Far Eastern Studies N1, 2022

A new issue of the «Far Eastern Studies» N1, 2022 has been released [e-version].

Contents

Round table

Round Table «Sinology in Modern Russia: Problems and Prospects»

Politics

Voda K.R. Japan and U.S. in the Indo-Pacific Region under the J. Biden Administration

Ignatov I.A. Mongolian «Third Neighbor» Foreign Policy Concept: History, Features and Prospects

Trunov Ph.O. The Features of German Strategic Pervasion to the Far East in the Early 2020s

Ramich M.S., Gorbil P.R., Korosteleva E.I. Shaping of the U.S. Regional Security Framework in the Indo-Pacific Region in 2012–2020

Economics

Vakhrushin I.V. Chinese Companies on the US Stock Exchanges in the Context of Aggravation of Sino-American Relations: the Relationship of the National Markets, Delisting Risks and Possible Scenarios

Serbina E.M. Some Aspects of Chinese Policy Banks’ Activity at the Present Time

Wei Liyan, Wang Mengling. A Study on the Pilot Experiment of Fujian Pilot Free Trade Zone

State and Society

Chubarov I.G. Chinese Urban Development under the “New Type Urbanization”

Seliverstova Yu.A. Problems of Children of Internal Labor Migrants in Modern China: Analysis of Recent Studies

Military Build-Up

Lebedev V.V. The Soviet Military Administration and the Creation of the North Korean Police in 1945

History

Datsyshen V.G. Problems of the Conflict on the CER in the Works of Soviet Scientists of the First Half of the XX Century

Book Review

Leksyutina Ya.V. Textbook Review: Security Policy of the Countries of the Modern East / ed. D.V. Streltsov. Moscow: Publishing House “Aspect Press”, 2021. 280 p.

Scholar Jubilee

Anniversary of Valentina Petrovna Zhuravleva


Japan and U.S. in the Indo-Pacific Region under the J. Biden Administration

Kristina R. Voda

The article analyzes the approaches of the United States and Japan to the international political problems in the Indo-Pacific region at the beginning of the administration of the 46th President of the United States Joe Biden in 2021. It also aims to evaluate the perspectives of US-Japan cooperation in key areas. The article analyses the policies of the United States and Japan towards China. Japan supported J. Biden’s approach to confront China on a wide range of issues. By actively involving in the US-China confrontation government in Tokyo aims to strengthen its position in rivalry with China. However, it will not be easy for Japan to preserve the achievements of the «warm» period in Japan-China relations in 2018–2020 in the economic and humanitarian spheres. The article also analyses the approaches of the US and Japan to the situation on the Korean Peninsula, including the prospects for cooperation between Tokyo, Washington and Seoul towards DPRK. Difficult-to-resolve contradictions between Tokyo and Seoul in a short-term perspective will hinder large-scale cooperation of the parties with Washington. The article also analyses the perspectives of the concept of «Free and open Indo-Pacific region». Tokyo which sees the concept of «Free and open Indo-Pacific region» as a response to the expansion of Beijing’s influence in the region, is interested in developing economic cooperation with partners aimed at weakening dependence on China. The article also notes the increased importance of Japan in the United States’ Indo-Pacific strategy in the eyes of a number of American politicians and experts.

Mongolian «Third Neighbor» Foreign Policy Concept: History, Features and Prospects

Ivan A. Ignatov

This article studies the history and features of the «third neighbor» concept, which has determined Mongolia’s foreign policy since the 1990s, as well as the prospects for its change at the present stage. The author describes the circumstances of this concept’s emergence and the reasons for its adoption by the Mongolian leadership, then analyzes its characteristic features and its differences from the approaches of other «small states» pursuing foreign policy on the basis of the “multi-vector” principle. Among other things, the factors considered include the geopolitical situation in the region of Northeast Asia, the geographical position of Mongolia, its historical experience of being dominated by neighboring powers, the problems of its economy and the local elite’s desire to ensure the dominance of Western values ​​in the country’s political life after 1990. The author proceeds to study the motives and approaches of the «third neighbor» states towards partnership with Mongolia, noting the transition from the preferential provision of humanitarian aid at the initial stage to the implementation of mutually beneficial projects since the early 2000s. Special attention is given to the gradually emerging differences between the interests and priorities of Western and Eastern countries in Mongolia. This is followed by an analysis of the prospects for the «third neighbor» concept and the challenges it faces, associated, in particular, with the ever-escalating confrontation between the collective West and Mongolia’s closest neighbors — Russia and China. The author comes to the conclusion that third countries — primarily the United States — might, under certain conditions, try to force the Mongolians to choose between their main partners, just as it happened with certain other states close to Russia.

