Asia & the Pacific

This report, by Maxwell Simon (MPP '23) and Jayaram Ravi (MPP '23), explores the drivers of setback and success that China has encountered in the process of developing dual-use and military-dedicated naval installations abroad. It looks at cases where China has considered or actively pursued military-dedicated installations to characterize Beijing’s general approach to overseas naval base acquisition.

This paper addresses the question of how the Chinese party-state chooses to exercise its economic, financial, diplomatic, military and soft power in the next 25 years will make a great difference to US national security and foreign policy, and to developments in the rest of the world. The paper makes three key points:

The core argument of this paper is that Beijing will likely aspire to pursue an empire-like position globally, not just seek an Asia-Pacific sphere of influence, and that this aspiration will founder. Achieving an empire-like position is both an imperative and is infeasible. The tensions between goal and reality will likely characterize China’s role in the world in coming decades and will be central to the difficulties of US-China relations. Second, there is heuristic value for US policymakers and analysts to consider a 20-year outlook on the rise of China that encompasses China’s pursuit of a global empire-like position. Third, paying close attention to how Beijing organizes its own government, corporate, and non-governmental organizations to seek an empire-like position will provide important signposts emerging tension and trends.

The Biden administration has emphasized the importance of alliances and core values of democracy in its foreign policy approach. Given this emphasis, public diplomacy—activities intended to understand, inform, and influence foreign audiences—should be considered an essential tool in achieving our long-term policy objectives in North Korea. Public diplomacy has the potential to spur domestic change in North Korea—change that could result in improved human rights conditions, leading to behavioral change in the Kim regime, and eventually denuclearization.

In this report, we propose a market reform pathway for Yunnan that is both feasible and applicable to address some of these challenges immediately, while aiming for a standard design based on well-documented international experience. Our proposal includes at its heart a pay-for-performance monthly capacity auction that can help cover revenue deficiencies in the energy market. Building on international experience with capacity markets, this approach provides incentives for availability when generation is needed most and is compatible with the adoption of a single energy market for all electricity resources. Out-of-market payments to cover stranded costs of certain firms can thus be minimized. Finally, engaging consumers in both these energy and capacity markets can create high-powered incentives to shift consumption to low-cost months and hours, benefitting the entire province.

This paper focuses on China and the potential role of renewable hydrogen in accelerating its transition to a low-carbon economy. Our research goal is to provide policymakers and other stakeholders the means to make informed decisions on technology innovation, policy instruments, and long-term investments in enabling infrastructure.

This report will address four questions in the Pacific NATO debate. First, is there a historical precedent for a Pacific NATO? This report does find a precedent in the Southeast Asia Treaty Organization (SEATO), though it was largely unsuccessful due to its lack of regional adoption, weak mutual defense provisions, and ultimately became tainted by the Vietnam War.

Second, would such an alliance be necessary given the plethora of existing multilateral partnerships in the region? While there is a broad multilateral landscape in the Indo-Pacific, there is currently no agreement that combines both the wide reach and deep obligations of a hypothetical Pacific NATO. However, the Quad and RIMPAC do bring together many of the key Indo-Pacific powers and serve as an important foundation for U.S.-oriented multilateral regional security.

Third, how could such an alliance be structured? This report examines three options: expanding NATO’s mandate beyond Europe, building on its Enhanced Opportunity Partner (EOP) program, and creating a new alliance system. It also uses the case of Montenegro’s NATO accession to generate a broad set of criteria for future membership.

And fourth, how would Indo-Pacific nations, including China, respond to such an alliance? This would be exceedingly difficult. China has significant economic leverage over even our closest allies, like Australia and Japan.

Intractable internal disputes abound, particularly between South Korea and Japan and four nations—Malaysia, the Philippines, Taiwan, and Vietnam—with competing claims in the South China Sea. Two of the United States’ most important partners in the region, India and Singapore, have a longstanding aversion to exactly this type of alliance system. And for newer partners, like Malaysia and Indonesia, the value proposition is even less clear. The Chinese are likely to respond to any attempts at a multilateral military alliance in its backyard with a whole-of-government effort to stop it. If that alliance includes Taiwan, it could result in even more aggressive action.

The evolving strategic dynamics in the Indo-Pacific are of paramount importance for the future of the rules-based international order. While the United States is redirecting strategic focus to the region as part of its Free and Open Indo-Pacific strategy, Europe is also stepping up its role—leveraging a strong economic profile, long-standing bilateral ties, and active engagement in various regional multilateral forums. The European Union (EU) and its member states can make distinct contributions to an open, transparent, inclusive, and rules-based regional order, though not necessarily always in lockstep with Washington.

The purpose of this paper is to analyze how China’s new power is reaching Europe, the challenges that it poses, and the European responses to this new reality. This process has to be examined in the context of the current strategic competition between China and the U.S. and its reflection on the transatlantic relationship.