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1911. China’s Approach to the Belt and Road Initiative and Europe’s Response

Author:
Giulia Di Donato
Publication Date:
05-2020
Content Type:
Commentary and Analysis
Institution:
Italian Institute for International Political Studies (ISPI)
Abstract:
During the last four decades, China experienced impressive economic growth, becoming one of the leading powers of the global economy. After a century of humiliation imposed by Western and Japanese colonial powers, today the country is demonstrating a strong desire to achieve its national rejuvenation (guojia fuxing). Indeed, under the iconic leadership of President Xi Jinping, China is adopting an increasingly assertive international behavior, balancing the need to protect its sovereignty and strategic interests related to economic and security issues, and the ambition to restore its role of a great power[1]. In this context, the Belt and Road Initiative (BRI) - a massive infrastructure project to improve connectivity between the East and the West, increase regional cooperation and facilitate trade and investments - has been described as China’s grand strategy championing its global governance ambitions[2]. Indeed, BRI-participating economies represent more than one-third of global GDP, and over half of the world’s population (OECD 2017).
Topic:
Regional Cooperation, Economy, Grand Strategy, and Belt and Road Initiative (BRI)
Political Geography:
China, Europe, and Asia

1912. Will Oil Become the Achilles Heel of China’s BRI?

Author:
Naser al-Tamimi
Publication Date:
01-2020
Content Type:
Commentary and Analysis
Institution:
Italian Institute for International Political Studies (ISPI)
Abstract:
With more than 136 countries (end-July 2019) reported to have signed up to the Belt and Road Initiative (BRI hereafter) since it was announced by President Xi Jinping in 2013, estimates for China's potential BRI investments vary significantly, from around US $1 trillion to as much as US $8 trillion. China’s spectacular economic rise over the last three decades has been accompanied by a sharp increase in its energy demand. As a result, China is the world’s largest energy consumer. As its economy continues to grow, even at lower rates than before, its dependence on oil and gas imports will increase over the next two decades.
Topic:
Oil, Economy, Soft Power, and Belt and Road Initiative (BRI)
Political Geography:
China and Asia

1913. China’s Response to Climate Change: A Study in Contrasts and a Policy at a Crossroads

Author:
David B. Sandalow
Publication Date:
06-2020
Content Type:
Working Paper
Institution:
Asia Society Policy Institute
Abstract:
China is the world’s leading emitter of heat-trapping gases, by far. In 2019, Chinese emissions were greater than emissions from the United States, the European Union, and Japan combined. There is no solution to climate change without China. China’s response to climate change is a study in contrasts. China leads the world in solar power, wind power, and electric vehicle deployment, but also in coal consumption. The Chinese government has adopted some of the world’s most ambitious energy efficiency and forest conservation policies, but is financing a significant expansion of coal-fired power plant capacity at home and abroad. China’s leaders are strongly committed to the Paris Agreement, but appear to attach less priority to climate change than in years past. This Asia Society Policy Institute issue paper, China’s Response to Climate Change: A Study in Contrasts and a Policy at a Crossroads, written by former senior policymaker and current Columbia University fellow David Sandalow, explores these contrasts. It does so at an important time in Chinese climate change policy. During the next 18 months, the Chinese government will spend heavily on economic stimulus measures, release its 14th Five-Year Plan (for 2021–2025), and develop short- and long-term climate action plans (known as its “updated nationally-determined contributions” and “mid-century strategy” in the terminology of the global U.N. climate process). Decisions by the Chinese government will reverberate globally, including in the United States. A potential Biden administration’s ambition in addressing climate change would be reinforced by ambition in China. This issue paper also provides an up-to-date snapshot of China’s climate policies, drawing on data from 2019 and the beginning of 2020 (during the height of the COVID-19 economic lockdown), as well as recent remarks by Chinese leaders. It starts by examining Chinese emissions of heat-trapping gases. It then discusses China’s principal climate policies, explaining the main tools the Chinese government uses to address climate change and related topics. The issue paper concludes with a discussion of processes that will shape Chinese climate change policy in the years ahead. This paper is the second in a series of policy products that the Asia Society Policy Institute will publish as part of a project exploring the possibilities around U.S.-China climate cooperation.
Topic:
Climate Change, Energy Policy, Governance, Renewable Energy, and Carbon Emissions
Political Geography:
China, Asia, and United States of America

