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A small group of Asia specialists at Stanford met for a retreat in the Wilbur Hall dorm complex in 1978, at the dawn of what later proved to be an era of transformative regional change, marked by the rise of Japan as an economic superpower and the early moments of China’s opening to the world.

By the end of the day, the seven scholars had set the groundwork for one of the university’s earliest interdisciplinary research organizations. Those early discussions led to the creation of the Asia/Pacific Research Center at Stanford–now the Walter H. Shorenstein Asia-Pacific Research Center (Shorenstein APARC)–an institution dedicated to exploring the dramatic changes in the world’s most dynamic region. This month the center, part of the Freeman Spogli Institute for International Studies (FSI), celebrated 30 years of connecting Asia and Stanford and helping to guide American policy towards the region.

The Center’s founders were among those gathered to reflect on this history of interdisciplinary cooperation among the university’s scholars. “We respected one another’s areas of expertise—we wanted to learn from one another,” recalled co-founder Daniel I. Okimoto, former Shorenstein APARC director and a professor of political science emeritus. “There was a kind of dynamic learning curve that we all moved along.” Okimoto, a Japan specialist, co-founded the center with John W. Lewis, William Haas Professor of Chinese Politics Emeritus and a FSI senior fellow.

Shorenstein APARC has evolved into a flourishing research center with five active research programs focusing on China, Japan, Korea, Southeast Asia, and comparative health policy in the Asia-Pacific. It also boasts a South Asia Initiative and a vibrant Corporate Affiliates Visiting Fellows Program, which has grown alongside the center.

Shorenstein APARC has brought hundreds of visitors to Stanford from Asia over the years for academic exchange and policy dialogue, and it sponsors an increasing number of activities in Asia, such as conferences at the Stanford Center at Peking University, the Kyoto International Community House, and the National University of Singapore.

“If Shorenstein APARC did not now exist, Stanford would need to create it to keep abreast of today’s critical international issues,” said Walter Falcon, a former FSI director and a senior fellow at the institute.

The center kicked off its celebrations with a Jan. 17 talk by U.N. Secretary-General Ban Ki-moon, and commemorated its anniversary with a May 2 symposium about the historic changes in the Asia-Pacific region over the past three decades.

"Shorenstein APARC's History," Directors' Panel, May 2

Originally established as the Northeast Asia-United States Forum on International Policy, Shorenstein APARC counts its “official” beginning as 1983, the year it came under the administration of Stanford’s International Strategic Institute, which is now FSI. The Center for International Security and Arms Control, its sister organization and today the Center for International Security and Cooperation, joined the institute at the same time.

In 1992, the Forum became the Asia/Pacific Research Center in recognition of the growing scope of U.S. interests in Asia. The center was renamed in September 2005 after Walter H. Shorenstein, a prominent San Francisco-area businessman and philanthropist, who helped insure the center’s long-term success by establishing a permanent endowment.

Speaking during the May 2 symposium, Okimoto said the founding group realized the benefits of looking at issues from a multidisciplinary perspective, and understood the need for their own views to remain flexible.

In the twilight of the Cold War, Shorenstein APARC’s earliest research focused on Northeast Asia, then one of the most strategically and economically important regions for the United States. The center initially explored such issues as high-tech competition and security collaboration with Japan and the emergence of China’s budding economic reforms.

Center research has responded to the impact of developments in the region on U.S. foreign policy, ranging from the growth of regional integration and a counter rise of nationalism, to the spread of democracy, the torrid pace of economic growth and the explosion of cross border movement of people, culture and ideas in Asia. Current initiatives are dedicated to understanding the implications of Asia’s unprecedented demographic change, reconciling the unresolved legacy of World War II memories in Northeast Asia, and finding solutions to the challenges posed by North Korea’s nuclear weapons program.

Shorenstein APARC maintains its own active publishing program, with books distributed through Brookings Institution Press, and a contemporary Asia series published in collaboration with Stanford University Press. Some of its most recent leading-edge publications have dealt with political and economic reform in China, the Fukushima nuclear disaster, and the issue of aging in Northeast Asia.

