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Academic achievement in middle schools in rural China remains poor for many students. This study examines whether programmes and interventions can improve academic achievement by reviewing rigorous experimental evaluations of nine programmes (11 interventions) on 47,480 rural middle school students in China. The results find none of the interventions improved academic achievement. Moreover, we find no evidence for heterogeneous treatment effects by student gender, age or previous academic achievement. These results may be due in part to the academically-demanding nature of the middle school curriculum, which is applied universally to students with varying levels of cognitive ability.

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Journal of Development Effectiveness
Authors
Prashant Loyalka
Scott Rozelle
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Over the past decade, there has been an extremely rapid increase in bilaterally financed infrastructure projects globally, as part of China’s Belt and Road Initiative (BRI). The BRI is a broad initiative involving many Chinese state-owned enterprises to develop transport and other infrastructure across the developing world, with bilateral financing from either the China Development Bank (CDB) or the China Export–Import Bank (CEXIM). More recently, many large BRI projects have undergone renegotiations with borrower nations or caused financial distress. This provides a useful opportunity to evaluate the BRI through the lens of the obsolescing bargain model. The obsolescing bargain has historically been used to describe the relationship between multinational corporations (MNCs) and the developing countries they invest in. For large capital investments paid off over a long operating period, such as infrastructure projects, the obsolescing bargain describes a shift in leverage from MNCs to the host nation once the capital investment is complete, often leading to renegotiation or even expropriation. This study examines the BRI through the lens of the obsolescing bargain to evaluate the practices of China’s state-owned enterprises (SOEs) and policy banks in mitigating political risk.

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A study examining the BRI through the lens of the obsolescing bargain to evaluate the practices of China’s state-owned enterprises (SOEs) and policy banks in mitigating political risk.

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Oxford Review of Economic Policy
Authors
Michael Bennon
Francis Fukuyama
Number
Issue 2, Summer 2022, Pages 278–301
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Join the CSIS Trustee Chair in Chinese Business and Economics and the Stanford Center on China’s Economy and Institutions (SCCEI) for the launch of the second feature of their collaboration, Big Data China, on May 27, 12:00-1:15 pm ET. Our latest digital report, “How Inequality Is Undermining China’s Prosperity,” written by CSIS Fellow Ilaria Mazzocco, highlights the path-breaking work of Stanford scholars Scott Rozelle, Hongbin Li, and their colleagues. By analyzing data on inequality and its sources, the feature shows how trends in China’s labor market, educational attainment, automation, and rural employment are conspiring to harden inequality, which could hurt prospects for growth and undermine political stability. These developments will complicate how the United States should address the China challenge in the years ahead.

Following a presentation by Scott Rozelle of Stanford University on the key findings of the analysis and its implications for the Washington policy community, Trustee Chair Fellow Ilaria Mazzocco will moderate the panel discussion and questions from the audience. The distinguished panelists for the event include Mary Gallagher of the University of Michigan, Mary E. Lovely of the Peterson Institute and Syracuse University, and Martin K. Whyte of Harvard University.


Watch the Recording:

FEATURING

Scott Rozelle 
Helen F. Farnsworth Senior Fellow, FSI and SIEPR, 
& Co-director, SCCEI,  
Stanford University
Mary Gallagher 
Professor, Democracy, Democratization, and Human Rights, University of Michigan
Mary E. Lovely 
Senior Fellow, Peterson Institute 
for International Economics; 
Professor Emeritus, Department 
of Economics, Syracuse University
Martin K. Whyte 
Professor Emeritus, International Studies and Sociology, Harvard University
Ilaria Mazzocco 
Fellow, Trustee Chair in Chinese Business and Economics
 

 

