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351. The (Updated) Case for Free Trade

Author:
Scott Lincicome and Alfredo Carrillo Obregon
Publication Date:
04-2022
Content Type:
Policy Brief
Institution:
The Cato Institute
Abstract:
The long‐​standing bipartisan consensus in favor of free trade in the United States has unraveled as the nation’s commitment to the multilateral trading system is increasingly subordinated to inward‐​looking ideological priorities. Like all forms of market competition, trade can be disruptive for some companies and workers, and various trade agreements may require updating to address both an increasingly authoritarian China and the 21st‐​century global economy. Nevertheless, both the seen and unseen economic benefits that free trade has delivered to countless individuals, businesses, and communities in America are undeniable and irreplaceable. Furthermore, the lone alternative to free trade, protectionism, has repeatedly proven to impose high costs for minimal benefits. In short, the case for free trade is an economic no‐​brainer.
Topic:
Geopolitics, Economy, Free Trade, and Protectionism
Political Geography:
North America and United States of America

352. Countering the Hydra: A proposal for an Indo-Pacific hybrid threat centre

Author:
Lesley Seebeck, Emily Williams, and Jacob Wallis
Publication Date:
06-2022
Content Type:
Policy Brief
Institution:
Australian Strategic Policy Institute (ASPI)
Abstract:
Enabled by digital technologies and fuelled by geopolitical competition, hybrid threats in the Indo-Pacific are increasing in breadth, application and intensity. Hybrid threats are a mix of military, non-military, covert and overt activities by state and non-state actors that occur below the line of conventional warfare. The consequences for individual nations include weakened institutions, disrupted social systems and economies, and greater vulnerability to coercion—especially from revisionist powers such as China. But the consequences of increased hybrid activity in the Indo-Pacific reach well beyond individual nations. The Indo-Pacific hosts a wide variety of political systems and interests, with multiple centres of influence, multiple points of tension and an increasingly belligerent authoritarian power. It lacks the regional institutions and practised behaviours to help ensure ongoing security and stability. And, because of its position as a critical centre of global economic and social dynamism, instability in the Indo-Pacific, whether through or triggered by hybrid threats, has global ramifications. Because hybrid threats fall outside the conventional frameworks of the application of state power and use non-traditional tools to achieve their effects, governments have often struggled to identify the activity, articulate the threat and formulate responses. Timeliness and specificity are problematic: hybrid threats evolve, are often embedded or hidden within normal business and operations, and may leverage or amplify other, more traditional forms of coercion. More often than not, hybrid threat activity is targeted towards the erosion of national capability and trust and the disruption of decision-making by governments—all of which reduce national and regional resilience that would improve security and stability in the region.
Topic:
Foreign Policy, Geopolitics, Strategic Competition, Hybrid Threats, and Regional Politics
Political Geography:
Australia and Indo-Pacific

353. 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

354. The geopolitics of climate and security in the Indo-Pacific

Author:
Robert Glasser, Anastasia Kapetas, and Cathy Johnstone
Publication Date:
02-2022
Content Type:
Special Report
Institution:
Australian Strategic Policy Institute (ASPI)
Abstract:
Climate change is much more than an environmental crisis—it’s a systemic crisis that will transform the geopolitical landscape. And the consequences for the Indo-Pacific, already the most exposed region in the world to climate hazards and home to the world’s fastest growing populations, economies and geopolitical rivalries, will be profound. In this volume, leading experts explore the impacts of this rapidly emerging climate threat on regional systems by interrogating a 1.5°C 2035 climate change scenario developed by the ASPI Climate and Security Policy Centre. The chapters here attempt to understand the unpredictable effects of climate change on the region’s already fragile human systems, from great-power competition and militaries, governance and politics, food and water insecurity, and ethnic separatism, to energy and trade systems, sovereign risk and digital disinformation. What emerges is a vivid demonstration of the dangers of underestimating the systemic connections between those factors, including how risks in one thematic area amplify risks in others, completely reshaping the regional security picture.
Topic:
Climate Change, National Security, Geopolitics, and Risk
Political Geography:
Indo-Pacific

355. 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

356. 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

357. 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

358. 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

359. 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

360. 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