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SnapshotsAug 7, 2020 | 20:48 GMT
With Tech Bans and Hong Kong Sanctions, Trump Hits China With a One-Two Punch
In the United States' pressure campaign against China, President Donald Trump's threshold for action is decreasing and his tolerance for risk of blowback to U.S. economic interests appears to be rising -- a trend confirmed by the White House's move to both restrict transactions by U.S. entities with China's TikTok and WeChat apps, as well as impose sanctions against Chinese and Hong Kong officials involved in the Hong Kong crisis. Such blowback includes the impact of U.S. restrictions on U.S. businesses in China, as well as the threat of Chinese retaliation. Although both of these moves are part of a long-term bipartisan trend towards greater confrontation with China, U.S. President Donald Trump's electoral challenges will lead to an increasingly volatile dynamic ahead of the November vote, even as he tries to walk the line of preserving, at least in name, the U.S.-China trade deal as a key campaign promise. 
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On GeopoliticsAug 7, 2020 | 10:00 GMT
A U.S. soldier (left) stands guard next to a South Korean soldier (right) in Panmunjom, South Korea, on July 27, 2019, during a ceremony commemorating the 66th anniversary of the signing of the Korean War Armistice Agreement.
With the Drawdown of U.S. Forces in Germany, Is South Korea Next?
With the drawdown of U.S. forces in Germany underway, a reduction of U.S. forces in South Korea is now more likely than ever, given evolving U.S. defense priorities and longstanding trends on the Korean Peninsula. Rumors of an imminent U.S. force drawdown in Korea have been circulating since at least 2019, and President Donald Trump has made it clear he wants to reduce large overseas basing. South Korea, however, is a particularly contentious case, as any changes to the size and structure of U.S. forces must take into consideration both the local mission of deterring against North Korea, as well as the broader U.S. strategic mission of refocusing on great power competition, particularly with China. And that will require reassessing South Korea's own national defense capabilities, the benefits and risks of having a large forward force based on the Asian mainland, and the impact of any shift in forces on
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SITUATION REPORTAug 6, 2020 | 18:52 GMT
U.S., China: Beijing Condemns Health Secretary’s Upcoming Visit to Taiwan
China’s foreign ministry said it firmly opposes any official U.S. exchanges with Taiwan, warning that a visit to the island by a U.S. Cabinet official would threaten “peace and stability” in the region, AFP reported Aug. 5. The statement comes a day after the U.S. Department of Health and Human Services announced that Secretary Alex Azar would lead a delegation to Taipai in the coming days to discuss Taiwan’s successful COVID-19 strategy.
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AssessmentsAug 3, 2020 | 10:00 GMT
An oil pumpjack operates in Signal Hill, California, on April 21, 2020, a day after oil prices dropped to below zero amid the ongoing COVID-19 pandemic.
Amid a Global COVID-19 Resurgence, Oil Prices Are Poised to Stall
The resurgence of COVID-19 infections in many countries around the world has undermined the oil market's notion that the recovery in petroleum product demand will continue upward in the absence of a vaccine. Expectations of a swift demand recovery in recent weeks have also been hampered by concerns about new mandatory lockdowns in places where economic activity had resumed, as well as slower economic recoveries elsewhere. Crude oil prices are thus likely to stall heading into the fourth quarter of 2020 as global demand remains sluggish, while modest rises in OPEC+ supply undermine efforts to rapidly balance the market and drain excess inventories. This means the fiscal position of countries highly dependent on oil export revenues will likely continue to be strained, and that any recovery in drilling activity and the oilfield services sector will also be slow.
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SnapshotsJul 31, 2020 | 16:39 GMT
A Year-Long Election Delay Extends Hong Kong’s Political Crisis
The one-year delay of the Hong Kong election appears to be an attempt to exhaust the opposition pro-democracy camp, though it may instead serve as a rallying point domestically and internationally. Hong Kong Chief Executive Carrie Lam announced July 31 that the Legislative Council elections would be delayed by a year, to Sept. 5, 2021, citing the COVID-19 pandemic and her prerogative under the Emergency Regulation Ordinance. The delay, however, was more likely a desperate move by Lam and her pro-Beijing camp, who was facing the real possibility of a much larger win for the pro-democracy camp. As such, the move may embolden the opposition to keep up pressure through international contact and domestic resistance -- whether via organized rallies and protests, or in the Legislative Council before its current term ends Sept. 30. 
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SnapshotsJul 31, 2020 | 14:48 GMT
The U.S. Economic Recession Grows Deeper and Bleaker
The United States is likely to experience a weak economy for a prolonged period, which, when combined with high debt levels, will have long-lasting effects on federal spending and perhaps even Washington's ability to exercise global influence as the country turns inward. The United States' pandemic-induced recession may have bottomed out in the April-June quarter, with GDP shrinking at a record pace. But with growth sluggish even before the pandemic, prospects for the U.S. economy remain stark. Base effects alone probably ensure positive growth in the third quarter of 2020, though signs the U.S. recovery is already slowing means another contraction in the fourth quarter cannot be ruled out. And with infections on the rise across America, there's an increasing chance that U.S. GDP growth could remain below pre-pandemic levels for years to come. 
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SnapshotsJul 30, 2020 | 17:16 GMT
A Year On, China's Tech-Focused Stock Market Is Making Strides
The STAR Market, China's equivalent to a tech-focused Nasdaq, is fueling growth in China's tech sector, but Beijing's regulation and fears of both domestic speculation and industry bubbles will constrain the exchange's potential for growth. A recent string of launches is demonstrating the STAR Market's potential power to raise capital and draw investment into the Chinese technology sector. China will likely continue to liberalize the market faster than its other domestic stock markets, as the exchange becomes increasingly central to China's overall technology ambitions amid its tech war with the United States. The success of the STAR Market, however, will depend on the innovativeness and quality of the companies involved in it, as well as the broader constraints to China's tech sector.
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On GeopoliticsJul 30, 2020 | 10:00 GMT
A display shows the national flags of China and the United States at the Group of 20 (G-20) Summit in Osaka, Japan, on June 29, 2019.
The U.S.-China Ideological Divide and the Challenge of Cohesion
A series of foreign policy speeches by key officials in U.S. President Donald Trump's administration has sought to redefine the U.S.-China strategic competition as one based on conflicting core ideologies between those of the Chinese Communist Party and those of the free world. But to be effective, the United States needs to revive domestic unity and engender global cooperation, while China only needs to maintain domestic unity and exploit global divisions. 
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