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Since opening its doors to the world in 1978, China has pursued a sometimes erratic but reasonably steady course leading to increasing global economic and political interaction. Its interests now extend from Pyongyang to New York and Sydney to Riyadh. U.S. President Barack Obama’s announcement of a new “pivot” toward Asia, recent events on the Korean Peninsula, and China’s upcoming leadership transition provide additional reasons to seek greater understanding of China’s goals and interactions with other nations.

Thomas Fingar, Stanford’s Oksenberg-Rohlen Distinguished Fellow, is leading a new multiphase Shorenstein Asia-Pacific Research Center (Shorenstein APARC) initiative to explore the nuances and complexity of China’s foreign relations and domestic issues. The China and the World research project aims to contextualize and better understand China’s regional and global interactions, both from the perspective of China itself and from that of other countries. Beginning with Northeast Asia, the project will analyze China’s relations region-by-region throughout the world, and will involve experts from Stanford, China, and the regions studied. It kicks off with a Shorenstein APARC-organized workshop held Mar. 19 and 20 at the new Stanford Center at Peking University.

Fingar discusses the development of China’s foreign relations since 1978, and describes the project and workshop’s background.

In the three decades since Deng Xiaoping enacted his 1978 Open Door reforms, what have been the main trends in China’s global engagement?

The general trend since 1978 has been for China to become increasingly active and engaged in a growing number of places around the world. There have been a number of phases to this.

The “honeymoon period” of U.S.-China relations (1979–1989) was a period of essentially no competition to China’s interaction within the U.S.-led world economic system. China concentrated on the OECD countries—especially the United States, Japan, and Western Europe—that had money to invest and willingness to trade.

After the 1989 Tiananmen Square Incident, China’s international options became more constrained as its relations with the developed world plateaued. It began to reach out to the places that would deal with it: Southeast Asia and particularly Africa. This was in part diplomatically motivated, and in part a search for new markets for the low-end goods it was beginning to produce. It was also the beginning of its search for energy.

Around 2000, China transitioned from building a more modern economy towards being one—beginning the era of its “rise.” China’s demand for resources went up, as did its capacity to supply more markets and its ability to invest more of its growing foreign exchange earnings. It became globally active, proclaiming that it had a new, less exploitative model than what the United States and Europe offered.

What Northeast Asia issues do you think China will focus on this year, especially as it plans for a major leadership transition?

North Korea’s stability and China’s growing investments in the DPRK. Beijing is acutely interested in whether Kim Jong Un will prove a viable leader and whether the regime will be able to manage its new challenges. China is concerned about possible North Korean provocations that might trigger responses by South Korea and/or the United States, putting at risk the peaceful regional and international situation China needs for its political and economic development.

The second issue is answering the question: what does the U.S. pivot toward Asia mean? What does it mean in terms of security, economics, and relations with Japan and Korea? China is the largest trading partner for each of these countries. They value it as a market, and as a source of resources. Yet they also worry about being excessively dependent on China. They appear not to have worried about this quite so much when their dependence on the U.S. market was comparable.

Two full workshop sessions will be devoted to Japan and South Korea, both countries with close U.S. ties. What are the most important factors with regard to China’s rise for these two countries? What about for Southeast Asia?

One of the reasons for our upcoming Beijing workshop is to develop a general template of questions we can ask for each region. We want to avoid focusing the questions too narrowly on Northeast Asia.

For Japan and Korea, one factor has to do with economic opportunities and with their own vulnerabilities. The other has to do with the security challenges of China’s rise, and the uncertainty of its military aspirations. Japan and Korea do not want to be drawn into U.S.-led activities, but they still value the United States for protection. They are concerned about managing the decoupling of economic and security dependence, about no longer being dependent on the same country for both.

Many regional issues are interrelated, such as maritime territorial claims and naval expansion. China is an economic player in Southeast Asia, and the Philippines and Thailand have an alliance with the United States. Indonesia is a rising county in Southeast Asia, and India is an outside player in the region. The U.S. 7th Fleet currently defends the shipping lanes to Northeast Asia that go through Southeast Asia, which probably is not the long-term solution.  

Russia played an important role in shaping the political ideology in the early days of the People’s Republic of China, and the politics of both countries—especially Russia—have changed so much. What is their relationship like now?

