Foreign Policy
Authors
Heather Rahimi
News Type
News
Date
Paragraphs

On February 26, 2025 the Stanford Center on China’s Economy and Institutions hosted a discussion on the role of industrial policy in U.S.-China competition, featuring insights from Skyline Scholars Loren Brandt from the University of Toronto and Xiaonian Xu from the China Europe International Business School, as well as Senior Fellow Mary Lovely from the Peterson Institute for International Economics. The panelists examined the historical context, current trends, and future implications of China’s economic strategy and its impact on global trade.

Before moving to a question and answer session moderated by SCCEI Co-Director Scott Rozelle, each panelist shared their insights on the topic through short-form presentations.



China’s Growth: From Industrialization to Innovation
Panelists highlighted the transformation of China’s economy, characterizing its past expansion as a result of rapid industrialization rather than a so-called "economic miracle." They described China’s growth in two stages: an initial phase driven by market expansion and a later phase, emerging after 2008, where state-led stimulus measures played a dominant role.

It was noted that China’s post-industrialization period has led to economic stagnation, as capital accumulation peaked in 2005, leaving excess capacity in key sectors. With investment-driven growth slowing, experts emphasized the need for a shift toward innovation. However, this transition requires structural changes, including stronger rule of law, well-functioning markets, and better incentives for entrepreneurship. While China excels in commercialization, it still lags behind other leading economies in basic and applied research, critical components for sustained innovation.

While China excels in commercialization, it still lags behind other leading economies in basic and applied research, critical components for sustained innovation.

China’s Industrial Dominance: Successes and Costs
The discussion also analyzed China’s dominance in industries such as lithium batteries, electric vehicles, solar panels, and shipbuilding. The country’s success in these sectors was attributed to industrial policies that strategically direct state resources into key industries. However, these policies come with economic inefficiencies, including excessive production capacity and stagnating productivity growth.

While China’s industrial policies aim to reduce reliance on foreign technology and foster indigenous innovation, they have also led to concerns about global trade imbalances. For instance, China’s trade surplus in manufactured goods now significantly surpasses that of historical export champions Germany and Japan, disrupting global markets. Despite substantial investments in research and development, overall productivity growth has slowed, raising questions about the long-term viability of its industrial policies.

Despite substantial investments in research and development, overall productivity growth has slowed, raising questions about the long-term viability of its industrial policies.

Trade Tensions and U.S. Policy Responses
The panelists also explored how China’s development model has triggered trade tensions with the U.S. and other nations. They noted that industrial subsidies, state ownership, forced technology transfers, and non-tariff barriers have led to accusations of unfair trade practices. In response, the U.S. has imposed tariffs, blocked WTO dispute resolution mechanisms, and debated revisions to trade agreements, including the Phase 1 trade deal.

Some participants suggested that while U.S.-China relations remain contentious, future shifts in U.S. foreign policy—such as improved U.S.-Russia ties under the new Trump administration—could influence the direction of trade negotiations with China. However, national security concerns and economic competition in emerging sectors like AI and clean energy will likely keep tensions high.

Looking Ahead
The discussion collectively emphasized that China’s economy will face significant challenges if it doesn’t move from an investment-driven approach to one centered on innovation. While China continues to exert influence in key industries, questions remain about its ability to sustain long-term growth without addressing underlying inefficiencies. Meanwhile, U.S. trade policies will play a crucial role in shaping the future of global economic competition.

The event underscored the complexity of U.S.-China economic relations, with industrial policy at the heart of the debate. As both countries navigate these challenges, the global economy will continue to feel the ripple effects of their evolving competition.

Read More

Political Economy and Governance Research Program banner blending China's forbidden city with Shanghai's skyline.
News

SCCEI Launches New Research Program on China’s Political Economy and Governance

SCCEI's newest research program seeks to advance empirical, multidisciplinary insights into China’s political economy, including how political institutions, the political environment, and the economic system influence each other and shape the allocation of resources, production, and distribution of wealth in society.
SCCEI Launches New Research Program on China’s Political Economy and Governance
Shipping containers at a loading dock
News

Decoding China’s Economic Slowdown: A Roundtable Discussion

The Stanford Center on China’s Economy and Institutions and Asia Society Policy Institute’s Center for China Analysis co-organized a closed-door roundtable on China's recent economic slowdown and produced summary report of the discussion.
Decoding China’s Economic Slowdown: A Roundtable Discussion
Craig Allen speaks at SCCEI 2024 conference
News

Silicon Showdown: Craig Allen Unpacks the Competition for Technology Leadership between the U.S. and China

Craig Allen, the President of the U.S.-China Business Council, spoke on the evolving dynamics of technological leadership between the U.S. and China and their implications for the rest of the world.
Silicon Showdown: Craig Allen Unpacks the Competition for Technology Leadership between the U.S. and China
All News button
1
Subtitle

During this SCCEI event, expert panelists Xiaonian Xu, Loren Brandt, and Mary Lovely shared insights on the historical context, current trends, and future implications of China’s economic strategy and its impact on global trade.

Date Label
Authors
Nora Sulots
News Type
Commentary
Date
Paragraphs

In a new video series, CDDRL scholars Francis Fukuyama, the Olivier Nomellini Senior Fellow at the Freeman Spogli Institute for International Studies (FSI) and director of the Ford Dorsey Master's in International Policy, and Larry Diamond, FSI's Mosbacher Senior Fellow in Global Democracy, examine how democracy-promotion programs are being systematically weakened under the new administration. Building on Diamond's recent essay, The Crisis of Democracy Is Here, the discussions highlight growing threats to global democratic institutions and U.S. leadership in defending them.

