China’s National Security Review: a tit-for-tat response?

China is gradually taking its place as a major regulator, exercising concurrent jurisdiction of the national security review along with the US and EU over high-profile cross-border mergers and acquisitions. The National Security Review (NSR) regulatory regime of foreign acquisitions has attracted significant attention recently with the establishment of China's counterpart to the Committee on Foreign Investment in the United States (CFIUS). Due to the intensified activities of sovereign wealth funds (SWFs) that are closely linked with states, CFIUS's broad discretion to deal with China's SWF-based investment may have a far-reaching impact on China's implementation of the newly enacted NSR regime. It is essential to design a mechanism that allows SWFs to maximise their positive attributes while safeguarding the apolitical integrity of the marketplace. Any disproportionate use of the NSR regime would inevitably bring about more unintended consequences, such as tit-for-tat protectionism. This represents an imminent threat to the tenuous recovery from the recent economic crisis, largely because of the increasingly intertwined and interdependent nature of the global financial markets. It is of utmost significance to evaluate the extent to which the updated legislation strikes a reasonable balance between preserving genuine national security interests and maintaining an open environment for investment.

The Bonds of Brotherhood: New Evidence of Sino-North Korean Exchanges, 1950-1954

Drawing on recently declassified documents from the archive of the Foreign Ministry of the People’s Republic of China (PRC), this article looks at China’s relationship with North Korea during and immediately after the Korean War. Although previous scholarship has touched on PRC–North Korean military ties during the war, this article is the first in-depth analysis of issues that are less well understood, notably China’s efforts to cope with a huge influx of refugees from North Korea, the PRC’s economic assistance during the war and in the early postwar reconstruction, and Chinese educational and ideological support for North Korean professionals and party cadres. The article shows that the extensive military coordination between Beijing and Pyongyang was only one way in which the war brought North Korea and the PRC into a closer relationship

Ash from Changbaishan Millennium eruption recorded in Greenland ice: Implications for determining the eruption's timing and impact

Major volcanic eruptions can impact on global climate by injecting large quantities of aerosols and ash into the atmosphere that alter the radiative balance and chemical equilibrium of the stratosphere. The Millennium eruption of Tianchi (Paektu), China/North Korea, was one of the largest Late Holocene eruptions. Uncertainty about the precise timing of the eruption has hindered the recognition of its climate impact in palaeoclimate and historical records. Here we report the compelling identification of the eruption's volcanic signal in Greenland ice cores through the association of geochemically-characterized volcanic glass, represented in by bimodal populations that compare with proximal material from the source eruption. The eruption most probably occurred in the AD 940?s, seven years after the Eldgjá eruption on Iceland. We examine the eruption's potential for climate forcing using the sulfate records from the ice-cores and conclude that it was unlikely to have had a global or extra-regional impact.

Gender and Welfare States in East Asia: Confucianism or Equality?

Is a Confucian cultural climate hostile to gender equality in families and public decision-making? What is the impact of gender equality legislation in East Asia? Approaches to these welfare regimes have ignored gender, while gendered accounts of welfare have neglected East Asia. Comparisons with Western welfare states show strong economies with life expectancy in Japan and South Korea above those of Western social democracies but in contrast there are extremely large gender gaps in employment, earning, unpaid work and parliamentary representation and conjoined with this low fertility rates and and minimal public social spending on childcare and early education.

In this volume, contributors address questions about gender equality in a Confucian context across a wide and varied social policy landscape, from Korea and Taiwan, where Confucian culture is deeply embedded, through China, with its transformations from Confucianism to communism and back, to the mixed cultural environments of Hong Kong and Japan. Overall, the collections asks: Has East Asia's rapid economic transformation been accompanied by social and cultural transformation?

China’s New Approach to CSR in Congo: Is the leverage turning to China?

