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51. The Future of Chinese Foreign Economic Policy Will Challenge U.S. Interests, Part 2: Renminbi Internationalization and International Economic Institutions

Author:
Sagatom Saha
Publication Date:
02-2020
Content Type:
Journal Article
Journal:
China Brief
Institution:
The Jamestown Foundation
Abstract:
Complications surrounding the Belt and Road Initiative (BRI), and the dangers of the “middle-income trap,” are not the only factors impacting the international economic policies of the People’s Republic of China (PRC). Furthermore, poor capital efficiency is not the only feature of the Chinese economy that frustrates the country’s policymakers. China’s gross domestic product (GDP) has roughly doubled in the last decade, but Beijing’s pull in the international monetary and financial system remains lackluster. This lack of progress stems in part from the dollar’s centrality around the world, as well as U.S. dominance in international economic institutions. Beijing’s economic planners have long advocated against the dollar while attempting to increase the global role of the PRC’s own renminbi (RMB) currency. While past efforts stumbled, RMB internationalization and increased Chinese influence will directly confront U.S. economic and geopolitical interests.
Topic:
Economics, International Cooperation, International Trade and Finance, Hegemony, Conflict, and Rivalry
Political Geography:
China, Asia, North America, and United States of America

52. Global Supply Chains, Economic Decoupling, and U.S.-China Relations, Part 1: The View from the United States

Author:
Sagatom Saha and Ashley Feng
Publication Date:
04-2020
Content Type:
Journal Article
Journal:
China Brief
Institution:
The Jamestown Foundation
Abstract:
The trade war has defined the current adversarial relationship between the United States and the People’s Republic of China (PRC). While President Donald J. Trump has at times openly expressed admiration for Chinese Communist Party (CCP) General Secretary Xi Jinping, his administration has pursued policies consistent with economic and technological decoupling. These policies include reforms that strengthen the Committee on Foreign Investment in the United States (CFIUS); greater usage of the export control system, especially the Entity List; and threatening the use of the International Emergency Economic Powers Act (IEEPA) to force U.S. companies back to the United States. These policies, taken to their logical end, would see the secular decoupling of the U.S. and Chinese economies and the rerouting of the global supply chains that bind them. The interim trade deal has done seemingly little to change the structural economic conflict between Beijing and Washington. If economic decoupling came to pass, it would portend a sweeping reorientation of the global economy that many analysts regard as lying outside the bounds of conventional analysis. Yet some Trump administration officials, such as Director of Trade and Manufacturing Policy Peter Navarro, have promoted economic decoupling as their desired aim (SCMP, June 20, 2018; Forbes, December 3, 2019). President Trump himself has “ordered” American companies to look for alternative suppliers outside of China, or to return production to the United States (Twitter, August 23, 2019). The Trump Administration’s trade and investment restrictions have not been limited to U.S. companies—they also include pressuring third-party countries and foreign companies to abide by U.S. restrictions. Chinese companies are also relocating their manufacturing capabilities abroad—in part because of secular economic trends, but U.S. actions are accelerating the process. Simply put, sustained U.S. policies on China can encourage economic decoupling, but only if global economic trends continue to cooperate. Those policies are nascent, but could likely become a structural feature of the U.S.-China economic relationship—especially since a harder stance towards China has gained traction among both major parties. This has been demonstrated by widespread criticism of Chinese trade practices in both parties, and in bipartisan votes on legislation antagonistic to Beijing, such as the Hong Kong Democracy and Human Rights Act or the UIGHUR Act (see further below). The Trump Administration has pursued a three-pronged approach in breaking down economic supply-chain links: 1) escalating tariffs, which discourages bilateral trade; 2) imposing investment restrictions and export controls that punish tech transfers; and 3) issuing threats to U.S. firms that do business in China under the IEEPA. These current policies preview what could become a new orientation in U.S. policy towards China, regardless of who leads the United States at the beginning of next year.
Topic:
International Trade and Finance, Hegemony, Conflict, Trade Wars, and Supply Chains
Political Geography:
China, Asia, North America, and United States of America

