Asia & the Pacific

Peaking great powers facing a slowdown in growth are likely to try to violently shake up the world. These findings amend classic theories of great power conflict. They help explain some of the most consequential geopolitical events in modern history. And they have ominous implications for contemporary Chinese foreign policy. 

The geopolitical implications of solar displacing oil as the world’s major source of energy are enormous. Why has the Middle East been a central arena in the “great game” for the past century? Because countries there have been the major suppliers of the oil and gas that powered 20th-century economies. If, over the next decade, photovoltaic cells that capture energy from the sun were to replace a substantial part of the demand for oil and gas, who will the biggest losers be? And even more consequentially: who will be the biggest winner?

For many, integrating “decarbonization” into public policy, corporate and financial strategies has become a requirement, not an option — yet, what happens when the critical link between climate stability and decarbonization breaks?

Capital Choices analyzes the creation of different SWFs from a comparative political economy perspective, arguing that different state-society structures at the sectoral level are the drivers for SWF variation. Juergen Braunstein focuses on the early formation period of SWFs, a critical but little understood area given the high levels of political sensitivity and lack of transparency that surround SWF creation. Braunstein’s novel analytical framework provides practical lessons for the business and finance organizations and policymakers of countries that have created, or are planning to create, SWFs.

Whether they regard it as competitive, cooperative, or confrontational, virtually all observers agree that the U.S.-China relationship is consequential. From cyber norms and AI to military tensions in the Taiwan Strait and the global struggle to turn the tide on climate change, how Washington and Beijing manage their shared future will shape the globe for decades to come. Through research and relationship-building, the Center is dedicated to helping the U.S. and China collaborate and compete without conflict.

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.

It is a critical first step that the financial policymakers of the United States have acknowledged the need for a CBDC, but that realization is not enough. 

Thucydides attributed the war that ripped apart the ancient Greek world to two causes: the rise of Athenian power—and the fear that this created in the established power, Sparta. Joseph Nye advises that in order to prevent a new cold or hot war, the United States and China must avoid exaggerated fears and misperceptions about changing power relations.

Both sides of the Atlantic are converging in their assessment of the challenges China poses to transatlantic prosperity and democracy. The U.S. and Europe must now build on this convergence to advance a common strategy toward China. Only together can the U.S. and Europe, alongside other democratic nations, maintain the necessary leverage in trade, technology and multilateral engagement to hold China accountable to a set of standards that protects democratic societies and contributes to global stability.

To develop a stronger transatlantic approach toward China, the Biden administration must work to rebuild trust in the transatlantic relationship and recommit to multilateral alliances and institutions abandoned by President Trump. Europe for its part must unite and take action where it sees China exploiting its critical industries and infringing on its values. A common position on China at the EU–level and across several influential EU member states is critical to making transatlantic cooperation on China feasible.

China announced it would launch a national carbon market in 2017, yet this policy is taking years to come into effect. What will it take for a carbon market to work in command-and-control China? This policy brief explores an understudied challenge—emissions accounting—and identifies potential opportunities that have arisen in the first phase of China’s national carbon market.