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11. Analysis of U.S. International Economic Policies and its Implications

Author:
Gu Sang Kang
Publication Date:
05-2022
Content Type:
Policy Brief
Institution:
Korea Institute for International Economic Policy (KIEP)
Abstract:
This study analyzes and evaluates the impact of foreign economic policies implemented during the Trump administration's four-year tenure, and aims to predict the direction of international economic policies under the Biden administration launched following the 2020 presidential election. The former President Trump put 'America First' as the slogan of economic policies and imposed import restrictions and tariffs on trading partners based on Sections 201, 232, and 301 of the U.S. trade acts. In addition, the Trump administration strongly promoted renegotiation, claiming that some existing trade agreements had been concluded unfavorably to the U.S. Furthermore, the Trump administration promoted the standardization of digital trade rules and the expansion of digital taxation in order to support the expansion of digital trade. Through the empirical analysis, we find that the Trump administration's tariff measures had a somewhat positive effect on the U.S. industrial employment, but it is difficult to say that the policy effect that President Trump initially expected was achieved as the measures also had a negative effect on industrial production. Moreover, we find that the tax reform had only a short-term effect in reducing the U.S. direct investment to foreign countries. Like the Trump administration, the Biden administration's international economic policy directions are showing strong protectionist perspectives such as maintaining tariffs on Chinese imports and reorganization of the global supply chains centered on the U.S. Based on our analysis, there are three policy implications. First, it is necessary to strengthen digital trade cooperation with middle power countries participating in the WTO e-commerce negotiations along with a detailed analysis and review of the economic impacts. Second, Korea needs to take advantage of the benefits provided by the U.S. federal government and strengthen cooperation in the supply chain based on norms with the U.S. Finally, Korea needs to reach an amicable agreement with the U.S. on trade remedies that have already been applied by raising the need to strengthen its supply chain with the U.S.
Topic:
Foreign Policy, Digital Economy, Economic Policy, Trade Policy, Donald Trump, Industry, Protectionism, and Joe Biden
Political Geography:
Asia, South Korea, North America, and United States of America

12. Introducing Third Way’s US-China Digital World Order Initiative

Author:
Valerie Shen and Jayson Browder
Publication Date:
06-2022
Content Type:
Working Paper
Institution:
Third Way
Abstract:
If it wasn’t clear three months ago, it is clear now: the next global era will be defined by democracy versus autocracy. In this competition, a new and decisive divide pits America’s approach of “digital democracy” against China’s approach of “digital autocracy.” This great divide places the US and allies on one side and China's unfettered access to sensitive data on the other. China’s digital authoritarianism has been described as "one giant QAnon" and is ubiquitous among the 1.4 billion inhabitants of the country. Moreover, one of the greatest threats to American national security interests is if China prevails in exporting and normalizing its model of digital supremacy. China’s global network of surveillance systems is antithetical to liberal democratic values, as it monitors, punishes, and conditions citizens, as well as influences them through automated disinformation campaigns. China’s ambition for global digital supremacy is real and supported by aggressive diplomatic efforts and massive financial investments. The effort by the United States and like nations to maintain a peaceful and prosperous world order will require a level of sophistication and commitment unrivaled in our history. China is not only an adversary. It is sometimes a partner whose massive economy is deeply entwined with that of the US and other friendly nations. This is not the zero-sum game of the Cold War conflict, and the hope is that it never becomes so. Will liberal democracies strengthen and proliferate or weaken and dwindle in the 21st century? The Chinese state intends to shape the global digital order in its image by redrawing technological norms and standards. Ultimately, the US-China national security competition may hinge on who sets the digital world order.
Topic:
Science and Technology, Authoritarianism, Democracy, Digital Economy, Innovation, and Rivalry
Political Geography:
China, Asia, North America, and United States of America

13. Platform mergers and antitrust

Author:
Geoffrey Parker, Georgios Petropoulos, and Marshall Van Alstyne
Publication Date:
06-2021
Content Type:
Working Paper
Institution:
Bruegel
Abstract:
Platform ecosystems rely on economies of scale, data-driven economies of scope, high quality algorithmic systems, and strong network effects that frequently promote winner-takes-most markets. Some platform firms have grown rapidly and their merger and acquisition strategies have been very important factors in their growth. Big platforms’ market dominance has generated competition concerns that are difficult to assess with current merger policy tools. We examine the acquisition strategies of the five major US firms—Google, Amazon, Facebook, Apple and Microsoft—since their inception. We discuss the main merger and acquisition theories of harm that can restrict market competition and reduce consumer welfare. To address competition concerns about acquisitions in big platform ecosystems we develop a four step proposal that incorporates: (1) a new ex-ante regulatory framework, (2) an update of the conditions under which the notification of mergers should be compulsory and the burden of proof should be reversed, (3) differential regulatory priorities in investigating horizontal versus vertical acquisitions, and (4) an update of competition enforcement tools to increase visibility into market data and trends.
Topic:
Markets, Digital Economy, Internet, Economy, and Innovation
Political Geography:
Global Focus and United States of America