1914. 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

1915. Climate Diplomacy under a New U.S. Administration

Author:
Thom Woodroofe and Brendan Guy
Publication Date:
04-2020
Content Type:
Working Paper
Institution:
Asia Society Policy Institute
Abstract:
The United States is the world’s second-largest greenhouse gas emitter. For that reason, the outcome of the U.S. presidential election in November will have an undeniable impact on the future of the global climate change regime. This is especially the case now that the United Nations’ COP26 Climate Change Conference has been postponed to 2021 as a result of the COVID-19 pandemic. Indeed, as Asia and the rest of the world consider whether and how to step up their levels of ambition as part of the five-year ratchet mechanism of the Paris Agreement, the United States has the potential to be either a catalytic force for that effort going into 2021 or an even stronger spoiler of the Agreement’s ongoing effectiveness at a crucial juncture. No country will be watching more closely than China. The 2014 U.S.-China Joint Announcement on Climate Change between President Barack Obama and President Xi Jinping proved to be the watershed moment in the lead-up to the Paris Agreement, as the two countries signaled for the first time that they would act in a coordinated manner to combat climate change. Whether the United States and China can recapture that spirit of shared ambition in the future will have ripple effects on the positions of other major emitters as well — especially India, Japan, and Australia, which may not enhance their own levels of ambition without a stronger indication of further action by the United States and China. While President Donald Trump has begun the process of withdrawing the United States from the Paris Agreement and rolled back domestic and international measures to combat climate change, it is clear that if a Democrat is elected president in 2020, they would make combating climate change a defining priority of their administration. Therefore, a clearer understanding of the specific approach that would underpin the climate diplomacy of a potential new Democratic president can provide greater reassurance to the international community as countries consider their own levels of ambition in the lead-up to COP26 and beyond. This paper, therefore, assesses the international climate policies of both Vice President Joe Biden and Senator Bernie Sanders across six areas, including their proposals to reduce greenhouse gas emissions; engage with other major emitters, including China; use trade policy as a lever for climate action; increase climate finance and remove fossil fuel subsidies; take action across other sectors, and embed climate action as a core national security priority. The authors also lay out three cross-cutting considerations for a potential new Democratic administration to maximize their efforts in the global fight against climate change, including how they can best structure their administration; engage other major emitters most strategically; and use all tools in the toolkit to reduce emissions. This includes a number of specific recommendations for how the candidates’ existing policies can best be elaborated, including with regard to China; plans to host a world leader summit on climate early in a new administration; and the tabling of a new 2030 emissions reduction target. The likely constraints and choices that will confront a new U.S. administration as they determine their approach to climate action are also highlighted in the paper. This paper is the first in a series of policy products that the Asia Society Policy Institute will publish as part of a new project exploring the possibilities around U.S.-China climate cooperation.
Topic:
Climate Change, Diplomacy, Government, Treaties and Agreements, Donald Trump, and Carbon Emissions
Political Geography:
China, Asia, North America, and United States of America

1916. What the World Health Organization must do to earn back US support

Author:
Danielle Pletka and Brett D. Schaefer
Publication Date:
08-2020
Content Type:
Special Report
Institution:
American Enterprise Institute for Public Policy Research
Abstract:
In a pandemic, a global health organization that is overly deferential to one nation and incapable of being an honest broker costs the very lives it exists to save. While China deserves primary blame for the devastation of COVID-19, the WHO also played a key role by failing to alert the world to Beijing’s lack of transparency. The WHO’s failures cannot be allowed to recur. Without change, it will fail again. It must implement reforms if it wants to restore confidence and earn US support.
Topic:
International Cooperation, World Health Organization, Coronavirus, and COVID-19
Political Geography:
China, North America, Global Focus, and United States of America