53. The Missing State Department Memo on US Officials’ Possible Aiding and Abetting Saudi War Crimes

Author:
Oona A. Hathaway
Publication Date:
07-2019
Content Type:
Working Paper
Institution:
Center for Global Legal Challenges, Yale Law School
Abstract:
Today the Senate Foreign Relations Committee is set to consider dueling bills on Saudi Arabia. A bill sponsored by Senator Robert Menendez (D-N.J.), would block arms sales to the Kingdom and in-flight refueling of Saudi aircraft. This largely mirrors a series of measures passed in the House on July 17 to block the sale of billions of dollars of arms to Saudi Arabia and the United Arab Emirates. But in an unusual move, Committee Chairman Jim Risch (R-Idaho) broke comity to put forward his own separate bill focused more narrowly on the killing of journalist Jamal Khashoggi that would merely deny visas to a few Saudi government officials and require that the secretary of state conduct a review of the United States’ relationship with the country. In all likelihood, this is the bill that will advance, allowing the U.S. sales of arms to Saudi Arabia to continue.
Topic:
Foreign Policy, International Law, International Trade and Finance, Arms Trade, and Humanitarian Crisis
Political Geography:
Middle East, Saudi Arabia, North America, and United States of America

54. Developing a More Inclusive US Trade Policy at Home and Abroad

Author:
Kimberly Ann Elliott
Publication Date:
06-2019
Content Type:
Working Paper
Institution:
Center for Global Development (CGD)
Abstract:
American policymakers have failed to adequately respond to concerns about globalization’s effects and the resulting backlash has taken an ugly turn in recent years. While globalization is only one of many factors contributing to economic dislocation, sluggish wage growth and inequality in the United States, foreigners, and developing countries in particular, are frequently the target of those who are frustrated at being left behind. Yet few realize that US trade policy effectively discriminates against poorer countries. In addition, provisions in trade agreements that tilt the playing field in favor of business interests over those of American consumers and workers also often undermine development priorities in partner countries. American policymakers should rethink the substance and process of trade policy and negotiations to spread the benefits more broadly, at home and abroad.
Topic:
Globalization, International Trade and Finance, Inequality, and Domestic Policy
Political Geography:
United States and North America

55. In Dire Straits? Implications of U.S.-Iran Tensions for the Global Oil Market

Author:
Ilan Goldenberg, Kaleigh Thomas, and Jessica Schwed
Publication Date:
11-2019
Content Type:
Special Report
Institution:
Center for a New American Security (CNAS)
Abstract:
In recent months, Iran has responded to rising tensions with the United States—particularly the US launch of the “maximum pressure” campaign against Iran—by attacking oil tankers and infrastructure in the Persian Gulf region around the Strait of Hormuz (the Strait). These actions have been designed to signal to the United States, the Gulf states, and the international community that the American strategy of strangling Iran economically will not be cost-free, and to Saudi Arabia in particular that it is highly vulnerable to Iranian retaliation. As the Strait of Hormuz is one of the world’s most critical energy chokepoints, the implications of Iran’s efforts merit close scrutiny and analysis. This study was designed to examine three scenarios for military conflict between Iran and the United States and assess the potential impacts on global oil prices—as one specific representation of the immediate economic impact of conflict—as well as broader strategic implications.
Topic:
International Trade and Finance, Oil, and Global Markets
Political Geography:
Iran, Middle East, North America, and United States of America

56. Public and Opinion Leaders' Views on US-China Trade War

Author:
Craig Kafura
Publication Date:
06-2019
Content Type:
Special Report
Institution:
Chicago Council on Global Affairs
Abstract:
The Trump Administration has taken an aggressive line on US-China trade issues. Starting with steel and aluminum tariffs in March 2018, the United States has gradually imposed a number of tariffs on various Chinese goods. China responded in turn to each round. Recent negotiations, though initially fruitful, foundered on issues of Chinese subsidies and what US trade representative Robert Lighthizer described as “an erosion in commitments by China.” Now the escalation cycle has resumed. According to surveys conducted in 2018 among foreign policy opinion leaders by the Chicago Council on Global Affairs and the University of Texas, and the results of the 2018 Chicago Council Survey of the general US public, concerns about a potential trade war between the United States and China were already widespread before this most recent escalation.
Topic:
Foreign Policy, International Trade and Finance, Public Opinion, and Trade Wars
Political Geography:
China, Asia, North America, and United States of America

