New Proposals on Taiwan Arms Sales

WINTER 2014 Highlights

The EastWest Institute’s policy report, Threading the Needle: Proposals for U.S. and Chinese Actions on Arms Sales to Taiwan, was the topic of a panel at the Woodrow Wilson International Center for Scholars in Washington on January 14, 2014. The report’s authors, EWI’s Piin-Fen Kok (pictured) and David J. Firestein, presented their findings and recommendations to an audience of think-tank experts, journalists, government officials and representatives of the diplomatic community. [PAGE 3]

www.ewi.info | t: @EWInstitute | f: EastWestInstitute Learn more about EWI ideas at: www.ewi.info/ideas/all Ideas Latest news from EWI‘s Initiatives President’s Report

John Edwin Mroz Resetting the System President and CEO Authors Greg Austin, professorial he EastWest Institute put in a strong performance in 2013, both in terms of fellow at EWI, and Sandro Gaycken, thought leadership and action in areas as challenging as cybersecurity, Afghani- senior researcher in computer Tstan’s relations with its neighbors and China’s core relations with the United science at the Free University States. EWI’s report, Threading the Needle: Proposals for U.S. and Chinese Actions of Berlin, outline specific steps on Arms Sales to Taiwan, has brought significant figures back to the discussion table to be taken to protect Internet on this key issue. The Woodrow Wilson International Center for Scholars showcased infrastructures around the globe. the report and featured EWI authors David Firestein, Perot fellow and vice president of Strategic Trustbuilding, and Piin-Fen Kok, director of the China, East Asia and United Resetting the System offers bold States Program. recommendations while admitting that the necessary changes are EWI issued an important report at the recent Munich Security Conference, A Measure expensive, and that the traditionally of Restraint in Cyberspace: Reducing Risk to Civilian Nuclear Assets, written by Policy free, mostly unregulated market Innovation head Greg Austin and Senior Vice President Bruce McConnell. It takes as its may balk at some of them. starting point the inability of governments and the private sector to get together and Governments can create the create rules of the road. Its key recommendation: all cyber players could learn from incentives for this new approach arms control processes of past decades to make real progress in this area. In the ses- to cybersecurity, but the private sion at MSC on “Rebooting Trust? Freedom vs. Security in Cyberspace,” which I had the honor to moderate, there was a stunning display of the gulf of mistrust between Europe sector will need to take the lead in and the U.S. since the Snowden revelations of NSA spying on allies. implementing them.

I am delighted to share with you some of our work over the last few months in this issue “We call for a new ecology of of Highlights. They include our unique 5th meeting of the U.S.-China Sanya Initiative of cybersecurity. It is based on the military leaders and our 6th U.S.-China High-Level Political Party Leaders Dialogue. disruptive concept of highly secure computing, which relies primarily We are excited that there has been a dramatic increase in unique visitors from countries on much stronger passive security around the world to our new website. May I encourage you to visit www.ewi.info to measures, independent of attack check out its state-of-the-art capabilities and engaging social media platforms. attribution,” they write. The world continues to change at high speed, and although there are signs of hope, there’s much work to be done. Thank you for your engagement and support of the Read the full report at: EastWest Institute. www.ewi.info/idea/resetting-system

New EWI Website that began in 1980. As our designed to create a user- in EWI’s forward-looking new tagline states, EWI friendly experience. New digital communications The EastWest Institute is about “Building Trust, features include EWI Now, strategy, the new website is pleased to announce Delivering Solutions.” a selection of five must- sets the stage for further the launch of its new The site’s refreshed read stories, and the Ideas additions to the institute’s website, boosting our look combines bright section, sharing the rich online presence in the online footprint and better colors, strong visuals, intellectual output from coming months. reflecting the depth and geographical positioning staff, fellows and board global span of our work and interactive content members. A crucial step

2 EWI Highlights | WINTER 2014 www.ewi.info Learn more about EWI ideas at: www.ewi.info/ideas/all Read the full report at: www.ewi.info/idea/measure-restraint-cyberspace

