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Noa Ronkin
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In her acclaimed book The Third Revolution: Xi Jinping and the New Chinese State, Chinese domestic and foreign policy expert Elizabeth Economy argues that Xi Jinping’s dual-reform trajectories—a more authoritarian system at home and a more ambitious foreign policy abroad—provide Beijing with new levers of influence that the United States must learn to use to protect its own interests.
 
Economy, the C. V. Starr senior fellow and director for Asia studies at the Council on Foreign Relations and a distinguished visiting fellow at Stanford University's Hoover Institution, kicked off the China Program’s 2019 winter colloquia with a discussion of the transformations underway in China today and the future of U.S.-China relations.
 
Speaking to a packed audience, Economy described how, in the process of pursuing his vision of the rejuvenation of the Chinese dream, Xi Jinping has upended much of Deng Xiaoping’s "second revolution" and has put in motion four significant strategic shifts in Chinese domestic and foreign policy.
 
The first shift is a move away from Deng’s consensus- and collective-based decision-making process back toward a more single-man, authoritarian role. The second is a reassertion of the Chinese Communist Party more deeply into the everyday political and economic lives of the Chinese people. The third is a creation of a virtual wall of restrictions and regulations that allows Xi and the rest of the Chinese leadership to control more closely what comes into the country and what goes out. The fourth shift, the most visible one to people outside China, is the move from Deng’s low-profile foreign policy to a far more ambitious foreign policy.
 
This foreign policy shift, said Economy, is especially noteworthy in three areas: first, in Xi’s move from staking claims around Chinese sovereignty to realizing them; second, in his Belt and Road Initiative; and third, in his effort to reform institutions of global governance so that they reflect Chinese values and norms.
 
How should the United States address these changes in China’s domestic and foreign policy? Economy listed four ways of response: first, cooperation, namely, collaborating with China on global problems such as those concerning public health or the environment; second, coordination with U.S. allies; third, countering China by pushing back on, for example, its South China Sea claims and incidents of intellectual property infringement; and finally, competing with China by investing domestically in areas including education and research and technological development.
 
Listen to Economy’s discussion. A transcript is also available below.
 

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Elizabeth Economy speaking at a podium Thom Holme
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As tension grows between China and the United States, its effects are felt across Asia. APARC's Southeast Asia Program Director Donald K. Emmerson sat down with Michael McFaul, FSI's Director and host of FSI's podcast World Class, to talk about why Southeast Asia in particular is caught in that rising tension between China and the United States and what can be done to prevent it from becoming a battle ground for a new Cold War between the two superpowers.

Listen to the conversation:

 

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The United States is prepared to pursue “simultaneously and in parallel” all of the commitments outlined at the Trump-Kim Singapore Summit, said the U.S. Special Representative for North Korea Stephen Biegun at an event hosted by Shorenstein APARC on Thursday, January 31.
 
Biegun's remarks, delivered as he prepares to travel to South Korea for meetings with North and South Korean officials, were his first public address since he began his appointment in August 2018. On behalf of U.S. Secretary of State Mike Pompeo, Mr. Biegun directs all U.S. policy on North Korea and leads negotiations.
 
Just prior to the event President Trump said he will announce next week the site and date for the second summit he plans with Kim Jong Un at the end of February. Biegun noted that the U.S. is prepared to move forward “provided that North Korea likewise fulfills its commitment to final, fully verified denuclearization” and that “there are many challenges that make it especially complicated for the United States and North Korea to embark upon a diplomatic initiative of this magnitude.” But he also highlighted several areas of progress and concluded his remarks by saying, “Now is the opportunity. Now is the moment. The United States is ready to turn the vision outlined by President Trump and Chairman Kim at Singapore into reality.”
 
Mr. Biegun’s public address was followed by a conversation with Robert Carlin, a specialist on U.S.–North Korea relations and a visiting scholar at Stanford’s Center for International Security and Cooperation. The event concluded with a question-and-answer session. 
 
