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Nan Jia joined the Walter H. Shorenstein Asia-Pacific Research Center (Shorenstein APARC) during the 2019-2020 academic year as a visiting scholar, from the University of Southern California, where she serves as Associate Professor of Strategic Management at the Marshall School of Business. She obtained her Ph.D. in Strategic Management from the University of Toronto's Joseph L. Rotman School of Management.

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WE HAVE REACHED VENUE CAPACITY AND ARE NO LONGER ACCEPTING RSVPS

 

Rising US-China economic tensions are normal and were to be expected as China modernized. The current discussion of possible “disengagement” between the two was not foreordained, and results from relatively recent divergence in Chinese policy-making from the 40 year trend. The trend is not inevitable, but it will strengthen unless Beijing reverts to market liberalization: nations built on fundamentally different economic systems cannot be as linked as those with like-minded approaches. But China is far from locked-in to a non-market future, and any talk of US disengagement should be rigorously tested against three principles: provisional, partial and peaceful.   

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Daniel H. Rosen is a founding partner of Rhodium Group and leads the firm’s work on China, India and Asia.  Dan has twenty-six years of professional experience analyzing China’s economy, commercial sector and external interactions. He is widely recognized for his contributions on the US-China economic relationship. He is affiliated with a number of American think tanks focused on international economics, and is an Adjunct Associate Professor at Columbia University. From 2000-2001, Dan was Senior Adviser for International Economic Policy at the White House National Economic Council and National Security Council. He is a member of the Council on Foreign Relations, and board member of the National Committee on US-China Relations. A native of New York City, Dan graduated with distinction from the graduate School of Foreign Service of Georgetown University (MSFS) and with honors in Asian Studies and Economics from the University of Texas, Austin (BA).

This event is part of the China Program’s Colloquia Series entitled "A New Cold War?: Sharp Power, Strategic Competition, and the Future of U.S.-China Relations " sponsored by Shorenstein APARC's China Program.

A New Cold War?: Sharp Power, Strategic Competition, and the Future of U.S.-China Relations

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Trade conflict has exploded. The media is rife with stories of China’s unfair trade practices, cyber theft, IP theft and forced technology transfers. Who will first scale the commanding heights of technological supremacy? Who will be the first mover in AI, robotics and biotechnology? What are the implications of Beijing’s ambitious infrastructure projects, including its Belt and Road Initiative? How is China’s “sharp power” deployed, and what are its implications for political and civic life in the U.S.? Can the Trump administration and Beijing’s leadership reach agreement on our trade disputes? Are these just the beginning salvos of an increasingly turbulent future? As U.S. policy towards China sharply veers away from “constructive engagement” to “strategic competition,” the Stanford China Program will host a series of talks by leading experts to explore the current state of our bilateral relations, its potential future, and their implications for the world order.

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https://aparc.fsi.stanford.edu/china/research/new-cold-war-sharp-power-strategic-competition-and-future-us-china-relations

Philippines Conference Room Encina Hall, 3rd Floor 616 Serra Mall, Stanford, CA 94305
Daniel Rosen <i>Rhodium Group</i><br><br>
Seminars
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WE HAVE REACHED VENUE CAPACITY AND ARE NO LONGER ACCEPTING RSVPS

 

Forty years after the reestablishment of diplomatic relations between the United States and China, we are at a historic inflection point defined by more and more competition and less and less cooperation. Both countries have actively traded economic blows and we have demonstrably proven that we are most capable of hurting each other. There are voices on both sides clamoring for economic decoupling amidst a severe collapse of trust, and that trust deficit is most starkly on display in the realm of technology and innovation. In many respects, China’s technological transformation has been a boon to the United States. It is, in fact, impossible to imagine a Silicon Valley without China. But US concerns over China’s policies and practices in the high-tech sphere are very real. The US Trade Representative’s Section 301 report accurately identifies a suite of anti-competitive and unfair practices that cannot continue if cooperative innovation is to thrive. History shows that the United States and China can both choose to make progress together, or we can both choose to struggle together. There are steps China can take to right this course, steps that are in its own economic interests as well as ours.