In the first video, Fukuyama and Diamond discuss how the new United States presidential administration’s actions go beyond policy differences to threaten democratic institutions and the rule of law. They highlight concerns over Elon Musk’s involvement in government operations, potential violations of legal procedures, and efforts to undermine checks and balances. Diamond warns that moves like firing inspectors general and withholding congressionally approved funds signal an authoritarian shift rather than legitimate governance. The conversation urges vigilance in distinguishing policy changes from power grabs that erode democracy.

The second installment discusses the administration’s efforts to cut off funding to democracy-promoting organizations like the National Endowment for Democracy (NED) and USAID, despite congressional approval, which violates the law and undermines democracy. Fukuyama and Diamond highlight how, historically, authoritarian regimes erode the rule of law while claiming democratic legitimacy. They warn that the U.S. is heading toward a constitutional crisis, as Trump's disregard for judicial authority could set a dangerous precedent. Finally, they urge vigilance and legal challenges to uphold liberal democratic principles and institutional checks and balances.

In January, Fukuyama and Diamond also shared their annual review of democracy around the world. Part I focuses on global democracy after the “year of elections,” while Part II examines the state of democracy in the U.S. Both videos can be viewed below.

Read More

[Left to right]: Michael McFaul, Marshall Burke, Steven Pifer, Oriana Skylar Mastro, Didi Kuo, and Amichai Magen on stage.
Commentary

Five Things FSI Scholars Want You to Know About the Threats Our World Is Facing

At a panel during Stanford's 2024 Reunion weekend, scholars from the Freeman Spogli Institute for International Studies shared what their research says about climate change, global democracy, Russia and Ukraine, China, and the Middle East.
Five Things FSI Scholars Want You to Know About the Threats Our World Is Facing
Mike Tomz, Brandice Canes-Wrone, Justin Grimmer, Larry Diamond answer questions in the second "America Votes 2024" panel.
News

America Votes 2024, Part 2: Limits of Forecasting, Declining Trust, and Combating Polarization

Moderated by Michael Tomz, the William Bennett Munro Professor in Political Science and Chair of Stanford’s Department of Political Science, the second panel in our series featured Stanford scholars Brandice Canes-Wrone, Justin Grimmer, and Larry Diamond, each drawing on their research to address the complexities shaping the 2024 election.
America Votes 2024, Part 2: Limits of Forecasting, Declining Trust, and Combating Polarization
A red pedestrian traffic light in front of the US Capitol Building in Washington, D.C.
News

Stanford Scholar Issues Call to Action to Protect and Reform the U.S. Civil Service

A new working group led by Francis Fukuyama seeks to protect and reform the U.S. civil service by promoting nonpartisan, effective, and adaptable workforce practices while opposing politicization efforts like "Schedule F."
Stanford Scholar Issues Call to Action to Protect and Reform the U.S. Civil Service
Hero Image
All News button
1
Subtitle

In a new video series, Francis Fukuyama and Larry Diamond discuss how democracy-promoting programs are being eroded under the new administration.

Date Label
Authors
Clifton B. Parker
News Type
News
Date
Paragraphs

Nearly every day for the last three years, Russian missiles, drones, and artillery fire have struck Ukraine, killing thousands of people and damaging power plants, schools, hospitals, and homes in what has become the largest conflict in Europe since World War II.

“You live in constant fear for your loved ones,” said Oleksandra Matviichuk, founder of the Center for Civil Liberties and a participant in a February 24 virtual panel discussion with Ukrainian leaders in Kyiv on the war’s impact on daily life, the global democratic order, and Ukraine’s path ahead. The Center on Democracy, Development and the Rule of Law hosted the event on the third anniversary of Russia’s invasion of Ukraine in 2022.

“It's very difficult to be in a large-scale war for three years. You live in total uncertainty,” Matviichuk said.
 


It's very difficult to be in a large-scale war for three years. You live in total uncertainty.
Oleksandra Matviichuk
Founder, Center for Civil Liberties


Kathryn Stoner, the Mosbacher Director of the Center on Democracy, Development and the Rule of Law (CDDRL), introduced the panelists, and Michael McFaul, director of the Freeman Spogli Institute for International Studies (FSI) and a former U.S. ambassador to Russia, moderated the discussion.

On the frontlines, outnumbered Ukrainian troops have waged a stiff resistance, while a mass influx of Russian troops, with enormous loss of life, have made incremental but not decisive progress. Hundreds of thousands have died or been injured on both sides. Talks to end the war are underway between the Trump Administration and Russia, with Ukraine and European nations not currently invited to participate.

Oleksandra Matviichuk (L), founder of the Center for Civil Liberties, speaks about her experiences in Ukraine over the last three years. Oleksandra Matviichuk (L) spoke about her experiences in Ukraine over the last three years. Rod Searcey

‘We will cease to exist’


Matviichuk, who was a visiting scholar from 2017-2018 with the Ukrainian Emerging Leaders Program at CDDRL, noted the conflict has actually been going on for 11 years, since 2014 when Russia invaded and occupied Crimea. Today, she said, there is no safe place in Ukraine where people can hide from Russian rockets. “Just two days ago, Russia sent 263 drones against Kyiv and other peaceful cities in Ukraine.”

Matviichuk described how Russia seeks to ban the Ukrainian language and culture, and how they take Ukrainian children to Russia to put them in Russian education camps. “They told them they are not Ukrainian children, but they are Russian children.”