EVENT PARTNERS
 

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Virtual Livestream 

Mary Gallagher
Mary Lovely
Ilaria Mazzocco
Scott Rozelle
Martin Whyte
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The objectives of this paper were to examine the risk of depression and depressive symptoms among Han and minority children and adolescents in rural China, the links between academic performance and depressive symptoms, and the prevalence of these links among specific subgroups. A total of 8392 4th, 5th, and 6th grade students at 105 sample rural schools in eight low-income counties and districts in a prefectural-level city in Southwestern China were randomly selected using a three-step sampling strategy. A total of 51% of the sample were female (SD = 0.50), and the age range was 7 to 19 years (mean = 11.35 years; SD = 1.05). Using the Patient Health Questionnaire 8-item depression scale, the prevalence of depressive symptoms in the sample was assessed, while data on students’ academic performance (standardized math test) and demographic characteristics were also collected. Our results show that the rates of major depression were 19% for Han students, 18% for Tibetan students, and 22% for Yi students; the rates of severe depression were 2% for Han and Tibetan students, and 3% for Yi students. Yi students were at significantly higher risks for major and severe depression than Han students. We conducted multivariate regression and heterogeneous analyses. Academic performance was negatively and significantly correlated to depressive symptoms. Across the whole sample, students with lower math scores, minority students, boys, younger students, and students with migrant parents were most vulnerable to depressive symptoms. The heterogeneous analysis suggests that among poor-performing students, subgroups at higher risk for depression include boys, non-boarding students, and students whose mothers had graduated from high school or above. These findings indicate a need to improve mental health outcomes of rural Han and minority primary school students, targeting academic performance for possible intervention.

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International Journal of Environmental Research and Public Health
Authors
Scott Rozelle
Yue Ma
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SPICE is currently accepting applications for the Fall 2022 term of the China Scholars Program, an intensive, college-level online course on contemporary China for U.S. high school students. The China Scholars Program (CSP) is open to rising 10th, 11th, and 12th graders across the United States.

Stanford University China Scholars Program for high school students
Fall 2022 session (late August through December)
Application period: April 25 to June 15, 2022

Designed to provide high-achieving high school students a rich and comprehensive online learning experience, the CSP offers college-level instruction provided by scholars from Stanford University and other top-tier colleges and universities that is unparalleled in other distance-learning courses for high school students. During the synchronous virtual classroom sessions, students engage in live discourse with Stanford professors, leading scholars from other universities and organizations, and former diplomats. This unique opportunity to learn directly from noted scholars at the cutting edge of their fields is a distinctive element of the China Scholars Program. Students who complete the course will be equipped with a rare degree of expertise about China and international relations that may have a significant impact on their choice of study and future career.

“This program has been one of the most enriching and fun ones I’ve gotten the chance to participate in,” said Sana Pandey, a recent alum of the program. “I’m beyond grateful to have had the opportunity. Especially during the chaos of COVID and the initial phases of quarantine, CSP was an amazing anchor and a way to make sure I was intellectually engaged while the rest of the world seemed to stagnate. I honestly loved every second.”

More information on the China Scholars Program is available at http://chinascholars.org. Interested high school students should apply now at https://spicestanford.smapply.io/prog/china_scholars_program/. The deadline to apply is June 15, 2022.

To stay updated on SPICE news, join our email list or follow us on Facebook, Twitter, and Instagram.


The China Scholars Program is one of several online courses offered by SPICE, Stanford University.


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arches at Stanford University
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High School Students in China and the United States Collaborate

Students in SPICE’s China Scholars and Stanford e-China Programs meet in virtual classrooms.
High School Students in China and the United States Collaborate
Santiago Calderon at Harvard University for debate tournament
Blogs

How SPICE’s China Scholars Program Accelerated My Love for International Relations

The following reflection is a guest post written by Santiago Calderon, an alumnus of the China Scholars Program, which is currently accepting applications for the Fall 2021 course.
How SPICE’s China Scholars Program Accelerated My Love for International Relations
group of students taking a photo in front of a building
Blogs

China Scholars Program: East Asia Through a STEM Lens

The following reflection is a guest post written by Mallika Pajjuri, an alumna of the China Scholars Program and the Reischauer Scholars Program. She is now a student at MIT.
China Scholars Program: East Asia Through a STEM Lens
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Oriental Pearl Tower; photo courtesy zhang kaiyv/Pexels
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Jean C. Oi
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This commentary was first published in The Hill.


The future sustainability of the Earth cannot do without the coordinated actions of its two largest carbon polluters — the United States and China.

The most recent highlight in that realm is the U.S.-China Joint Glasgow Declaration on Enhancing Climate Action in the 2020s at the UN climate change conference COP26 in November 2021. The joint statement, which came during a turbulent time in U.S.-China relations, was both surprising and valued. The declaration reaffirms both nations’ commitment to “tackling [climate change] through their respective accelerated actions in the critical decade of the 2020s, as well as through cooperation in multilateral processes.”

The declaration also calls for “concrete actions in the 2020s to reduce emissions aimed at keeping the Paris Agreement-aligned temperature limit within reach,” including in the areas of methane reduction, decarbonization and forest protection. 

While the declaration represents a promising step forward and offers reassurances about new momentum for sustained future cooperation, it offers few details regarding concrete plans, nor the opportunities and challenges to enact and implement those plans.

