Chinese FDI in Europe and Germany

Preparing for a New Era of Chinese Capital

The authors have—on the basis of a unique transaction dataset—analyzed the newest trends of Chinese direct investment in Germany and the E.U. The study is able to clearly establish that the new wave of Chinese investment offers exceptional opportunities for Germany and Europe in a period of economic transition. In order to take advantage of these opportunities and minimize the risks it is nevertheless vital to set the right political framework. It is by no mean a matter of course that capital will in future flow from China. At the same time, China is not just any investor. China’s economic model and the hybrid character of many Chinese companies as well as the speed and scope of investment flows pose a great number of challenges. The authors make concrete recommendations for German and European decision-makers from politics and business.

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Demand-Driven Data: How Partner Countries are Gathering Chinese Development Cooperation Information

As China becomes one of the major development partners and South-South cooperation (SSC) providers globally, there is increasing demand from partner countries for more information on China’s financial flows. China has been taking initiatives to increase the sharing of development cooperation information, exemplified by the release of two White Papers on Foreign Aid (2011 and 2014), or through steps for improving Chinese foreign aid management mentioned in the Measures for the Administration of Foreign Aid (2014). As part of the global initiative to support developing countries in their quest for greater information sharing about development cooperation flows, the Global Partnership for Effective Development Cooperation (GPEDC) was established at the Fourth High-Level Forum on Aid Effectiveness in Busan in 2011. In the 2014 GPEDC progress report, eleven partner countries reported on Chinese financial flows for the first time, a significant increase from previous years. These countries include Cambodia, Democratic Republic of Congo (DRC), Madagascar, Mali, Moldova, Nepal, Philippines, Samoa, Senegal, Tajikistan, and Togo. These countries have provided not only China’s development cooperation data, but also some useful information on the predictability of the financial flows, and the degree of policy alignment to country systems. Furthermore, the report provides information on the quality of these countries’ public financial management systems, and the extent of their respective mutual accountability frameworks.

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United Nations

Did the Game Just Change in the South China Sea? (And What Should the U.S. Do About It?)

A ChinaFile Conversation

As the 14th annual Asia Security Summit—or the Shangri-La Dialogue, as it has come to be known—gets underway in Singapore, we asked contributors to comment on what appears to be a recent escalation in tensions between the U.S. and China over the two countries’ presence in the South China Sea. —The Editors.

Andrew S. Erickson

Andrew S. Erickson is a Professor of Strategy in, and a core founding member of, the U.S. Naval War College’s China Maritime Studies Institute. He serves on the Naval War College Review’s Editorial Board. He is an Associate in Research at Harvard University’s John King Fairbank Center for Chinese Studies and an expert contributor to the Wall Street Journal’s China Real Time Report. Erickson is the author of Chinese Anti-Ship Ballistic Missile Development (Jamestown Foundation, 2013). He received his Ph.D. from Princeton University.

Erickson is a term member of the Council on Foreign Relations. In 2012, the National Bureau of Asian Research awarded him the inaugural Ellis Joffe Prize for P.L.A. Studies. During the academic year 2010-11, Erickson was a Fellow in the Princeton-Harvard China and the World Program in residence at Harvard’s Center for Government and International Studies. From 2008-11, he was a Fellow in the National Committee on U.S.-China Relations’ Public Intellectuals Program, and he served as a scholar escort on a five-Member Congressional trip to China. He has also helped escort the Commander of China’s Navy and his delegation on a visit to Harvard, and he worked to help establish a bilateral naval officer exchange program. Erickson co-founded the blog China SignPost and also blogs at andrewerickson.com.

Yanmei Xie

Yanmei Xie is China Policy Analyst at Gavekal Dragonomics, a financial research and consulting firm. She focuses on China's politics, political economy and foreign policy. Previously, she was International Crisis Group’s Senior China Analyst, and worked as a journalist in Washington, D.C., for C-SPAN, the Capitol News Connection, Fox News, and the McGraw Hill Co. Before moving to the United States, Xie was an international news producer at China Central Television.

Andrew G. Walder

Andrew G. Walder is the Denise O’Leary and Kent Thiry Professor in the School of Humanities and Sciences, and Senior Fellow in the Freeman Spogli Institute for International Studies at Stanford University. Previously, he served as Chair of the Department of Sociology, as Director of the Walter H. Shorenstein Asia-Pacific Research Center, and as Director of the Division of International, Comparative and Area Studies in the School of Humanities and Sciences.

A political sociologist, Walder has long specialized on the sources of conflict, stability, and change in communist regimes and their successor states. His publications on China have ranged from the political and economic organization of the Mao era to changing patterns of stratification, social mobility, and political conflict in the post-Mao era. Another focus of his research has been on the political economy of Soviet-type economies and their subsequent reform and restructuring. His current research focuses on popular political mobilization in late-1960s China and the subsequent collapse and rebuilding of the Chinese party-state.

Walder joined the Stanford faculty in the fall of 1997. He received his Ph.D. in sociology at the University of Michigan in 1981 and taught at Columbia University before moving to Harvard in 1987. As a professor of sociology, he served as Chair of Harvard’s M.A. Program on Regional Studies-East Asia for several years. From 1995 to 1997, he headed the Division of Social Sciences at the Hong Kong University of Science and Technology. From 1996 to 2006, as a member of the Hong Kong Government’s Research Grants Council, he chaired its Panel on the Humanities, Social Sciences, and Business Studies.

His recent publications include “Transitions from State Socialism: A Property Rights Perspective,” in The Sociology of Economic Life, edited by Mark Granovetter and Richard Swedberg (Westview Press, 2011); Fractured Rebellion: The Beijing Red Guard Movement (Harvard University Press, 2009); The Chinese Cultural Revolution as History, edited with Joseph Esherick and Paul Pickowicz (Stanford University Press, 2006); “Revolution, Reform, and Status Inheritance: Urban China, 1949-1996” (with Songhua Hu), in the American Journal of Sociology (2009); “Ownership, Organization, and Income Inequality: Market Transition in Rural Vietnam” (with Giang Hoang Nguyen) in the American Sociological Review (2008); “Ambiguity and Choice in Political Movements: The Origins of Beijing Red Guard Factionalism,” in the American Journal of Sociology (2006); “From Control to Ownership: China’s Managerial Revolution,” in Management and Organizations Review (2009); and “Political Sociology and Social Movements,” in Annual Review of Sociology (2009).

His latest book, China Under Mao: A Revolution Derailed, was published by Harvard University Press in May 2015.

What China’s Lack of Transparency Means for U.S. Policy

I am a political scientist and former diplomat who has studied China for more than forty years, and yet I still can’t answer some of my students’ most basic questions about China’s policy-making process. Where—in which institutional arena and at what level—are various policy issues deliberated and adopted? Which matters are decided by the Chinese Communist Party (CCP) and which by the government? What role does the People’s Liberation Army play in foreign policy?