If the West does not provide Ukraine with security guarantees in a peace plan, then “it means that we will cease to exist. There will be no more of our people,” Matviichuk said.

Oleksandra Ustinova, a member of the Verkhovna Rada, Ukraine's Parliament, said, “If we talk about life in Ukraine now, it's complicated, especially during the last week after the Munich Security Conference,” where Vice President JD Vance delivered a speech that focused on internal politics in Europe.

“People do not understand how we thought the United States was our biggest partner,” she said.
 


People do not understand how we thought the United States was our biggest partner.
Oleksandra Ustinova
Member of the Verkhovna Rada, Ukraine's Parliament


At one point, Ustinova noted that she could not hear the conversation in her headphones because sirens were blaring as Russia had just launched an aerial attack on Kyiv.

She said that Russian President Putin and others who seek a Ukrainian election are trying to set a trap because Ukrainian law does not allow an election during martial law, which Ukraine has declared because of the Russian invasion. Plus, it would involve the demobilization of more than 400,000 troops.

“It would be very easy to fake elections, and that’s what the Russians would do,” Ustinova said. “It’s a trap. They're going to find where to put the money into their own candidate.”

Ustinova, who was also a visiting scholar with the Ukrainian Emerging Leaders Program from 2018-2019, said, “We can see that this is a new reality, not only in the Ukrainian war, but in foreign relations, and hopefully the Europeans can unite. Because if they don't, it will be a disaster for everyone.”

Oleksandra Ustinova joined the CDDRL-sponsored event virtually via Zoom. Oleksandra Ustinova joined the CDDRL-sponsored event virtually via Zoom. Rod Searcey

Oleksiy Honcharuk, a former Ukrainian prime minister from 2019-2020 who was the Bernard and Susan Liautaud Visiting Fellow at FSI in 2021, said, “I think that we are still strong. My prediction is that in three or six months, Ukraine can double the damage to Russia on the battlefield from a technological perspective with drones.”

But time is very expensive now, he added, because every single day, every single hour, Ukrainians are paying with the lives of their best people and soldiers.

Honcharuk said Ukrainians are “shocked” about the position of the United States’ recent vote against a United Nations resolution condemning the Russian invasion as well as the Trump Administration’s position on talks with Russia.

“This is exactly the moment when all the people of goodwill should do everything possible to support Ukraine in this very complicated time,” said Honcharuk.

Regarding the UN vote, McFaul said, “I am shocked, I am appalled, I am embarrassed as an American to see those votes today. We are voting with the most horrific dictators in the world.”

Oleksiy Honcharuk (R) spoke to a packed audience in Encina Hall. Oleksiy Honcharuk (R) spoke to a packed audience in Encina Hall. Rod Searcey

‘Not about people’


Matviichuk said, “Putin started this war of aggression, not because he wanted to occupy just more Ukrainian land. Putin started this war of aggression because he wanted to occupy and destroy the whole of Ukraine and even go further. He wants to forcibly restore the Russian Empire — he dreams about his legacy, his logic is historical.”

This ultimately means that Ukraine needs real security guarantees, she said. “President Trump said he started the peace negotiation because he cares about people dying in this war. So, if President Trump cares about people dying in this war, he also has to care about people dying in Russian prisons.”

She explained that she’s spoken with hundreds of people who have survived brutal conditions in Russian captivity. And so, it’s surprising, Matviichuk said, to hear political statements from U.S. officials “about natural minerals and elections, about possible territorial concessions, but not about people.”

Lack of Global Support


Serhiy Leshchenko, an advisor to Ukrainian President Zelenskyy’s Chief of Staff, spoke about the recent overtures by the Trump Administration to Russia.

“This is a new reality we are living in now. Frankly, my understanding is that Ukrainians are not very shocked with what's going on because we went through so many shocks within the last three years.”

Acknowledging the lack of an American flag at an allied event this week in Kyiv, Leshchenko said Ukrainians know perfectly well that perception is reality.

“It means that now we have an absolutely different perception. So, it’s obvious that there is no global security infrastructure anymore. It’s obvious that NATO is not an answer anymore,” said Leshchenko, an alumnus of the 2013 cohort of CDDRL’s Fisher Family Summer Fellows Program.

Serhiy Leshchenko (R) spoke virtually via Zoom at an event hosted by the Center on Democracy, Development and the Rule of Law on February 24, 2025. Serhiy Leshchenko (R) spoke virtually via Zoom at an event hosted by the Center on Democracy, Development and the Rule of Law on February 24, 2025. Rod Searcey

‘Sad occasion’


In her opening remarks, Stoner noted, “We’re here on what is actually a sad occasion, which is that Feb. 24 marks three years since the start of the full-scale Russian invasion of Ukraine.”

She said, “Only about less than 1% of land has changed hands since December 2022, so Ukraine is not losing. Ukraine is at least defending what it has, and it remains in Kursk (Russia).”

McFaul said, “It’s in our national interest that we do not line up with Belarus and Russia and North Korea – that holds negative consequences for our future security and prosperity. I actually think our country cares about values.”

He added that the notion that all America cares about is mineral rights, business deals, and hotels in Gaza is not the America he knows.

McFaul told the panelists, “I've witnessed and observed what you’ve been doing for your country, and we are just extremely fortunate to be connected to all of you, whom I consider to be heroic individuals in the world.”

A full recording of the event can be viewed below, and additional commentary can be found from The Stanford Daily.

