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Noa Ronkin
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When U.S. Secretary of State Antony Blinken, in a major China policy speech on May 26, 2022, outlined the Biden administration's strategy to outcompete China, he noted that China “has announced its ambition to create a sphere of influence in the Indo-Pacific and to become the world’s leading power.” But what exactly is China's influence, and how do we know it when we see it? These are some of the questions Dr. Enze Han seeks to answer.

Han, an associate professor at the University of Hong Kong's Department of Politics and Public Administration, joined APARC as a Lee Kong Chian NUS-Stanford Fellow on Contemporary Southeast Asia for the 2022 spring quarter. The fellowship, which is hosted jointly by APARC’s Southeast Asia Program (SeAP) and the Faculty of Arts and Social Sciences at the National University of Singapore, enabled Han to advance his research into Southeast Asia’s relations with China. He recently discussed his work in a seminar hosted by SeAP.

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Conceptualizing China as an Unconventional Great Power

Most studies on China’s presence in Southeast Asia tend to focus on China’s power dynamics and how it wields it to gain influence within the region. The emphasis is on intention and causation: how China willingly uses its power to coerce, coopt, or persuade Southeast Asian states to behave in particular ways. This characterization, Han argues, ignores the contemporary Chinese state as fragmented, decentralized, and internationalized. Han goes beyond this conventional approach to explore the variety of actors and the intended versus unintended outcomes associated with China’s presence in Southeast Asia. It is necessary to understand such nuance and complexity, he claims, if we are to make sense of China’s relations with Southeast Asian states.

China’s presence in Southeast Asia is by no means monolithic, notes Han. Rather, it takes numerous everyday forms and involves not only state actors, such as diplomatic missions and state-owned enterprises, but also non-state actors that may or may not be closely associated with the Chinese state. These include civil society organizations, private businesses, and ordinary Chinese citizens who reside in Southeast Asia for work, study, or retirement, in addition to Chinese tourists. The actions of these multiple stakeholders can have intended and unintended consequences, Han argues. In particular, the effects of non-state Chinese actors’ daily encounters with local communities in Southeast Asia deserve attention, he says.

Shadow Economy and Offshore Gambling in Eastern Myanmar

Consider, for instance, the case of the “new city” of Shwe Kokko in Myanmar’s Southeastern Kayin State (known as 'Karen State' among the ethnic-Karen population living there), on the border with Thailand. The emerging “Chinatown” project in Shwe Kokko began attracting international attention as capital investment flowed into the former farmland on the banks of the Moei River and residential complexes, hotels, shops, Chinese restaurants, and glitzy casinos sprang up. Allegations of Chinese mafia involvement have plagued the massive city project, and media outlets and Western observers attributed culpability to the Chinese government, portraying the project as part of the Belt and Road Initiative.

However, Han points out that empirical details show that the new city project was led by a company headed by a fugitive Chinese businessman fleeing the Chinese government’s crackdown on illegal offshore gambling. Therefore, Shwe Kokko is not quite a case of Chinese Belt and Road Initiative expansionism using complex networks of PRC citizens and ethnic Chinese in a neighboring country to fuel dangerous activities colluding with Chinese officials and government agencies. Instead, it demonstrates how shadow economies like the online gambling industry are responding to regulatory attempts by the Chinese state. According to Han, to make sense of the Shwe Kokko story, one must understand who the non-state actors are and how they interact with local communities in Southeast Asian borderlands.

Market Demand and Agricultural Transformation in Northern Myanmar

Now turn to Northern Myanmar, where Han conducted fieldwork in 2019. Over the past decade, he explains, Northern Myanmar has undergone accelerated deforestation due to rising agricultural production in response to increasing demand for grains such as maize and their elevated global commodity market prices. In Myanmar’s Shan State, which borders China, the expansion of maize cultivation is closely related to a surge in Chinese demand for animal feed resulting from the rising domestic consumption of meat. However, a Chinese state ban on maize import from Myanmar had created rampant smuggling coupled with irregular enforcement of border inspections and schisms between the commodity production cycle and financing for local farmers.

One may draw a correlation between the rising demand for meat consumption in China that seemingly created a ripple effect in Myanmar, leading to the expansion of maize cultivation, deforestation, and economic precarity for local farmers. But then again, is this a case of Chinese influence operations? There is no evidence pointing to such deliberate attempts by the Chinese state to influence its neighboring country, although the resulting economic and environmental consequences are related to conditions in China.

Thus, Han argues, understanding an increasingly globalized China and its variegated impacts around the world requires conceptual flexibility. In particular, when referring to China's presence and influence in Southeast Asia, one must not assume a monolith with hegemonic designs for its neighboring states but rather differentiate between multiple types of actors with long histories and multifaceted consequences, both intended and unintended.

Enze Han

Enze Han

Lee Kong Chian NUS-Stanford Fellow on Contemporary Southeast Asia, 2021-2022
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ASEAN leaders during a Summit discussion.
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ASEAN’s Five-Point Consensus ‘Not Appropriate’ for Myanmar: Ex-US Ambassador

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Kate Imy
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How Feminist Military History Sheds Light on Colonial Rule and Warfare

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Departing from international relations scholarship and popular media accounts that tend to portray China as a great power intent on establishing a sphere of influence in Southeast Asia, Lee Kong Chian NUS-Stanford Fellow on Southeast Asia Enze Han argues for conceptualizing China as an unconventional great power whose diverse actors, particularly non-state ones, impact its influence in the region.

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Ryan A. Musto
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China is ready to rock with the Treaty of Bangkok.