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On July 26, 2018, Ambassador Craig Allen began his tenure in Washington, DC, as the sixth President of the United States-China Business Council, a private, nonpartisan, nonprofit organization representing over 200 American companies doing business with China. Ambassador Allen began his government career in 1985 at the Department of Commerce’s International Trade Administration (ITA) where, from 1986 to 1988, he worked as an international economist in ITA’s China Office. In 1988, Allen transferred to the American Institute in Taiwan, where he served as Director of the American Trade Center in Taipei. He returned to the Department of Commerce for a three-year posting at the US Embassy in Beijing as Commercial Attaché in 1992. In 1995, Allen was assigned to the US Embassy in Tokyo where he was promoted to Deputy Senior Commercial Officer in 1998. Allen became a member of the Senior Foreign Service in 1999. Starting from 2000, he served a two-year tour at the National Center for APEC in Seattle where he worked on the APEC Summits in Brunei, China, and Mexico. In 2002, Allen first served as the Senior Commercial Officer in Beijing where he was later promoted to the Minister Counselor rank of the Senior Foreign Service. After a four-year tour in South Africa, Ambassador Allen became Deputy Assistant Secretary for Asia at the US Department of Commerce’s International Trade Administration. He later became Deputy Assistant Secretary for China. Ambassador Allen was sworn in as the United States ambassador to Brunei Darussalam on December 19, 2014 where he served until he transitioned to take up his position as President of the US-China Business Council.

The US-China Business Council is a private, nonpartisan, nonprofit organization of approximately 200 American companies that do business with China.  For more information regarding the USCBC, click here

This event is part of the China Program’s Colloquia Series entitled "A New Cold War?: Sharp Power, Strategic Competition, and the Future of U.S.-China Relations " sponsored by Shorenstein APARC's China Program.

A New Cold War?: Sharp Power, Strategic Competition, and the Future of U.S.-China Relations

Trade conflict has exploded. The media is rife with stories of China’s unfair trade practices, cyber theft, IP theft and forced technology transfers. Who will first scale the commanding heights of technological supremacy? Who will be the first mover in AI, robotics and biotechnology? What are the implications of Beijing’s ambitious infrastructure projects, including its Belt and Road Initiative? How is China’s “sharp power” deployed, and what are its implications for political and civic life in the U.S.? Can the Trump administration and Beijing’s leadership reach agreement on our trade disputes? Are these just the beginning salvos of an increasingly turbulent future? As U.S. policy towards China sharply veers away from “constructive engagement” to “strategic competition,” the Stanford China Program will host a series of talks by leading experts to explore the current state of our bilateral relations, its potential future, and their implications for the world order.

https://aparc.fsi.stanford.edu/china/research/new-cold-war-sharp-power-strategic-competition-and-future-us-china-relations

Philippines Conference Room Encina Hall, 3rd Floor 616 Serra Mall, Stanford, CA 94305

 

Amb. Craig Allen <i>President of US-China Business Council</i><br><br>
Seminars
616 Serra StreetEncina Hall E301Stanford, CA94305-6055
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hongwei_yu Ph.D.

Hongwei Yu joins the Walter H. Shorenstein Asia-Pacific Research Center as a visiting scholar for the fall of 2017.  He is an assistant professor in Institute of Quality Development Strategy of Wuhan University. His research interests focus on economic growth quality and quality competition. From 2008 to 2015, he was the research assistant of two professors and an associated professor in related fields. He has worked on four different research projects and is now presiding over two projects on regional industry quality competitiveness.  He has so far had 13 papers published or forthcoming on journals and academic conference proceedings.