You can read a transcript of Mr. Biegun’s remarks.
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Stephen Biegun delivers remarks at Stanford at a Shorenstein APARC event. Linda A. Cicero / Stanford News Service
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Shorenstein APARC Stanford University Encina Hall Stanford, CA 94305-6055
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David M. (“Mike”) Lampton is the Oksenberg-Rohlen Fellow at FSI and affiliated with Shorenstein APARC. Lampton (BA ’68, MA ’71, PhD ’74), an expert in Chinese politics and U.S.-China relations, is the Hyman Professor of China Studies and Director of the China Studies Program at the Johns Hopkins School of Advanced International Studies Emeritus.   Lampton's current book project is focused on the development of high-speed railways from southern China to Singapore. He is the author of a dozen books and monographs, including Following the Leader: Ruling China, from Deng Xiaoping to Xi Jinping (University of California Press, 2014, and second edition 2019) and The Three Faces of Chinese Power: Might, Money, and Minds (University of California Press, 2008). He has testified at multiple congressional and commission sessions and published numerous articles, essays, book reviews, and opinion pieces in many venues popular and academic in both the western world and in Chinese-speaking societies, including Foreign Affairs, Foreign Policy, The American Political Science Review, The China Quarterly, The New York Times, The Washington Post, and many others.   Over the course of his career, Lampton accompanied American public and private sector leaders to China, and Chinese leaders to the United States. Formerly President of the National Committee on United States-China Relations, Lampton consults with government, business, and social sector organizations, and has served on the boards of several non-governmental and educational organizations, including the Asia Foundation for which he served as chairman. The recipient of many academic awards, he is an Honorary Senior Fellow of the American Studies Institute of the Chinese Academy of Social Sciences, former Gilman Scholar at Johns Hopkins, and the inaugural winner of the Scalapino Prize in 2010, awarded by the National Bureau of Asian Research and the Woodrow Wilson International Center for Scholars in recognition of his exceptional contributions to America’s understanding of the vast changes underway in Asia.
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JANUARY 30 UPDATE
 
A live video stream of the discussion with Stephen Biegun will be available through Shorenstein APARC's Facebook page: https://www.facebook.com/stanfordsaparc.

 

Stephen Biegun, the U.S. Special Representative for North Korea, will deliver public remarks as part of a discussion on the DPRK hosted by Stanford University’s Walter H. Shorenstein Asia-Pacific Research Center (Shorenstein APARC) on Thursday, January 31, at 12 p.m. As Special Representative, on behalf of U.S. Secretary of State Mike Pompeo Mr. Biegun directs all U.S. policy on North Korea, leads negotiations, and spearheads U.S. diplomatic efforts with allies and partners.
 
Following his opening remarks, Mr. Biegun will be in conversation with Robert Carlin, an expert on U.S.-North Korea relations and a visiting scholar at Stanford’s Center for International Security and Cooperation. The event will conclude with a question-and-answer session. It will be held at the Koret-Taube Conference Center at the John A. and Cynthia Fry Gunn SIEPR Building.
 
The event is open to the Stanford community and the public, but a Stanford or government-issued ID must be presented for admission.
 
The event is on-the-record but off-camera: no photography or video recording will be allowed. Cameras will not be allowed inside the venue.

Media Advisory:
Journalists interested in covering the discussion on the DPRK with Special Representative for North Korea Stephen Biegun should contact Shorenstein APARC’s Associate Director for Communications and External Relations Noa Ronkin at noa.ronkin@stanford.edu by 12:00 p.m., Wednesday, January 30, to register. At the venue, they will be required to present a press credential from an established news organization. Freelance reporters should email a letter from the news organization for which they work to Noa Ronkin by the January 30 deadline. The press area is limited and press seating is not guaranteed.
 
As noted above, the event is on-the-record but off-camera.
 
Attendees and media should enter the campus via Galvez Street and park at the Galvez Lot or other designated, paid visitor parking. See also Stanford’s parking map. No parking at the Stanford Oval is allowed.
 

 

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Sung Hyun "Andrew" Kim was a visiting scholar at the Walter H. Shorenstein Asia-Pacific Research Center (APARC) through December 2019. Previously he was William J. Perry visiting scholar at APARC. Kim, who retired from the Central Intelligence Agency in 2018 as a senior intelligence officer after 28 years of service, was assistant director of the CIA's Korea Mission Center, where he helped secure the foundation for the Trump-Kim summit of June 2018.  At Stanford, he will contribute to studies of current North Korea diplomacy in comparison to previous negotiations with the DPRK, a research scope that he refers to as "U.S.-DPRK summit of the century and the tide of history."  Kim will also participate in policy engagement regarding North Korea issues through Shorenstein APARC and its Korea Program.

