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131. Economic coercion in Indo-Pacific island states: Building resilience

Author:
Richard Herr and David Brewster
Publication Date:
09-2021
Content Type:
Special Report
Institution:
Australian Strategic Policy Institute (ASPI)
Abstract:
Indo-Pacific island states face diverse challenges as they grapple with their own unique vulnerabilities to the geopolitical consequences of growing strategic competition in the region. This report explores the vulnerability of island states to economic coercion and the risks they face in navigating the growing economic power of the People’s Republic of China (PRC). In this report, the authors examine four perceived examples of economic coercion within the region that challenge the Quad’s vision of a free and open Indo-Pacific. China’s increasing interest in the island states of the Indo-Pacific has led to concern that the imbalance in those relationships is so large that both domestic and broader regional stability are at risk. This report offers a number of policy recommendations to protect Indo-Pacific island states from economic coercion, including: Island states must be better invested in the rules-based international economic order; Establishing codes of conduct to limit economic duress, limit undue economic influence and strengthen the rules-based international system; Strengthening government institutions so they can resist economic coercion; International partners should work with Indo-Pacific island states to help strengthen the ability of local businesses to take collective action against economic coercion.
Topic:
Foreign Policy, Defense Policy, National Security, Economy, and Resilience
Political Geography:
China, Australia, and Asia-Pacific

132. More Harm than Good: Why Chinese Sanctions over THAAD have Backfired

Author:
Daniel Mitchum
Publication Date:
12-2021
Content Type:
Special Report
Institution:
Pacific Forum
Abstract:
In 2017 South Korean Moon Jae-in, in response to North Korean ballistics testing, adopted a resolution to implement the THAAD missile interceptor system. Beijing had long been opposed to the system and as a result initiated a series of unofficial, punitive economic sanctions against South Korea which covered a range of industries. However, Beijing’s actions did little to alter Seoul’s decisions and have instead damaged China-South Korea relations. A similar paradigm has since appeared within China-Australia relations. How nations respond and adapt to such tactics in the future is a question of critical importance.
Topic:
International Relations, Sanctions, Weapons, and Economy
Political Geography:
China, Asia, South Korea, and North Korea

133. The Opportunity is There: South Koreans’ Views of China and the Future of the US-ROK Alliance

Author:
John Lee
Publication Date:
04-2021
Content Type:
Special Report
Institution:
Pacific Forum
Abstract:
Officially, relations between the Republic of Korea and the People’s Republic of China remain cordial. Because of China’s economic heft and South Korea’s reliance on unmolested trade with the former for its continued economic development, South Korea takes great pains to be as neutral as possible between the United States and China despite its formal alliance with the US. As such, many pejoratively refer to South Korea as “the weak link” in America’s Northeast Asia alliance system. However, on a civil society level, an overwhelming majority of the South Korean public has a negative view of China—a view that has steadily gotten worse over time. Being a democracy that reflects voters’ popular will, growing anti-Chinese sentiment among voters means South Korea’s current policy of placating China will not be sustainable indefinitely. Meanwhile, the Trump administration largely neglected the alliance between South Korea and the United States. That neglect notwithstanding, an overwhelming majority of South Koreans either strongly or somewhat support the alliance with the United States. Conditions are perfect for the Biden administration to seek to repair and strengthen relations with South Korea to empower the alliance to serve as a credible bulwark against Chinese expansionism—this paper offers solutions on how to do so.
Topic:
International Relations, Foreign Policy, Economy, Alliance, and Trade
Political Geography:
China, Asia, and South Korea