In a rare appearance at the special online summit for the Association of Southeast Asian Nations (ASEAN) on Nov. 22, China’s President Xi Jinping announced that China is prepared to sign the protocol of a 1995 agreement that establishes Southeast Asia as a nuclear-weapon-free zone. Under the agreement, known as the Bangkok Treaty, 10 regional states renounce the right to nuclear weapons in any form within the ASEAN zone. If it joins the treaty, China would agree not to use or threaten the use of nuclear weapons within the zone or against its members. It would make China the first nuclear-weapon state to adhere.

Read the rest at Lawfare Blog 

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The flags of Association of Southeast Asia Nations (ASEAN) members in ASEAN headquarter at Jalan Sisingamangaraja No.70A, South Jakarta, Indonesia. From left the flags of: Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, Vietnam. | Gunawan Kartapranata, https://commons.wikimedia.org/wiki/File:ASEAN_Flags.jpg
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President Xi Jinping recently announced that China wants to adhere to Southeast Asia’s nuclear-free zone “as early as possible" to become the first nuclear state to join the pact. Musto finds that Xi wants to act now in order to distract from China’s nuclear build-up and, more importantly, counter the AUKUS security partnership.

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Chaeri Park
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My summer internship experience at the Asia Society Policy Institute (ASPI) was remote due to the pandemic. It was nonetheless a memorable experience as I got to explore cybersecurity issues around Southeast Asia. ASPI is a think-tank under the umbrella of the Asia Society family, which aims to explain the diversity of Asia to the United States and the complexity of the United States to Asia. It heightens understanding between the two regions and tackles major policy challenges confronting the Asia-Pacific in security, prosperity, and sustainability by providing solution-oriented recommendations and ideas for such challenges.

At Asia Society Policy Institute (ASPI), I delved into policies and developments around the data privacy issue in Malaysia, Indonesia, Vietnam, Thailand, and Singapore. I learned how these countries bring up policies and collaborate bilaterally, regionally, and globally to tackle problems around cybersecurity. My summer internship experience also enriched my knowledge and understanding of the world.

 
I learned how these countries bring up policies and collaborate bilaterally, regionally, and globally to tackle problems around cybersecurity. My summer internship experience also enriched my knowledge and understanding of the world.

Working at ASPI

The internship started in June 2021, around the end of the spring quarter, and continued through the end of summer. There were a total of four interns in the Washington D.C. office. I mainly worked with a small team of three - Elina, my supervisor, Chris, my co-intern, and I - which focused on cybersecurity issues.

My supervisor, Elina Noor, an inspiring expert in cyberspace, especially in the Southeast Asia region, led the team with great insights and leadership. Along with my co-intern, Chris, we spent the entire three months working on a project that studies Ethical Artificial Intelligence (AI) and Data for Inclusive Development in Southeast Asia. The project itself is expected to continue for a year, and we were in the early stages of the project. 

As a security research intern, I collected data and assisted the research. Additionally, I focused on building-up fundamental understanding of the project - determining the stages of development each country is in, how they respond to the global trend and issues, and what criteria need to be included in analyzing the different characteristics of each country, considering both the local context and the global trend. In the next nine months, the project will survey countries’ positions on these issues, assess the importance and impact of the topic, and highlight the significance of engaging in international developments. I am excited for the final product to come forth, a collaborative work of all people involved in this project.

Other responsibilities also came along the way. I had the opportunity to find the correlation between the South China Sea dispute and cyber incidents between the countries claiming sovereignty over the region. These incidents are ambiguous to identify, and the attribution is not always clear. It was also challenging to make a data set from scratch as it was a whole new experience. However, I managed to conclude that cyber incidents spiked around the time of the major disputes around the South China Sea. No secret that the Global Economy class taught by Professor Aturupane from Fall 2020-21 helped me make sense of the data set and read graphs!

The interns in the New York and Washington D.C. office took turns doing daily press scans, following up with news from the Northeast to the Middle East. It was amazing to learn how Asia, as one big continent, held such a diverse set of news and events occurring each day. I also accumulated lists of people in congress, embassies, and the government to share the op-eds from ASPI. Most of these administrative works were done as a team effort, and I met a larger ASPI family through the experience.

Ending My Internship

Working at ASPI was a rewarding way to spend my summer. I owe special thanks to Elina and Chris, who were incredibly supportive and made me feel like I was making a significant contribution to the institution. I was also rewarded with knowledge and insights into new topics in Asia and its relations with the world, mainly focusing on the U.S. It provided great insight into the developments of cybersecurity issues and data privacy around Southeast Asian countries. It was a fantastic opportunity to apply what I learned at Stanford to real-world policy problems. I thoroughly enjoyed my internship this summer and feel ready to embark on new challenges that will come forth in my career path.

 
Chaeri Park, Master's in International Policy ('22)

Chaeri Park

Master's in International Policy Class of 2022
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During her summer internship with the Asia Policy Institute, Chaeri Park (Master's in International Policy '22) focused on how nations in Southeast Asia are working bilaterally, regionally, and globally to tackle problems around cybersecurity.

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Cover of book "Drivers of Innovation"

Innovation and entrepreneurship rank highly on the strategic agenda of most countries today. As global economic competition intensifies, many national policymakers now recognize the central importance of entrepreneurship education and the building of financial institutions to promote long-term innovation, entrepreneurship, and economic growth. Drivers of Innovation brings together scholars from the United States and Asia to explore those education and finance policies that might be conducive to accelerating innovation and developing a more entrepreneurial workforce in East Asia. 

Some of the questions covered include: How do universities in China and Singapore experiment with new types of learning in their quest to promote innovation and entrepreneurship? Is there a need to transform the traditional university into an “entrepreneurial university”? What are the recent developments in and outstanding challenges to financing innovation in China and Japan? What is the government’s role in promoting innovative entrepreneurship under the shadow of big business in South Korea? What can we learn about the capacity of services to drive innovation-led growth in India? 