57. Americans Favor US-China Trade, Split Over Tariffs

Author:
Craig Kafura
Publication Date:
09-2019
Content Type:
Special Report
Institution:
Chicago Council on Global Affairs
Abstract:
Over the past 18 months, the United States and China have engaged in a steady escalation of tariffs. Beginning with steel and aluminum tariffs imposed by the Trump administration in March 2018, the trade conflict has expanded to cover hundreds of billions of dollars in bilateral trade. Recent rounds of negotiations have made no new progress and have led to both sides escalating further. The most recent US tariffs on Chinese imports went into effect on September 1, covering $112 billion of goods. Beijing has countered with retaliatory tariffs and has halted all agricultural purchases from the United States, a move targeted at already-struggling US farmers. While Americans broadly support engaging in trade with China, they are split along partisan lines on how to engage in that trade. Republicans support raising tariffs on Chinese imports and believe it will help the US economy in the long run, while Democrats oppose doing so and believe it will be harmful.
Topic:
International Trade and Finance, Bilateral Relations, Tariffs, and Trade Wars
Political Geography:
China, Asia, North America, and United States of America

58. Record Number of Americans Say International Trade Is Good for the US Economy

Author:
Brendan Helm, Dina Smeltz, and Alexander Hitch
Publication Date:
10-2019
Content Type:
Special Report
Institution:
Chicago Council on Global Affairs
Abstract:
President Donald Trump has embarked on an ambitious and disruptive trade agenda, driven by his belief that the United States has lost “many billions of dollars” to trading partners and that “trade wars are good, and easy to win.”[1] During his term, the president has escalated trade tensions with China; has renegotiated trade agreements with countries such as Mexico, Canada, and South Korea; and has withdrawn US involvement in trade deals such as the Trans-Pacific Partnership. The 2019 Chicago Council Survey finds that though Republicans and Democrats differ on whether President Trump’s strategy is an effective approach to trade policy, the American public is more likely than ever to say that international trade benefits the United States.
Topic:
International Trade and Finance, Economy, and WTO
Political Geography:
Canada, South Korea, North America, Mexico, Global Focus, and United States of America

59. Cross-Border Trade and Corruption along the Haiti-Dominican Republic Border

Author:
Mary Speck
Publication Date:
03-2019
Content Type:
Working Paper
Institution:
Center for Strategic and International Studies (CSIS)
Abstract:
Illegal trade across the Haiti/Dominican Republic border has serious financial and security implications. Contraband undermines legitimate business on both sides of the border and deprives the public sector—especially the cash-strapped government of Haiti—of much-needed revenues. It also undermines rule of law and public security by fueling corruption and strengthening criminal organizations. After two research trips to both Haiti and the Dominican Republic, CSIS Americas has produced a summary report of the issue of illicit border trade between Haiti and the Dominican Republic, incorporating several case studies and policy recommendations for preventing further cross-border illicit trade and revenue loss.
Topic:
International Trade and Finance, Regional Cooperation, Border Control, and Illegal Trade
Political Geography:
Caribbean, Haiti, Dominican Republic, and North America

60. U.S. Foreign Exchange Policy—Currency Provisions and Trade Deals

Author:
Mark Sobel
Publication Date:
04-2019
Content Type:
Working Paper
Institution:
Center for Strategic and International Studies (CSIS)
Abstract:
The Barack Obama administration’s efforts to secure Trade Promotion Authority (TPA), in conjunction with advancing the Trans-Pacific Partnership (TPP), brought into focus a congressional push to associate currency provisions with U.S. trade agreements. Since that time, discussions on the association of currency provisions with trade deals have gained momentum and become a feature of U.S. foreign exchange policy, especially under the Donald Trump administration. What is the historical context for including currency provisions alongside or as part of trade deals in U.S. exchange rate policy? What has actually been done? Is including currency provisions alongside or in trade deals a good idea? How should this be best managed?
Topic:
Foreign Policy, International Cooperation, International Trade and Finance, Exchange Rate Policy, and Trans-Pacific Partnership
Political Geography:
North America and United States of America