Last fall, we at Stanford University partnered with Peking University to convene a series of discussions on a broad range of themes around U.S.-China collaboration on climate change, such as global sustainable finance, corporate climate pledges, as well as opportunities and challenges for the acceleration of decarbonization in both countries in general — both nationally and by sector — with particular emphasis on power, transportation and industry. The outcomes and insights were synthesized in a report on how to accelerate decarbonization in China and the United States, in which we highlight two urgent recommendations to facilitate constructive cooperation between both nations as they tackle growing environmental challenges.


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U.S.-China scientific collaboration in fundamental research can be an invaluable tool to build both nations’ capacity in addressing climate change, including protecting supply chains essential for meeting pledged goals, amid rising geopolitical tensions.

First, we need open-science research and development (R&D) collaboration.

This must be the case regardless of the politicized environment surrounding U.S.-China relations. Rigorous R&D programs are the foundation of innovative technologies, which can greatly accelerate the energy transition while minimizing disruptions if applied at scale.

Some promising areas for R&D include, but are not limited to, energy-efficient buildings utilizing heat pumps; low-carbon cement and construction; low-carbon agriculture, carbon capture, utilization, and storage (CCUS); power grid infrastructure upgrades; large-scale and long-duration energy storage; and methane leakage prevention and removal. 

Unfortunately, U.S.-China cooperation on R&D has been thwarted due to Chinese companies’ theft of proprietary U.S. intellectual property. According to estimates by the National Bureau of Asian Research, U.S. companies incur a loss of between U.S. $225 billion to $600 billion every year due to intellectual property infringement in China. Piracy of intellectual property is of grave concern and must be curbed. 

However, the two countries need to realize the crucial difference between fundamental research and proprietary research. Proprietary research, by definition, is owned and must receive its due protection. By contrast, fundamental or basic research is intended to be “out there” for all to learn and build on in advancing the understanding or prediction of phenomena. Therefore, fundamental research should be pursued under terms of academic freedom, especially within universities.

U.S.-China scientific collaboration in fundamental research can be an invaluable tool to build both nations’ capacity in addressing climate change, including protecting supply chains essential for meeting pledged goals, amid rising geopolitical tensions. 

Common terminology and standards will provide a basis for carbon legislation. Having clearly stipulated standards and procedures can also make implementation easier and more straightforward.

Second, we need to be explicitly cognizant of political and institutional constraints.

This is necessary in order to translate promises into progress while protecting social benefits and their equitable distribution amid the green energy transition. As noted in both the joint declaration and our report, bilateral dialogues so far remain very high-level. We need future discussions and workshops at the sectoral and local levels to develop concrete plans. In enacting and implementing concrete plans, political and institutional constraints can pose real obstacles, as demonstrated by China’s past and ongoing efforts to control air pollution.

Hence, strong support from both national and local governments will be critical. As a first step, we need to gain a good understanding of who the relevant actors are in both policymaking and implementation and the incentives they face.

In this period of transition when there are still regional mismatches between energy supply and demand, it is too easy to let short-term needs push climate mitigation goals to the bottom of the barrel to address regional energy shortages. In both countries policymakers and those charged with implementation face multiple and sometimes conflicting goals. The prioritization of goals is shaped by incentive structures. Fostering incentive structures conducive to decarbonization is particularly important during the transitional period when consensus around goals and priorities is less clear. 

Furthermore, it is time to standardize standards. A recurring theme across our discussions is the need for shared, clearly specified regulatory frameworks and standards across both nations. Harmonizing standards will expedite trade, validation, accounting, climate pledges and environmental, social and corporate governance (ESG) evaluation.

Only if there is standardization can organizations be required to follow unified disclosure practices for making available important information like the amount of carbon emitted. We need to make and implement more legislation to encourage a faster pace of decarbonization, and having unified terminology and standards is conducive to both effective carbon legislation and policy implementation. Common terminology and standards will provide a basis for carbon legislation. Having clearly stipulated standards and procedures can also make implementation easier and more straightforward. 

Last but not least, we are hopeful about the future of U.S.-China cooperation on climate change and believe that universities can play a significant role in the global energy transition. Universities are often the birthplaces of innovative technology, training grounds for talent from across the globe, as well as conveners of bilateral and multilateral dialogues. We hope the governments on both sides of the Pacific will work together to hammer out the needed details to build the momentum and make a real impact in the fight against global climate change. 