A Measure of Restraint in Cyberspace

In the report, A Measure of themselves to making civilian potential risks to humanity Kostyuk and Eric Cappon Restraint in Cyberspace: nuclear facilities off limits for and the planet, nations propose four steps that Reducing Risk to Civilian cyber attacks. According to should refrain from attacking will insulate these peaceful Nuclear Assets, introduced EWI Senior Vice President civilian nuclear assets using assets from attack while by Nobel Peace Laureate and former Homeland cyber weapons.” a more comprehensive Mohamed ElBaradei, EWI Security cyber official Bruce McConnell and EWI co- approach to the cyber arms urges all parties to commit McConnell, “Given the authors Greg Austin, Nadiya race evolves.

Threading the Needle: New Proposals for U.S. and Chinese Actions on Arms Proposals Sales to Taiwan U.S. arms sales to Taiwan constitute on Taiwan one of the most contentious issues in the bilateral relationship between the Arms Sale U.S. and China. The result of two years of research and discreet consultations, Threading the Needle is the first report by a U.S.-based think tank to conclude publicly that both the U.S. and China have, for their own reasons, not fully complied with their commitments to each other on the issue of U.S. arms sales to Taiwan.

The report recommends a set of unilateral and voluntary actions that are specific and broadly commensurate in scale and impact. For example, it proposes that the U.S. cap its [CONTINUED FROM PAGE 1] annual arms deliveries (as opposed Moderated by Robert M. to announced sales) at a level that Hathaway, director of the Wilson complies with the key stipulation of Center’s Asia Program, and the U.S.-China Joint Communique of co-sponsored by the Kissinger August 17, 1982, adjusted for inflation. Institute on China and the “A significant and To date, Threading the Needle has United States, the panel focused Read the full report at: bold reframing of an received extensive media coverage in on ways to reduce the mistrust www.ewi.info/idea/resetting-system Taiwan, China and the U.S. that the issue of U.S. arms important and long- sales to Taiwan has historically standing issue…this generated in the U.S.-China study merits serious Read the full report at: relationship. Joining the authors www.ewi.info/idea/threading-needle-report of the report were Richard C. high-level attention.” Bush, director of Brookings’ Center for East Asian Policy Studies, and Zhou Qi, senior General (ret.) fellow and director of American James L. Jones Politics at the Chinese Institute former U.S. National of American Studies (CASS). Security Advisor www.ewi.info www.ewi.info EWI Highlights | WINTER 2014 3 Learn more about EWI’s events at: www.ewi.info/events-all

Women at the Tables of Power

As part of the “Women, Peace and Security” partnership, EWI’s Parliamentarians Network for Conflict Prevention and Women’s Action for New Directions (WAND) brought together more than 100 Events U.S. state legislators and international Reports from EWI’s major meetings parliamentarians in Washington, D.C., from

“I think we should give full play to the in-depth nature of these exchanges so that their impact will be taken into consideration in the foreign policy decision-making of both countries.”

