Asia & the Pacific

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.

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.

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.

President-elect Joe Biden’s decision to create a new cabinet-level position for climate-related issues — and to choose so prominent a figure as former Secretary of State John Kerry to fill it — demonstrates Biden’s sincerity over putting climate at the very center of U.S. foreign policy. It is easy to understate the importance of this appointment, given the flurry of czars created by most new administrations.

As the divergent experiences of the US and South Korea show, testing can be the difference between disease containment and catastrophe. Rather than relying on national governments to ensure the rapid development, production, and deployment of diagnostics during outbreaks, the world needs a global coordinating platform.

February 24th, 2020, in Cambridge, Massachusetts, Dr. Gesche Joost, Professor of Design Research at the Berlin University of the Arts and head of the Design Research Lab since 2005, discussed the digital divide and how it will shape social connectivity in an event moderated by Cathryn Clüver Ashbrook, Executive Director of the Future of Diplomacy Project and the Project on Europe and the Transatlantic Relationship, and Lauren Zabierek, Executive Director of the Cyber Project.

In an event co-hosted by the Project on Europe and the Transatlantic Relationship’s (PETR) and the Asia Center, Cathryn Clüver Ashbrook, Executive Director of the Future of Diplomacy Project and the Project on Europe and the Transatlantic Relationship, moderated a panel discussion on China’s technological rise and its impact on the US-EU relationship. The panel featured Joel Brenner, Senior Research Fellow at the Center for International Studies; Danil Kerimi, Head of Technology Industries Sector, Digital Economy and Global Technology Policy, the World Economic Forum; Meicen Sun, PhD Candidate in the Department of Political Sciences at MIT; and Daniel Weitzner, Founding Director of the Internet Policy Research Initiative. 

In this report, the authors conduct a benchmarking analysis for energy and CO2 emissions intensity of the steel industry among the largest steel-producing countries.

For decades, Singapore has been a premier refinery hub and gatekeeper between Asia and the Middle East, but its position is increasingly threatened as producer countries are shifting into the downstream activities that helped make Singapore the “Houston of Asia”. Oil and petrochemicals drive about one quarter of Singapore’s net exports. Greater competition in the global oil and gas value chain could take a heavy toll on the city-state’s national budget and economic growth prospects.

China’s complex relationship with the European Union is symbolised through the events of November 2019. Chinese President Xi Jinping flew to Greece almost as soon as French President Emmanuel Macron concluded his 3-day state visit to China on 6 November. China boasts a successful investment here — the Piraeus harbour of Athens.