Shiran Victoria Shen is the W. Glenn Campbell and Rita Ricardo-Campbell national fellow at Stanford University’s  Hoover Institution, as well as an assistant professor of environmental politics at the University of Virginia. 

Jean C. Oi is the William Haas professor of Chinese politics, senior fellow at the Freeman Spogli Institute of International Studies, as well as the director of Stanford University’s China Program. She is also the Lee Shau Kee director of the Stanford Center at Peking University. 

Yi Cui is the director of Stanford University’s Precourt Institute for Energy, as well as professor of materials science and engineering. He is a senior fellow at the Woods Institute for the Environment, and professor, by courtesy, of Chemistry, Stanford University. 

Liang Min is managing director of the Bits & Watts Initiative of the Precourt Institute for Energy at Stanford University. 

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Cover of the report 'Accelerating Decarbonization in China and USA through Bilateral Collaboration'
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Collaborating Against Carbon: Stanford and Peking University Partner on Decarbonization Research

A report on China and the United States' decarbonization and carbon neutrality proposes areas of collaboration on climate change action, global sustainable finance, and corporate climate pledges. The report is the product of roundtables with participants from the Stanford Precourt Institute for Energy, SCPKU, APARC's China Program, and Peking University’s Institute of Energy.
Collaborating Against Carbon: Stanford and Peking University Partner on Decarbonization Research
Vladamir Putin and Xi Jinping shake hands.
Commentary

Beijing Is Used to Learning from Russian Failures

The invasion of Ukraine is offering useful lessons for the PLA.
Beijing Is Used to Learning from Russian Failures
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Benxi steel plant in Liaoning Province, China.

Andreas Habich via Wikimedia Commons
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There are multiple, concreate areas for constructive cooperation between the United States and China as they tackle growing environmental challenges.

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Using a three-wave longitudinal survey conducted in 815 households in rural Western China, this study aims to examine the association between parental self-perception and early childhood development and the mediation effect of parental investment on the association between parental self-perception and child development when the sample children are at different ages in the early childhood (18–30, 22–36, and 49–65 months). The results demonstrate that parental self-perception are positively and significantly associated with child social-emotional development in all three ages of childhood (from 18 to 65 months). Positive and significant association between parental self-perception and child cognitive development is found in the ages from 22 to 65 months. In addition, findings of this study show that parental investment plays a mediating role in the association between parental self-perception and child cognitive development. The study calls on policymakers to help to strengthen parental self-perception and parental investment related to early childhood development, which should result in better child development in rural China.

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Frontiers in Public Health
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Scott Rozelle
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Oriana Skylar Mastro
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This commentary first appeared in Foreign Policy.

Russia’s invasion of Ukraine has been a double disaster for President Vladimir Putin, as he faces a poorly performing military combined with an inability to shield his country from economic punishment. Both of these possibilities historically have also been sources of apprehension for the Chinese Communist Party (CCP). But China’s leadership turned its anxiety into action about 10 years ago, deliberately working to fix many of the problems and minimize the risks currently plaguing Russia in Ukraine.

One result is that the Chinese military is more likely to perform well even though it has not fought a war since 1979, when it lost thousands of troops in a punitive but brief invasion of Vietnam. Adding to that, China’s economy is both far larger and deliberately more diversified than Russia’s. A sanctions effort like the one presently aimed at Russia would be much harder to sustain against China. These two observations do not mean deterrence won’t hold, only that the unfolding events in Ukraine will likely do little to make Beijing more cautious.

Nearly everyone overestimated Russia’s military capabilities—including probably Putin himself. During its invasion of Ukraine, Russia’s air-ground coordination has been ineffective, and Russian forces have shown risk-adverse tendencies in the air. Russia has also struggled with logistics and keeping its military supplied. Notably, it appears that Russia acted on bad intelligence and therefore did not believe initial strikes that maxed out its firepower were necessary. Furthermore, many Russian weapons platforms are outdated (for example, its Cold War-era tanks), and modern Su-57 fighter jets and T-14 Armata tanks only exist in comparatively small numbers.

The Chinese military used to clearly exhibit the same deficiencies. But over the past decade, it has embraced significant reforms, creating a much more capable fighting force that should give even the United States pause.


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Chinese President Xi Jinping identified similar training and competency issues [to the human element of Russia’s failures in Ukraine] in the PLA 10 years ago. But under his command, the PLA has been proactively implementing significant reforms to avoid similar pitfalls.

