Business & Regulation

Can the US Regain the Lead in the Microchip Race?

Can the US Regain the Lead in the Microchip Race?

July 27, 2022

President Biden hopes the passage of the CHIPS Act will jumpstart American microchip production. But as Jason Hsu explains, subsidies will only go so far in the global competition to gain dominance in the semiconductor industry. 

Taiwan: A Risk Analysis Through the Lens of Hong Kong
Kwok, Dennis W. H., and Johnny Patterson. 2022. “Taiwan: A Risk Analysis Through the Lens of Hong Kong”. Read full text Abstract

Dennis W.H. Kwok and Johnny Patterson, May 2022

This paper aims to provide an overall risk analysis of the Taiwan Strait situation by using Hong Kong’s experience over the past three decades as a point of comparison. The authors focus on three areas where those watching Taiwan can learn from Hong Kong. Since Deng Xiaopeng’s rule, Hong Kong and Taiwan have been inextricably intertwined, with China intending to reunify both territories using the “one country, two systems” formula. There are, of course, fundamental differences between the situations in Taiwan and Hong Kong. But there are also many similarities from which one can draw useful lessons. In the past three decades, Hong Kong tried to preserve its liberal democratic values whilst coexisting under an authoritarian regime. Hong Kong’s experience proved that a liberal democratic society cannot survive alongside an increasingly aggressive and authoritarian Chinese Communist Party (CCP) regime. Taiwan essentially faces the same dilemma.

Hong Kong offers four key insights: First, Hong Kong provides a window through which to understand the modus operandi of Xi Jinping’s CCP. Political priorities trump all others —while CCP actions make sense within the system, they may confuse outsiders. Ultimately, Xi’s words should be taken literally and seriously. Second, the failure of the “one country, two systems” formula and Hong Kong’s collapse should not be lost on Taiwan. The so-called “United Front” tactics and the political polarization that occurred in Hong Kong are being emulated in Taiwan, with the Kuomintang’s (KMT’s) platform feeling increasingly untenable and anachronistic, especially in light of Hong Kong’s experience. Third, the infiltration of Mainland capital into Hong Kong over the past two decades has changed the underlying structure of Hong Kong as a business and financial center. The effect of ‘red’ capital made local Hong Kong and international business voices irrelevant. The authors saw their ability to influence and thereby moderate government policies waned over the years—leading to disastrous consequences for Hong Kong. Finally, Hong Kong has changed the geopolitical landscape in ways that have profound ramifications for Taiwan and how the international community perceives the CCP. The CCP openly walked back on an international treaty registered with the United Nations. The response of the international community and businesses reveals important lessons about the West’s vulnerabilities to this kind of geopolitical shock should the situation over the Taiwan Strait worsen.

Tony Saich on the Party and Private Business: Lessons from History

Published October 12, 2021

Written by Tony Saich, Director, Ash Center for Democratic Governance and Innovation; Daewoo Professor of International Affairs, Harvard Kennedy School

Should we be surprised by General Secretary Xi Jinping’s recent policy initiatives to re-exert control over the private sector? One prevailing view is that they mark a distinctive break with the past couple of decades, when China produced massive fortunes for a small elite in real estate and tech. Others argue that they’re necessary...

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Risk Mitigation and Creating Social Impact: Chinese Technology Companies in the United States

Wenchi Yu, April 2021

Chinese technology companies have become a topic of interest to not only the business and investor communities but also increasingly the national security and intelligence communities. Their scale and level of innovation present new possibilities and new competition as well as shape global trends. Yet the relationship of such companies to the Chinese government is often opaque. As a result, their growing integration into the global telecommunications system also casts doubt on their intentions and legitimacy.

