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21. Chinese Investors in Ethiopia: The Perfect Match?

Author:
Françoise Nicolas
Publication Date:
03-2017
Content Type:
Policy Brief
Institution:
Institut français des relations internationales (IFRI)
Abstract:
Ethiopia seeks to replicate the experience of East Asian countries such as Taiwan, Malaysia, or China and to attract foreign direct investment (FDI) in order to accelerate the development of its manufacturing capacities (in particular through an ambitious industrial Park – IP - development program and the acceptance of foreign-owned Special Economic Zones - SEZs). On the other hand, China looks to export its development model (including SEZs), to delocalize its most labor-intensive activities, and to promote connectivity between Asia and the African continent. In this context, the Chinese government identified SEZ projects in 19 countries – including one in Ethiopia (the so-called Eastern Industry Zone - EIZ), located in Dukem some 30 kilometers southeast of Addis Ababa. Today, China is by far the leading foreign direct investor in the country. In addition to the Chinese-owned EIZ in Dukem, Chinese investors are also present in privately-run SEZs that are not part of the Chinese Ministry of Commerce (MOFCOM) strategy, as well as in government-led IPs and outside SEZs or IPs. Lastly Chinese firms are also extremely active in all kinds of infrastructure development thanks to Chinese funds.
Topic:
International Political Economy and International Affairs
Political Geography:
China and Ethiopia

22. Chinese FDI in Latin America

Author:
Angel Melguizo, Sean Miner, and Rolando Avendano
Publication Date:
06-2017
Content Type:
Special Report
Institution:
Atlantic Council
Abstract:
China's global influence is on the rise. In Latin America, Chinese firms are not only increasing their investment, but rapidly expanding to new areas of the economy. To explore the implications for all stakeholders in the region, the Atlantic Council, in partnership with the OECD, launched on June 26 a revealing study analyzing data not previously available to the public. New numbers show dramatic rises in FDI from China in Latin America—beyond oil and mining, China is today focusing on ICT, electricity, finance, and alternative energy.
Topic:
International Political Economy
Political Geography:
China and Latin America

23. The ‘Belt and Road’ Initiative and the London Market – the Next Steps in Renminbi Internationalization

Author:
Liu Dongmin
Publication Date:
01-2017
Content Type:
Working Paper
Abstract:
The Chinese government seeks a more prominent role for China’s currency, the renminbi, in the international financial system. Its efforts to establish the renminbi as an international currency – like the US dollar – have hitherto emphasized relatively limited applications such as trade settlement and exchange rate arbitrage. However, recent market and policy developments point to the internationalization process henceforth being driven more by the renminbi’s status as a reserve currency
Topic:
International Political Economy
Political Geography:
China

24. Iran–China Cooperation in the Silk Road Economic Belt: From Strategic Understanding to Operational Understanding

Author:
Mohsen Shariatinia and Hamidreza Azizi
Publication Date:
11-2017
Content Type:
Working Paper
Abstract:
Iran served as a bridge in the ancient Silk Road, connecting the East and the West. It also has great potential to play an important role in the new Silk Road. The present study analyzes the factors affecting Iran–China cooperation in the context of the Belt and Road Initiative at the strategic and operational levels. This article shows that, at the strategic level, Iran defines this project as an opportunity to improve its status in the world economy, expanding its room to manoeuvre in the international arena and developing its ties with China, a rising great power. At the operational level, the opportunities and challenges for Iran–China cooperation could be summarized as pertaining to five realms within the Silk Road Economic Belt Initiative: policy coordination, facilitation of connectivity, unimpeded trade, financial integration and people-to-people bonds. The present study asserts that the main opportunity for cooperation between the two countries lies in facilitating connectivity and that the key challenge is financial integration.
Topic:
International Political Economy and International Affairs
Political Geography:
China and Iran

25. The Belt and Road Initiative in China’s Emerging Grand Strategy of Connective Leadership

Author:
Giovanni Andornino
Publication Date:
10-2017
Content Type:
Working Paper
Abstract:
As Chinese leaders endeavor to maintain the international environment aligned with their strategic aim of realizing the “dream of national rejuvenation,” the remarkable increase in China’s capabilities, coupled with uncertainty in the global economy and the ambivalent attitude of the USA toward the international order, poses fresh challenges to Beijing’s foreign policy. The present paper argues that a lexicographic preference for the mitigation of the risk of pushback against China’s core interests underpins the Belt and Road Initiative. Pursuing a strategy of credible reassurance commensurate to the shift in the distribution of power in China’s neighborhood and globally, President Xi Jinping’s administration has been cultivating a form of connective leadership that commits China to the encapsulation of the Belt and Road Initiative for transregional connectivity into its own national development strategy, generating an octroyé, non-hegemonic, type of international social capital, and integrating the existing order without corroborating the position of its founder
Topic:
International Political Economy
Political Geography:
China

