The Biden administration maintains that China is the only country with both the intent to reshape the international order and the power to do so. One part of China’s economic statecraft toolkit involves state-directed investments through high profile projects in the Belt and Road Initiative which are funded by loans through Chinese development banks. But the role and impact of Chinese companies that provide equity funding for FDI often receive less attention. Does Chinese foreign direct investment (FDI) have illiberal effects on recipient countries. And is this goal part of China’s economic statecraft and foreign policy strategy.

To address these questions and more, host Bonnie Glaser is joined by Dr. Jan Knoerich. He is the author on a chapter of Chinese FDI on the recent Oxford publication “Rising Power, Limited Influence”, a collection of essays on the effects of Chinese investment in Europe. Dr. Knoerich is a senior lecturer on the Chinese economy for the Lau China Institute at King’s College in London. He is an expert on the Chinese economy, FDI, and international investment law and policy. 

Timestamps

[01:38] Evolution of Chinese Foreign Investment Strategies

[04:48] Chinese Firms Undertaking Foreign Direct Investment

[09:16] Impacts of Chinese FDI: Five Dimensions 

[18:17] Reasons Why Chinese Firms are Viewed with Suspicion

[21:06] Impacts of Chinese FDI Projects in Europe

[24:59] Evidence of Chinese FDI Exerting Political Influence

When Hong Kong was handed over to China by the United Kingdom 1997, the city was given a mini-Constitution called the “Basic Law.” Article 23 of the Basic Law states that Hong Kong shall enact laws of its own to prohibit various national security offenses. The law did not pass, however, and was scrapped after mass protests in 2003. And in 2020, the Central Government of the People’s Republic of China (PRC) imposed a separate national security law on Hong Kong, citing the city’s delay in acting on Article 23. 

This year on March 19th, Article 23 was passed unanimously by the city’s parliament and it came into effect just days later. The law covers five types of crime: treason, insurrection and incitement to mutiny, theft of state secrets, and espionage, sabotage, and external interference. Critics say that Article 23 could lead to even further erosions of civil liberties in Hong Kong.

To discuss Article 23 and its implications, host Bonnie Glaser is joined by Dr. Eric Yan-ho Lai. Dr. Lai is a Research Fellow at the Georgetown Center for Asian Law, an Associate Fellow at the Hong Kong Studies Hub of the University of Surrey, and a member of the Asian Civil Society Research Network. 

Timestamps

[01:47] Understanding PRC Definitions Used in Article 23

[03:37] Why was Article 23 passed now?

[05:23] Compressed Timeline for Unanimous Approval

[09:05] Shift in Risk Assessment for Multinational Corporations

[12:03] Precedents for Targeting Diaspora Communities

[14:17] Reactions to Article 23 from the International Community

[15:54] What are some concrete actions that could be taken to signal concern?

[17:55] Do the PRC and Hong Kong care about international perceptions?

[19:36] Implementation of Article 23 Moving Forward

[21:28] Passage of Additional Security Legislature

[22:57] Forecast for the Future of Hong Kong

In the past decade, policy toward China has hardened on both sides of the Atlantic. Governments and publics across Europe and in the United States view Xi Jinping as implementing more repressive policies domestically and more aggressive policies abroad. The US and most capitals in Europe see Beijing as seeking to revise the international order in ways that would be disadvantageous to democracies. They agree on the need for de-risking and to preserve the status quo in the Taiwan Strait. 

Yet, despite the alignment in transatlantic assessments, cooperation on China remains limited. A new paper by experts from Chatham House and RUSI, leading think tanks in the United Kingdom, analyzes why transatlantic mechanisms have made slow progress, focusing on three domains: economics; security; and the multilateral system and global norms. The paper also offers ways to strengthen cooperation going forward. 

The title of the report is “Transatlantic China Policy: In Search of an Endgame?” Host Bonnie Glaser is joined by one of its authors, Ben Bland who is the director of the Asia-Pacific program at Chatham House. His research focuses on the nexus of politics, economics, and international relations in Southeast Asia, as well as China’s growing role in the broader region and the contours of US–China strategic competition. 

Timestamps

[01:46] Why did you pursue this research on transatlantic mechanism?

[03:24] Importance of Agreeing on an Endgame

[06:30] Consensus and Divergence between the US and Europe

[10:10] De-risking: One Word, Many Meanings 

[15:00] Transatlantic Discussions on European and Indo-Pacific Security

[18:40] Can a regional division of labor strategy work?