Read More

Keith Darden presented his research in a CDDRL/TEC REDS Seminar on February 6, 2025.
News

War and the Re-Nationalization of Europe

American University Political Scientist Keith Darden examines how the Russian-Ukrainian war is reshaping European institutions.
War and the Re-Nationalization of Europe
Yoshiko Herrera presented her research in a REDS Seminar co-hosted by CDDRL and TEC on January 16, 2025.
News

Identities and War: Lessons from Russia’s War on Ukraine

Political Science scholar Yoshiko Herrera examines how identity shapes the causes, conduct, and consequences of war, especially in the wake of Russia’s invasion of Ukraine.
Identities and War: Lessons from Russia’s War on Ukraine
Vladimir Kara-Murza onstage with Michael McFaul at Stanford University.
News

Gone Today, Here Tomorrow: Vladimir Kara-Murza on the Fight for Democracy in Russia

During the 2024 Wesson Lecture, former political prisoner and democracy activist Vladimir Kara-Murza called for transparency and accountability from within Russia and more support from the international community to establish and grow Russian democracy.
Gone Today, Here Tomorrow: Vladimir Kara-Murza on the Fight for Democracy in Russia
Hero Image
All News button
1
Subtitle

FSI scholars and civic and political Ukrainian leaders discussed the impact of the largest conflict in Europe since World War II, three years after Russia's invasion of Ukraine.

Date Label
-

Join us for a compelling discussion on the evolving challenges and strategies shaping China’s economy and its impact on global industrial policy. During this panel discussion, Skyline Scholars Loren Brandt from the University of Toronto and Xiaonian Xu from the China Europe International Business School, as well as Senior Fellow Mary Lovely from the Peterson Institute for International Economics will explore the slowdown of China’s economy and the structural reforms needed to address its debt and growth challenges. Scott Rozelle, Co-Director of the Stanford Center on China's Economy and Institutions, will moderate the discussion. Panelists will examine the shifting role of industrial policy in China, its strategic and economic motivations, and its broader effects on China’s long-term trajectory, as well as how China’s policies influence U.S. policy decisions, including the role of industrial policy in an era of increasing global competition.

The discussion will begin with opening remarks at 3:15 pm on Wednesday, February 26th. We invite you to join us before the event for light refreshments.

This event is off the record. 


About the Speakers
 

Loren Brandt headshot

Loren Brandt is the Noranda Chair Professor of Economics at the University of Toronto specializing in the Chinese economy. He is also a research fellow at the IZA (The Institute for the Study of Labor) in Bonn, Germany. He has published widely on the Chinese economy in leading economic journals and been involved in extensive household and enterprise survey work in both China and Vietnam. With Thomas Rawski, he completed Policy, Regulation, and Innovation in China’s Electricity and Telecom Industries (Cambridge University Press, 2019), an interdisciplinary effort analyzing the effect of government policy on the power and telecom sectors in China. He was also co-editor and major contributor to China’s Great Economic Transformation (Cambridge University Press, 2008), which provides an integrated analysis of China’s unexpected economic boom of the past three decades. Brandt was also one of the area editors for Oxford University Press’ five-volume Encyclopedia of Economic History (2003). His current research focuses on issues of entrepreneurship and firm dynamics, industrial policy and innovation and  economic growth and structural change.

 

Mary Lovely headshot

Mary E. Lovely is the Anthony M. Solomon Senior Fellow at the Peterson Institute. She served as the 2022 Carnegie Chair in US-China Relations with the Kluge Center at the Library of Congress. Lovely is professor emeritus of economics at Syracuse University's Maxwell School of Citizenship and Public Affairs, where she was Melvin A. Eggers Economics Faculty Scholar from 2010 to April 2022. She was coeditor of the China Economic Review during 2011–15.

Her current research projects investigate the effect of China's foreign direct investment policies on trade flows and entry mode, strategic reform of US tariffs on China, and recent movements in global supply chains. Lovely earned her PhD in economics at the University of Michigan, Ann Arbor and a master's degree in city and regional planning from Harvard University.

 

Headshot of Scott Rozelle

Scott Rozelle is the Helen F. Farnsworth Senior Fellow and the co-director of Stanford Center on China's Economy and Institutions in the Freeman Spogli Institute for International Studies and Stanford Institute for Economic Policy Research at Stanford University. He received his BS from the University of California, Berkeley, and his MS and PhD from Cornell University. His research focuses almost exclusively on China and is concerned with: agricultural policy, including the supply, demand, and trade in agricultural projects; the emergence and evolution of markets and other economic institutions in the transition process and their implications for equity and efficiency; and the economics of poverty and inequality, with an emphasis on rural education, health and nutrition.

In recognition of his outstanding achievements, Rozelle has received numerous honors and awards, including the Friendship Award in 2008, the highest award given to a non-Chinese by the Premier; and the National Science and Technology Collaboration Award in 2009 for scientific achievement in collaborative research.

 

Xiaonian Xu headshot

Dr. Xiaonian Xu is Professor Emeritus at CEIBS, where he held the position of Professor of Economics and Finance from 2004 to 2018. In recognition of his contributions, he was named an Honorary Professor in Economics from September 2018 to August 2023.

Dr. Xu earned his Ph.D. in Economics from the University of California, Davis, in 1991, and an MA in Industrial Economics from the People's University of China in 1981. In 1996, he was awarded the distinguished Sun Yefang Economics Prize, the highest honor in the field in China, for his research on China’s capital markets. His research interests include Macroeconomics, Financial Institutions and Financial Markets, Transitional Economies, China’s Economic Reform, Corporate Strategy and Digital Transformation. His publications include: Freedom and Market Economy, There has Never been A Savior, China: Market Economy or Planned Economy, the Nature of the Business and the Internet, and the Nature of the Business and the Internet, 2nd Edition.

