China faces its future of urbanization
A new book published by the Shorenstein Asia-Pacific Research Center (APARC) explores the future of China’s urbanization. Addressing the complex challenges facing Chinese cities will require updated institutions and unparalleled innovation, researchers say.
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Karen Eggleston, FSI senior fellow and director of the Asia Health Policy Program, speaks on a panel about demographic change and health at the conference, "Challenges in Process of Urbanization: China in Comparative Perspective," Stanford Center at Peking University, May 2014.
What do you hope the book will achieve?
What do “people-centered” solutions to urbanization challenges in China include?
Eggleston: “People-centered” is the term used in China’s official urbanization plan, the New National Urbanization Plan, published in 2014. We defined the term “people-centered” to include what makes life in urban areas attractive. “People-centered” urbanization emphasizes well-being and the factors that lead to a good livelihood, including access to public goods. For example, from a health perspective, cities around the world were historically less healthy locations to live in during the industrial revolution, before basic knowledge of how to control infectious disease with clean water and other population health measures. Now, cities can be healthier places to live in compared to rural areas. The Chinese government has a successful record of building basic infrastructure, but faces many challenges in harnessing the requisite resources to innovate and truly achieve people-centered development.
"In trying to reach a public goal like low-income housing, the Chinese government is trying to set up an incentive system so that the goal can be reached not just with taxpayer money but also by bringing in the private sector to build housing in a way that includes affordable units and doesn’t lead to segregation."
— Karen Eggleston; FSI senior fellow, Asia Health Policy Program director
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Jean Oi, FSI senior fellow and director of the China Program, (Center), and Xueguang Zhou, FSI senior fellow and professor of sociology, (Left of Center), take a tour of housing developments during fieldwork with the National Development and Reform Commission in August 2012. Oi is speaking with one of the village leaders about a "new rural community" concept developed in a housing development in Chengdu, where this photo was taken.
Another chapter in the book references pollution. Beijing has faced unprecedented levels of air pollution lately. Does it coincide with urbanization?
"Economic growth is intimately tied to the process of China’s urbanization. Growth of cities has been driven by the ambitions of local officials who want to see their municipalities expand. But the question remains over how they’re going to finance rising needs for and costs of public goods."
— Jean C. Oi; Stanford professor of political science, China Program director
Ian Johnson, longtime foreign correspondent, to receive Shorenstein Journalism Award
- Read more about Ian Johnson, longtime foreign correspondent, to receive Shorenstein Journalism Award
Ian Johnson, a veteran journalist with a focus on Chinese society, religion and history, is the 2016 recipient of the Shorenstein Journalism Award. The award, given annually by the Walter H. Shorenstein Asia-Pacific Research Center, is conferred to a journalist who produces outstanding reporting on Asia and has contributed to greater understanding of the complexities of Asia. He will deliver a keynote speech and participate in a panel discussion on May 1, 2017, at Stanford.
“Ian Johnson is one of those rare writers who has not only watched China’s evolution over the long haul, but who is also deeply steeped in the culture and politic of both Europe and the United States as well,” said Orville Schell, the Arthur Ross Director at the Asia Society of New York’s Center on U.S.-China Relations and jury member for the award. “This cross-cultural grounding has imbued his work on China with a humanistic core that, because it is always implicit rather than explicit, is all the more persuasive.”
Ian Buruma, the Paul W. Williams Professor of Democracy, Human Rights, and Journalism at Bard College and jury member for the award, added further praise, “Ian Johnson is one of the finest journalists in the English language. He writes about China with extraordinary insight, deep historical knowledge and a critical spirit tempered by rare human sympathy. His work on China is further enriched by wider interests, such as the problems of Islamist extremism in the West, specifically Germany, where he lives when he is not writing from China.”
The Shorenstein award, now in its 15th year, originally in partnership with the Shorenstein Center on Press, Politics and Public Policy at Harvard, was created to honor American journalists who through their writing have helped Americans better understand Asia. In 2011, the award was broadened to encompass Asian journalists who pave the way for press freedom, and have aided in the growth of mutual understanding across the Pacific. Recent recipients of the award include Yoichi Funabashi, former editor-in-chief of the Asahi Shimbun; Jacob Schlesinger of the Wall Street Journal; and Aung Zaw, founder of the Irrawaddy, a Burmese publication.
Johnson has spent over half of the past 30 years in the Greater China region, first as a student in Beijing from 1984-85, and then in Taipei from 1986-88. He later worked as a newspaper correspondent in China, from 1994-96 with Baltimore's The Sun, and then from 1997-2001 with the Wall Street Journal, covering macroeconomics, China’s social issues and World Trade Organization accession.
