The People’s Republic of China (PRC) is also creatively employing its military and paramilitary assets strategically to outmaneuver the United States and partners in meaningful gray zone approaches. The PRC enjoys strategic depth and increasingly operates on internal or heavily protected lines of communication while demonstrating the ability to threaten American interests with a variety of multi-domain capabilities and forces. Meeting this challenge will require joint transformation to a more hypercompetitive theater design. Army adoption of the four transformational roles of grid, enabler, multi-domain warfighter, and capability and capacity generator will be essential to realizing this more hypercompetitive Joint theater approach.
Topic:
Army, Gray Zone, Strategic Competition, and Joint Operations
Political Geography:
China, Asia, United States of America, and Indo-Pacific

103. The Middle East in an Era of Great Power Competition

Author:
Stephen Walt, Bilal Y. Saab, and Barry R. Posen
Publication Date:
04-2020
Content Type:
Video
Institution:
Middle East Institute (MEI)
Abstract:
Of all the internal obstacles and external challenges the United States is likely to face in its pursuit of its new foreign policy priority of great power competition, the Middle East might prove to be the biggest. If the region continues to command U.S. attention and resources, Washington will struggle in its efforts to effectively pivot and counter Chinese and Russian ambitions in Asia and Europe, respectively. How does or should the Middle East fit in America’s new grand strategy? Does the great power competition necessitate an entirely new U.S. approach toward the Middle East? Which U.S. approach best serves Washington’s new global plans? To answer these questions and many others, the Middle East Institute (MEI) is honored to host a conversation with Professor Barry Posen from the Massachusetts Institute of Technology and Professor Stephen Walt from Harvard University.
Topic:
International Relations, Foreign Policy, Grand Strategy, and Strategic Competition
Political Geography:
Russia, China, Europe, Middle East, Asia, and United States of America

104. The Importance of the Western Balkans in China’s Foreign Policy

Author:
Marcin Przychodniak
Publication Date:
06-2020
Content Type:
Special Report
Institution:
The Polish Institute of International Affairs
Abstract:
China’s cooperation with the Western Balkans through the “17+1” format and Belt and Road Initiative (BRI), among others, is primarily political. In the economic sphere, Chinese investments are to a large extent only declarations, and trade is marginal in comparison to cooperation with the EU or others. China’s goals are to gain political influence in future EU countries and limit their cooperation with the U.S. Competition with China in the region requires more intense EU-U.S. cooperation, made more difficult by the pandemic.
Topic:
Foreign Policy, International Trade and Finance, Belt and Road Initiative (BRI), Investment, and Strategic Competition
Political Geography:
China, Europe, Asia, and Balkans

105. Thailand’s strategic drift: Domestic determinants amidst superpower competition

Author:
Thitinan Pongsudhirak
Publication Date:
06-2020
Content Type:
Special Report
Institution:
Australian Strategic Policy Institute (ASPI)
Abstract:
After more than five years of military-authoritarian government following its 13th successful coup in May 2014, Thailand’s most recent elections on 24 March 2019 yielded a controversial parliament and a fractious post-election coalition government, headed by incumbent Prime Minister Prayut Chan-o-cha. This report argues that despite the challenges of domestic political preoccupations and the Covid-19 pandemic crisis, Thailand’s strategic role in the Indo-Pacific is too important to be marginalized and that the country is an indispensable piece of the regional jigsaw puzzle in an era of global power shifts and transitions. The current Sino-US competition involves far-reaching battleground between democracy and authoritarianism, and Thailand – one of America’s oldest treaty ally with increasingly close ties with China – is strategically consequential. The report explains the complexity of Thai’s foreign policy and implications for Australia.
Topic:
Foreign Policy, Defense Policy, National Security, and Strategic Competition
Political Geography:
Asia, Australia, Thailand, and Southeast Asia

106. Connectivity in Eurasia: Geopolitical Chances for the EU

Author:
Jacopo Maria Pepe
Publication Date:
09-2020
Content Type:
Policy Brief
Institution:
German Council on Foreign Relations (DGAP)
Abstract:
As the coronavirus pandemic fuels technological and geopolitical competition among the great powers, Europe’s relations with China and Russia are facing new challenges and risks. Still, the reconfiguration of power in Eurasia also brings unexpected opportunities for European actors in the area of connectivity. To seize them, the EU needs to reconcile its aspiration to be a globally accepted “normative-regulatory” power with both its limited financial means and its more assertive attitude to geopolitics.
Topic:
Science and Technology, European Union, Geopolitics, Strategic Competition, Pandemic, and COVID-19
Political Geography:
Russia, China, Europe, Eurasia, and Asia

