China’s $1.5 Trillion Bet: Understanding China’s External Portfolio

China is now by far the United States’ largest creditor. Its treasury portfolio recently surpassed that of Japan’s, and it has long held more agency (Fannie Mae, Freddie Mac) bonds than any other country. Never before has a nation as poor as China provided so much financing to a country as rich as the United States. In this Center for Geoeconomic Studies Working Paper, Brad W. Setser and Arpana Pandey estimate the true scale of China’s U.S. portfolio and examine how the pace of growth and composition of China’s portfolio have evolved over time.

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He Jianan
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Implementation Completion and Results Report: Health IX Project

China's significant health gains during the 1960s and 1970s earned worldwide recognition. Following onset of economic reforms in the 1980s, however, the primary health care system was weakened, reducing access to both curative and preventive services. Specific steps were taken in the 1990s and 2000s to improve unequal access to growing problems of maternal care, and HIV/AIDS prevention. The World Bank-funded Health IX project was devised to combat these two growing problems with differing development objectives, target populations, and activities. The report is ultimately favorable but finds that more attention could be devoted to process evaluation and lesson learning during project implementation, and measurement of capacity building could be more explicitly considered.

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Health
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World Bank

U.S.-Funded Assistance Programs in China

U.S. government support of rule of law and civil society programs in the People’s Republic of China constitutes a key component of its efforts to promote democratic change in China. Other related U.S. activities include participation in official bilateral dialogues on human rights, public diplomacy programs, and open criticism of PRC policies. During the past decade, U.S. assistance to China has grown in size and breadth. Between 2000 and 2008, the United States government authorized or made available roughly $182 million for programs in China, of which $159 million was devoted to human rights and democracy activities and to Tibetan communities. This CRS report surveys U.S. assistance to China and the key actors and programs involved.

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Peony Lui
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China’s Growing Role in U.N. Peacekeeping

Over the past twenty years China has become an active participant in U.N. peacekeeping, a development that will benefit the international community. Beijing has the capacity to expand its contributions further and should be encouraged to do so. China’s approach to peacekeeping has evolved considerably since it assumed its U.N. Security Council (U.N.S.C.) seat in 1971, when it rejected the entire concept of peacekeeping. Now, with over 2,000 peacekeepers serving in ten U.N. peacekeeping operations worldwide, China’s motivations for supporting and participating in peacekeeping have led it to adopt a case-by-case approach that balances those motivations against its traditional adherence to non- intervention. This pragmatic policy shift paves the way for China to provide much-needed personnel as well as political support and momentum for peacekeeping at a time when both conflicts and peacekeeping operations are becoming more complex. China’s involvement also further binds it to the international system. Overall, China’s growing role is helping to fill the growing shortfall in capacity and resources. The lack of available and qualified police for peacekeeping is one area in which China is already making a significant contribution. As a low-cost and effective means of contributing to international peace and stability, China should be encouraged to continue increasing its participation in peacekeeping, and the U.N. and Western countries should continue to provide support to and encourage China in its peacekeeping efforts.
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International Crisis Group

Village-by-Village Democracy in China

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‘A Hell on Earth’

“The situation inside Tibet is almost like a military occupation,” I heard the Dalai Lama tell an interviewer last November, when I spent a week traveling with him across Japan. “Everywhere. Everywhere, fear, terror. I cannot remain indifferent.” Just moments before, with equal directness and urgency, he had said, “I have to accept failure. In terms of the Chinese government becoming more lenient [in Chinese-occupied Tibet], my policy has failed. We have to accept reality.”

Taiwan-U.S. Relations: Developments and Policy Implications

Policy toward and support for Taiwan are a key element in U.S. relations with the People’s Republic of China (PRC) and an important component of U.S. policy in Asia. Recently, pessimistic observers see growing PRC-Taiwan ties eroding U.S. influence, strengthening PRC leverage and, particularly in the face of expanding economic links, jeopardizing Taiwan autonomy and economic security. The changing dynamic between Taiwan and the PRC poses increasingly difficult, competing policy challenges for the United States. Along with new policy challenges—such as what U.S. policy should be if Taiwan should continue to move closer to or even align with the PRC—the Obama Administration will be faced with other challenges familiar from past years, including decisions on new arms sales to Taiwan, which are anathema to the PRC; how to accommodate requests for visits to the United States by President Ma and other senior Taiwan officials; the overall nature of U.S. relations with the Ma government; whether to pursue closer economic ties with Taiwan; what role, if any, Washington should play in cross-strait relations; and more broadly, what form of defense assurances to offer Taiwan.

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Peony Lui
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