Johnson returned to China in 2009, where he now lives and writes for the New York Times and freelances for the New York Review of Books, the New Yorker and National Geographic. He also teaches and leads a fellowship program at the Beijing Center for Chinese Studies.
Johnson has also worked in Germany, serving as the Wall Street Journal’s Germany bureau chief and senior writer. Early on in his career, he covered the fall of the Berlin Wall and German unification, and later returned to head coverage on areas including the introduction of the euro and Islamist terrorism.
Johnson has been twice nominated for the Pulitzer Prize and won in 2001 for his coverage of the Chinese government’s suppression of the Falun Gong spiritual movement and its implications of that campaign for the future. He is also the author of two books, Wild Grass (Pantheon, 2004) which examines China’s civil society and grassroots protest, and A Mosque in Munich (Houghton Mifflin Harcourt, 2010). His next book, The Souls of China: The Return of Religion after Mao (Pantheon, April 2017) explores the resurgence of religion and value systems in China.
Additional details about the panel discussion and the award are listed below.
About the Panel Discussion and Award Ceremony
A keynote speech will be delivered by Shorenstein Journalism Award winner Ian Johnson, followed by a panel discussion with Orville Schell, the Arthur Ross Director at the Asia Society of New York’s Center on U.S.-China Relations, and Xueguang Zhou, professor of sociology at Stanford; moderated by Daniel C. Sneider, associate director for research at Shorenstein APARC.
May 1, 2017, from 12:00 – 1:30 p.m. (PDT)
Bechtel Conference Center, Encina Hall, 616 Serra Street, Stanford, CA 94305
The keynote speech and panel discussion are open to the public. The award ceremony will take place in the evening for a private audience.
To RSVP for the panel discussion, please visit this page.
About the Shorenstein Journalism Award
The Shorenstein Journalism Award honors a journalist not only for excellence in their field of reporting on Asia, but also for their promotion of a free, vibrant media and for the future of relations between Asia and the United States. Originally created to identify American and Western journalists for their work in and on Asia, the award now also recognizes Asian journalists who have contributed significantly to the development of independent media in Asia. The award is presented annually and includes a prize of $10,000.
The award is named after Walter H. Shorenstein, the philanthropist, activist and businessman who endowed two institutions that are focused respectively on Asia and the press - the Walter H. Shorenstein Asia-Pacific Research Center at Stanford and the Joan Shorenstein Center on Press, Politics and Public Policy in the Kennedy School of Government at Harvard.
Past recipients of the award include: Yoichi Funabashi, formerly of the Asahi Shimbun (2015); Jacob Schlesinger of the Wall Street Journal (2014), Aung Zaw of the Irrawaddy (2013), Barbara Demick of the Los Angeles Times (2012), Caixin Media of China (2011), Barbara Crossette of the New York Times (2010), Seth Mydans of the New York Times (2009), Ian Buruma (2008), John Pomfret of the Washington Post (2007), Melinda Liu of Newsweek (2006), Nayan Chanda of the Far Eastern Economic Review (2005), Don Oberdofer of the Washington Post (2004), Orville Schell (2003), and Stanley Karnow (2002).
A jury selects the award winner. The 2016 jury comprised of:
Ian Buruma, the Paul W. Williams Professor of Democracy, Human Rights, and Journalism at Bard College, is a noted Asia expert who frequently contributes to publications including the New York Times, the New York Review of Books and the New Yorker. He is a recipient of the Shorenstein Journalism Award and the international Erasmus Prize (both in 2008).
Nayan Chanda is the director of publications and the editor of YaleGlobal Online Magazine at the Yale Center for the Study of Globalization. For nearly thirty years, Chanda was at the Hong Kong-based magazine, Far Eastern Economic Review. He writes the ‘Bound Together’ column in India’s Business World and is the author of Bound Together: How Traders, Preachers, Adventurers and Warrior Shaped Globalization. Chanda received the Shorenstein Journalism Award in 2005.
Susan Chira is a senior correspondent and editor on gender issues and former deputy executive editor and foreign editor at the New York Times. Chira has extensive experience in Asia, including serving as Japan correspondent for the Times in the 1980s. During her tenure as foreign editor, the Times won the Pulitzer Prize four times for international reporting on Afghanistan, Russia, Africa and China.
Donald K. Emmerson is a well-respected Indonesia scholar and director of Shorenstein APARC’s Southeast Asia Program and a research fellow for the National Asia Research Program. Frequently cited in international media, Emmerson also contributes to leading publications, such as Asia Times and International Business Times.
