The world first became concerned about North Korea's nuclear development program in 1989 through satellite photos of a facility under construction near the town of Yongbyon. Since then, there have been on-again, off-again negotiations with North Korea by the United States, the Republic of Korea (ROK), and other countries in the region to halt and dismantle North Korea's nuclear weapons program.

A consistent strategy focused on dialogue and diplomacy is essential to get out of the current quagmire, urged Song Min-soon, a member of the Korean National Assembly and a former Minister of Foreign Affairs and Trade, at a Korean Studies Program public seminar on October 18. Although the United States and the ROK must lead efforts, China's active involvement is also crucial. Resolving the nuclear issue is necessary to help ensure the long-term peace and prosperity of not only the Korean Peninsula but also the entire East Asia region.

Song explored reasons why previous negotiation attempts failed, especially the lack of a shared vision among the concerned countries for the future of the peninsula and region. He suggested that this rendered China less willing to play a stronger role in the negotiations. The imbalance of power among the negotiating countries is another significant factor. North Korea's only effective bargaining card is its nuclear weapons program, argued Song, while countries like the United States have the capability to offer or withhold important aid, such as energy and development assistance.

Song advocated a firm, direct approach, stating that the United States has not adopted a real strategy for effecting nuclear disarmament. Instead, it has opted for the "slogan" of "strategic patience." He cautioned against taking a hard line, such as the current ROK administration is pursuing. Song expressed the hope that the United States would focus more on developing a well-planned diplomatic strategy for resolving the nuclear issue and that the ROK would adopt a more conciliatory approach toward North Korea.

To move forward in the Six-Party Talks-negotiations among the United States, the ROK, North Korea, China, the Russian Federation, and Japan-and effectively resolve the North Korea nuclear issue, Song made several recommendations. He pointed to the long-term benefit of building trust incrementally by fulfilling small, strategic commitments to North Korea. To balance the asymmetry of negotiating cards, Song suggested that the other countries proceed with fulfilling their commitments and allow North Korea more time to fulfill its own obligations. Bringing China fully on board by building a logical basis for its involvement is also a crucial element of the negotiations, he offered. Finally, Song asserted that the United States, the ROK, and China must develop a shared, solid vision for peaceful coexistence on the peninsula, taking into account different scenarios and the roles each country should play.

Song expressed confidence that the approach he outlined would not only eventually resolve the nuclear issue but would also open the way for stability and prosperity for everyone in East Asia, including North Korea.

As reported by the Wall Street Journal's Loretta Chao, one of the speakers on the e-commerce panel at "China 2.0: The Rise of a Digital Superpower," Deutsche Bank analyst Alan Hellawell gave his firm's predictions on how e-commerice in China is going to shape up. By 2013, according to Hellawell, the percentage of online transactions in the retail space will go up to 7.2%, higher than the percentage of U.S. online retail commerce. Furthermore, Hellawell noted that companies wanting a piece of this business will have to meet high service standards that Chinese consumers have grown accustomed to in a short time.

Youku CEO Victor Koo, in a "China 2.0" keynote, spoke on his company's place among Internet video services competing in China, China's increasing competitive prowess and how the rapid sharing of information is changing the development of business models in China.

Occupying the greater part of the United States Pacific coastline, California has long shared a relationship with Asia. Today, trade with China, Japan, and Korea accounts for nearly one-fourth of the state's overall $120 billion in exported goods, and an estimated one in seven California jobs is related to trade. In recognition of the crucial importance of this trade for the state's economic vitality, Governor Arnold Schwarzenegger and 100 business and government leaders embarked on September 9, 2010 for a six-day trade mission to Asia.

Forty representatives from the Bay Area, 40 from southern California, and 20 top government officials traveled with the mission, including leaders from California's agriculture, green technology (green tech), finance, and healthcare industries. Although intended to benefit the State of California, the trade mission also sought to leverage complimentary resources that would help nurture China's ever-growing innovation economy and to facilitate the continued exchange of people, technology, and capital. Marguerite Gong Hancock, associate director of the Stanford Program on Regions of Innovation and Entrepreneurship (SPRIE), represented Stanford University and SPRIE on the delegation's visits to the cities of Shanghai and Hangzhou in China. This was the second and final Asia trade mission led by Governor Schwarzenegger during his tenure.

