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1. Tracing the Roots of China’s AI Regulations

Author:
Matt Sheehan
Publication Date:
02-2024
Content Type:
Working Paper
Institution:
Carnegie Endowment for International Peace
Abstract:
In 2021 and 2022, China became the first country to implement detailed, binding regulations on some of the most common applications of artificial intelligence (AI). These rules formed the foundation of China’s emerging AI governance regime, an evolving policy architecture that will affect everything from frontier AI research to the functioning of the world’s second-largest economy, from large language models in Africa to autonomous vehicles in Europe. U.S. political leaders often warn against letting China “write the rules of the road” in AI governance. But if the United States is serious about competing for global leadership in AI governance, then it needs to actually understand what it is competing against. That requires examining the nuts and bolts of both China’s AI regulations and the policy process that shaped them. This paper is the second in a series breaking down China’s AI regulations and pulling back the curtain on the policymaking process shaping them. The Chinese Communist Party (CCP) and the Chinese government started that process with the 2021 rules on recommendation algorithms, an omnipresent use of the technology that is often overlooked in international AI governance discourse. Those rules imposed new obligations on companies to intervene in content recommendations, granted new rights to users being recommended content, and offered protections to gig workers subject to algorithmic scheduling. The Chinese party-state quickly followed up with a new regulation on “deep synthesis,” the use of AI to generate synthetic media such as deepfakes. Those rules required AI providers to watermark AI-generated content and ensure that content does not violate people’s “likeness rights” or harm the “nation’s image.” Together, these two regulations also created and amended China’s algorithm registry, a regulatory tool that would evolve into a cornerstone of the country’s AI governance regime. Contrary to popular conception in the rest of the world, China’s AI governance regime has not been created by top-down edicts from CCP leadership. President Xi Jinping and other top CCP leaders will sometimes give high-level guidance on policy priorities, but they have not been the key players when it comes to shaping China’s AI regulations. Instead, those regulations have been the product of a dynamic and iterative policymaking process driven by a mix of actors from both inside and outside the Chinese party-state. Those actors include mid-level bureaucrats, academics, technologists, journalists, and policy researchers at platform tech companies. Through a mix of public advocacy, intellectual debate, technical workshopping, and bureaucratic wrangling, these actors laid the foundations for China’s present and future AI regulations. This paper traces the progression of these regulations through the “policy funnel” (see figure 1) of Chinese AI governance. For both recommendation algorithms and deep synthesis rules, the initial spark for the regulation came from long-standing CCP concerns about the creation and dissemination of online content. For the former, the rise of the algorithmically driven news app Toutiao threatened the CCP’s ability to set a unified narrative and choose which stories are pushed to readers. In the case of deep synthesis, online face swap videos grabbed the attention of the Chinese public and led government regulators to consider the threat of deepfakes. Over the course of 2017–2020, these concerns made their way through China’s bureaucracy. Regulators took a series of stopgap measures in specific applications, while also tasking policy analysts and government-adjacent technical organizations with exploring different regulatory interventions.
Topic:
Science and Technology, Governance, Regulation, and Artificial Intelligence
Political Geography:
China, East Asia, and Asia

2. The Percolation of Knowledge across Space

Author:
Pierre Cotterlaz and Arthur Guillouzouic
Publication Date:
07-2024
Content Type:
Working Paper
Institution:
Centre d'Etudes Prospectives et d'Informations Internationales (CEPII)
Abstract:
This paper shows that the negative effect of geographical distance on knowledge flows stems from how firms gain sources of knowledge through their existing network. We start by documenting two stylized facts. First, in aggregate, the distance elasticity of patent citations flows has remained constant since the 1980s, despite the rise of the internet. Second, at the micro level, firms disproportionately cite existing knowledge sources, and patents cited by their sources. We introduce a framework featuring the latter phenomenon, and generating a negative distance elasticity in aggregate. The model predicts Pareto-distributed innovator sizes, and citation distances increasing with innovator size. These predictions hold well empirically. We investigate changes of the underlying parameters and geographical composition effects over the period. While the distance effect should have decreased with constant country composition, the rise of East Asian economies, associated to large distance elasticities, compensated lower frictions in other countries.
Topic:
Economy, Innovation, Patents, and Knowledge Diffusion
Political Geography:
East Asia and Global Focus

3. East Asia’s Worsening Security Situation

Author:
Nina C. Krickel-Choi
Publication Date:
01-2023
Content Type:
Special Report
Institution:
Austrian Institute for International Affairs (OIIP)
Abstract:
2022 was not a good year for security in the Asia Pacific Region, with multiple crucial relationships hitting a new low, and 2023 does not promise to be much better. While all-out military confrontation is not likely, it is also not off the table and care needs to be taken that contingency events and hasty decisions do not trigger a full-blown escalation. The following highlights three of the most critical flashpoints: the Korean peninsula, the Taiwan Strait, and the reemergence of Cold War blocs in East Asia.
Topic:
Security, Military, and Regional Politics
Political Geography:
East Asia and Asia

