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. The recommendations summarized below, and elaborated in a 23-page report entitled “President Trump’s Asia Inbox,” suggest specific steps to achieve American economic and security interests.

» Key Recommendations

» Full Report with Preface from Director Gi-Wook Shin and Introduction by Amb. Michael H. Armacost

» About the Contributors

» Information for Press

» Press Coverage

Key Recommendations. 

Trade and Economic Relations

The dynamic economies of East Asian countries are increasingly integrated and interdependent. The United States is an important market and source of investment and technology, but this is no longer sufficient to ensure that future arrangements and rules will protect American interests. The region is moving toward more formal, rule-based arrangements and the United States must be an active shaper of those institutions.

Most in the region want the United States to play a leading role in the establishment and enforcement of free and fair international economic transactions, and want the rules and mechanisms governing trade to be multilateral ones. If we do not play such a role, China, and possibly others, will seek arrangements that disadvantage American firms.

• The replacement for the Trans-Pacific Partnership (TPP) should build on what was achieved in those negotiations, especially those that would assure market access for U.S. firms and protect intellectual property rights, enforce labor standards, and ensure environmental protection. A single multilateral agreement would be best, but much could be achieved through interlocking and consistent bilateral agreements.
• The administration should adopt policy measures to increase employability and create jobs for the Americans who have been disadvantaged by globalization.

Defense and Security

China’s military buildup and North Korea’s growing arsenal of missiles and nuclear weapons have fueled concerns about U.S. will and ability to honor its security commitments in the region. No one wants a regional arms race or tit-for-tat moves that increase the danger of accidental conflict or escalation, but many believe concrete steps are needed to check perceptions that the United States is becoming less willing to maintain the peace and stability that undergirds regional prosperity.

• While reaffirming the need for a forward presence in the region, reconfigure it along the lines of an “active denial” strategy. “Active denial” means maintaining a forward presence in East Asia that is designed to deny an opponent the benefits of military aggression, especially the prospect of a quick victory. The first component of such a strategy is a resilient force posture, which can be achieved by exploiting the size and depth of the region to distribute units in more locations. The second component is an emphasis on planning to conduct military operations against an adversary’s offensive strike or maneuver forces, not targets deep inside an adversary’s homeland territory and not by carrying out preemptive strikes.
• Strengthen U.S. military capabilities by developing and fielding stealthier air and maritime platforms, increase submarine and anti-submarine assets, and provide forward deployed forces with better active defenses, such as rail guns and lasers. At the same time, the United States should assist those neighbors of the PRC who feel threatened by Chinese assertiveness to develop asymmetric coercive capabilities that can put at risk forward-deployed PLA forces. The United States can use elements of such assistance programs as points of negotiating leverage in our attempts to limit militarization on both sides.
• Continue to promote U.S.-China military relations, emphasizing accident avoidance and crisis management, sustained dialogues on national strategies and doctrines, and cooperative endeavors, such as training exercises and combined operations, where and when feasible and mutually beneficial.

China

People in the region worry about China’s actions and intentions but they worry more about the prospect of confrontation and conflict between the United States and the People’s Republic. They look to the United States as a counterbalance to China but fear that Washington will overreact or underreact to actions by Beijing, or take provocative actions that jeopardize their own interests. The U.S. should:

• Respond to Chinese actions inimical to American interests in ways that protect our interests, achieve U.S. goals shared by others in the region, and avoid both the reality and the appearance of being “anti-China.”
• Reaffirm American commitments to allies and partners including China and Taiwan.
• Tighten enforcement of import restrictions on products produced by firms that have stolen intellectual property from U.S. companies.

Korean Peninsula

North Korea is threatening an ICBM test in 2017, possibly in the next few weeks or months. There is a political vacuum in South Korea, and Seoul is being pressured and punished by Beijing to reverse its decision to accept the deployment of a U.S. THAAD missile defense in South Korea. Under these circumstances, these are our priority recommendations for the administration