Correct and limited. The West imposed a military hardware embargo on China after Tiananmen, so Russia is a limited alternative for that, and it is also a source of energy and other resources. It is fair to say China has something close to disdain for Russia, for what it sees as political confusion and economic mismanagement. The idea of a strategic triangle—using Russia to balance U.S. influence—is something China sees as unviable.

As you move forward with this project, what is the ultimate goal?

The goal is to understand the dynamics of interaction—to understand the bigger picture. Other countries have objectives and concerns with regard to China, while China has objectives and concerns of its own. It is about identifying things such as where they see the same and different kinds of opportunities; what concerns they have about third country interests or involvement; and how they evaluate the success of policies to date.  

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"Focus straight ahead on the development of Pudong [Shanghai commercial district]," says Deng Xiaoping on a poster at the 2010 Shanghai World Expo.
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On January 24, Madeline Rees, former U.N. high commissioner for human rights in Bosnia and secretary general for the Women’s International League for Peace and Freedom, spoke at the second installment of the Sanela Diana Jenkins International Speaker Series. Rees, has been working with the CDDRL Program on Human Rights to promote research on human trafficking, posed an interesting question: can extraterritorial jurisdiction — the legal ability of a government to exercise authority beyond its borders — be a tool for improving accountability for human rights abuse during peacekeeping operations?

Rees was referring to a situation that she experienced in Bosnia where peacekeepers reportedly abused, tortured and actively trafficked women and girls. She noted, however, that there have been similar situations and accusations of sexual exploitation and abuse, including sex trafficking, in U.N. missions ranging from Cambodia to Haiti to Congo since the 1990s. Rees argued that these abuses and the involvement of peacekeepers in human trafficking in particular, result from a combination of factors, which include:

  • The perception of immunity (based on UN peacekeepers status)
  • Impunity that results from the lack of specific legislation and enforcement mechanisms
  • Lack of formal training
  • Peer pressure
  • Patriarchic militarized model of peacekeeping

There has been some slow progress. Rees recalled that when she first brought up the issue of human trafficking to the U.N., laughter was a common response. Her struggle, portrayed in part in the recent film The Whistleblower, has enabled an open discussion within the U.N. In 2007, the U.N. created the Department of Field Support and made some structural changes, but these reforms have not yet addressed the heart of the problem. In part, Rees believes, this is because the U.N. has lacked the political will to hold peacekeepers accountable for their actions.

 

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On January 17, the Program on Human Rights welcomed Bradley Myles and Helga Konrad to the Stanford campus to open the 2012 Sanela Diana Jenkins International Speaker Series. Bradley Myles is the executive director and CEO of Polaris, a leading organization in the United States combating all forms of human trafficking. Helga Konrad is the special representative on combating trafficking in human beings at the Organization for Security and Co-operation in Europe.

Drawing from a combined thirty years of experience working in the field of human trafficking, Myles and Konrad discussed the challenges of making accurate assessments of the magnitude of the problem. Myles explained that the US does not have reliable estimates on the number of victims of human trafficking. The lack of data has undermined efforts to implement public policy, raise awareness and funding. There are many reasons why assessment of human trafficking is very difficult. Myles argued, for example, that within the United States there are many different definitions of human trafficking that facilitate misconceptions of human trafficking and create a vacuum in the law.

Konrad pointed out that in Europe most countries have adopted new anti-trafficking laws or amended their criminal codes to provide for the specific crime of human trafficking. However, the need for national and regional coordination mechanisms and frameworks persists. She highlighted that although data is important, one person submitted to human trafficking is one too many. In her opinion, Europe still needs a regional referral mechanism that would interact with services and other counter-measures (shelters, hotlines, voluntary repatriation, and short-term assistance) to protect victims and not criminalize them.

In the United States, the Polaris Project has been providing services to survivors and striving for long-term solutions since 2002. Polaris operates the National Human Trafficking Resource Center hotline 1.888.3737.888 and works to train different audiences including police officers, health providers and child protection social workers. Myles mentioned that awareness and information enables people to take responsibility. He believes that it is possible to create a movement to empower communities to change laws, policies, costumes, and effectively combat human trafficking.

 

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The Europe Center is proud to have supported the publication of Nelly Sachs: Flight and Metamorphosis (Feb. 2012), a major work on the life and poetry of Nelly Sachs, and the cultural response to trauma, immigration, and memory.  Written by Aris Fioretos and published by Stanford University Press, this richly illustrated volume marks the first time that this Nobel Laureate's life story has been made available in English.  

