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871. Country-Risk Rating of Overseas Investment from China (2018)

Author:
CROIC-IWEP
Publication Date:
01-2018
Content Type:
Working Paper
Abstract:
China's outbound direct investment hit a new high in 2016, reaching $196.15 billion, making the country the world's second-largest overseas investor. The volume of its outbound direct investment increased by 34.7% year-on-year in 2016 and accounted for 13.5% of the world's total — the first time it exceeded 10%. Since 2003, when the Ministry of Commerce joined hands with the National Bureau of Statistics and the State Administration of Foreign Exchange to start releasing authoritative investment data annually, China's outbound direct investment has kept increasing for 14 consecutive years. From 2002 to 2016, the annual average growth of its outbound direct investment reached 35.8%. In 2016, China's outbound direct investment once again exceeded the foreign direct investment it received, making it a net capital exporter for two consecutive years. Meanwhile, its outbound direct investment stock hit $1.35739 trillion at the end of 2016, the 6th largest in the world, two notches up compared with in 2015. In 2016, China had the most overseas M&A deals in history in terms of both number and value of M&A deals. In the future, China is expected to bring out more of its investment potentials and build a win-win cooperative relationship with other countries following its economic transition and upgrading, rising competitiveness of Chinese enterprises in overseas markets and steady advancement of the Belt and Road Initiative.
Topic:
Economics, Foreign Direct Investment, and Investment
Political Geography:
China and Asia

872. Connectivity Between Asia and Europe: ASEM Connectivity Inventory

Author:
Maaike Okano-Heijmans, Wouter Zweers, and Brigitte Dekker
Publication Date:
10-2018
Content Type:
Special Report
Institution:
Clingendael Netherlands Institute of International Relations
Abstract:
In preparation for the 12th ASEM Summit and for taking the ASEM connectivity task forward, the Economic Research Institute for ASEAN and East Asia (ERIA) and the Clingendael Institute prepared the 'ASEM Connectivity Inventory' for the Asia Europe Meeting Pathfinders Group on Connectivity (APGC). The Report contains enumerations and qualitative analysis of ASEM connectivity activities since 2014, and gives recommendations on structure, processes, and coordination in the ASEM connectivity mechanisms. The report was presented to the APGC and the senior officials meeting in September, 2018.
Topic:
Connectivity and ASEM
Political Geography:
Europe and Asia

873. A United Nations with Chinese characteristics?

Author:
Maaike Okano-Heijmans, Frans-Paul van der Putten, and Louise Van Schaik
Publication Date:
12-2018
Content Type:
Special Report
Institution:
Clingendael Netherlands Institute of International Relations
Abstract:
As China’s role as a major power in international affairs is growing, the Chinese government is becoming more active and more influential in the United Nations (UN). This is likely to have – or, in the eyes of some, already has – a significant impact on the UN’s (future) functioning. Growing Chinese influence is important for all UN members, and particularly so for Western countries, including the Netherlands, which strives to maintain and strengthen the international legal order as a principal foreign policy aim. This report by Maaike Okano-Heijmans and Frans-Paul van der Putten, with contributions from Etienne Béchard, Louise van Schaik and Vishwesh Sundar, aims to provide a better understanding of the process currently underway. It does so, first, by analysing how and in which direction China’s involvement in the UN is evolving. Next, the discussion turns to the question of how China’s growing involvement is relevant to the setting and the developing of norms and standards within the UN. Finally, the authors explore where European countries and China have common interests, and where their interests are conflicting through presenting three case studies in three thematic areas, namely human rights, development finance and climate change.
Topic:
Diplomacy, United Nations, and International Affairs
Political Geography:
China, Asia, and Netherlands