• It should work to dissuade North Korea from an ICBM test. Publicly, the new administration should reaffirm that the U.S. would use military means against an ICBM that appeared to threaten the U.S. or one of our allies. Regular spring ROK-U.S. joint military exercises should be held, but calibrated and conducted to avoid giving Pyongyang extra pretext for a test. The Trump administration should appoint a senior envoy empowered to go to Pyongyang to convey openness to renewed diplomacy, while at the same time being clear about the consequences of an ICBM test. China will share this goal, and the new Trump administration should establish a dialogue with China on North Korea based on this shared interest rather than linked to other issues in the U.S.-China relationship, such as bilateral trade. The Trump administration should not negotiate the THAAD issue with Beijing but rather stick to the principle that this is a Seoul-Washington issue.
• The U.S.-ROK relationship will need early and special attention in 2017. Secretary of Defense Mattis’ early visit to the ROK was a wise move. With names already announced for Beijing and Tokyo, a new American ambassador for Seoul should be nominated soon. Despite the political leadership vacuum in Seoul, the Trump administration should strive for the closest possible diplomatic, political, and military coordination on North Korea with our South Korean allies. Trade and burden-sharing issues should not be front-burner issues during South Korea’s political transition. U.S. neutrality in the South Korean election, along with demonstrated respect for South Korea’s democracy, will be carefully monitored, and is essential, as is strengthening U.S. contacts and outreach across the political spectrum in South Korea.

Japan

The Abe administration is the most stable government Japan has had for many years. The prime minister wants to work with Washington, is prepared to deepen defense cooperation with the United States and others in the region, and is eager to lock in the commitments and arrangements negotiated in the TPP. There is a real opportunity to secure access for U.S. firms greater than achieved by any previous administration.

• Build upon arrangements negotiated in TPP to secure a U.S.-Japan free-trade agreement (FTA) that increases access for U.S. firms and locks in economic reforms initiated by the Abe government.
• Propose annual head of state level trilateral cooperation summits with Japan and South Korea and seek greater trilateral cooperation, particularly in the area of security cooperation. Caution Tokyo against steps backward on historical reconciliation.

Southeast Asia and the South China Sea

Southeast Asia is most vulnerable to and concerned about China’s actions and intentions. Countries in the region want the United States to counterbalance and constrain China but worry equally that the United States is unreliable and unequal to the challenge of protecting their interests while preserving American interests vis-à-vis China. Unless given a better option, they will lean toward China for economic and security reasons.

• The United States should anchor U.S. policy on the South China Sea (SCS) to an explicit commitment that no single country—not the US, not China, nor anyone else—should seek or enjoy a monopoly of ownership and control over that body of water. To underscore that commitment, the United States should execute freedom of navigation operations (FONOPs) in waters between and around the Spratly islands. These and other operations in the SCS should be conducted in conformity with the authoritative ruling on the status of its waters and land features issued in 2016 by the arbitral court convened for that purpose under the UN Convention on the Law of the Sea.
• The United States should also try, in concert with its allies and partners, to bring the SCS under international protection and management by a combination of claimant and user states, including the United States and China, based on international law. The Southeast Asia Maritime Security Initiative should be enlarged and upgraded to serve this purpose. If China declines to join, a chair at the table should remain empty should Beijing change its mind.

The U.S. should remain engaged with the process of regional and trans-Pacific institution building, including but not limited to the Association of Southeast Asian Nations (ASEAN) annual meetings, the East Asian Summit, and the Asia Pacific Economic Cooperation (APEC) forum, which will be hosted by Vietnam in 2017.

Full Report with Preface from Gi-Wook Shin and Introduction by Amb. Michael H. Armacost.

The policy recommendations published above are a summary included in the beginning of a 23-page report entitled “President Trump’s Asia Inbox.” You may view the full report here.

About the Contributors

Michael H. Armacost is a Shorenstein APARC Fellow and former U.S. ambassador to Japan and the Philippines.

Karl Eikenberry is the Oksenberg-Rohlen Fellow at Shorenstein APARC; director of the U.S.-Asia Security Initiative; former U.S. ambassador to Afghanistan, and Lieutenant General (Ret.), U.S. Army.

Donald K. Emmerson is a senior fellow emeritus at FSI; director of the Southeast Asia Program at Shorenstein APARC; and affiliated with FSI’s Abbasi Program in Islamic Studies.

Thomas Fingar is a Shorenstein APARC Fellow and has served as former first deputy director of national intelligence for analysis and chairman of the National Intelligence Council, among other positions.

Takeo Hoshi is the Henri H. and Tomoye Takahashi Senior Fellow in Japanese Studies and director of the Japan Program.

