The Rise and Role of the Renminbi as an International Reserve Currency

The IMF’s decision to formally include the renminbi as one of five hard currencies in its SDR basket, and the half-decade or so of liberalizing reforms leading into it, is likely to be recorded by economic historians with the corresponding level of attention that is devoted to the establishment of the Federal Reserve System almost-exactly a century ago.

Sourabh Gupta Senior Research Associate, Samuels Int'l Associates via CHINA US Focus http://ift.tt/1IFkcB2

Russia-Turkey Tussle Adds To Middle East Conundrum

Russian relations with NATO have tensed up as a result of Moscow’s intervention and squabble with Turkey, as the US re-weighs its core interests and level of involvement on the ground in the region.

Mandy Peng via CHINA US Focus http://ift.tt/1R0djwZ

China Prepares for an Expanded Reach

Chinese leadership’s recent engagements points to their persistent pursuit of its vision of connectivity named One Belt One Road (OBOR). New areas are now being added to the list.

Sajjad Ashraf Adjunct Professor, National University of Singapore via CHINA US Focus http://ift.tt/1YOJvCD

Poverty Remains the Arch Enemy in China

China’s goal of achieving “Xiao Kang” — or “moderately prosperous society” by 2020 aims to make sure that the remaining families still in poverty also step into the well-off society together with the rest of the nation. In President Xi Jinping’s words, “No one should be left behind.”

Fu Ying, NPC Spokeswoman via CHINA US Focus http://ift.tt/1ObS0Gg

Anti-Terrorism War in International Finance Begins

Effective cooperation among all nations to throttle terrorists’ means of fund-raising – particularly oil deals -- is urgently needed in the global war against terrorism. But that short-term goal must be followed by a long-term objective: stability in the Mideast region.

Wu Sike, Member on Foreign Affairs Committee, CPPCC via CHINA US Focus http://ift.tt/1V4YlEK

From California to Syria

Presently, public sentiment to minimize the risk of terror is on the rise, one of the factors prompting the US to reassess its strategic goals in the Middle East. The result is a more united front in the war against terrorism.

Shen Dingli Associate Dean, Fudan University via CHINA US Focus http://ift.tt/1S9MhSO

Raising Commitment to the World, and Pressure on Ourselves

The negotiations were tiresome, the jostling was tough and complicated. To save the common homeland of mankind, to guarantee the sustainable development of all countries, the conclusion of the Paris Agreement gives hope and expectation that we can overcome all sorts of difficulties, and we have the wisdom and courage to do so.

Chen Yonglong, Director, China Foundation for Int'l Studies via CHINA US Focus http://ift.tt/1V0n8JW

Chinese Renminbi, U.S. Dollar and ‘Hot Money’ Outflows

As China’s renminbi has been included in the IMF elite currencies and the Fed has started its rate hikes, conventional wisdom sees the RMB weakening and U.S. dollar strengthening as simple long-term trends. The realities are far more complex, however.

Dan Steinbock, Research Director, India China and America Institute via CHINA US Focus http://ift.tt/1JqBrAV

RMB’s New Role in International Currency System Reform

SDR status is only a fresh starting point for transforming China from a big financial entity into a strong financial powerhouse. By adding a currency from the developing world, the SDR much better reflects the functions of emerging economies in global economic and financial affairs.

Zhang Monan, Researcher, China Int'l Economic Exchanges Center via CHINA US Focus http://ift.tt/1YsVH0M

Developing Nations’ Path to Green Growth After Paris

The landmark climate deal negotiated last week in Paris is important first step. However, increased coordination and cooperation between developed and developing countries to enable these much-needed reforms is critical. This includes collective learning, building tools to help strengthen institutional capacity and develop green growth policy, expanding peer learning and knowledge sharing, and engaging private investors and public donors.

Yvo De Boer Director-General, Global Green Growth Institute via CHINA US Focus http://ift.tt/1TbE0fw

The West Philippine Sea Arbitration in Context of Great Power Competition

Legal fixation on West Philippine Sea islands limits Philippine action and fails to take into account evolving realities and dynamics, notably increasing U.S.-China competition that blurs and shifts alliances, compelling smaller powers to be more cautious and contributing to overall regional anxiety and instability.

