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2. Enhancing the Cooperation between the US and Its Allies in the Mekong Subregion
- Author:
- Sach Nguyen
- Publication Date:
- 06-2024
- Content Type:
- Special Report
- Institution:
- Pacific Forum
- Abstract:
- The Mekong subregion is experiencing heightened geopolitical competition between the US and China, representing a clash between the international rules-based order and a China-led order. While the US and its allies advocate for the rules-based order, China’s intentions for its own order in the region are debated. China’s increased presence and influence in the Mekong subregion, particularly through upstream control of the Mekong water, reflect its pursuit of this order. In response, the US and its allies, such as Japan, South Korea, and Australia, have strengthened cooperation with one another to promote a rules-based system. Despite existing coordination, there is potential for further collaboration to enhance their role in mainland Southeast Asia. Stability and prosperity in the Mekong subregion are being challenged. Weakening international norms in governing transboundary waters threaten downstream countries’ security and livelihoods, exacerbated by climate change-induced droughts. China’s growing engagement in the region aims to establish its sphere of influence, primarily through economic development projects like dams and railways, raising concerns over environmental impacts and expanding Chinese influence. Additionally, non-traditional security threats such as the COVID-19 pandemic, cyber security, and human trafficking further complicate the region’s situation. The engagement of the US and its allies in the Mekong subregion is multifaceted, driven by various interests but united in countering China’s growing influence. The US, through initiatives like the Lower Mekong Initiative (LMI) and later the Mekong-US Partnership, seeks to maintain its relevance and preeminence in the region. Japan, South Korea, and Australia also engage with the subregion, for economic interests and to counterbalance China. Japan, for instance, aims to establish production bases and balance China’s influence through high-standard infrastructure projects. South Korea focuses on economic development and diversification of trade amid US-China tensions, while Australia prioritizes promoting a rules-based order and addressing non-traditional security threats. Despite differences in approach, the US and its allies collaborate through platforms like the Friends of the Mekong and initiatives such as the Trilateral Partnership for Infrastructure Investment in the Indo-Pacific, aimed at countering China’s Belt and Road Initiative. However, challenges remain in realizing these initiatives, particularly in engaging the private sector and ensuring concrete outcomes amidst competing interests and complex negotiations. Recommendations for enhancing cooperation between the US and its allies in the Mekong subregion include strengthening international norms and rules, expanding economic infrastructure projects, focusing on non-traditional security issues, and fostering track 1.5 and track 2 diplomacy to promote mutual understanding and collaboration among all stakeholders, including governments, academia, businesses, and civil society organizations. These efforts, facilitated by the US and its allies, can contribute to a more stable and prosperous Mekong subregion.
- Topic:
- Foreign Policy, Development, Geopolitics, International Order, and Competition
- Political Geography:
- China, Asia, United States of America, and Mekong River
3. How China’s Human Capital Impacts Its National Competitiveness
- Author:
- Briana Boland, Kevin Dong, Jude Blanchette, Ryan Hass, and Erica Ye
- Publication Date:
- 06-2024
- Content Type:
- Policy Brief
- Institution:
- Center for Strategic and International Studies (CSIS)
- Abstract:
- How will the strengths and weaknesses of China’s human capital impact national competitiveness? China’s efforts to maintain economic growth, strengthen supply chains, develop strategic science, technology, engineering, and mathematics (STEM) sectors, and secure a modern military edge hinges on the ability to cultivate and utilize human capital. As the United States and other countries increasingly engage in multidomain competition with China, it is critical to start from a clear-eyed understanding of China’s human capital and Beijing’s strategy for nurturing national talent. Investments in higher education, strategic STEM sectors, and military talent demonstrate key areas in which Beijing is focusing on cultivating human capital. However, China must overcome significant obstacles to innovate as it faces substantial demographic pressures, socio-economic inequalities, and challenges to attracting and retaining top talent both domestically and internationally.