Gi-Wook Shin is the director of the Walter H. Shorenstein Asia-Pacific Research Center; senior fellow at the Freeman Spogli Institute for International Studies; director of the Korea Program; and the Tong Yang, Korea Foundation, and Korea Stanford Alumni Chair of Korean Studies, all at Stanford.

Daniel C. Sneider is the associate director for research at Shorenstein APARC, co-director of the Divided Memories and Reconciliation project and a former foreign correspondent.

Kathleen Stephens is the William J. Perry Fellow in the Korea Program at Shorenstein APARC and former U.S. ambassador to the Republic of Korea.

Information for Press.

The contributors are open to comment, interview and provide background information on the contents of the report, “President Trump’s Asia Inbox.” To inquire about availability, please contact Lisa Griswold, Shorenstein APARC Communications and Outreach Coordinator, at lisagris@stanford.edu or (650) 736-0656.

Related Press Coverage

Stanford report offers policy insights for the Trump administration, Caixin Media (in Chinese), Feb. 13, 2017

"Trump, do not bring up KORUS FTA and US forces cost-sharing until S. Korea's next presidential election," Yonhap News and various other outlets (in Korean), Feb. 13, 2017

China looks to US to resolve N. Korea nuclear issue, The Straits Times (in English), Feb. 15, 2017

Stanford experts offer policy proposals, insights on US-Asia relations, Stanford News Service (in English), Feb. 15, 2017

Unsettled, unstable and drifting: Today's US-East Asia relationship, Medium (in English), Feb. 16, 2017

Why Japan will also be "convenient" for the Trump administration, Tokyo Business Today (in Japanese), Feb. 18, 2017

Study: Managing China relationship most consequential to US, China Daily USA (in English), Feb. 21, 2017

How the Trump administration should address China, Tokyo Business Today (in Japanese), Feb. 23, 2017

Fears of Trump giving China free reign in Asia misplaced, Asia Times (in English), Feb. 24, 2017

A hot springs summit between Japanese Prime Minister Shinzo Abe and Russian President Vladimir Putin next week hopes to solve the 70-year-old dispute over an isolated string of islands that Russian and Japanese nationalists both claim as their own, according to Daniel Sneider, associate director for research at the Shorenstein Asia-Pacific Research Center.

Read the commentary piece in Foreign Policy here.

Scholars and affiliates of Stanford’s Shorenstein Asia-Pacific Research Center (APARC) and experts in the Freeman Spogli Institute for International Studies have offered commentary to media about the U.S. presidential election and its impact on U.S.-Asia relations.

The next administration's policy directions were also the focus of Shorenstein APARC-sponsored events held in Seoul, Stanford and Tokyo. A select list of links to commentary and an article about the Stanford event are located below. The list will continue to be updated.

Post-election commentary

"Trump says he won't ratify the TPP, what are the implications?" cites Donald K. Emmerson, Talk Media News, Nov. 29, 2016

"U.S. economy and security under the new president," television segment with Takeo Hoshi, also cites symposium held in Tokyo, Nikkei CNBC (in Japanese), Nov. 18, 2016

"Our allies are afraid. Here's how Trump can reassure them.," by Michael McFaul, from Seoul, Washington Post, Nov. 17, 2016

"Trump unlikely to drastically change U.S. defense policy on South Korea," cites Shorenstein APARC affiliates and symposium held in Seoul, The Korea Herald, Nov. 15, 2016

"Int'l community needs realistic goal for N.K. nuke talks," interview with William J. Perry, Yonhap News (in English and Korean), Nov. 15, 2016

"The Repudiation of American Internationalism and What It Means for Japan," by Daniel Sneider, Toyo Keizai (in English and Japanese), Nov. 11, 2016

"S.Korea-U.S. alliance won't change because of the election," cites Kathleen Stephens, Yonhap News, Nov. 9, 2016

"U.S. Economic and Foreign Policy under the New Administration," includes video of the Tokyo panel discussion, Nov. 20, 2016

Pre-election commentary

"Stanford scholars analyze the next U.S. administration's Asia-Pacific policy," Caixin Media (in Chinese), Nov. 7, 2016

"Shorenstein APARC scholars explore Asia policy challenges facing next administration," Shorenstein APARC, Oct. 31, 2016

Cautious optimism in Asia toward Trump administration

By Lisa Griswold

U.S. President Barack Obama’s term will end in January 2017 and a new administration led by Donald Trump is expected to take office, so: what does this mean for U.S. policy toward Asia?