26. “Alternative” Strategic Perceptions in U.S.-China Relations

Author:
David J. Firestein and Euhwa Tran
Publication Date:
05-2017
Content Type:
Commentary and Analysis
Institution:
EastWest Institute
Abstract:
The EastWest Institute has released a new report on U.S.-China relations—"Alternative” Strategic Perceptions in U.S.-China Relations. The report lays out the differing strategic perceptions of the United States and China with respect to some of the most topical and challenging issues on the U.S.-China agenda today. These starkly differing perceptions inform and exacerbate actual policy and fuel mistrust and broad mutual strategic suspicion. By exposing the diverging perceptions of the two countries and bringing those perceptions into the fabric of bilateral discourse more explicitly and honestly, this report creates the basis for a more honest, substantive, constructive, fruitful and mutually beneficial dialogue.
Topic:
International Political Economy and International Affairs
Political Geography:
China and America

27. Chinease Investment in Europe: A country level approach

Author:
Thomas Renard
Publication Date:
12-2017
Content Type:
Special Report
Institution:
EGMONT - The Royal Institute for International Relations
Abstract:
Belgium may not be China’s prime destination for investment in Europe, but as in other neighboring countries these investments are increasing in quality and quantity. Chinese investments are mostly welcomed and encouraged by the government, its agencies and the business community. However, a recent failed deal with EANDIS, a public energy company, has also raised some concerns about the economic and security implications of (some) Chinese investments. Belgian intelligence services, notably, argue for a bit of caution vis-à-vis China. While these two visions could be complementary, they remain held by distinct communities that seem reluctant to acknowledge and listen to one another. As a result, the Belgian response to China’s economic offensive remains overwhelmingly reactive and uncoordinated.
Topic:
International Political Economy
Political Geography:
China

28. From Catching Up to Forging Ahead in Advanced Manufacturing—Reflections on China’s Future of Jobshina's Evolving Role in Latin America: Can it Be a Win-Win?

Author:
Dieter Ernst
Publication Date:
03-2016
Content Type:
Working Paper
Institution:
East-West Center
Abstract:
This paper explores what we know about possible employment effects of the 10-year plan, issued by the State Council on May 19, 2015, entitled Made in China 2025. MIC2025 was designed to address China’s emerging labor shortage challenge. To achieve this goal, the plan seeks to boost labor productivity through an increased use of robots and through network-based upgrading of the entire industrial value chain and related services. How might the projected increase in labor productivity affect the creation and quality of jobs in China? Will China’s push into advanced manufacturing now move the country’s manufacturing employment closer to the pattern of “employment de-industrialization” observed in the US and other industrialized countries? How China will cope with the advanced manufacturing challenge for employment will have major implications not only for the US and other industrialized countries, but also for emerging economies and, most importantly for the majority of developing countries that are still struggling as latecomers to labor-intensive industrial manufacturing. The paper lays out objectives of the MIC 2025 plan and highlights a failure of Chinese policy makers to take into account employment effects and other labor market issues when they design their grand visions of industrial policy. The paper finds that until 2014, manufacturing has acted as an employment absorber in China. However new data on unemployment, labor force participation and income inequality signal that China may now be moving towards an “employment de-industrialization” pattern, unless enough knowledge-intensive service jobs will be created in China’s growing information economy. The paper concludes with implications for policy and further research.
Topic:
Economics, International Political Economy, Markets, and Labor Issues
Political Geography:
China

29. China’s Global Rise Can the EU and U.S. Pursue a Coordinated Strategy?

Author:
Philippe Le Corre and Jonathan Pollack
Publication Date:
10-2016
Content Type:
Special Report
Institution:
The Brookings Institution
Abstract:
China’s emergence as a global economic power and its fuller integration in the international order are among the principal policy challenges facing Europe and the United States in the early 21st century. At the time of Beijing’s entry into the World Trade Organization (WTO) in 2001, China (though already growing rapidly) was in global terms an economic actor of limited consequence. A decade and a half later, China’s transformation is without parallel in economic history. Over the past 15 years, China has experienced an eightfold increase in GDP, enabling it to serve as the pri- mary engine of global economic growth in the early 21st century. It has leapfrogged from sixth to second place among the world’s economies, trail- ing only the United States in absolute economic size. In addition, China has become the world’s leading trading state and is now the second largest source of outward foreign direct investment. Change of this magnitude has enhanced China’s political power and eco- nomic leverage. It has also stimulated China’s internal economic evolution, simultaneously expanding the power of state-owned enterprises (SOEs) while also contributing to major growth in the private sector. China has also begun to think bigger, devoting increased attention to the rules of global economic governance. Although Beijing insists it has no intention of supplanting the existing international order, China contends that chang- ing power realities will require modification of global rules.
Topic:
International Cooperation, International Political Economy, and Geopolitics
Political Geography:
China, America, and Europe

30. A Glass Half Full The Rebalance, Reassurance, and Resolve in the U.S.-China Strategic Relationship

Author:
Michael O'Hanlon
Publication Date:
10-2016
Content Type:
Working Paper
Abstract:
What is the state of the U.S.-China security relationship as President Obama’s term in office concludes? Given the centrality of this rela- tionship to the future of the region and indeed the planet, as well as the emphasis that President Obama has appropriately placed upon it, the question bears asking at this milestone in history.
Topic:
International Political Economy and Geopolitics
Political Geography:
China and America