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791. Writing New Rules for the U.S.-China Investment Relationship

Author:
Jennifer M. Harris
Publication Date:
12-2017
Content Type:
Working Paper
Institution:
Council on Foreign Relations
Abstract:
Chinese outbound investment is on the rise, and much of it is finding its way into the United States. Be- tween 2010 and 2015, China’s foreign direct investment (FDI) inflows to the United States grew by an average of 32 percent annually.1 Within the past two years alone, Chinese foreign investment inflows to the United States increased four-fold, and available data suggests 2017 will see the second highest annual investment on record, after 2016.2 This is not a two-way street: the United States and other foreign investors do not enjoy similar open market access in China. China maintains a dizzying assortment of formal and informal barriers to for- eign investment—from outright restrictions and quotas to mandatory joint ventures, forced localization measures, and domestic licensing regimes. Despite years of negotiations, these barriers are, if anything, growing more cumbersome in many sectors. U.S. firms paint a darkening picture of the business climate they face in China. U.S. FDI in China has slowed considerably in recent years: after growing roughly 180 percent from 2002 to 2007 (albeit from a low baseline), U.S. FDI flows into China have declined since 2012.3 The one-way surge of Chinese investment into the United States comes against a backdrop of strategic mistrust between Washington and Beijing. Ongoing accusations of state-sponsored cyber predation of U.S. firms, Beijing’s increasing aggressiveness over territorial disputes, its systematic efforts to under- mine the U.S. alliance system in Asia, and mounting tensions over North Korea all contribute to a dark- ening mood in the U.S.-China relationship. And, like so much involving China, this investment is simply different. Rarely, if ever, has the United States seen an increase in investment of this magnitude—espe- cially from a non-ally and especially from one where the lines between state ownership and private own- ership are so inherently blurred. For all the concern surrounding Japanese investment in the United States in the 1980s—coming as it did amid fierce economic competition—those debates ultimately re- mained under the umbrella of the U.S.-Japan military alliance. All of this raises questions about whether the United States needs to tighten its stance on Chinese in- bound investment; proposals to that effect have bipartisan support in the Congress. The Donald J. Trump administration has signaled its desire for a tougher approach in its economic dealings with China, which U.S. businesses seem to welcome. One foundation for such an approach is the principle of reciprocity. Roughly two dozen sectors in China—construction, mining, banking, insurance, and so on—remain effectively off-limits to American investment, because the Chinese government protects its domestic companies through regulations and financial subsidies. Even in sectors that technically allow foreign investment, discriminatory industrial policies tilt the playing field in favor of Chinese firms. Until this changes, Washington would be justi- fied—even obligated—to limit Chinese investment in the U.S. market. However, U.S. policymakers do not have a consensus on what a policy of reciprocity would entail, and different policy interpretations could spell quite different economic and foreign policy consequences for the United States. The United States should aim for a version of reciprocity that allows it the flexibility to maximize pressure on the broad range of Chinese industrial policy concerns while leaving a clear route to negotiations. The United States should also encourage European and other Western countries, many of which are seeing similar increases in Chinese investment, to adopt this new approach.
Topic:
Diplomacy, International Cooperation, International Trade and Finance, and Foreign Direct Investment
Political Geography:
United States, China, Asia, and North America

792. China’s Crackdown and Arrest of Human Rights Activists

Author:
Kate Morgan
Publication Date:
04-2017
Content Type:
Working Paper
Institution:
Center on Human Rights Education, University of Denver
Abstract:
ince his rise to power in 2012, President Xi Jinping has cracked down on human rights lawyers, activists, and NGO actors. There have been multiple police raids, with one of the main targets being the Fengrui Law Firm in Beijing, which employs lawyers that are know to take on cases involving human rights activists. The most famous cases that arose from the Fenrui Law Firm were when they defended the dissident artist Ai Weiwei; Ilham Tohti, the Uighur academic sentenced to life in prison last year on charges of separatism; and Cao Shunli, a human rights campaigner who died after being denied medical care while in custody.
Topic:
Human Rights, Political Activism, NGOs, and Police
Political Geography:
China and Asia

793. The African Union's Peace and Security Partnership with China

Author:
Asebe Regassa Debelo
Publication Date:
07-2017
Content Type:
Working Paper
Institution:
Social Science Research Council
Abstract:
The China-African Union (AU) peace and security partnership can be positively harnessed in support of peacebuilding processes on the continent. This policy brief urges African policymakers to look beyond the familiar narratives of Sino- African relations as “resource diplomacy.” It notes some of the challenges facing China’s engagement with peace and security issues in Africa, and considers several options for addressing them. The brief also offers recommendations to the AU and African sub-regional organizations on how to optimize the opportunities presented by China’s engagement with Africa to consolidate sustainable peace on the continent.
Topic:
Security, International Cooperation, Peace, and African Union
Political Geography:
Africa, China, and Asia

