The Walter H. Shorenstein Asia-Pacific Research Center (APARC) is pleased to announce its new China Policy Fellowship, which will bring to Stanford mid-career to senior-level experts with extensive research experience on issues vital to U.S. China policy and influence in the policymaking process. With this new offering, APARC seeks to apply cutting-edge academic analysis to pressing challenges affecting U.S. policy toward China and to strengthen U.S.-China relations.

The fellowship will be awarded annually to one expert. While at Stanford, the China Policy Fellow will undertake original research in his/her area of expertise and will play a lead role in organizing a major conference on a topic central to the U.S.-China policy agenda. Each fellow’s work and annual conference will result in a publication that will help advance a deeper understanding of China and its aims.

The fellowship will be hosted by APARC’s China Program, whose mission is to facilitate multidisciplinary, social science-oriented research on contemporary China, with a dual emphasis on basic and policy-relevant research. The appointment of the inaugural 2021-22 China Policy Fellow will begin in the fall quarter of 2021. The new fellowship is made possible thanks to the generosity of an APARC supporter.

“The need to enhance understanding within the United States about China has never been more critical,” says China Program Director Jean Oi, a senior fellow at the Freeman Spogli Institute for International Studies and the William Haas Professor of Chinese Politics. “In these times when divergent claims and bellicose propositions are regularly made by politicians and policymakers in the United States and in China, the China Policy Fellowship will help us promote dialogue between the two nations and empirically-driven research relevant to U.S. China relations. I am delighted that we are able to offer this new fellowship opportunity.”

The application deadline for the 2021-22 China Policy Fellowship is February 15, 2021.

On August 28, Japan’s Prime Minister Shinzo Abe announced that he will step down from the position, citing serious health concerns. What is his legacy and what lies ahead? Below, I list his three major accomplishments (hits) and disappointments (misses) and consider who is likely to succeed him.

Hit: Abe’s greatest accomplishment is that he kept winning elections and stayed in power, becoming the longest-serving prime minister in Japanese history. In a country where only one prime minister (Koizumi) lasted more than two years in the last three decades, this is a significant achievement. He started his (second) term in 2012 when Japan was still reeling from the triple disaster of 2011 and the mismanagement by the then-ruling Democratic Party of Japan (DPJ). He initially restored confidence in Japan, energized the economy with bold policies, and brought stability to Japanese politics. The weakening and eventual disintegration of the DPJ facilitated his streak of electoral victories, but he deserves credit for launching several policy initiatives to revitalize the stagnant and aging economic giant and for incorporating social welfare policies – many of which were proposed by opposition parties – to stave off dissatisfaction among voters. He raised the consumption tax rate twice and still won six straight elections, an amazing feat considering how past prime ministers faired after a tax hike.

Miss: Despite this long period as prime minister, it is not entirely clear that he accomplished major policy goals. Abenomics – Abe’s signature economic policy – reinvigorated the Japanese economy, shooting stocks up to great heights, but the economy as a whole did not grow any faster under his watch and per capita GDP shrank, exacerbating economic inequality. Revising the Constitution, widely seen as his ultimate goal as prime minister, did not come close to being a reality, even though he launched a number of trial balloons. Abe also proposed many new policy initiatives with catchy phrases – womanomics, work-life balance reform, reviving rural Japan, etc. – but was often criticized for producing only an impression that he is doing something (yatterukan) rather than actually getting things done.

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Hit: Foreign policy was Abe’s strong suit. Having outserved most G7 leaders, his stature at international meetings rose to a height few Japanese prime ministers reached before. Overcoming the initial perception as a hawkish nationalist ideologue, he demonstrated savvy pragmatism in foreign affairs, developing strong relationships with the United States, particularly with President Trump, and recovering from the rocky start with President Xi to forge a practical partnership with China. His administration also passed a series of legislation that advanced realist security policies and popularized a vision of Free and Open Indo-Pacific, which other countries including the United States bought into. Furthermore, despite the U.S. withdrawal from the Trans-Pacific Partnership (TPP), Abe marched on and led the charge toward the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), a rare example of Japan leading a multilateral agreement without support from the United States.

