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Begin New Search Political Geography China Publication Year within 25 Years

1681. Capital Account Liberalization and the Role of the Renminbi

Author:
Nicholas R. Lardy and Patrick Douglass
Publication Date:
02-2011
Content Type:
Working Paper
Institution:
Peterson Institute for International Economics
Abstract:
Despite an erosion of consensus on its benefits, capital account convertibility remains a long-term goal of China. This paper identifies three major preconditions for convertibility in China: a strong domestic banking system, relatively developed domestic financial markets, and an equilibrium exchange rate. The authors examine each of these in turn and find that, in significant respects, China does not yet meet any of the conditions necessary for convertibility. They then evaluate China's progress to date on capital account liberalization, including recent efforts to promote renminbi internationalization and greater use of the renminbi in trade settlement. The paper concludes with an overview of remaining obstacles to convertibility and policy recommendations.
Topic:
Development, Economics, and Monetary Policy
Political Geography:
China

1682. Estimates of Fundamental Equilibrium Exchange Rates, May 2011

Author:
William R. Cline and John Williamson
Publication Date:
05-2011
Content Type:
Policy Brief
Institution:
Peterson Institute for International Economics
Abstract:
This policy brief updates our estimates of fundamental equilibrium exchange rates (FEERs) to the latest available data, which for exchange rates are the average rates of April 2011, and for the IMF's balance of payments forecasts, those published in the April 2011 issue of World Economic Outlook (WEO; see IMF 2011a). It is the central study in what has now become a regular annual cycle, in which we draw out what we believe to be the implications of the IMF's forecasts for the pattern that exchange rates need to take if the world is to approach a reasonably satisfactory medium-run position. This past year we also published an interim policy brief (Cline and Williamson 2010b) in which we updated our calculations to the average exchange rates of October 2010, as well as commented on Brazilian Finance Minister Guido Mantega's description of international monetary events as constituting "currency wars." As in the previous year, however, the November 2010 policy brief updated our estimates only for intervening changes in market exchange rates. We did not make use of the IMF's revised autumn WEO forecasts to update our estimates of FEERs; on the contrary, we assumed the FEERs estimated in May 2010 were correct. In contrast, this policy brief presents totally new estimates of FEERs.
Topic:
Economics and Monetary Policy
Political Geography:
United States and China

1683. The Elephant in the "Green Room": China and the Doha Round

Author:
Arvind Subramanian, Aaditya Mattoo, and Francis Ng
Publication Date:
05-2011
Content Type:
Policy Brief
Institution:
Peterson Institute for International Economics
Abstract:
The puzzle about the Doha Round of multilateral trade negotiations in the World Trade Organization (WTO) is not why it is on life support now but how it has survived as a viable multilateral initiative for so long. From the very beginning, it was clear that the Round suffered from a lack of private-sector interest, the engine that had driven previous rounds of successful trade negotiations. At most, Doha promised to deliver some security of access for unilateral liberalization previously undertaken by countries and some modest incremental market opening (Martin and Mattoo 2009; Hufbauer, Schott, and Wong 2010). That the Round had much to be modest about was reflected in the failure of even antiglobalization protesters to show up for the more recent meetings of the Doha Round.
Topic:
Economics, Globalization, International Trade and Finance, and Markets
Political Geography:
China

1684. Getting Surplus Countries to Adjust

Author:
John Williamson
Publication Date:
01-2011
Content Type:
Policy Brief
Institution:
Peterson Institute for International Economics
Abstract:
The world has witnessed two distinct attempts to build a multilateral mechanism to discipline surplus countries that declined to adjust their surpluses, and several proposals are currently on the table to do the same. On the two previous occasions the major surplus country of the day defeated attempts to create such a mechanism, and today China (not to mention Japan or Germany) exhibits no enthusiasm for the idea. Despite the importance of the issue, there has been remarkably little discussion of these proposals.
Topic:
Economics, International Trade and Finance, International Monetary Fund, and Monetary Policy
Political Geography:
Japan, China, and Germany

1685. Who Captures Value in Global Supply Chains?

Author:
Jyrki Ali-Yrkkö, Petri Rouvinen, Timo Seppälä, and Pekka Ylä-Anttila
Publication Date:
02-2011
Content Type:
Working Paper
Institution:
Berkeley Roundtable on the International Economy
Abstract:
Available statistics tell us little about the economic consequences of increasing global dispersion of production processes. In order to shed light on the issue, we perform grass roots detective work to uncover the geography of value added in the case of a Nokia N95 smartphone circa 2007. The phone was assembled in Finland and China. In the case when the device was assembled and sold in Europe, the value-added share of Europe (EU-27) rose to 68%. Even in the case when it was assembled in China and sold in the United States, Europe captured as much as 51% of the value added, despite of the fact that it had rather little role in supplying the physical components. Our analysis illustrates that international trade statistics can be misleading; the capture of value added is largely detached from the physical goods flows. It is rather services and other intangible aspects of the supply chain that dominate. While final assembly – commanding 2% of the value added in our case – has increasingly moved offshore, the developed countries continue to capture most of the value added generated by global supply chains.
Topic:
Economics, Globalization, Industrial Policy, International Trade and Finance, and Markets
Political Geography:
China, Europe, and Finland

1686. China: New Incentives?

Author:
Su Hsing Loh
Publication Date:
06-2011
Content Type:
Journal Article
Institution:
Chatham House
Abstract:
The People's Republic of China's twelfth five-year plan, which provides the overarching guidelines for its domestic policies from 2011- 2015, was officially adopted on March 14 of this year.
Political Geography:
China