107. The Avoidable War: The Case for Managed Strategic Competition

Author:
Kevin Rudd
Publication Date:
01-2020
Content Type:
Special Report
Institution:
Asia Society Policy Institute
Abstract:
Throughout the recent 18 months of the U.S.-China trade war, which has landed in a “phase one” deal, and awaits the tackling of more difficult economic elements in phase two negotiations, there has been a slow and steady structural shift in the U.S.-China relationship as it continues to head in a more adversarial direction. Against the backdrop of this drift toward confrontation occurring in the absence of any common strategic understanding or high-level diplomatic mechanism to manage the mounting economic, security, and technological tensions into the future, Asia Society Policy Institute President the Hon. Kevin Rudd brings together a series of speeches delivered during 2019 in the collection, The Avoidable War: The Case for Managed Strategic Competition. This volume works to help make sense of where the U.S.-China relationship is heading in the current period of strategic competition, and follows on from Rudd’s 2018 collection, The Avoidable War: Reflections on U.S.-China Relations and the End of Strategic Engagement. In this new volume, Rudd focuses not only on the bilateral relationship, but also on China's domestic politics, economics, and its strategic vision. But on the bilateral relationship, Rudd writes that while there may be a truce of sorts on the trade front during 2020, that will not be the case across the rest of the economic, political, and security relationship. Challenges will continue in areas such as the future of 5G mobile telecommunications infrastructure, the Belt and Road Initiative, Xinjiang, Hong Kong, allegations of Chinese political influence and interference in foreign countries’ internal democratic processes, and China’s increasingly close strategic collaboration with Russia. Militarily, tensions will continue in the East China Sea, the South China Sea, and the wider Indo-Pacific, together with confrontations less visible to the public eye in espionage, cyber, and space. Against this backdrop, and the steady erosion of diplomatic and political capital in the overall relationship, Rudd asserts that the “2020s loom as a decade of living dangerously in the U.S.-China relationship.” The Avoidable War: The Case for Managed Strategic Competition includes six speeches from 2019 covering a range of critical challenges in the U.S.-China relationship, as well as a December 2019 conversation at the Harvard Kennedy School which begins to outline an approach to managing the growing tinderbox of tensions across the spectrum of the bilateral relationship.
Topic:
Diplomacy, Bilateral Relations, Trade, and Strategic Competition
Political Geography:
China, Asia, North America, and United States of America

108. What Should Washington Do When the Belt and Road Comes to Russia?

Author:
Sagatom Saha and Theresa Lou
Publication Date:
05-2020
Content Type:
Journal Article
Journal:
Journal of Public and International Affairs (JPIA)
Institution:
School of Public and International Affairs (SPIA), Princeton University
Abstract:
Increasing military and economic cooperation between Russia and China has led some to believe that America's two primary adversaries are joining together in an anti-U.S. alliance. However, this emerging relationship amounts to little more than a convenient alignment rather than a steadfast alliance. This analysis delves into emerging Sino-Russian competition and cooperation in Central Asia and the Arctic to illustrate diverging strategic interests and also provides recommendations for U.S. policymakers to capitalize on divides between America's competitors.
Topic:
Grand Strategy, Alliance, Belt and Road Initiative (BRI), and Strategic Competition
Political Geography:
Russia, China, Eurasia, Asia, North America, Arctic, and United States of America

109. Regional Financial Arrangements and the International Monetary Fund: Sustaining Coherence in Global Financial Governance

Author:
C. Randall Henning
Publication Date:
01-2020
Content Type:
Working Paper
Institution:
Centre for International Governance Innovation (CIGI)
Abstract:
Cooperation and competition among regional financial arrangements (RFAs) and the International Monetary Fund (IMF) increasingly determine the effectiveness of the global financial safety net (GFSN), which many observers fear is becoming fragmented. Overlap among these crisis-fighting institutions has important benefits but also pitfalls, including with respect to competition, moral hazard, independence, institutional conflict, creditor seniority and non-transparency. The study reviews the RFAs in Latin America, East Asia and Europe to assess their relationships with the IMF and address these problems. Among other things, it concludes: institutional competition, while harmful in program conditionality, can be beneficial in economic analysis and surveillance; moral hazard depends critically on institutional governance and varies substantially from one regional arrangement to the next; secretariats should be independent in economic analysis, but lending programs should be decided by bodies with political responsibility; and conflicts among institutions are often resolved by key member states through informal mechanisms that should be protected and developed. Findings of other recent studies on the GFSN are critiqued. Architects of financial governance should maintain the IMF at the centre of the safety net but also develop regional arrangements as insurance against the possibility that any one institution could be immobilized in a crisis, thereby safeguarding both coherence and resilience of the institutional complex.
Topic:
Governance, Surveillance, Strategic Competition, and IMF
Political Geography:
Europe, Middle East, Asia, South America, Australia, North America, and Global Focus

110. China’s Private Military and Security Companies: “Chinese Muscle” and the Reasons for U.S. Engagement

Author:
Christopher Spearin
Publication Date:
06-2020
Content Type:
Journal Article
Journal:
PRISM
Institution:
Institute for National Strategic Studies (INSS), National Defense University
Abstract:
On 7 February 2019, General Thomas Waldhauser, then-Commander of United States Africa Command, stated the following during a hearing of the U.S. Senate Armed Services Committee: “The Chinese bring the money and the Russians bring the muscle.” “Chinese money” is evident in the fact that since 2009, China has been Africa’s largest trading partner.
Topic:
Privatization, Military Strategy, Hegemony, Conflict, and Strategic Competition
Political Geography:
China, Asia, North America, and United States of America