Kim established the CIA's Korea Mission Center in April 2017 in response to a presidential initiative to address North Korea's longstanding threat to global security. As part of his role as head of the Mission Center, he managed and guided CIA Korean analysts in providing strategic and tactical analytic products for a range of policymakers. He accompanied CIA Director and then Secretary of State Mike Pompeo to Pyongyang in meeting with the North Korean leader Kim Jong Un several times. Formerly he served as the Agency's associate deputy director for operations and technology, leading all efforts to update operational technology and incorporate a state-of-the-art doctrine into CIA training curricula.

Earlier in his career, Kim served as the CIA's chief of station in three major East Asian cities, while also managing the intelligence relationship with politically and militarily complicated foreign countries and advancing U.S. interests. In recognition of his many contributions, Kim was honored by the Agency with the Director's Award (2018), Presidential Rank Award (2012), and the Donovan Award (1990). He speaks fluent Korean, Japanese, and Mandarin Chinese.

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This post was originally published by PacNet Commentary, a publication of Pacific Forum.

North Korea’s state-owned news agency ran a wire story with tremendous significance just before Christmas, making clear that unilateral denuclearization is not going to happen. As part of a detailed explanation of Pyongyang’s position, it said: “When we refer to the denuclearization of the Korean peninsula, it, therefore, means removing all elements of nuclear threats from the areas of both the north and the south of Korea and also from surrounding areas from where the Korean peninsula is targeted. This should be clearly understood.” The text also states that “the denuclearization of the Korean peninsula means ‘completely removing the nuclear threats of the U.S. to the DPRK.’”
 
Pyongyang has long held that their nuclear weapons are a necessary deterrent and has made similar statements in the past, but not so clearly, nor with such a detailed explanation, nor at such a crucial time. Why did they choose to do so at the very end of 2018? There is a degree of unsatisfactory speculation that must take place to try to answer such a question, but we can see a few key elements of the negotiating procedure.
 
The North Koreans have made it clear they want to deal with President Trump himself, probably correctly assessing that he is more likely to make concessions or take significant risks than are his subordinates. Moreover, working-level negotiations have moved slowly over the past several months.
 
The DPRK statement, released in a semi-public way on the newswire, might have been an attempt to get the issue clearly and squarely on the president’s desk. Perhaps the North Koreans don’t believe Secretary of State Mike Pompeo is relaying messages to Trump. Or perhaps the recent retirement of the CIA’s Andrew Kim, who has liaised with the North Koreans alongside and for Pompeo, worried Pyongyang. Stephen Biegun, the new US special representative for North Korea, is an unknown quantity to them. Pyongyang probably didn’t want to resume and rehash this year’s logjam with Biegun in the new year.
 
This shift in communication strategy fits the North Korean political calendar. The New Year Joint Editorial frames the Korean Worker’s Party’s positions for the year and all adult North Koreans study the adjustments in the party line for several weeks in January. This includes North Koreans who interface with the outside world: in 2019 they will present to their foreign interlocutors a specific set of demands based on this clearer definition of “denuclearization.”
 
This leaves President Trump in a bit of a bind. He has to decide if he wants to proceed with the peace and denuclearization process as North Korea has defined it. He could choose a couple different paths.
 
First, Trump appears to have very few deeply held beliefs about the international order, other than that the US has generally been taken advantage of on trade and multilateral defense. He certainly doesn’t care much for alliances. One could imagine him saying, “that’s fine, we could remove our nuclear umbrella from South Korea” once we move toward denuclearization of the north. This would face tremendous pushback from the policy and military communities in the US as well as from allies in Asia, however. It would be the sort of pronouncement that would leave him isolated from much of his administration, Congress, and the pundit community that comments on TV; it would be hard to sustain this position.
 
More likely, he could say, “fine, let’s talk about a freeze on your program and worry about denuclearization later.” This seems more plausible for several reasons.
 
