The political relations between the EU and China are deteriorating. They may not be on such a clear path towards fraction and decoupling as the US-China relation, but the writing is on the wall. Developments this early summer – President Xi’s visit to Europe and the new EU tariffs on electric vehicles (EVs) – show neither side seem to have an alternative idea. Commentators elsewhere have, and not without reason, pointed to China’s divide-and-rule tactic behind Xi’s visit to Europe. Far from coincidental, President Xi’s destination choices for his European tour were drawn together by one thing ..read more

Every season is a time for reading but a long summer holiday is a particularly good time for relaxing with a good book. Here is a selection of books – some older, mostly newer ones – that ECIPE staff has recently read and can recommend. What Went Wrong with Capitalism? By Ruchir Sharma In his new book, Ruchir Sharma – an investor who writes a column in the Financial Times – takes stock of capitalism. He finds that it isn’t in good health. Western capitalism has ossified and far too many sectors have far too little competition. Zombie firms have multiplied and put a wet blanket on hopes to rai ..read more

Digital trade has grown very fast in recent years, not least because of Covid-19 and its push to do online business. The pandemic, according to one news story, “has accelerated digitalization and is serving as a catalyst for the growth of non-physical goods trade” (Bloomberg, 2020).  While all this is true, digital globalisation has been on the rise for years. In fact, global digital exports of services deliverable over the internet – such as R&D, information, computer, and other business services as well as charges for Intellectual Property Rights (IPR) – together show an average gro ..read more

South Korea’s nuclear industry has emerged in recent years to become a significant player in what is a competitive market. Its biggest achievement so far has been the $20 billion contract to construct and operate nuclear reactors for the United Arab Emirates, a project which is currently 65% complete with the first unit expected to come online in 2017. This growing importance in the nuclear energy sector has even been reflected in the recent debacle over the construction of the Hinkley C nuclear power station in the United Kingdom where industry figures have highlighted South Korea’s success i ..read more

It’s only 20 months since the WTO last had a ministerial conference.  Usually, it’s at least two years between meetings but the previous conference was delayed by COVID, so there’s an element of making up for lost time.  “MC13” – the Thirteenth Ministerial Conference since the WTO’s establishment in 1995 – will take place in Abu Dhabi from 26-29 February. The agenda is extremely broad and there are only three and a half days for Ministers to achieve consensus.  The less controversial items have been largely dealt with through assiduous preparation in Geneva but, as is usual on s ..read more

Not One Inch: America, Russia, and the Making of Post-Cold War Stalemate by Mary Elise Sarotte Professor Salotte’s book is necessary reading to understand one of the most controversial diplomatic and military endeavors of the late 20th century: NATO’s eastward expansion.  Published just few months before Russia’s invasion to Ukraine, Sarotte’s fascinating and engaging recollection of events, discussions and meetings between Western leaders and their Soviet – and later Russian – counterparts, make this book extremely timely for understanding the complexity behind one of the greatest t ..read more

Digital trade has grown very fast in recent years, not least because of Covid-19 and its push to do online business. The pandemic, according to one news story, “has accelerated digitalization and is serving as a catalyst for the growth of non-physical goods trade” (Bloomberg, 2020).  While all this is true, digital globalization has been on the rise for years. In fact, global digital exports of services deliverable over the internet – such as R&D, information, computer, and other business services as well as charges for Intellectual Property Rights (IPR) – together show an average gro ..read more

The Russian economy is in disarray. The Russian ruble is in free fall; sales of foreign exchange are banned; and foreign companies are fleeing Russia day by day. In a previous blog we showed the high level of economic interdependence between Russia and the rest of the world, particularly with the EU which accounts for more than one third of Russian exports and imports. A lot has been said about Europe’s dependency on Russian oil and gas, and this dependency remains an acute problem. However, in macro terms, the Russian economy is much more dependent on the EU than vice versa. Financial and eco ..read more

In recent months, it has become evident how the US sanctions against Chinese technology suppliers seem inconsistent, especially when it comes to the critical 5G infrastructure and participation in related standard-setting. Whereas Huawei – the principal target of US policy – has undeniably weakened. But the Chinese 5G behemoth never supplied any of the US mobile networks – and as such, it never posed a direct security threat to the US. Instead, the sanctions have indirectly helped Chinese state-owned and military-linked companies like ZTE who benefitted from bullish purchases an ..read more

Introduction On December 3rd, DiDi, the world’s largest ride-hailing app, announced it would delist from New York Stock Exchange (NYSE) and move its listing to Hong Kong, heeding the calls from the Chinese authorities. DiDi, with its 600 million users (which is more than six times larger than Uber), is by far the world’s largest ride-hailing app and calls itself ‘the world’s largest depository data. As such, it has been subject to several onerous investigations in China since its initial public stock offering (IPO), which had put the company under the purview of US financial authorities. Inevi ..read more