794. How the Next U.S. President Can Contain China in Cyberspace

Author:
Adam Segal and Rob Knake
Publication Date:
01-2017
Content Type:
Journal Article
Journal:
Journal of International Affairs
Institution:
School of International and Public Affairs, Columbia University
Abstract:
When transition planning gets underway in earnest this fall, one of the hardest memos to write will be the outbrief from the current National Security Council (NSC) team on what to do about China’s ongoing campaign of cyber espionage targeting the intellectual property of U.S. companies. While long a focus of both the president’s cyber and China teams, there is little chance that in the coming months the issue is going to be brought to any type of resolution. Instead, the next president will inherit a partially implemented plan that has produced positive results in the short term, but its long-term sustainability remains uncertain. He or she would be wise to follow the playbook left by the Obama administration, with a redoubled focus on the investigation and prosecution of cybercrime. Critics of the administration on this topic generally fall into two camps. One, summed up nicely by the title of a book by Peter Kiernan, is the Becoming China’s Bitch camp.[1] In this view, the United States is so dependent on China that the Chinese can do what they want and there is little Americans can do to stop them. They hold U.S. debt, Americans can’t manufacture anything without them, Chinese students are leaps and bounds smarter than American students, and there are millions more of them studying science and math. The Chinese are strategic, looking around the corner of history and shaping it in their interests. They are playing three-dimensional chess and President Obama has been playing checkers. They put the blame on what they would characterize as Obama’s willingness to “lead from behind.” They then quote Sun Tzu, reference Unrestricted Warfare, and drop the mic.[2] The second view is the Coming Collapse of China camp.[3] In this view, despite an aggressive anti-corruption campaign and a more assertive foreign policy, China is weak, wounded, and dangerous. The Communist Party made a deal with the devil, offering economic growth in exchange for loyalty to the regime. Now, the leadership can’t keep up with their end of the bargain. Growth is slowing, and at a faster pace than the official figures acknowledge. Over investment continues and economic reforms have stalled. Air and water pollution are a drag on the economy and a threat to citizen health. Paranoid about any dissent, the party has tightened restrictions on the Internet and the media and arrested feminists, civil rights activists, and lawyers. One spark could start protests that lead to widespread instability and perhaps the end of Communist Party rule. What’s interesting is that these divergent views of China’s place in the world similarly predict there is little chance that China will cease stealing intellectual property. In the first view, China holds all the cards, and there is simply nothing the United States can do to impose costs and stop the hacking of companies. If China is desperate and dangerous, then it can’t stop stealing technology and business secrets because they are needed to fuel the economy.
Topic:
Science and Technology, Intellectual Property/Copyright, Cybersecurity, and Conflict
Political Geography:
United States, China, Asia, and North America

795. A “Modest Proposal” To End The North Korean Nuclear Crisis: Trump Should Threaten Beijing With A Nuclearized Taiwan

Author:
Steven Holloway
Publication Date:
10-2017
Content Type:
Policy Brief
Institution:
Centre for the Study of Security and Development, Dalhousie University
Abstract:
As the North Korean nuclear crisis escalates, the media is filled with an endless rehashing of the old inutile options. Typically articles in Globe and Mail and others will restate all the traditional options from multilateral diplomacy to tougher sanctions to unilateral US military action but then recount the long acknowledged problems with each option. This paper suggests a simple but revolutionary diplomatic move. It agrees with the many commentators who have said that China is the only actor with the leverage to effectively halt or even roll back Pyongyang’s nuclear and missile program (or even to attempt regime change.) But unlike some of these analyses, I will argue that so far China has not had sufficient motivation to fully exercise its leverage on North Korea. Therefore the key is to develop a threat plausible enough to provide that motivation. If the US is to face a nuclear deterrent from North Korea, then China should face a similar deterrent and threat from Taiwan.
Topic:
International Relations, Diplomacy, Nuclear Weapons, and Crisis Management
Political Geography:
China, Taiwan, Asia, South Korea, North Korea, and United States of America

796. China-Africa Trade Developments and Impacts: Case of China-Zambia Relations

Author:
Caesar Cheelo, Pamela Nakamba-Kabaso, and Zhun Che
Publication Date:
09-2017
Content Type:
Policy Brief
Institution:
Zambia Institute for Policy Analysis and Research (ZIPAR)
Abstract:
At a glance, China and Zambia – just like China and Africa – are strikingly different in many ways. They followed markedly different paths to development. They achieved significantly divergent trade and development results. However, they also have many striking commonalities, including a shared long history of developmental cooperation and relations. But, what are the lessons of China-Zambia relations for Zambia’s developmental goals and aspirations, including those in the Vision 2030? This study sought to undertake a critical comparative assessment of the trade (and other underpinning socioeconomic) developments in China, Africa and Zambia, with a view to understanding their impetus as well as their consequences, both positive and negative, for China- Africa and China -Zambia ties. It offers unique perspectives and understanding about China-Africa and China-Zambia relations. It takes a look at the history and present-day China- Africa and China-Zambia relations, considering the social and cultural ties that have defined cooperation as well as the political and diplomatic relations that have been forged over time. It unravels the trade and development implications of these relations for Zambia, Africa and China.
Topic:
International Relations, Development, Bilateral Relations, and Trade
Political Geography:
Africa, China, Asia, and Zambia

