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Does US-China strategic cooperation have to be so hard?

Author: Evan A Feigenbaum, CFR Can the United States and China cooperate to forestall threats to stability? A new CFR report, Managing Instability on China’s Periphery , asks this question in the context of fragile states and regions that share borders with China — specifically North Korea, Myanmar, Pakistan and Central Asia. I participated in the project, which included workshops with Chinese specialists assembled by Peking University. I also wrote the report’s chapter on Central Asia. The project is interesting because the US and China actually have a long history of cooperating in places along China’s border. Just take recent tensions over Afghanistan, for example. These strains belie the degree to which Beijing and Washington worked jointly to defeat the Soviet occupation of Afghanistan in the 1980s.  Washington encouraged Chinese support for the Afghan mujahideen , and the two countries cooperated in other unprecedented ways during the conflict. But that was then. Today, the US and China are often at loggerheads in such places. US officials have argued that Chinese policies help to bolster Myanmar’s ruling junta. Many in Washington argue, too, that Chinese policies have shielded North Korea from the effects of international sanctions that Beijing itself has repeatedly voted for. For their part, Chinese officials often view US policies in these countries as naïve at best, destabilising at worst. Many in Beijing hold the view that US and South Korean ‘failures’ have cornered North Korea and thus urge deepened policies of engagement. In Central Asia, meanwhile, as Deputy Assistant Secretary of State for the region in 2006 and 2007, I heard Chinese officials argue ad infinitum that US actions to promote political reform could, ultimately, destabilise these countries. What’s going on? Does cooperation really have to be so hard? For that matter, is coordination so hard because the US and China lack common interests? I think not. In fact, asserting so is a too-easy cop out because, in most cases, it would be awfully hard to demonstrate empirically that China actually ‘wants’ an unstable Pakistan or would just ‘love’ a North Korea with nuclear weapons. In the countries at the heart of this CFR study, why wouldn’t China share America’s interest in stability, security, development and prosperity? No, I suspect the problem usually isn’t a lack of common interests. It’s that shared interests are very general in nature. Turning (abstract) common interests into (concrete) complementary policies requires that Beijing and Washington overcome two very high hurdles: First, Beijing almost never seems to share American threat assessments anymore. Countries like Iran and North Korea don’t threaten China directly, so Beijing can probably afford to be more relaxed and many Chinese analysts argue that Washington overstates the scope and urgency of such threats. Second, even when Beijing shares America’s sense of threat, countervailing interests still obstruct cooperation. In Afghanistan, for example, China certainly shares America’s core interest: a stable Afghan state that does not harbour, nurture or export terrorism. But Chinese decision-makers have become uncomfortable when told that the path to victory may require a long-term NATO presence on China’s western border, US bases and access agreements in Central Asia, and enhanced US and NATO strategic coordination with neighbours that have had difficult relations with China. So, what’s to be done? More dialogue, perhaps? I’m sceptical. Dialogue, in itself, is not a policy, not least because dialogue for its own sake has not, in the recent past, proved especially useful. The US and China have held routine dialogue on Central Asia since at least 2006. An institutionalised Central Asia sub-dialogue  was established in December 2005  in the wake of a meeting of the US-China Senior Dialogue in Washington. But the quality of the conversations has been mixed and few, if any, coordinated actions have emerged from it. Here, then, are a few bottom lines: First, since coordination has been weak, the US and China should aim at complementary, but not necessarily joint, projects and actions. Of course the US and China need, in the first instance, to establish more transparency and a better mutual understanding of each other’s strategic intentions. But both countries are active, for example, with capacity-building programs and projects . So it is important to remember that complementary projects and actions need not be conducted jointly. One example is counter-narcotics work, where Washington and Beijing could coordinate their areas of focus, direct their respective financial assistance packages at similar drugs-related goals, and build complementary capacity while maintaining separate efforts. Second, of course the two countries should aim to improve coordination, but they shouldn’t expect to do real joint contingency planning. Not anytime soon, in any case. US-China coordination will continue to be difficult for the various reasons noted above: China does not often share American threat assessments; China does not support the US approach to political or economic reform in, say, Central Asia or Pakistan; and finally, countervailing interests, clashing security concepts, and mutual suspicions will remain an obstacle for some time. That means contingency discussions of, for example, donor principles and modalities in a prospective food crisis — in Central Asia or North Korea, for example — could build a better platform for US-China coordination than, say, aiming high at the big security issues. Third, to use an American football metaphor: the two countries don’t always have to ‘throw long’. Working now on peripheral issues may well give both countries a better chance to work over time toward core strategic issues. My bet is that coordinating economic policies will prove easier than coordinating security policies. And coordinating with ad hoc groups — for instance, with the Asian Development Bank’s Central Asia Regional Economic Cooperation program — will provide China with some ‘cover’, and thus prove easier than coordinating bilaterally. At the end of the day, the US and China badly need to create a track record of concrete successes. And this is especially true in the places where shared strategic interests exist but remain awfully abstract. Evan A Feigenbaum is Adjunct Senior Fellow for East, Central and South Asia at the Council on Foreign Relations. A version of this article was first published here at the Council on Foreign Relations.  North Korea: Why is Seoul and Tokyo Cooperation Necessary? North Korea: strategic thinking, strategic response China-Pakistan space technology cooperation