4. India’s Ongoing “Strategic Correction to the East” during 2022

Author:
Satu Limaye
Publication Date:
01-2023
Content Type:
Journal Article
Journal:
Comparative Connections
Institution:
Pacific Forum
Abstract:
India’s East Asia relations in 2022 followed the arc articulated by External Affairs Minister S. Jaishankar’s address at Chulalongkorn University in Thailand in August. He recalled three decades ago India made a “strategic correction to the East…[o]riginally…contemplated as an economic measure, with trade and investment at its core” and mostly focused on ASEAN. He said the geography, concepts, and assessments of India’s Indo-Pacific vision have expanded “to cover Japan, Korea and China, and in due course, Australia as also other areas of Pacific Islands…[and] facets of cooperation also increased…now cover[ing] connectivity in various forms, people-to-people ties and more recently, defense and security.” And while dutifully referencing India’s Indo-Pacific policies including Security and Growth for All in the Region (SAGAR) and the Indo-Pacific Oceans’ Initiative (IPOI), he gave the most attention to the revitalized Quadrilateral Security Dialogue (“Quad”). The highlights of India in East Asia in 2022 were numerous Quad meetings, the inaugural India-ASEAN Defense Ministers’ Meeting, the second India-Japan 2+2 Ministerial Dialogue, the Australian deputy prime minister and minister for defense’s visit to India, and India’s defense minister visits to Vietnam and Mongolia. Defense and security engagement included numerous exercises, defense dialogues, military-to-military exchanges, and navy ship visits.
Topic:
International Relations, Foreign Policy, Diplomacy, Strategic Interests, and Quad Alliance
Political Geography:
India, East Asia, and Asia

5. The Quad's Next Chapter

Author:
Karl Friedhoff
Publication Date:
09-2023
Content Type:
Special Report
Institution:
Chicago Council on Global Affairs
Abstract:
Advancing the group's pillars of prosperity and development will be at the very heart of competition with China in the coming decade. The Quad—the country grouping including the United States, Japan, Australia, and India—now stands at a crossroads as it enters its third phase. The Quad 3.0 comes as the grouping has established the dialogue as a meeting place for leaders of the four countries but must now decide what shape competition with China will take and how to best address that competition. Thus far the Quad has struggled to find function for its form. Statements issued by Quad leaders stress the importance of “development, stability, and prosperity” in an effort to roll back China’s influence across the Indo-Pacific. However, its most high-profile activities focus on stability via high-profile military exercises. Closer internal coordination along the security axis serves to highlight the lack of visible progress on the external delivery of development and prosperity to countries outside the Quad. Efforts to deliver development and prosperity are hemmed in by the Quad itself. Neither the United States or India are party to either of the major regional trade agreements—the CPTPP and RCEP. The Indo-Pacific Economic Framework (IPEF), held up by the Biden administration as America’s economic engagement with Asia, remains a mirage. Meanwhile, as the United States de-risks its economic relationship with China, it is effectively warning that doing business with Beijing may come at a cost to relations with Washington—an unpopular message across much of the Indo-Pacific. Additionally, any hint of security cooperation with China by smaller countries in the region creates a flurry of diplomatic reaction from the United States. To move forward, the Quad needs to better balance its portfolio and how it messages that portfolio. The overt promotion of the security agenda is actively undermining perceptions of the Quad’s ability to engage on development and prosperity. A first corrective step is to balance the group’s internal goal of improved security coordination and cohesion with the Quad’s external goal of delivering development and prosperity to countries in the region. Committing to an agenda that brings the people of the region, not its seas, to the fore of the Quad mission should be a top priority. This means rejecting the dogma that every China initiative in the region needs a Quad alternative. Instead, advancing Quad goals requires identifying China’s activities that can be co-opted for Quad purposes. This will mean working around, and sometimes with, China’s initiatives to better serve not only the Quad’s goals in prosperity and development but also the people of the region.
Topic:
Foreign Policy, Development, Geopolitics, Trade, Strategic Competition, and Quad Alliance
Political Geography:
Japan, China, South Asia, India, East Asia, Australia, North America, United States of America, and Oceania

