-

In the aftermath of the Asian economic crisis and the Chinese accession to the WTO, the East Asian countries that have up until now been ambivalent towards regional trade integration have recently begun actively to pursue regional and bilateral trade agreements. The recent start of negotiations between Korea and Japan on a bilateral free trade agreement (FTA) has spurred much debate among many different groups and financial sectors in Korea. However, the contention of the various interest groups is not necessarily based on an economic rationale. Professor Bark will present the political issues that may emerge during the negotiation of the Korea-Japan FTA and some policy recommendations to reduce the negative effects of the FTA.

Taeho Bark is a professor at the Graduate School of International Studies at Seoul National University. From 1998 he has served as commissioner of the Korea Trade Commission. He has also served as Chair of the Investment Expert Group of APEC, Secretary for Economic Affairs, Office of the President, ROK, and as a consultant at the World Bank.

Philippines Conference Room

Taeho Bark Professor, Graduate School of International Studies Seoul National University
Conferences
-

Paul Neureiter has been intimately involved in the China semiconductor Value Added Tax case that was recently filed with the WTO. He was a key player in resolving the recent Chinese wireless LAN encryption standard, and he is deeply involved in intellectual property issues. Prior to his work at USTR, he served in the U.S. State Department in a variety of posts, including as an Economic Officer in the U.S. Embassy in Beijing and in the office of Chinese and Mongolian Affairs in Washington, DC.

Daniel and Nancy Okimoto Conference Room

Paul Neureiter Director for China Office of the US Trade Representative (USTR)
Conferences
-

Dr. Sáez's recent paper offers a new perspective on the relationship between ex ante barriers to entry and ex post second-generation reforms. Building upon theoretical insights from the literature on new entry, the paper will show why some types of barriers to entry exist in transitional economies. The paper will then show how market segmentation imposes structural barriers to entry will likely affect the level of political opposition that builds during the implementation of second generation reforms. In order to provide empirical support for this theoretical construct, the paper will specifically highlight the experience of financial services reform in India in order to develop an argument about the existing challenges and likely success of second-generation reforms that stemmed from initial barriers to entry.

Lawrence Sáez is a senior associate member at St. Antony's College, Oxford and he teaches international politics at the School of Oriental and Asian Studies in London. Prior to living in England, Dr. Sáez was an assistant research political scientist at the Institute of East Asian Studies and visiting scholar at the Center for South Asia Studies, University of California, Berkeley. He was also the associate editor for South Asia at Asian Survey. He holds a B.A. in political science from the University of California, Berkeley; an M.A.L.D. in international relations from the Fletcher School of Law and Diplomacy; and a Ph.D. in political science from the University of Chicago.

His research is focused around comparative political economy and fiscal federalism in developing countries. He is currently working on trying to understand how globalization has affected subnational economic growth and the provision of public goods in emerging markets. He is the author of Banking Reform in India and China (Palgrave MacMillan 2004).

Daniel and Nancy Okimoto Conference Room

Lawrence Sáez Visiting Fellow, Center for International Studies Speaker London School of Economics
Seminars
Authors
News Type
Commentary
Date
Paragraphs
John W. Lewis is professor emeritus of Chinese politics at Stanford University's Center for International Security and Cooperation and a frequent visitor to China and North Korea. He wrote this for the Mercury News.

Beijing tries to read mixed U.S. signals in Korea diplomacy By John W. Lewis

For the past year China has led the quest for a negotiated solution to the Korean nuclear crisis. It facilitated and hosted three-way talks with the United States and North Korea a year ago this week and two sessions of the six-party talks (adding South Korea, Japan and Russia) in August and February. Its officials crisscrossed the globe to explore potential areas of common interest and compromise and this week hosted North Korean leader Kim Jong Il to explore options for the beleaguered Korean Peninsula. Yet, in each of the formal talks, the Chinese have been discouraged by the minimal results. They are now questioning U.S. intentions toward Korea and, in the longer term, toward China.

Beijing considers the unchecked expansion of North Korea's nuclear weapons to be a real possibility, and its reasoning starts with the record of U.S. policies toward nuclear proliferation. That record, the Chinese argue, is mixed and often contradictory. As a result, China worries that Washington might continue to tolerate the program so long as Pyongyang did not cross key red lines, such as the transfer of nuclear materials to terrorists.

Whatever Beijing's past position on nuclear matters, many senior Chinese now regard nuclear weapons on their border to be a direct threat to their national security and suspect Washington of downplaying that danger. For them, it is no great leap to the conclusion that the unfettered growth of the Korean program might embolden others in Asia, including Taiwan, to acquire nuclear weapons despite verbal opposition from Washington. Beijing's leaders can easily imagine how that nightmarish turn of events would undermine the nation's drive toward modernization and end strategic cooperation with the United States.

Despite the fact that all parties at the six-party meeting in February endorsed the dismantling of the North's nuclear weapons program, the Chinese fear that the talks may be dead in the water. Following that meeting, they began to debate other ways to resolve the crisis. They had already reorganized the leadership team responsible for North Korean affairs, and that team had begun acting to prevent the worst case, including offering further inducements to Kim Jong Il this week. Whereas last fall the talk of deepening U.S.-China cooperation on Korea pervaded the news, now, especially after Vice President Dick Cheney's uncompromising stand on Korea and Taiwan last week, the reverse is occurring.