A panel discussion featuring scholars from the Shorenstein Asia-Pacific Research Center (APARC) in the Freeman Spogli Institute (FSI) convened at Stanford on Tuesday to discuss policy directions and to offer perspectives of reactions to the election in South Korea and Japan, having just returned from there.

“This election was contentious, divisive, and at many times, surprising. There were different opinions about the results, but in general, people expressed a lot of concern throughout Asia,” Stanford professor Gi-Wook Shin said in his introductory remarks.

Shin, who is also the director of Shorenstein APARC, moderated the event, which included remarks from Michael Armacost, a Shorenstein APARC fellow and former U.S. ambassador to Japan and the Philippines; Kathleen Stephens, the William J. Perry Distinguished Fellow and former U.S. ambassador to the Republic of Korea; and Takeo Hoshi, an FSI senior fellow and director of Shorenstein APARC’s Japan Program.

Unprecedented election

Trump, who has never before held a political role, has unique credentials compared to his predecessors and his views break from the Republican Party establishment, traditionally pro-free trade and active in foreign policy.

“It’s difficult to guess what Trump’s foreign policy reflexes will be,” said Armacost, a former National Security Council official, who emphasized that international relations are often prompted by unplanned occurrences.

Trump has said, for example, that he would withdraw the United States from the North American Free Trade Agreement, rescind its membership in the World Trade Organization, and scrap the Trans-Pacific Partnership (TPP), a 12-nation trade deal brokered by the Obama administration.

The president-elect, however, has amended some views communicated during the campaign, and is likely to rely on his national security advisors for guidance on foreign policy issues.

“Trump may well be a skillful bargainer, but I suspect that striking a real estate deal is a lot simpler than negotiating with foreign sovereign governments on issues that carry a lot of cultural and historical baggage,” said Armacost, who served as U.S. undersecretary of state for political affairs from 1984-89.

“Still his pragmatism, I think, is a virtue. Trump seems a smart fellow, and he sure has a steep learning curve ahead. We can only hope he will manage it well,” he added.

Uncertain path, opportunity

Echoing Armacost, Hoshi said Trump’s changed positions over the past few weeks have made it difficult to predict what’s ahead for U.S. economic and trade policy.

Trump, who campaigned with a message of restoring lost jobs in America, urged that the U.S. government reform several areas of economic policy and governance, such as its interaction with the Federal Reserve and implementation of the Dodd-Frank Act, a set of regulatory reform measures enacted in response to the 2008 financial crisis.

Hoshi, an economist, suggested Trump faces an uphill battle in his attempts to reconcile campaign rhetoric and political reality, especially in the midst of the president-elect’s break from the Republican Party establishment and promises made to voters.

The view of the election from Japan, Hoshi added, is that the United States is receding from its leadership role in the world, particularly in the area of trade.

Trump promised early on to nix the TPP and has remained steadfast, releasing a video message shortly after the election confirming his position. That decision is interpreted in Japan as a symbol of America’s withdrawal, said Hoshi, noting that a similar sentiment on trade would have been expected if Hillary Clinton were elected since she too promised to rollback the deal.

“The United States was the leader behind the TPP, but now it’s saying ‘we are out.’ For Asian people, this represents a really drastic change and a loss of credibility,” Hoshi said.

Asian countries, however, could use a void left by an American departure in trade policy to step in. “Maybe some countries will see it as an opportunity,” he said.

Unease over democratic processes

Stephens, who was in Seoul when the U.S. election results were called, said Koreans shared “a sense of unease about our [mutual] democratic processes.”

South Korea, like the United States, has a democratic system of government – a republic. The Asian country is currently embroiled in its own political upheaval as calls for the resignation of President Park Geun-hye continue following accusations of corruption.

Stephens, who served in the U.S. Foreign Service for 35 years before coming to Stanford, also noted that there was some trepidation about a Trump-led administration in Korean policy circles. It’s a known ambition of policy advisors to forge connections in anticipation of the new administration, but the Trump/Pence win was so unexpected that now there’s a “scramble to make those relations,” she said.

The president-elect’s phone calls and meetings with foreign leaders provided some reassurance though, particularly with South Korea and Japan, two countries with formal U.S. alliances that Trump had initially questioned over their nuclear policy and cost of local U.S. military presence, she said.