797. International Leadership as a Process: The case of China in Southeast Asia

Author:
Truong-Minh Vu
Publication Date:
12-2017
Content Type:
Journal Article
Journal:
Revista Brasileira de Política Internacional (RBPI)
Institution:
Brazilian Center for International Relations (CEBRI)
Abstract:
Leadership theory in IR still lacks a coherent approach, and it is analytically useful to use eclectic lenses by combining all factors related to power and the usage of power to gain leadership status. I define the term "international leadership" as a process in which a state mobilizes its resources to influence a group of other states (followership) in order to achieve a common goal. In the empirical investigation, I will focus on China's abilities to lead in Southeast Asia. Despite the fact that there are many advantages for China, the mechanism of transforming power resources into regional leadership is still questionable.
Topic:
Foreign Policy, Leadership, International Relations Theory, and Emerging Powers
Political Geography:
China, Brazil, and Latin America

798. US Foreign Policy Towards Central Asia

Author:
Lance Alred, Sean Michael Kelly, Madina Rubly, Yuliya Shokh, Mariam Tsitsishvili, and Richard Weitz
Publication Date:
10-2017
Content Type:
Journal Article
Journal:
Revista UNISCI/UNISCI Journal
Institution:
Unidad de investigación sobre seguridad y cooperación (UNISCI)
Abstract:
U.S. policy faces numerous challenges in Central Asia, such as the decreasing U.S. military and economic resources in the region; Russian and Chinese hostility to a long-term U.S. military presence in Eurasia; restrictions on religious and other freedoms due partly to counterterrorism concerns; limited U.S. involvement in the region compared to other external players (like Japan as well as Russia and China); an undeveloped U.S. policy regarding regional multinational institutions; and the indifference and ignorance of U.S. business toward regional commercial opportunities beyond the energy sector. However, advocates of “America First” in the Trump administration do not see these threats as sufficiently serious to garner U.S. military intervention beyond occasional training, equipping, and intelligence sharing. Terrorism, drug trafficking, economic isolation, and human rights restrictions in Central Asia do not present an immediate existential threat to the United States, sowing ambivalence over the future of U.S. foreign policy in the region.
Topic:
Terrorism, Cybersecurity, Trafficking, and Donald Trump
Political Geography:
Russia, China, Central Asia, and United States of America

799. Three milestones of Russia’s foreign policy in 2017

Author:
Pavel Koshkin
Publication Date:
12-2017
Content Type:
Commentary and Analysis
Institution:
Rethinking Russia
Abstract:
2017 brought both successes and disappointments to Russia on the international arena. Moscow succeeded in establishing dialogue with its rivals in the Middle East — Saudi Arabia and Turkey. It also participated in the Astana peace talks to come up with a compromise with Ankara and Tehran on Syria. Besides, Russia together with its Syrian allies defeated the Islamic State of Iraq and the Greater Syria (ISIS). Afterwards, Russian President Vladimir Putin announced about the partial withdrawal of the Russian troops from Syria. One of the biggest challenges became the strengthening of the American sanctions against Russia for its alleged interference in the 2016 U.S. presidential election. The Russia dossier probe conducted by Special Counsel Robert Mueller and Congress is also a very important event, because it could deepen the crisis in U.S.-Russia relations. Parliamentary and presidential elections in Europe also matter: They took place amidst the buzz about the Russian cyber threat and hackers, and this indicates that there is not trust toward Russia in European countries today.
Topic:
Foreign Policy, Sanctions, Elections, Islamic State, and Negotiation
Political Geography:
Russia, China, Eurasia, Middle East, Syria, and United States of America

800. Shift of Power from West to East and Rise of China

Author:
Mushtaq Ahmed Abbasi, Ghulam Qumber, and Ahmed Saeed Minhas
Publication Date:
07-2017
Content Type:
Journal Article
Journal:
Journal of Political Studies
Institution:
Department of Political Science, University of the Punjab
Abstract:
This research paper is aimed at evaluating prevailing global scenario and the dynamics of shift of power from the West to the East. Efforts have been made to analyze the economic, political, and security trends to understand important aspects of the power transition process. Currently, there is an enough literature available, which proves the existing consensus among many experts that China is playing a central role in the process of shift of power from the West to the East. Therefore, while explaining this transition process, it is pertinent to focus on the leading role of China and its possible implications. So, this study further highlights the rising power of China covering an overall picture of China, particularly its economic development process, the political and cultural aspects, and the military modernization. Efforts have been made to give an analytical view that how the rise in economic power is gradually transforming itself into political, diplomatic, and military strength of China. Besides; this research effort also focuses on how China is adjusting its foreign policy posture in the regional and global affairs, which culminates or aims at adjusting itself to globalization process.
Topic:
International Relations, Security, and Power Politics
Political Geography:
China and Asia