Drivers of Innovation will serve as a valuable reference for scholars and policymakers working to develop human capital for innovation in Asia.

Contents

  1. Educating Entrepreneurs and Financing Innovation in Asia 
    Fei Yan, Yong Suk Lee, Lin William Cong, Charles Eesley, and Charles Lee
  2. Fostering Entrepreneurship and Innovation: Education, Human Capital, and the Institutional Environment 
    Charles Eesley, Lijie Zhou, and You (Willow) Wu
  3. Entrepreneurial Scaling Strategy: Managerial and Policy Considerations 
    David H. Hsu
  4. Innovation Policy and Star Scientists in Japan 
    Tatsuo Sasaki, Hiromi S. Nagane, Yuta Fukudome, and Kanetaka Maki
  5. Financing Innovation in Japan: Challenges and Recent Progress 
    Takeo Hoshi and Kenji Kushida
  6. Promoting Entrepreneurship under the Shadow of Big Business in Korea: The Role of the Government 
    Hicheon Kim, Dohyeon Kim, and He Soung Ahn
  7. The Creativity and Labor Market Performance of Korean College Graduates: Implications for Human Capital Policy 
    Jin-Yeong Kim
  8. Financing Innovative Enterprises in China: A Public Policy Perspective 
    Lin William Cong, Charles M. C. Lee, Yuanyu Qu, and Tao She
  9. Forging Entrepreneurship in Asia: A Comparative Study of Tsinghua University and the National University of Singapore 
    Zhou Zhong, Fei Yan, and Chao Zhang
  10. Education and Human Capital for Innovation in India’s Service Sector 
    Rafiq Dossani
  11. In Need of a Big Bang: Toward a Merit-Based System for Government-Sponsored Research in India 
    Dinsha Mistree
  12. The Implications of AI for Business and Education, and Singapore’s Policy Response 
    Mohan Kankanhalli and Bernard Yeung

 

 

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Entrepreneurship, Education, and Finance in Asia

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Yong Suk Lee
Fei Yan
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Michael (Mike) Breger joined APARC in 2021 and serves as the Center's communications manager. He collaborates with the Center's leadership to share the work and expertise of APARC faculty and researchers with a broad audience of academics, policymakers, and industry leaders across the globe. 

Michael started his career at Stanford working at Green Library, and later at the Center for Russian, East European and Eurasian Studies, serving as the event and communications coordinator. He has also worked in a variety of sales and marketing roles in Silicon Valley.

Michael holds a master's in liberal arts from Stanford University and a bachelor's in history and astronomy from the University of Virginia. A history buff and avid follower of international current events, Michael loves learning about different cultures, languages, and literatures. When he is not at work, Michael enjoys reading, painting, music, and the outdoors.

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The political quarterly Democracy Journal recently published a four-essay collection, titled The Stakes in Asia, on the future of U.S.-Asian relations. APARC's Southeast Asia Program Director Donald K. Emmerson contributed to this collection the essay Southeast Asia: China’s Long Shadow. The other contributors included Glen Fukushima, former Deputy Assistant United States Trade Representative for Japan and China, Sheena Chestnut Greitens, Associate Professor at the University of Texas at Austin, and Duyeon Kim, Adjunct Senior Fellow with the Indo-Pacific Security Program at the Centre for New American Security.

On June 30, 2021, Democracy hosted a panel discussion, moderated by journalist and Asia expert Steve Clemons, that brought all four experts together to examine the latest developments in Asia and how the United States might successfully engage with the region in the years to come. Watch here:

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  American Institute for Indonesian Studies (AIFIS) and Michigan State University (MSU) Asian Studies Center's inaugural Conference on Indonesian Studies, June 23-26, 2021.
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An Island that lies inside Taiwan's territory is seen with the Chinese city of Xiamen in the background.
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The Taiwan Temptation

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On a panel discussion hosted by the political quarterly 'Democracy,' Donald K. Emmerson joins experts to assess how the Biden administration is navigating the U.S. relationships in Asia.

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Donald K. Emmerson
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This essay was first published in the political quarterly Democracy Journal. It is part of a four-essay collection, titled The Stakes in Asia, on the future of U.S.-Asian relations. This essay focuses on the nations of Southeast Asia, the three other essays on China, Japan, and South and North Korea. 


 

EVERYTHING WILL BE OKAY” read the t-shirt worn by 19-year-old Ma Kyal Sin, also known as “Angel,” in Mandalay, Myanmar, on March 3, 2021. Hundreds of thousands of mostly young Burmese had thronged the streets of their country’s cities to continue protesting the military’s seizure of power the month before. She had joined them to serve on the front line, hoping to protect her unarmed companions from the advancing police. She was shot in the back of the head and died. Soon after she was buried, the junta exhumed her body, took it away, and filled her grave with concrete. The regime then claimed that autopsy results showed the bullet in her brain could only have been fired by another demonstrator. Yet when she was shot, she had her back to the oncoming police.

Everything is not okay in Myanmar and won’t be for some time to come. As of the beginning of April, the country’s military, or Tatmadaw, led by the coup’s leader, army General Min Aung Hlaing, had killed an estimated 400 unarmed Burmese, who were guilty of nothing but peacefully protesting the general’s merciless usurping regime. By mid-April, the junta’s murders exceeded 700 in number.

Nor is everything okay next door in Thailand, another mainland Southeast Asian state. Seven years have passed since that country’s latest coup in 2014—the 13th successful seizure of power there since the overthrow of its then-absolute monarchy in 1932. Although elections were finally held in 2019, the military manipulated them to reinforce its rule. Young Thais have been demonstrating against the government off and on since early in 2020.