In celebration of Nelly Sach's life and poetry, and inspired by the publication of this biography, The Europe Center is co-sponsoring the public workshop Nelly Sachs: Migration and Memory, Poetry and Context at Stanford on March 8th.  In addition to dramatic poetry readings and reception, this event will include a book signing by author Aris Fioretos (books will also be available for purchase.) 

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Nearly a year has passed since an earthquake triggered a tsunami that swept away entire communities on Japan’s northeastern coast, leading to a series of accidents at the Fukushima nuclear complex. Since the March 11 disaster, Japan is experiencing a growing sense of community, and it faces a potential opportunity for innovation in the energy industry and economy. Masahiko Aoki and Kenji E. Kushida discuss post-March 11 developments, and a related conference at Stanford scheduled for February 27.

Aoki is the Henri and Tomoye Takahashi Professor Emeritus of Japanese Studies, and director of the Japan Studies Program at the Shorenstein-Asia Pacific Research Center at Stanford University.

Kushida is the Takahashi Research Associate in Japanese Studies at Shorenstein APARC, and a Stanford graduate (BA ’01, and MA ’03).

One Year After Japan's 3/11 Disaster will bring together experts from Stanford, Japan, and Europe for a discussion of the major economic, political, energy, and societal challenges and growth in post-Fukushima Japan.   

Looking back a year later, what do you think are important lessons we can learn from March 11?

Masahiko Aoki: Japan has often faced disasters leading to the complete destruction of cities and enormous losses of life. In the last century alone, there was the great Tokyo earthquake of 1923; wartime damage in Hiroshima, Nagasaki, and other metropolitan areas; the Kobe earthquake of 1995; and so on. Each time, Japan rebuilt its life and infrastructure anew. Accepting the reality of a disaster and making efforts to rebuild is in a sense deeply embedded in Japan’s collective DNA. However, the March 11 disaster was not only just a natural disaster. People are now well aware that there were lots of elements of human and institutional error in terms of preparing for and coping with natural disasters. Recent geographical studies and historical documents reveal that large-scale earthquake-tsunami disasters comparable to March 11 have occurred four times in the last 4,000 years. It provides Japan with a good opportunity for thinking about how to build sustainable societies and cities.  

Kenji Kushida: Big shocks always cause big changes, and the type of change depends on the kind of shock. With March 11, there was the human tragedy of people literally getting washed away. It also raised the question of how to restructure energy markets, which is an area where outcomes in Japan can affect worldwide restructuring. This particular shock then is triggering a whole set of fairly slow moving, but very transformative changes that could take place over the next few years.

What trends are we seeing in Japan’s energy industry now, and what are the implications for Japan’s future energy policy?

Aoki: When I flew into Tokyo the day after the great earthquake, the city was quite dark. But by the summertime, it was not only lit up, but there was a blue hue to the light—this was due to the wide adoption of energy-efficient LED lighting. Even with the nuclear plants down and 25 percent of the electric capacity gone, there were no major blackouts thanks to energy-saving measures. This kind of incident motivates people to explore ways to innovate the energy industry. For example, Japan’s energy-efficient auto industry took off in the late 1970s in reaction to the Oil Shock.

Japan’s energy industry is currently run by regional monopolies. Tokyo Electric Power Company (TEPCO), for example, monopolizes everything from power generation to retail distribution. In the past, there had been an attempt to break up the different parts of the power monopolies into separate entities. But only a bit of reform was made because of very strong resistance from TEPCO. Now TEPCO is on the verge of insolvency, so Japan has a very good chance to restructure its power industry. People are again starting to think about breaking up the regional monopolies and about innovation, which several experts will discuss during our conference.

Kushida: We will also draw on Stanford’s being in California to think about how to prevent Enron-style market manipulation and rolling blackouts from happening in Japan. A lot of it has to do with the rules and regulations that create an energy market. In the tsunami-devastated areas of Japan, there is also a tremendous opportunity for ground-up investment in new forms of energy. Silicon Valley technologies and companies can help design the next generation of renewable, sustainable energy systems in those areas.
In Japan, there is a sense that people have rediscovered their ties to one another after the disaster.

-Masahiko Aoki, Director, Japan Studies Program


During the recovery, many Japanese citizens demonstrated a remarkable strength and collaborative spirit. Has this changed?

