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51. Hard Cash and Soft Power: When Chinese Firms Win EU Contracts

Author:
Allison Carragher
Publication Date:
11-2022
Content Type:
Working Paper
Institution:
Carnegie Endowment for International Peace
Abstract:
The European Union is a committed defender of open markets. This extends to its public procurement mechanisms, which remain open to all bidders. EU policymakers have developed tools intended to defend the bloc’s interests in the face of increased economic and strategic competition from the People’s Republic of China (PRC), but few policymakers understand how the European public views the debate. As the first major EU-funded, China-built infrastructure project, the Pelješac Bridge in Croatia provides a unique opportunity to conduct a thorough analysis of European public opinion toward EU tendering policy and Chinese companies. Brussels has labelled the PRC a partner for cooperation and negotiation, an economic competitor, and a systemic rival,1 but the nuances of this policy remain difficult to ascertain. Projects and policies presented by China as “cooperation” often contain elements of economic competition or are leveraged by the PRC for strategic gain. However, this dichotomy has not filtered down to citizens. Extensive polling reveals that Croatians share very few of the concerns of EU policymakers. Furthermore, the PRC state-owned construction firm enjoys more visibility than the EU, which provided hundreds of millions of euros for the project. In terms of soft power, which is here defined as the ability of a country to shape the narrative, the Pelješac Bridge has been a resounding success for the PRC. The Croatian public has largely embraced the PRC’s preferred image of itself as a reliable and trustworthy economic partner and a benign power that does not interfere in domestic affairs. This opinion diverges from official EU policy and glosses over evidence of the PRC’s unfair economic practices, environmental and labor shortcomings, and interference in European democracies. Notably, the PRC’s soft-power gains were achieved on the EU’s own dime. It is not in the EU’s interest to bankroll the economic and soft-power ambitions of its systemic rival. As a democratic institution, the EU has a responsibility to both respond to public opinion and educate its citizenry when EU interests are at stake. In this case, the EU should recalibrate its tendering policy to be fairer and better aligned with its own economic and strategic interests. This process is currently underway, but it should also be extended to co-financing arrangements like the Team Europe approach, which combines traditional EU assistance with support from individual EU member states and international financial institutions. These policies must also be paired with renewed efforts at visibility and branding. Lastly, there is a need to collect and publish better data on the end users of EU funds in order to evaluate successes and identify future issues.
Topic:
Infrastructure, European Union, Economy, Business, Soft Power, and Strategic Competition
Political Geography:
China and Asia

52. Public Views of the U.S.-China Competition in MENA

Author:
Michael Robbins
Publication Date:
07-2022
Content Type:
Special Report
Institution:
Arab Barometer
Abstract:
Over the last decade, the global competition between the U.S. and China has been on the rise. China’s increased global outlook, particularly through its Belt and Road Initiative (BRI), has led to a significantly greater economic engagement with countries across the Middle East and North Africa (MENA). At the same time, the U.S. continues its retrenchment from the region focusing on a broader pivot to Asia. How have these developments affected views toward both countries? Arab Barometer’s wave seven, the largest public opinion survey of its kind across MENA since the time of COVID, provides insight into these questions. Across MENA, China remains more popular than the U.S. Among the nine countries surveyed, only in Morocco is the U.S. more popular overall than China. In the remainder, China tends to be significantly more favored than the U.S. Yet, this story may be gradually changing. When asked about closer economic ties between their country and the two global powers, in the majority of countries surveyed, citizens are significantly less likely to say they want stronger ties with China than they were in 2018-19. In no country is there an increased desire for stronger economic ties with China while in multiple cases there has been a 20-point shift against China. By comparison, in most countries the desire for closer economic ties with the U.S. has increased or remained unchanged over the same period. This outcome suggests that BRI may not be having the intended effects, with citizens now moving away from China overall.
Topic:
Infrastructure, Conflict, Belt and Road Initiative (BRI), Strategic Competition, and Rivalry
Political Geography:
China, Asia, North America, and United States of America