East of Thailand are three more China-facing states in mainland Southeast Asia: Cambodia, Laos, and Vietnam. Cambodia’s dictator Hun Sen has kept his grip on power for more than 36 years, a record exceeded in Asia only by the Ayatollah Khameini in Iran. In March 2021, a Cambodian court did Hun Sen’s bidding yet again by sentencing the nine senior members of the country’s already banned opposition party, including its leader, to more than two decades in prison, effectively barring them from ever returning home from exile.

Laos is, in effect, a fiefdom of the harshly dominant Lao People’s Revolutionary Party (LPRP), whose leaders have quashed opposition, curtailed liberties, and forcibly suppressed the formation of a civil society independent of that single-party state. Vietnam’s draconian law on cybersecurity outlaws the “organizing, activating, colluding, instigating, bribing, cheating or tricking, manipulating, training, or drilling” of “people to oppose the State of the Socialist Republic of Vietnam,” while also criminalizing undefined actions such as “causing confusion,” “distorting history,” and “denying revolutionary achievements.” Unsurprisingly, Laos and Vietnam rank 172nd and 175th, respectively, on the 2020 World Press Freedom Index of 180 countries.

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The Mainland-Maritime Contrast

Myanmar, Thailand, Cambodia, Laos, and Vietnam constitute sub-continental Southeast Asia. Myanmar, Laos, and Vietnam share land borders with China. The remaining Southeast Asian states—the Philippines, Malaysia, Brunei, Indonesia, Singapore, and Timor-Leste—are peninsular or insular in character and farther from China. It is common practice in Southeast Asian studies to distinguish the China-proximate five “landed” or mainland countries in northwestern Southeast Asia from the “maritime” six farther to the south and the east.

Six of the ten members of the Association of Southeast Asian Nations are “Not Free”: Brunei, Cambodia, Laos, Myanmar, Thailand, and Vietnam. More than half of ASEAN is despotic by this measure, and of those six authoritarian members, five are on the mainland.

Geography and geology are not the same. Of the five mainland countries, four have seacoasts; only Laos is land-locked. All of the six maritime states are entirely or partly archipelagic. But Malaysia and Singapore are subcontinental in that they occupy the southernmost end of peninsular Southeast Asia. A projected three-stranded set of overland railroads connecting Malaysia and Singapore to mainland China, if completed, could socioeconomically enhance their subcontinental character. The strands would run southward from Kunming, the capital city of China’s Yunnan province, through Myanmar, Laos, and Vietnam to Bangkok in Thailand and onward through Malaysia to Singapore. Completing these north-south connections has been a priority of Xi Jinping’s Belt and Road Initiative (BRI).

Fears of “mainlandization”—Sinification—have arisen in that context. China’s presence is already amply manifest in the northern parts of Myanmar and Laos, where economic and cultural enclaves have formed around the influxes of tourists and immigrants from the PRC. Expatriate and local Chinese dominate the economy of Myanmar’s second largest city, Mandalay, where young Ma Kyal Sin died. Mandarin is widely spoken there. If the BRI succeeds, if the north-south tracks are laid and maintained, and if traffic then flourishes back and forth to the mutual “win-win” benefit of China and all of the five Southeast Asian economies along the way, Beijing could further enlarge its footprint in the region.

Could does not mean will. The world economy shrank by more than 4 percent in 2020. Infrastructure is costly, and its returns are long-term. To varying extents in different countries, envisioned connectivity has become a casualty of the COVID-19 pandemic, as governments have closed borders to reduce transmission of the virus and its variants. In 2019-2020, the pace of overseas lending by China’s policy banks slowed, and Chinese spending on megaprojects in the BRI fell to its lowest level ever. China’s latest five-year plan calls for “dual circulation,” abroad as well as at home, but the domestic economy is given priority.

That said, China’s economic growth in 2021 could reach 8 percent and thereby fuel Beijing’s campaign for influence in mainland Southeast Asia. In Laos, for example, aggressive Chinese lenders and corrupt local elites have indebted that country to the point that its lucrative electricity exports may soon be controlled by China. As one of the poorest members of the Association of Southeast Asian Nations (ASEAN), Laos needs those revenues. Majority control over the country’s network of high-voltage power lines could give Beijing leverage that it could wield to ensure that Laos remains a compliant “friend” of China.

As illustrated by the case of China-facing Laos, the distribution of despotism in Southeast Asia tends to reinforce the mainland-maritime divide. “Many have said over the years that ASEAN is a club of dictators,” a Human Rights Watch official observed in 2016.

That harsh judgment is less of an exaggeration than one would wish. According to Freedom House, six of the ten members of the Association of Southeast Asian Nations are “Not Free”: Brunei, Cambodia, Laos, Myanmar, Thailand, and Vietnam. More than half of ASEAN is despotic by this measure, and of those six authoritarian members, five are on the mainland. The only maritime autocracy is tiny Brunei, an absolute monarchy perched on the coast of Borneo facing the South China Sea. The remaining four ASEAN states—Indonesia, Malaysia, the Philippines, and Singapore—are all maritime and rated “Partly Free.” The lone “Free” country in the region is Timor-Leste, which occupies three neighboring bits of territory in the Indonesian archipelago and is not a member of ASEAN, although it would like to join.

Three crude descriptions follow: First, mainland Southeast Asia is autocratic. Second, maritime Southeast Asia is semi-democratic—a middle or mixed position reflected in the balance between the two smallest sea-linked states by population, autocratic Brunei and democratic Timor-Leste. Third, ASEAN’s membership tilts authoritarian, being six-tenths autocratic, four-tenths semi-democratic, and zero tenths democratic by Freedom House standards.

