Asia & the Pacific

In an interconnected world, cyberattacks are becoming more frequent and sophisticated. Building resilience against this asymmetric threat is critical for countries to protect their economies, critical infrastructure, and democratic institutions. However, cyberattacks do not respect borders, and no country can address this threat alone. The strength and longevity of the transatlantic partnership between the EU and the U.S. presents a unique opportunity to address this strategic threat through international cooperation. Through an analysis of cyberwarfare in the ongoing war in Ukraine, this paper proposes policy recommendations to enhance transatlantic coordination and cooperation against current and future adversaries in a new era of strategic competition. Ultimately, a stronger transatlantic partnership is critical for protecting international democratic norms, building resilience against cyber threats, and strengthening global security and stability.

The U.S. is grappling with increasingly challenging transnational technology, policy, and security issues, which are complicated further by the economic and supply chain relationships with China. As the Biden administration and Congress look at developing policy solutions that will both reduce dependence on China and strengthen the United States’ resilience, it is important that these policies form a larger, holistic strategy that articulates the national security narrative clearly. 

Under the guidance of its self-defence nuclear strategy, China will continue to modernise its nuclear force in order to maintain a reliable second-strike retaliatory capability. China’s nuclear weapon modernisation has been responsive to the advances of military capabilities of other countries, particularly the US. As Hu Side emphasised, “The sole purpose for China to maintain a limited nuclear counterattack force is to deter a potential nuclear strike. However, the development of US missile defense and the long-rang strike capability with high accuracy to target mobile missiles is in practice to decrease the effectiveness of Chinese nuclear deterrence. Thus, it surely leads to Chinese attention."

Recently published documents, news reports, and other sources of open source information indicate that China is accelerating its current nuclear force modernization programme. It is clear that it is driven largely in response to the growing United States (U.S.) missile defense program, which China perceives as a threat to its minimum credible deterrence. While China is not altering its nuclear doctrine, it believes that it needs to enhance the reliability, survivability, and effectiveness of its retaliatory capability in response to a first-strike. In addition to expanding the size of its nuclear arsenal, it is enhancing its delivery capabilities, for example, by increasing the number of ICBMs and making them more sophisticated. It is building more Multiple Independently Targetable Reentry Vehicle (MIRV) warheads as well as a new class of ballistic missile submarines. China’s ongoing nuclear modernization aims to increase the survivability, reliability, safety, and penetration capability of its small nuclear arsenal and thereby assures a limited, reliable, and effective counterattack capability that will deter a nuclear first-strike. China’s nuclear modernization program will likely continue to be guided by its nuclear policy, which is characterized by a no-first-use pledge and a commitment to “minimum nuclear deterrence.” Finally, while China supports the total elimination of nuclear weapons, it does not believe it is in China’s interest to participate in discussions about nuclear disarmament until the U.S. and Russia reduce their arsenals to one thousand each, or lower.

Guangdong Province ranks first in economic output among China’s provinces and will play a major role in achieving China’s national climate-change goals. This paper examines the progress of Guangdong Province’s carbon dioxide emissions trading system (ETS) in reducing emissions; design features of the system; challenges it faces with regard to further development; and its relationship to China’s new national ETS.

China’s emissions trading system (ETS) for carbon dioxide (CO₂) will become operational in mid-2021. This paper describes the trading system’s history, design, rules governing implementation, and anticipated developments over the next decade. The ETS is expected to support China’s goals of reaching peak CO₂ emissions by 2030 and of achieving carbon neutrality by 2060.

The first half century of the nuclear age witnessed the gradual construction of a global nuclear order designed to mitigate nuclear dangers, inhibit arms racing, and prevent the spread of nuclear weapons to additional states. Spurred by the experiences, the dangers, the crises, the near misses, and the frightening risks on display in the early years of the Cold War, sustained efforts were made, in McGeorge Bundy’s vivid phrase, “to cap the volcano.” The time had arrived, Bundy wrote in 1969, for the two great nuclear superpowers “to limit their extravagant contest in strategic weapons,” a contest that had “led the two greatest powers of our generation into an arms race totally unprecedented in size and danger.” In the subsequent twenty-five years after Bundy’s appeal, an increasingly elaborate and institutionalized arms control process produced, with many ups and downs, a detailed web of constraints on the nuclear behavior of the superpowers. The articulated goal was to stabilize the superpower nuclear balance by reinforcing mutual deterrence. The vast nuclear arsenals of the superpowers, however, were not the only source of nuclear danger. In a world in which the number of states armed with nuclear weapons was slowly growing and many additional states had interest in acquiring such weapons or the technology to produce them, there was reason, as Albert Wohlstetter warned in 1961, to be “concerned with the enormous instabilities and dangers of a world with many nuclear powers.” Such a world—“life in a nuclear armed crowd”—Wohlstetter wrote in a later famous study, was widely believed to be “vastly more dangerous than today’s world.” The desire to prevent this unattractive world led to the negotiation of the Nuclear Nonproliferation Treaty (NPT), which entered into force in 1970, and to the subsequent development of an associated regime intended to create legal and technical barriers to the spread of nuclear weapons. Thus, in reaction to the major perceived dangers of the nuclear age, there emerged what Lawrence Freedman calls the “twin pillars” of the global nuclear order: mutual stability in the major nuclear rivalry and nonproliferation to inhibit or prevent the spread of nuclear weapons to additional states.

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.

The United States government must require private industry and research institutions to take this threat seriously and develop cybersecurity policy and practices that will result in multiple layers of cybersecurity protections. This layered approach will require combined efforts from both the government and private industry to create an overlapping protection scheme.