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Punitive levies on Chinese imports would hurt American consumers and U.S. companies that are part of the global supply chain. At the same time, they would strengthen Beijing's resolve to speed up its quest for independence from foreign technology.

A transatlantic shift in financial burden sharing within NATO would reverberate all the way to China. A weaker U.S. role in global security would lead to a weaker dollar – with serious consequences for China’s monetary policy and real economy.

Britain and Europe are too busy with their own divorce to care about Hong Kong’s future. The crack-down on pro-democracy activists after the election of Beijing-backed candidate Carrie Lam as the SAR’s new chief executive has only drawn muted responses from London and Brussels.

(via The Diplomat)

International businesses in China struggle to comply with new regulations, which force them to store critical data within China's borders, limit the application of foreign encryption services, and require handing over customer data of terror suspects.

As the U.S. President pursues his strategy of “America First,” China strives to increase its role and influence on the world stage. Participants of a panel hosted by MERICS and its partners China File, Asia Society and Young China Watchers in New York discussed the consequences of this shift in the global order.

China sets its hopes on e-mobility. Smart and forceful  industrial policies are geared toward grooming domestic brands and keeping foreign competition at bay. Governments and manufacturers in industrial countries will have to act fast to counter this trend.

As many feared, the new law in practice seems designed to make life difficult for international organizations. Many foreign NGOs, especially those working in political sensitive areas like legal advocacy or political education, are left in legal Limbo.

As the U.S. and Europe struggle with political and economic crises, Chinese party-state media highlight the deficiencies of “Western” systems. The leadership in Beijing offers the “China Path” as an alternative. Under what conditions could we see a rise in anti-Western nationalism in China? What does this mean for the stability of the government? These questions were up for debate at a MERICS China Dispute on 22 February that was attended by around 100 guests.

Speaker interview with Fan Popo (范坡坡): Filmmaker and LGBT activist

Fan Popo is an independent filmmaker and LGBT activist based in Beijing. He studied screenwriting at the Beijing Film Academy. After his graduation in 2007 he became a leading figure of China's queer cinema scene. His documentaries on LGBT and gender issues have been screened at film festivals around the world.

Fan Popo spoke at a Young China Watchers (YCW) event at MERICS in Berlin in February 2017. 

China’s industrial policies aim to build national champions via acquiring technological knowledge abroad. This goal may be in line with the current worldwide wave of economic nationalism, but it is likely to collide with the strategic aims of increasingly globalized Chinese companies.

In the French election campaign, trade with China and Chinese investment raise similar controversies as in the U.S. last fall. Even if a moderate candidate wins, France is likely to adopt a tougher stance vis-à-vis China.

China’s military ambitions are approaching Europe‘s backyard. There is potential for cooperation – but over the longer term, the two sides may find their interests conflict more often than not.

China's new system of circuit tribunals improves citizens’ access to the justice system. But the regional courts under direct control of the Supreme Court also tighten the Communist Party’s grip over the judiciary.

The U.S. withdrawal from TPP and TTIP leaves the EU as the main advocate of high regulatory standards in international trade agreements. The Trump administration’s anti-trade rhetoric may have created an opening for Brussels to get concessions from Beijing and to bolster its position through agreements with other Asian countries.

(via The Diplomat)

Europe’s increasing police and judicial cooperation with China raises difficult questions, especially with regard to extradition. Governments should make sure the cooperation does not undermine international and European legal norms.

In the absence of U.S. and European leadership, China is emerging as the world’s best hope in the fight for climate change. Despite tremendous near-term challenges, Beijing’s political commitment and forward-looking policies could turn China into a model for building an alternative energy economy.

As China imposes tighter controls on capital outflows, China’s global M&A activities may decelerate. However, German companies are likely to remain attractive targets for Chinese buyers for strategic, geopolitical, and business reasons.

The Xi Jinping administration plans to institutionalize its anti-corruption campaign in a new powerful state organ, creating a permanent tool for investigation and prosecution. The reform suggests the introduction of extra-party supervision while it actually expands the CCP’s reach.

Interview with Philippe Le Corre (via Young China Watchers)

As the recent surge of investment from China has fueled heated debate in Europe, Chinese investors struggle with the challenge of becoming a part of the European corporate landscape. Young China Watchers spoke about this dilemma with Philippe Le Corre, visiting fellow in the Center of the United States and Europe at Brookings Institution, and author of a new book on "China's Offensive in Europe."

(via The Diplomat)

Berlin wants to manage the geopolitical implications and to ensure the economic sustainability of China’s pet Project.

The world's current leaders in advanced manufacturing must prepare for growing competition and ensure that China’s industrial upgrade doesn’t come at their expense, the authors of a new MERICS Paper on China argue in an article for our partner publication The Diplomat.

US President-elect Donald Trump has continued branding China as a currency manipulator – accusing the country of keeping the yuan low to help Chinese exports and harming jobs in the US. But in fact China’s currently intervenes in the opposite direction to prevent a weakening of the yuan – supporting American Jobs.

Government intervention has so far averted a crisis in China’s booming property market. But local and central efforts to prevent bubbles from building up have created new risks for the economy.

Donald Trump’s election as US president has increased expectations for China to act as a responsible global power. But Beijing is unlikely to fill these expectations, and China risks being harmed by the fallout of an erratic and possibly reckless US foreign policy. 

The EU should speed up negotiations about a Bilateral Investment Treaty with China. With US trade policy in limbo after the election of Donald Trump, there is an opportunity for Brussels to move ahead with Beijing.