Wang Jiarui Head of the Communist Party of China Delegation

6th U.S.-China High-Level Political Party Leaders Dialogue Afghanistan Reconnected As part of the ongoing U.S.-China The EastWest Institute convened investment after the U.S. withdrawal High-Level Political Party Leaders “Afghanistan Reconnected,” an in 2014. For the near future, the Dialogue, organized by the Abu Dhabi Process Meeting on objective is to avoid a recession and EastWest Institute in partnership Afghanistan’s investment potential, the reversal of economic gains won with the International Department in New Delhi at the Federation of over the last decade. of the Communist Party of Indian Chambers of Commerce China (CPC), a delegation of U.S. and Industry’s (FICCI) Federation Participants acknowledged that Democratic and Republican Party House, from November 19-20, 2013. Afghanistan’s economic potential leaders met with CPC senior High-level representatives who cannot be fully developed without officials in Beijing and Nanjing, attended included: Afghanistan’s strong political will, a more efficient China from November 18-21, Finance Minister Dr. Hazrat Omar regulatory framework and high- 2013. It was the highest level of Zakhilwal and India’s former quality national institutions. To engagement between the three Foreign Minister Kanwal Sibal, as mitigate security challenges, a parties ever convened. well as other participants from key impediment for investment, India, Afghanistan, Pakistan, U.A.E., they emphasized, the government The delegation was headed Turkey, the U.S., the EU, Central must engage local stakeholders by Howard Berman, former Asia, Iran and China. in economic projects. The local U.S. Representative (D-CA) population should benefit from and chairman of the House The aim of EWI’s third consultation investments in gas pipelines, Committee on Foreign Affairs, and was to explore investment electricity transmission grids and Anthony Parker, treasurer of the opportunities in the trans- mining. Republican National Committee. Afghanistan energy and transport In a breakthrough for the U.S.- corridors and in the country’s A fourth consultation to China High-Level Political Party mining resources, and to attract be held in spring 2014 will Leaders Dialogue process, this both regional and international assess the implementation of meeting was the first to include direct investment. Representatives recommendations of the Abu Dhabi sitting party officers as well as of governments from the region and Process on economic security in staff from both U.S. parties. beyond recognized Afghanistan’s Afghanistan. The CPC delegation was led potential for business, trade and by Wang Jiarui, vice chairman of the National Committee of

4 EWI Highlights | WINTER 2014 www.ewi.info Learn more about EWI’s Parliamentarians Network at: www.pncp.net

September 29 to October this gathering included at-Large for Global Women’s of UN Security Council 1, 2013. Following the first participation in WAND’s Issues, was the keynote resolution 1325 on Women, meeting in Ankara with women biannual conference, “Women speaker. Peace and Security. U.S. state legislators and at the Tables of Power,” and The conference featured the parliamentarians from the capacity-building breakout Parliamentarians Network’s wider MENA region, including sessions. Melanne Verveer, critical role in advocating for Afghanistan and Pakistan, United States Ambassador- the successful implementation

“I think we should give full play to the in-depth 5th U.S.-China “Frankness and nature of these exchanges so that their impact openness is really what will be taken into consideration in the foreign Sanya Initiative develops friendships policy decision-making of both countries.” and relationships and what allows this forum Wang Jiarui Head of the Communist Party of China Delegation to be so successful.”

General (ret.) 6th U.S.-China High-Level Political Party Leaders Dialogue Walter L. Sharp Former Commander of the Chinese People’s Political the Republic of Korea-U.S. Consultative Conference Combined Forces Command (CPPCC) and the minister of the International Department of The EastWest Institute, Chengdu and also Islamic extremism the CPC’s Central Committee in partnership with met with General and managing the (IDCPC). the China Association Zhang Yang, director U.S.-China military-to- for International of the General Political military relationship. The visit occurred a week after Friendly Contact Department of the Both sides agreed the 18th Central Committee of (CAIFC), convened PLA and member of that cultivating the CPC concluded its Third the 5th meeting of the Central Military communication and Plenum. Dialogue sessions the U.S.-China Sanya Commission, and mutual understanding placed special emphasis on the Initiative, which took General Li Zuocheng, between their outcomes of the plenum and place from December commander of the militaries is essential their implications for economic 9-13, 2013. Senior Chengdu Military Area. for fostering the and political reform in China. The retired flag officers of cooperation necessary discussions also addressed the the U.S. Army, Navy The Chengdu dialogue to address the world’s current political landscape in the and Marine Corps sessions covered a most difficult issues. U.S. Delegates explored ways to traveled to Beijing range of military and build mutual trust between the and Chengdu, China political topics of Since 2008, the Sanya two countries as part of a “new to meet with retired importance to the U.S. Initiative has regularly type of major-power relationship.” senior generals of and China. Discussion brought together the Chinese People’s focused on Taiwan; retired American The U.S.-China High-Level Liberation Army cybersecurity and and Chinese senior Political Party Leaders Dialogue (PLA) to discuss regional security in generals in order seeks to build understanding and critical issues in the Northeast Asia; and to build stronger trust between political elites from U.S.-China military-to- addressed other military-to-military ties the U.S. and China through an military relationship. issues such as the U.S. between the U.S. and exchange of views on governance The delegations spent rebalancing strategy China. EWI expects to and foreign policy issues. EWI two days in off-the- to Asia, North Korea, host the next round in expects to host the next round in record dialogue in the East China Sea, the U.S. in 2014. the U.S. in 2014. www.ewi.info www.ewi.info EWI Highlights | WINTER 2014 5 To learn more about EWI family, visit: www.ewi.info/people/all People Stories from EWI’s network of change agents