[22:13] China, the Multilateral System, and Global Norms

[27:00] Tensions Between EU Multilateralism and Transatlantic Consensus

[31:10] What are the next steps for Chatham House?

On a previous episode of the China Global Podcast, we discussed Beijing’s position on the conflict in Gaza during the early days following Hamas’ attacks on Israel on October 7, 2023. Today, we discuss one of the conflict’s spillover effects– the attacks on cargo and trade ships transiting the Red Sea by the Houthis, an Iranian-backed Shia group governing parts of Yemen. While the Chinese-brokered rapprochement between Saudi Arabia and Iran was as the beginning of a “wave of reconciliation” in the region by China’s foreign minister Wang Yi, the resurgence of violence since October 7th has proven that prediction to be overly optimistic. 

At face value, disruptions of global trade may seem to run counter to Chinese interests, but Beijing’s hesitance to become more deeply involved in the crisis may tell us something about China’s calculations in this crisis. It may also show the limits of Chinese influence in the region. 

Host Bonnie Glaser is joined by Ahmed Aboudouh. Ahmed is an associate fellow with the Middle East and North Africa Program at Chatham House, a nonresident fellow with the Atlantic Council, and heads the China Studies research unit at the Emirates Policy Center. His research focuses on China’s rising influence in the Middle East and North Africa region, Gulf geopolitics, and the effects of China-US competition worldwide. 

Timestamps

[01:36] China’s Statement on Palestine at the International Court of Justice

[08:20] Why is China indirectly supporting Hamas despite its relations with Israel?

[12:11] Effectiveness of China’s Narrative Critical of America and the West

[16:54] Israel, Palestine, and China’s Diplomatic Calculus

[20:12] China’s Hesitance to Counter the Houthis in the Red Sea

[25:15] Does China have leverage over Iran, and if so, will they use it?

[29:59] Circumstances for Deeper Chinese Involvement

On February 1st 2021, the Tatmadaw, or Myanmar military began a coup d’etat against the democratically-elected government, which was led by the National League for Democracy (or NLD) just before elected officials from the November 2020 elections could be sworn in. Since then, Myanmar has been largely controlled by a military junta, who continue to struggle against multiple ethnically-aligned armies dispersed throughout the country. Some countries in the region have refused to recognize the junta, but the People’s Republic of China called the coup simply a “major cabinet reshuffle” and accelerated their military trade with the junta while decrying Western sanctions on the country as escalatory measures, even going so far as to veto a security council resolution condemning the coup alongside Russia. 

China’s approach to relations with Myanmar since the coup have been evolving swiftly, especially since the recent Operation 1027, a large offensive staged by the ethnic armed forces coalition known as the Three Brotherhood Alliance on October 27th 2023. The losses by the junta during the operation revealed their control of the country to be more tenuous than Beijing might have expected and exemplify the complex factors going into China’s decision-making approach to the conflict. 

For this episode, host Bonnie Glaser is joined by Jason Tower, the country director for the Burma program at the United States Institute for Peace. Tower has over 20 years of experience working in conflict and security issues in China and Southeast Asia, including analysis on cross-border investments, conflict dynamics, and organized crime in the region. He worked previously in Beijing and is a former Fulbright research student and Harvard-Yenching fellow. 

Timestamps

[02:07] China’s Interest in the Myanmar Conflict

[05:48] China’s Engagement with Parties in Myanmar

[12:48] Impact of China’s Brokered Ceasefires 

[20:30] Credibility of China in Southeast Asia

[25:15] Myanmar in the US-China Relationship

Many books about US-China strategic competition have been published in recent years. This episode will focus on Facing China: The Prospect for War and Peace, which examines various flashpoints in the Indo-Pacific that could result in military conflict.

There are several reasons why this book stands out: First, it includes an examination of debates within China about China’s national interests; Second, it focuses not only on the challenges of major wars, but also on China’s gray-zone strategy of deliberately pursuing its interests in ways that stay below the threshold that would trigger a US military response. And finally, it assesses the applicability of the Thucydides Trap to the US-China relationship. The Thucydides Trap concept was coined by Graham Allison who examined historical cases in which a rising power threatened to displace a ruling power in his book Destined for War: Can America and China Escape Thucydides’s Trap? Allison concluded that in the majority of historical cases the outcome was war.

