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481. China After Covid-19: Economic Revival and Challenges to the World

Author:
Alessia Amighini, Yukon Huang, Tyson Barker, Eduardo Missoni, Giulia Sciorati, Haihong Gao, Elisa Sales, Maximilian Kärnfelt, and Paola Magri
Publication Date:
06-2021
Content Type:
Special Report
Institution:
Italian Institute for International Political Studies (ISPI)
Abstract:
The coronavirus pandemic that has rocked China since December 2019 has posed a gruelling test for the resilience of the country’s national economy. Now, as China emerges from its Covid-induced "recession", it feels like the worst is behind it. How did China manage to come out almost unscathed from the worst crisis in over a century? This Report examines how China designed and implemented its post-Covid recovery strategy, focussing on both the internal and external challenges the country had to face over the short- and medium-run. The book offers a comprehensive argument suggesting that, despite China having lost economic and political capital during the crisis, Beijing seems to have been strengthened by the “pandemic test”, thus becoming an even more challenging “partner, competitor and rival” for Western countries.
Topic:
Politics, Science and Technology, Economy, Resilience, and COVID-19
Political Geography:
China, Europe, and Asia

482. Japan’s Role in India’s Infrastructure Journey: ODA, Technology, and Partnership for Achieving Sustainable Development Goals

Author:
Monika Chansoria
Publication Date:
01-2021
Content Type:
Policy Brief
Institution:
Japan Institute Of International Affairs (JIIA)
Abstract:
Asia’s current security map finds itself being reimaged in the midst of the evolving regional re-alignments in a post-Covid-19 pandemic scenario that has caused unprecedented damage to humanity. The idea of ‘Asia-Pacific’ that seemed apt as a regional framework at least till the late 20th century now encompasses a far broader scope geographically. The regional order matrix has been instrumental in paving the way for the “Indo-Pacific” region at large. As a region including maritime Asia at its core, the IndoPacific finds itself coupled with geographical boundaries that extend from the eastern coast of Africa, through the Indian Ocean, to the Western Pacific. Asia’s tectonic shifts in power politics shall continue to challenge future stability in the region with festering territorial and maritime disputes, worsening resource competition, fast-rising military expenditures, and polarizing waves of domestic nationalism only make more germane efforts towards arriving upon a common understanding and approach for an Indo-Pacific definition of Asia
Topic:
Science and Technology, Infrastructure, Partnerships, and Sustainable Development Goals
Political Geography:
Japan, India, and Asia

483. Strategic Annual Report 2020

Author:
Japan Institute of International Affairs (JIIA)
Publication Date:
02-2021
Content Type:
Special Report
Institution:
Japan Institute Of International Affairs (JIIA)
Abstract:
The year 2020 was characterized by the intensification of US-China confrontation and strategic competition, which had been pointed out in the Strategic Annual Report 2019, in all areas from military and security affairs as well as dominance in advanced technologies and supply chains to narratives on coronavirus responses. Amid this confrontation, the rules-based international order faced even more severe challenges; the multilateral framework established after World War II with the United Nations at its core lost its US leadership and fell into serious dysfunction. While the international community is struggling to cope with the rapidly expanding outbreak of the novel coronavirus, China has been moving to expand its influence through increasingly authoritarian and assertive domestic and international policies on the rule of law and territorial issues, as well as through economic initiatives such as the existing “Belt and Road Initiative” (BRI) and its responses to the pandemic. The confrontation with the United States is becoming more and more pronounced, and the Indo-Pacific region is turning itself into divided and contested oceans. In this transforming strategic environment, expressions of support for the vision of a rulesbased “Free and Open Indo-Pacific” (FOIP) that Japan has been promoting for the past several years, or announcements of similar visions have followed one after the other. The year 2020 also saw significant strengthening of the cooperative framework among four countries – Japan, the United States, Australia, and India (QUAD) – together with the enhancement of bilateral cooperation between countries in this group. At the same time, progress was also made in a regional cooperation framework that includes China with the signing of the Regional Comprehensive Economic Partnership (RCEP) Agreement in East Asia. The Strategic Annual Report 2020 looks back at major international developments since last year’s Report through the end of 2020, focusing on the transformation of the strategic environment in the Indo-Pacific region and the response of the international community.
Topic:
International Relations, Arms Control and Proliferation, Diplomacy, Science and Technology, Bilateral Relations, Multilateralism, COVID-19, and Destabilization
Political Geography:
Russia, Japan, China, Middle East, United States of America, and Indo-Pacific