6. Naval Incident Management in Europe, East Asia and South East Asia

Author:
Ian Anthony, Fei Su, and Lora Saalman
Publication Date:
03-2023
Content Type:
Commentary and Analysis
Institution:
Stockholm International Peace Research Institute (SIPRI)
Abstract:
Unprecedented global turbulence in 2022 has demonstrated the need to pay increased attention to naval operations. Enhanced military capability allows naval power projection far beyond home waters. New threats and challenges are emerging from technological advances and new applications, not least the vulnerability of warships and naval facilities to cyber intrusions and cyberattacks. As states implement the programmes they need to protect and promote their interests at sea, there is also likely to be an increase in the number of close tracking incidents. How effective current risk reduction mechanisms will be at dealing with incidents at sea is unclear. This Insights Paper provides a preliminary assessment of the existing mechanisms and suggests areas for further improvement.
Topic:
Security, Science and Technology, Cybersecurity, Navy, Crisis Management, and Military
Political Geography:
Europe, East Asia, Asia, and Southeast Asia

7. Moving to an Offshore Balancing Strategy for East Asia

Author:
Peter Harris
Publication Date:
10-2023
Content Type:
Commentary and Analysis
Institution:
Defense Priorities
Abstract:
Those calling for Washington to expand U.S. military presence in the Western Pacific have misread the regional security environment. The United States can reduce its military footprint in East Asia without jeopardizing its national security or the stability of the region. China is not poised to dominate East Asia or any other part of the Indo-Pacific region. While the distribution of power in East Asia has shifted in favor of Beijing, it does not follow that China constitutes a major threat to the territorial integrity or political independence of all neighboring states. Regional powers can deter China from launching wars of aggression by investing in the right kinds of defensive weaponry to capitalize on geographic advantages. The United States should play the role of an “offshore balancer” by helping China’s neighbors to become more resilient to coercion from Beijing. The leaders of several prominent states in East Asia are anxious to avoid a “cold war” between the United States and China. Washington should heed their calls for restraint. Pushing these governments to choose a side in the U.S.-China rivalry would needlessly antagonize them. The issue of Taiwanese security presents a special challenge for the United States and its allies. Taiwan has the most to lose from China’s rise and perceives U.S. military support as essential to its survival as a de facto independent entity. However, the United States can retrench from East Asia without “abandoning” Taiwan to China. Peace in East Asia and the wider Indo-Pacific does not depend upon the United States enjoying primacy in the region. On the contrary, the pursuit of U.S. military primacy in the Western Pacific will make it more difficult to maintain regional security and promote economic prosperity over the long term.
Topic:
Security, Foreign Policy, Military Affairs, Deterrence, and Strategic Interests
Political Geography:
East Asia, Asia, and United States of America

8. ASEAN Digital Community 2045

Author:
Lili Yan Ing, Yessi Vadila, Ivana Markus, and Livia Feliciani Nazara
Publication Date:
11-2023
Content Type:
Working Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
Over the last decade, the Association of Southeast Asian Nations (ASEAN) has undergone significant development in digitalisation. The rapid digital transformation in ASEAN, however, has brought forth risks and challenges encompassing data security, cybersecurity, competition, and the digital divide. To effectively address these challenges and leverage the potential of the digital realm, ASEAN developed nine frameworks during 2016–2023. Yet, the focus is primarily on digital trade. We suggest that ASEAN embrace digital transformation by establishing the ASEAN Digital Community (ADC) 2045. This vision could provide guidance to Member States, enabling them to overcome regional challenges and unlock their digital potential. It is crucial for ASEAN to nurture digital development across the three key pillars: political-security, economic, and socio-cultural dimensions. The three pillars should be built on four fundamental elements: data governance, value-added enhancement, improved digital connectivity, and digital inclusivity. Through the establishment of ADC 2045, ASEAN could position itself as a significant player in the global digital economy while ensuring that digital transformation aligns with its sustainable and inclusive development agenda.
Topic:
Science and Technology, Investment, Innovation, Trade, ASEAN, Connectivity, and Competition
Political Geography:
East Asia, Asia, and Southeast Asia

