Right target; wrong tactics: the trump administration upends East Asian order

President Donald Trump initiated a tariff war claiming that the ultimate target was mercantile Chinese economic practices. Numerous countries share such concerns about China. Yet the Trump administration’s approach is wrong for at least three big reasons. First, tariffs avoid addressing the most fundamental complaints about China while they undermine the longstanding and beneficial global liberal trade order. Second, the U.S. approach has been unilateral rather than multilateral, weakening America’s bargaining position while alienating close allies. Third, the Trump administration escalates what is an economic challenge into an existential threat, ignoring numerous benefits from Chinese policies as well as ignoring multiple areas where China has been a powerful global partner. Middle powers in Asia have acted collectively and individually to bolster the global trading system and avoid the worst consequences of the Trump actions while seeking to avoid making permanent binary choices between the United States and China. Beyond the immediate problems, the Trump tariff wars are creating, they also generate damaging second order effects that are undermining domestic and regional policies conducive to enhanced American strengths and an economically less mercantilist China.     

North Korea's Internet strategy and its political implications

Abstract

During recent years, the role of information technology in shaping politics and social movements in the digital age is drawing increasing scholarly attention. There is, however, little such literature on North Korea as the country remains almost completely cut off from the Internet. Since the mid-1990s, the DPRK government has strategically developed its information and communication technology and has subsequently built a domestic intranet. Although North Korea keeps a minimal presence on the web, there are signs that the country is taking small and cautious steps to allow some social elites to take advantage of the Internet in order to leapfrog its economic development. Indeed, a high-profile defector indicated that North Korea will most likely start allowing wider but limited internet access in the near future. This paper examines North Korea's intranet and Internet policies and explores their political implications by drawing upon first-hand data from Korean sources and existing literature as well as by juxtaposing the North Korean case with other communist regimes such as China and Cuba in terms of their attempts to control and manipulate the Internet. It shows that the DPRK government is likely to learn from the Chinese and Cuban experiences and adopt a ‘Mosquito-Net’ model in controlling the Internet in an effort to attract foreign investment while keeping out information deemed threatening by the regime.     

China's engagement in South America and Africa's extractive sectors: new perspectives for resource curse theories

Abstract

China's engagement in South America and Africa's extractive sectors has increased significantly in the last decade. How comparable are the African and South American cases from a developmental perspective? This article explores resource curse theories, arguing that the ‘curses’ often associated to extraction are historically produced dynamic processes that need to be reevaluated in light of China's direct and indirect impacts on resource-endowed countries. It elaborates a framework to compare the developmental dynamics entailed by China's involvement in the South American and African extractive sectors, distinguishing between external, internal and intrinsic ‘curses’. The article holds that China's growth and investment have strengthened the position of resource-endowed countries in the international economy, revitalizing resource industries and improving terms of trade for commodities. Concurrently, the expansion of extractive activities has brought about increased environmental and economic sustainability challenges. Divergences between the African and South American cases are best observed at the national levels, where China's non-interventionist approach has different developmental implications depending on internal trends within investment host countries.     

Hedging in search of a new age of non-alignment: Myanmar between China and the USA

Abstract

The American ‘return’ to East Asia is currently characterized by a particularly high degree of competition with Beijing among the small and medium powers of Southeast Asia, where the recent Chinese ‘charm offensive’ achieved its most significant outcomes.

This article, hence, aims to explore the nature and patters of this ongoing process of strategic repositioning put into practice by Myanmar within the political triangle with Washington and Beijing. Against this backdrop, we will draw upon the conceptualization of ‘hedging strategy’, which identifies a set of multidimensional ‘insurance policies’ adopted by small actors in their relations vis-à-vis great powers.     

The United States,Japan, and the European Union: comparing political economy approaches to China

Abstract

This paper examines US, Japanese, and European political economy approaches to China, and their effect on US–Japan and US–EU relationships. Great powers with a greater security concern in dealing with another major country care more about power while those with less of a concern are preoccupied with calculations for wealth. China's rise and its actions have posed a far greater security challenge to the United States and Japan and are driving the two countries closer together. The political economy game involving China reveals a dominant welfare motive among the advanced market economies. The ambition to transform China politically has diminished. China's integration into the global market makes a relative gains approach difficult to implement. Globalization simply limits the ability of a state to follow a politics-in-command approach in the absence of actual military conflict, which explains why the political economy approaches of the United States, Europe, and Japan are not that different in the scheme of things. China's own grand strategy to reach out to the world to outflank the US–Japan alliance has also contributed to a divergent European policy toward China although there are severe limitations to Beijing's ability to drive a wedge between the United States and Europe.     