While in Shanghai and Hanghzou, Hancock engaged with policymakers, university officials, and private-sector business leaders. She took part in visits to several major companies, including the Hangzhou headquarters of Alibaba, China's e-commerce giant, during its "Alibaba Fest," an annual innovation conference. While there, Hancock and fellow mission members met with the company's president and learned about recent goods and services innovations, and about its global expansion strategies. In Shanghai, she visited the home of Zap-Jonway, the recently merged California electric vehicle manufacturer Zap and Shanghai electric motorcycle company Jonway. Zap-Jonway's CEO Steve Schneider plans for the company to develop electric vehicles for commercial fleets, such as taxicabs and trucks. "It is a really interesting example of California and Shanghai coming together, bringing technologies from both sides and then positioning themselves for market growth both in China and here in the United States," says Hancock.

SPRIE is at the forefront of research about factors that nurture innovation and entrepreneurship, and has engaged in the last two years in significant research about green tech. Hancock was frequently asked about how to build policies and industry strategies that foster the economic growth of green tech and about the possible implications for China, both in terms of collaboration and competition, in the shift in Silicon Valley's economy toward green tech.

During the Asia trade mission, Governor Schwarzenegger also made several important public announcements, including the news that California is going to formally bid to hold the 2020 World Expo at Moffett Field in Mountain View, which would be a major opportunity to showcase the best of the region's innovation and entrepreneurship to the world.

For more details about Governor Schwarzenegger's Asia trade mission, please visit the State of California's website.

 

The North Korean leader Kim Jong-il and his youngest son and presumed successor, Kim Jong-un, jointly attended military maneuvers on an unspecified date. This was the first official outing of the 27-year-old youngest son of the "Dear Leader." These maneuvers were held just before the Sunday celebration of the 65th anniversary of the founding of the Workers Party of Korea. David Straub, associate director of the Korean Studies Program at Stanford University, discussed the informal transfer of power that took place last week.

What was learned last week about the succession to Kim Jong-il in North Korea?

The maneuvers confirmed with near certainty the past few years of speculation that the third son of Kim Jong-il has been informally designated as his successor. This process is now public. This is the first time that the name of Kim Jong-un has been published in North Korea. However, as long as his father is alive and can govern, he will remain in power. But, clearly, his health is not good. This official outing of the son seems in preparation for the possibility that Kim Jong-il may die suddenly. Kim Jong-il suffered a stroke in 2008, after which he disappeared for several months. Upon his return, he had lost weight and appeared stiff and impaired on his left side.

Was Kim Jong-un touted as the successor?

There were no signs until a few years ago. First, it was Kim Jong-nam, the eldest son, who was favored. Officially, he fell out of the race when he was caught entering Japan with a forged passport. At the time, he told Japanese officials he wanted to take his son to Tokyo Disneyland [the target of an attempted contract killing by Kim Jong-un in 2008, the eldest now lives happily in Macao, ed.]. It is then the second son, Kim Jong-chol, who was poised to be the successor. But in Pyongyang, it was thought that he was not sufficiently ambitious and aggressive. Then, all eyes turned to Kim Jong-un, who has the personality of his father: ambitious, aggressive, and ruthless.

The main question then was how Kim Jong-un would be promoted. Most observers were betting on a gradual process. In this sense, it is not really surprising. He was appointed as a four-star general, which is a mostly symbolic distinction. He was also made vice-president of the Central Military Party. This underscores how strong the military is in North Korea. What surprised me most is that the younger sister of Kim Jong-il was also appointed as a four-star general. In line with the predictions of observers, Kim Jong-il has mobilized his immediate family to create a sort of regency capable of supporting his son in the event of his sudden death.

What is known about Kim Jong-un?

He was probably born in 1983 or 1984. However, the regime may try to say he was born in 1982. In Chinese culture-and also in North Korea-numbers are significant. Kim Il-sung, his grandfather, was born in 1912. Kim Jong-il was born in 1942. That would put Kim Jong-un in a kind of celestial lineage. It is almost certain that he attended school in Switzerland, where he was a quiet student. He had a false name, Pak-un, and one or two close friends. He also liked basketball. He then returned to Pyongyang. Some unconfirmed reports say he studied at a military university. A few years ago, it was said he had been appointed to the office of the Workers Party and the office of National Defense Committee, which is the highest organ of power in North Korea.