First, while Russia allowed its conventional capabilities to atrophy, Chinese military spending has exploded over the past three decades, increasing by 740 percent (in comparison to Russia’s 69 percent) from 1992 to 2017. According to data from the Stockholm International Peace Research Institute, China spent almost four times on its military in 2020 than Russia ($244.9 billion to $66.8 billion). In 1999, less than 2 percent of its fighter jets were fourth-generation, 4 percent of its attack submarines were modern, and none of its surface ships were. Twenty years later, not only did China have much more of everything, but the majority was the most advanced, modern versions available—with China exhibiting advantages over Russia, even in combat aircraft, a traditional area of weakness for China.

Indeed, People’s Liberation Army (PLA) commentators often refer to China’s economic might as one of the reasons their military would outperform Russia’s—Russia has been “stingy” with its military modernization and production of precision-guided munitions primarily because of a lack of resources. By contrast, China has more than 2,200 conventionally armed ballistic and cruise missiles, making the PLA Rocket Force the world’s largest ground-based missile force. Estimates place the number of missiles positioned against Taiwan alone at around 1,000.

Russia’s poor performance does remind us that it takes more than just a lot of fancy systems to win a war (though having more advanced systems and more of them surely would have helped). The human element of Russia’s failures is front and center. Putin probably did not have an open and honest communication channel with the military, which was fearful of providing unfavorable information to the erratic leader. Russian troops were largely considered incompetent, but Putin thought superior technology could overcome human deficiencies.

Chinese President Xi Jinping identified similar training and competency issues in the PLA 10 years ago. But under his command, the PLA has been proactively implementing significant reforms to avoid similar pitfalls. And unlike Putin, who apparently believed technology could overcome deficiencies in personnel, Xi came to the opposite conclusion. When he came to power, he took one look at the military and recognized that with all its fancy equipment, the PLA probably could not fight and win wars and perform the missions it had been assigned. Of particular importance, according to China’s national military strategy, was to fight local wars under informationalized conditions. This meant that the network between platforms and people—the ease of connectivity—was the main feature of modern warfare. China needed the best equipment; an advanced command, control, computers, communication, intelligence, surveillance, and reconnaissance (C4ISR) network; and tons of precision-guided munitions. But perhaps most importantly, it needed troops that could leverage these systems to conduct seamless operations across services and top-down through the chain of command.

The Chinese military is learning lessons from Ukraine, whether it is to stockpile more precision-guided munitions, ensure solid command and control, or cut off internet access [...], which will only serve to improve its warfighting capability in the future.

What followed was a series of slogans—the two incompatibles, two inabilities, two big gaps, the five incapables—all designed to point out the organizational and personnel issues of the military and focus leadership attention and resources on fixing the issue. A massive military reorganization followed with moves such as reorganizing effective combat units to be smaller so that they can mobilize more quickly and can remain self-sufficient for long periods of time. This means, in contrast with the Russian military, the PLA will likely have less reliance on generals at the front lines. China also established theater commands to facilitate joint operations and prioritized realism in its military exercises to help it prepare for real combat. Part of all of this was Xi’s demand that the military communicate its failures and weaknesses so that they could be addressed. Moreover, to improve command and control, China has moved toward engaging in multidomain joint operations all while standing up a new joint operations center that will ensure that, unlike with the Russian military, orders will be communicated and understood at the lowest levels. Indeed, the main reason that Xi has not yet made a play for Taiwan is likely his desire to hone this command and control structure and practice joint operations in realistic conditions for a few more years—a cautious and pragmatic approach that the situation in Ukraine only encourages further.

The PLA itself acknowledges that it still has some distance to go with training, particularly with regard to joint operations, but it looks as if the hard work is paying off. The complexity and scale of China’s national military exercises are eye-opening. It takes a great deal of planning, synchronization, and coordination to take service-level operations to the joint level. China appears to have made great strides in this area. The United States has observed, for example, China executing deep-attack air operations in its exercises that have combined intelligence, surveillance, and reconnaissance (ISR) with multi-domain strike; lift for rapid mobility and advanced fighter manuevers. Russia has relied heavily on artillery and tanks, now and historically, while the PLA is showing a more balanced approach to combined arms operations.

For all these reasons, we should not expect the Chinese military to perform as poorly in its first real military operation since 1979. The PLA is structurally superior to the Russian military. And the Chinese know it. Granted, it’s hard to know whether some of the outlandish claims in the Chinese media are true—that the PLA Air Force would actually “be able to take out the Ukrainian air force in one hour.” But one thing is for certain—the Chinese military is learning lessons from Ukraine, whether it is to stockpile more precision-guided munitions, ensure solid command and control, or cut off internet access to prevent the leaking of information to the West, which will only serve to improve its warfighting capability in the future.

