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101. The Declining Hegemony of the United States and the Growing Influence of China: A Critical Perspective on Power Transition Transition Theory in the 21st Century

Author:
Nasa'i Muhammad Gwadabe
Publication Date:
07-2020
Content Type:
Journal Article
Journal:
AUSTRAL: Brazilian Journal of Strategy International Relations
Institution:
Postgraduate Program in International Strategic Studies, Universidade Federal do Rio Grande do Sul
Abstract:
The apparent eroding in the hegemonic power of the United States and the sustained growth of China has triggered debate as to whether the rise of China will be peaceful or conflictual. Structural realism posits that the world is characterised by the anarchic ordering principle in which there is no central authority sitting above the states. Therefore, the absence of a “leviathan” on the international system automatically makes every state equal on the system which created an atmosphere of competition for the maximisation of power for survival. On a similar line of reasoning, the Power Transition theory as a variant theory within realism postulates that when the international system is structured based on the principle of hierarchy, peace will reign. It means that when international relations are regulated and influenced by a dominant power, the international system becomes stable. But the emergence of a dissatisfied powerful nation to challenge the hegemon usually ends up in war. Based on this assumption, Power Transition theorists argued that the rise of China to rival the dominance of the United States could not be peaceful. The Power Transition theory has influenced many academics to have the belief that the two nations will end up in “Thucydides’ Trap”. This belief has aggravated the matter beyond the reasonable level and has instilled panic in the mind of foreign policymakers which could jeopardise world peace and international cooperation. Hence, this paper aims to critically evaluate the deficiency of the Power Transition theory in the 21st century in explaining the current United States-China relations and the prospect of peace or war between the two nations using process tracing. Accordingly, in this paper, it is argued that in the 21st century, an armed confrontation between the United States and China is highly unlikely. Because in today’s world, nations (including the United States and China) are intertwined by the forces of globalisation which created inexorable economic interdependence. Additionally, there is rapid advancement in military technology and the proliferation of weapons of mass destruction which came with the concept of Mutually Assured Destruction (MAD). Consequently, there is a need to revisit the Power Transition theory to accommodate contemporary factors. The inclusion of the current variables into the Theory will make it applicable and adequately fit in the discourse of international relations and global politics of the 21st-century international system.
Topic:
Globalization, Military Strategy, Hegemony, and Conflict
Political Geography:
China, Asia, North America, and United States of America

102. The Future of Chinese Foreign Economic Policy Will Challenge U.S. Interests, Part 1: The Belt-and-Road Initiative and the Middle Income Trap

Author:
Sagatom Saha
Publication Date:
01-2020
Content Type:
Journal Article
Journal:
China Brief
Institution:
The Jamestown Foundation
Abstract:
Chinese Communist Party (CCP) General Secretary Xi Jinping and other senior CCP leaders have prudently planned for the slowing economic growth that China now faces. CCP officials plan to transition China from its current export-led growth model to one driven by indigenous innovation, and one in which China’s rising global prominence confers to it many of the same advantages traditionally enjoyed by the United States (such as low borrowing costs and influence within international institutions). Although U.S.-China relations have become further fraught amid the trade war, many prominent China hands nevertheless assert that Beijing’s long-term economic plans do not run counter to U.S. strategic interests. [1] However, many of China’s planned foreign economic initiatives—to include the Belt and Road Initiative (BRI), global value chain advancement, and renminbi (RMB) internationalization—will come at U.S. expense. Policymakers in both Washington and Beijing should accordingly expect U.S.-China tensions to persist beyond the Trump administration. China’s need for new growth vehicles is twofold: its economic size has not translated into global influence, and its current economic model is losing steam. First, China’s transformation into the world’s second-largest economy has yet to yield equivalent influence in the international system. Beijing’s sway in the World Bank and the International Monetary Fund (IMF), for example, lag behind China’s status as the largest trade partner and foreign investor for much of the world. The United States, by contrast, has leveraged its economic status to maintain effective control of the Bretton-Woods institutions, to obtain low borrowing costs, and to exercise punishing sanctions programs against unfriendly governments. Second, Chinese growth has seen a secular decline over the last decade (see figure 1). The official projected GDP growth rate for 2020 is 6.1 percent (Xinhua, November 30, 2019), but some Chinese officials have hinted that they expect lower sub-6 percent growth in 2020 (South China Morning Post, November 14, 2019). This is a noteworthy signal, for CCP discourse has previously identified the benchmark of 6 percent GDP growth as necessary to avoid social unrest (China Brief, March 22, 2019).
Topic:
Foreign Policy, Economics, International Cooperation, International Trade and Finance, Hegemony, Conflict, and Rivalry
Political Geography:
China, Middle East, Asia, North America, and United States of America

