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101. China's Foreign Policies Today: Who Is in Charge of What

Author:
Axel Berkofsky and Giulia Sciorati
Publication Date:
05-2022
Content Type:
Special Report
Institution:
Italian Institute for International Political Studies (ISPI)
Abstract:
While the war in Ukraine is a game changer for international and in particular European security, China appears to be marching on. And, in some ways, it is true. Since Xi Jinping took power in 2012, China’s foreign policy has significantly shifted from a defensive to an assertive approach. For decades, Beijing worked to integrate into the liberal international order, presenting itself as a peacefully rising power. By contrast, under Xi’s leadership, the country is attempting to create a global system that is more favourable to its own interests. The Report examines China’s current approach to foreign policy, and the drivers of the country’s shift away from tradition. What are the main characteristics of China’s foreign policy in the wake of the Ukraine war? How are decisions being taken, and to what extent do interest groups continue to have a say in decision-making after the recent power centralisation?
Topic:
Security, Foreign Policy, Defense Policy, and Geopolitics
Political Geography:
Russia, China, Ukraine, and Asia

102. Taking the low road: China's influence in Australian states and territories

Author:
John Fitzgerald
Publication Date:
02-2022
Content Type:
Special Report
Institution:
Australian Strategic Policy Institute (ASPI)
Abstract:
In November 2020 a Chinese official passed a list of 14 grievances to Australian journalists, highlighting what Beijing regarded as missteps in the Australian government’s relations with China. A striking feature of the list is that many concern Australian Government attempts to limit Chinese engagement with the states and territories, or state-based institutions such as universities. Why did state and territory relations with China concern Canberra? This study explores the changing nature of China’s engagement with Australian states and territories, local governments, city councils, universities, research organisations and non-government organisations, all nested in Australian civil society. What emerges is the astonishing breadth and depth of China’s engagement, much of it the welcome outcome of Australia’s economic and people-to-people engagement with China over many decades. But it’s equally apparent that China has made covert attempts to influence some politicians and overt attempts to engage states, territories and key institutions in ways that challenge federal government prerogatives and have brought the two levels of government into sharp public dispute. Here we provide a detailed analysis of how China has worked to build its political influence and build dependence through trade and economic ties with each Australian state and territory. In addition, unique cross-cutting chapters review the impact of Chinese engagement with Australian universities and show how Beijing’s ‘United front’ organisation is designed to build influence. We assess the impact on Australian businesses and the constitutional challenges presented by Chinese engagement with the states and territories. The study methods and analytical approaches adopted in this book will be a model for similar research in many parts of the world. Understanding the nature of Chinese engagement with subnational jurisdictions is an important way for national governments to shape their security policies and to resist covert and, indeed, unwanted overt interference. This book provides original insights into the scale of the challenge and distils practical policy recommendations for governments at all levels to consider and adopt.
Topic:
International Relations, Defense Policy, National Security, Geopolitics, and Soft Power
Political Geography:
China, Asia, and Australia

103. 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

104. China Makes a Move in the Middle East: How Far Will Sino-Arab Strategic Rapprochement Go?

Author:
Sine Ozkarasahin
Publication Date:
12-2022
Content Type:
Journal Article
Journal:
China Brief
Institution:
The Jamestown Foundation
Abstract:
With a well-planned strategy and a careful exploitation of the gaps opened by U.S. foreign policy shifts, China has successfully increased its role as a strategic actor in the Middle East, including by gaining a foothold in the regional arms market. Chinese President Xi Jinping’s early December visit to Saudi Arabia, upon King Salman’s invitation, exemplifies the recent improvement in Sino-Arab ties (Xinhua, December 8). While in Saudi Arabia, Xi initiated two new multilateral forums intended to strengthen engagement between China and the Arab world: the China-Arab States Summit and the China-Gulf Cooperation Council summit (Xinhua, December 11). In addition to deepening political rapprochement between Beijing and several regional countries, China is simultaneously establishing crucial military-strategic ties with key Middle Eastern states. Chinese-made drones are already present in the arsenals of multiple Arab countries and technological cooperation between Beijing and its regional counterparts is rapidly increasing. The most striking example in this regard was the United Arab Emirates’ (UAE) revocation of the F-35 deal that constrained its cooperation with the Chinese tech and telecommunications giant Huawei over 5G technology (Al Arabiya News, December 14, 2021). As many Arab countries’ doubts about Washington’s commitment to regional security grow, more and more countries are increasingly open to entreaties from China.
Topic:
International Relations, Foreign Policy, Geopolitics, and Rapprochement
Political Geography:
China, Middle East, Asia, Saudi Arabia, and United States of America