First, his core constituency doesn’t really care about denuclearization. His base wants to see Trump keep winning and if he tells them this is a win, they will likely accept it and move on. He has shown he is rhetorically able to slip out of nooses that other presidents would have choked on. He could conceivably pivot toward a freeze and cap of the North Korean nuclear program as an attainable goal and let the experts – who again largely don’t matter to his base – fight about whether this is good enough.
 
In that regard, Trump may well have been aided by a shift in the professional North Korea-watching community. Since roughly the fall of 2017, when war rhetoric and tensions were escalating, an increasing number of commentaries, events, and lectures with titles along the lines of “living with a nuclear North Korea” began to appear. There are now clearly more voices in the analyst community willing to say that the United States can tolerate and deter a nuclear North Korea. Such an opinion was incredibly scarce in 2016.
 
This is a situation that Trump helped foster. His administration helped raise the prospect of conflict that really did highlight the absurdity of war on the Korean Peninsula. The administration was essentially saying “we are willing to risk a nuclear war to prevent a country from being able to wage nuclear war.” This focused a lot of minds and helped clarify the fact that deterrence remains viable. Whether that means seeking to cooperate or continuing to pressure and isolate North Korea remains up for debate.
 
In defining that debate, if Trump decides he wants to try to change the US-DPRK relationship, he can point to the text of the Singapore Declaration that he and Kim Jong Un signed at their June 12 summit. While the declaration was much pilloried by observers as a “nothingburger,” it did promise to “establish new US–DPRK relations in accordance with the desire of the peoples of the two countries” and “to build a lasting and stable peace regime on the Korean Peninsula.” Those clauses come before a promise by both sides “to work toward complete denuclearization of the Korean Peninsula.”
 
President Trump could conceivably articulate a position in which a freeze of the North Korean program is a realistic goal that takes place alongside improved relations between the two countries, putting the issues of the DPRK’s stockpile and the US nuclear umbrella in Asia off for a later date.
 
This formula would be unsatisfactory to many people, but Trump has shown a willingness to upset traditional stakeholders. Besides, this is North Korea policy. Past attempts at pressure and engagement have been unsatisfactory to one group or another. The status quo is basically unsatisfactory to many, particularly in South Korea. Satisfying everyone will be impossible. Who Trump decides to upset will define how the next round of negotiations with the DPRK goes.
 
Andray Abrahamian is the 2018-19 Koret Fellow at APARC, Stanford University. He is an adjunct fellow at Pacific Forum and Griffith Asia Institute, an honorary fellow at Macquarie University, and a member of the US National Committee on North Korea. His book, North Korea and Myanmar: Divergent Paths, was published by McFarland in 2018.
 
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The 11th Annual Koret Workshop

A dramatic opening created by the unique strategic outlooks and personalities of Moon Jae-in, Kim Jong Un and Donald Trump instigated a series of highly symbolic summits in the early months of 2018. The process kicked off by those summits has bogged down, however, as the necessary compromises for an agreement between the United States and North Korea have proved elusive. This year's Koret Workshop will therefore invite experts from a variety of areas in order to reflect on what the stumbling blocks have been as well as prospects for overcoming them. Conference participants will work towards better understanding and supporting potential emerging solutions to the persistent conflict on the Korean Peninsula.

The workshop will consist of three sessions:

Session I: Assessments of Summit Diplomacy

Session II: Challenges and Opportunities in Media Coverage

Session III: Prospects and Pitfalls in the Near-Term

NOTE: During the conference, a keynote address is open to the general public. Please click here to register for the public event on March 15.
 
The annual Koret Workshop is made possible through the generous support of the Koret Foundation.

Bechtel Conference Center
Encina Hall, 616 Serra Street
Stanford University

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On November 29, 2018, a working group, co-chaired by Larry Diamond, senior fellow at the Freeman Spogli Institute for International Studies and at the Hoover Institution, and Orville Schell, Arthur Ross director of the Asia Society’s Center on U.S.-China Relations, released the report “Chinese Influence and American Interests: Promoting Constructive Vigilance," which documents the extent of China’s influence-seeking activities in American society. The report details a range of assertive and opaque “sharp power” efforts that China has stepped up within the United States in multiple sectors. These, argue members of the working group, penetrate deeply the social and political fabric of our democratic society and exploit its openness. 