The Features of German Strategic Pervasion to the Far East in the Early 2020s

Philipp O. Trunov

The phenomenon of the cold war is a form of a new world political order formation. In this context the paper issues Germany`s approach to the participation in the US — Chinese confrontation and the emergence of Bundeswehr`s presence in Asian-Pacific region as a part of German attempts to become а world power. The author stresses the unreadiness of Germany to participate in the «containment» of the PRC in 2014–2019 and presents the reasons of this approach, including the Сold war between the Euro-Atlantic community and Russia. The article reveals a group of factors that predetermined Germany’s transition to accelerated variant of military penetration into the Far East in 2020–2021. These factors are the emergency evacuation of the Bundeswehr from Afghanistan, the COVID-19 pandemic, the coming to power of the Joe Biden`s administration. From February — March 2021 Germany has joined in putting pressure on China, but strictly limiting its volume and quality. The scientific paper researches the dynamics and the forms of German turn to advanced cooperation in the sphere of security and defence with Singapore and Japan at the turn of the 2010-s — 2020-s. The creation of AUKUS (2021, September 15) has become the strategic shock for Germany. This factor shows the illusory of official Berlin`s hopes for a complete rejection of Trump`s attitudes in US foreign policy by J. Biden. The paper pays special attention to the features and «narrow places» of German-Australian relations in military-political sphere since middle 2010-s until the beginning of 2020-s. In this regard the diplomatic mission of the first Bundeswehr`s war ship in the Pacific Ocean during the second half of 2021 is presented. The article concludes about the transformation of German military presence in the Far East and German participation in the Сold war in the region.

Shaping of the U.S. Regional Security Framework in the Indo-Pacific Region in 2012–2020

Mirzet S. Ramich

Pavel R. Gorbil

Elizaveta I. Korosteleva

This article examines the transformation of the US approaches to the implementation of foreign policy in Indo-Pacific region. It is noteworthy that with the change in the approaches of the US leadership to the structuring of the regional subsystem through the creation and maintenance of allied relations with a number of states in the region, the goal remains unchanged — ensuring security in the region while maintaining US leadership. At the present stage, the implementation of this goal is hindered by the growing influence of China in the Indo-Pacific region.

The authors of the article focused on identifying criteria that allow assessing the current situation in the region and the effectiveness of existing cooperation between the United States and the countries of the Indo-Pacific region within the framework of organizations and agreements. The research was conducted on the basis of an analysis of the behaviour of some regional players who have agreements with the United States and position themselves as their allies. The criteria for the study were the following aspects: participation in military exercises, the deployment of military bases, signed defence agreements, the availability of information exchange in the field of military technology, the presence of nuclear weapons, the absence of territorial claims at sea and participation in shipping operations. The authors analysed national documents, according to them it was possible to characterize the attitude of countries to the United States, China, as well as to identify the point of view of regional players on the security architecture in Indo-Pacific region and threats significant for the stability of this structure. The study proposed by the authors makes it possible to study the problems of ensuring security in the region, to identify the peculiarities of US policy in the studied space, to determine the tools of the United States to maintain its positions in Indo-Pacific region, as well as to assess the readiness of the allied countries to confront China together with the United States. In conclusion, the authors assess the effectiveness of the transformation of the US-centered regional security system in Indo-Pacific region.

Chinese Companies on the US Stock Exchanges in the Context of Aggravation of Sino-American Relations: the Relationship of the National Markets, Delisting Risks and Possible Scenarios

Ivan V. Vakhrushin

The article analyzes the relationship between national stock markets of China and the United States which results in conclusion about prevalence of indirect psychological connection between them. It also considers the issues related to future prospects of Chinese companies on the US stock exchanges and the risk of their delisting in the context of sharp aggravation of Sino-American relations and active actions of the US Securities and Exchange Commission (SEC), aimed at tightening the requirements for auditing, financial reporting and data disclosure by the US-listed foreign companies. The process of forming a new regulatory framework for delisting Chinese companies with adoption of the core Holding Financial Companies Accountable Act (HFCAA) is disclosed. The IPO scheme by Chinese companies through variable interest entities (VIE) is reflected, and related risks are identified. The competitive potential of national stock exchanges in terms of attracting Chinese IPOs is analyzed with conclusion about significantly stricter requirements and lengthy procedures on Chinese exchanges in comparison with American ones. It is assumed that presently the mass delisting of Chinese companies from American exchanges seems an unlikely scenario. At the same time, the full range of delisting scenarios is considered from the most preferred option for investors (conversion of American securities into shares on Chinese exchanges) to the worst (freezing of shares for an indefinite period).