He is currently working on the issues of zombie firms and corporate restructuring in China.  He has joined the Employer-Employee Survey (CEES) of Chinese manufacturing in 2015, and gained plenty of research data on this topic. Based on this data, he is putting his effort into two working papers: the statistical analysis on zombie firms in China and the study on the relationships between political connection, entrepreneurship and zombies firms.

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President Trump hosted Chinese President Xi Jinping last week at Mar-a-Lago for their first meeting which set out to address economic, trade and security challenges shared between the two countries. Shorenstein Asia-Pacific Research Center (APARC) experts offered analysis of the summit to various media outlets.

In advance of the summit, Donald K. Emmerson, an FSI senior fellow emeritus and director of the Southeast Asia Program, wrote a commentary piece urging the two leaders to prioritize the territorial disputes in the South China Sea in their discussions. He also suggested they consider the idea of additional “cooperative missions” among China, the United States and other countries in that maritime area.

“A consensus to discuss the idea at that summit may be unreachable,” Emmerson recognized in The Diplomat Magazine. “But merely proposing it should trigger some reactions, pro or con. The airing of the idea would at least incentivize attention to the need for joint activities based on international law and discourage complacency in the face of unilateral coercion in violation of international law.”

Kathleen Stephens, the William J. Perry Fellow in Shorenstein APARC’s Korea Program, spoke to the Boston Herald about U.S. policy toward North Korea and a potential role for China in pressuring North Korea to hold talks about denuclearization. She addressed the purported reports that the National Security Council is considering as options placing nuclear weapons in South Korea and forcibly removing North Korean leader Kim Jong-un from power.

“The two options have been on the long list of possible options for a long time and they have generally been found to have far too many downsides,” Stephens said in the interview.

Writing for Tokyo Business TodayDaniel Sneider, the associate director for research at Shorenstein APARC, offered an assessment of the summit. He argued that two events - the U.S. airstrike on an airbase in Syria following the regime's chemical weapons attack and the leaked reports about tensions between White House staff - shifted the summit agenda and sidelined, at least for now, talk of a trade war between China and the United States.

“Instead of a bang, the Mar-a-Lago summit ended with a whimper,” Sneider wrote in the analysis piece (available in English and Japanese). “On the economy, the summit conversation was remarkably business-as-usual, with President Trump calling for China to ‘level the playing field’ and a vague commitment to speed up the pace of trade talks. When it came to North Korea…the two leaders reiterated long-standing goals of denuclearization but ‘there was no kind of a package arrangement discussed to resolve this.”

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U.S. Secretary of State Rex Tillerson talks with Chinese President Xi Jinping upon his arrival on April 6, 2017, to West Palm Beach, Florida. | Getty Images/Joe Raedle
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The future of relations between China and the United States depends on the readiness of both governments to focus on resolving shared challenges, longtime journalist John Pomfret said at the Shorenstein Asia-Pacific Research Center (APARC) last Wednesday.
 
“The reality of the U.S.-China relationship is collaboration and competition,” said Pomfret, who served for 15 years as a foreign correspondent, describing the nature of interaction between the two countries that began to normalize relations in 1972.
 
Pomfret's remarks were delivered at a colloquium entitled, “The United States and China in the Era of Donald Trump,” which explored the unorthodox approach Donald Trump took during his campaign on a range of issues related to China, and implications for the bilateral relationship now that Trump has assumed the U.S. presidency.
 
Pomfret over the course of his journalism career spent seven years covering China, including during the 1989 Tiananmen Square protests and from 1998 through 2003 as the bureau chief for the Washington Post in Beijing, and recently authored the book, The Beautiful Country and the Middle Kingdom, which examines U.S.-China relations from 1776 to the present. He won the 2007 Shorenstein Journalism Award, an annual honor conferred to a journalist who produces outstanding reporting on Asia.
 
“It’s clear that a new type of reciprocity is needed to right the balance in the U.S.-China relationship, but just whether Trump and his team have the wherewithal to do it…is very much an open question,” he said.
 