APARC’s Donald K. Emmerson and Thomas Fingar provided the Chinese international affairs website Dunjiaodu with their own commentaries on the report. English language versions of both pieces were published by IPP Review (here and here), and are provided below.

APARC also hosted a special roundtable discussion of the report's findings and recommendations, featuring Diamond and Schell. You can listen to the event's audio recording on our website.


Comment on "Chinese Influence and American Interests"
By Donald K. Emmerson
December 24, 2018

Chinese Influence and American Interests: Promoting Constructive Vigilance is an important and timely report. It deserves translation into Chinese and wide circulation inside the PRC. It should be made available on-line for free downloading by people in China from all walks of life, including scholars, teachers, authors, entrepreneurs, and officials from Beijing down to the lowest levels of administration throughout the country. Relations between the US and China are far too important to the citizenries of our two countries to restrict access to the report to a miniscule proportion of China’s population—the elite English-reading few who enjoy privileged (uncensored) exposure to critical facts and comments regarding the Chinese government’s behavior abroad.

I willingly attended a meeting of the Working Group on Chinese Influence Activities in the United States. My academic specialty is Southeast Asia, including its relations with China, so I chose not contribute text to the report. Understandably, not every sentence in its the 199 pages exactly matches what I might have preferred to read or decided to write. (Relevant is my “Singapore and Goliath?” in the April 2018 Journal of Democracy.) But I supported the Working Group’s work and I agree with its outcome.

Included in the report is a dissenting opinion by Susan Shirk. I respect her view. But I am less concerned than she that the report risks “putting all ethnic Chinese under a cloud of suspicion.” The word “constructive” in the report’s subtitle explicitly conveys the Working Group’s desire neither to stereotype nor denigrate people of Chinese descent. At the meeting I attended, this wish was repeatedly expressed. I endorse and appreciate the editors’ caution that, alongside our critique, we “must be mindful to do no harm,” and that the report should not be misused to disparage ethnically Chinese people, who have indeed, as the editors state, made “enormous” contributions to American progress. I would merely enlarge that gratitude to include the economic, political, and cultural benefits attributable to ethnic Chinese individuals, historically and now, throughout the world—my own specialty, Southeast Asia, notably included.


"Flies and Barriers": On the China-U.S. Relationship
By Thomas Fingar
December 20, 2018

The recent report of the Working Group on Chinese Influence Activities in the United States was not timed to coincide with the 40th anniversary of Reform and Opening and the restoration of US-China diplomatic relations but it provides “teaching moment” opportunities for reflection on the ways in which China and the United States have managed the challenges of deeper engagement. I hope that the full report will be available in China and urge readers of this commentary to read it and to think about the issues it raises. I had no role in the preparation of the report but concur with the views expressed by Susan Shirk in her dissenting opinion.

One cluster of issues centers on important asymmetries in the US-China relationship. The report describes numerous ways in which Chinese entities interact with institutions and individuals in the United States and correctly notes the almost complete absence of legal and procedural impediments to such interaction. One cannot say the same about China. Four decades into the era of reform and opening, China remains far less open to foreign ideas, interaction, and influence than is the United States. I encourage readers to ask why that is the case and to consider the consequences and implications for China’s future development. To paraphrase Deng Xiaoping, the concerns raised in the Working Group report represent “flies” that entered the United States through the window of extensive engagement with China. The report calls for dealing with the flies, not closing the window. China seems increasingly determined to prevent the intrusion of foreign “flies” by erecting (or failing to lower) barriers.

Asymmetries in access are not limited to the dimensions of US-China relations discussed in this report. The US economy remains far more open to goods, investment, and ownership from China than China is to comparable forms of engagement by Americans. For decades, US laws, policy, and citizens accepted — even fostered — such asymmetries to strengthen our allies and partners. China has benefitted from this asymmetry, as have dozens of other countries. Policies to make our partners and allies stronger and more prosperous were designed to — and did — enhance American security and prosperity, but almost three decades after the end of the Cold War, many Americans understandably ask why we continue to accept such a high degree of inequality. What made sense during the Cold War and before our partners became stronger and more prosperous now seems unfair and unwise. As a result, American thinking about the ways we interact with other nations is shifting from acceptance of asymmetries to demands for reciprocity and equal treatment.

