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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.
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U.S. Secretary of State Rex Tillerson announced in Seoul “the policy of strategic patience has ended” and “all options were on the table” regarding the United States’ efforts to address the North Korean nuclear threat. Kathleen Stephens, the William J. Perry Fellow in Shorenstein APARC’s Korea Program, spoke on PBS NewsHour about Tillerson’s remarks, the viability of tougher sanctions against North Korea, and deployment of the U.S. ballistic missile defense system (THAAD) to South Korea.

Watch and read about the interview here.

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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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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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Shorenstein Asia-Pacific Research Center
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Gi-Wook Shin
Michael H. Armacost
Takeo Hoshi
Thomas Fingar
Kathleen Stephens
Donald K. Emmerson
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Young-ju Choi joins the Walter H. Shorenstein Asia-Pacific Research Center as a visiting scholar during the 2016-2017 academic year.  Her research interests are focused on North Korea and Northeast Aisa regional dynamics and the prospective changes of Korea-US relationship post US presidential election this year. She is also currently researching how the Korean mass media is shaping views on Korea’s presidential scandal. Young-ju is an anchor and a journalist at YTN, the first 24-hour news agency in South Korea. In her trademark casual and confident style, Young-ju has anchored all the contemporary major breaking news that have unfolded across the globe. Young-ju also covered a number of stories ranging from domestic politics, international affairs, including the Korean Peninsula issues and Northeast Asia political dynamics.  Young-ju graduated with honors from Seoul National University where she obtained a bachelor's degree in Geography. She enjoys traveling all over the globe and enjoys swimming, scuba diving and golf.
Visiting Scholar
616 Serra StreetEncina Hall E301Stanford, CA94305-6055
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Taeho Kim joins Shorenstein APARC as a Visiting Scholar during 2016-2017 academic year.

Kim's research interest is in South Korea's national security issues and preparation for reunification of the Korean Peninsula. He was a National Assembly Member from 2011 to 2016 and governor of South Gyeongsang Province from 2004 to 2010 in Korea. He holds a BA and an MA in agricultural education, and a PhD in education from Seoul National University

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North Korea conducted its fifth nuclear test in the wake of the G20 summit earlier this month. The United States immediately condemned North Korea’s behavior in a statement delivered by the White House, and a few days later, flew a set of bombers near the U.S. military base in Osan, South Korea.

Writing for Toyo KeizaiDaniel Sneider, associate director for research at the Shorenstein Asia-Pacific Research Center, said a consistent strategic and military reasoning drives the North Korean regime’s decision to test nuclear missiles. His analysis piece can be viewed in English and Japanese.

Sneider also spoke with Slate about how the next U.S. administration could respond, suggesting that a deployment of additional nuclear-capable aircraft at U.S. bases in Asia would send a strong signal to Pyongyang. The Slate article is available at this link.

South Korea has been seeking stronger international sanctions against North Korea since the test. As the country’s biggest trading partner, China is considered an important actor in the ability to influence North Korea. In the Korea Times, Sneider said a way to motivate China to augment their role in sanctions against North Korea is to remind Beijing that a continuation of North Korea's nuclear program would only lead to greater scale and capability of American military presence in the region. The Korea Times article is available at this link.

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A television shows breaking news about North Korea's long-range rocket launch in February 2016, Seoul, South Korea.
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In 2014 Ambassador Stephen W. Bosworth was a Payne Distinguished Lecturer at the Walter H. Shorenstein Asia-Pacific Research Center (APARC) in the Freeman Spogli Institute (FSI) of International Studies at Stanford University. Bosworth, who passed away in January 2016, was a three-time U.S. ambassador, served in numerous academic and government posts, and had an extensive career in the United States Foreign Service.
 
To commemorate his career in public service as well as his contributions to the center and to FSI, Shorenstein APARC has published his three lectures in this book. The content ranges from Bosworth's diplomatic career and his thoughts on the promotion of democracy, to the North Korean nuclear issue, to the overall state of the U.S. alliances in Asia.
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In January 2004, a delegation from Stanford University led by Prof. John W. Lewis and joined by one of the authors, Siegfried S. Hecker, at the time senior fellow at the Los Alamos National Laboratory and former director, was invited to visit the Yongbyon Nuclear Center. This visit by Hecker and follow-on visits during each of the next six consecutive years contributed substantially to our knowledge of North Korean nuclear activities. In this report, we utilize information obtained during the Stanford delegation visits, along with other open-source information, to provide a holistic assessment of North Korean nuclear developments from the demise of the Agreed Framework through November 2015. To read the full article, click here.

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In a recent television interview with the Korean Broadcasting System (KBS), SK Center Fellow Yong Suk Lee said that tougher economic sanctions on North Korea are not achieving their intended effects and may actually be exacerbating inequality instead. Analyzing satellite night lights data, Lee found that the North Korean regime has avoided the impact of sanctions by reallocating electricity from poor, rural areas to urban areas where privileged elites reside. To view the episode (in Korean), click here.

Lee published the research in a working paper, “Countering Sanctions: The Unequal Geographic Impact of Economic Sanctions in North Korea,” which was highlighted in a Stanford News Service article in Oct. 2014. Lee also presented his preliminary findings at a public seminar at Stanford.

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Pyongyang at nighttime.
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