53. How China’s Human Capital Impacts Its National Competitiveness

Author:
Briana Boland, Kevin Dong, Jude Blanchette, and Ryan Haas
Publication Date:
05-2022
Content Type:
Policy Brief
Institution:
Center for Strategic and International Studies (CSIS)
Abstract:
How will the strengths and weaknesses of China’s human capital impact national competitiveness? China’s efforts to maintain economic growth, strengthen supply chains, develop strategic science, technology, engineering, and mathematics (STEM) sectors, and secure a modern military edge hinges on the ability to cultivate and utilize human capital. As the United States and other countries increasingly engage in multidomain competition with China, it is critical to start from a clear-eyed understanding of China’s human capital and Beijing’s strategy for nurturing national talent. Investments in higher education, strategic STEM sectors, and military talent demonstrate key areas in which Beijing is focusing on cultivating human capital. However, China must overcome significant obstacles to innovate as it faces substantial demographic pressures, socio-economic inequalities, and challenges to attracting and retaining top talent both domestically and internationally.
Topic:
Economics, Labor Issues, Human Capital, and Strategic Competition
Political Geography:
China and Asia

54. Bridging U.S.-Led Alliances in the Euro-Atlantic and Indo-Pacific: An Inter-theater Perspective

Author:
Luis Simon
Publication Date:
05-2022
Content Type:
Policy Brief
Institution:
Center for Strategic and International Studies (CSIS)
Abstract:
Although U.S. strategic competition with China and Russia is often presented as a challenge with two separate fronts, this brief argues that the Euro-Atlantic and Indo-Pacific theaters are increasingly linked. Insofar as preserving a favorable balance of power in these two regions hinges largely on U.S. power, and as long as they both continue to exercise a significant pressure on U.S. defense resources, their alliance and deterrence architectures should be looked at from an inter-theater perspective. Thus, optimally managing atwo-front challenge would require a serious effort to bridge U.S.-led alliances in both regions.
Topic:
International Cooperation, Hegemony, Alliance, Strategic Competition, Rivalry, and Strategic Interests
Political Geography:
Russia, China, Europe, Asia, North America, United States of America, and Indo-Pacific

55. Strategic Competition in the Financial Gray Zone

Author:
Heather A Conley, James Andrew Lewis, Eugenia Lostri, and Donatienne Ruy
Publication Date:
04-2022
Content Type:
Special Report
Institution:
Center for Strategic and International Studies (CSIS)
Abstract:
Over the past 10 years, the U.S. government has slowly reoriented its foreign and security policy from the fight against global terrorism toward strategic competition with Russia and China. This reorientation has been accompanied by a new examination of how strategic competition will impact the integrity and future stability of the U.S. economy and financial system. One of the most important elements of strategic competition is sub-threshold warfare (also called asymmetric, hybrid, or gray zone warfare), wherein strategic competitors seek to shape the geostrategic environment in their favor, from information operations to economic warfare—which includes such tools as illicit finance and strategic corruption. Strategic competitors present a clear economic and financial threat to the United States when they operate in the emerging financial gray zone, in which malign actors can take advantage of the U.S. financial system to further their aims and disarm the country internally. The U.S. government, along with its allies, has only begun to acknowledge the sweeping nature of the financial gray zone and to reposition itself to compete within it. Because adversaries exploit the seams between the internal and external policies and authorities, Washington must have greater insights into a complex operating system and better integrate data across the many relevant agencies—in a way, connecting the financial dots. As it develops this comprehensive picture, the U.S. government should develop stronger defensive and offensive policy tools to counter this emerging threat.
Topic:
Economics, Finance, Strategic Competition, and Rivalry
Political Geography:
China, Asia, North America, and United States of America

56. Starr Forum: The Future of US - China Relations

Publication Date:
02-2022
Content Type:
Video
Institution:
MIT Center for International Studies
Abstract:
Moderator: Taylor Fravel is Arthur and Ruth Sloan Professor of Political Science and Director of the MIT Security Studies Program (SSP). He studies international relations, with a focus on international security, China, and East Asia. Panelists: Eric Heginbotham is a principal research scientist at MIT’s Center for International Studies (CIS) and SSP. He is a specialist in Asian security issues. Before joining MIT, he was a senior political scientist at the RAND Corporation, where he led research projects on China, Japan, and regional security issues. Ketian Vivian Zhang is an assistant professor of international Security in the Schar School of Policy and Government at George Mason University. She studies rising powers, coercion, economic statecraft, and maritime disputes in international relations and social movements in comparative politics, with a regional focus on China and East Asia. Ali Wyne is a senior analyst with Eurasia Group's Global Macro practice, where he focuses on US-China relations and great-power competition. He is the author of a forthcoming book, America's Great-Power Opportunity: Revitalizing US Foreign Policy to Meet the Challenges of Strategic Competition.
Topic:
Diplomacy, Bilateral Relations, Hegemony, Strategic Competition, Rivalry, and Strategic Interests
Political Geography:
China, Asia, North America, and United States of America