Lucio Blanco Pitlo III Assistant Professorial Lecturer, De La Salle University via CHINA US Focus http://ift.tt/1QDVJyt

Out of Africa: An Elephant-Sized China-U.S. Opportunity – Ending the Ivory Trade

Economic development and consumer demand threaten a growing number of wildlife species. With China typically cited as the No. 1 consumer of ivory and other wildlife products, the government’s actions and a consumer culture change will be critical to conserving the world's wildlife.

Curtis S. Chin, Former US Ambassador to Asian Development Bank via CHINA US Focus http://ift.tt/1IY1Gnc

How Should China Continuously Release Its Social Capital?

As the labor supply declines and labor cost increases, China must strengthen the supply front to really create new supply and efficiency dividends through reform. Reform on the supply front requires the improvement of capital-formation efficiency for the next five years.

Zhang Monan, Researcher, China Int'l Economic Exchanges Center via CHINA US Focus http://ift.tt/22cqyOI

Great Expectations for the Renminbi

The International Monetary Fund’s recent decision to add the Chinese renminbi to the basket of currencies that determine the value of its reserve asset, the Special Drawing Right, has captured headlines around the world. But the SDR itself has not exactly dominated discussions – much less transactions – since its creation in 1969. So does the decision really matter?

Zhang Jun, Professor, Fudan University via CHINA US Focus http://ift.tt/1IalP9F

Greater Expectations for G20 Hangzhou Summit

China’s new developmental strategy of “innovative, coordinated, green, open and sharing” economic growth is echoed in the theme for the G20 Hangzhou Summit, demonstrating that a new world economic growth strategy is gradually taking shape. Efforts will be focused on four elements: innovation, improvement upon global governance, promotion of international trade and investment as well as inclusive and concerted development.

He Yafei Vice Minister, Overseas Chinese Affairs Office of the State Council via CHINA US Focus http://ift.tt/1O7HOKn

Beijing and Washington Brace for Central Asia 2016

China has increased is trade, investment, and loans in Central Asia, and although China and the U.S. differ regarding democracy promotion, human rights, and Russian security activities in the region, they can work together on economic integration, countering terrorism, and combating drug trafficking.

Richard Weitz, Senior Fellow, Hudson Institute via CHINA US Focus http://ift.tt/1ZbmZWu

China-Africa Cooperation in the New Normal is a Blessing for Whole World

While Chinese demands for raw materials and bulk stocks such as oil and gas has decreased at the country’s economy evolves, Beijing continues to be vested in Africa’s development and trade with the region. That commitment is not only a boost for world peace, stability and development but supports the smooth implementation of America’s African strategy.

He Wenping, Senior Fellow, Chahar Institute via CHINA US Focus http://ift.tt/1ZbmZWo

Will the Advent of Justin Trudeau Revitalize Canada-China Relations?

As the U.S. moves to recalibrate its own relationships with a rising China on trade, the environment and security issues, its neighbors and allies are forging their own path on building economic, political, and cultural ties.

Hugh Stephens Senior Fellow, Asia Pacific Foundation of Canada via CHINA US Focus http://ift.tt/1Ot4PYI

New Vision for China’s Foreign Policy

Beijing’s global outlook is strategically forward-looking, inclusive and peaceful. It not only serves as the theoretical foundation for the development of China’s foreign affairs, but also helps inject fresh Chinese wisdom in building a new type of international relations.

Wu Zhenglong, Research Fellow, China Foundation for Int'l Studies via CHINA US Focus http://ift.tt/1MenmGD

How to Look at Today’s China

The first Chief Executive of Hong Kong SAR C.H. Tung argues that the success of modern day China is not accidental. While globalization contributes to China’s success, the country’s ability to ensure a smooth leadership transition and sound policy-making, the diligence of its people, as well as the expansion of freedom liberating the entrepreneurial and innovative spirit of its citizens are key internal reasons for what Tung describes as “China’s miracle.”

Tung Chee Hwa Chairman, China-United States Exchange Foundation via CHINA US Focus http://ift.tt/1lKsVaK

China’s Rejection of South China Sea Arbitration Is Lawful and Justifiable

While China’s action falls within common international legal practice, Manila’s unilateral pursuit of its claims violates the rule and spirit of its agreements with Beijing on how to resolve such disputes, and threatens the peaceful order of the region. China and other claimants are all developing countries with economic and social uplift as their main task, and should settle their disputes with direct negotiation as outlined in ASEAN agreements.

