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211. Beyond Target: Indirect Impacts of Antidumping

Author:
Sébastien Jean and Kevin Lefebvre
Publication Date:
07-2024
Content Type:
Working Paper
Institution:
Centre d'Etudes Prospectives et d'Informations Internationales (CEPII)
Abstract:
This paper investigates the bilateral impacts of antidumping measures, beyond directly targeted products and exporting firms. It focuses on the country whose exports are most exposed to such measures, China. Productlevel analysis shows that export volumes are negatively affected for products similar to a product targeted by an antidumping case, i.e. belonging to the same tariff heading. Using firm-level data, we show that this impact is driven by within-firm contagion: targeted firms not only cut their exports of targeted products, they also reduce significantly their exports of non-targeted products. The decrease is half as large for the latter than for the former, but the total impact on bilateral trade is far larger, because the value of export flows affected by these indirect impacts is ten times larger than the value of directly targeted export flows. In addition, interestingly, this effect is more pronounced for small and private firms.
Topic:
Business, Exports, Trade, Spillovers, and Antidumping
Political Geography:
China and Asia

212. ‘Self-Revolution’ Suggests Stronger CCDI Mandate

Author:
Arran Hope
Publication Date:
01-2024
Content Type:
Journal Article
Journal:
China Brief
Institution:
The Jamestown Foundation
Abstract:
Xi Jinping addressed the perennial dilemma of corruption within the CCP, pronouncing “victory” in a decade of anti-corruption efforts but simultaneously warning that the situation remains “grim and complex.” In the short term, anti-corruption crackdowns are expected to continue, with Xi targeting sectors with concentrated power, capital-intensive industries, and resource-rich areas. The military, particularly the Strategic Support Force, might face increased scrutiny. The third plenary session of the Central Commission for Discipline Inspection (CCDI) of the twentieth party congress took place on January 8, emphasizing “courage in [performing] self-revolution” as a distinctive character and advantage of the Chinese Communist Party (CCP).
Topic:
Corruption, Political Parties, Xi Jinping, and Chinese Communist Party (CCP)
Political Geography:
China and Asia

213. State Goals, Private Tools: Digital Sovereignty and Surveillance Along the Belt and Road

Author:
Che Chang, Lian Huang, and Athena Tong
Publication Date:
12-2024
Content Type:
Journal Article
Journal:
China Brief
Institution:
The Jamestown Foundation
Abstract:
Beijing promotes digital sovereignty in its engagements with other countries but with the caveat that it can maintain access to partner countries’ digital systems. Leaked documents from cyber contracting firm iS00N indicate a focus on One Belt One Road partner countries, targeting critical systems, including telecoms, government ministries, and financial institutions. A new paradigm of using nominally private firms allows Beijing to put distance between its inclusive rhetoric of “win-win cooperation” while companies hack partner countries’ infrastructure at the direction of its security services.
Topic:
Cybersecurity, Surveillance, Belt and Road Initiative (BRI), and Digital Sovereignty
Political Geography:
China and Asia

214. The Shapeshifting Evolution of Chinese Technology Acquisition

Author:
Matthew Brazil
Publication Date:
12-2024
Content Type:
Journal Article
Journal:
China Brief
Institution:
The Jamestown Foundation
Abstract:
Smuggling, a critical tool of the Chinese Communist Party (CCP) to acquire technology to enhance its defense industrial base, is reemerging in the wake of the US Government’s technology controls. Diversion—falsifying the end-user—is another common tactic that the Party has successfully used to acquire critical technology, including dual-use items that it would have been otherwise unable to obtain. Talent attraction is an underrated part of technology acquisition that the CCP has promoted in academia as well as in the corporate sector to help advance its technology ambitions. Foreign businesses have been willing to engage in technology transfer in return for potential access to the PRC market. This tradeoff frequently has not paid off for these firms.
Topic:
Science and Technology, Trade, Smuggling, and Defense Industry
Political Geography:
China and Asia

215. The Power Vertical: Centralization in the PRC’s State Security System

Author:
Edward Schwarck
Publication Date:
11-2024
Content Type:
Journal Article
Journal:
China Brief
Institution:
The Jamestown Foundation
Abstract:
Centralizing reforms to the Ministry of State Security probably constitute the most important development in China’s civilian intelligence system since its establishment in 1983. These reforms instituted “vertical leadership,” under which the MSS is empowered to control local bureaus’ personnel affairs, budgets, and oversight. Structural changes that began in 2016–2017 mean that local state security bureaus are no longer subject to the authority of local party committees, and so are freer to impose a security-first agenda on other government agencies, leading to a more oppressive political environment. The ministry is now better able to direct joint operations between bureaus, exploit pockets of regional expertise, and ensure that local activities serve the strategic intelligence and security requirements of the central government. The reforms are part of Xi Jinping’s broader efforts to ensure that the “party center has supreme authority over state security.” The state security system’s further empowerment suggests it is likely to remain a powerful and durable interest group in PRC politics beyond the Xi era.
Topic:
Security, Intelligence, Chinese Communist Party (CCP), and Centralization
Political Geography:
China and Asia

216. The Art of War: PRC Weaponizes Culture to Galvanize the People

Author:
Arran Hope
Publication Date:
11-2024
Content Type:
Journal Article
Journal:
China Brief
Institution:
The Jamestown Foundation
Abstract:
The Party sees culture as a tool to achieve its strategic ambitions both inside and outside the People’s Republic of China (PRC). Speeches, articles, and conferences portray it as central to achieving national rejuvenation. Party discourse on culture is shot through with militaristic terminology. Not just echoing Mao-era rhetoric, this reflects Beijing’s desire to “engineer souls” in pursuit of a strong nation. Artists, culture workers, and academics are perceived as pawns in a project to present the PRC globally as peaceful and prosperous, but the Party is aware of the deficiencies of its soft power.
Topic:
Arts, Culture, Soft Power, Academia, and Chinese Communist Party (CCP)
Political Geography:
China and Asia