China’s Role: ‘Stability’ Over Democracy

How should China and its strategy be factored into these comparisons? Is geography destiny? Xi Jinping and his advisors would like their Southeast Asian counterparts to think so. Consider Beijing’s proposal for an ASEAN-China Community of Common Destiny. Does “community of common destiny” express China’s empathy, its presumption, or its intention to possess and preempt? Beijing wants its Southeast Asian neighbors to treat the idea of sharing a community as reassuring proof of how much and how sincerely China cares about them and their region. But a common destiny precludes divergent scenarios and destinations. If China’s destiny is to remain a party-state dictatorship under one leader for life, does Beijing want that same fate to encompass the rest of Southeast Asia? Does it strive to “mainlandize” the entire region by reinforcing top-down rule in “Not Free” Southeast Asia and making the “Partly Free” maritime states “Not Free” as well?

Shorn of all pretense, Xi Jinping’s hope is that China’s southern neighbors will look at a map and give up [...] Although China’s political template is authoritarian, Xi is not an evangelist for autocracy in Southeast Asia.

China is not evangelically despotic toward its neighbors in an ideological sense. “Socialism with Chinese characteristics” is an unexportable mishmash—oxymoronic in theory, contingent in practice, and parochial by its very name. As a candidate for travel beyond the PRC, it lacks legs. Nor is China counting on converting Southeast Asians into loyal fans of a Chinese model. Beijing is vigorously trying to bolster its soft power and incentivize its neighbors to acknowledge and join a Chinese sphere of regional influence voluntarily. The ASEAN states collectively are already China’s largest trading partner and vice versa. But if public diplomacy and economic embraces fail, it is fatalism, not communism, that Beijing is betting on.

Shorn of all pretense, Xi Jinping’s hope is that China’s southern neighbors will look at a map and give up. Why? Because, as the PRC’s current top diplomat Yang Jiechi famously told his ASEAN counterparts in 2010, “China is a big country and other countries are small countries, and that’s just a fact.” As if big China were saying to its small neighbors: Our common destiny is to experience and accept the disparity between us, for we and you are destined to remain unequal, whether you like it or not. Take the South China Sea. We—the PRC—were always destined to absorb nearly all of that body of water based on Chinese sovereignty “formed over the course of over two thousand years,” to quote Jiechi in 2016.

The South China Sea is not lebensraum. It is not viewed in Beijing the way Berlin saw Poland in August 1939. Nevertheless, Xi’s China continues to manufacture destiny with Chinese characteristics in the heartwater of Southeast Asia by creating maritime facts on the water that Southeast Asians cannot reverse. These include China’s forcible possession of land features claimed by ASEAN’s littoral states; its conversion of those features into military bases from which it can threaten the region; and its orchestration of at-sea collisions, near-collisions, encirclements, and swarmings to stop Southeast Asians from fishing or from lifting undersea oil and gas even within their own Exclusive Economic Zones, all in clear violation of the UN Convention on the Law of the Sea. Beijing hopes that someday its control over the South China Sea and the land features it has weaponized there will be “just a fact” that ASEAN’s members will have had to accept, their lack of China’s size and strength having convinced them that they have no choice but to kowtow. Rather than trying to seed the region with despotisms in China’s image, Beijing prefers to encourage Southeast Asian fatalism, and with it the passivity and resignation to subservience that sheer necessity would imply.

Although China’s political template is authoritarian, Xi is not an evangelist for autocracy in Southeast Asia. If, as has been claimed, Xi’s China is “ideologically bankrupt,” it has no surplus in ideas to spend convincing the world to mimic its doctrine. As exportable advice, the formula that Beijing does represent—regime legitimation by economic performance—is more pragmatic than ideological. There are, nevertheless, three ways in which Chinese foreign policy in Southeast Asia affects, and is affected by, the more despotic character of ASEAN’s mainland compared with its maritime member states.

As it seeks to influence its neighbors and the world beyond, Xi’s China may be ideologically promiscuous. But Beijing does love stability. When Adam Prezorskwi described democracy as “institutionalized uncertainty,” he noted its potentially beneficial effect. The unpredictability of electoral outcomes in a democratic system is stabilizing insofar as it motivates a losing candidate not to turn against the system but rather to run again within it. The chance of victory—positive uncertainty—may warrant another try.

But institutionalized uncertainty is anathema to the Communist Party of China. The power and authority of the CPC under a could-be leader for life supplies the institutionalized certainty that a stable dictatorship needs—or thinks it needs—to survive. Rapid economic growth and the systematic forestalling of civil society in China continue at least to postpone recourse to another Tiananmen massacre. In roughly comparable ways, institutionalized repression in Laos, Cambodia, and Vietnam has helped keep those dictatorships stable—so far. Beijing’s faith in the stabilizing power of institutionalized certainty makes dealing with foreign despots a subjectively rational choice. And doing so can at least simplify Chinese diplomacy. Democracies have more actors who need to be taken into account, including critics of China whose barbs are protected speech.

Consider Myanmar. Given Beijing’s economic and strategic stake in using Myanmar as a way station for greater Chinese access to the Indian Ocean, Xi is probably furious that Senior General Min Aung Hlaing has rendered Myanmar unstable and unpredictable. The general’s regime is not innately pro-China. But Beijing likely calculates that a democratic alternative to military rule could jeopardize China’s position even more. In the days immediately following the Tatmadaw’s seizure of power, Beijing did not even acknowledge that a coup had taken place, calling it a mere “cabinet reshuffle” and blocking the UN Security Council from criticizing what had occurred. Inside Myanmar, anti-China protests ensued, with accusations stemming from rumors that China might even have encouraged the coup due to its own despotic character and inclination. The rumors sound unfounded, but the fact that they circulated among democracy-minded opponents of the junta could only reinforce Beijing’s preference for military rule.