Miss: Yet, Abe failed to achieve some key foreign policy goals. The issue of abduction of Japanese by North Korea, which prompted him to national prominence when he was a young cabinet member under Prime Minister Koizumi, did not see any progress, nor did territorial negotiations with Russia – another foreign policy issue he expended a good deal of capital on. South Korea was another thorn on his side: the “comfort women” agreement could have been Abe’s major accomplishment, but domestic political turmoil in South Korea led to President Moon’s scuttling of the agreement, which sent the Japan-South Korea relations into a downward spiral. This development had more to do with South Korean politics than Abe, but he still could have tried to repair the damage. Instead, he threw in a towel on Moon and escalated tensions with South Korea, when the two countries should be close allies collaborating to cope with China’s assertiveness and the North Korean nuclear threat.

Hit: Abe’s cabinet accumulated enormous power over bureaucrats by holding authority on personnel decisions, which is critical in controlling them. This shift of power from bureaucrats to politicians was what the DPJ advocated when it became the ruling party. Abe nearly perfected this transfer of power and established a system under which the prime minister can take the initiative for new policies, going over opposition from career bureaucrats, and seek voters’ judgment about the merits of the policy in subsequent elections. This departs from decades of political practice in Japan, whereby bureaucrats set major policies, and most politicians merely parrot policy goals, which is unconducive to major policy changes needed to energize the stagnant economy and society. Abe leaves in place the cabinet apparatus that could empower the next prime minister to launch major policy initiatives.

Miss: The downside of the concentration of power is corruption. A series of scandals that revealed excessively cozy relationships between Abe and his supporters threatened Abe’s hold on power in the last few years. As is often the case, the coverup was worse than the initial infraction in the major financial scandals, and other transgressions challenged the public’s sense of fairness as Abe’s supporters – politicians, government officials, business leaders, journalists, or celebrities – allegedly received special treatment. The lack of accountability undermined Abe’s credibility toward the end, and the weakened administration struggled to handle the coronavirus crisis. Despite the relatively low numbers of coronavirus cases and victims in Japan, Abe received few applauses for his handling of the crisis. Even though his health was the main reason for his resignation, all these recent developments sapped the energy out of his cabinet, setting the stage for his resignation.

Who’s Next?

Abe’s abrupt departure prompted a number of party leaders to jockey for the successor position. As of this writing, Chief Cabinet Secretary Yoshihide Suga has all but secured the position, having picked up support from key factions within the ruling LDP. Fumio Kishida and Shigeru Ishiba will remain on the ballot but other major candidates such as Defense Minister Taro Kono have decided not to run this time.

Suga has been the most important partner for Abe in the cabinet along with Deputy Prime Minister Aso, contributing to the consolidation of power in the cabinet and executing various policy initiatives and legislative successes. Suga would likely carry forward many of Abe’s key policies, and with his tactical savvy and the potent cabinet apparatus that he helped create, has the potential to become a powerful prime minister. On the other hand, he would only have a year before the next election for LDP presidency (because he would be filling Abe’s remaining term) and he would have to account for Abe’s negative legacies, in some of which he is seen as complicit. These factors lead many observers to predict a short stint for him, but Suga is a scrappy self-made man who rose from a modest background, and his political instincts and already strong hold on power are not to be underestimated.

To celebrate its May Release, the Stanford China Program hosted a virtual book launch event for Fateful Decisions: Choices That Will Shape China’s Future (Stanford University Press) on June 2^nd. Joining co-authors Thomas Fingar (Shorenstein APARC Fellow, Stanford University) and Jean C. Oi (Director, Stanford China Program; William Haas Professor of Chinese Politics, Stanford University) were contributors Karen Eggleston (Senior Fellow at FSI; Director of the Asia Health Policy Program, Shorenstein APARC, Stanford University), Barry Naughton (Sokwanlok Chair of Chinese International Affairs, School of Global Policy and Strategy, UC San Diego), and Andrew Walder (Senior Fellow at FSI; Denise O'Leary and Kent Thiry Professor, Stanford University). As Fingar and Oi point out in their volume, despite China’s extraordinary growth over the past 40 years, the country’s future is uncertain. China has enjoyed optimal conditions for development since the 1980s, but new hurdles including an aging populace, the loss of comparative economic advantage, a politically entrenched elite, and a population with rising expectations will test the country’s leaders. With each focusing on a different facet of China’s challenges, the panelists gathered to share their expertise and provide the audience with a glimpse into what the future might hold for this important country.