1917. Gulf financial aid and direct investment: Tracking the implications of state capitalism, aid, and investment flows

Author:
Karen E. Young
Publication Date:
08-2020
Content Type:
Special Report
Institution:
American Enterprise Institute for Public Policy Research
Abstract:
Much energy has focused on China’s Belt and Road Initiative and the debt-trap diplomacy it represents. But there is another set of players on the scene whose growth and influence in this sphere have been largely ignored. Gulf Arab states, particularly Saudi Arabia and the United Arab Emirates, have increasingly embraced an aggressive growth, investment, and development model for the broader Middle East. This report and the accompanying Gulf Financial Aid and Direct Investment Tracker are an effort to understand the breadth and scope of Gulf aid and financial intervention into a representative set of cases in the Middle East, the Horn of Africa, and West Asia. The objective is to demonstrate the competitive landscape for foreign investment in the receiving case countries and indicate the growing strength of Gulf capital investment, as it measures against a perception of Chinese capacity in the wider Middle East and emerging markets broadly. Most important, the comparative data here also demonstrate how private capital flows from the United States, United Kingdom, and European Union compete against flows of capital from state capitalism sources such as China and the Gulf.
Topic:
Foreign Direct Investment, Belt and Road Initiative (BRI), Investment, Strategic Competition, and State Capitalism
Political Geography:
China, Middle East, and Gulf Nations

1918. Partial decoupling from China: A brief guide

Author:
Derek Scissors
Publication Date:
07-2020
Content Type:
Special Report
Institution:
American Enterprise Institute for Public Policy Research
Abstract:
Partial decoupling from China is overdue. The People’s Republic of China (PRC) suppresses foreign competition and infringes intellectual property. It is an ugly dictatorship at home and increasingly aggressive overseas. Decoupling involves a range of tools and economic activities. Policymakers should quickly move to document and respond to Chinese subsidies, implement already legislated export control reform, monitor and possibly regulate outbound investment, and provide legal authority to move or keep supply chains out of the PRC. Decoupling has costs—higher prices, lower returns on investment, and lost sales. But they are dwarfed by the costs of continued Chinese economic predation and the empowerment of the Communist Party.
Topic:
Foreign Policy, Defense Policy, and Bilateral Relations
Political Geography:
China, Asia, North America, and United States of America

1919. China’s global investment vanishes under COVID-19

Author:
Derek Scissors
Publication Date:
07-2020
Content Type:
Special Report
Institution:
American Enterprise Institute for Public Policy Research
Abstract:
As expected given COVID-19, China’s construction and, especially, investment around the world plunged in the first half of 2020. The decline may be exaggerated by Chinese firms not wanting to report global activity, but Beijing’s happy numbers are not credible. From what little can be discerned, the Belt and Road Initiative is becoming more important, primarily because rich countries are more hostile to Chinese entities. American policy needs to shift. Incoming Chinese investment is now extremely small, but technology is still being lost due to lack of implementation of export controls. Growing American portfolio investment in China is unmonitored and may support technology thieves, human rights abusers, and other bad actors.
Topic:
Foreign Policy, Investment, and COVID-19
Political Geography:
China, Asia, North America, and United States of America

1920. China’s global investment in 2019: Going Out goes small

Author:
Derek Scissors
Publication Date:
01-2020
Content Type:
Special Report
Institution:
American Enterprise Institute for Public Policy Research
Abstract:
Chinese investment and construction around the world contracted in 2019, regardless of Beijing’s claims to the contrary. However, the decline is concentrated in large, headline-winning deals, and Chinese firms remain active on a smaller scale. A contraction in acquisitions in rich economies has boosted the relative importance of greenfield spending. The number of countries in the Belt and Road continues to expand, and power plant and transport construction continues to be preeminent. American policymakers were initially spurred to act by intense Chinese investment in 2016. This has dropped sharply, but there are challenges related to investment review that are more important, starting with strengthening export controls.
Topic:
Foreign Policy, Economy, Belt and Road Initiative (BRI), and Investment
Political Geography:
China and Asia