Asia & the Pacific

It seems unlikely that Russia will again possess the resources to balance U.S. power in the same way that the Soviet Union did during the four decades after World War II. But declining powers merit as much diplomatic attention as rising ones do. Joseph S. Nye worries that the United States lacks a strategy to prevent Russia from becoming an international spoiler.

Stephen Walt asks what makes for a good ally? What are the qualities that make a foreign power an especially valuable partner and therefore justifies a U.S. security commitment? After all, not all allies are created equal, and the value of any commitment is likely to wax or wane over time.

In its new “Say More” newsletter, Project Syndicate interviewed Jeffrey Frankel about the recent U.S. decision to label China a "currency manipulator" which has been roundly criticized. 

The idea of a Swiss sovereign wealth fund (SWF) which could use a part of the country’s massive reserves for investments arose after Switzerland had established in 2011 its currency link to the Euro. Since then various sovereign wealth options have been discussed, from a SWF with a savings mandate to a fund with a strategic investment mandate, a private equity-type fund that invests in technology start-ups and protects against hostile foreign takeovers of strategic companies.

In August 1936, U.S. President Franklin D. Roosevelt gave a speech that openly denounced war in a way that is almost entirely absent from political discourse today. America's contemporary disinterest in peace isn't just morally dubious; it's strategically myopic, writes Stephen Walt.

The trade war between the United States and China is heating up again, with U.S. President Donald Trump abruptly announcing plans to impose a 10-per-cent tariff on the US$300-billion worth of imports from China that he had so far left untouched. The Chinese authorities then allowed their currency, the renminbi, to fall below the symbolic threshold of seven yuan for every U.S. dollar. The Trump administration promptly responded by naming China a “currency manipulator” – the first time the U.S. had done that to any country in 25 years. Pundits declared a currency war, and investors immediately sent global stock markets lower.

The US-China trade war heated up in the first week of August.  On August 1, Donald Trump abruptly announced plans to impose a 10 % tariff on the remaining $300 billion of imports from China that he had not already hit with earlier tariffs.   The Chinese authorities then allowed their currency, the renminbi (RMB), to fall in value below the highly visible line of 7.0 RMB/$.  The US Administration promptly reacted on August 5 by naming China a “currency manipulator” — the first time any country had been given that designation in 25 years.   Pundits declared a currency war, while investors responded by immediately sending stock markets down.

Stephen Walt elaborates on five important lessons from the Cold War,  which should be guiding contemporary U.S. foreign policy. He also explains how President Donald Trump has been ignoring or violating every one of them.

Stephen Walt writes that critics of offshore balancing claim a more restrained U.S. foreign policy will breed insecurity.  He then debunks five of their arguments.

The New York Times' David Brooks thinks Americans' foreign-policy ideas "stink." Stephen Walt writes that public discontent with U.S. foreign policy is well justified.