Wang Hanling Director of National Center for Ocean Affairs and the Law of the Sea via CHINA US Focus http://ift.tt/1TKvVhS

Cyber Strategies of Great Powers: US-China Interactions and Cooperation

Both countries should promise not to carry out attacks on financial institutions and entities that underpin the global economy, share information on third-party threats to the financial sector, encourage and incentivize the banking industry to make the strictest rules for ensuring information safety, and strengthen resilience against various forms of cyber attacks.

Lu Chuanying Research Fellow, Shanghai Institute for Int'l Studies via CHINA US Focus http://ift.tt/1NrJsXW

ASEAN Is Not Another EU

With the mix of development of ASEAN’s member countries, high levels of economic integration are a distant dream, and there are even more challenges for political and security policy coordination as well as socio-cultural fusion. But creation of the ASEAN Community is a big step forward in the integration process, and offers potential for its members and trade partners beyond.

Zhang Xuegang Deputy Director for Southeast Asia and Oceania Studies, CICIR via CHINA US Focus http://ift.tt/1TEBxu9

Strengthened China-Africa Cooperation: A Possible Escalation of China-U.S. Competition?

While new agreements mean the two countries areas of interest will more often overlap and even clash, there is also new impetus for cooperation, such as in preserving peace and security in Africa, developing the African market and building Washington and Beijing’s respective global leadership roles.

Mandy Peng via CHINA US Focus http://ift.tt/1NjSyWu

Getting Below Two Degrees Celsius

As long as booming economic growth is seen as the key to enduring legitimacy and political success, it may be politically impossible to avoid catastrophic global warming. There are no “American” or “Chinese” emissions. There are simply carbon emissions.

Ben Reynolds Writer and Foreign Policy Analyst in New York via CHINA US Focus http://ift.tt/1U6xreZ

Who Are Behind Volatile Global Oil Prices?

When achieving a stable global economy supercedes local and political interests, and a sustainable rebound in the global oil prices begins to emerge, this will soothe the chaos in the geopolitical sphere, the price wars among the oil-producing countries, the sluggish investment and consumption in the world economy, the capital market’s negative judgment about the future business growth and the “liquidity trap” in the monetary policy.

Sun Lijian Associate Professor, Fudan University via CHINA US Focus http://ift.tt/1RBD2ux

The Paris Attack’s Impacts on the U.S. Immigration Policy

The debate about unauthorized immigrants and legal immigrants has until now mostly focused on their impact on US employment and economic growth. However, after the Paris terrorist attack, the issue has evolved into a national-security issue, stirring arguments about America’s core values as a presidential election looms.

Chen Jimin Associate Research Fellow, CPC Party School via CHINA US Focus http://ift.tt/1QqqrcP

Central Asian Bazaars as A Soft Power of Beijing

China has emerged as the key trading partner of Central Asia—an accomplishment that is greatly due to Dordoi Bazaar’s success in the region. However, Beijing still has much work to do in order to improve its public image and shorten its soft power deficit in the Central Asian region.

Kemel Toktomushev Research Fellow, University of Central Asia via CHINA US Focus http://ift.tt/1Nd7OEE

After the Boom

'Development' is often spoken of as an end-in-itself, part of an inevitable march toward progress and modernity. What happens if we pause to take stock of the recent history of this development mantra--and examine who it benefits, who it excludes, and the price China and the United States pay for 'progress'?

Casey Walker Novelist, Instructor at Cooper Union in New York City via CHINA US Focus http://ift.tt/1XLPCqL

Fight Against Terrorism Needs Support from Small Sovereign States

The global community needs the participation of countries where the IS and other terror groups have made their bases, with the help and backing of the broad masses of Muslim people in the region. Outside force has proven to be inadequate to eliminate the violence and the root causes behind it, and serious nation-building is required.

Wu Zurong, Research Fellow, China Foundation for Int'l Studies via CHINA US Focus http://ift.tt/1NtCGUT

Jostling of Two Types of World Orders

Competing visions, one with the UN as its spiritual center and the US counterview with itself at the heart of a unipolar world, are vying to shape the world’s future. The US remains the sole superpower in the world, but its attempt to remain the driving force in global governance is doomed to fail in a changing, multipolar world.