What China can do in these circumstances is quite limited. Its influence on North Korea is largely determined by what the United States does or doesn't do. By refusing to negotiate on a staged process leading to the eventual dismantlement of Pyongyang's nuclear weapons, Washington has tacitly allowed the North's program to proceed. It has rejected proposals for a temporary freeze, technical talks and any interim steps short of the unconditional and complete ending of the program. The result is virtual paralysis.

Beijing has been able to work with North Korea only when it could find areas of potential compromise between Washington and Pyongyang. It cannot or will not act

alone to exert pressure because this would jeopardize its influence on the North. Contrary to a widely circulated story, Beijing did not cut off energy shipments to North Korea for three days in 2003. Beijing would not take such a counterproductive action when its main influence with the North lies in the kind of quiet diplomacy being practiced this week with Kim Jong Il.

Many in Beijing are beginning to question whether there might be a more promising approach with Pyongyang. Should the Chinese, South Koreans and Russians conclude that making progress toward the common goal of the North's complete nuclear disarmament is out of reach, for example, they reluctantly might translate their joint offer of aid in February into a quid pro quo for a partial agreement, such as a limited freeze, that would allow the situation to stabilize. China could worry that such an independent action could endanger the common front with Washington. At the same time, it could calculate that the United States would be sufficiently pleased with any solution that halted the North Korean nuclear program.

None of these developments may come to pass, of course, but who could have imagined a year ago that Washington would have permitted the situation to deteriorate to the present point?

All News button
1

The conference seeks to take a fresh look at the geopolitical consequences of a major shift to natural gas in the coming decades; indeed by most estimates global consumption of gas will double by 2030. But in the ares of highest projected demand - North America, Europe, China, and South and East Asia - demand is expected to outstrip indigenous supply. This implies the need for a huge amount of investment in the expansion of cross border gas transport infrastructure to bring gas from supply centers - particularly Russia and the Middle East.

What are the geopolitical implications of a more gas-intensive world? What can the history of cross-border gas infrastructure investment tell us about the political, economic, and legal issues we are likely to face as we become more dependent of natural gas? Is there a "resource curse" for gas? What is the likelihood that gas producers form a cartel to control prices - a Gas OPEC?

Hosted by former Secretary of State James Baker, the Geopolitics of Gas: From Today to 2030 conference will bring together experts from industry and academia to discuss these questions and more. PESD and the Baker Institute will present results from historical case studies of major cross-border gas infrastructure investments and results from the first integrated global gas trade model; keynote speakers include the Minister of Energy and Mines for Algeria.

James A. Baker III Institute for Public Policy, Rice University

Conferences
-

A buffet lunch will be available to those who RSVP by 12:00 p.m. Monday, May 3 to Debbie Warren at dawarren@stanford.edu. Douglas H. Paal is the director of the American Institute in Taiwan, the unofficial instrument for U.S. relations with Taiwan. Previously, he was president of the Asia Pacific Policy Center (APPC), a nonprofit institution in Washington, DC, which advocated bipartisan policy in the promotion of trade and investment, as well as defense and security ties across the Pacific. Prior to forming the APPC, Mr. Paal was special assistant to President Bush for National Security Affairs and senior director for Asian Affairs on the National Security Council, where he also served in the Reagan Administration. Mr. Paal has worked in the State Department with the Policy Planning Staff and as a senior analyst for the CIA. He also served in the U.S. Embassies in Singapore and Beijing. He studied Asian history at Brown and Harvard Universities and the Japanese language in Tokyo. He has published frequently on Asian affairs and national security issues.

Philippines Conference Room, Encina Hall

Douglas Paal Director American Institute in Taiwan
Seminars
Authors
News Type
Commentary
Date
Paragraphs

For the past year China has led the quest for a negotiated solution to the Korean nuclear crisis. It facilitated and hosted three-way talks with the United States and North Korea a year ago this week and two sessions of the six-party talks (adding South Korea, Japan and Russia) in August and February. Its officials crisscrossed the globe to explore potential areas of common interest and compromise and this week hosted North Korean leader Kim Jong Il to explore options for the beleaguered Korean Peninsula. Yet, in each of the formal talks, the Chinese have been discouraged by the minimal results. They are now questioning U.S. intentions toward Korea and, in the longer term, toward China.

Beijing considers the unchecked expansion of North Korea's nuclear weapons to be a real possibility, and its reasoning starts with the record of U.S. policies toward nuclear proliferation. That record, the Chinese argue, is mixed and often contradictory. As a result, China worries that Washington might continue to tolerate the program so long as Pyongyang did not cross key red lines, such as the transfer of nuclear materials to terrorists.

Whatever Beijing's past position on nuclear matters, many senior Chinese now regard nuclear weapons on their border to be a direct threat to their national security and suspect Washington of downplaying that danger. For them, it is no great leap to the conclusion that the unfettered growth of the Korean program might embolden others in Asia, including Taiwan, to acquire nuclear weapons despite verbal opposition from Washington. Beijing's leaders can easily imagine how that nightmarish turn of events would undermine the nation's drive toward modernization and end strategic cooperation with the United States.