EWI Leaders: John Hurley

EWI Board Member John people would tell him were at both the enterprise What are the issues that are Hurley, recently voted 2013 impossible to solve. His and service-provider level, difficult to solve because Director of the Year by mission has been to try globally. And so it was a you’re dependent on a EWI’s staff, is the founder to solve these issues and natural fit—to try to help government, another and managing partner of make the world a safer out in cyber at the institute industry or a foreign Cavalry Asset Management, place. made obvious sense. country? For me, it’s and a lecturer in Finance those pieces of the cyber at the Stanford Graduate Let’s talk a bit about your What specific issues problem—that are no one’s School of Business (GSB). own organization, Cavalry within the realm of responsibility, and that At the closing of EWI’s Asset Management. cyberspace are you most are extraordinarily difficult 2013 World Cyberspace How did it come about? interested in? for any individual or small Cooperation Summit, What is your long-term group of individuals to solve we interviewed Hurley to mission? One of the great benefits on their own—that are most discuss his experience of this conference [EWI’s interesting. I think that with the institute and his The mission of my firm World Cyberspace should be the institute’s thoughts on cyberspace is pretty simple: to make Cooperation Summit IV] focus. opportunities for EWI. money for our clients over is that it helps distill ideas. time by moving quickly to I’ve been to a couple of the What are the benefits of How did you first come to risk-adjusted terms. I run an institute’s conferences, working with EWI, now hear about EWI? How did investment firm based here, I’ve been to countless that you are a director? you become involved with in San Francisco, and also meetings discussing these the institute’s mission? in Asia. We invest in public issues with really smart I’ve been on several boards, and private companies on people, and I think I had an and any time you take I was introduced to John behalf of our clients, and epiphany in this process: on a board role, you have Mroz through a friend of on behalf of ourselves. So, where EastWest can be limited time and energy. You mine here in the Valley, our mission is simple: try to most effective in cyber. have to convince yourself Mark Andreessen. John find great companies and In the past, if you asked that the mission of the visited my office. As he generate great returns from a stakeholder, whether a organization you’re serving described EWI to me, those investments. technology executive, a is something that means a one explanation stood regulator or a government lot to you, something where out: it’s both the “what How did you first get official—you name it—the you can make a positive convinced me then” and involved in cybersecurity problems mentioned were impact. I told John when I what I use now when I’m work? on the public-private divide. took this spot that I have trying to explain what the Now, this is where you find limited bandwidth, but that institute does. The Geneva It was sort of a natural fit opportunities for EWI: the if I joined, I would devote Convention proves that at the institute, given that intersection between a the bandwidth to it. And even people who are trying the focus of my firm is big problem and crucial it’s been great. I think the to kill each other actually technology investments. It’s variables beyond your organization continuously agree on some things. John been true for quite some control. makes an impact and does said he’d devoted his life time that security is central so in impressive ways. to finding problems that to a good IT environment,

6 EWI Highlights | WINTER 2014 www.ewi.info To learn more about EWI family, visit: www.ewi.info/people/all To get the nextgen perspective, or to submit, go to: ewinextgen.tumblr.com

nextgen: Get Involved!