Yin Chengde Research Fellow, China Foundation for Int'l Studies via CHINA US Focus http://ift.tt/1RoKIQL

China’s Online Financial Sector Comes of Age

Last month, China’s leaders revealed details of the 13th Five-Year Plan, which will guide the economy’s trajectory until 2020. Gone are the directives to expand industrial production at a breakneck pace that characterized previous five-year plans. Now, the focus is on achieving sustainable long-term growth, underpinned by domestic consumption, a stronger services sector, entrepreneurship, and innovation.

Liu Mingkang BCT Distinguished Research Fellow, Chinese University of Hong Kong via CHINA US Focus http://ift.tt/1YJtn79

Xi Jinping’s Anti-Corruption Crusade Reaches Africa

Since the 1990’s, Sam Pa subsequently amassed a huge fortune by helping shady African autocrats sell their petroleum and minerals to China. Sam Pa was most of all a source of “rents” for several dozen corrupt politicians and officials in the resource-rich areas of Africa. However, Sam Pa’s arrest last month has put an end to his corruption.

Robert I. Rotberg, Fellow, Woodrow Wilson Int'l Center via CHINA US Focus http://ift.tt/1SvHvx4

China on Course for Capital Account Liberalization

Now that the IMF has made the RMB its fifth reserve currency, new attention is being paid to the risks associated with cross-border capital flow. Managing these risks requires active participation in global governance and rules making, in particular global exchange rate reform, balance of payment adjustment regime, capital flow management and the reform and coordination of monetary and financial policies on a global scale.

Zhang Monan, Researcher, China Int'l Economic Exchanges Center via CHINA US Focus http://ift.tt/1Ttp3Ww

G20 Committed to Inclusive Development

The Group of 20 summit was held in Antalya, Turkey on 15-16 November. Leaders of the member states vowed to strive for a strong and inclusive growth of economy with enhanced investment as the growth engine. They pledged to increase inclusiveness in action so that the growth will benefit everybody.

Zhuang Yu, Liu Cun via CHINA US Focus http://ift.tt/1Nk8A1I

Playing the “Great Game” between U.S. and China in Burma

China and the U.S. are waging a bitter but so far nonviolent struggle in Burma. And the U.S. appears to be winning. For Burma, opening to the West was the answer; sanctions were eased, Western leaders rushed to visit, and business investment flowed in.

Doug Bandow, Senior Fellow, Cato Institute via CHINA US Focus http://ift.tt/1PqpVwI

What This APEC Summit Tells Us

The push for inclusive approaches and development reflects honest commitment to advancing economic cooperation with open mechanisms and flexible pathways. Non-economic issues such as the global fight against terrorism can be addressed with similarly pragmatic and honest approaches.

Yu Sui, Professor, China Center for Contemporary World Studies via CHINA US Focus http://ift.tt/1Iljit3

New U.S. Base Crisis in Okinawa Highlights Flaws in Obama’s “Rebalance” Strategy

In Tokyo, the Abe government is creating a new base in which the use of any U.S. air, sea, or ground forces will be unrestricted. Part of the Obama administration’s aim to maintain unchallengeable American military supremacy in East Asia, the construction of this base is already increasing tension throughout the region.

Stephen Harner, Former US State Department Official via CHINA US Focus http://ift.tt/21ob8Gy

Climate Financing Holds Key to Paris Conference

Historically, international development cooperation without financing arrangements often had no future. Although the Paris Conference opens now, there has been no systemic progress on climate financing. If developed countries fail to make clear arrangements on how to finance the $100 billion target, developing countries may well refuse to sign on the final agreement. It is therefore essential for the parties to reach a realistic and politically acceptable financing scheme.

Han Liqun Researcher, China Institutes of Contemporary Int'l Relations via CHINA US Focus http://ift.tt/1NXjxaf

Root Causes of International Terrorism

While outside interference in Middle Eastern affairs has done nothing to improve the employment situation, build strong and efficient political structure, and prompt a solid union against terrorism, a kind of regional security structure including major regional powers and external powers is urgently needed. In this regard, the U.S. can do a lot, and China’s Belt and Road Initiative should be another opportunity for a fresh approach.