57. Revising down the rise of China

Author:
Roland Rajah and Alyssa Leng
Publication Date:
03-2022
Content Type:
Commentary and Analysis
Institution:
Lowy Institute for International Policy
Abstract:
China will likely experience a substantial long-term growth slowdown owing to demographic decline, the limits of capital-intensive growth, and a gradual deceleration in productivity growth. Even with continued broad policy success, our baseline projections suggest annual economic growth will slow to about 3% by 2030 and 2% by 2040, while averaging 2–3% overall from now until 2050. China would still become the world’s largest economy, but it would never enjoy a meaningful lead over the US and would remain far less prosperous and productive per person even by mid-century.
Topic:
Demographics, Economy, Economic Growth, and Strategic Competition
Political Geography:
China, Asia, and United States of America

58. US-China Mutual Vulnerability: Perspectives on the Debate

Author:
David Santoro
Publication Date:
05-2022
Content Type:
Special Report
Institution:
Pacific Forum
Abstract:
The study US-China Mutual Vulnerability: Perspectives on the Debate analyzes the mutual vulnerability question in US-China strategic nuclear relations. It asks whether the United States should acknowledge mutual vulnerability with China and, if so, how and under what conditions it should do so. The goal is not to give a yes-or-no answer but to provide a comprehensive examination of the issue to better understand the benefits, costs, and risks associated with various options. The study includes chapters by US, Japanese, South Korean, Australian, and Chinese scholars.
Topic:
International Relations, Foreign Policy, Nuclear Weapons, Strategic Competition, and Vulnerability
Political Geography:
China, Asia, North America, and United States of America

59. The Digital Asset Battlefield Between the United States and China

Author:
Michael B Greenwald
Publication Date:
12-2022
Content Type:
Journal Article
Journal:
Fletcher Security Review
Institution:
The Fletcher School, Tufts University
Abstract:
United States dollar dominance has underpinned American economic and geopolitical leadership since the Second World War. The tremendous structural and geopolitical advantages the United States derives from the hegemony of the dollar have contributed substantially to Washington’s military power, alliances, and strong hand in trade relations with other states. However, the convergence of a shifting international balance of power and the accelerated digitalization of the world economy will have major implications for this pillar of American strength.
Topic:
Geopolitics, Currency, Strategic Competition, and Digitization
Political Geography:
China, Asia, North America, and United States of America

60. How to Respond to China’s Growing Influence in the Gulf

Author:
Louis Dugit-Gros
Publication Date:
07-2022
Content Type:
Policy Brief
Institution:
The Washington Institute for Near East Policy
Abstract:
Beijing’s use of intertwined civil and military tools in the Gulf mirrors its activity closer to home, but the West can readily counter this influence by capitalizing on the region’s desire for diversified partnerships. While the Biden administration works to repair ties with Persian Gulf partners in the wake of Russia’s Ukraine invasion, China is getting more attention for its expanding influence in the Indo-Pacific region, including recent reports of naval deals and military activity in the Solomon Islands and Cambodia. Some commentators have even criticized the White House for letting its resolve against Moscow supposedly delay the long-awaited “pivot to Asia” sought by three successive U.S. administrations. Yet talk of the “pivot” often oversimplifies the geopolitical situation, in particular by ignoring China’s progress in the Gulf. The pivot theory relies on the assumption that Beijing is mainly ramping up its influence in its own neighborhood. In reality, the Chinese strategy is global, and the methods it applies in the Indo-Pacific are being used in similar fashion elsewhere, including the Gulf. Such activities merit closer attention from the West even if they are not the number-one priority at the moment.
Topic:
Security, Economics, Strategic Competition, Military, and Energy
Political Geography:
China, Asia, and Gulf Nations