Who now heads North Korea? What is the power structure like?

The general view is that Kim Jong-il is the supreme leader-an absolute dictator-and he has tremendous latitude. He bases his legitimacy on the fact that he is the son of the founder of the regime. But nobody can run a country alone. He must therefore take into account various factors. In North Korea in recent decades, the military has played a growing role and seems to occupy a dominant place today.

A university professor based in South Korea believes that the regime in Pyongyang has greatly copied Japanese pre-war fascism, even though Korea fought against imperialism. The scheme is based on a totalitarian structure, relying in particular upon the military. Information is very strictly controlled and the population is monitored, as in East Germany. The structure remains very closed, and the leadership is afraid to open up to the outside world and receive investment or foreign aid. Finally, family occupies an important place. North Korea is part of China's cultural sphere, with a strong presence of Confucianism. The notion of the state is close to the family structure model. The king is seen as the head of the family.

Does a period of transition put the regime in danger? What took place before?

It is inevitable that one day a regime that is so rigid and incapable of transformation will suffer major changes. However, we cannot say when or what form this will take. But it is clear that unusual things can happen during a period of change like this. The last transition was very similar to the current process. The difference is that Kim Jong-il had been clearly designated as the successor by his father and he had decades to gradually gain experience and consolidate his power within the system. Kim Jong-il managed most affairs of state since 1980, when the last Workers Party meeting was held. He was the de facto leader for 14 years. When his father died in 1994, however, he took three years to formally become established as the leader. The difference today is that Kim Jong-il suffered a stroke in 2008. Some people in North Korea are afraid that his son had not had enough time to prepare for power. Kim Jong-un must particularly ensure that the military is loyal to him. That is why he was made a general.

What legacy does he leave his son Kim Jong-un?

Although North Korea has said for decades that it follows the principles of juche or self-sufficiency, it largely sustained itself during the Cold War by trade with the USSR and its satellite states, and China. It received much help. Now that the USSR has collapsed and China has turned to a market economy, the economic situation in North Korea has become untenable. The country suffered a terrible famine in the mid-1990s. Nobody knows for sure how many people died, but it was certainly several hundred thousand. Some say that there were more than one million deaths, out of a total population of 22-23 million people. The government then had to loosen its grip on the system. This has helped the country recover. Today, access to basic resources is much better in North Korea than it was fifteen years ago.

The country was also helped by foreign aid from Japan, South Korea, the United States, and China. Now, because of the crisis over its nuclear program, the only foreign aid that comes into Pyongyang is from China. The North Korean regime faces a dilemma: its only resource is its workers. It fears opening up to accept foreign capital and technology, which would expose the people to outside reports that fundamentally contradict the regime's decades-old claims. That is why the few commercial contacts are with ideologically similar countries, like Syria or Iran. As for the industrial project in Kaesong near the border between North and South, it is very closely monitored by the authorities.

What is the situation at the diplomatic level?

North Korea has no close allies in the world. It cooperates with Cuba, Syria, or Iran, but these countries are isolated. Their relationship is either rhetorical or in connection with the nuclear program. As for its neighbors, North Korea does not like them. The South is seen as an existential threat; it is another Korean state, comprising two-thirds of the Korean nation, and has been a phenomenal success. The situation is different with China. Officially, both countries are driven by an eternal friendship, but this is based primarily on strategic considerations. Nevertheless, China provides a lifeline to North Korea.

Finally, I think in the last two decades, Pyongyang has toyed with the idea of a strategic alliance with the United States to counterbalance Chinese influence. But for domestic political reasons and because of the situation of human rights in North Korea, the Americans have never pushed this idea further. The North Koreans have realized that this strategic relationship was probably a dream.

The fundamental problem behind all of this is due to an accident of history. After the liberation of the peninsula from Japanese occupation in 1945, the division between the Soviets and Americans-for practical reasons-was not intended to be permanent. Today, there are two states, each of which thinks that it best represents the Korean nation and that  it should be in charge of the affairs of the peninsula in its entirety. It is a zero-sum game. All issues about the current succession flow from this.