“The priority for the Trump administration should be to affirm the importance of U.S. alliances and to make very clear the commitment to securing them,” Stephens said.

A new U.S. administration also provides an opportunity to undertake a policy evaluation, which could carry implications for South Korea, in trade policy and its attempt to reengage North Korea, she said.

An in memoriam event recognizing the legacy of Stephen W. “Steve” Bosworth was held last week. Organized by the Shorenstein Asia-Pacific Research Center (APARC), the event drew Stanford faculty, students and community members, paying tribute to the foreign affairs scholar and three-time U.S. ambassador.

Bosworth, who died in January 2016, was the Payne Distinguished Lecturer at the Freeman Spogli Institute for International Studies in 2014. During that time, he delivered three lectures at Stanford that highlighted lessons from his tenure in public service and in academia as dean of the Fletcher School of Law and Diplomacy and senior fellow at the Belfer Center for Science and International Affairs.

Bosworth had also been a key participant over the years at Shorenstein APARC. He was active with the New Beginnings project that sought to bolster the U.S.-South Korea alliance and the Koret Workshop series focused on dialogue about North Korea.

Shorenstein APARC Distinguished Fellow Michael Armacost described him as a “longtime friend and colleague” and a mentor, having both worked to lay groundwork for the restoration of democracy in the Philippines as U.S. ambassador there.

“I admired Steve as a consummate diplomat, but he was a lot more than that,” Armacost said. “He was a man of intellectual acuity. He was a man of moral fortitude. He had a wry sense of humor. And, he had that remarkable ability of being able to stand-up and speak thoughtfully about almost any subject.”

Armacost was followed by remarks from Kathleen Stephens, the William J. Perry Distinguished Fellow and former U.S. ambassador to South Korea, and Sung Kim, the U.S. special envoy for North Korea, and discussion with the audience.

The collection of Bosworth’s Payne lectures has been published as a booklet. The booklet can be viewed here.

As a new U.S. administration assumes office next year, it will face numerous policy challenges in the Asia-Pacific, a region that accounts for nearly 60 percent of the world’s population and two-thirds of global output.

Despite tremendous gains over the past two decades, the Asia-Pacific region is now grappling with varied effects of globalization, chief among them, inequities of growth, migration and development and their implications for societies as some Asian economies slow alongside the United States and security challenges remain at the fore.

Seven scholars from Stanford’s Shorenstein Asia-Pacific Research Center (APARC) offered views on policy challenges in Asia and some possible directions for U.S.-Asia relations during the next administration.

View the scholars' commentary by scrolling down the page or click on the individual links below to jump to a certain topic.

U.S.-China relations

U.S.-Japan relations

North Korea

Southeast Asia and the South China Sea

Global governance

Population aging .

Trade

U.S.-China relations

By Thomas Fingar

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Alarmist predictions about China’s rise and America’s decline mischaracterize and overstate tensions in the relationship. There is little likelihood that the next U.S. administration will depart from the “hedged engagement” policies pursued by the last eight U.S. administrations. America’s domestic problems cannot be solved by blaming China or any other country. Indeed, they can best be addressed through policies that have contributed to peace, stability and prosperity.

Strains in U.S.-China relations require attention, not radical shifts in policy. China is not an enemy and the United States does not wish to make it one. Nor will or should the next administration resist changes to the status quo if change can better the rules-based international order that has served both countries well. Washington’s objective will be to improve the liberal international system, not to contain or constrain China’s role in that system.

The United States and China have too much at stake to allow relations to become dangerously adversarial, although that is unlikely to happen. But this is not a reason to be sanguine. In the years ahead, managing the relationship will be difficult because key pillars of the relationship are changing. For decades, the strongest source of support for stability in U.S.-China relations has been the U.S. business community, but Chinese actions have alienated this key group and it is now more likely to press for changes than for stability. A second change is occurring in China. As growth slows, Chinese citizens are pressing their government to make additional reforms and respond to perceived challenges to China’s sovereignty.

The next U.S. administration is more likely to continue and adapt current policies toward China and Asia more broadly than to pursue a significantly different approach. Those hoping for or fearing radical changes in U.S. policy will be disappointed..

Thomas Fingar is a Shorenstein Distinguished Fellow and former chairman of the U.S. National Intelligence Council. He leads a research project on China and the World that explores China’s relations with other countries.