103. The Future of Chinese Foreign Economic Policy Will Challenge U.S. Interests, Part 2: Renminbi Internationalization and International Economic Institutions

Author:
Sagatom Saha
Publication Date:
02-2020
Content Type:
Journal Article
Journal:
China Brief
Institution:
The Jamestown Foundation
Abstract:
Complications surrounding the Belt and Road Initiative (BRI), and the dangers of the “middle-income trap,” are not the only factors impacting the international economic policies of the People’s Republic of China (PRC). Furthermore, poor capital efficiency is not the only feature of the Chinese economy that frustrates the country’s policymakers. China’s gross domestic product (GDP) has roughly doubled in the last decade, but Beijing’s pull in the international monetary and financial system remains lackluster. This lack of progress stems in part from the dollar’s centrality around the world, as well as U.S. dominance in international economic institutions. Beijing’s economic planners have long advocated against the dollar while attempting to increase the global role of the PRC’s own renminbi (RMB) currency. While past efforts stumbled, RMB internationalization and increased Chinese influence will directly confront U.S. economic and geopolitical interests.
Topic:
Economics, International Cooperation, International Trade and Finance, Hegemony, Conflict, and Rivalry
Political Geography:
China, Asia, North America, and United States of America

104. The PRC’s Cautious Stance on the U.S. Indo-Pacific Strategy

Author:
Yamazaki Amane
Publication Date:
02-2020
Content Type:
Journal Article
Journal:
China Brief
Institution:
The Jamestown Foundation
Abstract:
In June 2019, the U.S. Department of Defense issued a major new policy document, the Indo-Pacific Strategy Report, which asserted that “Inter-state strategic competition, defined by geopolitical rivalry between free and repressive world order visions, is the primary concern for U.S. national security.” The document was clear as to which country it identified as the greatest source of strategic concern: “In particular, the People’s Republic of China, under the leadership of the Chinese Communist Party, seeks to reorder the region to its advantage by leveraging military modernization, influence operations, and predatory economics to coerce other nations.” [1] This was followed by the U.S. State Department document A Free and Open Indo-Pacific: Advancing a Shared Vision, issued in November 2019. This document stated that “Authoritarian revisionist powers seek to advance their parochial interests at others’ expense,” and that therefore “the United States is strengthening and deepening partnerships with countries that share our values.” [2] In using such language, the United States is not alone. Japanese Prime Minister (PM) Abe Shinzo has advocated Japan’s own “Free and Open Indo-Pacific Strategy,” which he has discussed since 2016. This concept emphasizes economic development assistance and infrastructure construction, promotion of the rule of law, and freedom of trade. It particularly emphasizes maritime security and freedom of navigation—which connect directly to the territorial disputes that are a key point of ongoing contention between Japan and China. [3] The U.S. and its allies have advanced their cooperation on this new “Indo-Pacific Strategy” quietly but steadily: in one notable example, on February 4, the U.S. Department of the Treasury and its Japanese counterpart signed the “Memorandum of Cooperation [MOC] on Strengthening Energy and Infrastructure Finance and Market Building.” Brent McIntosh, Under Secretary for International Affairs in the U.S. Department of the Treasury, noted that the MOC is “a testament to our shared commitment to advancing a free and open Indo-Pacific” (U.S. Department of the Treasury, February 4, 2020). Given that several regional governments—including the United States, Japan, Australia, and India (the so-called “QUAD” group), as well as the Association of Southeast Asian Nations (ASEAN)—have incorporated the term “Indo-Pacific” as a part of their official strategy or policy, the significance of this broad concept will continue to increase in the foreseeable future. Meanwhile, China’s reaction to the Indo-Pacific Strategy has been restrained so far, although it is certain that Beijing is closely monitoring it. This article considers the narrative on Indo-Pacific-related affairs in the People’s Republic of China (PRC), by focusing primarily on how officials of the Chinese Ministry of Foreign Affairs (MFA) have dealt with the concept, as well as how cooperation among regional states has developed since the latter part of 2017.
Topic:
Defense Policy, Military Strategy, Hegemony, Conflict, and Strategic Interests
Political Geography:
China, Asia, North America, United States of America, and Indo-Pacific