That does not mean it’s perfect. China is still in the process of building its corps of noncommissioned officers, recruiting more college graduates and technical experts so as to be less reliant on conscripts and shift away from an officer-heavy structure. Also, there is always the possibility that Xi’s anti-corruption campaign, which has impacted even the highest levels of the military, may begin to impinge on these reforms. But to date, it seems that those against necessary reforms have been largely targeted. In other words, Xi has not had to choose yet between his goals of consolidating domestic power and the professionalization of the armed forces.

The economic side is less about what has happened in the past six weeks than what will happen in the next six months or even six years. As tempting as it is in the case of Russia’s invasion, the impact of economic sanctions cannot be properly evaluated over a short time period. The need for a longer time horizon also applies to Russia-China economic comparisons, as it will generally require more extensive and more durable sanctions to deter or compel China than it would Russia.

Russia is thought, at least, to be highly vulnerable to sanctions applied to date. And it is certainly the case that China can be harmed by sanctions. Beijing is more integrated in global trade and finance than Moscow and thus has more to lose. But integration cuts both ways—compared with Russia, more countries would be harmed to a greater extent by equivalent actions taken against China. Further, China has demonstrated greater capacity to weather extended economic blows. This combination of features reduces the willingness of the United States and others to enforce durable sanctions, a fact that Beijing well appreciates.

The CCP survived three decades of worse poverty than experienced by the Soviet Union at the time, a self-inflicted depression in 1989-90 paralleling in some respects the events that ended the Soviet Union, the global financial crisis, and another partly self-inflicted economic wound via China’s determination to maintain its zero-COVID policy in 2021-22.

During more recent events, Beijing has been able to mobilize first greater capital resources than Moscow and then far greater. In 2020, the World Bank put China’s gross fixed capital formation at 20 times Russia’s. Xi attacked some of China’s richest citizens, as well as other elements of the private sector, in part because he believed them too intertwined with foreign capital. These were voluntary steps by China that mirror how the world currently seeks to punish Russia. Whatever their wisdom, Xi knows China can afford them, while Russia’s capability is in doubt.

Some Russian foreign reserves have been effectively frozen and some financials excluded from the Society for Worldwide Interbank Financial Telecommunication (SWIFT), limiting international transactions. In the short term, these steps could have a similar impact on China, but they would be much harder to sustain.

Beijing has conducted currency swaps with dozens of countries that will want their renminbi to be useful. China also holds foreign government bonds in amounts that countries cannot ignore. U.S. Treasurys see the largest holdings, but there are also sizable quantities of Japanese government bonds, for instance. With official Chinese reserves upwards of $3 trillion, perhaps five times Russia’s, a partial freeze would quickly wear on governments and firms looking for bond buyers.

For any SWIFT restrictions that interfere with outbound U.S. portfolio investment, that volume stood at $85 billion in Russia and $1.15 trillion in China in 2020. The stock of U.S. direct investment was 10 times higher in China than Russia—companies willing to exit Russia would face leaving a lot more behind in a China contingency. Most broadly, the yuan can erode the role of the dollar; the ruble certainly cannot. Beijing lacks the will to allow free movement of the yuan and make it a true reserve currency, but heavy, durable sanctions might change that.

On the goods side, existing pressure to spare Russian vital exports would be more intense in China’s case. The loss of Russian oil and gas exports of $230 billion in 2021 threatens energy markets. Chinese exports are at least as important within chemicals, textiles, household appliances, industrial machinery, and consumer electronics. Would they all be exempted?

Certain Russian exports, such as palladium, play supply chain roles beyond their direct financial value. As expected from its manufacturing and export volumes, China’s supply chain participation is far larger than Russia’s, extending from inputs crucial to global pharmaceuticals to processed rare earths crucial to clean-energy applications. Russian ships have been banned from some ports. By tonnage, Russia accounts for a bit over 1 percent of the world’s commercial fleet, while China accounts for more than 11 percent. Banning Chinese ships would cause seaborne trade to noticeably contract, hitting supply chains that would already be strained by the diversion of Chinese goods.