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Author: Evan A Feigenbaum, CFR

Can the United States and China cooperate to forestall threats to stability?

A new CFR report, Managing Instability on China’s Periphery, asks this question in the context of fragile states and regions that share borders with China — specifically North Korea, Myanmar, Pakistan and Central Asia. I participated in the project, which included workshops with Chinese specialists assembled by Peking University. I also wrote the report’s chapter on Central Asia.

The project is interesting because the US and China actually have a long history of cooperating in places along China’s border. Just take recent tensions over Afghanistan, for example. These strains belie the degree to which Beijing and Washington worked jointly to defeat the Soviet occupation of Afghanistan in the 1980s. Washington encouraged Chinese support for the Afghan mujahideen, and the two countries cooperated in other unprecedented ways during the conflict.

But that was then.

Today, the US and China are often at loggerheads in such places. US officials have argued that Chinese policies help to bolster Myanmar’s ruling junta. Many in Washington argue, too, that Chinese policies have shielded North Korea from the effects of international sanctions that Beijing itself has repeatedly voted for.

For their part, Chinese officials often view US policies in these countries as naïve at best, destabilising at worst. Many in Beijing hold the view that US and South Korean ‘failures’ have cornered North Korea and thus urge deepened policies of engagement. In Central Asia, meanwhile, as Deputy Assistant Secretary of State for the region in 2006 and 2007, I heard Chinese officials argue ad infinitum that US actions to promote political reform could, ultimately, destabilise these countries.

What’s going on? Does cooperation really have to be so hard? For that matter, is coordination so hard because the US and China lack common interests?

I think not. In fact, asserting so is a too-easy cop out because, in most cases, it would be awfully hard to demonstrate empirically that China actually ‘wants’ an unstable Pakistan or would just ‘love’ a North Korea with nuclear weapons. In the countries at the heart of this CFR study, why wouldn’t China share America’s interest in stability, security, development and prosperity?

No, I suspect the problem usually isn’t a lack of common interests. It’s that shared interests are very general in nature. Turning (abstract) common interests into (concrete) complementary policies requires that Beijing and Washington overcome two very high hurdles:

First, Beijing almost never seems to share American threat assessments anymore. Countries like Iran and North Korea don’t threaten China directly, so Beijing can probably afford to be more relaxed and many Chinese analysts argue that Washington overstates the scope and urgency of such threats.