874. Domestic Constraints on South Korean Foreign Policy

Author:
Scott A. Snyder, Geun Lee, You Young Kim, and Jiyoon Kim
Publication Date:
01-2018
Content Type:
Working Paper
Institution:
Council on Foreign Relations
Abstract:
Despite becoming influential on the world scene, South Korea remains a relatively weak country surrounded by larger, more powerful neigh- bors. This contrast between its global rank as a top-twenty economy and its regional status as the weakest country in Northeast Asia (with the exception of North Korea) poses a paradox for South Korean for- eign policy strategists. Despite successes addressing nontraditional security challenges in areas such as international development, global health, and UN peacekeeping, South Korea is limited in its capacity to act on regional security threats. South Korea has historically been a victim of geopolitical rivalries among contenders for regional hegemony in East Asia. But the coun- try’s rise in influence provides a glimmer of hope that it can break from its historical role by using its expanded capabilities as leverage to shape its strategic environment. The pressing dilemma for South Korean strategic thinkers is how to do so. As the regional security environment becomes more tense, South Korea’s strategic options are characterized by constraint, given potentially conflicting great-power rivalries and Pyongyang’s efforts to pursue asymmetric nuclear or cyber capabilities at Seoul’s expense. South Korea’s relative weakness puts a premium on its ability to achieve the internal political unity necessary to maximize its influence in foreign policy. Students of Korean history will recall that domestic factionalism among political elites was a chronic factor that hamstrung Korea’s dynastic leadership and contributed to its weakness in dealing with outside forces.
Topic:
Foreign Policy, Diplomacy, International Cooperation, Regional Cooperation, and Military Strategy
Political Geography:
China, Asia, South Korea, and North Korea

875. Managing Global Disorder: Prospects for U.S.-China Cooperation

Author:
Council on Foreign Relations
Publication Date:
04-2018
Content Type:
Working Paper
Institution:
Council on Foreign Relations
Abstract:
Emerging challenges to international order require cooperation between the United States and China, two countries that share a common interest in preventing the world from becoming more dangerous and disorderly. U.S.-China relations are becoming more strained and antagonistic, however, and the prospects for cooperation appear to be receding. To explore whether there are still grounds for cooperation on issues of common concern between the two countries, in March 2018 the Center for Preventive Action (CPA) at the Council on Foreign Relations convened a group of fifteen experts from the United States and China for the workshop “Managing Global Disorder: Prospects for U.S.-China Cooperation.” CPA partnered with Peking University’s School of International Studies in Beijing for the workshop and also met with experts at the China Institutes of Contemporary International Relations in Beijing and the Shanghai Institutes for International Studies in Shanghai. During the workshop, President Donald J. Trump announced plans to impose about $60 billion in new tariffs on Chinese imports. While trade was a major topic of discussion, it was by no means the only area discussed. Workshop participants assessed conflicting views of the sources of global disorder and examined areas of global governance such as international trade, development, the environment, and the future of various multilateral institutions. They also discussed the most pressing security challenges in East and Southwest Asia. Participants highlighted the need for a greater understanding between the United States and China on the evolving international order. No major transnational problems will be solved without some cooperation between the two powers. It is therefore imperative that the two countries avoid a further deterioration of the relationship and instead identify areas of potential cooperation.
Topic:
International Cooperation, International Trade and Finance, Tariffs, and Social Order
Political Geography:
United States, China, Asia, and North America

876. The U.S.-Southeast Asia Relationship: Responding to China’s Rise

Author:
Council on Foreign Relations
Publication Date:
05-2018
Content Type:
Working Paper
Institution:
Council on Foreign Relations
Abstract:
Although the Barack Obama administration rhetorically made Southeast Asia a centerpiece of its “rebalance to Asia” strategy, the administration still largely focused on the Middle East and Europe, and Southeast Asia remained a low U.S. policy priority. The Obama administration did try to boost U.S. economic ties with Southeast Asia in 2016 by forging the Trans-Pacific Partnership (TPP), but that trade deal was broadly unpopular in the United States. The following year, the Donald J. Trump administration ended U.S. participation in the TPP, and it also suggested launching punitive economic measures against Southeast Asian states currently running trade surpluses with the United States. Many Southeast Asian leaders now worry that Washington has no clear security or economic strategy for the region, other than applying pressure on Beijing to respect freedom of navigation in the South China Sea. In this perceived void of U.S. leadership and strategy, workshop participants assessed how Southeast Asia might change as China becomes an increasingly dominant regional security and economic actor. They also discussed the future of U.S. strategic and economic relationships with important partners in the region, including Indonesia, the Philippines, Singapore, Thailand, and Vietnam. Participants further considered how China might use its growing leverage in Southeast Asia, and whether Beijing’s tactics could backfire. Finally, several workshop participants posited that the United States, China, and Southeast Asian states could cooperate on at least some nontraditional security issues, such as combating piracy and terrorism.
Topic:
Diplomacy, International Cooperation, International Trade and Finance, and Economic Cooperation
Political Geography:
United States, China, Asia, and Southeast Asia