Center research initiatives come to life through talks and conferences, offering members of the Stanford community and public the opportunity to hear from prominent government figures, scholars, authors, journalists, business people and non-governmental workers. Its popular, long-running annual event series include in the Oksenberg lecture on U.S.-Asia relations, the Asia-Pacific Leaders Forum on critical regional issues and the Shorenstein Journalism Award, granted to journalists on both sides of the Pacific who are at the forefront of promoting mutual understanding.

In the past decade, Shorenstein APARC has hosted engaging talks by speakers ranging from top politicians such as President Jimmy Carter and South Korea’s first female president, Park Geun-hye, to key cultural figures including Clint Eastwood and Chinese independent media pioneer Hu Shuli.

Since its earliest days, the center has also regularly convened important policy-focused dialogues on a wide range of issues, bringing together scholars and government officials. Such closed-session dialogues include the early U.S.-Japan Congressional Seminars, which brought together members of the U.S. Senate and Japanese Diet, the current series of Stanford Kyoto Trans-Asian Dialogues, convened each year to address key issues in the Asia-Pacific region with global implications, and a long-running policy dialogue with South Korean scholars and policy makers.

Shorenstein APARC remains deeply committed to teaching and outreach. In collaboration with the School of Humanities and Science’s Division of International, Comparative and Area Studies, it supports a summer East Asia internship program for Stanford undergraduate and graduate students. It also regularly partners with the Stanford Program on International and Cross-Cultural Education on innovative Asia curriculum units for K-14 classrooms.

“The key to Shorenstein APARC’s success is its well-focused mission and ability to look to the future, enabled by the extraordinary people who take part in its research, publishing, and outreach activities,” said Gi-Wook Shin, the center’s current director and a senior fellow at FSI. “As we celebrate our thirtieth anniversary, we honor a vision turned into successful reality, and head toward a bright future of possibilities for continuing our work to foster lasting, cooperative relations with the countries of the Asia-Pacific region.”

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Shorenstein APARC directors past and present during the May 2 "Asia’s Rise" symposium (from l.): John W. Lewis, William Haas Professor of Chinese Politics Emeritus; Daniel I. Okimoto, professor of political science emeritus; Henry S. Rowen, co-director, Stanford Program on Regions of Innovation and Entrepreneurship; Andrew G. Walder, Denise O’Leary and Kent Thiry Professor; and Gi-Wook Shin, current Shorenstein APARC director. | Shorenstein APARC / Rod Searcey
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Abstract: Taiwan (the Republic of China) has been changing with the times. So has its diplomacy. Having served his country for more than 40 years in various important diplomatic posts under different administrations, Ambassador Chen is one of Taiwan’s most seasoned diplomats. He joins us to share his personal experience and perspectives of Taiwan’s diplomacy. It is a historical review, but also an attempt to explore the future. Ambassador Chen believes that the diplomacy of Taiwan is unique because of its unique background. Although it should be defined by its own people, the country has been heavily influenced by the Chinese Mainland and the United States of America. How to promote Taiwan’s interests while preserving its identity and dignity, and conducting the balancing exercises in an asymmetric international environment has always been the crux of diplomacy in Taiwan. Ambassador Chen’s insights will allow us a better understanding of diplomacy in Taiwan, its successes and frustrations and presenting a possible roadmap for the future.

C.J. Chen is the former Minister of Foreign Affairs of the Republic of China (1999-2000). He has also served as Taiwan’s de facto Ambassador to the United States (2000-2004) and European Union (2004-2006). Having spent most of his career in the Foreign Ministry, Mr. Chen is regarded as one of Taiwan’s most accomplished diplomats and an expert on U.S./Taiwan relations. He was educated in Taiwan, Britain, Spain and the US, and has extensive experience representing his nation in the United States. He began his first tour of duty in Washington, D.C. in 1971 and was later a key member of the team that negotiated with the United States government for the future relations between Taiwan and the U.S. after the U.S. switched diplomatic ties from the Republic of China (ROC) to the People’s Republic of China) in 1979. Mr. Chen was heavily involved in communicating with the U.S. Congress during the implementation of the Taiwan Relations Act (TRA) which still serves as the back bone and framework for U.S./ Taiwan relations. In addition to Mr. Chen’s diplomatic experience, he was also selected by the Kuomintang (KMT), to be a member of the Legislative Yuan, where served under both the blue (KMT) and green (DPP) administrations.

