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Business and Finance

China’s Domino Tactics Boost Infrastructure Bank

President Jacob Zuma receiving the President of the People’s Republic of China, Xi Jinping in Pretoria in March of 2013. Image: GovernmentZA/Flickr

This article was originally published by the CIPS Blog, hosted by the Centre for International Policy Studies on 22 March 2015.

China is looking ever the experienced super-power. In a week it has scooped up all the important European dominos, humiliating a U.S. government which has lobbied hard to block the launch of China’s new $50b Asian Infrastructure Investment Bank (AIIB).

The dominos have fallen quickly. Last week it was the UK’s turn to join, preferring its commercial interest and geo-political judgment over its friendship with the U.S. Now it is a coordinated set of EU announcements from France, Germany and Italy. The driver was their desire to be well-connected economic partners in Asia, but there was also an element of blowback on U.S. geo-political arrogance, be it spying on Angela Merkel or military jingoism towards Russia.

Sick Defense: How to Foster an Affordable, Innovative Defense Industrial Base

Two fighter jets refueling while in the air. Image: Defence-Imagery/Pixabay.

This article was originally published by War on the Rocks on 19 March, 2015.

The U.S. defense industrial base provides America and its allies with the capabilities to deter, engage, and defeat adversaries decisively. This “arsenal for democracy” must be a source of technological advantage at a price tag the taxpayers can afford. A healthy U.S. defense enterprise has proven a decisive lever in America’s success in past conflicts and a critical tool to maintaining the peace. Yet the relative strength and vitality of our industrial base is at risk. The Department of Defense (DoD) has reacted with alarm at flagging research and development (R&D) across industry. This has motivated U.S. defense officials to increasingly reach out to commercial technology providers for solutions. However, as their recent visit to Silicon Valley demonstrated, not everyone is chomping at the bit to work with the Pentagon.