by Shahar Hameiri and Lee Jones / The Interpreter / 17 May 2018
China’s Asian Infrastructure Investment Bank (AIIB) has been viewed through the wider debate over whether a rising China will overturn or uphold the US-led “rules-based liberal international order”. As the first significant international organisation established by China, the AIIB is often seen to indicate wider Chinese intentions. Continue reading “The misunderstood AIIB”→
China has emerged as one of the world’s largest providers of development finance. Between 2000 and 2014, China extended a total of $354 billion in loans, grants, and other resources to countries across the globe. As China continues to establish itself as a major source of development finance, it is important to consider how this spending intersects with Beijing’s growing political and economic interests. Continue reading “Where is China targeting its development finance?”→
The use of tariffs to address the United States’ trade imbalance with key trade partners will hamper longstanding U.S. economic leadership. Bilateral negotiations with concerned trade partners and WTO mechanisms would provide a less disruptive approach to settling trade disputes. Unilateral imposition of tariffs may invite retaliatory measures and trigger a trade war, which may spiral out of control. Allies and partners may suffer collateral damage, regional and global production chains may be affected, and it may set an unhealthy precedent for other countries to emulate in resolving trade disputes with partners. Against the backdrop of U.S. withdrawal from the TPP and efforts to renegotiate NAFTA, KORUS and the U.S.-Japan FTA, the Trump administration’s tariff policy may only exacerbate doubts about enduring U.S. commitment to uphold established trade regimes. Continue reading “The Costs and Consequences of U.S. Tariff Policy”→
Is it a risk for America that China holds over $1 trillion in U.S. debt?
by China Power
Many worry that China’s ownership of American debt affords the Chinese economic leverage over the United States. This apprehension, however, stems from a misunderstanding of sovereign debt and of how states derive power from their economic relations. The purchasing of sovereign debt by foreign countries is a normal transaction that helps maintain openness in the global economy. Consequently, China’s stake in America’s debt has more of a binding than dividing effect on bilateral relations between the two countries. Continue reading “Is it a risk for America that China holds over $1 trillion in U.S. debt?”→