Aoki: Annually on New Year’s Day in Japan, a high-level Buddhist priest writes the calligraphy for a word representing the spirit of the people. This year he wrote “絆”“bond” (kizuna)signifying the ties both among Japan’s citizens, and between Japanese and the generous help and aid that poured in after March 11.

In Japan, there is a sense that people have rediscovered their ties to one another after the disaster. Before March 11, there was some worry that young people were not so concerned about others and about tradition. Many young people now want to become volunteers, and there is also a better sense of community.

What has the impact been on Japan’s economy, and what are the prospects for recovery?

Aoki: There is an increasing awareness that Japan cannot sustain the same kinds of export-oriented, manufacturing-based industrial structures it has over the past decades.

Since 2007, Japan’s net foreign exchange receipts from royalties, investments, and the like have exceeded those from trade. The economic structure is becoming less export oriented, so the March 11 disaster might trigger the acceleration of a more domestic-oriented economy. It might also lead to an increase in foreign direct investment, prompted in part by population aging and partly by appreciation of the yen. Japan will become more domestic market oriented, while at the same time more internationally active. A lot next year depends on what will happen with Europe’s economy, but otherwise the prospect for Japan’s GDP is not bad because of reconstruction demand.

Kushida: Recovering from March 11 presents a potentially more productive experience than the 2008 global financial crisis. In 2008, Japan’s exports dropped dramatically for a few months and then there was a sharp recession that recovered quickly. There was not a whole lot that people or companies could do, other than adjust to the potential decline. March 11 provides more opportunities for innovation at the company and individual level. 

As it is finding growth in the domestic market, Japan has been criticized lately for being “inward-looking.” But two things from this latest crisis are contributing to looking outward a little more. One is the sense of vulnerability and transience, so strengthening Japan’s economic base becomes a much more urgent matter. The second is that in the aftermath of the euro crisis, the very strong yen has also led to a huge move toward outward acquisitions that are becoming integrated with the domestic economy.

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Workers prepare to install solar panels on a Japanese house, Jan. 2011.
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Listen to Stanford historian Edith Sheffer's seminar about what truly divided Germany. Her talk was co-sponsored by the Center for Russian, East European & Eurasian Studies (CREEES), the Center for International Security and Cooperation (CISAC), The Europe Center and the German Studies department.
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Walter H. Shorenstein
Asia-Pacific Research Center
616 Serra St., Encina Hall C302-23
Stanford University
Stanford, CA 94305-6055

(650) 723-3368 (650) 723-6530
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Visiting Professor
ChengJosephWEB.jpg PhD

Research Interests

Asia-Pacific and global competitiveness; national innovation and technology policies; foreign R&D investment; strategy and organization design for transnational firms.

Professional Biography

Joseph L. C. Cheng joins the Walter H. Shorenstein Asia-Pacific Research Center (Shorenstein APARC) in 2012 from the University of Illinois at Urbana-Champaign where he is currently professor of international business and director of the CIC Center for Advanced Study in International Competitiveness. CIC (Committee on Institutional Cooperation) is the nation’s primer consortium of top-tier research universities in the Midwest, including the Big Ten Conference members and the University of Chicago. 

During his time at Shorenstein APARC, Cheng will conduct research on the international competitiveness of multinational firms from the Asia-Pacific, with a focus on the JACKS countries (Japan, Australia, China, Korea, and Singapore). The project has two main objectives:  (1) to identify the key competitive advantages of the JACKS countries both individually and collectively as a cluster of economies; and (2) to investigate how indigenous firms from the JACKS countries internationalize and leverage home-based advantages to enhance their competitiveness overseas. The research findings will be reported in a forthcoming book that Cheng is currently writing: Asia-Pacific and the JACKS Multinationals: Economics, Culture, and International Competitiveness.

Cheng is a consulting editor for the Journal of International Business Studies and senior editorial consultant to the European Journal of International Management. He is also a guest editor for an upcoming special issue of Long Range Planning on “China Business and International Competitiveness: Economics, Politics, and Technology.” Additionally, he currently serves or has served on the editorial boards of several other journals, including Management International Review, Journal of World Business, Organizational Dynamics, and Journal of Engineering and Technology Management.

Cheng holds a PhD in business administration from the University of Michigan and a BS (with honors) in industrial engineering from the University of Wisconsin-Madison.

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