Second, even when Beijing shares America’s sense of threat, countervailing interests still obstruct cooperation. In Afghanistan, for example, China certainly shares America’s core interest: a stable Afghan state that does not harbour, nurture or export terrorism. But Chinese decision-makers have become uncomfortable when told that the path to victory may require a long-term NATO presence on China’s western border, US bases and access agreements in Central Asia, and enhanced US and NATO strategic coordination with neighbours that have had difficult relations with China.

So, what’s to be done? More dialogue, perhaps? I’m sceptical.

Dialogue, in itself, is not a policy, not least because dialogue for its own sake has not, in the recent past, proved especially useful. The US and China have held routine dialogue on Central Asia since at least 2006. An institutionalised Central Asia sub-dialogue was established in December 2005 in the wake of a meeting of the US-China Senior Dialogue in Washington. But the quality of the conversations has been mixed and few, if any, coordinated actions have emerged from it.

Here, then, are a few bottom lines:

First, since coordination has been weak, the US and China should aim at complementary, but not necessarily joint, projects and actions. Of course the US and China need, in the first instance, to establish more transparency and a better mutual understanding of each other’s strategic intentions. But both countries are active, for example, with capacity-building programs and projects. So it is important to remember that complementary projects and actions need not be conducted jointly.

One example is counter-narcotics work, where Washington and Beijing could coordinate their areas of focus, direct their respective financial assistance packages at similar drugs-related goals, and build complementary capacity while maintaining separate efforts.

Second, of course the two countries should aim to improve coordination, but they shouldn’t expect to do real joint contingency planning. Not anytime soon, in any case. US-China coordination will continue to be difficult for the various reasons noted above: China does not often share American threat assessments; China does not support the US approach to political or economic reform in, say, Central Asia or Pakistan; and finally, countervailing interests, clashing security concepts, and mutual suspicions will remain an obstacle for some time.

That means contingency discussions of, for example, donor principles and modalities in a prospective food crisis — in Central Asia or North Korea, for example — could build a better platform for US-China coordination than, say, aiming high at the big security issues.

Third, to use an American football metaphor: the two countries don’t always have to ‘throw long’. Working now on peripheral issues may well give both countries a better chance to work over time toward core strategic issues. My bet is that coordinating economic policies will prove easier than coordinating security policies. And coordinating with ad hoc groups — for instance, with the Asian Development Bank’s Central Asia Regional Economic Cooperation program — will provide China with some ‘cover’, and thus prove easier than coordinating bilaterally.

At the end of the day, the US and China badly need to create a track record of concrete successes. And this is especially true in the places where shared strategic interests exist but remain awfully abstract.

Evan A Feigenbaum is Adjunct Senior Fellow for East, Central and South Asia at the Council on Foreign Relations. A version of this article was first published here at the Council on Foreign Relations. 

  1. North Korea: Why is Seoul and Tokyo Cooperation Necessary?
  2. North Korea: strategic thinking, strategic response
  3. China-Pakistan space technology cooperation

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Does US-China strategic cooperation have to be so hard?

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Asean

ASEAN weathering the COVID-19 typhoon

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Vietnam's Prime Minister Nguyen Xuan Phuc addresses a special video conference with leaders of the Association of Southeast Asian Nations (ASEAN), on the coronavirus disease (COVID-19), in Hanoi 14 April, 2020 (Photo:Reuters/Manan Vatsyayana).

Author: Sandra Seno-Alday, Sydney University

The roughly 20 typhoons that hit Southeast Asia each year pale in comparison to the impact on the region of COVID-19 — a storm of a very different sort striking not just Southeast Asia but the world.

 

Just how badly is the COVID-19 typhoon thrashing the region? And what might the post-crisis recovery and reconstruction look like? To answer these questions, it is necessary to investigate the strengths and vulnerabilities of Southeast Asia’s pre-COVID-19 economic infrastructure.