Orville Schell is the Arthur Ross Director at the Asia Society of New York’s Center on U.S.-China Relations and former jury member for the Pulitzer Prize for international reporting. Schell has written extensively on China and was awarded the 1997 George Peabody Award for producing the groundbreaking documentary The Gate of Heavenly Peace. He received the Shorenstein Journalism Award in 2003.
Daniel C. Sneider is the associate director for research at Shorenstein APARC, writing on Asian security issues, wartime historical memory and U.S policy in Asia. He also frequently contributes to publications such as Foreign Policy, Asia Policy and Slate. Sneider had three decades of experience as a foreign correspondent serving in India, Japan and Russia for the Christian Science Monitor and as the national and foreign editor of the San Jose Mercury News and a syndicated columnist on foreign affairs for Knight-Ridder.
For more information about the award, please visit this page.
President Trump's Asia Inbox
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.
» Full Report with Preface from Director Gi-Wook Shin and Introduction by Amb. Michael H. Armacost
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
Shorenstein APARC colloquia put India into focus
India is a focus of colloquia at the Shorenstein Asia-Pacific Research Center during the next few months. A seminar series entitled “A New India? The Impact of 25 Years of Reform” will explore the country’s economic growth and efforts to revitalize its foreign relations.
The colloquia, co-sponsored by Stanford’s Center for South Asia, will include lectures from scholars, policymakers and other thought leaders on India’s democratic system and society, and provide a forum to discuss how the country can overcome obstacles to long-term prosperity.
Kathleen Stephens, the William J. Perry Fellow at Shorenstein APARC and former U.S. ambassador to the Republic of Korea, has organized and will moderate the colloquia. She served as the chargé d'affaires at the U.S. Embassy in New Delhi in 2014.
Stephens said, “Now is the right time and Stanford is the right place for a renewed focus on India, its daunting challenges and its extraordinary potential. This series will consider the strategic bet U.S. policymakers have made on India's rise, and India's own aspirations to play a bigger global role, particularly in Asia.
“In this series and beyond, we want to knit together the expertise and resources at Stanford and in Silicon Valley with policy leaders from India and elsewhere to expand our understanding of India in all its contemporary complexity and importance.”
From 1999 to 2013, Shorenstein APARC had a prolific initiative that supported scholarly work related to South Asia. The center envisions the colloquia will be some of many activities about the region going forward.
A listing of the seminars and related multimedia can be accessed here; more information will be added as it becomes available.
China: Going Global
Beijing’s new Silk Road initiative links old trade corridors from Asia to Africa and Europe. Many perceive that President Xi Jinping’s “One Belt, One Road” initiative as well as its many other trade, investment and finance projects transcend their economic calculus and reflect Beijing’s geopolitical ambitions to reposition China’s standing on the global stage. The China Program brings leading experts to explore the drivers and motivators of China’s international initiatives, their reach and scope as well as the implications of China’s increasing activism on the world stage.
Shorenstein APARC scholars explore Asia policy challenges facing next administration
- Read more about Shorenstein APARC scholars explore Asia policy challenges facing next administration
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.
Southeast Asia and the South China Sea
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 21st 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.
A way to bridge aging societies in Japan and South Korea
Japan and South Korea face serious demographic crises. Japan has the oldest population in the world and South Korea is one of the most rapidly aging. Together they top the list in terms of proportion of elderly by 2050, with 40.1% and 35.9% respectively being 65 and over, according to a U.S. Census Bureau forecast. Both nations are seeing shrinking working-age populations, with their birthrates among the lowest in the world. This puts them at great risk as they struggle to find new engines of economic growth.
Some experts argue that Japan and South Korea should encourage immigration. The former head of Tokyo's Immigration Bureau, Hidenori Sakanaka, said that "we need an immigration revolution to bring in 10 million people in the next 50 years, otherwise the Japanese economy will collapse." Jongryn Mo, a professor at Yonsei University in Seoul has written a book, "Strong Immigration Nation," urging a similar policy for South Korea.
Japan and South Korea are already supplementing their shrinking workforce with foreign labor, mostly unskilled migrant workers from China and Southeast Asia doing jobs that locals shun.
But it is time to attract more skilled workers. In Japan, only 18.4% of foreign workers were technicians or professionals in 2015, while the figure in Korea is just 7.8% this year. Skilled foreign workers can fill many jobs from staffing hospitals to working as technicians in middle-tier companies and software engineers in large ones.
The challenge, however, is that both countries remain exclusionary, closed societies despite a substantial rise in the numbers of foreigners. Politicians fear losing votes from workers worried about foreigners taking their jobs.