217. Xi Jinping’s Quantitative Easing Unlikely to Save Economy

Author:
Willy Wo-Lap Lam
Publication Date:
10-2024
Content Type:
Journal Article
Journal:
China Brief
Institution:
The Jamestown Foundation
Abstract:
In an apparent U-turn, the People’s Republic of China (PRC) has initiated stimulus policies that have boosted the stock market and are attempting to jump-start key sectors and meet the annual GDP growth target of 5 percent. In the last week of September, the central bank announced a package worth at least 2 trillion Renminbi (RMB; $280 billion), cut the banks’ reserve requirement ratio by 50 basis points, and hinted at further measures. The domestic and international response has been underwhelming, in part because the package leaves the economy even more overleveraged than before. President Xi Jinping’s attempts to enhance the PRC’s global stature, including through a recent ICBM test and by deepening support for Russia’s war in Ukraine and for other countries willing to denounce the United States and the West, will not help the domestic economic woes as they discourage foreign investment.
Topic:
Monetary Policy, Economy, Economic Growth, Investment, and Quantitative Easing
Political Geography:
China and Asia

218. Understanding the PRC’s Selective Use of Military Hotlines

Author:
Augusto Leal Rinaldi
Publication Date:
10-2024
Content Type:
Journal Article
Journal:
China Brief
Institution:
The Jamestown Foundation
Abstract:
The PRC’s strategic use of and reluctance to establish military hotlines reflect a calculated approach to escalation risk, which can be seen in crises ranging from the accidental bombing of its embassy in Belgrade in 1999 to the present day. There is a recognition that hotlines offer tactical benefits, but they are not viewed as a solution to the broader challenges in US-PRC relations. The PRC is largely skeptical of military hotlines, believing that they lack utility and could potentially undermine its national security. Defense scholars fear that the existence of a mechanism to de-escalate crises could embolden adversaries to take more risks, and doubt that hotlines can help mitigate long-term mistrust in bilateral relations. Beijing also perceived some benefits of military hotlines. These include enhancing safety and crisis management, enabling the political signaling of intentions, and improving the PRC’s reputation as a responsible power, as well as allowing it to control narratives and influence other states’ actions.
Topic:
Bilateral Relations, Military Affairs, Crisis Management, and Deescalation
Political Geography:
China and Asia

219. Beijing’s Soft Power Push with African Nations

Author:
Arran Hope
Publication Date:
09-2024
Content Type:
Journal Article
Journal:
China Brief
Institution:
The Jamestown Foundation
Abstract:
The People’s Republic of China (PRC) has successfully used its hosting of the Forum on China-Africa Cooperation to burnish its soft power and its credentials to be seen as the leader of the Global South. Close political alignment on core issues, including African states affirming support for the PRC’s positions on Hong Kong, Xinjiang, Tibet, and unification with Taiwan are indicative of the PRC’s diplomatic gains. Politics was central to the event, with the promotion of exchanges and cooperation announced between the Chinese Communist Party (CCP) and African political parties, between the PRC’s Supreme People’s Court and the Court of Justice of the African Union, and between the Chinese People’s Political Consultative Conference (CPPCC) and regional organizations, alongside numerous training programs in various domains. Africa joined a “community of common destiny,” which entails a rejection of the Western approach to modernization. The West in general and the United States explicitly were heavily criticized throughout the forum.The People’s Republic of China (PRC) has successfully used its hosting of the Forum on China-Africa Cooperation to burnish its soft power and its credentials to be seen as the leader of the Global South. Close political alignment on core issues, including African states affirming support for the PRC’s positions on Hong Kong, Xinjiang, Tibet, and unification with Taiwan are indicative of the PRC’s diplomatic gains. Politics was central to the event, with the promotion of exchanges and cooperation announced between the Chinese Communist Party (CCP) and African political parties, between the PRC’s Supreme People’s Court and the Court of Justice of the African Union, and between the Chinese People’s Political Consultative Conference (CPPCC) and regional organizations, alongside numerous training programs in various domains. Africa joined a “community of common destiny,” which entails a rejection of the Western approach to modernization. The West in general and the United States explicitly were heavily criticized throughout the forum.
Topic:
Foreign Policy, Diplomacy, Global South, Soft Power, and Chinese Communist Party (CCP)
Political Geography:
Africa, China, and Asia

220. Kubernetes: A Dilemma in the Geopolitical Tech Race

Author:
Sunny Cheung
Publication Date:
09-2024
Content Type:
Journal Article
Journal:
China Brief
Institution:
The Jamestown Foundation
Abstract:
US-sanctioned Huawei has significant influence in the Cloud Native Computing Foundation and its open-source platform Kubernetes, which underpins US military platforms, including F-16 fighter jets and nuclear infrastructure. The use of open-source technologies in critical systems raises concerns. Despite US efforts to mitigate risks, Kubernetes remains tempting to exploit for attackers. Open source fosters global innovation, from which the United States benefits. But this same openness also strengthens US competitors. The United States should therefore develop a clear framework to understand and mitigate the challenges posed by open source.
Topic:
Science and Technology, Sanctions, Geopolitics, Innovation, Strategic Competition, and Huawei
Political Geography:
China, Asia, and United States of America