- Topic:
- Economic Growth, Human Capital, Supply Chains, and Competition
- Political Geography:
- China, Asia, and United States of America
4. Negotiating Africa’s Digital Partnerships amid Geopolitical Competition
- Author:
- Folashadé Soulé
- Publication Date:
- 09-2024
- Content Type:
- Special Report
- Institution:
- Centre for International Governance Innovation (CIGI)
- Abstract:
- Rising geopolitical tensions among China, the United States and other major powers are making digital partnership negotiations between African stakeholders and these global actors more complex. China is becoming an increasingly popular choice among African states because the country typically offers more affordable technology options to achieve digital development goals than its Western counterparts. Negotiating Africa’s Digital Partnerships — a policy research project supported by the Centre for International Governance Innovation and hosted at the Blavatnik School of Government, University of Oxford — looks at how these partnerships are formed as African governmental actors seek new and rising partners to help build their digital capacity. The project involves interviews with African ministers, policy makers, the private sector, and civil society actors from both francophone and anglophone Africa with a focus on digital connectivity, infrastructure, digital sovereignty, norm-setting and governance issues.
- Topic:
- Geopolitics, Competition, Digital Partnerships, and Digital Governance
- Political Geography:
- Africa, China, and United States of America
5. Building a Coalition - the U.S. Faces Down Competition with China in the Chip Sector
- Author:
- Damian Wnukowski
- Publication Date:
- 04-2023
- Content Type:
- Working Paper
- Institution:
- The Polish Institute of International Affairs
- Abstract:
- In recent months, the U.S. has intensified its international efforts to limit China’s ability to produce the most advanced chips. The result includes the introduction by Japan and the Netherlands of restrictions on the export of modern machines for chip production. In response, China is trying to attract foreign investment and develop its own potential in this sector. The U.S. actions may significantly slow the pace of China’s technological development and economic growth and limit its potential to further strengthen its military capabilities. This may make it difficult for China to support Russia with dual-use products and render possible offensive actions against Taiwan harder.
- Topic:
- Economy, Production, Semiconductors, and Competition
- Political Geography:
- China, Asia, North America, and United States of America
6. Strategic Competition and Security Cooperation in the Indo-Pacific
- Author:
- Carl W Baker
- Publication Date:
- 03-2023
- Content Type:
- Special Report
- Institution:
- Pacific Forum
- Abstract:
- There is a growing acceptance among countries in the Indo-Pacific region that strategic competition between the United States and China is changing perceptions about security and the adequacy of the existing security architecture. While some have characterized the competition between the two as a new Cold War, it is clear that what is happening in the region is far more complex than the competition that characterized the original Cold War between the United States and the Soviet Union. First, the economic integration that has taken place since the early 1990s makes it much more difficult to draw bright ideological lines between the two sides. Further, the Asian context of the emerging competition is one where the two competitors have grown to share power. As the dominant military power, the United States has been the primary security guarantor in Asia and beyond. China, on the other hand, has emerged over the past decades as the primary economic catalyst in Asia and beyond. Currently, each side seems increasingly unwilling to accept that arrangement.
- Topic:
- Security, International Cooperation, Strategic Interests, and Competition
- Political Geography:
- China, United States of America, and Indo-Pacific
7. Assessing Digital Leadership: Is the EU Losing out to the US?
- Author:
- Dario Guarascio and Roman Stöllinger
- Publication Date:
- 03-2023
- Content Type:
- Working Paper
- Institution:
- The Vienna Institute for International Economic Studies (WIIW)
- Abstract:
- Since Leontief’s (1953) seminal work on the factor content of trade, the validity of the Heckscher-Ohlin-model has been judged not only on the basis of formal tests of the theory but also tested against prior expectation. In this vein, this paper uses the Heckscher-Ohlin-Vanek (HOV) approach to investigate whether supposed US leadership in the digital domain can be traced back to digital task endowments embodied in labour services. In a comparison between EU member states and the US, we find that the latter is more intensive in digital tasks than the EU and that this difference is explained by both an intensity-effect (US occupations being more digital-task intensive) and a structural component (relatively more digital-task intensive occupations). Viewed through the lens of the HOV theorem we find that the US is abundant in digital tasks relative to non-digital tasks, while the opposite is true for the EU. The standard tests for the predictive power of the HOV theorem are high and in line with the results for labour in previous literature.