A dedicated educator, he has been recognized with the CEIBS Teaching Excellence Award in 2005 and 2006, as well as the esteemed CEIBS Medal for Teaching Excellence in 2010.

Scott Rozelle
Scott Rozelle


Encina Hall, William J. Perry Room C231
616 Jane Stanford Way

This event will be held in-person only, registration is required.

Encina Hall, East Wing, Room 413

Office Hours:
Select Wednesdays | 2:00-5:00 PM 
Please schedule a meeting in advance

0
Skyline Scholar (2025), Stanford Center on China's Economy and Institutions
Professor of Economics, Noranda Chair in Economics and International Trade, University of Toronto
Research Fellow, IZA
loren_brandt_-_bg_remove.png
PhD

Loren Brandt is the Noranda Chair Professor of Economics at the University of Toronto specializing in the Chinese economy. He is also a research fellow at the IZA (The Institute for the Study of Labor) in Bonn, Germany. He has published widely on the Chinese economy in leading economic journals and been involved in extensive household and enterprise survey work in both China and Vietnam. With Thomas Rawski, he completed Policy, Regulation, and Innovation in China’s Electricity and Telecom Industries (Cambridge University Press, 2019), an interdisciplinary effort analyzing the effect of government policy on the power and telecom sectors in China. He was also co-editor and major contributor to China’s Great Economic Transformation (Cambridge University Press, 2008), which provides an integrated analysis of China’s unexpected economic boom of the past three decades. Brandt was also one of the area editors for Oxford University Press’ five-volume Encyclopedia of Economic History (2003). His current research focuses on issues of entrepreneurship and firm dynamics, industrial policy and innovation and  economic growth and structural change.

Date Label
Loren Brandt
Mary Lovely

Encina Hall, East Wing, Room 014

Office Hours:
Select Mondays | 3:00-5:00 PM 
Please schedule a meeting in advance

0
Skyline Scholar (2024), Stanford Center on China's Economy and Institutions
Professor of Economics and Finance, China Europe International Business School
prof._xu_xiaonian.jpg
Ph.D.

Dr. Xiaonian Xu is Professor Emeritus at CEIBS, where he held the position of Professor of Economics and Finance from 2004 to 2018. In recognition of his contributions, he was named an Honorary Professor in Economics from September 2018 to August 2023.

Between 1999 and 2004, Dr. Xu served as Managing Director and Head of Research at China International Capital Corporation Limited (CICC). Before joining CICC, he was a Senior Economist at Merrill Lynch Asia Pacific, based in Hong Kong from 1997 to 1998, and worked as a World Bank consultant in Washington DC in 1996. Dr. Xu was appointed Assistant Professor of Amherst College, Massachusetts, where he taught Economics and Financial Markets from 1991 to 1995. Earlier in his career, he was a research fellow at the State Development Research Centre of China from 1981 to 1985.

Dr. Xu earned his Ph.D. in Economics from the University of California, Davis, in 1991, and an MA in Industrial Economics from the People's University of China in 1981. In 1996, he was awarded the distinguished Sun Yefang Economics Prize, the highest honor in the field in China, for his research on China’s capital markets. His research interests include Macroeconomics, Financial Institutions and Financial Markets, Transitional Economies, China’s Economic Reform, Corporate Strategy and Digital Transformation. His publication includes: Freedom and Market Economy, There has Never been A Savior, China: Market Economy or Planned Economy, the Nature of the Business and the Internet, and the Nature of the Business and the Internet, 2nd Edition.

A dedicated educator, he has been recognized with the CEIBS Teaching Excellence Award in 2005 and 2006, as well as the esteemed CEIBS Medal for Teaching Excellence in 2010.

Date Label
Xiaonian Xu
Panel Discussions
Date Label

Encina Hall, East Wing, Room 413

Office Hours:
Select Wednesdays | 2:00-5:00 PM 
Please schedule a meeting in advance

0
Skyline Scholar (2025), Stanford Center on China's Economy and Institutions
Professor of Economics, Noranda Chair in Economics and International Trade, University of Toronto
Research Fellow, IZA
loren_brandt_-_bg_remove.png
PhD

Loren Brandt is the Noranda Chair Professor of Economics at the University of Toronto specializing in the Chinese economy. He is also a research fellow at the IZA (The Institute for the Study of Labor) in Bonn, Germany. He has published widely on the Chinese economy in leading economic journals and been involved in extensive household and enterprise survey work in both China and Vietnam. With Thomas Rawski, he completed Policy, Regulation, and Innovation in China’s Electricity and Telecom Industries (Cambridge University Press, 2019), an interdisciplinary effort analyzing the effect of government policy on the power and telecom sectors in China. He was also co-editor and major contributor to China’s Great Economic Transformation (Cambridge University Press, 2008), which provides an integrated analysis of China’s unexpected economic boom of the past three decades. Brandt was also one of the area editors for Oxford University Press’ five-volume Encyclopedia of Economic History (2003). His current research focuses on issues of entrepreneurship and firm dynamics, industrial policy and innovation and  economic growth and structural change.