Trump continues to promise to restore manufacturing jobs in the United States, but fulfillment of that promise could come in conflict with its trade relationship with China, where much manufacturing of U.S. products takes place, he said.
 
Equally important in the U.S.-China relationship is how to address North Korea and its nuclear weapons and ballistic missiles program, which remains an “extremely complicated” and pressing situation, he said.
 
Pomfret expressed uncertainty about the Trump administration’s capacity to change China’s position from the status quo, which has long supported the North Korean regime by way of trade and relaxed implementation of U.N. sanctions despite repeated provocations.
 
Yet, amidst the vague foreign policy positions projected by Trump toward China, “there is one positive, and that is that he has the Chinese off-balance,” Pomfret admitted.
 
For Pomfret, his appearance at Stanford was a bit of a homecoming; he spoke to an audience of 200 faculty, students and community members at the colloquium sponsored by the China Program and Center for East Asian Studies, the center from which he received his master’s degree in 1984.
 
Asked about the future of China and its governance, he noted that today’s China is markedly different than when he was there in the 1980s studying as a student, and later, working as a journalist. The generational changes are stark, said Pomfret, relaying a sense of optimism that the country would become more democratic over time.
 
“The amount of personal freedoms that the average Chinese person has has expanded exponentially. I think the desire of Chinese people to have more agency over their lives will continue to grow – that’s clear.”
 
Innovation will be a determinant of China’s future growth, said Pomfret, coupling the idea that societies that have knowledge-driven economies typically demand more freedoms. Without innovation, China will fall into the middle-income trap, he said, “I don’t think they want to be there; they are an incredibly proud nation.”
 
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Stanford scholars are encouraging the new administration to consider steps to alleviate the uncertainty and anxiety felt by countries in East Asia about U.S. intentions toward the region.

President Donald Trump’s anti-China rhetoric during his campaign and his recent withdrawal of the U.S. from the Trans-Pacific Partnership have contributed to the unease in the region, which is drifting in ways that are unfavorable for American interests, they said.

Stanford’s Walter H. Shorenstein Asia-Pacific Research Center (APARC) recently published a 27-page report with recommendations on topics of trade and defense that would improve relations between the U.S. and Asian countries. The report, co-authored by eight Stanford scholars, is aimed to help shape U.S. policies in the region.

“The advent of any new administration provides an opportunity to reassess policy approaches,” wrote Gi-Wook Shin, director of the Shorenstein center. “A new mandate exists, and it is our hope that that mandate will be used wisely by the new administration.”

Trade and defense

The biggest trade concern for experts in the region is President Trump’s decision to withdraw the U.S. from the Trans-Pacific Partnership (TPP) and his intention to focus on bilateral agreements instead of multinational pacts.

The agreement, which bound 12 countries in the region by a set of international trade and investment rules, had problems, Stanford scholars said. For example, some have criticized the treaty for not requiring full compliance with international labor standards for all the participating countries. Also, the rules of origin, which were supposed to give preferential treatment to countries in the TPP, were deemed to be weak by many, allowing goods produced outside the TPP to receive benefits.

But it would not be wise or efficient for the U.S. to start negotiations from scratch in the region because the U.S. withdrawal from the agreement, which was touted as a model for the 21st century, already has hurt its credibility with other Asian countries, said Takeo Hoshi, director of the Japan Program at the Shorenstein Center. In addition, Asian countries view the idea of bilateral agreements as an attempt to force trade deals on them that disproportionately benefit the U.S., he said.

“The TPP was not perfect and many problems remain, but they are not removed by abandoning the TPP,” Hoshi wrote in the report. “Completely abandoning the TPP could hurt not only the U.S. economy but also erode U.S. leadership in Asia.”

Hoshi said the U.S. should rely on aspects of TPP that are consistent with the current U.S. trade policy when creating new bilateral agreements, while maintaining and improving existing free trade agreements with other Asian countries.