Available Now: Fateful Decisions: Choices That Will Shape China’s Future

Following an introduction from Professor Jean Oi, the program kicked off with Professor Barry Naughton of University of California, San Diego, who discussed his chapter entitled “Grand Steerage.” Professor Naughton argued that, as it plans for the future, China’s policymaking is becoming increasingly technology-focused, particularly in the realm of economic policy. Naughton further notes that China’s economy is becoming simultaneously more state-guided and more centered around technology. This decision is a gamble, though: China is investing heavily in high-tech industries, advancing massive, centrally steered projects like the Greater Bay Area initiative and the Xiong’an New District. If they are successful, says Naughton, this will indeed be an incredible success. But, if they are not, China’s losses will be major: “There’s not really a middle ground.”

After Professor Naughton was Professor Karen Eggleston, an expert on health policy in Asia. Professor Eggleston’s chapter, “Demographic and Healthcare Challenges,” deals with emerging obstacles for China’s healthcare system, including population aging and the problems that come with it, like chronic diseases and elder care. Although China’s healthcare system has improved dramatically in recent decades, it has done so unevenly, notes Eggleston: life expectancy has greatly increased, but with disparities according to income, region, and urban vs. rural status; universal healthcare is available, but the benefit level is low, effectively limiting the standard of care many can receive. The ratio of health spending to GDP is also increasing, yet it is still modest compared to high-income countries. The COVID-19 crisis has, of course, introduced even more challenges: Will China be able to distribute future vaccines equitably? Will this crisis negatively affect young people’s decisions to choose healthcare as a career? Will telemedicine, which has seen a surge under the pandemic, improve or exacerbate existing disparities? China faces a multitude of constraints and choices going forward if it hopes to meet its population’s healthcare needs.

The audience then had a chance to hear from co-editor Thomas Fingar, speaking on his chapter, “Sources and Shapers of China’s Foreign Policy.” Fingar noted three key takeaways from both his chapter and his talk: Firstly, China’s foreign policy is a fundamental part of its national policy. Secondly, the global political environment plays an important role in shaping both foreign and domestic policy which, thirdly, plays an important role in shaping foreign policy. The conditions that allowed China to flourish over the past 40 years, emphasized Fingar, are very different from those of the present. In the 1970s and 80s, China was able to take advantage of Cold War bipolarity, globalization was in its infancy, and “China was the only significant developing country willing to embark, at that time, on the export-led path of development.” In recent years, though, China’s behavior internationally has alienated other countries; there are many competitors pursuing its style of development; and its needs and aspirations have changed, requiring more raw materials and depending upon multi-national economic agreements. Fingar suggests two potential foreign policy options: China could continue with its wolf warrior diplomacy, which has “alienated essentially all China’s neighbors to some degree,” or it could return to a style more similar to that of the 1980s and 90s Reform and Opening era. It remains to be seen which style will win out.

Finally, Professor Andrew Walder concluded the program with his discussion of China’s political future at large. His chapter, “China’s National Trajectory,” follows China’s remarkable advancement in recent years and “tr[ies] to divine what a lower growth era will mean for China’s political future.” The last 40 years of rapid growth have generated support for China’s political system, more patriotism, the near eradication of democracy movements, and an elite unity not seen in the 1970s and 80s. However, low growth rates could mean a reversal for many of these trends, says Walder. While the aforementioned support for and stability of the Chinese government was maintained by ever-improving living standards and upward mobility, a low growth period (coupled with an aging population) means the government will no longer be able to rely on these trends for popular support. Rather, it will need to improve its provision of public services to address present-day challenges. Regardless, argues Walder, the low growth era will undoubtedly lead to “dynamic changes underneath the façade of stability of Chinese politics….”

For more insights on the modern obstacles China faces and what they mean for the country’s future, check out Fateful Decisions: Choices That Will Shape China's Future, available for purchase now.