Understanding the structure of the region’s economic house requires going back to 1967, when Southeast Asian countries decided to pledge friendship to one another under the ASEAN framework. While other integrated regions such as NAFTA and the European Union have aggressively broken down trade barriers and significantly boosted intra-regional trade, ASEAN regional economic integration has chugged along slower.

Southeast Asian countries have not viewed trade between each other as a top priority. The trade agreements in the region have been forged around suggestions for ASEAN countries to lower tariffs on intra-regional trade to within a certain range and across limited industries. This has lowered but not eliminated barriers to intra-regional trade. Consequently, a relatively significant share of Southeast Asian trade is with countries outside the region. This active extra-regional engagement has resulted in ASEAN countries’ successful integration into global value chain networks.

A historically outward-facing region, in 2010 around 75 per cent of Southeast Asian commodity imports and exports came from countries outside of ASEAN. This share of extra-regional trade nudged closer to 80 per cent in 2018. This indicates that ASEAN’s global value chain network embeddedness has deepened over time.

Around 40 per cent of ASEAN’s extra-regional trade is with the rest of Asia. From 2010 to 2018 Southeast Asian countries forged major trade relationships with four Asian countries: China, Japan, South Korea and India. Outside Asia, the United States is the region’s major trading partner. ASEAN’s trade focus on Asia’s largest markets is not surprising. Countries tend to establish trade relationships with large, geographically close, and culturally similar markets.

Fostering deep relationships with a few large markets, however, is a double-edged sword. While it has allowed ASEAN to benefit from integration in global value chains, it has also resulted in increased vulnerability to the shocks affecting its network connections.

ASEAN’s participation in global value chains has allowed it to transition from a net regional importer in 1990 to a net regional exporter in 2018. But the region’s deep embeddedness in a small and tightly-coupled network cluster of extra-regional global value chain partners has exposed it to disruption to any and all of its external partners. By contrast, ASEAN’s intra-regional trade network structure is much more loosely-coupled: a consequence of persistent intra-regional trade barriers and thus lower intra-regional trade intensity.

In the pre-COVID-19 period, ASEAN built for itself an economic house held up by just five extra-regional markets, while doing less to expand and diversify its intra-regional trade network. The data shows that ASEAN trade became increasingly concentrated in these few external markets between 2010 and 2018.

This dependence on a handful of markets does not bode well for risk and crisis management. All of the region’s major trading partners have been significantly affected by COVID-19 and this in turn is blowing the ASEAN economic house down.

What are the ways forward? The immediate task at hand is to get a better picture of the region’s position in global value chain networks and to get on top of managing its network risk exposure. Already there are red flags around the region’s food security arising from its position in food value chains. It is critical to look for ways to introduce flexibility into existing supply chains for greater agility in responding to crises.

It is also an opportune time for ASEAN to harness the technology transfer gains of global value chain participation and invest in innovation-driven diversification of products and markets. The region’s embeddedness in global value chain networks certainly places it in a strong position to readily access large export markets not just in Asia but also Europe and the Americas.

Over the longer term, ASEAN is faced with the question of whether it should seriously look…

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Tiger Trade Launches SGX Trading, Meeting Demand from Asian Investors

Access to the Singapore Exchange (SGX) adds to Tiger Brokers’ current menu of stock exchanges, such as the New York Stock Exchange (NYSE) and the Nasdaq Stock Market (NASDAQ), the world’s two largest stock exchanges, as well as the Hong Kong Stock Exchange (HKEX).

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SINGAPORE (ACN Newswire) – Tiger Trade, a one-stop mobile and online trading application by Tiger Brokers, has launched access to the Singapore Exchange (SGX).

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Can Asia maintain growth with an ever ageing population ?

To boost productivity in the future, Asian governments will have to implement well-targeted structural reforms today.

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Asia has been the world champion of economic growth for decades, and this year will be no exception. According to the latest International Monetary Fund Regional Economic Outlook(REO), the Asia-Pacific region’s GDP is projected to increase by 5.5% in 2017 and 5.4% in 2018. (more…)

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