134. Washington and the Next Arab Spring

Author:
Sarah Feuer and David Schenker
Publication Date:
10-2021
Content Type:
Special Report
Institution:
The Washington Institute for Near East Policy
Abstract:
Should protests grow more destabilizing, the United States will need to balance its values and interests regarding bilateral ties, the popular movement in question, broader regional dynamics, and competition with Russia or China. Against the backdrop of simmering protests, endemic economic challenges, the continuing struggle to contain the Covid-19 pandemic, and fallout from the U.S. Afghanistan withdrawal, The Washington Institute has launched a series of policy papers to help guide the Biden administration’s approach on democracy, reform, human rights, and political change across the Middle East and North Africa. The series addresses a range of questions: How do changes in the region over the last decade affect the new administration’s approach to these issues? How should the administration best prepare for the “new normal” of protests in the region? What are the policy tools at America’s disposal, and how might they be improved? How can Washington turn much-needed attention to new areas of focus, such as corruption and public-sector reform? What does public opinion research tell us about what the region’s publics want in their countries—and from the United States? And where might enhanced U.S.-EU coordination play a constructive role? The proposed answers will assist policymakers in advancing opportunities for reform, preserving U.S. interests, and navigating Middle East realities in the context of America’s global priorities. In the second essay of the series, Sarah Feuer, David Schenker, and their coauthors discuss the resurgence of protest activity across the region, the result of deteriorating economic circumstances and abysmal governance, worsened by the Covid-19 pandemic. Should protests become more destabilizing, the authors explain, the United States—before taking any action—will need to carefully balance its values and interests with respect to bilateral ties, the protest movement in question, broader regional dynamics, and competition with Russia or China.
Topic:
Foreign Policy, Economy, Arab Spring, Protests, and Strategic Competition
Political Geography:
Russia, China, Middle East, and United States of America

135. China’s Foreign Policy and Strategic Stability towards South Asia: An Analysis

Author:
Muhammad Muzaffar and Imran Khan
Publication Date:
07-2021
Content Type:
Journal Article
Journal:
South Asian Studies
Institution:
Department of Political Science, University of the Punjab
Abstract:
This study analyzes the China‟s foreign policy towards South Asia with the phenomena of strategic stability. South Asia has emerged as progressively vibrant interest to China‟s foreign policy. Chinese administration has showed consent to continue its harmonized policies towards regional states like India and Pakistan. Following the realistic approach, it is quite possible that China may not prove helpful in resolving the chronic regional territorial disputes however; it will be cooperative in bringing peace and stability in this region along with economic boom. The outcome of discussion reflects that the imperatives of regional security added new dimensions such as China‟s peaceful rise under Xi Jinping and China‟s role of strategic balance between India and Pakistan. Due to diverse Chinese interests in this region, it is expected that Beijing will pay more attention towards South Asian affairs in future and will play a role of more responsible stakeholder.
Topic:
Security, Foreign Policy, Nuclear Weapons, Economy, and Strategic Stability
Political Geography:
China, South Asia, and Asia

136. China-Pakistan Economic Corridor: Integrating China with the Persian Gulf and East Africa

Author:
Adam Saud and Shabir Amhad Khan
Publication Date:
07-2021
Content Type:
Journal Article
Journal:
South Asian Studies
Institution:
Department of Political Science, University of the Punjab
Abstract:
China by launching the multi-trillion dollar Belt and Road Initiative (BRI) has possibly initiated the transformation of the prevailing global political system. The success of the BRI heavily depends upon the neighboring regions of China, as they will provide China with routes to integrate the international markets. In this regard, the China-Pakistan Economic Corridor (CPEC) is the key route; thus, also repeatedly termed as the flagship project of the BRI. The importance of CPEC is crucial for China as Beijing not only needs markets but imports of hydrocarbons from Persian Gulf and Africa. This paper aims to analyze the importance of the CPEC and Gwadar Port vis-à-vis securing China‟s national interests; securing multiple trade routes and attaining the much desired status of Great Power. Furthermore, the paper will shed light on the possible challenges China may face in this regard. The central question of this research is how the CPEC would help China integrate with the Persian Gulf and East-Africa? The nature of this research is critical and analytical; based on primary and secondary sources. The research is supported by theories of Neofunctionalism and Complex Interdependence.
Topic:
Foreign Policy, Infrastructure, Economy, Regional Integration, Belt and Road Initiative (BRI), and Strategic Interests
Political Geography:
Pakistan, Africa, China, South Asia, Asia, and Persian Gulf