Another immediate concern for scholars is the maintenance of security and stability in the region.

“The region is unsettled because of uncertainty about us,” said Thomas Fingar, a Shorenstein APARC fellow. “The U.S. has long served as the guarantor of prosperity and security in the region but Asians are no longer convinced that we have the will or ability to do so. This has real consequences … It’s not simply because they are already beginning to act as if we intend to play a less active or positive role.”

If China’s national power and economy continue to expand, it will become increasingly difficult to maintain stability in the region if the U.S. does not continue to play a constructive role. Possible dangers include escalation of tensions between China and the U.S. or its allies following accidents or tactical encounters near areas over which China claims sovereignty.

In the report, scholars recommend a comprehensive review of security in the region to make sure military plans are in place that prioritize management of a possible collapse of North Korea or a sudden military strike coming from the country. Other priorities should include peaceful resolution of China-Taiwan differences and ensuring military access in the South China Sea and East China Sea, wrote Karl Eikenberry, director of the U.S.-Asia Security Initiative at the Shorenstein Center.

“The United States also should engage in a more long-range, exploratory strategic dialogue, first with allies and partners, and then with Beijing, to identify potential areas of mutual interest that can help prevent the unintended escalation of conflicts and reduce already dangerous levels of misperception and mistrust on both sides,” Eikenberry wrote.

China is key

Maintaining a peaceful, productive relationship with China should be of the utmost importance for the U.S., according to the Stanford scholars.

“Managing America’s multifaceted relationship with China is arguably the most consequential foreign policy challenge facing the new administration,” Fingar said.

Although President Trump’s anti-China rhetoric during his campaign made Asian countries anxious about the future, China has been criticized by many American leaders before. Ten previous U.S. presidents were critical of China during their campaigns, but once they assumed office, their tone changed and they adopted a more pragmatic view of U.S. interests in the area, Fingar wrote.

However, while in the past China’s political moves have been predictable for the most part, now that its economy is slowing, the country is increasingly relying on social control and nationalism to reinforce regime legitimacy. This makes China less predictable, according to Fingar.

But the scholars say that there are several opportunities to approach the relationship with China in a way that is beneficial for the U.S. and the rest of the region.

One such opportunity would be for the U.S. to declare its willingness to join China’s newly created Asian Infrastructure Investment Bank, which was formed in early 2016 to support construction projects in the Asia-Pacific region. This would be an “any outcome we win” opportunity that would showcase the U.S. desire to cooperate with China and help establish the region’s confidence in the U.S., Fingar said.

The new administration should also consider pushing for a quick completion of a Bilateral Investment Treaty with China – something that two previous U.S. administrations were not able to achieve. Creating this agreement would help protect things that are important to the U.S. businesses and reassure the willingness of the U.S. to deepen its relationship with China, according to Fingar.

“In my view, how we’re going to establish or reestablish relations with China is key,” Shin said. “Will there be more tension? That’s really important. This affects not only the U.S., but also our allies in the region.”

Alex Shashkevich is a writer for the Stanford News Service.

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Navy officers wait dockside as a Chinese Navy warship, escorting the arrival of the USS Curtis Wilbur, arrives at Qingdao port. | Getty Images - AFP/Frederic J. Brown
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Scholars at Stanford's Shorenstein Asia-Pacific Research Center in the Freeman Spogli Institute for International Studies assess the strategic situation in East Asia to be unsettled, unstable, and drifting in ways unfavorable for American interests. These developments are worrisome to countries in the region, most of which want the United States to reduce uncertainty about American intentions by taking early and effective steps to clarify and solidify U.S. engagement. In the absence of such steps, they will seek to reduce uncertainty and protect their own interests in ways that reduce U.S. influence and ability to shape regional institutions. This 23-page report entitled “President Trump’s Asia Inbox” suggests specific steps to achieve American economic and security interests.

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