Xi’s China craves praise. Chinese “wolf warrior” diplomats in Southeast Asia have not been shy about urging and thus implicitly requiring recipients of Chinese “gifts,” including vaccines for local use against the COVID-19 virus, to publicly thank China for its generosity—preferably in profuse terms. In a democracy that values personal worth more than hierarchical deference and obligatory gratitude, kowtowing may be unpopular. In contrast, under a despot, obligatory upward fawning may be normal and thus more easily performed to please a foreign donor. An authoritarian patron may welcome such expressions of fealty as signs of submission. In addition, China’s often visceral dismissal of foreign criticism, compared with the normality of critique in democratic states, would suggest that Beijing prefers to deal with leaders of governments that enforce gratitude for reasons of material dependence on China, as opposed to those who refuse to self-censor. Looking back and forward toward the future, China’s history as a presumptuous empire and its Xi-led quest for “rejuvenation” to recover former glory, before its “century of humiliation” by the West, are not conducive to comportment as a Westphalian state dealing on a basis of equality with other states.

Third and finally, if authoritarian China is about product with little regard for process, whereas democratic society reverses those priorities, it stands to reason that China’s policymakers may, other things being equal, prefer to partner with autocratic heads of state who can get things done, never mind how.

Pushing Back and Looking Forward

Deterministically structural explanations of China’s influence in Southeast Asia—size, proximity, a magnetic economy—overlook the human factor: the capacity of the region’s people and leaders to question and reject dependence on tectonic conditions that stack the deck in China’s favor. To Beijing’s likely chagrin, that capacity is amply evident in the opinions of elite-level Southeast Asians who follow their countries’ foreign affairs. The ISEAS-Yusof Ishak Institute’s consecutive annual surveys of the views of these individuals have revealed their rising mistrust of China and, conversely, their rising trust of the United States.

Sampled in 2018, these elites mistrusted China and the United States in equal measure. In that year, 52 percent had little to no confidence that China would “do the right thing” in world affairs, while 51 percent said the same thing about the United States. But in 2019 and 2020, that pox on both houses has consistently and markedly evolved in China’s disfavor. By 2020, 63 percent of the Southeast Asian respondents mistrusted China, compared with 31 percent who mistrusted America. If that shift seems odd in light of the destabilizing idiosyncrasies of Donald Trump, it should be noted that the 2020 survey was conducted late in the final year of his presidency and the questions were about what China and the United States could be expected to do in the future. China’s hope for loyal neighbors received a further blow in the answers to a question about whether ASEAN, were it forced to align itself with one of the two big rivals, should side with China or with the United States. Although 39 percent of the respondents opted for China, 62 percent chose the United States.

Opinions are malleable. The popularities of China and the United States will fluctuate in tandem with future events. Although the survey research cited above has portrayed China as untrustworthy, expansionists in Beijing could take comfort in the data on Southeast Asian perceptions of relative power as a matter of fact, trustworthiness aside. Asked in 2020 which country or regional organization (such as ASEAN or the European Union) was the most influential economic power in Southeast Asia, 76 percent said China. Merely 7 percent named America. China won as well, though by a less overwhelming margin, when the same question was asked regarding political and strategic influence. That China is most consequential in those regards garnered 49 percent agreement, compared with 30 percent who thought the United States fitted that description. In effect, the survey inadvertently endorsed China’s cultivation of acquiescent fatalism in Southeast Asia—destiny over opportunity, realpolitik over moralpolitik—to the marginal advantage of Beijing.

In the months and years to come, major outside actors—the United States, Japan, and India among others—could work with autonomy-seeking Southeast Asian states to slow the Chinese juggernaut in Southeast Asia.

China is not significantly or consistently more or less popular in mainland Southeast Asia than it is in the maritime part of the region. Mistrust of China, for example, is highest in mainland Vietnam and in the maritime Philippines, albeit for different reasons. The Vietnamese remember their history of resistance to domination by China and resent its current bullying in the South China Sea. The latter behavior also angers Filipinos, whose own post-colonial history has tended, with exceptions, to involve accommodation with the United States. But the existence of a structural straitjacket that a Sinocentric understanding of “common destiny” would imply is more evident in the countries located closer to China that are accordingly less able to ignore their huge, overbearing, and censorial neighbor.

China is not willfully spreading autocracy in Southeast Asia. China’s relations with its neighbors are motivated by interest not ideology. With the stark exception of Vietnam, however, one can envision an authoritarian symbiosis of sorts developing between despotic China and potential satellite despotisms along its southern land border. Myanmar could become a test case in this context. If the junta crushes the opposition, if ASEAN does little more than slap the wrist of its murderous member, and if Western outrage drives the Tatmadaw into China’s arms, the growth of a Chinese sphere of influence based on authoritarian connivance could someday even split ASEAN roughly into its northwestern-subcontinental and southeastern-archipelagic parts.

Nevertheless, at least for now, the bravery of the martyred Ma Kyal Sin and her co-protestors in Myanmar, and of their counterparts in Thailand protesting against their own military regime, evokes, at least for now, a less despotic and subordinated future for Southeast Asia. Authoritarian instability is not an oxymoron. China’s own domestic stability and prosperity are not guaranteed. Its soft power deficit is real, and its overreaching under Xi Jinping could continue to vindicate Southeast Asian distrust. In the months and years to come, major outside actors—the United States, Japan, and India among others—could work with autonomy-seeking Southeast Asian states to slow the Chinese juggernaut in Southeast Asia.

A fresh wave of democratization in Southeast Asia is not on the horizon. But the destiny of even the already undemocratic mainland portion of Southeast Asia is not—not yet at least—made in Beijing.

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Chinese foreign policy in Southeast Asia affects, and is affected by, the more despotic character of ASEAN’s mainland compared with its maritime member states. But the destiny of even the already undemocratic mainland portion of Southeast Asia is not—not yet at least—made in Beijing.