U.S.-Japan relations

By Daniel Sneider

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Three consecutive terms held by the same party would certainly preserve the momentum behind the ‘pivot to Asia’ strategy of the last few years, especially on the security front. Still there are some dangers ahead. If Japan moves ahead to make a peace treaty with Russia, resolving the territorial issue and opening a flow of Japanese investment into Russia, that could be a source of tension. The new administration may also want to mend fences early with China, seeking cooperation on North Korea and avoiding tensions in Southeast Asia.

The big challenge, however, will be guiding the TPP through Congress. While there is a strong sentiment within policy circles in favor of rescuing the deal, perhaps through some kind of adjustment of the agreement, insiders believe that is highly unlikely. The Sanders-Warren wing of the Democratic party has been greatly strengthened by this election and they will be looking for any sign of retreat on TPP. Mrs. Clinton has an ambitious agenda of domestic policy initiatives – from college tuition and the minimum wage to immigration reform – on which she will need their support. One idea now circulating quietly in policy circles is to ‘save’ the TPP, especially its strategic importance, by separating off a bilateral Japan-U.S. Free Trade Agreement. Tokyo is said to be opposed to this but Washington may put pressure on for this option, leaving the door open to a full TPP down the road. .

Daniel Sneider is the associate director for research and a former foreign correspondent. He is the co-author of Divergent Memories: Opinion Leaders and the Asia-Pacific Wars (Stanford University Press, 2016) and is currently writing about U.S.-Japan security issues.

North Korea

By Kathleen Stephens

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From an American foreign policy perspective, North Korea policy challenges will be inherited by the next president as “unfinished business,” unresolved despite a range of approaches spanning previous Republican and Democratic administrations. The first months in a new U.S. president’s term may create a small window to explore potential new openings. The new president should demonstrate at the outset that North Korea is high on the new administration’s priority list, with early, substantive exchanges with allies and key partners like China to affirm U.S. commitment to defense of its allies, a denuclearized Korean Peninsula and the vision agreed to at the Six-Party Talks in the September 2005 Joint Statement of Principles. Early messaging to Pyongyang is also key – clearly communicating the consequences of further testing or provocations, but at the same time signaling the readiness of the new administration to explore new diplomatic approaches. The appointment of a senior envoy, close to the president, could underscore the administration’s seriousness as well as help manage the difficult policy and political process in Washington itself.

2017 is a presidential election year in South Korea, and looks poised to be a particularly difficult one. This will influence Pyongyang’s calculus, as will the still-unknown impact of continued international sanctions. The challenges posed by North Korea have grown greater with time, but there are few new, untried options acceptable to any new administration in Washington. Nonetheless, the new administration must explore what is possible diplomatically and take further steps to defend and deter as necessary. .

Kathleen Stephens is the William J. Perry Distinguished Fellow and former U.S. ambassador to the Republic of Korea. She is currently writing and researching on U.S. diplomacy in Korea.

Southeast Asia and the South China Sea

By Donald K. Emmerson

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A new U.S. administration will be inaugurated in January 2017. Unless it wishes to adapt to such outcomes, it should:

(1) renew its predecessor’s refusal to endorse any claim to sovereignty over all, most, or some of the South China Sea and/or its land features made by any of the six contending parties—Brunei, China, Malaysia, the Philippines, Taiwan, Vietnam—pending the validation of such a claim under international law.

(2) strongly encourage all countries, including the contenders, to endorse and implement the authoritative interpretation of the U.N. Convention on the Law of the Sea (UNCLOS) issued on July 12, 2016, by an UNCLOS-authorized court. Washington should also emphasize that it, too, will abide by the judgment, and will strive to ensure American ratification of UNCLOS.

(3) maintain its commitment to engage in publicly acknowledged freedom of navigation operations (FONOPs) in the South China Sea on a regular basis. Previous such FONOPs were conducted in October 2015 by the USS Lassen, in January 2016 by the USS Wilbur, in May 2016 by the USS Lawrence, and in October 2016 by the USS Decatur. The increasingly lengthy intervals between these trips, despite a defense official’s promise to conduct them twice every quarter, has encouraged doubts about precisely the commitment to freedom of navigation that they were meant to convey.