484. US Export Control of Emerging Technologies

Author:
Yoshiaki Takayama
Publication Date:
04-2021
Content Type:
Research Paper
Institution:
Japan Institute Of International Affairs (JIIA)
Abstract:
Competition among great powers is accelerating moves to review international interdependence from the perspectives of foreign policy and national security. Since 2019, the US Department of Commerce has introduced export control of emerging technologies, in essence managing international interdependence based on foreign policy and security logic. With the above in mind, this report examines the US government's export control of emerging technologies and its implications.
Topic:
Foreign Policy, National Security, Science and Technology, Power Politics, and Exports
Political Geography:
United States of America

485. Emerging Technologies and Nuclear Deterrence Relationship

Author:
Hirofumi Tosaki
Publication Date:
04-2021
Content Type:
Research Paper
Institution:
Japan Institute Of International Affairs (JIIA)
Abstract:
The implications of emerging technologies have been an important issue in the debate on nuclear posture and deterrence relationship. Although the concrete objectives, concepts, plans and states of development of the nuclear-armed states regarding the introduction of emerging technologies into their nuclear weapons systems are not necessarily clear, a particular focus of discussion has been the potential impacts of introducing artificial intelligence (AI), quantum technology and other emerging technologies into intelligence, surveillance and reconnaissance (ISR) and nuclear command, control and communications (NC3). With regard to ISR for early warning, threat detection, situational awareness and attack/damage assessment, the development of remote sensing technology through quantum sensing, for instance, could improve the ability to detect an adversary's offensive capabilities, and increase the possibility of addressing them before they are used. The use of cloud computing, ultrahigh-speed high-capacity data communications and AI is expected to enable the efficient collection and prompt analysis of vast amounts of information.
Topic:
Science and Technology, Nuclear Power, Deterrence, Artificial Intelligence, and Destabilization
Political Geography:
Global Focus

486. China Strengthens Its Economic Security

Author:
Takahiro Tsuchiya
Publication Date:
05-2021
Content Type:
Research Paper
Institution:
Japan Institute Of International Affairs (JIIA)
Abstract:
"Economic security" has been gathering attention in recent years. The main reasons for this are (1) neo-globalization, (2) the achievement of objectives by major powers using the "economic statecraft"1 approach, and (3) the development of "game-changing" and other emerging technologies. In particular, there has been a heightened sense of international concern about China's attempts to coerce, demand obedience, or persuade other countries by acquiring/securing technologies (resorting to economic espionage if necessary) and human resources and by leveraging its economic power.
Topic:
Development, Science and Technology, Xi Jinping, and Economic Security
Political Geography:
China and Asia

487. The Disinformation Threat and International Cooperation

Author:
Kyoko Kuwahara
Publication Date:
06-2021
Content Type:
Research Paper
Institution:
Japan Institute Of International Affairs (JIIA)
Abstract:
An open democratic society is one that allows its members to access information from both inside and outside the country presenting a diversity of viewpoints, to freely express their own thoughts, and to involve themselves in free and fair national governance. The role of the media has traditionally been emphasized with regard to accessing information. Traditional media play an important role in shaping public opinion and in providing information that enables members of the public to participate actively and effectively in a democratic society (see Figure 1). Freedom of the press1 as guaranteed by Article 21 of the Constitution of Japan is also one of the core values of democracy.
Topic:
International Cooperation, Science and Technology, Media, and Disinformation
Political Geography:
Europe, Global Focus, and United States of America

488. The SolarWinds Cybersecurity Case in US-Russia Relations

Author:
Hiroshi Yamazoe
Publication Date:
06-2021
Content Type:
Research Paper
Institution:
Japan Institute Of International Affairs (JIIA)
Abstract:
On April 13, 2021, US President Joe Biden held a telephone conversation with Russian President Vladimir Putin to discuss several issues that are hindering US-Russia relations. Two days later, the White House announced economic sanctions and other retaliatory measures, saying that these would impose costs for Russia's harmful activities. This statement gave a relatively detailed description of a cyberattack using SolarWinds products that surfaced in December 2020. On April 15, 2021, the same day that the retaliatory measures were announced, US and UK intelligence agencies officially designated Russia's Foreign Intelligence Service (SVR) the responsible party for the first time. This article discusses some of the cybersecurity issues in US-Russia relations, focusing on the issues surrounding SolarWinds products, and uses part of my manuscript written in February 2021 for a report by the Japan Institute of International Affairs' Russian Study Group, with some additions made based on developments in April and May.
Topic:
Science and Technology, Bilateral Relations, and Cybersecurity
Political Geography:
Russia and United States of America

