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51. A golden opportunity for a US-Taiwan free trade agreement

Author:
Dan Blumenthal and Michael Mazza
Publication Date:
02-2019
Content Type:
Special Report
Institution:
American Enterprise Institute for Public Policy Research
Abstract:
The United States and Taiwan can create a free trade agreement (FTA) that serves the interests of both sides. Taiwan should seek to set the gold standard in economic openness, as well as in the legal, regulatory, and standards frameworks that will govern emerging technologies and industries such as 5G, the internet of things (IOT), artificial intelligence (AI), and the future industries to be built upon them. In pursuit of the United States’ vision for a “free and open” Indo-Pacific, it would be wise for the US to enlist in its effort countries that are, themselves, already free and open. Taiwan should be considered a crucial partner in the Trump administration’s strategy. This monograph serves to provide a framework for a US-Taiwan free trade agreement (FTA), outlining areas of concern for the United States, in addition to areas that provide opportunities for closer bilateral cooperation. Importantly, such cooperation could give greater impetus for free trade negotiations, advance the Trump administration’s Indo-Pacific strategy, and bolster the United States’ National Security Strategy. In order to deepen economic ties and to, at the same time, advance the Indo-Pacific strategy, the United States should prioritize a free trade agreement (FTA) with Taiwan. The US has not completed or ratified a free trade agreement since the U.S.-Korea deal. It is now negotiating with Japan and the Philippines. But, as this paper will show, an FTA with Taiwan would have substantial strategic benefits and would, moreover, be far easier to conclude than other agreements under discussion.
Topic:
Foreign Policy, Bilateral Relations, Free Trade, and Trade
Political Geography:
Taiwan, Asia, North America, and United States of America

52. The US-China economic relationship: A comprehensive approach

Author:
Neena Shenai and Joshua P. Meltzer
Publication Date:
02-2019
Content Type:
Special Report
Institution:
American Enterprise Institute for Public Policy Research
Abstract:
The US–China economic relationship has reached a critical juncture. Over the past year, the US has imposed tariffs on $250 billion worth of Chinese imports and China has retaliated, raising tariffs on a similar amount of US exports. At the G-20 leaders’ summit in November 2018, Presidents Trump and Xi agreed to resolve the trade dispute within 90 days—by March 1, 2019, though this deadline has been recently extended. The US concerns that underpin these bilateral trade tensions stem from specific practices endemic to China’s economic model that systematically tilt the playing field in favor of Chinese companies domestically and globally. Progress on specific trade issues will require China to comply with its World Trade Organization (WTO) commitments and to make certain reforms that will likely touch on areas of state control over the economy. In addition, new trade rules are needed to address China’s economic practices not covered by its WTO commitments, including in areas such as state-owned enterprises (SOEs), certain subsidies, and digital trade. These issues also come at a time of increasing US concern over the national security risks China presents, particularly with respect to technology access. All of these matters underscore the complexity of US-China bilateral negotiations as well as the stakes at play. Resolving US-China differences in a meaningful way will take time. This policy brief assesses the state of the US-China trade relationship by first looking at the economic impact on the US The policy brief then looks at why the Chinese economic model is so concerning. Despite the challenges the US has had at the WTO, the policy brief argues that the WTO should be central to resolving US-China trade tensions. We outline a multi-prong strategy, including bilateral, multilateral, and unilateral actions as well as working with allies that together would constitute positive next steps for this critical economic relationship. In taking this multifaceted approach, the US needs to stay true to its values and not accept short-term gains or “fig leaf” deals. In particular, creating a managed trade relationship with China would not be a constructive outcome. Instead, the US should work with China to agree on long term solutions. The resulting deal should address the real issues at hand in a free market manner and strengthen the multilateral global trading system and rule of law that the US has championed in the post-World War II era.
Topic:
Foreign Policy, Globalization, Bilateral Relations, and Trade
Political Geography:
China, Asia, North America, and United States of America

53. Insights into China’s Developing Country Status

Author:
Tao Ma
Publication Date:
10-2019
Content Type:
Working Paper
Abstract:
As the international status of China as a rising power has been growing rapidly in the past 40 years, along with remarkable achievements in economic growth, China’s developing country status has been questioned by some Western developed countries. In January 2019, the US submitted to the WTO General Council the proposal An Undifferentiated WTO: Self-Declared Development Status Risks Institutional Irrelevance (WT/GC/W/757), presenting data arguing that China and some other developing countries had advanced to such an extent that they should be limited from being eligible for special and differential treatment and should give up their developing country status. During the WTO General Council meeting at the end of February, China and other developing countries hotly debated this issue with the US. China insisted that developing countries were confronted with mounting external tensions and their legitimate rights and interests in some international organizations and agreements had been constantly challenged. Against this background, it is critical to clarify China’s ongoing status as a developing country. Only after the real divide between China and developed countries has been clarified can China’s status as a developing country be secured.
Topic:
Development, Economics, and Trade
Political Geography:
China, Asia, and United States of America

54. Expo promotes high-quality development

Author:
Dong Yan and Wen Jun
Publication Date:
11-2019
Content Type:
Policy Brief
Abstract:
China will promote higher-level opening-up by continuing to expand access to its market, increase imports, foster a world-class business environment, deepen multilateral and bilateral cooperation and jointly build the Belt and Road Initiative. This is the promise President Xi Jinping made in his keynote speech at the second China International Import Expo in Shanghai on Tuesday. ...... China's imports have made important contributions to global trade and economic growth, accounting for 10.67 percent of the global goods imports last year. At the second CIIE, which concludes on Sunday, more than 150 countries, regions and international organizations from across five continents are showcasing their development results while more than 3,000 enterprises are holding talks with purchasing agents both inside and outside China. The CIIE is a platform for not only trading goods and services, but also exchanging ideas and discussing global trade issues.
Topic:
Development, International Trade and Finance, Business, Trade, and Imports
Political Geography:
China and Asia