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Ambassador C.J. Chen Founder, Taipei Forum and Minister of Foreign Affairs, Republic of China (1999-2000) Speaker
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The structure of the Chinese economy changed dramatically between 2005 and 2009.  It changed from an export-investment leading economy to a domestic-demand leading economy.  Before 2004 China was a huge factory because of its cheap and abundant labor.  After 2010 it has become a huge market because of the rapid increase of their income level.

Not only the rapid growth of China’s GDP, but the rapid increase of the number of middle-class-income people in China whose GDP per capita surpass 10 thousand USD gave Japanese companies many business chances since 2010. Even under the worst political condition between Japan and China after Senkaku territorial dispute most of Japanese companies keep increasing their investment in China because Chinese local governments are so eager to invite the investment of Japanese companies. If Japan and China can realize the normalization of Sino-Japan relations, their win-win relationship should be accelerated.

The Xi Jinping’s administration started officially in March. Chinese ordinary people’s complaint against the Chinese government seems very strong mainly because the former administration put off the resolution of many important problems including the corruption of governmental officials, environmental deterioration, economic inequality. Xi Jinping’s administration should work on these difficult problems. In such a situation it is important for China to normalize Sino-Japan relations to enhance the economic stability.

 

Kiyoyuki Seguchi is the Research Director of the Canon Institute for the Global Studies. His research focuses on the Chinese economy and relations between the United States, China and Japan. He worked for the Bank of Japan from 1982 to 2009. He was the Chief Representative of the Representative Office of BOJ in Beijing from 2006 to 2008, the international visiting fellow at RAND Corporation (Los Angeles, CA) from 2004 to 2005. He received a bachelor’s degree in economics from the University of Tokyo.

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Kiyoyuki Seguchi Research Director Speaker Canon Institute for the Global Studies
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China is indeed an intriguing potential role model for developing nations in quest of rapid economic growth and successful poverty reduction. It has not only sustained an average annual GDP growth rate of 10 percent between 1980 and 2011, it has also been extraordinarily successful at reducing poverty, taking more than 650 million people out of extreme poverty over the period. These are two extraordinary feats. It is, however, often said that China is a unique case, with few transposable lessons due to its exceptional size and past. With Sub-Saharan Africa (SSA) at a time of economic takeoff and in need of sustained growth and massive poverty reduction, finding out if at least some lessons from the Chinese experience are transposable can be a useful contribution. There are no better researchers to inform us on this than Scott Rozelle and Jikun Huang. So, what they have to say is indeed important. In what follows, let me try to qualify and extend some of the lessons they are proposing.

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With a new government now in place, what are the prospects for financial reform in China, will interest rates become market-based, will the Renminbi become convertible, will banks begin to price capital economically? The talk explores these themes and discusses some of the obstacles to change that the new government faces.
 
At its core China's financial system is all about its banks. They are the provider of capital to all sectors of the Chinese economy, whether by outright loans or acting as both underwriter and principal investor in the country's growing bond markets. They operate now, as they have always operated, within the narrow framework of interest and currency rates set not by markets but by administrative fiat. For most of their history they have acted as simple conduits of capital based on an economic blueprint contained in a central plan. Some 15 years ago the entities then called specialized banks began to be restructured into what were meant to be commercial banks modeled after international, and particularly, US best practice. The outbreak of the global financial crisis not only called into question this ongoing effort, the massive economic stimulus had the effect of washing away the past decade long effort to transform what had been policy banks into more economically-oriented commercial banks. 
 
Please click here to download the talk slides. 
 
ABOUT THE SPEAKER

Dr. Carl Walter has contributed articles to publications including Caijing, the Wall Street Journal and the China Quarterly. He is also the co-author of Red Capitalism: The Fragile Financial Foundations of China's Extraordinary Rise (2012) and Privatizing China: Inside China's Stock Markets (2005).