This book is especially interesting because it is written by a European expert who has deep knowledge of Taiwan, mainland China, and the United States: Jean-Pierre Cabestan. He is an emeritus senior researcher at the French Center for Scientific Research in Paris and an emeritus professor political science at the Department of Government and International Studies at Hone Kong Baptist University, and a visiting senior fellow at GMF. 

Timestamps

[02:07] Revisiting the Thucydides Trap 

[03:53] Why was China fascinated by this concept? 

[05:26] Reasons for the Risk of War Increasing

[06:33] The US-China Cold War and its Characteristics

[09:03] China’s Gray-Zone Activities 

[10:53] Where has China’s gray-zone strategy been the most successful? 

[12:37] Unifying Taiwan with China through Gray-Zone Activities

[14:42] Chinese Use of Force in the Taiwan Strait in the 2020s

[16:17] China’s Ambitions in the International Arena

[17:40] Future Overseas Operations of the PLA 

 

On December 27 and 28, 2023, the Communist Party of China held the Central Conference on Work Relating to Foreign Affairs. This was the sixth such meeting – the first one was held way back in 1971. This Foreign Affairs Work Conference was the third held under Xi Jinping’s leadership, with earlier meetings held in 2014 and 2018.

Xi delivered a major speech at the Work Conference, which marks the most comprehensive expression yet of his more activist approach to PRC diplomacy. The speech provides valuable insights into Xi’s assessment of the global balance of power, his vision of the international order, and his views of the role of Chinese diplomacy.

Host Bonnie Glaser is joined by Neil Thomas, a Fellow for Chinese Politics at Asia Society Policy Institute’s Center for China Analysis, where he studies elite politics, political economy, and foreign policy. Previously, he was a Senior Analyst for China and Northeast Asia at Eurasia Group. 

Timestamps

[01:32] Historical Significance of Foreign Affairs Work Conference

[07:09] Xi’s Key Messages from the Conference in December

[11:10] Xi’s Concept of the Community of Common Destiny

[15:26] Major Country Diplomacy in Chinese Foreign Policy

[20:03] China’s Diplomacy Going Forward

[23:07] Xi’s Speech to Chinese Ambassadors

On January 13, 2024, voters in Taiwan elected the DPP’s Lai Ching-te the next president of Taiwan. Lai won 40% of the votes–a plurality, but not a majority. In his acceptance speech, Lai pledged to safeguard Taiwan from continuing threats and intimidation from China. He also said that he has an important responsibility to maintain peace and stability in the Taiwan Strait and reiterated a statement that the current president, Tsai Ing-wen, made 8 years ago: that he would act in accordance with the Republic of China constitutional order.

Beijing expected that Lai would win and was therefore well prepared. The statement, issued by the Taiwan Affairs Office shortly after the final tally was announced, emphasized that the election result would not change the trend of cross-Strait relations and said that reunification remained inevitable. It also warned against Taiwan independence and foreign interference. 

This episode focuses on China’s perspectives on the election and its likely reaction going forward. Host Bonnie Glaser is joined by Rick Waters, who is managing director of Eurasia Group’s China practice. He has served 27 years as a career diplomat, most recently as the inaugural head of the State Department’s Office of China Coordination and Deputy Secretary of State for China and Taiwan.

Time Stamps

[01:56] Interpreting Beijing’s Statements

[03:40] Views of the State Security Ministry

[04:38] Poaching Taiwan’s Diplomatic Ally Nauru

[06:53] Threat of Tariff Imposition

[08:37] Impact of Woodside Summit on Beijing’s Response

[10:02] What role do the Chinese want the Americans to play?

[11:13] Assessing the Efficacy of Chinese Policy Toward Taiwan

[13:40] Unofficial American Delegation Visiting Taiwan

[15:02] Post-Election Comment from President Biden

[16:26] Clarifying the US One-China Policy

[19:48] Xi Jinping’s Statements to Biden about Taiwan

[23:14] Is reunification a legacy issue for Xi Jinping?

[24:49] What are the most important variables moving forward?

[27:00] China and Peaceful Unification

This episode covers the role of US and Chinese domestic politics in the US-China relationship. There are many drivers of US-China strategic competition, and domestic politics is among them, and has become increasingly important, though it has not been well researched and analyzed in recent years. One reason for the lack of analysis on Chinese politics is that since Xi Jinping became China’s top leader in 2012, domestic politics in China has become even more of black box than previously. 