877. Russia-India relations: Long-term obstacles remain despite sectoral achievements

Author:
Marcin Kaczmarski
Publication Date:
10-2018
Content Type:
Working Paper
Institution:
Finnish Institute of International Affairs
Abstract:
Despite concrete achievements in energy and military-technical cooperation, long-term trends, such as Russia’s growing dependence on China, India’s tilt towards the US, and tense Sino-Indian relations are not conducive to closer strategic cooperation between Moscow and New Delhi.
Topic:
Foreign Policy, Diplomacy, Energy Policy, and International Cooperation
Political Geography:
Russia, China, Europe, India, and Asia

878. Turkey’s presidential system and the Kurds: Increased resentment, fragmentation, or deal-making?

Author:
Toni Alaranta
Publication Date:
11-2018
Content Type:
Working Paper
Institution:
Finnish Institute of International Affairs
Abstract:
The Kurds are an ethnic group of approximately 35 million people, half of whom live inside the Republic of Turkey, where the conflict between the state and the Kurdish separatist PKK organization has now lasted for over three decades. After a promising peace process in 2009–2015, the AKP government under President Recep Tayyip Erdoğan has now reduced Turkey’s Kurdish question to anti-terror operations, and marginalized the legal Kurdish HDP party, echoing the failed policy of the 1990s. Turkey is now a presidential system where power is tightly concentrated in the hands of President Erdoğan, a development directly opposed to Kurdish demands for greater local autonomy in the Kurdish-majority districts. Through the PKK network and transnational Kurdish sympathies, the fate of Syria’s and Turkey’s Kurds is now inextricably intertwined. The current way of building the new regime in Turkey is likely to produce more PKK attacks, but also widespread resentment among ordinary Kurds, including those opposing the PKK.
Topic:
Authoritarianism, Ethnicity, Separatism, and transnationalism
Political Geography:
Europe, Turkey, Asia, and Kurdistan

879. Europe’s connectivity strategy and the challenge of China: Rivalry, reciprocity, or both?

Author:
Bart Gaens
Publication Date:
12-2018
Content Type:
Working Paper
Institution:
Finnish Institute of International Affairs
Abstract:
The EU’s new strategy for connecting Europe and Asia, implicitly a response to China’s Belt and Road Initiative, is an important first step in promoting European priorities in terms of connectivity. However, uncertainties, including those surrounding the financial implications, remain.
Topic:
Foreign Policy, Diplomacy, Regional Cooperation, and European Union
Political Geography:
China, Europe, and Asia

880. The Sino-Russian and US-Russian relationships: Current developments and future trends

Author:
Marcin Kaczmarski, Mark Katz, and Teija Tiilikainen
Publication Date:
12-2018
Content Type:
Working Paper
Institution:
Finnish Institute of International Affairs
Abstract:
The great-power system has been in constant change since the end of the Cold War. The US became the hegemonic power, and under its shelter, the European Union was able to transform into a European-wide political body. Soon, a group of leading regional powers started to question the universalist aspirations of the Western-led international order. Two members of this club in particular were not satisfied with the role of a regional hegemon and had more global ambitions. China has already become the largest trading nation globally, and Chinese foreign policy has assumed an assertive tone. China has both the potential to challenge US hegemony, as well as the political will to use it. Russia’s project to achieve a global great-power status, on the other hand, is inspired by its historical identity and its alleged humiliation by the West after the collapse of the Soviet Union. Russia longs for recognition of its great-power status in particular from the US. This report focuses on relations between China and Russia on the one hand and the US and Russia on the other. It analyses the current developments and future trends in these relationships, as well as their implications for the EU.
Topic:
Foreign Policy, International Cooperation, International Trade and Finance, and Hegemony
Political Geography:
Russia, United States, China, Europe, Asia, and North America