Date Label
All Publications button
1
Publication Type
Journal Articles
Publication Date
Subtitle

This paper empirically investigates the labor market effects of China’s 2007 VAT reform, which significantly reduced the tax cost of capital investment. Employing city-by-year variation in the reform, we demonstrate that the tax cuts increased the earnings of skilled workers and left the earnings of the unskilled workers unaffected. Moreover, we find limited impacts of the reform on employment for both skill groups. These results suggest that the tax incentives increased the relative demand for skills, thus resulting in a higher income inequality between skilled and unskilled workers.

Journal Publisher
Labour Economics
Authors
Hongbin Li
Hongbin Li
Lingsheng Meng
Lingsheng Meng
Paragraphs

Shorenstein APARC's annual report for the academic year 2023-24 is now available.

Learn about the research, publications, and events produced by the Center and its programs over the last academic year. Read the feature sections, which look at the historic meeting at Stanford between the leaders of Korea and Japan and the launch of the Center's new Taiwan Program; learn about the research our faculty and postdoctoral fellows engaged in, including a study on China's integration of urban-rural health insurance and the policy work done by the Stanford Next Asia Policy Lab (SNAPL); and catch up on the Center's policy work, education initiatives, publications, and policy outreach. Download your copy or read it online below.

All Publications button
1
Publication Type
Annual Reports
Publication Date
Authors
Authors
Melissa Morgan
News Type
Commentary
Date
Paragraphs

A warming planet. Backsliding in democracy at home and abroad. Competition with China. And active war in Europe. Broadening conflicts in the Middle East.

The world today is facing no shortage of overlapping, multilateral challenges. At a recent panel titled, “Global Threats Today: What's At Stake and What We Can Do About It,” scholars from the Freeman Spogli Institute for International Studies (FSI) had an opportunity to delve deeper into what the data says about how these global threats are evolving, and how we should be thinking about how to address them.

The discussion, which was held as part of Stanford University's 2024 Reunion and Homecoming weekend, was moderated by Michael McFaul, director of the Freeman Spogli Institute, and featured Marshall Burke, Didi Kuo, Amichai Magen, Oriana Skylar Mastro, and Steven Pifer.

In the highlights below, each scholar shares what they wish people understood better about climate change, the war in Ukraine and Russia's aggression, China's strategy for building power, the health of American democracy, and how the fighting between Israel and Hamas fits into the geopolitical struggle between democracies and autocracies.

Their full conversation can be heard on the World Class podcast, and the panel can be watched in its entirety on YouTube.
 

Follow the link for a full transcript of "Global Threats Today: The 2024 Edition."


Illiberal Actors Are on the Move  |  Amichai Magen


Around the world, we are seeing a new axis of influence coalescing. Some have called it the "axis of misery" or the "axis of resistance." It is composed of Russia and Iran and North Korea, with a lot of Chinese involvement as well. It is transforming our international system in unbelievable ways. It is united by the desire to dismantle the liberal international order, and we're starting to see the nature and the interconnectivity of this new axis of chaos much more clearly. 

You see North Korean soldiers fighting for Putin in Ukraine. You see Putin helping the Houthis attack international Western shipping in Yemen. We see North Korean tunnel technology turn up in Lebanon with Hezbollah and then with Hamas in Gaza. The interconnectivity is something that we really need to know much more about.

Historically, emperors, kings, dukes, used to spend 50% of their resources on preparing for war or waging war. But in the post-Second World War era, we built a critical norm that we've called the liberal international order. And the miracle of the liberal international order is that we've managed to take global averages of defense spending from about 50% to a global average of about 7%. And the resulting surplus wealth has allowed us to invest in education, health, and scientific discovery.

What is at stake now is the possibility of a return of a norm where states are destroyed and disappear. And we have currently three states in the international system, at the very least — Ukraine, Israel and Taiwan — that are at risk of annihilation. To that end, we must articulate a positive strategic vision for the Middle East that will strive towards a two state solution, that would give the Palestinian people the dignity and the freedom that they deserve alongside a safe and secure Israel, and that will leverage the new spirit of cooperation that exists in the Middle East.

If we allow the norm of the non-disappearance of state to erode and collapse, we will go back to the law of the jungle, where we will have to spend so much more money on the wrong things. That is what is at stake in Ukraine, in the Middle East, and with Taiwan.
 

Amichai Magen

Amichai Magen

Visiting Fellow in Israel Studies at the Freeman Spogli Institute
Full Profile


Challenges to Democracy Come From Within |  Didi Kuo


Many people think that the threat to democracy comes from outside our borders, particularly from countries like Russia and China that are asserting themselves in new and aggressive ways.

But the real threat to democracies that we're seeing across the globe is coming from within. Leaders come to power through democratic means, but then they begin to erode power from within. They attack the electoral system and the process of democratic elections, and they take power from other branches of government and aggregate it to themselves within the office of the executive. 

The good news is there are examples of countries like France, Brazil, and Poland where illiberal leaders have been stopped by pro-democracy coalitions of people who came together. These coalitions don't necessarily agree with each other politically, but they've come together and adapted in order to foreclose on these anti-democratic forces. 

That flexibility and adaptability is the reason democracies succeed. We see this over and over again in the the United States. When our institutions have become out of date, we've changed them. We extended suffrage, first to Black Americans who were formerly enslaved, then to women, then to Native Americans. We eliminating poll taxes and rethought what it means to have a multiracial democracy. We have a long track record of making changes.

Today in 2024, some of our democratic institutions are antiquated and don't reflect our contemporary values. This is a moment where we should lean into that flexible strength of democracy and think about institutional reforms that will both strengthen our system against illiberal creep and help us better achieve the ideals that we aspiring to as a people.
 