This paper reviews key US policy developments under the Trump administration, both broadly toward China and more narrowly relating to trade and technology, and examines the business strategy of four Chinese technology companies operating in the United States. It outlines the benefits of a corporate risk mitigation approach that incorporates social impact creation as an integral part of business and nonmarket strategy for Chinese technology companies, in the United States, and elsewhere. However, this paper also argues that corporate actions can only go so far. Because technology necessarily involves concerns of national security, the role of government—and government cooperation—is essential. It is only through a combination of more locally engaged corporate actions and internationally agreed upon sectoral rules and standard settings that we will be better able to improve transparency and trust-building across borders.

Professor Stephen Goldsmith

Reforming the Curb: Using Technology to Create a More Equitable Streetscape

November 23, 2020

When Stephen Goldsmith, the Derek Bok Professor of Urban Policy and Director of the Ash Center’s Government Innovations Program, served as mayor of Indianapolis, Indiana, “I thought I was the mayor of parking. I don’t think anything mattered except parking in downtown Indianapolis.” Since Goldsmith last held the reins at city hall, the debate over how cities should best put to use curb space and sidewalks has only grown more intense as online delivery companies, ride sharing services, and commercial businesses all vie for...

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China's Great Hall of the People

An Uncertain Future for Hong Kong

May 28, 2020

As the National Party Congress, China’s annual legislative session, concludes, the Ash Center sat down with Director Anthony Saich, Daewoo Professor of International Affairs to discuss a new security law previewed during the convening that could define the future of Beijing’s relationship to Hong Kong.

An Uncertain Future for Hong Kong

Ash: The Chinese Communist Party (CCP) announced new security legislation that would put Hong Kong more squarely under China’s rule. Specifically, the law criminalizes acts of secession, subversion, and terrorism. Do you believe this effectively represents the end to “one country, two systems”?

Anthony Saich: Currently, we do not know the details of the law, this will now be worked out in detail by the Standing Committee of the National...

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Civic Responsibility: The Power of Companies to Increase Voter Turnout

Sofia Gross and Ashley Spillane, June 2019 

This case study provides an analysis and evaluation of the implementation of civic participation programs by companies aimed at increasing voter turnout. The United States consistently lags behind the majority of developed democratic nations in voter turnout, averaging less than half of the eligible voter population participating in midterm elections. The U.S. ranks 26th out of 32 developed democracies in percentage of eligible voters who participate in elections. Today, many companies have dedicated resources for corporate social responsibility projects aimed at strengthening society and building goodwill among employees, consumers, and the public. Voter participation initiatives align with the goals of social responsibility projects, as they address a critical societal problem (lack of engagement), while building goodwill with key stakeholders. 

3-in-1: Governing a Global Financial Centre
Woo, Jun Jie. 2017. 3-in-1: Governing a Global Financial Centre. World Scientific Publishing, 128. Publisher's Version Abstract

Jun Jie Woo, World Scientific Publishing, August 2017

3-in-1: Governing a Global Financial Centre provides a comprehensive understanding of Singapore's past development and future success as a global financial centre. It focuses on three transformational processes that have determined the city-state's financial sector development and governance — globalisation, financialisation, and centralisation — and their impacts across three areas: the economy, governance, and technology. More importantly, this book takes a multidimensional approach by considering the inter-related and interdependent nature of these three transformational processes. Just like the 3-in-1 coffee mix that is such an ubiquitous feature of everyday life in Singapore, the individual ingredients of Singapore's success as a global financial centre do not act alone, but as an integrated whole that manifests itself in one final product: the global financial centre.

The Fissured Workplace
Weil, David. 2017. The Fissured Workplace. Harvard University Press, 424. Visit Publisher's Site Abstract

David Weil, Harvard University Press, May 2017

For much of the twentieth century, large companies employing many workers formed the bedrock of the U.S. economy. Today, on the list of big business’s priorities, sustaining the employer-worker relationship ranks far below building a devoted customer base and delivering value to investors. As David Weil’s groundbreaking analysis shows, large corporations have shed their role as direct employers of the people responsible for their products, in favor of outsourcing work to small companies that compete fiercely with one another. Weil proposes ways to modernize regulatory policies and laws so that employers can meet their obligations to workers while allowing companies to keep the beneficial aspects of this innovative business strategy.

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