Despite the fact that all parties at the six-party meeting in February endorsed the dismantling of the North's nuclear weapons program, the Chinese fear that the talks may be dead in the water. Following that meeting, they began to debate other ways to resolve the crisis. They had already reorganized the leadership team responsible for North Korean affairs, and that team had begun acting to prevent the worst case, including offering further inducements to Kim Jong Il this week. Whereas last fall the talk of deepening U.S.-China cooperation on Korea pervaded the news, now, especially after Vice President Dick Cheney's uncompromising stand on Korea and Taiwan last week, the reverse is occurring.

What China can do in these circumstances is quite limited. Its influence on North Korea is largely determined by what the United States does or doesn't do. By refusing to negotiate on a staged process leading to the eventual dismantlement of Pyongyang's nuclear weapons, Washington has tacitly allowed the North's program to proceed. It has rejected proposals for a temporary freeze, technical talks and any interim steps short of the unconditional and complete ending of the program. The result is virtual paralysis.

Beijing has been able to work with North Korea only when it could find areas of potential compromise between Washington and Pyongyang. It cannot or will not act alone to exert pressure because this would jeopardize its influence on the North. Contrary to a widely circulated story, Beijing did not cut off energy shipments to North Korea for three days in 2003. Beijing would not take such a counterproductive action when its main influence with the North lies in the kind of quiet diplomacy being practiced this week with Kim Jong Il.

Many in Beijing are beginning to question whether there might be a more promising approach with Pyongyang. Should the Chinese, South Koreans and Russians conclude that making progress toward the common goal of the North's complete nuclear disarmament is out of reach, for example, they reluctantly might translate their joint offer of aid in February into a quid pro quo for a partial agreement, such as a limited freeze, that would allow the situation to stabilize. China could worry that such an independent action could endanger the common front with Washington. At the same time, it could calculate that the United States would be sufficiently pleased with any solution that halted the North Korean nuclear program.

None of these developments may come to pass, of course, but who could have imagined a year ago that Washington would have permitted the situation to deteriorate to the present point?

JOHN W. LEWIS is professor emeritus of Chinese politics at Stanford University's Center for International Security and Cooperation and a frequent visitor to China and North Korea.
All News button
1
-

Hawke will investigate SOE restructuring issues in the context of attracting foreign investment, through the prism of IMC's experience attempting to buy into Chinese companies on the nonperforming loan lists. IMC Global is the world's largest producer of phosphate and potassium fertilizers, about to merge with the fertilizer assets of Cargill to form a new company.

Prior to joining IMC in 1997, Hawke was a director at Salomon Brothers responsible for investment banking in China and, before that, a vice president of Citibank and Citibank's chief representative in China.

Philippines Conference Room, Encina Hall

Fred Hawke President IMC Asia, Ltd.
Seminars
-

Walter explores the transformation of China's state owned enterprises during the 1990s into corporations able to issue shares, raising billions of dollars internationally, and discusses the consequences of this policy reform. He is co-author of Privatizing China: The Stock Markets and their Role in Corporate Reform (John Wiley & Sons, 2003). Prior to leading JP Morgan?s Beijing office in 2001, he was managing director of China International Capital Corporation and chief representative of Credit Suisse First Boston.

Daniel and Nancy Okimoto Conference Room

Carl Walter Managing Director and Chief Operating Officer Speaker JP Morgan
Seminars
-

Dr. Nasr's talk will focus on the implications of change of the balance of power between Shi'as and Sunnis for regional politics in Iraq and for the emerging trends in Sunni militancy in the region.

Vali Nasr is a specialist on contemporary Islam and its relations to politics in the Muslim world. His recent work is focused on emerging patterns in Islamism, in particular with regard to Shi'i-Sunni sectarianism. He is the author of The Islamic Leviathan: Islam and the Making of State Power (Oxford University Press, 2001); Mawdudi and the Making of Islamic Revivalism (Oxford University Press, 1996); an editor of Oxford Dictionary of Islam (Oxford University Press, 2003). His works on political Islam and comparative politics of South Asia and the Middle East has been published in a number of journals including, the New York Times, Comparative Politics, Asian Survey, Daedalus, Middle East Journal, and International Journal of Middle East Studies, as well as in numerous edited volumes on the Middle East, South Asia, political Islam and comparative politics. His work has been translated into Arabic, Indonesian, Chinese, and Urdu. Dr. Nasr has been the recipient of fellowship grants from the John D. and Catherine T. MacArthur Foundation, the Harry Frank Guggenheim Foundation, and the Social Science Research Council.

Dr. Nasr earned his degrees from the Massachusetts Institute of Technology (Ph.D., 1991), the Fletcher School of Law and Diplomacy (MALD, 1984), and Tufts University (BA, 1983).

Daniel and Nancy Okimoto Conference Room

Vali Nasr Professor, Middle Eastern and South Asian Affairs Department of National Security Affairs, Naval Postgraduate School, Monterey, CA
Seminars
Subscribe to China