105. Finland and the Demise of China’s Polar Silk Road

Author:
Matti Puranen and Sanna Kopra
Publication Date:
12-2022
Content Type:
Journal Article
Journal:
China Brief
Institution:
The Jamestown Foundation
Abstract:
Only a short time ago, considerable enthusiasm existed in Finland regarding Beijing’s efforts to forge an “Arctic corridor” of railroads and undersea tunnels, satellite ground stations, an airport for scientific expeditions, and massive biorefineries. In this, Finland was not alone but represented only a small branch of China’s comprehensive thrust to permanently establish a presence above the Arctic Circle. Yet, with the recently emerging geopolitical turbulence, China’s Arctic expansion is facing a standstill, even in Finland, which long seemed like its most viable partner in the region. By applying for NATO membership along with Sweden, Finland is turning westward, practically closing the gates on China’s Arctic expansion beyond Russia. Its story serves as an interesting microcosm on the rise and demise of China’s Arctic policy.
Topic:
Security, Foreign Policy, Geopolitics, and Strategic Competition
Political Geography:
China, Finland, and Arctic

106. Beijing Makes a Big Long-term Bet on Nuclear Power

Author:
John Van Oudenaren
Publication Date:
08-2022
Content Type:
Journal Article
Journal:
China Brief
Institution:
The Jamestown Foundation
Abstract:
Last fall, China suffered extensive power outages due to a combination of surging electricity demand and tight supply. A confluence of factors contributed to the energy supply shortage, but nearly all traced back to China’s struggle to manage its overdependence on coal for power generation: rising global coal prices; shuttering of old power plants as part of a push to enhance energy efficiency; emission-reduction efforts; an “unofficial” embargo on Australian coal imports due to geopolitical strife between Beijing and Canberra; and disparities in government price controls (power plants must purchase coal at market rates, but consumer prices are set in a narrow band) that incentivized plants to cease or slow operations rather than produce electricity at a financial loss (Caixin, October 12, 2021; Zaobao, July 14). In 2022, China has avoided a replay of last year’s energy crunch despite the supply shocks in the energy markets induced by the Ukraine conflict by increasing domestic coal production, exploiting the opportunity to import Russian oil and coal at discounted rates and continuing to steadily increase its renewable energy capacity. Boosting domestic coal production has been particularly essential to meet demand. This month, the National Energy Administration (NEA) reported that during the second quarter, China’s raw coal output rose 10 percent year-on-year, which the NEA highlighted as particularly noteworthy given it came on the basis of 16 percent growth in coal output in the same quarter last year (NEA, August 2). Another mitigating factor for China on the energy front has been heavy spring rainfall in many areas of the country that has increased hydropower output over 20 percent in the first half of this year—a substantial boost as hydroelectricity already accounts for about 15 percent of China’s overall energy mix (NEA, August 2; Global Times, May 5).
Topic:
Energy Policy, Bilateral Relations, Nuclear Power, and Geopolitics
Political Geography:
China, Asia, and United States of America

107. The Enemy of My Friend Remains My Friend: China’s Ukraine Dilemma

Author:
Horia Ciurtin
Publication Date:
06-2022
Content Type:
Journal Article
Journal:
China Brief
Institution:
The Jamestown Foundation
Abstract:
State media in China remains equivocal about the level of destruction and mayhem caused by the Russian invasion of Ukraine. However, the Chinese government has stated it will meet the challenge of overcoming strained global supplies resulting from the conflict, and has emphasized that the nation’s food security will be ensured (People’s Daily, June 2; China News Service, May 27). Nevertheless, given Ukraine’s position as a global agricultural supplier, China has not fully appreciated the scope of the problem. At a broader level, the war is a litmus test for China’s ability to navigate geopolitical troubles along the Belt and Road Initiative (BRI). Thus far, the conflict has underscored the difficulties facing China in moving beyond convenient cordialities to play the role of a benign ‘balancer’ in global politics. In its relationships with Moscow and Kyiv, Beijing is entangled financially with both sides. Furthermore, China is now exposed to secondary sanctions due to its economic entanglement with Russia. At the same time, its investments, construction projects and supply chains that traverse Ukraine risk destruction as the war drags on.
Topic:
Geopolitics, Belt and Road Initiative (BRI), Investment, Supply Chains, and Russia-Ukraine War
Political Geography:
China, Ukraine, Eastern Europe, and Asia