China and Europe: engagement,multipolarity and strategy

Abstract

Ever closer relations between China and Europe over the last decade have sparked speculation about an emerging axis or balance of power vis-à-vis the United States. China, the European Union and its key member states have expressed a preference for a more balanced international order based on multilateral institutions. Despite a rapid and extensive expansion in economic and political relations between China and the European Union, there is no evidence for balancing against the United States in strategic areas. Rather, the variations in the positions of China, the European Union and the United States can more accurately be seen as policy or interest bargaining. Because the European Union does not share US security interests in the Asia-Pacific region, the European Union and its key member states can seem at variance with the US position on China. Bargaining over the failed attempt to lift the European Union's arms embargo against China shows that the European Union and the United States are not so far apart on strategic issues in the Asia-Pacific.     

Fire over water: China's strategic engagement of Somalia and the Gulf of Aden crisis

Abstract

Since China agreed to join the international counter-piracy coalition in late 2008, a watershed development in Chinese strategic policy, Beijing's engagement in Somalia is now following two separate streams. First, China is seeking to engage Somalia as part of its expanding number of African diplomatic partners via its participation in the coalition. Second, China is attempting to demonstrate, on the international level, its growing commitment to developing its naval capabilities, and protecting its maritime trade interests, by engaging in multilateral and coalition-based operations, namely to combat piracy off the Somali coast, in order to deflect criticism from the United States and its allies of China's overall military expansion and modernization.     

China's dualist model on technological catching up: a comparative perspective

Abstract

The central question of this paper is whether China can go beyond simple technological transfer and toward innovation in this age of globalization. By adopting an institutionalist perspective, this paper argues that China has developed a dualist model during its economic transitional period in which the foreign sector has been isolated from domestic firms, while the domestic industrial sectors have also failed to develop organic linkages among themselves to facilitate technological learning and generate innovation. This paper discusses four major institutional arrangements that deeply influence China's technological development – the institutional logic of economic reform, the state's industrial policy, the financial system and the industrial structure. It suggests that, owing to these institutional elements, China has neither developed economies of scale, as compared with the South Korean case, nor has it built up a network-type of economy similar to its Taiwanese counterpart in order to generate the mechanisms needed for technological innovation.     

Chinese and Japanese investment in Southeast and South Asia: case studies of the electronics and automobile industries

Abstract

This article uses extensive fieldwork data to focus on the question of how Chinese and Japanese companies are competing in neighboring countries of Asia, and what economic forces will shape their future growth in the region. It begins by briefly discussing the history of Chinese and Japanese investment in the South and Southeast Asian regions. It traces the development of Japanese overseas investment policies, as well as China's more recent ‘Going Out’ government program to encourage overseas flows of capital. It then builds on prior political economy work as it uses case study focuses, with primary data based on the author's fieldwork research in several nations of Southeast Asia and in India, of the two key sectors of automobiles and electronics. It compares and contrasts the investment strategies of companies from each country, as well as the successes and failures of investments in the industries. It finds that Japanese companies’ advantages lie in industries utilizing advanced technology and management skills. Though the Japanese continue to lead in many areas, including automobiles, they have begun to face competition and potentially reduced profits in vital manufacturing areas. Meanwhile, Chinese overseas companies have made significant advances in the consumer electronics sector, using low prices and good quality, though overseas automobile investments have gained little traction. The article concludes that, if the Chinese can improve their product quality, capitalize on improving managerial skills and a deeper level of experience in the region, and establish brands they can sell with reliable distribution networks, Japanese companies could face losses to their Asian neighbor in these important parts of the continent they have dominated for decades.     

Taiwan and the geopolitics of late development

Abstract

Through a case study of Taiwan, this paper seeks to address recent debates surrounding the transformation of developmental states in East Asia. Whilst a number of authors have cited the Taiwanese state as being both cautious and resilient in the midst of global restructuring, this paper seeks to critically engage with such arguments by highlighting the dynamic and mutually constitutive relations between the forms of social relations that underpin late development and the wider geopolitical system in which such development occurs. Specifically, Taiwanese industrialisation can be viewed as an outcome of the US intervention in the Chinese civil war and subsequent exclusion of China from the regional political economy in the period between the Korean and Vietnam Wars. The Kuomintang (KMT)'s retreat to Taiwan established the basis for the autonomous developmental state, and the US underpinned this state through military protection, aid and access to its own domestic market. However, the relative decline of US hegemony and the readmission of China into the international system have posed significant challenges to Taiwan's developmental state. The US sought to redress its trade imbalance with East Asia by placing pressure on Taiwan to liberalise its political economy. Furthermore, the very process of development itself served to undermine the autonomy of the state as it came under pressure from new social forces. Taiwan has more recently been faced with a dilemma of closer integration with the mainland or the maintenance of its de facto economic and political independence at the risk of becoming isolated from the global trading system.