Asia-Pacific Archive

German Chancellor Angela Merkel was in China last week, where she visited Chengdu, in the west of the country, and Beijing. This marks Merkel’s seventh official trip to China since she took office in 2005, a further sign of the growing importance of Berlin’s special relationship with Beijing. Germany and China have been steadily boosting ties since the late 1990s, when Gerhard Schroeder was chancellor. In 2012, then-Chinese Premier Wen Jiabao, while visiting Berlin, announced the goal to increase bilateral trade with Germany from $180 billion to $280 billion by 2015. Trade between the two reached $193 billion in 2013, […]

Last month, a Thai army delegation visited China for talks on their security ties, which include joint military training. In an email interview, Joshua Kurlantzick, senior fellow for Southeast Asia at the Council on Foreign Relations, discussed Thailand’s relations with China. WPR: What was the status of ties between Thailand and China before the May military coup? Josh Kurlantzick: The status of relations was quite good, probably better than between China and any other large country in Southeast Asia. Thailand has always, through its history, done an excellent job of balancing between major powers and still promoting Thai interests. WPR: […]

Last week’s China-South Korea summit confirmed the good relations between Beijing and Seoul under Chinese President Xi Jinping and South Korean President Park Geun-hye. When they met in Seoul on July 3 for their fifth personal meeting since Park assumed office in March 2013, the two leaders announced ambitious economic goals and reconfirmed their opposition to North Korea’s nuclear weapons program. Nonetheless, despite Chinese Foreign Ministry spokesman Qin Gang’s pre-summit forecast that Xi’s trip would “take the strategic cooperative partnership between China and South Korea to a new level,” no breakthrough occurred, and their bilateral relationship remains essentially the same. […]

Like it did with the crisis in Ukraine, China is trying to keep out of the chaos in Iraq. But as the central government in Baghdad confronts the Sunni militants spearheaded by the Islamic State of Iraq and Syria (ISIS), an al-Qaida splinter group that aims to create an Islamic caliphate from eastern Syria to northwestern Iraq, it will be hard for China to preserve a policy of noninterference. This time around, unlike what happened in Ukraine, China cannot keep out of another sovereign nation’s internal affairs—until now a cornerstone of its diplomacy—given Beijing’s huge economic and commercial interests in […]

Hundreds of thousands of pro-democracy demonstrators took to the streets of Hong Kong last week on the anniversary of its handover to China, and more than 500 were arrested. In an email interview, Simon Young, a law professor at Hong Kong University, placed the protests in the context of Hong Kong’s relationship with the mainland. WPR: How has Hong Kong’s status within China developed since the end of British rule in 1997? Simon Young: Hong Kong’s status within China, known as “one country, two systems,” grew out of the 1984 Sino-British Joint Declaration framework and is formally defined in the […]

Zhang Zhijun, director of China’s Taiwan Affairs Office, recently concluded a four-day visit to Taiwan. He is the highest-ranking official from the People’s Republic of China ever to have visited Taiwan, making the trip something of a milestone in relations across the Taiwan Strait. First up on Zhang’s itinerary was a meeting with his Taiwanese counterpart, Wang Yu-chi, the director of Taiwan’s Mainland Affairs Council. The two had held the first such government-to-government talks in February in Nanjing, where they agreed in principle to establish mechanisms for official communication, including representative offices. This time they moved one step closer to […]

On June 22, India announced that it had ratified an additional protocol with the International Atomic Energy Agency (IAEA), marking the country’s latest measure to implement a controversial nuclear cooperation agreement reached with the United States in 2008. However, this marginal step forward should not obscure the fact that the pact has yet to produce the promised economic benefits for the two countries. Meanwhile, its strategic benefits have been decidedly mixed, including striking a significant blow to the nonproliferation regime. Between 2005 and 2008, the Bush administration and the Indian government reached agreement and won support in their legislatures and […]

In remarks at the U.S. Embassy in Manila early last month, U.S. Ambassador to the Philippines Philip Goldberg praised the elite counterterrorism unit sent to advise the Philippine military after the attacks of 9/11, known as the Joint Special Operations Task Force Philippines (JSOTF-P), as having “gained the trust and earned the respect of our host nation partners.” The unit, he pointed out, was also the “first element of the U.S. Armed Forces to deploy” to areas affected by last November’s typhoon. But after more than a decade in the Philippines, the United States is phasing out the task force. […]

Multilateral development banks (MDBs) have long played an important role in international development finance. Subregional development banks (SRDBs) have had a more limited function, until the emergence of a few dynamic institutions in recent years. This paper explores the origins of MDBs and SRDBs; considers key issues and trends in their purpose, governance and financing; and explores challenges and opportunities that MDBs and SRDBs face in a changing global development environment. Origins of Multilateral and Subregional Development Banks The current international monetary and development architecture has a long history, going back to the establishment of the International Monetary Fund and […]

Japanese Prime Minister Shinzo Abe today announced a major shift in the posture of Japan’s military, known as the Self-Defense Force, that could allow it to engage in combat on foreign soil six decades after it was founded. Japan’s military has for decades maintained a defensive mission under Article 9 of Japan’s constitution, which states that “the Japanese people forever renounce war as a sovereign right of the nation and the threat or use of force as a means of settling international disputes.” The move was greeted with protests both at home and abroad. Local polls showed at least half […]

South Korean President Park Geun-hye’s high-profile six-day visit to Central Asia last week imparted further momentum to her “Eurasia initiative,” intended to deepen South Korean ties with that energy-rich but geopolitically volatile region. The trip also highlighted South Korea’s value to Washington at a time when the U.S. role and influence in the region is declining due to the ebbing U.S. military presence in Afghanistan and strained relations between the United States and the other two great powers active in the region, Russia and China. Park announced her Eurasia initiative last October. The declared goal is to remove physical and […]

Informal finance is ancient. What is it, and does it still have a place in today’s economies? Throughout the first half of the 19th century and into the 1970s, informal finance was studied by anthropologists under the heading of indigenous or traditional organizations. In the 1970s, technical assistance agencies rediscovered these organizations in the context of self-help based on savings, a concept that had been central to the credit cooperative movement founded in the 19th century by the German mayor Friedrich Wilhelm Raiffeisen. In the 1980s, self-help groups (SHGs) came to be known as informal financial institutions, and their reputation […]