China

The Tibetan struggle for independence has captured the attention of the world. The Olympic torch was greeted with pro-Tibet demonstrators on two continents. Chinese officials are more nervous and more likely to use forceful suppression. Director of the New America Global Governance Initiative, Parag Khanna, recently adapted a section of his new book, The Second World, to talk about Tibet as well as its lesser known counterpart, Xinjiang. He states that these autonomous regions are important to Chinese nationalism and contain natural resources of vital importance to China. Only when Beijing secures absolute control over the people and resources in these regions will the government relax political control.

First rule of empire: dominate

The Taiwanese presidential election Saturday of either Kuomingtang (KMT)'s Ma Ying-jeou or Democratic Progressive Party (DPP)'s Frank Hsieh will likely bring further economic integration between China and Taiwan. The China-friendly KMT favors deeper economic ties with China than the DPP, but both parties appear to be leaning toward economic liberalization policies such as relaxing the control on the 40% of capital cap on Taiwanese investment into China, facilitating tourist travel, and allowing the struggling Taiwanese banking sector to invest in China. Signs from Beijing indicate they are also willing to support increased economic ties.

Snapshot asks, will greater economic ties bring Taiwan closer to China's political orbit?

JPMorgan Chase - Taiwan: the post-election economic landscape
Bloomberg - Taiwan Election Will Thaw China Ties, Sooner or Later
Financial Times - Taiwan Reverses Ban on China Investment
Hoover Institution - Election 2008 and the Future of Cross-Strait Relations

Today, the American Strategy Program is proud to host Senior Research Fellow Parag Khanna's latest book, The Second World: Empires and Influence in the New Global Order. His talk is entitled, "The Global Great Game" and runs from 12:15 to 1:45. For more information about the event, click here.

In the meantime, Salon.com featured Parag in their Big Think section. Check it out:

China’s inflation surged 8.7% in February on the back of food prices, which rose 23%. Snowstorms crippled transportation networks and damaged crops, temporary adding to inflation. But some believe food inflation will bleed into other sectors. The instability that results from this type of broad-based inflation is at the forefront of the leadership's concern. At the National People's Congress last week, Premier Wen Jiabao announced inflation as the first priority of the central government.

Snapshot asks, does China have a temporary problem with food inflation or will inflation spread to other sectors of the economy?

Bloomberg - China's Inflation Surges to 8.7% as Food Prices Soar
Kenneth Rogoff - China may yet be economy to lose sleep over
New York Time - China to Focus on Reducing Inflation, Prime Minister Says
Caijing - Taming Inflation
Societe Generale - China’s policy challenges come to the fore at the National People’s Congress

For the Chinese government, controlling the Internet is of primary importance. So are the 2008 Summer Olympic Games. Writing from Beijing in the current Atlantic Monthly, New America Foundation founder and outgoing Chairman James Fallows examines the collision of these two regime imperatives. What he uncovers is a modern-day Potemkin Village designed to hide this instrument of social control from the coming wave of Olympic tourists.

Sovereign wealth funds from less-than-democratic states have been buying into private equity groups like Blackstone and distressed financial institutions like Citigroup, UBS, and Merril Lynch -- at a steady clip. While some commentators warn of the dangers of foreign control, writing in today's Wall Street Journal Europe, Heidi Crebo-Rediker and Doug Rediker say the price of admission to the American and European markets may be a measure of democratic reform.

Later today, the U.S. Navy is going to shoot down an old U.S. spy satellite. But why? Three rationales are floating out there and New America's Jeffrey Lewis tells the Today Show's Jim Miklaszewski that while safety and secrets may be the domestic rationale, China and Russia see this as a pure test of our anti-satellite capability.

Discussing the emergence of sovereign wealth funds on Fox Business Channel was Douglas Rediker, co-director of New America's Global Strategic Finance Initiative:

The Hong Kong Heng Seng Index fell 8.7% overnight, and is down 22% this year. The Shanghai Composite Index fell 7.2% giving it a loss of 13% so far this year. Snapshot asks, are the declines in the Chinese stock markets an indicator of China’s reliance on the U.S. market for growth or an internal market correction?