105. Global Supply Chains, Economic Decoupling, and U.S.-China Relations, Part 1: The View from the United States

Author:
Sagatom Saha and Ashley Feng
Publication Date:
04-2020
Content Type:
Journal Article
Journal:
China Brief
Institution:
The Jamestown Foundation
Abstract:
The trade war has defined the current adversarial relationship between the United States and the People’s Republic of China (PRC). While President Donald J. Trump has at times openly expressed admiration for Chinese Communist Party (CCP) General Secretary Xi Jinping, his administration has pursued policies consistent with economic and technological decoupling. These policies include reforms that strengthen the Committee on Foreign Investment in the United States (CFIUS); greater usage of the export control system, especially the Entity List; and threatening the use of the International Emergency Economic Powers Act (IEEPA) to force U.S. companies back to the United States. These policies, taken to their logical end, would see the secular decoupling of the U.S. and Chinese economies and the rerouting of the global supply chains that bind them. The interim trade deal has done seemingly little to change the structural economic conflict between Beijing and Washington. If economic decoupling came to pass, it would portend a sweeping reorientation of the global economy that many analysts regard as lying outside the bounds of conventional analysis. Yet some Trump administration officials, such as Director of Trade and Manufacturing Policy Peter Navarro, have promoted economic decoupling as their desired aim (SCMP, June 20, 2018; Forbes, December 3, 2019). President Trump himself has “ordered” American companies to look for alternative suppliers outside of China, or to return production to the United States (Twitter, August 23, 2019). The Trump Administration’s trade and investment restrictions have not been limited to U.S. companies—they also include pressuring third-party countries and foreign companies to abide by U.S. restrictions. Chinese companies are also relocating their manufacturing capabilities abroad—in part because of secular economic trends, but U.S. actions are accelerating the process. Simply put, sustained U.S. policies on China can encourage economic decoupling, but only if global economic trends continue to cooperate. Those policies are nascent, but could likely become a structural feature of the U.S.-China economic relationship—especially since a harder stance towards China has gained traction among both major parties. This has been demonstrated by widespread criticism of Chinese trade practices in both parties, and in bipartisan votes on legislation antagonistic to Beijing, such as the Hong Kong Democracy and Human Rights Act or the UIGHUR Act (see further below). The Trump Administration has pursued a three-pronged approach in breaking down economic supply-chain links: 1) escalating tariffs, which discourages bilateral trade; 2) imposing investment restrictions and export controls that punish tech transfers; and 3) issuing threats to U.S. firms that do business in China under the IEEPA. These current policies preview what could become a new orientation in U.S. policy towards China, regardless of who leads the United States at the beginning of next year.
Topic:
International Trade and Finance, Hegemony, Conflict, Trade Wars, and Supply Chains
Political Geography:
China, Asia, North America, and United States of America

106. Mind the Trap: What Basing Rights in Djibouti and Sri Lanka Reveal About the Limitations of Debt as a Tool of Chinese Military Expansion

Author:
Scott Wingo
Publication Date:
04-2020
Content Type:
Journal Article
Journal:
China Brief
Institution:
The Jamestown Foundation
Abstract:
On November 24, 2019, Sri Lankan President Gotabaya Rajapaksa told reporters during his first interview as president that he hoped to renegotiate the terms of the deal that gave a Chinese firm a 99-year lease over the Hambantota Port (Strategic News International, November 24, 2019). The port had been handed over as Sri Lanka struggled to make loan payments on the loss-making Chinese-built facility—thereby leading to debates as to whether the People’s Republic of China (PRC) had set a “debt trap” by intentionally lending Sri Lanka more than it could afford to repay, in hopes of eventually foreclosing on the port (China Brief, January 5, 2019). The subtext was that with a leasehold in hand, the PRC could use the port as a naval installation geared toward patrolling Indian Ocean shipping lanes. As can be observed by the Sri Lankan government’s desire to renegotiate, this has not happened. To the contrary, Sri Lankan security policy has trended against China since the debt-equity swap occurred. A comparison with Djibouti, where the PRC has established its only overseas military base to date, illuminates how this came to pass. In both Djibouti and Sri Lanka, Beijing has used infrastructure loans as a means to entice political leaders to allow naval access. However, three factors led to very different outcomes: 1) the recipient countries’ inherent willingness to host a base; 2) the degree of political competition faced by recipient leaders; and 3) the degree to which recipient leaders can diversify toward different sources of funding to reduce overreliance on China.
Topic:
Debt, Imperialism, International Cooperation, Military Strategy, and Hegemony
Political Geography:
China and Asia