China has been the world’s fastest growing economy in the past 30 years with its enterprises rapidly emerging and becoming leading players globally. In particular, the progressive integration into the international system has been spurred by China’s entry into the global trading regime of the World Trade Organization (WTO) in 2001. The 'go global' policy has been facilitating the rapidly growing engagement on the African continent of Chinese multinational companies (MNCs). As a promising tri-polar global economic entity, its growth of relations with Africa has been both unprecedented and impressive. As the Sino-Africa economic and business partnership surges forward, the matter of corporate social responsibility (CSR) is increasingly becoming an imperative ingredient for any successful business. It is noteworthy that responsible corporate citizens should take account of the impact of their investment on both economic and social arenas. However, it still remains uncertain what role Chinese MNCs have been playing in the continent’s sustainable development.
A Sino-Congo deal seems a positive way forward, accelerating the Democratic Republic of Congo’s (hereinafter referred to as Congo) regional economy, depressed due to years of war. Meanwhile, the escalating investment into Congo has raised controversies for its no-attachment policy, with increasing pressure imposed on China’s MNCs to take CSR more seriously. Particular concerns are focused on the multinationals’ inadequate environmental and human rights protection. The recent massive infrastructure investment is arguably perceived as a different interpretation of CSR, which has aroused a hot debate about whether China is heading for status as a responsible stakeholder in the international community. It is conducive to clarifying the paradoxical issue by addressing whether China’s recent approaches have the potential to facilitate CSR initiatives or hinder them in the long run.

China's Sovereign Wealth Funds: Problem or Panacea?

China’s impressive economic growth has led to the accumulation of massive financial assets. The emergence of sovereign wealth funds (SWFs), as a governmental investment device for its excessive foreign reserves, symbolizes a major rebalancing of economic power. With its investment portfolios drastically diversified for well-established financial institutions as well as some strategic sectors, a seminal debate seems centered on whether China’s SWFs are in furtherance of purely commercial or geopolitically strategic purposes. Under the sophisticated hard laws associated with international initiatives, it is unlikely that the SWFs-related investment would distort the global financial system, and genuinely threaten national security, which assumption may only exist at a hypothetical level. The potential protectionism would inevitably retard the world economy’s recovery, were it not to be proportionately addressed. A most significant necessity appears to be to strike a proportionate balance between sustaining the credibility of open investment environment and efficiently minimizing implications of SWFs political arenas.

The Veil of Kyoto and the politics of greenhouse gas mitigation in Australia

This paper investigates how the Kyoto Protocol has framed political discourse and policy development of greenhouse gas mitigation in Australia. We argue that ‘Kyoto’ has created a veil over the climate issue in Australia in a number of ways. Firstly, its symbolic power has distracted attention from actual environmental outcomes while its accounting rules obscure the real level of carbon emissions and structural trends at the nation-state level. Secondly, a public policy tendency to commit to far off emission targets as a compromise to implementing legislation in the short term has also emerged on the back of Kyoto-style targets. Thirdly, Kyoto’s international flexibility mechanisms can lead to the diversion of mitigation investment away from the nation-state implementing carbon legislation. A final concern of the Kyoto approach is how it has shifted focus away from Australia as the world’s largest coal exporter towards China, its primary customer. While we recognise the crucial role aspirational targets and timetables play in capturing the imagination and coordinating action across nations, our central theme is that ‘Kyoto’ has overshadowed the implementation of other policies in Australia. Understanding how ‘Kyoto’ has framed debate and policy is thus crucial to promoting environmentally effective mitigation measures as nation-states move forward from COP15 in Copenhagen to forge a post-Kyoto international agreement. Recent elections in 2009 in Japan and America and developments at COP15 suggest positive scope for international action on climate change. However, the lesson from the 2007 election and subsequent events in Australia is a caution against elevating the symbolism of ‘Kyoto-style’ targets and timetables above the need for implementation of mitigation policies at the nation-state level

Factors influencing the output of rural cataract surgical facilities in China: the SHARP study

Purpose: To identify factors associated prospectively with increased cataract surgical rate (CSR) in rural Chinese hospitals.

Methods: Annual cataract surgical output was obtained at baseline and 24 months later from operating room records at 42 rural, county-level hospitals. Total local CSR (cases/million population/y), and proportion of CSR from hospital and local competitors were calculated from government records. Hospital administrators completed questionnaires providing demographic and professional information, and annual clinic and outreach screening volume. Independent cataract surgeons provided clinical information and videotapes of cases for grading by two masked experts using the Ophthalmology Surgical Competency Assessment Rubric (OSCAR). Uncorrected vision was recorded for 10 consecutive cataract cases at each facility, and 10 randomly-identified patients completed hospital satisfaction questionnaires. Total value of international nongovernmental development organization (INGDO) investment in the previous three years and demographic information on hospital catchment areas were obtained. Main outcome was 2-year percentage change in hospital CSR.