Dr. Walter lived and worked in Beijing from 1991 to 2011, first as an investment banker involved in the earliest SOE restructurings and overseas public listings, then as chief operation officer of China's first joint venture investment bank, China International Capital Corporation. For ten years he was JPMorgan's China chief operating officer as well as chief executive officer of its China banking subsidiary.

Dr. Walter holds a PhD in political science from Stanford University, a certificate of advanced study from Peking University and a BA in Russian Studies from Princeton University.

 

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Carl Walter Speaker
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For more than thirty years, Shorenstein APARC’s Corporate Affiliates Visiting Fellows Program has offered a unique opportunity for affiliate organizations to nominate personnel to spend an academic year at the Center. Since 1982 — one year before the Center even existed — visiting fellows in the program have been sharing ideas, forming connections, and broadening perspectives, from the early years when a handful of visiting fellows were hosted at Galvez House to recent groups of close to twenty visitors each year meeting in Encina Hall’s Okimoto conference room. As a recent visiting fellow observed, “Academically, professionally, and personally, the different perceptions I have now will change the way I approach and understand my future work.”

The present cohort of visiting fellows represents organizations in China, India, Japan, and Korea, and each fellow brings years of practical experience and an international perspective that informs and enriches the intellectual exchange at the Center and at Stanford University. A majority of the current affiliate organizations have participated continuously in the program for the past five years, or even longer.

The program — ideal for mid-career managers who wish to deepen their knowledge on topics relevant to their work — has fellows participating in a structured program, which includes creating an individual research project; auditing classes; attending exclusive seminars; and visiting local companies and institutions. In addition to broadening their views through interaction with world-class scholars, visiting fellows can network with managers from different countries and corporations.

With such an array of activities, every day in the life of a visiting fellow is different, and every year differs as well. The core research goal remains constant, but the changing composition of each group — more female fellows, varied professional backgrounds, and new countries joining the mix — keeps the program exciting and unique. One of the earliest visiting fellows from one of the longest-standing affiliate organizations put it best: “Shorenstein APARC, Stanford University and, more broadly, the Silicon Valley are culturally unique, and this program offers a great opportunity to understand some of the ins and outs and different mindsets that make the region so successful.”

The wide variety of participants has possessed an equally broad range of interests. Over the past three decades, visiting fellows have pursued research on topics ranging from “The Deregulation of Telecommunications Industries in Japan and the United States” to “Northeast Asian Interdependence;” from “Corporate Governance & Energy Management” to “Advanced Tools for Complete Characterization of Biopharmaceutical Products” to “Risk Management in Large Commercial Banks in China.”

Once visiting fellows return to their home institutions, the Corporate Affiliates Program stays connected with alumni, allowing it to maintain close partnerships with not only its affiliate organizations, but also with all of the people who have passed through the program. The alumni network has grown to more than 350, with many individuals holding prominent positions in both the corporate and governmental sectors, working in countries around the world including Russia, France, Indonesia, and Australia. Recent alumni events held in locations like Seoul and Tokyo have kept the program in close contact even with those visiting fellows who came through the Center during the early years.

The Corporate Affiliates Visiting Fellows Program thrives by bringing together a diverse international group, and through the shared experiences of research and study at Stanford University. It creates long-lasting bonds and a new community — one that enriches the university and finds within itself new, constructive perspectives. Ultimately, the hope is that these experiences will over time contribute to stronger U.S.-Asia relations.



 

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» Large gallery: Highlights from Corporate Affiliates Program activities

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Over the course of a year, Corporate Affiliates visiting fellows learn about the United States, but also learn a lot from each other. Fellows from the 2011-12 academic year show their Stanford pride. Corporate Affiliates is Shorenstein APARC's longest-running program. | Rod Searcey
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Jean C. Oi was appointed to the Academic Advisory Council of the newly founded Schwarzman Scholars international scholarship program.

Oi, a political economist specializing in contemporary China, is director of the Stanford China Program, the William Haas Professor in Chinese Politics, and a senior fellow at the Freeman Spogli Institute for International Studies. She also serves as the Lee Shau Kee Director of the Stanford Center at Peking University.