Didi Kuo

Didi Kuo

Center Fellow at the Center on Democracy, Development, and the Rule of Law
Full Profile


Ukraine Is Not Fated to Lose |  Steven Pifer


There's a narrative that's taking place that Russia is winning the war, Ukraine is losing, and it's only a matter of time. And it is true that Russia has captured a bit more territory than they occupied at the start of the year. But they've only achieved that at enormous cost.

As of September, the Pentagon says Russia had lost 600,000 dead and wounded soldiers. To put that in context, in February of 2022 when this major invasion began, the total Russian military — not just the army, but the total Russian military — was 1.1 million people. And the British Ministry of Defense earlier this week assessed that Russia now is losing 1,200 soldiers killed or severely wounded per day. You have to ask how long that's sustainable.

When I talk to Ukrainians, they still regard this war as existential. They're very determined to win, and we need to do a better job of supporting that. A stable and secure Europe is vital to America's national security interests, and you're not going to have a stable and secure Europe unless there's a stable and secure Ukraine. So we need to both provide them the weapons they need and relieve some of the restrictions we currently have and allow the Ukrainians to use those weapons to strike military targets in Russia.

Because we have to ask ourselves: what does an emboldened Vladimir Putin do if he wins in Ukraine? I don't think his ambitions end with Ukraine, perhaps not even with the post-Soviet space. There's going to be a much darker Russian threat hovering over Europe if Putin wins. So let's not count the Ukrainians out.
 

Man smiling

Steven Pifer

Affiliate at the Center for International Security and Cooperation and The Europe Center
Full Profile


China Isn't Going Away Anytime Soon  |  Oriana Skylar Mastro


There is a lot of discussion right now about the fact that the economy in China is slowing down and its demography is undergoing significant changes. What I'm here to tell you is that the challenge of China is not over, and is not going to be over any time soon. China has built power in a different way than the United States, and we have to reassess how we understand that power if we want to effectively deter, blunt, and block them from acting out in ways that threaten our partners and allies.

Since the 1990s, China has developed a significant amount of political, economic, and military power. They've gone from having an economy smaller than France’s  to the second largest in the world. They've gone from not being involved in international institutions to a great degree, not even having diplomatic relations with major countries like South Korea, to now having stronger and greater diplomatic networks, especially in Asia, than the United States.

What we really need to understand is that the U.S.-China competition is not about the United States or about China; it's about the rest of the world, and how the rest of the world sees us and how China interacts with us. The balance of power is shifting, and we have to be a lot smarter and a lot faster if we want to make sure it shifts in favor of our interests.

The United States hasn't had a comprehensive strategy towards the developing world in a long time. And we are running out of time to get that balance right in Asia. We don't have the right stuff. We don't have it in the right numbers, and it's not in the right place. Some of this is about deterring war over Taiwan, but it's also about generally maintaining peace and stability in Asia.
 

Oriana Skylar Mastro

Oriana Skylar Mastro

FSI Center Fellow at the Asia-Pacific Research Center and the Center for International Security and Cooperation
Full Profile


We're Doing Better (But Not Enough) on Climate Change |  Marshall Burke


Many people don't recognize how much progress we're actually making on climate issues. Emissions have fallen by 20% since 2005. We're actually speeding up the amount of substantial progress being made in reducing greenhouse gas emissions and dealing with the core climate change problem, which is the human emission of greenhouse gasses.

In the United States, the Inflation Reduction Act and the subsequent implementation of various rules the Biden administration has championed has given a huge boost in transitioning our economy to greener energy technologies, transportation technologies, and other kinds of infrastructure. We're moving a lot of cash to get that done, and the president is trying to get as much of it out the door as he can before his term ends.

Globally, the progress has been less rapid. Emissions are roughly flat. But overall, we're still making progress. I co-teach an undergraduate class on climate change, and we've had to update our slides on how much warming we're expecting over the next century. We thought it was going to be four degrees Celsius. Now we think it's going to be something between two and three degrees Celsius.

But the flip side of that is that we're still going to get warming of two to three degrees Celsius. We're already experiencing warming of about a degree Celsius, which is about two degrees Fahrenheit, and it's projected that we're going to get another three to five degrees Fahrenheit by the end of the century. That is a lot of warming, and we are not prepared to deal with it. We need to do much more on mitigation and much more on adaptation if we're going to meet the realities of living in a changing climate.

So we've had progress on the one hand, but there's still a lot of work left to do in the coming decades.
 

Marshall Burke

Marshall Burke

Deputy Director of the Center on Food Security and the Environment
Full Profile


Get additional analysis from scholars at the Freeman Spogli Institute for International Studies by following us on X, Facebook, LinkedIn, Instagram, YouTube, and by subscribing to our newsletters and updates.