14. Digital Currencies' Role in Facilitating Ransomware Attacks: A Brief Explainer

Author:
Kristine Johnson and Michael Garcia
Publication Date:
05-2021
Content Type:
Policy Brief
Institution:
Third Way
Abstract:
This paper details how Bitcoin—the most popular digital currency—is used to facilitate ransomware attacks and how criminals try—and sometimes fail—to cover their tracks. Understanding how criminals use digital currencies for ransomware attacks can lead policymakers to solutions in thwarting and enforcing cybercrimes.
Topic:
Cybersecurity, Digital Economy, Bitcoin, Digitalization, and Digital Currency
Political Geography:
North America and United States of America

15. China’s Digital Silk Road: integration into national IT infrastructure and wider implications for Western defence industries

Author:
Meia Nouwens
Publication Date:
02-2021
Content Type:
Research Paper
Institution:
International Institute for Strategic Studies
Abstract:
The geopolitical dispute between the United States and China is taking place on the fault line of global telecommunications infrastructure and digital technologies. As this competition grows, so too does the likelihood of a potential bifurcation in the global information and security technological ecosystems, split between US-allied liberal democracies on the one side and countries dependent on Chinese-based information and communications technology (ICT) on the other. The impact of this competition reaches beyond telecommunications companies and those involved in their supply chains. Indeed, second and third order of magnitude implications exist for the security and defence sectors. While this competition unfolds, the Chinese Government’s Digital Silk Road (DSR) continues apace and leverages the strengths of Chinese public- and private-sector giants to further integrate Chinese technologies and standards into the digital ecosystems of the least-developed, emerging and developed economies alike. The existing literature on the security and defence implications of the integration of Chinese ICT into national digital ecosystems is primarily concerned with the potential threats posed to intelligence and defence cooperation. However, the implication of China’s global digital investments for US and other Western defence industries is an understudied subject that deserves greater attention. To provide greater clarity to Western defence industries on these issues, this project has sought to answer four forward-looking questions. Firstly, what risks does the possibility of a bifurcated global digital ecosystem pose for the national and industrial security of key Asian, European and Middle Eastern states and economies? Secondly, to what extent does the integration of Chinese information technology and digital infrastructure create challenges for alliance intelligence and defence cooperation? Thirdly, what level of integration should be considered significant and how might security-cooperation efforts (e.g. Western arms exports) be affected? Lastly, can security risks to companies doing business abroad be mitigated when the integration of Chinese digital technology into national digital ecosystems is already high? This report has aimed to address this gap in current analysis by outlining the potential risks posed by China’s global digital and technological investments to defence industries. It follows with an analysis of the extent of Chinese DSR activity in five case-study countries across Asia, the Middle East and Europe that are of high security and defence importance to the US: Indonesia, the Republic of Korea (ROK), Israel, the United Arab Emirates (UAE) and Poland. In doing so, the report aims to provide greater insight into government decision-making and lessons learned for Western defence industries.
Topic:
Science and Technology, Communications, Infrastructure, Hegemony, Digital Economy, Conflict, Silk Road, and Rivalry
Political Geography:
China, Asia, North America, and United States of America

16. Central Bank Digital Currency and Governance: Fit for Purpose?

Author:
Pierre Siklos
Publication Date:
04-2021
Content Type:
Working Paper
Institution:
Centre for International Governance Innovation (CIGI)
Abstract:
As digital forms of payment become increasingly popular, especially during the COVID-19 pandemic, cash is no longer king. Central banks are turning their attention toward central bank digital currency (CBDC) to replace coins and bills and to provide other types of services through digital technology. CBDC can also facilitate cross-border transactions through the use of internationally accepted currencies such as the euro and the US dollar. This paper explores the many tailwinds and headwinds that will affect the implementation of a CBDC.
Topic:
Governance, Digital Economy, Banks, and Digital Currency
Political Geography:
North America, Global Focus, and United States of America