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The six Asian countries examined in the new book Shifting Gears in Innovation Policy — China, India, Japan, Singapore, South Korea, and Taiwan — have achieved high economic growth in many industrial sectors, but the catch-up phase of their growth is over or ending. These countries can no longer rely on importing or imitating new technologies from abroad. Rather, they must develop their own innovations to maintain growth. The traditional industrial policy tools they often used to advance “innovation” by selecting promising industries and diverting resources to them are no longer effective. Indeed, governments in Asia have recently put forward new policies, such as China’s push for mass entrepreneurship and innovation. It is at this juncture that the authors of Shifting Gears reassess Asia’s innovation and focus on national strategies and regional cluster policies that can promote indigenous entrepreneurship and innovation in the larger Asia-Pacific. In this virtual book launch, contributing chapter authors join Yong Suk Lee to discuss their findings.

SPEAKERS

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Edison Tse
Edison Tse is an Associate Professor in the Department of Management Science & Engineering at Stanford University. He is also the Director of Asia Center of Management Science and Engineering, which has the charter of conducting research on the growth of emerging economy in Asia, with a special focus in China, Korea and India. In 1973, he received the prestigious Donald Eckman Award from the American Automatic Control Council in recognition of his outstanding contribution in the field of Automatic Control. In 2003, he received the Golden Nugget Award from General Motors R & D and Planning. In 2008, he received the Dean’s Award for Industry Education Innovation from School of Engineering, Stanford University. He had served as an Associate Editor of the IEEE Transactions of Automatic Control, and a co-editor of the Journal of Economic Dynamics and Control, which he co-founded. Since 2003, he dedicated his research effort in dynamic entrepreneurial strategy and transformation of Chinese production economy to innovation economy. He wrote a book in Chinese entitled “源创新”on this theory and published in China in 2012. A second edition of this book, with new chapters incorporating some experiences of practicing the theory in China, was published in 2016 by China CITIC Press with a new title “重新定义创新(Redefine Innovation)”. He is now working on the extension of this theory to developing countries. His main thesis is that innovation is cultural dependent. Successful innovation in a developing country must be synergistic to its culture, its political, social and economic environment. Professor Edison Tse received his BS, MS, and Ph.D. in Electrical Engineering from Massachusetts Institute of Technology. 

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Dinsha Mistree
Dinsha Mistree is a Lecturer and Research Fellow in the Rule of Law Program at Stanford Law School. In his research, he examines how formal legal systems sometimes can sometimes stimulate economic development, while at other times these same systems can hold back development. His work considers incentives for innovation and entrepreneurship, meritocracy in public administration and education, and drivers of economic development more broadly. Much of Dr. Mistree’s research focuses on India and other South Asian countries. His work has appeared or is forthcoming at Social Science and MedicineStanford Law Review, and Cambridge University Press. Dr. Mistree holds a PhD and an MA in Politics from Princeton University and an SM in Political Science from MIT.

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Michelle Hsieh
Michelle F. Hsieh is an Associate Research Fellow in the Institute of Sociology, Academia Sinica, Taipei, Taiwan. She received her PhD (in Sociology) from McGill University, Montreal, Canada, and was a Shorenstein Postdoctoral Fellow at the Shorenstein Asia-Pacific Research Center at Stanford University. Her research interests include economic sociology, sociology of development, comparative political economy, and East Asian societies. Her ongoing research explores the variations and consequences of industrial upgrading among the East Asian latecomers. She has done empirical analysis of the different configurations of the state-society linkages for innovation through comparative industry studies on Taiwan and South Korea. Her investigations focus on how technology learning and adaptation take place in a decentralized system of SME network production and the institutional arrangements that can facilitate or hinder coordination and collaboration. Other research interests are the origins of the East Asian developmental state and the connection between technological development and Cold War geopolitics in the latter half of the twentieth century. 

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WoonJoon Kim
Wonjoon Kim is the Head of the Graduate School of Innovation and Entrepreneurship, a Professor at the School of Business and Technology Management, KAIST. He is also the Director of KAIST Center for Innovation Strategy and Policy. He has been conducting and publishing numerous researches on the strategic management of innovation of firms, industry, and governments centering on emerging innovation paradigms. His current research interest also covers the changing nature of innovation, including AI and industrial and social change, the convergence of technology as well as the changing nature of the process of entrepreneurship. Currently, he is the President of Asia Innovation and Entrepreneurship Association (AIEA), Organizing Committee Chair for the AIEA-NBER Conference and a Vice President of the Korean Society for Innovation Management and Economics. He is also serving as the Editor of the Journal of Technology Innovation, and an Editorial Board Member for several journals on innovation such as Technovation, Innovation Studies. Before he joined KAIST, he has been an Adjunct-Assistant Professor at the Department of Economics, NYU as and a Research Fellow at the Yale School of Management. He holds a Ph.D. in Economics of Innovation including Science and Technology Policy from Seoul National University. 

MODERATOR 

Yong Suk Lee, SK Center Fellow at the Freeman Spogli Institute for International Studies and Deputy Director of the Korea Program at the Walter H. Shorenstein Asia-Pacific Research Center at Stanford University. 