Bonnie is joined by Dr. Evan Medeiros, who has recently published a pathbreaking study that seeks to update the understanding of political forces in China and the United States that are influencing the bilateral relationship. Medeiros is one of the world’s leading experts on Chinese foreign policy. He is the Penner Family Chair in Asia studies and the Cling Family Distinguished Fellow in US-China Studies in the School of Foreign Service at Georgetown University. The report we will discuss today is titled: "The New Domestic Politics of US-China Relations" and was published by the Asia Society Policy Institute’s Center for China Analysis where Evan is a senior fellow for foreign policy. During the Obama administration, Evan was on the NSC staff, first as director for China, Taiwan and Mongolia, and then as special assistant to the president and Senior Director for Asia. 

Timestamps

[02:14] Influence of Domestic Politics in the US and China

[03:32] Differences between US and Chinese Domestic Politics

[05:19] Weakening of Historical Forces for Stability

[08:35] Most Important Driver of Change to America’s China Policy

[13:34] Xi Jinping Shaping Domestic Politics in China

[19:38] Reversing the Downward Trend in US-China Relations

[21:44] Close Connections between Domestic and Foreign Politics

[24:49] Biden and Xi as Leaders in the Bilateral Relationship

This podcast episode is a joint and cross-over episode between the CSIS ChinaPower Podcast and the German Marshall Fund’s China Global Podcast. We are joined by Bonnie Glaser, Jessica Chen Weiss, and Thomas Christensen to discuss their recently released article titled “Taiwan and the True Sources of Deterrence.” The authors underline the article’s key point, that assurances, alongside threats, are an integral part of effective deterrence. They emphasize that in order for deterrence to work, the threat of punishment must be not only credible but also conditional. Finally, the authors outline what actions each of the three actors- the U.S., China, and Taiwan- should take to effectively convey assurances to one another.

Ms. Bonnie Glaser is the managing director of the German Marshall Fund’s Indo-Pacific program. She is also a nonresident fellow with the Lowy Institute in Sydney, Australia, and a senior associate with the Pacific Forum. She was previously senior adviser for Asia and the director of the China Power Project at CSIS. Ms. Glaser has worked at the intersection of Asia-Pacific geopolitics and U.S. policy for more than three decades.

Dr. Jessica Chen Weiss is a professor for China and Asia-Pacific Studies in the Department of Government at Cornell University. She was previously an assistant professor at Yale University and founded the Forum for American/Chinese Exchange at Stanford University. Formerly, Dr. Weiss served as senior advisor to the Secretary’s Policy Planning Staff at the U.S. State Department on a Council on Foreign Relations Fellowship for Tenured International Relations Scholars.

Dr. Thomas Christensen is a professor of Public and International Affairs and Director of the China and World Program at Columbia University. Prior to this, he served as Deputy Assistant Secretary of State for East Asian and Pacific Affairs with responsibility for relations with China, Taiwan, and Mongolia. His research and teaching focus is on China’s foreign relations, the international relations of East Asia, and international security.

Early next month, the European Union and China are set to hold the 24th bilateral summit. The last EU-China summit was held via video conference in April 2022. It took place against the background of China’s countermeasures to EU sanctions on human rights, Chinese economic coercion and trade measures against the single market, and most importantly, Russia’s military aggression against Ukraine and Beijing’s unwillingness to condemn the invasion. Earlier this year, the European Council reaffirmed the EU’s multifaceted policy approach towards China, which is based on the judgment that China is simultaneously a partner, a competitor, and a systemic rival. However, that balancing act is getting more and more difficult.

Host Bonnie Glaser is joined by Mr. Gunnar Wiegand, who has recently retired from the post of Managing Director for Asia and the Pacific at the European External Action Service, which he held for 7 ½ years. He is now a visiting professor at the College of Europe and the Paris School of International Affairs, and as of November 1, 2023, he has joined GMF’s Indo-Pacific program as a visiting distinguished fellow. 

Timestamps

[01:39] EU-China Relations on the Eve of the 24th Bilateral Summit

[05:13] Impact of the War in Ukraine on EU-China Relations

[07:29] How could China alleviate concerns in Europe? 

[09:33] De-risking in the European Union

[15:27] Proportionate and Precise Economic Security

[18:27] How similar are EU and US perceptions of China?

[22:13] The EU’s Stance on Taiwan

[26:19] How can EU contribute to peace and stability in the Taiwan Strait?

[27:21] Outcomes of the Biden-Xi Summit