17. Governing Digital Trade – A New Role for the WTO

Author:
Wallace Cheng and Clara Brandi
Publication Date:
01-2019
Content Type:
Policy Brief
Institution:
German Institute of Development and Sustainability (IDOS)
Abstract:
Digitalisation is transforming the economy and redefining trade. Recently, members of the World Trade Organization (WTO) have started to discuss how trade policies and rules should be adapted to address this transformation. For example, in January 2019, 76 WTO members announced the launch of “negotiations on trade-related aspects of electronic commerce”. The scope of these e-commerce negotiations is yet to be defined, but to ban tariffs on electronic trans­missions will certainly be on the priority list of WTO members such as the United States (US) and the European Union (EU). The idea of banning tariffs on electronic transmission originated at the WTO’s Ministerial Conference (MC) in 1998, when Members declared that they would “continue their current practice of not imposing customs duties on electronic transmissions”. This temporary moratorium on e-commerce tariffs needs to be regularly extended, requiring a decision made “by consensus”. Members have repeatedly extended the moratorium on tariffs on “electronic trans­missions”, most recently at the latest WTO MC in 2017. But the WTO e-commerce moratorium is increasingly disputed: First, while net exporters of digital products and services, typically industrialised countries, understand the tariff ban to apply to digital content, net importers interpret it as referring only to electronic carriers (e.g. CDs, electronic bits), which means that they regard themselves as permitted to impose customs duties on the content of online trade. Second, while net exporters like the US and the EU propose a permanent ban on e-commerce tariffs in order to provide greater certainty to consumers and business, arguing that the resulting revenue losses are small, net importers like India and South Africa underline that they suffer much greater revenue losses than industrialised countries and have to bear the brunt of the moratorium. Third, while industrialised countries argue that the ban on tariffs on electronic transmissions would reduce market distortions, developing countries are concerned that a permanent moratorium would limit their options to protect domestic products and services traded online. Fourth, the moratorium has stirred a debate about how to create a level playing field between domestic and foreign suppliers of digital products and services.
Topic:
Development, Science and Technology, World Trade Organization, and Digital Economy
Political Geography:
India, South Africa, United States of America, and European Union

18. Abenomics and Japan's Entrepreneurship and Innovation: Is the Third Arrow Pointed in the Right Direction for Global Competition in the Digital Era of Silicon Valley?

Author:
Kenji E. Kushida
Publication Date:
01-2018
Content Type:
Working Paper
Institution:
Walter H. Shorenstein Asia-Pacific Research Center
Abstract:
Given that much of the global leadership in value creation over the past couple of decades has been driven by the Silicon Valley model – not only a geographic region but a distinct ecosystem of complementary characteristics – the basic question this paper asks is how far Japan’s Abenomics reforms are pushing Japan towards being able to compete in an era dominated by Silicon Valley firms. To answer this, the first section of this paper looks at content of the third arrow of Abenomics. The second section then distills the Silicon Valley ecosystem into its key characteristics, sorts each of these characteristics according to the underlying institutions to put forth a model, and briefly evaluates whether third arrow reforms move Japan closer to a Silicon Valley model of entrepreneurship and innovation.
Topic:
Digital Economy, Entrepreneurship, Innovation, Digitization, and Sillicon Valley
Political Geography:
North America and United States of America

19. U.S.-Korea Economic Relations and the Next U.S. Administration

Author:
Troy Stangarone
Publication Date:
04-2016
Content Type:
Journal Article
Journal:
International Journal of Korean Studies
Institution:
International Council on Korean Studies
Abstract:
When the next United States president is inaugurated on January 20, 2017, he or she may face one of the more challenging domestic political environments for international trade in the modern political era; at that time, the U.S. will need to make significant decisions regarding its economic relationship with East Asia, including South Korea. The most significant decision facing the next administration will be handling the Trans-Pacific Partnership (TPP). While there is still time for the U.S. Congress to pass the TPP prior to the next administration taking office, it is increasingly likely that the next administration will have to grapple with either passing or renegotiating the Asia-Pacific-wide agreement, as well as determining how to bring South Korea into the region wide agreement. Bringing Korea into the TPP will further solidify the U.S.’ economic relationship with South Korea, enhancing efforts to move toward a free trade area within the Asia-Pacific. While South Korea’s accession to the TPP will likely be the next administration’s major economic objective, they should also work to strengthen the economic relationship with South Korea by deepening cooperation on small and medium sized enterprises (SMEs), cyber security, the digital economy, energy, and New Frontier issues.
Topic:
Energy Policy, Politics, Partnerships, Digital Economy, Trans-Pacific Partnership, Trade, and Economic Cooperation
Political Geography:
East Asia, South Korea, and United States of America