China and US economic interdependence hasn't lessened

Ian Bremmer shares his insights on global politics this week with a look at the China-US economic relationship, North Korea's missiles tests, and the New York Times' investigation of the US drone strike in Afghanistan.

China owns more than $1 trillion US debt, but how much leverage do they actually have?

I mean, the leverage is mutual and it comes from the enormous interdependence in the economic relationship of the United States and China. And it's about debt. And it's about trade. It's about tourism. It's about sort of mutual investment. Now. There is some decoupling happening in terms of labor, increasingly moving domestic in terms of the China five-year plan, dual circulation focusing more on domestic economy, and in terms of data systems breaking up, the internet of things, being Chinese or American, but not both. And indebtedness is part of that. But I don't see that unwinding anytime soon. And certainly, the Chinese knows if they're going to get rid of a whole bunch of American debt, they wouldn't be as diversified in global portfolio. Not as great, it's much riskier. And also, the price of those holdings, as they start selling them down would go down. So, I don't think there's a lot of leverage there, frankly. I think the leverage is interdependent.


North Korea tested new long-range cruise missiles. What message is Pyongyang trying to send?

Well, they're medium-range missiles. They don't have the ability to hit the United States. And if you remember in the early Trump days, that was the red line. It also started reprocessing at Yongbyon, again their facility; that is, they had stopped that. I mean, clearly this is a couple of incidents where Kim Jong Un is angry that he's not getting engagement in any sanctions reduction from the Biden administration. Certainly no bilats, and so he's pushing a little bit. He wants more attention and he's going to get it from the Biden administration, but I don't think he's going to get much of a negotiating stance change. And in that regard, I would expect at some point more saber-rattling from Kim Jong Un. Maybe that could be more destabilizing. But what we're seeing right now are very early days.

What was revealed in the New York Times' investigation of the US drone strike in Afghanistan?

Well here, this is an ugly one. I mean, this is 10 Afghan civilians who were killed in this drone strike by the United States. President Biden, and seniors in the administration, and the Joint Chiefs, Milley, and others said that this was a strike that got a suicide bomber who was about to attack the United States and Afghan civilians at the Hamid Karzai International Airport. That was not the case. That information was faulty. The trigger finger was too quick. And as a consequence, the last act on the ground of the Americans at a 20-year war in Afghanistan was killing a bunch of civilians. It's horrible. Certainly, accountability needs to be made. The New York Times did a fantastic job of forensic investigating on the scene. They had to be applauded. Surprised it hasn't gotten more news, frankly, more coverage. Broadly though, now the US troops are all gone in Afghanistan, we are not spending as much time talking about it. So, but we still will, here at GZERO.

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We're just days away from COP26, the landmark global climate conference that's been dubbed the last chance to get the climate crisis in check. In the lead-up to the event in Glasgow, dozens of countries have released new ambitions to reduce their future carbon footprints. For years, climate activists and experts have called on governments to introduce carbon pricing schemes – either through taxes or emissions-trading schemes. So who's heeded the warning? We take a look at the top ten carbon emitters' share of global emissions and details about their respective national carbon pricing schemes.

Marietje Schaake, International Policy Director at Stanford's Cyber Policy Center, Eurasia Group senior advisor and former MEP, discusses trends in big tech, privacy protection and cyberspace:

Do cryptocurrencies make it harder to enforce foreign policy sanctions?

Well, that is exactly what the Biden administration worries about. As part of growing concerns of whether unregulated currencies undermine a whole host of policies, sanctions and foreign or trade policy should be a priority area. And just like others who wish to evade tracing of their wealth or transactions, the very states or their sanctioned entities should be assumed to resort to all options to evade restrictions while continuing to do business. So having cryptocurrencies undermining the ability to enforce strategic goals logically raises eyebrows in Washington.

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Back in August, when the Taliban took over, we asked whether anyone in the international community would recognize them. Now it looks like things are heading that way.

This week, the Kremlin hosted a summit with the Taliban that was attended by China, India and Pakistan, as well as all five Central Asian Republics.

The domestically-focused US, however, wasn't there. The US continues to maintain that the Taliban can't be trusted. But does it matter? In 2021 does a Taliban-led government even need American recognition to function and thrive?

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For Kevin Rudd, former Australian PM and now CEO of the Asia Society, the science on climate change is pretty much done, so the only unresolved issues are tech and — more importantly — lack of political leadership. He can't think of a single national political leader who can fill the role, and says the only way to get political action on climate is to mobilize public opinion.

Rudd joined for the first of a two-part Sustainability Leaders Summit livestream conversation sponsored by Suntory. Watch here and register here to watch part two Friday 10/22 at 8 am ET.

Taking place on October 21 and 22, the Sustainability Leaders Summit will go beyond preexisting narratives and debate priorities for governments and industries ahead of COP26. Placing the spotlight on Asia's role in the global sustainability agenda, the event will address whether Asian countries and companies can achieve shared sustainability goals, and what is needed to help get them there. The summit will be co-hosted by Tak Niinami, CEO of Suntory Holdings, and Ian Bremmer, founder and president of Eurasia Group and GZERO Media. We will address three key questions: How can Asian countries, with the help of the private sector, achieve shared Sustainability Goals? Why does this matter? And what are the policy changes needed to bring it about?

Attendance is free and open to the public. Register to attend.

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The minutiae of supply chains makes for boring dinner table talk, but it's increasingly becoming a hot topic of conversation now that packages are taking much longer to arrive in the consumer-oriented US, while prices of goods soar.

With the issue unlikely to be resolved anytime soon, right-wing media have dubbed President Biden the Grinch Who Stole Christmas, conjuring images of sad Christmas trees surrounded by distraught children whose holiday gifts are stuck somewhere in the Pacific Ocean.

It hasn't been a good run for Uncle Joe in recent months. What issues are tripping him up?

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Ian Bremmer shares his insights on global politics this week with a look at the NBA's latest rift with China, Brazil's Senate investigation, and COVID booster shots.

China wipes Boston Celtics from NBA broadcast after the "Free Tibet" speech from Enes Kanter. Is NBA boxing itself into a corner?

Nice mixed sports metaphor there. NBA has some challenges because they are of course the most progressive on political and social issues in the United States among sports leagues, but not when it comes to China, their most important international market. And you've seen that with LeBron James telling everyone about we need to learn better from the Communist Party on issues like Hong Kong and how Daryl Morey got hammered for taking his stance in favor of Hong Kong democracy. Well, Enes Kanter's doing the same thing and he's a second-string center. Didn't even play yesterday and still the Chinese said that they were not going to air any Boston Celtics games. Why? Because he criticized the Chinese government and had some "Free Tibet" sneakers. This is a real problem for a lot of corporations out there, but particularly publicly, the NBA. Watch for a bunch of American politicians to make it harder for the NBA going forward, saying how dare you kowtow to the Chinese when you're all about "Black Lives Matter" inside the United States. No fun.

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