137. Lithuania, China and EU lawfare to counter economic coercion

Author:
Steven Blockmans
Publication Date:
12-2021
Content Type:
Policy Brief
Institution:
Centre for European Policy Studies (CEPS)
Abstract:
Without any formal notification, China recently declined customs clearances for shipments from Lithuanian firms in the pharmaceutical, electronics, and food sectors, and warned multinationals of secondary sanctions if they did not sever their ties with Lithuania. These covert actions were taken in response to Lithuania’s invitation to Taiwan, which the People’s Republic of China (PRC) claims as its own territory, to open a ‘representative office’ in Vilnius. No other country has ever found itself at the receiving end of such intense and politically motivated Chinese economic pressure. These actions on the part of the PRC are politically explosive because it raises serious questions about the international conduct of the Chinese Communist Party (CCP). If it can simply wipe a country off its trade book, a state belonging to the EU’s customs territory no less, then what does it mean to be a member of the WTO, or a signatory to any other number of international agreements? And, given the lamentable state the WTO is in: could the European Commission’s newly proposed anti-coercion instrument bring any solace to Lithuania and the EU?
Topic:
Law, European Union, Economy, Trade, and Coercion
Political Geography:
China, Europe, Asia, and Lithuania

138. What Does China’s Update of its Anti-Monopoly Law and New Regulations for the “Platform Economy” Mean for Business?

Author:
David Hoffman
Publication Date:
05-2021
Content Type:
Working Paper
Institution:
The Conference Board
Abstract:
The recently enacted revisions to China’s Anti-Monopoly Law, and its extensive provisions for regulating China’s “platform economy” – i.e., fintech and ecommerce platforms – are consequential for foreign investors in China, bearing both upside and downside risks. On the one hand, they reinforce the trend of increasing state intervention in China’s economy and commercial markets and raise concerns about a more confined and controlled play-space for the private sector in China, a cohort which includes foreign multinational companies and financial investors.
Topic:
Governance, Law, Economy, Business, Investment, Monopoly, Private Sector, and Commerce
Political Geography:
China and Asia

139. Headquarters-China "Co" Relations - Navigating the Very Contemporary Yins and Yangs of MNC Business in China

Author:
David Hoffman
Publication Date:
05-2021
Content Type:
Working Paper
Institution:
The Conference Board
Abstract:
Many China organizations of western multinational companies (MNCs) report increasing friction and misalignment with headquarters (HQ) across a range of China issues. We observe three primary sources of tension and misalignment: a differing appraisal of risks, including, importantly, confidence in abilities to protect IP; a differing calculus on the evaluation of opportunities; and concerns, at HQ and Board level, about the control implications of increasingly divergent, if not more autonomous, China operations.
Topic:
Economy, Business, Multinational Corporations, and Private Sector
Political Geography:
China, Asia, and Global Focus

140. India’s Networking Response to the Chinese Threat

Author:
Rajesh Basrur
Publication Date:
06-2021
Content Type:
Special Report
Institution:
East-West Center
Abstract:
India has experienced rising tensions with China in recent years, as demonstrated by two border crises in 2017 and 2020-21. The second event saw the death of some 20 Indian troops, and at least 4 Chinese soldiers, in hand-to-hand combat – the first fatalities in nearly half a century of periodic border face-offs. New Delhi’s policy response has spanned both internal and external balancing. The former has involved augmenting India’s capacity to engage in limited combat of the type that nuclear-armed states have occasionally fought, as did the Soviet Union and China in 1969 and India and Pakistan in 1999. The Indian military has bolstered its border by deploying combat troops, cruise missiles, and advanced combat aircraft. However, China has done much the same, putting pressure on India to upscale its military capabilities. Simultaneously, India has tried to reduce its dependence on the Chinese economy, a more complicated task. Despite a 10 percent decline in bilateral trade owing to the Covid-19 pandemic and border tensions, China was India’s largest trading partner ($77.7 billion) in 2020. The Narendra Modi government sharply cut Chinese investment when the 2020 border confrontation in Ladakh broke out, expelling major Chinese companies like TikTok, WeChat, and UC Browser. Despite these measures, India’s ability to shut China out of its economy is limited. The Indian market depends heavily on Chinese electronic components (70 percent in value terms), pharmaceutical ingredients (70 percent), and consumer durables (45 percent).
Topic:
Conflict Prevention, Bilateral Relations, Economy, and Trade
Political Geography:
China, South Asia, India, and Asia