According to a recent report by the French business school INSEAD, Japan and South Korea are ranked 53rd and 61st, respectively in their level of tolerance for immigrants. Most foreign skilled workers have little intention to settle down in Japan or South Korea on a permanent basis, although unskilled ones might be more willing to stay.
Maria, a Guatemalan professional, decided to leave South Korea after working for six years in the overseas marketing department of a large Korean corporation. "Some Koreans complain that foreigners leave after a few years, but we leave because we're never included in the first place. Korean companies pay a lot to bring foreigners here. And then they don't even ask these people about their opinion."
Srey, a Cambodian student studying in Japan, said, "The Japanese are very helpful and very friendly, but at the same time they look at me as a 'gaijin' no matter how good I am at Japanese or able to speak to them. I am not planning to work in Japan."
Bridging strategy
South Korea and Japan need to find a more creative strategy in utilizing foreign talent. In particular, they should pay close attention to their transnational networks rather than pushing for permanent migration. Not only should both countries focus on the knowledge and skills of foreign labor talent, but also the social networks they can possess.
This calls for a particular type of social capital: transnational bridging. A person who has social ties in more than one place can serve as a bridge between those different places. Such bridging can be performed within a city or a country or across borders, but the latter is becoming more important with globalization. By bridging distant networks, people can connect disparate cultures, build trust and facilitate cross-national cooperation that are essential in business transactions. Many Indian and Chinese entrepreneurs and engineers working in Silicon Valley are active in transnational bridging with their home country.
Transnational bridging can be a good new strategy for South Korea and Japan in attracting foreign skilled labor since they can offer valuable experiences and networks as advanced economies, if not permanent places to live. They can help foreign talent to build social ties while studying and working and encourage them to serve as a bridge between South Korea and Japan and their next destination once they leave in what could be called "brain linkage."
They can still contribute to South Korea or Japan even after they depart. Maria said she was willing to do business involving both South Korea and her home country. Srey is also eager to do business with Japan after graduating, even though he will not work in the country.
South Korea and Japan should adopt a policy of "Study-Work-Bridge" rather than the "Study-Work-Migration" pathway commonly encouraged by settler societies. This new policy framework would establish programs providing systematic networking opportunities for skilled foreigners while in Japan or South Korea. It would upgrade the quality of campus life for foreign students and work environments for foreign professionals so they leave with positive experiences.
Most importantly, it would provide institutional support to help maintain transnational networks between foreigners and South Koreans and Japanese.
In Japan, a Study-Work framework has already begun to take shape. Among foreign students seeking employment in Japan in 2013, approximately 24% found jobs. According to the country's ministry of justice, 10,696 of 11,698 foreign students are successful in applying for a change of visa status after graduating from college. This is very encouraging. Still, foreign students feel that Japanese companies are reluctant to embrace their full potential and largely expect them to assimilate, often leading them to stay in Japan only for a short time.
In South Korea, with a shorter history of foreign student intake, a Study-Work framework has yet to emerge. While 64.3% of South Korean companies say they need and want to hire foreign students, only a very small portion of foreign students work in South Korean companies after graduation, perhaps as low as 1%. South Korea's immigration laws for foreign students have eased slightly in recent years, but there is an urgent need to develop solid, institutionalized support for responding to the substantial demand by foreign students who wish to find employment after their studies.
Challenges ahead
Both countries are moving in the right direction, but until they are ready to embrace a more comprehensive migration policy down the road, they should develop the "bridging" component of a Study-Work-Bridge framework as an interim strategy. That means considering how foreign skilled labor can contribute to their economies even if they stay only temporarily.
This non-migration-bridging concept can be also appealing to foreign workers who like to move on after gaining valuable experiences and networks. By activating the social networks they have left behind, foreigners can later become powerful "transnational bridges." With economic globalization, such linkages will be all the more important.
Research shows that science and engineering majors may have more to contribute as human capital, but business and social science majors are more inclined to play a bridging role. Universities and corporations should establish diversity offices, as seen in the U.S. and elsewhere, to promote a culture of tolerance and non-discrimination.
The challenges associated with aging, depopulation and a shrinking workforce are expected to intensify in the coming years. Yet foreign talent is readily at hand for both countries. They need to look no further than the skilled foreigners who already have connections with South Korea or Japan either through schooling or employment and to continue to cultivate such connections through a Study-Work-Bridge approach.
Gi-Wook Shin is director of the Walter H. Shorenstein Asia-Pacific Research Center at Stanford University and co-author of Global Talent: Skilled Labor as Social Capital in Korea. Rennie J. Moon is an associate professor at the Underwood International College at Yonsei University in Seoul.
This article was originally carried by Nikkei Asian Review on Aug. 31 and reposted with permission.