The article was prepared within the project “Post-crisis world order: challenges and technologies, competition and cooperation” supported by the grant from Ministry of Science and Higher Education of the Russian Federation program for research projects in priority areas of scientific and technological development (Agreement № 075–15–2020–783).

Some Aspects of Chinese Policy Banks’ Activity at the Present Time

Ekaterina M. Serbina

The Chinese policy banks (the State Development Bank of China, the Export-Import Bank of China and the Agricultural Development Bank of China) were created with the goal of financing national projects both abroad and inside China. They play an important role in providing loans to green and social projects and concessional lending to small and medium-sized enterprises. It is expected that there will be growth in the financing of scientific and technical areas during the 14th Five-Year Plan (2021–2025).

In order to finance large-scale projects, the policy banks require a constant flow of funds. This article analyzes the main sources of the banks’ funding amongst which accepting loans from the People`s Bank of China and the issuing of bonds are in the lead. The two sources mentioned are characterized by reliability and constancy, but also have risks attached to them. These include limited sources of liquidity in general, increasing competition from local administrations which are also empowered to issue bonds, lending to low profit (but strategically important) projects, an implied long maturity period of medium and long-term loans, and other factors. Proof of sufficient capital is vital because policy banks have a key role regarding instruments for countercyclical regulation in the process of stabilizing the economy for example when funds were distributed through the banks to the most vulnerable sectors during the worst of the pandemic.

To improve the policy banks’ financial efficiency it has been necessary to draft a Policy Banks Act. This supports the development not only of national but also of commercial projects, the granting of more independence to branches in the search for and selection of projects (taking into consideration local/regional/international specifics), the diversification of liquidity sources and the establishment of compensation for losses sustained during repayment of failing loans, to improve risk management. This necessary next stage of banking reform is expected to be enacted during 2022–2023.

A Study on the Pilot Experiment of Fujian Pilot Free Trade Zone

Wei Liyan

Wang Mengling

Fujian Pilot Free Trade Zone is strategically positioned as «an experimental field for reform and innovation, a demonstration zone for deepening cross-straits economic cooperation and a new high ground for opening up and cooperation among countries and regions along «The 21st Century Maritime Silk Road». The Fujian Pilot Free Trade Zone has introduced an “Early and Pilot Implementation” policy in terms of accelerating the transformation of government functions, promoting investment and trade facilitation, innovating the cooperation model between Fujian and Taiwan, deepening financial reform and innovation, creating an open «Maritime Silk Road», etc. The Fujian FTZ devised a number of innovative projects, which are ready for implementation in other regions of China. However, there are challenges that have arisen in past years. In the future development, we can continue to exert our strengths in giving play to regional advantages, deepening cooperation with Taiwan Province, and continuously optimizing the business environment.

Chinese Urban Development under the “New Type Urbanization” Policy

Ilya G. Chubarov

The Chinese 7th national population census (2020) was held in the recent year of the «urbanization of a new type» state program. The successful management of the entire complex of urbanization processes becomes an important social and political task. Improving the living standards and social security of migrants acts as important components of the reduction of inequality and development of human capital. Census data shows that the program helped the government not only to support the growth of the number of urban dwellers but also to improve the quality of the process. The share of urban dwellers in Chinese population increased from 54.3% in 2014 to 61.4% in 2020, the number of cities larger than 5 million inhabitants reached 21. The Government lifted restrictions on obtaining permanent registration in cities less than 3 million inhabitants and issued more than 100 million intermediate type registration documents (juzhuzheng). Transparent and unified point-quota registration rules have been introduced in large cities, which usually rank applicants according to their age, education, length of residence, tax history and other parameters. These measures made possible expansion of the coverage of rural and nonresident migrants and their children by the social protection system. At the same time, contrary to the program’s guidelines, population of the largest cities continued to grow rapidly, and significant interregional and intraregional imbalances remained sharp. Share of the north-eastern part in the urban population of China continued to decline. The continuation of the program «urbanization of a new type» was not formally announced, however it is clear, that the urban system of the PRC will develop in line with the program’s guidelines in the next decade.