(4) announce what has hitherto been largely implicit: The FONOPs are not being done merely to brandish American naval prowess. Their purpose is to affirm a core geopolitical position, namely, that no single country, not the United States, nor China, nor anyone else, should exercise exclusive or exclusionary control over the South China Sea.

(5) brainstorm with Asian-Pacific and European counterparts a range of innovative ways of multilateralizing the South China Sea as a shared heritage of, and a resource for, its claimants and users alike. .

Donald K. Emmerson is a senior fellow emeritus and director of the Southeast Asia Program. He is currently editing a Stanford University Press book that examines China’s relations with Southeast Asia.

Global governance

By Phillip Y. Lipscy

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Global economic activity is increasingly shifting toward Asia – most forecasts suggest the region will account for about half of the global economy by the midpoint of the 21^st century. This shift is creating important incongruities within the global architecture of international organizations, such as the United Nations, International Monetary Fund and World Bank, which are a central element of the U.S.-based international order and remain heavily tilted toward the West in their formal structures, headquarter locations and personnel compositions. This status quo is a constant source of frustration for policymakers in the region, who seek greater voice consummate with their newfound international status. 

The next U.S. administration should prioritize reinvigoration of the global architecture.  One practical step is to move major international organizations toward multiple headquarter arrangements, which are now common in the private sector – this will mitigate the challenges of recruiting talented individuals willing to spend their careers in distant headquarters in the West. The United States should join the Asian Infrastructure Investment Bank, created by China, to tie the institution more closely into the existing architecture, contribute to its success and send a signal that Asian contributions to international governance are welcome. The Asian rebalance should be continued and deepened, with an emphasis on institution-building that reassures our Asian counterparts that the United States will remain a Pacific power. .

Philip Y. Lipscy is an assistant professor of political science and the Thomas Rohlen Center Fellow. He is the author of the forthcoming book Renegotiating the World Order: Institutional Change in International Relations (Cambridge University Press, 2017).

Population aging

By Karen Eggleston

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China’s recent announcement of a universal two-child policy restored an important dimension of choice, but it will not fundamentally change the trajectory of a shrinking working-age population and burgeoning share of elderly. China’s population aged 60 and older is projected to grow from nearly 15 percent today to 33 percent in 2050, at which time China’s population aged 80 and older will be larger than the current population of France. This triumph of longevity in China and other Asian countries, left unaddressed, will strain the fiscal integrity of public and private pension systems, while urbanization, technological change and income inequality interact with population aging by threatening the sustainability and perceived fairness of conventional financing for many social programs.

Investment in human capital and innovation in social and economic institutions will be central to addressing the demographic realities ahead. The next administration needs to support those investments as well as help to strengthen public health systems and primary care to control chronic disease and prepare for the next infectious disease pandemic, many of which historically have risen in Asia. .

Karen Eggleston is a senior fellow and director of the Asia Health Policy Program. She is the editor of the recently published book Policy Challenges from Demographic Change in China and India (Brookings Institution Press/Shorenstein APARC, 2016).

Trade

By Yong Suk Lee

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Anti-globalization sentiment has ballooned in the past two years, particularly in regions affected by the import competition from and outsourcing to Asia. However, some firms and workers have benefited from increasing trade openness. The U.S.-Korea Free Trade Agreement of 2012, for example, led to substantial growth in exports in the agricultural, automotive and pharmaceutical sectors. Yet, there are winners and losers from trade agreements. Using an economist’s hypothetical perspective, one would assume firms and workers in the losing industry move to the exporting sector and take advantage of the gains from trade. In reality, adjustment across industries and regions from such movements are slow. Put simply, a furniture worker in North Carolina who lost a job due to import competition cannot easily assume a new job in the booming high-tech industry in California. They would require high-income mobility and a different skill set.

Trade policy needs to focus on facilitating the transition of workers to different industries and better train students to prepare for potential mobility in the future. Trade policy will also be vital in determining how international commerce is shaped. As cross-border e-commerce increases, it will be in the interest of the United States to participate in and lead negotiations that determine future trade rules. The Trans-Pacific Partnership should not simply be abandoned. The next administration should educate both policymakers and the public about the effects of trade openness and the economic and strategic importance of trade agreements for the U.S. economy.

Yong Suk Lee is the SK Center Fellow and deputy director of Korea Program. He leads a research project focused on Korean education, entrepreneurship and economic development.