Some Chinese commentaries on the Working Group report have asserted that it reflects waning self-confidence and fear of China’s rise. Such assessments are wrong. Belief that we should receive essentially the same treatment from other countries as they accord to the United States and American citizens, firms, NGOs, and other entities reflects the strength of our commitment to fairness, not fear of competition. The long-held consensus that US policy should treat all countries (except explicit enemies, which China was from 1950 until the late 1960s) equally regardless of how they treated the United States has eroded significantly. That consensus is being replaced by calls for stricter reciprocity and treating other countries in the same way that they treat us. This sentiment is not limited to engagement with China but the Working Group report captures the emerging consensus by noting that Chinese media have far greater access to the United States than American reporters, newspapers, and broadcasts have to Chinese audiences. That is a fact, not an expression of paranoia or lack of confidence. Indeed, readers of this commentary might reflect upon why it is that China seems to lack confidence in the ability of its people to make their own judgments about foreign ideas and compete with foreign firms.

I was in China when the report was published and many Chinese interlocutors depicted its findings and recommendations as “proof” that the United States had abandoned engagement and reverted to containment policies designed to thwart China’s rise. Both their characterization of the report and their assertions about American policy are wrong. None of these interlocutors had read the report (their opinions were based on negative commentary), and I suspect that many would change their assessment if they had a chance to do so. I also suspect that many in China would change their minds about whether the United States is attempting to “contain” China if they had access to more — and more accurate — information about American willingness to acknowledge and manage the “flies” of engagement and Chinese efforts to erect barriers to Western ideas.

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Labor market duality refers to the coexistence of temporary workers with low dismissal costs and permanent workers with high dismissal costs within the same firms. The prevalence of temporary employment is a common feature in several countries, such as Continental European countries. Further, since the 1980s, the Japanese labor market has been experiencing a substantial increase in temporary jobs. The quality of temporary jobs tends to be lower than that of permanent jobs (e.g., the former includes lesser job security, lower wages, and fewer training opportunities compared to the latter). For this reason, the causes and consequences of widespread temporary employment have both policy and academic implications. To date, most of the research on this topic has focused on the supply side of labor markets (demographic changes in workforce), macroeconomic impacts (business cycles), and labor-market institutions. However, since the majority of temporary workers tends to be involuntary, the demand-side analysis is important, as well. It has rarely been examined how market competition would affect firms’ demand for temporary and permanent labor, particularly within the context of economic globalization.

Our study attempts to fill this gap. By proposing a heterogeneous-firm trade model with a dual labor market, we examine the relations between the demand for temporary and permanent workers and economic globalization. Our model highlights intensified product market competition as a driving force behind the shift in demand from permanent to temporary workers. In addition, our model demonstrates that international outsourcing effectively reduces labor adjustment costs, which decreases the demand for permanent workers. Using industry-level data from the Japanese manufacturing sector, we empirically test the relations between the demand for temporary and permanent workers and economic globalization and find that they support most of our theoretical predictions.

 

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Hitoshi Sato joins the Walter H. Shorenstein Asia-Pacific Research Center (Shorenstein APARC) during the 2018–2019 academic year from the Institute of Developing Economies (IDE-JETRO), a national research institute in Japan, where he currently serves as a senior chief research fellow. Sato’s field of study is international trade, and his current research interests include the relationships between internationalization of firms and labor markets. His research efforts have been published in journals, books, and policy reports, including the Journal of Japanese and International Economies. Further, Sato has been appointed as a consulting fellow by the Research Institute of Economy, Trade and Industry since 2013. He received his PhD in economics from the University of Wisconsin–Madison in 2006.

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Dr. Hitoshi Sato joins the Walter H. Shorenstein Asia-Pacific Research Center (APARC) for the 2018 year from the Institute of Developing Economies (IDE-JETRO) in Japan, where he serves as Senior Chief Research Fellow.  He will be working on the internationalization of firms, management practices, and development.  Dr. Sato received his Ph.D. from the University of Wisconsin, Madison. 
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