Results: Among the 42 hospitals (median catchment population 530,000, median hospital CSR 643), 78.6% (33/42) were receiving INGDO support. Median change in hospital CSR (interquartile range) was 33.3% (-6.25%, 72.3%). Predictors of greater increase in CSR included higher INGDO investment (P = 0.02, simple model), reducing patient dissatisfaction (P = 0.03, simple model), and more outreach patient screening (P = 0.002, simple and multiple model).

Conclusions: Outreach cataract screening was the strongest predictor of increased surgical output. Government and INGDO investment in screening may be most likely to enhance output of county hospitals, a major goal of China's Blindness Prevention Plan.

Setting the Rules of the Game: Mega-Regionals and the Role of the WTO

Faced with a WTO in a state of paralysis, large developed trading nations have shifted their attentions to other fora to pursue their trade policy objectives. In particular, preferential trade agreements (PTAs) are now being used to promote the regulatory disciplines that were previously rejected by developing countries at the multilateral level. These so-called ‘deep’ or ‘21st century’ PTAs address a variety of issues, from technical norms, procurement, investment protection and intellectual property rights to social and environmental protection. Moreover, recently, developed countries have sought to negotiate PTAs which are large in scale, both in terms of economic size and geographical reach, including the so-called ‘mega-regional’ PTAs, such as the EU-US Transatlantic Trade and Investment Partnership, the EU-Japan PTA, the Transpacific Partnership, and the China-backed Regional Comprehensive Economic Partnership. These mega-regional PTAs are distinctive not just in terms of their sheer size and the breadth and depth of issues addressed, but also because some of their proponents readily admit that one of the central aims pursued by such agreements is to design global rules on new trade issues. In other words, these agreements are being conceived as alternatives to multilateral rule making at the WTO level. The proliferation of 21st century trade deals raises important questions concerning the continued relevance of the WTO as a global rule-making venue, and the impact that the regulatory disciplines promoted in such agreements will have on both developing and developed countries. This paper discusses the emerging features of an international trading system that is increasingly populated by large-scale PTAs and discusses some of the points of tension that arise from such practice. Firstly, it examines instances of horizontal tension resulting from the proliferation of PTAs, particularly the extent to which such PTAs represent a threat or multilateral trade governance. Secondly, it looks at an example of vertical tension by examining the manner in which the imposition of regulatory disciplines through trade agreements can undermine the ability of countries, especially developing countries, to pursue legitimate public interest objectives. Finally, the paper considers a number of steps that could be considered to address some of the adverse effects associated with the fragmentation of the international trading system, including the option of embracing variable geometry within the WTO framework and the need to develop mechanisms that provide flexibility for developing countries in the implementation of regulatory disciplines.

Impacts of FDI Renewable Energy Technology Spillover on China's Energy Industry Performance

Environmental friendly renewable energy plays an indispensable role in energy industry development. Foreign direct investment (FDI) in advanced renewable energy technology spillover is promising to improve technological capability and promote China’s energy industry performance growth. In this paper, the impacts of FDI renewable energy technology spillover on China’s energy industry performance are analyzed based on theoretical and empirical studies. Firstly, three hypotheses are proposed to illustrate the relationships between FDI renewable energy technology spillover and three energy industry performances including economic, environmental, and innovative performances. To verify the hypotheses, techniques including factor analysis and data envelopment analysis (DEA) are employed to quantify the FDI renewable energy technology spillover and the energy industry performance of China, respectively. Furthermore, a panel data regression model is proposed to measure the impacts of FDI renewable energy technology spillover on China’s energy industry performance. Finally, energy industries of 30 different provinces in China based on the yearbook data from 2005 to 2011 are comparatively analyzed for evaluating the impacts through the empirical research. The results demonstrate that FDI renewable energy technology spillover has positive impacts on China’s energy industry performance. It can also be found that the technology spillover effects are more obvious in economic and technological developed regions. Finally, four suggestions are provided to enhance energy industry performance and promote renewable energy technology spillover in China.