In the space realm, Europe still seeks cooperation with China despite having framed it a systemic rival. This creates serious strategic and economic risks, because Europe is too fragmented to keep up with China’s concerted commercial and military efforts to challenge the US dominance in space.
This article is part 1 of a mini-series to present the outcomes of the MERICS European China Talent Program 2019.
The protests in Hong Kong that have been going on for weeks and the tough attitude of the city’s government, which is remotely controlled from Beijing, now make it unmistakably clear to everyone that the coexistence of totalitarian politics and a liberal economy does not work with China, says Kristin Shi-Kupfer.
Dozens of European companies have business ties to Xinjiang, where according to UN estimates Chinese authorities have detained more than a million Uighurs and other Muslim minorities. European governments need to take a more active interest in their companies’ operations in the region, says MERICS Visiting Policy Fellow Benjamin Haas.
Insa Ewert (via Young China Watchers)
In March this year, Italy became the first G7 nation to sign an official MoU with China in the context of the Belt and Road Initiative (BRI). The move by the Italian government has been interpreted as a sign of increasing divisions within Europe over China. But to what extent might the Italian example be an indication of a shift or rift in EU-China relations?
Europe should not shy away from taking a more assertive position if it wants the relationship with China to be a healthy one. Realism is needed in dealing with the increasingly powerful and authoritarian newcomer.
In 2019, an estimated record number of graduates will enter China's labor market – and there are indications that many will struggle to find a position. How does the country create jobs for the 8.34 million students who will graduate from its universities this year? To deal with the challenge, different regions have been experimenting with different solutions.
Traditionally among the biggest investors in China, Taiwanese companies are shifting their focus to neighboring countries. Michelle Tsai says the US-China trade conflict is only one reason.
In Athens, local resistance to investment from China is not so much about opposing China, as resistance to change, says MERICS freelance researcher Jacob Mardell. He is currently travelling countries along the Belt and Road to investigate how the initiative is being implemented on the ground.
The African continent offers Huawei and other Chinese technology giants rich opportunities. Tom Bayes unpicks the stories of their rise in Africa and warns more is at stake than technology.
Forget Beijing “weaponizing” its currency through devaluation or the “nuclear option” of it dumping US Treasuries. It could quietly shrink the US trade deficit – at Europe’s expense.
Erratic and aggressive in the trade dispute with Beijing, Donald Trump is emboldening China’s military hawks, industrial state-interventionists, and nationalistic cheerleaders.
Lauren A. Johnston
Before we write off China’s economic dynamism for a decade, we should consider the significant ways in which it differs from Japan. Differences in the timing of demographic change in the two countries in particular suggest that China’s experience will not mimic Japan’s. With appropriately targeted polices, China will avoid a “lost decade.”
Kai von Carnap
The blockchain has become one of the key technologies flanking the Belt and Road Initiative (BRI). Innovative data management systems could soon give Beijing access to immense amounts of personal and company data from abroad.
Lauren A. Johnston
In March, Italy signed an agreement pledging its support for China’s trans-continental Belt and Road Initiative. Rome hopes Chinese companies will invest in the country’s ageing infrastructure, while critics worry about China’s perceived geopolitical ambitions. However, Beijing's push has to be seen in a larger context: an important driver of its outbound ambitions is the interaction of economic and demographic change at home. Faced with an ageing society, China is looking for investment opportunities in countries with younger populations along the BRI.
The Shanghai Stock Exchange will establish an innovation and technology equity board to turn stock market gains into technological innovation. Previous tech boards have underperformed the market for years. But increased foreign investment and bank lending to the private sector as well as an improved listing process give reason to be optimistic.
The historic moon landing of China’s Chang'e 4 marks a symbolic victory for the emerging space power. But lack of transparency along with concerns about dual-use plans and surveillance undermine China’s efforts to persuade the world of its peaceful rise. For Europe, Beijing can be a selective partner on space matters at best.
China is a world leader in blockchain development and is testing it in applications from civil administration and tax documents to evidence in the criminal justice system. Yet the technology creates a dilemma for China’s leaders. Their priority on centralized control contradicts the decentralized distribution of data through a blockchain.
China’s efforts to shape global technology standards and norms have been at the heart of its ambitions to achieve technological self-reliance. Now these efforts are yielding results in areas like 5G, Artificial Intelligence (AI) and cybersecurity – and they endanger Europe’s industrial competitiveness.
The People’s Bank of China has begun easing monetary policy to respond to slowing economic growth, falling producer prices, and peak bond repayments. The success of this round of monetary easing depends on the allocation of funds to relevant companies and the effectiveness of heavy-handed restrictions on capital flows.
Lauren A. Johnston
One country and one region that are each home to more than a billion people – China and Africa – are fundamental to international efforts to combat climate change. Since China is a leading investor in Africa’s infrastructure as part of its Belt and Road Initiative, it is timely to identify lessons – good and bad – from China’s own development experience for African policy makers and interested investors. This can support African countries to adopt a more sustainable industrial path than did China over the last forty years.
Karen Fisher, Haiqing Yu
The digital economy offers new employment opportunities for China’s disabled people. Expanding the digital economy to include broader parts of the population combines the economic goal of China’s transition to a high-tech nation with the political imperatives of growth and social stability. This is the fourth part of a series based on a MERICS publication on social services in China.
Podcast with Alicia García Herrero
The meeting between US President Trump and the Chinese leader Xi Jinping on the sidelines of the G20 summit in Argentina did not lead to an end to the Sino-American trade war, but only to a truce between the two super powers. According to the Hong Kong-based economist Alicia García Herrero the truce gives both sides more time to disentangle their economies from each other.
Interview with Mareike Ohlberg (via Young China Watchers)
The collection of citizens' personal data is a global issue, but China's social credit system is unique in its ambitions. Its uses range from assessing individual credit risks to forcing companies to comply with environmental standards, but also to discouraging dissenting political opinions. In this interview MERICS researcher Mareike Ohlberg describes China's struggle to define the standards for a nationwide system.
China’s electric vehicle (EV) battery industry is well positioned to be competitive in global markets. The industry’s strong performance results from state support of domestic manufacturers. As China’s EV battery manufacturers expand abroad, manufactures in free market economies are up against Chinese state-backed competitors.
Unrest over Chinese online financing platforms shows that the combination of unregulated market forces and uninformed individual decision making can lead to undesirable outcomes. Unless the CCP is willing and able to foster comprehensive reforms, events might again spiral out of control when new innovative financial solutions are introduced.