108. Impact of CPEC on Pakistan’s Economic Outlook

Author:
Sajid Mehmood Shahzad
Publication Date:
01-2022
Content Type:
Journal Article
Journal:
South Asian Studies
Institution:
Department of Political Science, University of the Punjab
Abstract:
Pakistan‟s vital geopolitical position is an advantage for this South Asian nation. It is located at the apex of the Arabian Peninsula. Thus, the People‟s Republic of China has setup the Belt and Road Initiative (BRI) with a futuristic strategy to gain long-term benefits. This planning is not random at all. It is a cohesive plan to revitalize the financial system of its long-standing collaborator and ally through the China-Pakistan Economic Corridor (CPEC) which is currently the talk of the town. The present study analyzes how Pakistan‟s conventional economic outlook can be transformed through the CPEC. While harnessing the power of Pakistan as a „trade route‟, the CPEC has the potential to reshape transport & security options, increase the cost-effectiveness of goods, and widen the scope for new and existing businesses. it will develop a networking coherence among agricultural & industrial hubs and connect special economic zones (SEZs) with the rest of the country and beyond. This paper evaluates the CPEC‟s fiscal footprint on Pakistan‟s economy and examines the correlation between overcoming economic shortcomings and increasing future gains through a cause-and-effect relationship.
Topic:
Geopolitics, Economy, and Belt and Road Initiative (BRI)
Political Geography:
Pakistan, China, South Asia, and Asia

109. The Geopolitical Consequences of COVID-19: Assessing Hawkish Mass Opinion in China

Author:
Joshua Byun, D. G. Kim, and Sichen Li
Publication Date:
01-2022
Content Type:
Journal Article
Journal:
Political Science Quarterly
Institution:
Academy of Political Science
Abstract:
JOSHUA BYUN, D.G. KIM, and SICHEN LI examine the impact of the COVID-19 pandemic on the Chinese public’s foreign policy attitudes. Drawing on original surveys fielded in China during the first six months of the global pandemic, they find that ordinary Chinese citizens are optimistic about China’s future global position, and that this optimism corresponds with the widespread perception that the COVID-19 pandemic is accelerating China’s rise relative to the United States.
Topic:
Foreign Policy, Public Opinion, Geopolitics, Survey, and COVID-19
Political Geography:
China, Asia, and United States of America

110. The geopolitics of digital financial technologies: A chance for Europe?

Author:
Brigitte Dekker, Arief Hühn, Pim Korsten, and Maaike Okano-Heijmans
Publication Date:
01-2022
Content Type:
Special Report
Institution:
Clingendael Netherlands Institute of International Relations
Abstract:
Geopolitical tensions are permeating the digital domain. During the 1990s, the emergence of the internet still involved optimism and high hopes for digital technology as a force for openness, connectedness and freedom for all. Yet contrary to these promises, a trend of centralization, is prevalent in the digital economy. This trend of centralization, with the subsequent problems of gatekeeping, ecosystem lock-in, disproportional rent-seeking and monopolists that set market rules, is now also evident in the financial industry. Whereas smaller financial technology (fintech) companies, including many European firms, revolutionized the financial sector in the 2000s – disrupting traditional banks and their vested interests – we now witness a concentration of power and data in this sector, either in incumbent firms or within Big Tech companies. In response, governments in China, the European Union (EU) and the United States (US) are devising regulations, while at the same time technology innovators are building a radically new infrastructure to underpin our financial sector: Decentralized Finance (DeFi). The geopolitical implications of this disruptive transformation of the financial sector – through both fintech and DeFi – require forward-looking government responses that protect and promote European interests in the long term. This Clingendael Report first reflects on these trends of centralization in digital finance and decentralization in ‘traditional finance’. The paper examines the relationship between geopolitics and finance and looks at the position of the EU and its member states. The analysis considers the medium to longer-term implications in the following three domains: economic competitiveness and innovation; financial–economic and social stability; and inclusivity and equality. Data governance, data protection and data portability between financial services are key concepts in each of these areas. Building on these insights, the report argues for a push towards greater awareness among European policymakers on the potentials of DeFi to counter Big Tech’s rising influence in the European financial system with a decentralized, human-centred and value-based system. At the same time, the regulatory and security risks of DeFi – and the trend of decentralization in general – must be addressed. The report also highlights the need to help people to develop digital skills and become responsible and resilient digital citizens, and calls for enhanced dialogues with officials and technology company executives in like-minded countries on current developments. New approaches, such as multi-stakeholder consultations and increased rapprochement with the open-source and crypto-communities, are needed to facilitate knowledge exchange and best practices that will improve (regulatory) responses.
Topic:
Science and Technology, European Union, Geopolitics, Internet, and Digital Finance
Political Geography:
China, Europe, and United States of America