- Topic:
- International Trade and Finance, Foreign Direct Investment, European Union, Digitalization, and Competition
- Political Geography:
- Europe and United States of America
8. Competition Versus Exclusion in U.S.–China Relations: A Choice Between Stability and Conflict
- Author:
- Jake Werner
- Publication Date:
- 09-2023
- Content Type:
- Policy Brief
- Institution:
- Quincy Institute for Responsible Statecraft
- Abstract:
- The Biden administration’s China policy is pulling in two different directions, but the tension is not widely recognized because every antagonistic measure aimed at China is filed under the heading of competition. As a result, Washington’s debate on China loses the crucial distinction between “competition” — a kind of connection with the potential to be carried on in healthy ways — and “exclusion,” an attempt to sever connection that necessarily leads to conflict if the domain is significant. Biden’s exclusion policies focus on cutting China out of the principal growth sectors in the global economy and the most lucrative and strategically important markets. Administration officials think their approach is sensible and moderate compared to more extreme voices in Washington calling for exclusion in all realms. Even so, the Biden approach is highly destabilizing because both countries consider the targeted areas vital to the future of global authority and economic prosperity, and because the attempt to trap China in a position of permanent subordination represents a serious threat to the legitimacy of China’s leaders. Healthy competition requires a shared stake in the future. In earlier periods, despite sharp tensions and mutual suspicions suffusing the relationship, U.S.–China ties were stabilized first by the joint project of containing Soviet power and then by a shared commitment to market–led globalization. Now that leaders on both sides are disenchanted with key facets of globalization, the two countries are caught in an escalatory cycle of exclusion and retaliation that risks hardening zero–sum pressures in the global system into a permanent structure of hostility. In such a scenario, each country would organize its own society and international partners to undermine the other, dramatically increasing the likelihood of violent conflict. The warning signs are already clear on both sides, as each increasingly interprets every action on the other side as part of a conspiracy to achieve domination. Notwithstanding widespread complacency about the risks of conflict after a tentative diplomatic opening in recent months, the rise of securitized thinking in both countries is steadily building institutional and ideological momentum for confrontation that can only be broken by a new and inclusive direction for the relationship.
- Topic:
- Foreign Policy, Diplomacy, Bilateral Relations, Political stability, Conflict, Strategic Competition, and Competition
- Political Geography:
- China, Asia, North America, and United States of America
9. Stablecoins, United States Competitiveness, and the Cloud
- Author:
- Michael B Greenwald
- Publication Date:
- 03-2023
- Content Type:
- Journal Article
- Journal:
- Brown Journal of World Affairs
- Institution:
- Brown Journal of World Affairs
- Abstract:
- Recent geopolitical events and the overleveraging of U.S. sanctions has strained the relationship between the U.S. dollar and other world financial powers, bringing the current system—fundamentally grounded in the 1944 Bretton Woods Agreement—to a critical inflection point. Although the past 80 years has seen a global financial system that hinged on the chosen policy of the United States, adversaries and allies alike are actively searching for ways to diversify from a dollar-centric system. Simultaneously, the innovation of financial technology has led to the creation of blockchain based, non-state currencies and demand for more efficient settlement of transactions. These trends have given rise to a crucial moment for infrastructure that underpins these innovations: the cloud and U.S. financial policy. In developing a long-term strategy that supports a robust global financial system, policymakers should heed the revolutionary potential of innovation and the cloud, specifically related to stablecoins and Central Bank Digital Currencies (CBDCs).
- Topic:
- Infrastructure, Digital Currency, Competition, and Stablecoins
- Political Geography:
- North America and United States of America
10. Strategies of Multinational Companies Entering China in the Era of U.S.-China Competition and Implications for Korea
- Author:
- Sang Baek Hyun, Ji Young Moon, Min-suk Park, Jonghyuk Oh, and Yunmi Oh
- Publication Date:
- 03-2023
- Content Type:
- Policy Brief
- Institution:
- Korea Institute for International Economic Policy (KIEP)
- Abstract:
- With the integration of resources and markets around the world sparked by the trend of globalization, multinational companies have continued to grow at a rapid pace. In particular, global manufacturers have maintained their competitiveness by distributing resources more efficiently while establishing a global value chain with China as their main production hub. However, measures taken by the U.S. to block China’s access to technology and supply chains in some high-tech industries have prompted discussions on reorganization of the global supply chain, placing these multinational companies in an uncertain situation concerning their operations in China. At a time when competition between the U.S. and China is intensifying, it is necessary to look at the response strategies of global companies that have entered China and seek effective countermeasures for Korean companies.
- Topic:
- Economics, Multinational Corporations, Manufacturing, and Competition
- Political Geography:
- China, Asia, South Korea, North America, and United States of America
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