Asia & the Pacific

Eric Rosenbach, Co-Director of the Belfer Center, testified on "China: Challenges for U.S. Commerce" before the U.S. Senate Committee on Commerce, Science and Transportation, Thursday March 7, 2019.

Information technology has generated tremendous wealth and innovation for millions, underwriting the United States' preponderance as well as China's meteoric rise. The costs of cyber espionage and harassment pale beside the mutual benefits of an interdependent, globalized economy. The inevitable frictions of cyberspace are not a harbinger of catastrophe to come, but rather a sign that the states inflicting them lack incentives to cause any real harm. Exaggerated fears of cyberwarfare or an erosion of the United States' competitive advantage must not be allowed to undermine the institutions and architectures that make the digital commons so productive.

For the first time in more than two decades, the United States faces a competitor that has the ability to inflict heavy costs on its air and naval forces. Maintaining stability in East Asia will therefore require significant changes in U.S. military capabilities and posture—changes that are likely to prove difficult while defense resources are scarce. Many of these changes will take years to implement, however, and China's military modernization shows no signs of slowing. The United States cannot afford to delay.

The United States' extended system of security commitments creates a set of institutional relationships that foster political communication. Alliance institutions are first about security protection, but they also bind states together and create institutional channels of communication. For example, NATO has facilitated ties and associated institutions that increase the ability of the United States and Europe to talk to each other and to do business. Likewise, the bilateral alliances in East Asia also play a communication role beyond narrow security issues. Consultations and exchanges spill over into other policy areas. This gives the United States the capacity to work across issue areas, using assets and bargaining chips in one area to make progress in another.

"China narrowed the gap in terms of gross domestic product (GDP) and will likely overtake the United States as the world's largest economy sometime between 2015 and 2040. What matters for national power, however, is not gross wealth, but net wealth—the wealth left over after people are clothed and fed. China's 1.3 billion people produce a large volume of output, but they also consume most of it immediately, leaving little left over for national purposes."

"...[F]oreign fighter mobilizations empower transnational terrorist groups such as al-Qaida, because war volunteering is the principal stepping-stone for individual involvement in more extreme forms of militancy. For example, when Muslims in the West radicalize, they usually do not plot attacks in their home countries right away, but travel to a war zone such as Iraq or Afghanistan first. A majority of al-Qaida operatives began their militant careers as war volunteers, and most transnational jihadi groups today are by-products of foreign fighter mobilizations."

"...[T]he Copenhagen Accord is "only" a political agreement, so it does not provide sufficient assurance that countries will take action. But how much difference does it make that the Copenhagen Accord is a political rather than a legal agreement? Obviously, political agreements do not require domestic ratification, so they provide a weaker signal of domestic commitment. But the legal versus non-legal form of an instrument makes less of a difference in other respects, such as judicial enforcement, since even when an agreement is legally-binding, there are relatively few opportunities for adjudication either internationally or domestically. And evidence from other regimes suggests that states often take non-binding agreements quite seriously and make significant efforts to implement them."

On September 28, North Korean state media announced that Kim Jong-il's third son, Kim Jong-eun, was promoted to the rank of four-star general just prior to the opening of the Workers' Party of Korea conference. Kim Jong-eun was later named vice chairman of the Party's Central Military Commission at the conference. These important developments follow the late August meeting between Chinese President Hu Jintao and North Korean leader Kim Jong-il in Changchun, near the Sino-DPRK border, which appears to have cleared the way for this Party conference. After the meeting, both countries' state media reported the leaders' support for the rising generation of the Party — a clear reference to Kim Jong-eun.