107. Assessing How Foreign State-Owned Enterprises' U.S. Based Operations Disrupt U.S. Jobs

Author:
Oxford Economics
Publication Date:
06-2019
Content Type:
Commentary and Analysis
Institution:
Oxford Economics
Abstract:
The entrance of a Chinese state-owned enterprise (SOE) in the transit passenger railcar manufacturing sector disrupts the current private-sector competitive railcar manufacturing sector in the U.S. In this study, Oxford Economics measures the net effects, stemming from this disruption by quantifying the loss to U.S. jobs, income and GDP that result from anti-competitive SOE practices. Even when domestic protective measures, such as 'Buy America' are put in place loss due to the SOE offshoring key apsects of their supply chain quickly accumulates--especially given the size and duration of municipal transit railcar contracts. We estimate that for every $1 billion in new contracts awarded to a Chinese SOE, the U.S. loses between 3,250 and 5,100 jobs.
Topic:
Hegemony, Employment, State Actors, Manufacturing, Job Creation, Supply Chains, and Contracts
Political Geography:
China, Asia, North America, and United States of America

108. The changing global order and its implications for the EU

Author:
Katja Creutz, Tuomas Iso-Markku, Teija Tilikainen, and Kristi Raik
Publication Date:
03-2019
Content Type:
Working Paper
Institution:
Finnish Institute of International Affairs (FIIA)
Abstract:
The forms of global political transition contradict each other. The Western leadership of the world seems to be in decline, with the US political and military hegemony being challenged by the rise of China and other emerging powers and with global power structures evolving towards multipolarity. At the same time, however, there are increasing signs of a diffusion of state power. It involves a growing group of non-state actors challenging state power in very different forms and different capacities. This report focuses on the axis of state power considered the most important in terms of its global implications: the relationship between the US and China. This relationship is studied with the aim of assessing how the mutual interdependencies are evolving, and what the goals of the two actors look like in respect of their own global role. The im¬plications of this power transition in the key fields of global governance – also covering the simultaneous diffusion of power to non-state actors – forms another relevant topic under review in the global context. Lastly, the report analyses how the EU contends with these forms of power transition and safeguards its own influence in this changing environment. The project also addresses the international role and influence of one of the northernmost EU members, Finland. It investigates how the changes in the global and regional setting should be understood from the Finnish point of view and how Finland should act in order to consolidate its international role in economic as well as political terms.
Topic:
Power Politics, Non State Actors, Hegemony, Leadership, and Liberal Order
Political Geography:
United States, China, Asia, and North America

109. China’s Pursuit of Semiconductor Independence

Author:
James Andrew Lewis
Publication Date:
02-2019
Content Type:
Working Paper
Institution:
Center for Strategic and International Studies (CSIS)
Abstract:
While China has made immense investments in science and technology, and while these are producing results, it is still dependent on Western technology. This is particularly true for semiconductors. China’s dependence on foreign semiconductors has worried Beijing for decades. China suspects that Western semiconductors contain “backdoors,” intentional vulnerabilities that can be exploited for intelligence and military purposes. In 2016, President Xi Jinping said, “the fact that core technology is controlled by others is our greatest hidden danger.” Vice Premier Ma Kai said at the 2018 National People’s Congress, “We cannot be reliant on foreign chips.”1 China intends to end this dependence, but despite 40 years of investment and espionage, it is unable to make advanced semiconductors. Along the way, there have been embarrassing frauds and expensive failures.
Topic:
Science and Technology, Hegemony, Investment, and Emerging Technology
Political Geography:
China and Asia

110. Innocent Bystanders

Author:
Judd Devermont and Catherine Chiang
Publication Date:
04-2019
Content Type:
Working Paper
Institution:
Center for Strategic and International Studies (CSIS)
Abstract:
Speaking at the United Nations General Assembly, President Nana Akufo-Addo of Ghana warned of the repercussions of escalating U.S.-China trade tensions on African nations. Although largely absent from the discourse surrounding the so-called “trade war,” sub-Saharan Africa has suffered from its impacts. Uncertainty hovering over global and African markets has already undermined investor confidence, triggering drops in commodity prices and local currencies. A slowdown in Chinese production and global growth could threaten to throw African markets further off balance. U.S. protectionist measures stand out for their repercussions on African economies and U.S.-Africa relations. Tariff tensions risk indirectly undercutting U.S. goals of promoting African self-reliance, increasing U.S.-Africa trade and investment, and countering China’s expanding influence on the continent.
Topic:
Development, Hegemony, Conflict, and Trade Wars
Political Geography:
Africa, China, Asia, North America, and United States of America