1687. Afghanistan, NATO and the Regional States: Challenges and Responses

Author:
Shirin Akiner
Publication Date:
04-2011
Content Type:
Journal Article
Journal:
Iranian Review of Foreign Affairs
Institution:
Center for Strategic Research (CSR)
Abstract:
Ambiguous, often contradictory, assessments of the achievements of NATO/ISAF operations in Afghanistan make it difficult to form a clear picture of the situation on the ground. However, despite the rhetoric of politicians and military leaders who speak of 'sticking it out' till the job is done, there are unmistakable signals that the endgame has started. The emphasis now is on fashioning an exit strategy that will justify the claim of 'mission accomplished'. It is ironic that it is only now, with the dawning awareness that 'a victor's peace is impossible', that the importance of involving the regional states is finally being recognized. With the exception of Pakistan, which from the outset played a strategic role in Western-led operations, there was an implicit reluctance, amounting to a virtual ban, on cooperating with these states as equal partners. China, Russia and Iran were largely ignored, while the Central Asian states were regarded mainly as transit routes. Yet by geography, history, ethnic ties and culture, Afghanistan is an integral part of the region. The 'neighbourhood' states are neither unaware nor indifferent to what happens there. Before and since 2001 there have been regional initiatives aimed at promoting stability and development in Afghanistan. This paper gives an overview of the main initiatives, bilateral and multilateral which seek to promote the country's re-integration into regional cultural, economic and security networks.
Political Geography:
Pakistan, Afghanistan, Russia, China, Iran, and Central Asia

1688. Iran and China - Looking for an Alliance and Regional Power Status

Author:
Erzsébet N. Rózsa
Publication Date:
04-2011
Content Type:
Journal Article
Journal:
Iranian Review of Foreign Affairs
Institution:
Center for Strategic Research (CSR)
Abstract:
It is widely held that the 21st century will be China's century on the global stage, while Iran, in the beginning of the 21st century, is becoming a regional power in the Middle East even if the limits to its power can be questioned. Both countries stand practically alone, without allies in a world that looks upon their expansion unfavourably, if not with outright hostility. The 21st century, however, will not be the period of gaining influence by military means, even if the use of military force cannot be excluded. One of the main characteristics of both the Chinese and the Iranian expansions is economic expansion. Chinese presence is booming in the Middle East. Iran has developed a significant economic activity in Western Afghanistan, then in Iraq. Both countries look back on ancient civilisations, to which they frequently refer to and which contributes to their perceptions of the surrounding world. China has traditionally perceived itself as the centre of the universe. Iran, by the right of its Islamic revolution of 1979, wishes to be the leading power of the Islamic world. Ayatollah Khomeini was speaking of Islam, in spite of the fact that the Islamic government put forward by him is rooted in Shiite Islam. This leading role seems to return under the presidency of Ahmadinejad – even if in a new form. 11 September 2001 has created the moving space for Iran in which it can become a regional power.
Political Geography:
Afghanistan, China, Iraq, Iran, Middle East, and West Asia

1689. What China Wants

Author:
Andrew J. Nathan
Publication Date:
07-2011
Content Type:
Journal Article
Journal:
Foreign Affairs
Institution:
Council on Foreign Relations
Abstract:
Henry Kissinger's new book argues that the United States should yield gracefully to China's rise; Aaron Friedberg's gives the opposite advice. By focusing on intentions instead of capabilities, both books overstate China's actual power.
Political Geography:
United States and China

1690. Disengaging from Taiwan

Author:
Douglas Paal, Charles Glaser, and Shyu-tu Lee
Publication Date:
07-2011
Content Type:
Journal Article
Journal:
Foreign Affairs
Institution:
Council on Foreign Relations
Abstract:
MISREADING CHINA'S INTENTIONS Shyu-tu Lee According to Charles Glaser, the prospects for avoiding war between the United States and China are good ("Will China's Rise Lead to War?" March/April 2011). But by ignoring China's history and economic policy and other relevant factors, Glaser arrives at policy prescriptions that would increase the chance of a Chinese nuclear attack on the U.S. homeland. Glaser misjudges Chinese motives. China's military modernization is not primarily motivated by insecurity, as he asserts. China is not threatened by the United States or any of its neighbors. It is advocating its model of governance -- managed capitalism combined with one-party authoritarianism -- as a more efficient alternative to a free-market economy and democracy. China's mission is to regain its place as the dominant superpower so that the country can cleanse itself of the humiliation it has experienced at the hands of the West. The rise of China poses grave challenges to U.S. security. Beijing implements a mercantilist trade policy and artificially sets a low value on its currency to promote exports, thus creating a large U.S. trade deficit with China year after year. Its army has been modernizing at a rapid pace, developing anti-access, area-denial weapons and cyber- and space-warfare capabilities. Meanwhile, China wants to integrate Taiwan because its democracy threatens Beijing's autocratic and repressive rule. In addition, Beijing needs Taiwan as a military base from which to project power into the Indian and Pacific oceans. To keep the peace, the United States must discard the culture of excessive deference to Beijing and implement policies to maintain U.S. military superiority, stanch the flow of U.S. wealth to China, steer China toward democratization, strengthen its alliances with Japan and South Korea, and engage China in an economic and strategic dialogue to promote fair trade and avoid misunderstandings.
Political Geography:
United States, Japan, China, and South Korea