9. Next Generation Perspectives on Taiwan: Insights from the 2023 Taiwan-US Policy Program

Author:
Bonnie S. Glaser
Publication Date:
08-2023
Content Type:
Special Report
Institution:
German Marshall Fund of the United States (GMFUS)
Abstract:
Taiwan faces growing threats to its security. The circumstances and factors that have deterred for decades an attack by the People’s Republic of China (PRC) on Taiwan and enabled its people to remain secure and prosperous are changing. The conventional military balance in the western Pacific has tipped in China’s favor, although its military, the People’s Liberation Army, is not yet ready to seize and control Taiwan. Apart from the military threats of invasion, blockade, and seizure of one of its small outlying islands, Taiwan is the target of Chinese economic and diplomatic pressure, disinformation, united front tactics, and other forms of psychological warfare. Most of the global focus on Taiwan centers on the risk of war, leaving insufficient attention to these gray-zone threats that are designed to sow doubts about US willingness to defend Taiwan if attacked and to induce a sense of deep psychological despair about its future unless it is integrated into the PRC. Beijing’s ultimate goal is to convince the people of Taiwan to lose faith in their democracy and to surrender sovereignty. China is more likely to succeed in that endeavor if Taiwan becomes isolated from the rest of the world. Only 13 sovereign states now maintain full diplomatic relations with the Republic of China, the official name that Taiwan uses to distinguish itself from its giant neighbor. Since President Tsai Ing-wen took office in 2016, Beijing has poached nine of Taiwan’s diplomatic allies and blocked Taipei from participating in international organizations, including the World Health Organization and its decision-making body, the World Health Assembly. On the economic front, Taiwan remains an active member of the Asia Pacific Economic Cooperation (APEC), but it has been excluded from the ASEAN-inspired Regional Comprehensive Economic Partnership (RCEP) and the US-led Indo-Pacific Economic Framework (IPEF). Beijing is lobbying members of the Comprehensive and Progressive Trans-Pacific Partnership (CPTPP) to oppose Taipei’s application for membership. Easing Taiwan’s isolation and providing reassurance that the world cares deeply about the fate and well-being of its 23.5 million people are crucial to preserving the status quo in the Taiwan Strait. The Taiwan-US Policy Program (TUPP) was launched in 2017 to encourage young professionals to include Taiwan in their research and help Taipei expand its global networks. TUPP enables future leaders to acquire a deeper understanding of Taiwan and its relations with the United States through meetings with officials and experts in Washington, followed by a visit to Taiwan to gain first-hand exposure to its politics, culture, and history. Experiencing Taiwan influences how these future leaders approach their work and their writing. It impacts their worldview by imbuing them with an appreciation for Taiwan’s history and commitment to the principles of democracy and human rights that undergird the existing international order. It also reinforces the importance of maintaining robust bilateral relations and strengthening international support for maintaining peace and stability in the Taiwan Strait.
Topic:
Security, Foreign Policy, and Geopolitics
Political Geography:
China, Taiwan, East Asia, United States of America, and Indo-Pacific

10. Good Practices in the Provision of Global Public Goods: How multilateral development banks build on global public goods in their operations

Author:
Johanna Neuhoff and Hannah Zick
Publication Date:
07-2023
Content Type:
Special Report
Institution:
Oxford Economics
Abstract:
In our flagship report, ‘Multilateral Development Banks for Global Public Goods’, commissioned by Deutsche Gesellschaft für Internationale Zusammenarbeit on behalf of the German Federal Ministry for Economic Cooperation and Development, Oxford Economics highlighted the positive role that the use of GPGs can play in preventing and addressing crises that cross national boundaries. As part of that work, we wanted to identify and share promising practices and good examples of how the provision of GPGs can be supported through international funding—and in particular through MDBs. We gathered a longlist of 99 examples of MDBs supporting GPG provision based on comprehensive desk research and interviews with over 30 key actors in the realm of project development. From this, we selected 20 case studies to carry out “deep dive” research to showcase good practices of provision of GPGs by MDBs based on whether the intervention: benefitted not only people inside the country of implementation but also beyond the country’s borders; supported the implementation of framework conditions that change the incentive structure for the provision of GPGs; could be replicated in other countries; and rated a good practice in reports or named a good practice by interview partners from MDBs. As a result, we gathered examples of GPG projects supported by MDBs and multilateral institutions at the country level that might not have been intended to only support GPG provision—such as those GPG projects mostly financed via Trust Funds and FIFs—but which also produced high GPG effects by maximising the synergies between national and global benefits. The case studies are designed to inform stakeholders from MDBs and receiving countries involved in the programming and project designing of development cooperation alike. The case studies showcase promising and highly replicable ways of supporting the provision of GPGs in the MDBs’ country engagement—considering both national and cross-country benefits of an intervention. Furthermore, valuable lessons can be learned on the institutional set-up, financing, quantification etc. concerning the support of GPGs by MDBs. They include examples of projects in sub-Saharan Africa, East Asia & Pacific, Latin America and the Caribbean, and South Asia, and which covered issues such as climate and the environment, global public health, peace and security, financial resilience, and a fair international trading system. In a synthesis report, we set out 12 recommendations to organisations implementing GPGs to ensure they maximise the benefits on the ground, based on our findings from the analysis of the case studies. These range from using cost-benefit analysis and focusing on projects with high cross-country benefits to helping coordination of in-country provision and encouraging regional learning.
Topic:
Climate Change, Development, Environment, International Trade and Finance, Institutions, Public Health, and Multilateral Development Banks (MDBs)
Political Geography:
South Asia, East Asia, Germany, Latin America, Caribbean, Asia-Pacific, Global Focus, and Sub-Saharan Africa