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Staff Paper
Since President Xi took office in 2013, Beijing has significantly bolstered its involvement in the Pacific Islands region, which comprises three U.S. territories and three countries freely associated with the United States that are important for U.S. defense interests in the Indo-Pacific. Much of China’s engagement in the region has focused on expanding economic ties with the Pacific Islands, but it has also increased its footprint in the diplomatic and security realms. This report examines China’s interests in the region, its comprehensive engagement in the Pacific Islands, and the implications of its expanding presence and influence for the United States.
Staff Paper
The Chinese government is seeking to revamp its state sector through a series of billion dollar “megamergers” involving central state-owned enterprises (SOEs). These megamergers consolidate state control in strategic sectors of economy and eliminate intra-state competition in China. However, they also contribute to increased debt levels among Chinese SOEs and undermine the competitiveness of U.S. businesses and other global firms. This report assesses the objectives of China’s megamergers strategy and evaluates the implications of SOE megamergers (and, more broadly, Chinese government control over the economy) for the global competitive landscape.
Staff Paper
China’s digital game market has emerged as the largest in the world but remains heavily restricted to U.S. game companies. U.S. companies are required to license their games to Chinese operators who appear to claim a majority of the revenue a U.S. game earns in China. Intellectual property rights conditions in China create significant challenges for U.S. firms, facilitating piracy in other international markets through China’s manufacture of piracy-enabling devices and restricting the commercial viability of certain gaming genres and platforms within China due to widespread piracy. Chinese companies have acquired several foreign game companies, raising data privacy concerns given the power of the Chinese government to request information from domestic companies and the broad array of data that can be collected by mobile games.
Contracted Research
The report examines five categories of China’s advanced weapons systems (counter-space, unmanned systems, maneuverable reentry vehicles, directed energy and electromagnetic railguns) and artificial intelligence applications for national defense. The report also assesses the implications of China’s advanced weapons programs for the United States and its allies and provides recommendations.
Contracted Research
The U.S.-China Economic and Security Review Commission released a report entitled Supply Chain Vulnerabilities from China in U.S. Federal Information and Communications Technology, prepared for the Commission by Interos Solutions, Inc. The report examines vulnerabilities in the U.S. government information and communications technology (ICT) supply chains posed by China, and makes recommendations for supply chain risk management.
Issue Brief
The Chinese government has a comprehensive, long-term industrial strategy to build internationally competitive domestic firms and replace foreign technology and products with domestic equivalents first at home, and then abroad. This issue brief serves as a primer on the policies in the Chinese government’s toolbox for achieving its technonationalist targets, to include localization, massive subsidies for R&D, government procurement, China-specific standards, foreign investment restrictions, recruitment of foreign talent, state-directed acquisition of foreign technology and intellectual property, and, in some cases, industrial espionage.
Issue Brief
In November and December 2017, China’s People’s Liberation Army (PLA) Air Force conducted at least nine long-distance training flights over maritime areas along China’s periphery, continuing a trend that began in 2015. Since 2015, long-distance over-water training has become more frequent, featured a greater variety of aircraft, and extended into areas in which the air force had not previously operated. The long-distance over-water training is part of a broader PLA Air Force effort to transition from a service focused on territorial air defense to one capable of conducting offensive and defensive operations beyond China’s coast. These flight activities potentially challenge U.S. interests by (1) improving the PLA Air Force’s capability to execute maritime missions against the United States and U.S. allies and partners in the region; (2) gathering intelligence against the U.S. military and U.S. allies and partners; and (3) reinforcing claims in maritime disputes and pressuring Taiwan.