The Schwarzman Scholars Program will annually support 200 students, from the United States and other countries, for a one-year master’s program at the prestigious Tsinghua University in Beijing. American financier Stephen A. Schwarzman endowed the program, which is slated to launch in 2016. FSI senior fellow and former Secretary of State Condoleeza Rice will also serve as an honorary member of the program’s Advisory Board.

“Knowledge about China is essential for the 21st century,” Oi said. “The Schwarzman Scholars Program promises to provide a much needed opportunity to bring together top graduates from around the world to gain a first-hand understanding of China’s society, economy, and politics. It is difficult to overstate the importance of such learning and friendships that will form among those who will include future leaders of the world.”

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Stanford China Program director Jean Oi. | Rod Searcey
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Speaker:    Dr. Carl E. Walter, Author of “Red Capitalism”

Moderator:  Michael Harris, President of Finance, Ambow Education

Until China began its highly successful reform effort in 1978, banks as institutions hardly existed, they were mostly a channel to provide funding to state enterprises. Yet after the economic reform in the 1980s, there was a rush of banking privatization and this enthusiasm to drive economic growth led to excessive bank lending and high rates of inflation in the 1990s. Following the Asian Financial Crisis and the collapse of Guangdong International Trust and Investment Co., a single party committee for each of the big state banks was created. The objective was to build relatively independent banking institutions with centralized management structures, thus forming special bond between the Party and Banks in China. Dr. Walter will discuss the modern evolution of China’s banks and the challenges in transiting to a more open, consumption-based model of economic development.

Carl E. Walter has worked in China′s financial sector for the past 20 years, participating in many of the country's financial reforms. He played a major role in China′s groundbreaking first overseas IPO in 1992 as well as the first listing of a state–owned enterprise on the New York Stock Exchange in 1994. He held a senior position in China′s first joint venture investment bank where he supported a number of significant domestic stock and debt underwritings for major Chinese corporations and financial institutions. More recently, he helped build one of the most successful and profitable domestic security, risk and currency trading operations for a major international investment bank. He holds a PhD from Stanford University and a graduate certificate from Beijing University.

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Carl E. Walter Author of "Red Capitalism" Speaker
Michael Harris President of Finance Moderator Ambow Education
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** We are currently experiencing some problems with our online RSVP system.  If you have any difficulty registering for this event, please send an email directly to the organizer, Meiko Kotani, via email meiko@stanford.edu. Thank you for your cooperation.  **



 

China has surpassed Japan to become the second largest economy in the world, and is able to strongly impact the global economy, politics and society.  But can China sustain and maintain relatively high economy growth in the future?  Can China surpass the United States to become the largest economy in the world?  Will the "China Growth Model" change?  These questions are now of great concern to the world.  Being a member of the management team of China's leading investment bank for ten years, Tatsuhito Tokuchi will speak on these themes from his China insider point of view.  He will also touch upon the future prospect of the China-Japan relationship and Chinese foreign diplomatic policy, which are the questions that people in neighboring countries are very much concerend about. 


Tatsuhito (Ted) Tokuchi is a Managing Director of CITIC Securities, the largest investment banking in China, and Chairman of CITIC Securities International, a subsidiary of CITICS in Hong Kong.  He is known as an only executive of a native of Japan for large indigenous Chinese companies.  Tokuchi was born in Tokyo in 1952.  In 1964, he went to Beijing with his parents, and there he spent thirteen years of his youth.  Tokuchi joined Daiwa Securities Comapny in 1980 in Japan, and during his twenty-year career at Daiwa, he engaged in investment banking and management of teams in Tokyo, New York, Hong Kong, Singapore and Beijing.  In 2002, he joined CITIC Securities Company as a head of the investment banking division.  Tokuchi received a B.A. in Chinese Literature from Beijing University in 1976, and an M.A. in East Asian Studies from Stanford University in 1985.

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Tatsuhito Tokuchi Managing Director of CITIC Securities in China, Chairman of CITIC Securities International in Hong Kong Speaker
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