Read More

group of people standing on steps of Encina Hall at the 2024 Trans-Pacific Sustainability Dialogue
News

Driving Climate-Resilient Infrastructure and Inclusive Industrialization: Highlights from the Third Annual Trans-Pacific Sustainability Dialogue

Held at Stanford and hosted by the Shorenstein Asia-Pacific Research Center, the third annual Dialogue convened global leaders, academics, industry experts, and emerging experts to share best practices for advancing Sustainable Development Goal 9 in support of economic growth and human well-being.
Driving Climate-Resilient Infrastructure and Inclusive Industrialization: Highlights from the Third Annual Trans-Pacific Sustainability Dialogue
People report high levels of dissatisfaction with democracy in countries where corruption is endemic.
News

How Corruption at the Top Erodes Support for Democracy

News of high-level dishonesty and graft can reduce people’s trust in government — and their fellow citizens.
How Corruption at the Top Erodes Support for Democracy
Lisa Einstein
News

Lisa Einstein to Lead Artificial Intelligence Efforts at Cybersecurity and Infrastructure Security Agency

Einstein, an alumna of the Ford Dorsey Master's in International Policy, was Stanford’s first dual master’s degree recipient in computer science (artificial intelligence concentration) and international policy (cyber policy and security specialization).
Lisa Einstein to Lead Artificial Intelligence Efforts at Cybersecurity and Infrastructure Security Agency
All News button
1
Subtitle

At a panel during Stanford's 2024 Reunion weekend, scholars from the Freeman Spogli Institute for International Studies shared what their research says about climate change, global democracy, Russia and Ukraine, China, and the Middle East.

Date Label
Authors
News Type
News
Date
Paragraphs

We are pleased to share that Jiwon Bang (MA '24, East Asian Studies) and Jong Beom "JB" Lim (MS '25 Computer Science; BAS '24 International Relations and Mathematical  Computational Science) are the co-recipients of the 13th Annual Korea Program Prize for Writing in Korean Studies. Bang is recognized for her thesis, "Multidimensional Diplomacy: The Evolution of the Pacific Pact and the Mutual Defense Treaty between the United States and the Republic of Korea, 1948-1953." Lim is recognized for his thesis "Navigating Asymmetry: Leadership Preferences and Foreign Policy Outcomes in U.S. Security Allies."

"Jiwon meticulously examines the historical origins and evolution of the 1953 Mutual Defense Treaty between the United States and the Republic of Korea (ROK), says Gi-Wook Shin, Professor of Sociology and William J. Perry Professor of Contemporary Korea. "Disputing the conventional view that the Treaty was a direct response to the outbreak of the Korean War (1950-1953), she uncovers its roots and complex processes extending back to pre-war discussions in 1948. Her study provides a nuanced understanding of the early Cold War security dynamics in the Asia-Pacific region and has contemporary relevance. By drawing on lessons from the Pacific Pact's failure, her thesis offers insights for contemporary regional security cooperation in the Asia-Pacific region." 

"JB marshals detailed comparative case studies of policy debates over the last two decades in South Korea and the Philippines, augmented by semi-structured interviews of several dozen elites involved in foreign policymaking in the two countries," says Kenneth Schultz, William Bennett Munro Professor of Political Science. "The cases show how alternation in power between leaders from different parties fundamentally altered the tenor of bargaining with the United States and the approach to dealing with domestic opposition. The result is a compelling argument, elegantly and persuasively written. Not only does [this thesis] present an incisive analysis of a key dilemma facing South Korean leaders, but it situates this case in a comparative context alongside the Philippines. It also provides timely insights into the challenges of alliance management and makes a nuanced contribution to the scholarly literature on domestic politics and international bargaining."

View more information about Jiwon Bang's paper.
For more information about JB Lim's paper.

Sponsored by the Korea Program and the Center for East Asian Studies, the writing prize recognizes and rewards outstanding examples of writing by Stanford students in an essay, term paper, or thesis produced during the current academic year in any discipline within the area of Korean studies, broadly defined. The competition is open to both undergraduate and graduate students.

Past Recipients:

12th Annual Prize (2023)
11th Annual Prize (2022)
10th Annual Prize (2021)
9th Annual Prize (2020)
8th Annual Prize (2019)
7th Annual Prize (2018)
6th Annual Prize (2017)
5th Annual Prize (2016)
4th Annual Prize (2015)
3rd Annual Prize (2014)
2nd Annual Prize (2013)
1st Annual Prize (2012)

Hero Image
All News button
1
Subtitle

Master's students Jiwon Bang (MA '24, East Asian Studies) and Jong Beom "JB" Lim (MS '25 Computer Science; BAS '24 International Relations and Mathematical Computational Science) are the recipients of the 13th annual Korea Program Prize for Writing in Korean Studies for their thesis papers.

Image
portraits of Jiwon Bang and Jong Boom Lim
Date Label
0
Visiting Scholar at APARC, 2024-2025
China Policy Fellow, 2024-2025
tiejun_yu_2024_headshot.jpg
Ph.D.

Professor Yu Tiejun joined the Walter H. Shorenstein Asia-Pacific Research Center (APARC) as China Policy Fellow for the 2024 fall quarter. He currently serves as President of the Institute of International and Strategic Studies (IISS) and Professor at the School of International Studies (SIS), all at Peking University (PKU). Previously, he studied at the University of Tokyo in 1998-2000. He served as visiting fellow at the Center for International Security and Cooperation at Stanford University in 2005, and also as visiting scholar at the Fairbank Center for East Asian Research at Harvard University in 2005-06.

Dr. Yu has co-edited The Sino-Japanese Security and Defense Exchange: Past, Present, and Prospect (Beijing: World Affairs Press, 2012, with Zhu Feng and Akiyama Masahiro). He is also the Chinese translator of Myths of Empire by Jack Snyder (2007) and Discord and Collaboration: Essays on International Politics by Arnold Wolfers (2006). His research interests include International Security, China-U.S.-Japan Relations, and China’s National Defense Policy. He won the Excellent Teaching Award of Peking University in 2010. Dr. Yu received his Ph.D., M.A. and B.A. from Peking University.

While at APARC, he conducted research on contemporary China affairs and U.S.-China policy.

Date Label
Subscribe to Foreign Policy