The EastWest Institute believes that young professionals have a unique perspective on international issues and tries to capture this perspective on the nextgen blog. This blog is a platform the EastWest Institute provides to the next generation of policy and business professionals to encourage dialogue between current and future world leaders.

nextgen’s Second EWI Legacy: Essay Competition Leo Schenker Winner Announced The EastWest Institute’s nextgen essay competition, seeking submissions of at most Leo Schenker recalls his first A respected business leader in 800 words from under-35s, introduction to the EastWest the paper industry, Schenker has was held for the second time Institute, when a young John Mroz also been an ardent supporter this November. The primary stopped by his office at Central of charitable causes in New York criteria set by the judges were National-Gottesman, Inc., the global City and elsewhere through his the originality, creativity and paper company he has helped to family foundation. EWI was an ideal viability of ideas presented lead in various roles since 1949. The fit for Schenker’s philanthropic in each essay, together with two men formed a fast friendship interests. He became a mainstay at the popularity of each entry based on a mutual interest in the institute, serving on the board among EWI Facebook fans. This politics and international affairs, and playing an integral role in our year’s theme focused on the and Schenker was naturally drawn growth. global challenge of securing to the institute’s mission. In 1987 cyberspace and entrants were he made his first donation to EWI, By 1999, Leo Schenker was asked how they would make and along with his wife, Livia, has motivated to help secure the cyberspace safer. remained a loyal champion of our institute’s future with a larger work ever since. gesture—a legacy gift to EastWest’s The winning entry, “Towards endowment. By pledging a large Closing the Cyber Sanitation Schenker has lived a remarkable gift for the future rather than the Gap - Campaigning for Digital life, both personally and present, he aimed to positively Hygiene,” was written by professionally. Born in Vienna, impact our long-term goals and Svenja Post (age 30) and Austria in 1921, he and his family to set an example for his peers. Alexis Below (age 28), who later fled to the United States After Schenker signed the pledge are both currently working to escape Nazi persecution, an many other directors followed his as junior research fellows at experience that was documented lead, amounting to a substantial the Brandenburg Institute for by the USC Shoah Foundation’s investment in EWI. Leo and Livia Society and Security (BIGS). Visual History project. Shortly Schenker’s commitment helps In awarding Post and Below after arriving in the U.S., Schenker strengthen our ability to work first place, the institute hopes applied for an open position at towards solving critical global to draw attention to this kind Central National-Gottesman issues. We are grateful for their of innovative thinking from the that was advertised in The New continued friendship and for next generation. York Times classified section. He sharing in our vision of a more safe remained with the company for and secure world. This essay was also published over five decades, rising to various by the American Institute for senior management roles, where Contemporary German Studies Contact Sarah Neydon he consistently demonstrated his (AICGS) at Johns Hopkins ([email protected]) to learn how to University. loyalty and dedication. join the Schenkers in planning for a Legacy gift to the EastWest Institute. www.ewi.info www.ewi.info EWI Highlights | WINTER 2014 7 EWI on Facebook: www.facebook.com/EastWestInstitute EWI on Twitter: www.twitter.com/EWInstitute Coming Up

March 6, April 9-10, Berlin Brussels Afghanistan Reconnected: Russia and Allies, Creating Momentum for Re- Towards Post-2014 gional Economic Security April 5-7, Beijing Afghanistan Addressing economic security Summer Palace Dialogue Marcel de Haas, senior in Afghanistan post-2014, EWI The Summer Palace Dialogue (SPD) is a forum that research associate of convenes a series of high-level brings together economists from both China and the the Netherlands Insti- consultations on the economic United States to discuss cooperation between the two tute of International potential of Afghanistan and largest economies in the world. SPD is hosted by the Relations, will discuss the region, also known as the Chinese Economists 50 Forum. It spans two days: par- his new report Russia Abu Dhabi Process. ticipants spend the first day in private discussions and and Allies–Toward Post- then convene a half-day public session to summarize 2014 Afghanistan. their observations, analyses and conclusions with the press and a broader audience. For 2014, the Chinese E50 Forum has been coordinating with the Boao Forum to include more opportunities for U.S. and Chinese economists.

EastWest Institute New York Center 11 East 26th Street, 20th Floor New York, NY 10010 U.S.A.