Even an area of clear Russian advantage—lower import dependence—is double-edged. Inhibiting Chinese imports of iron ore or integrated circuits, for example, would hit the country hard. But China is such a huge purchaser that many producers would refuse to join a sustained embargo against it. As elsewhere, the barriers to Russian imports adopted thus far could hurt China only in the unlikely event that they are maintained for many months.

From how to remain in power to how to advance on the international stage, militarily and economically, the CCP has been learning what not to do from the Russian or Soviet experience for decades. Chinese strategists are unquestionably evaluating whether the nature of warfare has changed or if they failed to consider some critical factors necessary for success. Chinese economists are certainly looking to identify missed vulnerabilities based on how the economic dimension of the war in Ukraine plays out—and will work to address them to prevent exploitation by the United States and others.

Not that it will all be easy for Beijing. But China is already better prepared than Russia, economically and militarily. The steps to support Ukraine and punish Russia are immediately less potent in a China contingency. And an unfortunate side effect of the tragedy in Ukraine is that China has a relatively low-cost opportunity to learn—it may become a more formidable challenger than it would’ve been otherwise. The United States and its allies should realize that their effectiveness with regard to Russia is highly unlikely to translate. In a Taiwan contingency, the United States must be able to immediately implement both a stronger package of actions aimed at China and also a second package aimed at minimizing the long-term cost of the first.

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Protesters display placards in front of the Representative Office of the Moscow-Taipei Coordination Commission to protest against Russia’s military invasion of Ukraine on February 25, 2022 in Taipei, Taiwan.
Commentary

Invasions Are Not Contagious

Russia’s War in Ukraine Doesn’t Presage a Chinese Assault on Taiwan
Invasions Are Not Contagious
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Unpacking the Crisis in Xinjiang: James Millward on China's Assimilationist Policies and U.S.-China Engagement

APARC Visiting Scholar James Millward discusses PRC ethnicity policy, China's crackdown on Uyghur Muslims and other minorities in Xinjiang province, and the implications of the Xinjiang crisis for U.S. China strategy and China's international relations.
Unpacking the Crisis in Xinjiang: James Millward on China's Assimilationist Policies and U.S.-China Engagement
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The invasion of Ukraine is offering useful lessons for the PLA.

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Prof. Yang discusses two current research projects:


AI-tocracy 
Can frontier innovation be sustained under autocracy? We argue that innovation and autocracy can be mutually reinforcing when: (i) the new technology bolsters the autocrat’s power; and (ii) the autocrat’s demand for the technology stimulates further innovation in applications beyond those benefiting it directly. We test for such a mutually reinforcing relationship in the context of facial recognition AI in China. To do so, we gather comprehensive data on AI firms and government procurement contracts, as well as on social unrest across China during the last decade. We first show that autocrats benefit from AI: local unrest leads to greater government procurement of facial recognition AI, and increased AI procurement suppresses subsequent unrest. We then show that AI innovation benefits from autocrats’ suppression of unrest: the contracted AI firms innovate more both for the government and commercial markets. Taken together, these results suggest the possibility of sustained AI innovation under the Chinese regime: AI innovation entrenches the regime, and the regime’s investment in AI for political control stimulates further frontier innovation.

Exporting the Surveillance State via Trade in AI 
What are the international ramifications of China’s emergent leadership in facial recog- nition AI? We collect global data on facial recognition AI trade deals and document two facts. First, we show that China has a comparative advantage in this technology. It exports substantially more facial recognition AI than other countries, and particularly so as compared to other frontier technologies. This comparative advantage may stem in part from the Chinese government’s larger demand for the technology for do- mestic surveillance and political control — a form of “home-market” effect — as well as Chinese firms’ access to large government datasets. Second, we find that there is a political bias in China’s facial recognition AI exports. It is more likely to export this technology to autocracies and weak democracies relative to other frontier technologies, in particular to those lacking domestic AI innovation or experiencing political unrest. No such bias is observed for the United States. To the extent that China may be exporting its surveillance state via trade in AI, this can enhance and beget more autocracies abroad. Policymakers should thus frame AI trade regulations around regulations on products with global externalities.


Watch the Recording:


About the Speaker

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David Yang

David Y. Yang is an Associate Professor in the Department of Economics at Harvard University, a Faculty Research Fellow at NBER and a Global Scholar at CIFAR. David’s research focuses on political economy, behavioral and experimental economics, economic history, and cultural economics. In particular, David studies the forces of stability and forces of changes in authoritarian regimes, drawing lessons from historical and contemporary China. David received a B.A. in Statistics and B.S. in Business Administration from University of California at Berkeley, and PhD in Economics from Stanford.


