Global Shift: How the West Should Respond to the Rise of China


Download
A recent study by the Transatlantic Academy reveals that growing threats to the current global governance structure—especially the rise of China—show the deep need for focused transatlantic cooperation over a range of issues.

WASHINGTON, DC (June 1, 2011) — A recent study by the Transatlantic Academy reveals that growing threats to the current global governance structure—especially the rise of China—show the deep need for focused transatlantic cooperation over a range of issues in an emerging multipolar world.

Global Shift – How the West Should Respond to the Rise of China a collaborative report by American and European fellows of the Transatlantic Academy, argues that Atlantic renewal is essential to safeguarding stability in global governance in the coming era. The alternative, Atlantic drift, could have dire consequences for the global order.

"The dramatic and rapid shift of economic power away from the West will have major implications for the global political and economic international order in this century", said Stephen F. Szabo, Executive Director, Transatlantic Academy. “The rise of China is the most important manifestation of this shift and has the greatest potential to reshape the global order. China’s rise poses a fundamental question for the transatlantic relationship: Will Europe and America be pulled together as they were in the Cold War, or will their responses be diffuse and divergent? The Transatlantic Academy fellows in this study offer ways for the West to cohere in a new partnership and to shape a common response to the strategic challenges of the 21st century.”

The Transatlantic Academy serves as a forum for a select group of scholars from both sides of the Atlantic, and from different academic and policy disciplines, to examine a single set of issues. Working together from a transatlantic and interdisciplinary perspective, Academy fellows use research, publications, and seminars to make policy-relevant contributions to policy debates facing the transatlantic community. Global Shift – How the West Should Respond to the Rise of China was authored by 2010-2011 Transatlantic Academy fellows: Daniel Deudney, Johns Hopkins University; James Goldgeier, George Washington University; Hanns W. Maull, University of Trier; Steffen Kern, Deutsche Bank; Soo Yeon Kim, National University of Singapore; and Iskander Rehman, Science Po.

To deal effectively with ongoing changes in world politics, the report offers a three-part strategy.

First, there should be a new division of labor among the members of the transatlantic community Simply put, America has vital security interests and commitments in East Asia, and Europe does not. European security concerns, in contrast, are closer to home. Europe, consequently, should take more responsibility for the challenges in Eastern Europe and in the Mediterranean, while the United States should direct its focus more to challenges arising in Asia.

Second, the members of the transatlantic community need to cultivate a new mindset about their roles in the emerging interdependent, but multipolar world. The United States, after years of hegemony, must recognize that it can no longer lead through a reliance on hard power, but must lead by example and by contributing to global problem-solving. It will also need to be more realistic about matching its aspirations and commitments to its diminishing capabilities. Meanwhile, Europe needs to rid itself of a mindset of dependence on the United States and its tendency to focus inward, and develop its own abilities to solve problems in its neighborhood and beyond.

Third, the transatlantic community needs to proactively lead in recasting global bargains in the face of the ongoing diffusion of power and wealth. Working with rising powers will need to be a primary objective, but this should be built upon a solid transatlantic base.

Report Policy Proposals:

Macroeconomic policy coordination: The United States, the EU, and China should establish regular trilateral meetings on macroeconomic policy cooperation to inform each other about policy issues and measures of common interest in the areas of monetary, fiscal, and regulatory policy;

Trade: The United States and the European Union should pursue a two-pronged strategy to sustain an open, multilateral trading order. They should push for the rapid completion of the Doha Round. At the same time, in pursuing separate free trade agreements, they should actively coordinate on a set of core provisions that advances the transatlantic agenda for multilateral trade liberalization;

Energy and climate change: The United States and the European Union should commit themselves to the principle of progressively increasing the price of CO2 emissions over the next decade through appropriate measures of taxation and/or emission trading;

Security: The United States, NATO, and the European Union should comprehensively redefine and reshape their joint strategies for global peace and security through a new division of labor between them. While the United States increasingly focuses on Asia, Europe should take care of its own security and stability and that of its neighborhood to the East and the South. "Division of labor" does not equate with exclusion; on the contrary, it implies a common purpose and jointly set strategies, and coordinated but differentiated implementation through national and joint efforts;

UN reform France and the United Kingdom should closely synchronize their respective positions in the United Nations Security Council and align this common position with the European Union’s High Representative and the other member governments. The aim should be to work toward a common European policy in the UNSC. London and Paris should also commit themselves to make available to a non-European country one of their permanent seats as part of a comprehensive Security Council reform.

Theme