489. Commercialisation contracts: European support for low-carbon technology deployment

Author:
Ben McWilliams and Georg Zachmann
Publication Date:
07-2021
Content Type:
Policy Brief
Institution:
Bruegel
Abstract:
Many of the technologies that can help the European Union become a net-zero emissions economy by 2050 have been shown to work but are not yet commercially competitive with incumbent fossil-fuel technologies. There is not enough private investment to drive the deployment of new low-carbon alternatives. This is primarily because carbon prices are neither high enough nor stable. There are a number of benefits from the deployment of low-carbon technologies that private firms do not factor in. These include the benefits of decreasing industry-wide costs over time, and the global climate benefits from the development of low-carbon technologies within the EU that can subsequently be exported. The result is an investment level below the socially optimal value in the EU. Commercialisation contracts could be implemented as a temporary measure to remove the risk associated with uncertain carbon prices for ambitious low-carbon projects. The aim of the contracts would be to increase private investment to the socially optimal level. Contracts would be allocated through auctions in which fixed prices for abated emissions over a fixed duration would be agreed on a project-by-project basis. On an annual basis, public subsidies amounting to the difference between the agreed carbon price and the actual EU carbon price would be provided to investors, depending on the total carbon emissions abated. As long as EU carbon prices are low, investors would receive larger subsidies to ensure their competitiveness. Contracts would be auctioned at EU level. This would generate increased competition compared to national auctions, leading to more efficient outcomes and preventing fragmentation of the single market. From about €3 billion to €6 billion would be provided to the main industrial emitting sectors annually, with the amount reducing as the EU carbon price rises and low-carbon technologies become competitive without subsidy.
Topic:
Climate Change, Energy Policy, Science and Technology, Investment, Trade, Carbon Emissions, and Decarbonization
Political Geography:
Europe

490. Is the European Union’s investment agreement with China underrated?

Author:
Uri Dadush and André Sapir
Publication Date:
04-2021
Content Type:
Policy Brief
Institution:
Bruegel
Abstract:
The European Union is very open to foreign direct investment. By comparison, despite considerable liberalisation in the past two decades, foreign investors in China’s markets still face significant restrictions, especially in services sectors. Given this imbalance, the EU has long sought to improve the situation for its companies operating or wanting to operate in China. After eight years of negotiations, the EU and China concluded in December 2020 a bilateral Comprehensive Agreement on Investment (CAI). The text awaiting ratification aims to give foreign investors greater market access, enforceable via state-to-state dispute settlement. It does not yet, however, cover investor protection (such as against expropriation). Meanwhile, investor protection is covered by bilateral investment treaties between EU countries and China, which remain in force. The CAI has been met in some quarters with scepticism on economic and geopolitical grounds. The main criticism is that it provides little new market access in China, and that this small economic gain for the EU comes at the price of breaking ranks with its main political ally, the United States. Our assessment, which focuses on the economic implications, is different. It is true the CAI provides only modest new market access in China, but this is because China has already made progress in recent years in liberalising its foreign investment regulations unilaterally. The CAI binds this progress under an international treaty, marking an improvement for EU firms insofar as their market access rights can be effectively enforced. Most important, the CAI includes new rules on subsidies, state-owned enterprises, technology transfer and transparency, which will improve effective market access for EU firms operating in China. These bilateral new rules could also pave the way for reform of the multilateral rules under the World Trade Organisation, with the aim of better integrating China into the international trading and investment system – a goal shared by the EU, the United States and other like-minded countries. From an economic viewpoint therefore, the CAI is an important agreement, and one worth having. However, its ratification by the European Parliament is unlikely while China continues to apply sanctions against some members of the European Parliament and other critics of China’s human rights record.
Topic:
Science and Technology, Bilateral Relations, European Union, Investment, and Liberalization
Political Geography:
China and Europe