This event is being held virtually via Zoom. Please register for the webinar via the following link: https://bit.ly/3axXNab

Edison Tse <br><i>Associate Professor in the Department of Management Science & Engineering at Stanford University</i><br><br>
Dinsha Mistree <br><i>Research Fellow and Lecturer at the Program in the Rule of Law at Stanford Law School</i><br><br>
Michelle Hsieh <br><i>Associate Research Fellow in the Institute of Sociology, Academia Sinica, Taipei, Taiwan</i><br><br>
Wonjoon Kim <br><i>Head of the Graduate School of Innovation and Entrepreneurship and Professor at the School of Business and Technology Management at KAIST</i><br><br>
Panel Discussions
Authors
Noa Ronkin
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The death toll in Myanmar is rising as members of the armed forces crack down on the civil resistance movement sparked by the February 1 military coup. The use of indiscriminate force is a familiar tactic for Myanmar’s military. The same regiments that now attack civilians with live fire also mounted a brutal campaign against the Rohingya.

As former U.S. Ambassador to Myanmar, Scot Marciel led a 500-person Country Team during the difficult Rohingya crisis and a challenging time for both Myanmar’s democratic transition and the U.S.-Myanmar relationship. The current conflict, however, could lead to a civil war with far-reaching consequences for geopolitics in Asia. “I think that there is a big difference in the present situation,” says Amb. Marciel, speaking at a recent virtual conversation hosted by APARC’s Southeast Asia Program. “The Myanmar military is not a group that you can easily have a useful, productive dialogue with. My argument that we should try to continue to engage as much as possible is a general argument, but I am not sure it applies in this particular case.”

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Few American diplomats can match the years of experience in multiple Southeast Asian countries that Marciel has accumulated during his career in the U.S. Foreign Service. In addition to his assignments as U.S. Ambassador to Myanmar and Indonesia, Mr. Marciel was the first U.S. Ambassador for ASEAN Affairs and Deputy Assistant Secretary of State for Southeast Asia and served at U.S. missions in the Philippines, Vietnam, Hong Kong, Brazil, and Turkey, among other roles.

He draws from that experience in the book he is writing at Stanford during his residency as a visiting scholar and visiting practitioner fellow on Southeast Asia at APARC. Titled "Imperfect Partners: The United States and Southeast Asia," the book interprets the region and its relations with the United States historically and at present.
Portrait of Scot Marciel
Ambassador Scot Marciel

Marciel addressed various policy questions from the manuscript, including what priority ends and means should inform U.S. engagement with Southeast Asia, how the Myanmar crisis is challenging U.S. foreign policy, what drives the prosperous U.S.-Vietnam relationship, and what the prospects are for America’s relations with Thailand and Indonesia.

In exploring these and other questions, Marciel was joined by a second distinguished speaker, Catharin Dalpino, professor emeritus at Georgetown University’s Edmund A. Walsh School of Foreign Service, whose expertise on Southeast Asia spans academe, government, and NGOs. She is the co-editor and co-writer of a recent Asia Foundation report, “Urgent Issues in U.S.-Southeast Asian Relations for 2021.”

A Southeast Asia Pivot

It has been challenging for U.S. policymakers to understand Southeast Asia, Marciel notes, because its nations are immensely diverse and, with the likely exception of Vietnam and Singapore, they do not work Washington particularly well. Adding the absence of a dominant institution in the region with which Washington can easily engage, these factors help explain the tendency of U.S. policymakers to see Southeast Asia somewhat as a sideshow, despite the region’s growing importance.

The U.S. partnership or rather series of partnerships with Southeast Asia have underperformed and disappointed to some extent [...] The question going forward, given the growing importance of the region and the rise of China, is what can be done to improve that partnership.
Ambassador Scot Marciel

Granted, at various times the United States was heavily engaged and invested in Vietnam, Cambodia, Thailand, and the Philippines. But with the end of the Vietnam War and certainly with the end of the Cold War, Marciel argues, the United States lost the prism through which it previously looked at the region. In the lack of a strategic regional focus, there has been a tendency in Washington to calibrate the relationships with particular Southeast Asian nations based on its assessment of their progress on issues such as human rights, democracy, or trade, but the overall engagement with the region as a whole has been neglected.

“The U.S. partnership or rather series of partnerships with Southeast Asia have underperformed and disappointed to some extent, and hence the question going forward, given the growing importance of the region and given the rise of China, is what can be done to improve that partnership with the region in the coming years,” Marciel says.

A Balancing Act in the Era of Great-Power Competition

Dalpino, in response, emphasizes that engagement is not a silver bullet, as is the case with Myanmar. “Engagement will get us perhaps a more sympathetic hearing but it will not necessarily deliver to us the interests that we are seeking, and I think that we need to be clear with ourselves and with our Southeast Asian interlocutors about how those interests can diverge.”

The best way to advance our interests, and the interests of most of the Southeast Asian nations, is to give them as much freedom of maneuver as possible vis-a-vis china.
Amb. Scot Marciel

Another paradigm shaping Washington’s perception of Southeast Asia is the U.S.-China rivalry. We must not force Southeast Asian countries to choose between the United States and China, “but if we want to sell Southeast Asia to the power structure in Washington as being more important, then we're going to have to play the China card to some extent,” Dalpino notes.

“The key for us is to bring our game to Southeast Asia policy,” argues Marciel, by which he means to build confidence in the region by engaging with it as a consistent, reliable partner with shared interests. In his view, the best way to advance these shared interests is to give Southeast Asian nations as much freedom of maneuver as possible vis-a-vis China.

“Rather than going there and talking to them about why China is a problem and why they should be tougher on China,” Marciel claims, “it is more useful to build a strong partnership with the different countries in Southeast Asia and with the Association of Southeast Asian Nations (ASEAN), which, by itself, is not an anti-China policy at all.” It is a delicate balance between not making the U.S.-Southeast Asia relationship all about China, on the one hand, while being aware of China and the impact of U.S. policy on the relationship between Southeast Asia and China, on the other hand.

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The book Ambassador Marciel is writing at Stanford examines policy issues from the implications of the Myanmar crisis to the future of America’s relations with other Southeast Asian nations and the prospects for a U.S. strategic regional focus.

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