This event will be held in-person at Stanford University, however, the lecture will be recorded. If you are interested in viewing the recording, please contact Debbie Aube.

Questions? Contact Debbie Aube at debbie.aube@stanford.edu


 

Encina Hall, Stanford University

David Y. Yang
Seminars
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SCCEI Spring Seminar Series 


Wednesday, May 25, 2022      11:00 am -12:15 pm Pacific Time

Philippines Room, C330, 3rd Floor, Encina Hall Central, 616 Jane Stanford Way | Zoom Meeting 


Economic Inequality and Social and Demographic Outcomes in China

In this talk, Professor Yu Xie will first document a sharp rise in economic inequality in contemporary China. He then will present results from his research program on the impact of rising economic inequality on a variety of social and demographic outcomes in China: intergenerational mobility, marriage age, marriage partner choice, fertility, and mortality. 


About the Speaker

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Yu Xie photo

Yu Xie is Bert G. Kerstetter ’66 University Professor of Sociology and has a faculty appointment at the Princeton Institute of International and Regional Studies, Princeton University. He is also a Visiting Chair Professor of the Center for Social Research, Peking University. His main areas of interest are social stratification, demography, statistical methods, Chinese studies, and sociology of science.

Xie's recently published works include: Marriage and Cohabitation (University of Chicago Press 2007) with Arland Thornton and William Axinn, Statistical Methods for Categorical Data Analysis with Daniel Powers (Emerald 2008, second edition), and Is American Science in Decline? (Harvard University Press, 2012) with Alexandra Killewald. Xie joined Princeton University in 2015, after 26 years at the University of Michigan, most recently as the Otis Dudley Duncan Distinguished University Professor of Sociology, Statistics and Public Policy and a research professor in the Population Studies Center at Michigan's Institute for Social Research. He is also a member of the American Academy of Arts and Sciences, Academia Sinica and the National Academy of Sciences.


Seminar Series Moderators

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Headshot of Dr. Scott Rozelle

Scott Rozelle is the Helen F. Farnsworth Senior Fellow and the co-director of Stanford Center on China's Economy and Institutions in the Freeman Spogli Institute for International Studies and Stanford Institute for Economic Policy Research at Stanford University.  For the past 30 years, he has worked on the economics of poverty reduction. Currently, his work on poverty has its full focus on human capital, including issues of rural health, nutrition and education. For the past 20 year, Rozelle has been the chair of the International Advisory Board of the Center for Chinese Agricultural Policy, Chinese Academy of Sciences (CAS). Most recently, Rozelle's research focuses on the economics of poverty and inequality, with an emphasis on rural education, health and nutrition in China. In recognition of this work, Dr. Rozelle has received numerous honors and awards. Among them, he became a Yangtse Scholar (Changjiang Xuezhe) in Renmin University of China in 2008. In 2008 he also was awarded the Friendship Award by Premiere Wen Jiabao, the highest honor that can be bestowed on a foreigner.  
 

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hongbin li headshot

Hongbin Li is the Co-director of Stanford Center on China's Economy and Institutions, and a Senior Fellow of Stanford Institute for Economic Policy Research (SIEPR) and the Freeman Spogli Institute for International Studies (FSI). Hongbin obtained his Ph.D. in economics from Stanford University in 2001 and joined the economics department of the Chinese University of Hong Kong (CUHK), where he became full professor in 2007. He was also one of the two founding directors of the Institute of Economics and Finance at the CUHK. He taught at Tsinghua University in Beijing 2007-2016 and was C.V. Starr Chair Professor of Economics in the School of Economics and Management. He founded the Chinese College Student Survey (CCSS) in 2009 and the China Employer-Employee Survey (CEES) in 2014.

Hongbin’s research has been focused on the transition and development of the Chinese economy, and the evidence-based research results have been both widely covered by media outlets and well read by policy makers around the world. He is currently the co-editor of the Journal of Comparative Economics.


A NOTE ON LOCATION

This seminar is a hybrid event. Please join us in person in the Philippines Room, C330, located within Encina Hall Central on the 3rd floor, or join remotely via Zoom.

Register once to receive the Zoom meeting link that will be used for all lectures in this series.

Questions? Contact Debbie Aube at debbie.aube@stanford.edu


 

Scott Rozelle
Hongbin Li

Hybrid Event: Philippines Room, C330, 3rd Floor of Encina Hall Central | Zoom Meeting

Yu Xie
Seminars
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