55. More than meets the eye in ROK ceding developing economy status

Author:
Dong Yan and Ma Tao
Publication Date:
11-2019
Content Type:
Policy Brief
Abstract:
A large number of farmers in the Republic of Korea took to the streets of Seoul on Wednesday, protesting the government's recent decision to give up its developing country status at the World Trade Organization in future trade negotiations and thus lose the benefits accruing out of it. The protesters were worried that the decision would eventually lead to a drastic cut in state agriculture subsidies and tariffs. …… Given that countries could experience uneven development, gaining undue advantages in some areas while being weak in others, the WTO has prevented some developing countries from enjoying some of the special and differential treatments in certain fields. For instance, it has restricted the ROK and India from using measures to promote balance of payment. Besides, the Agreement on Trade-Related Aspects of Intellectual Property Rights, revised in 2003, allows countries that lack production capability to import nonproprietary medicines, which is opposed by the developed countries－and 11 countries including China, the ROK, Mexico and Turkey have agreed to implement the agreement only in emergencies.
Topic:
International Trade and Finance, Treaties and Agreements, World Trade Organization, and Trade
Political Geography:
China, India, Asia, and Korea

56. Tariffs will ultimately harm US economy

Author:
Dong Yan and Zang Chengwei
Publication Date:
07-2019
Content Type:
Policy Brief
Abstract:
That Vice-Premier Liu He talked with US Trade Representative Robert Lighthizer and US Treasury Secretary Steven Mnuchin on the phone on Monday raises hope that China and the United States would resume the bilateral trade negotiations.
Topic:
Bilateral Relations, Economy, Tariffs, Trade Wars, and Trade
Political Geography:
China, Asia, North America, and United States of America

57. Fair competition put into practice

Author:
Lu Tong
Publication Date:
05-2019
Content Type:
Policy Brief
Abstract:
This year's Government Work Report sent an important signal to the global community that China aims to create a fair market environment based on competitive neutrality. Competitive neutrality is a set of public policies for regulating domestic market order. It means that State‐owned enterprises and private businesses compete on a level playing field and that SOEs should not obtain an unfair competitive advantage to the detriment of free trade in such areas as tax, subsidies, debt, supervision and market entrance.
Topic:
Markets, Business, Trade, and Strategic Competition
Political Geography:
China and Asia

58. Trade trends show China should take the opportunity to diversify its market

Author:
Dong Yan, Ma Yingying, and Xu Tingting
Publication Date:
05-2019
Content Type:
Policy Brief
Abstract:
The China-US trade row has been drawing a lot of attention. A detailed review of the bilateral trade situation between China and the US from January through April is a good reference for the future trend. Also, as uncertainties loomed amid tariff hikes, some related US industries were afflicted, such as plants, minerals and precious metal in the first quarter.
Topic:
Markets, Tariffs, Trade Wars, Diversification, and Trade
Political Geography:
China, Asia, North America, and United States of America

59. Opinion: What Is China’s Core Economic Interest in Trade War?

Author:
Qiyuan Xu
Publication Date:
02-2019
Content Type:
Policy Brief
Abstract:
The trade conflict between China and the U.S. has lasted for more than half a year. The two sides have held several rounds of consultations, but agreements were later broken and tensions have only intensified. The spat will likely be protracted, with frictions to continue and possibly escalate for a period of time, given the two countries’ diverging interests, public opinions and historical experiences. A broad range of issues are involved in the trade dispute. For example, the U.S. has pressured China on forced technology transfer, talent strategy and industrial policy issues, as well as issues the two sides have long been at odds over, such as intellectual property rights, labor, environmental protection, stateowned enterprise reform and foreign exchange rates. Meanwhile, the U.S. has targeted products and sectors that go well beyond those in which China has a competitive advantage. The U.S. tariffs also target industries that the country plans to focus on for future development.
Topic:
Development, Tariffs, Trade Wars, Trade, and Strategic Competition
Political Geography:
China, Asia, North America, and United States of America

60. Assessing China’s Influence in Europe through Investments in Technology and Infrastructure. Four Cases.

Author:
Frans-Paul van der Putten
Publication Date:
01-2019
Content Type:
Policy Brief
Institution:
Clingendael Netherlands Institute of International Relations
Abstract:
China’s role as a global investor and financier has grown rapidly in recent decades, nowhere more so than in Europe. In 2017, a full quarter of China’s outbound foreign direct investment was destined for Europe. China has stepped up promotion of its signature Belt and Road Initiative (BRI), with Europe as its final destination, ever greater flows of investment in Eurasian connectivity are on offer. However, in recent years scepticism about rising flows of Chinese investment into the EU has grown. This report aims to carefully scrutinize the linkage between Chinese investment in Europe and China’s influence in the region and provides a nuanced and careful analysis that goes beyond the alarmism and polarization that dominates so much of the recent discussion about China’s role in Europe. It is based on a series of case studies examining a Chinese port investment in Greece, a Chinese-financed rail project in Hungary and Serbia, and two Chinese acquisition deals in the Netherlands. Thus, the authors shed light on the motives behind these individual Chinese investments and financial packages, including the interests of both the Chinese and the host governments and firms involved, evaluating what, if any, Chinese “influence” can be linked to the deals. According to the findings, the specific terms of each investment or loan package are dependent on the individual circumstances of the countries and firms involved. In each case there is an identifiable commercial basis for the Chinese investment, but economic and political viability of each deal varies.
Topic:
Globalization, Investment, and Trade
Political Geography:
China, Europe, and Asia