Jin Liangxiang, Research Fellow, Shanghai Institute of Int'l Studies via CHINA US Focus http://ift.tt/1jn3rhu

South China Sea Arbitration and the Reach and Limits of International Law

Manilla’s arbitration requests in the South China Sea concern the standing of “historic rights”; the status of certain land features in these waters and the maritime entitlements they are capable of generating; and the lawfulness of certain Chinese land reclamation and law enforcement actions. Likely neither Beijing nor Manilla will walk away dejected, however.

Sourabh Gupta Senior Research Associate, Samuels Int'l Associates via CHINA US Focus http://ift.tt/1liPGll

APEC Manila: A Tale of Two Summits

Manila’s just-completed Asia Pacific Economic Cooperation (APEC) consisted of two parts. The official summit agreed on the need to fight terrorism, enhance economic growth, reduce poverty and increase climate change resiliency. Unofficially, the huge political gulf between the U.S. and China over the South China Sea was on display.

Stewart Taggart Founder & Principal, Grenatec via CHINA US Focus http://ift.tt/1NOisBA

International Counter-Terrorism Needs American Strategic Focus

The U.S. must shoulder the responsibility of uniting the civilized world against terrorists and extremists, leading an effort to set aside differences among allies so that they can focus on a whole-hearted effort to eliminate this global threat.

Fu Xiaoqiang Director, Institute of Security and Arms Control, CICIR via CHINA US Focus http://ift.tt/1IfcB6j

Taiwan Issue: Which Side Is Time on?

If the ‘92 Consensus is respected, which is already the bottom line for a healthy cross-strait relationship, interactions could advance in ways benefiting both sides, which will continue to enjoy the bonus of the peace and economic cooperation. Efforts to put distance between Taipei and Beijing, whether made by domestic or outside parties, can only damage both sides of the relationship.

Zhang Zhixin, Chief of American Political Studies, CICIR via CHINA US Focus http://ift.tt/1TbxmGp

APEC 2015: Change Is in the Air

APEC 2015 ended with a vow to combat terrorism, yet the Summit refused to be distracted from its true goal – economic development. In the coming years, the United States, China, and the Association of Southeast Nations must compromise if they truly want to invest in both regional peace and economic development.

Dan Steinbock, Research Director, India China and America Institute via CHINA US Focus http://ift.tt/1N5h4JY

South China Sea Should not be an ADMM-PLUS Issue

Washington’s move to politicize this meeting simply reflects the growing frustration of a US that doesn’t know how to deal with China. This time it has taken a wrong approach to confront China at the wrong occasion. The result was not helpful in improving relations among the countries concerned.

Zhou Bo, Honorary Fellow, PLA Academy of Military Science via CHINA US Focus http://ift.tt/1SgFJzP

Growth and Peace Dictate China’s National Security Policy

The Chinese government believes that development is key in solving all problems in China: Development is the foundation for security, and security is the guarantee for development while China seeks political solutions through peaceful consultations, opposes intervention into other countries’ internal affairs, and promotes the global governance system to be more equitable and reasonable.

Wen Bing Senior Researcher, Academy of Military Science via CHINA US Focus http://ift.tt/1PJhcFI

New Consensus Reached for the 13th Five-Year-Plan

Except for the disruptive years of the “cultural revolution”, the five-year planning system has given the country a unified strategic outlook, especially in the recent years of opening up and development. The current CPC Central Committee is steering the Chinese government, in the coming five years, to emphasize people’s livelihood and well-being, and to effectively promote economic transformation and consolidation.

Qin Xiaoying, Research Scholar, China Foundation For Int'l and Strategic Studies via CHINA US Focus http://ift.tt/1X29fQh

How Much Will China’s 13th Five-Year Plan Contribute to World Economy?

In the past, people measured China’s contribution to global economic growth through China’s GDP growth. But many factors in the GDP are the profits created by the foreign companies’ investments in China, so new ways of looking at the impact of China’s economy are in order.

Ding Yifan, Deputy Director, China Development Research Center via CHINA US Focus http://ift.tt/1PP598k

Continue to Strive for an Open Economy in the Asia-Pacific

A free-trade agreement for the Asia-Pacific would capitalize on the capabilities and the diversity of APEC countries. As broached by China in 1996, an open economy in the Asia-Pacific is a step toward common development, prosperity and progress for the whole region.

Wang Yusheng, Executive Director, China Foundation for Int'l Studies via CHINA US Focus http://ift.tt/1MWmrv6