Problems of Children of Internal Labor Migrants in Modern China: Analysis of Recent Studies

Yulia A. Seliverstova

With China’s urbanization and its development in market economy, mass rural-to-urban migration expanded over the past 35 years. The change in the forms of parental migration (from single to pair and then family) has led to significant shifts in the situation with rural children, putting forward new research issues. Consequently, children affected by internal labor migration have greatly increased in number, reaching over 100 million people (about 70 million continue to live in villages, and more than 35 million have moved to cities with their parents). Using data from international research published for the past 3 years, we more accurately determined main characteristics of left-behind and migrant-children. Being a vulnerable group in rural China, these children now are facing many problems in mental, physical and psychological development. Due to the differences in the environment in which children grow up we examined the existing approaches of scholars on the impact of internal labor migration on each group. For rural left-behind children the most acute issues are low academic performance, limited educational resources, and disruption in the process of socialization. While urban migration is related to the issues of inclusion in education, cultural isolation, and other psychological problems.

The Soviet Military Administration and the Creation of the North Korean Police in 1945

Vasilii V. Lebedev

The liberation of Korea by the Red Army in August 1945 brought an end to the Japanese colonial rule and opened a new page in the history of Korea. However, the circumstances in which Korea met its liberation played a fateful role in the developments after the liberation. Division of the country into Soviet and American occupation zones became an essential background for the creation of two different political regimes. Their confrontation eventually led to the devastating Korean war, the consequences of which still vividly felt today across the 38th parallel.

This article focuses on the creation of the North Korean police force by the Soviet military administration. The police would become an important tool for establishing control over North Korea and will play important role in its political unification. Drawing from the Soviet archival evidence as well as several Korean-language sources this article argues that the creation of the North Korean police was not initially driven by political goals or goals of creating a military for the future North Korean regime. The evidence suggests that despite the direct nature of the Soviet control over North Korea, the creation of the police was primarily guided by the practical need of the Soviet command to overcome a number of serious issues that plagued North Korea from the very first days after the liberation.

One of the primary tools for the creation of the North Korean police force was the commandant offices. As the grassroots level organisation of the Soviet military administration tasked with implementing its policies, the commandant offices were directly responsible for monitoring and controlling the work of the police. Equally important, however, was their role in fighting the crimes committed by the soldiers and officers of the Red Army.

Problems of the Conflict on the CER in the Works of Soviet Scientists of the First Half of the XX Century

Vladimir G. Datsyshen

The article is devoted to the problem of the Conflict on the Chinese Eastern Railway in the works of Soviet orientalist experts — contemporaries of the events. The Conflict on the CER is the Soviet-Chinese confrontation on the Chinese Eastern Railway, starting in 1924. The chronological framework is determined by the history of the Conflict of the Chinese Eastern Railway — the period of the second half of the 1920s — early 1930s. Already at the end of 1924, the first conflict between the Soviet and Chinese sides of the road took place. The conflict at the Chinese Eastern Railway in early 1926 moved to a qualitatively new level. The Soviet-Chinese Conflict at the CER in 1929 was already a military conflict between the two countries. In the 1920s-1930s little attention was paid to this conflict in Soviet literature. The reason for the increased interest of the public and expert experts in the Conflict at the Chinese Eastern Railroad was the sharp aggravation of the conflict and the military events of 1929. Already in 1929, brochures describing the military conflict were published in Siberia, and detailed materials on the problems of the Conflict at the Chinese Eastern Railroad appeared in periodicals. The source for the research was the publications of the contemporaries of the events. The works of Soviet orientalists such as B.N. Melnikov, S.A. Dridzo, A.A. Ivanov, G.N. Zarkhin, G.B. Skalov, V.Ya. Aboltin. In addition, other publications by various authors devoted to the Soviet-Chinese Conflict at the Chinese Eastern Railway in 1929 were considered. Analysis of the publications made it possible to conclude that an extremely simplified picture of events was given in the Soviet scientific and popular science literature, the analysis of problems was replaced by propaganda and ideological clichés, the authors reduced the causes of the conflict to the intrigues of external enemies.