EU-China trade talks: More than just economics

The in-principle agreement between the EU and China over the EU-China Comprehensive Agreement on Investment (CAI) is significant both from an economic and geopolitical standpoint.

The first round of talks for EU-China CAI began in January 2014 (it was only in 2016 that there was some agreement between both sides on the broad contents of the CAI). Ties between the EU and China too had witnessed a sharp deterioration in the aftermath of the covid-19 pandemic, and a number of EU member states, including Germany, Spain, and Italy, had tightened FDI regulations with an eye on preventing Chinese takeover of companies, especially in sensitive sectors like security.

In the month of September, while commenting on the possibility of the CAI, the European Commission President Ursula Von der Leyen had stated: “China has to convince us that it’s worth having an investment agreement.”

Key contents of the agreement

The CAI will ensure a uniform arrangement for the whole of Europe with China. The key issues which will be addressed through the CAI include; resolution of disputes, greater transparency with regard to Chinese state subsidies, and curbs on China’s practice of asking foreign investors to share their technology in lieu for market access.

China has also agreed to address issues pertaining to sustainable development – such as environment and climate (China has agreed to implement the Paris Agreement on climate change). Beijing has also agreed to implement the International Labour Organisation (ILO) conventions.

According to an EU official, substantial commitments have been received from China on three issues: market access, level playing fields, and sustainable development. One of the strong backers of the CAI has been the German Chancellor Angela Merkel.

The deal will provide the EU greater access to China’s market. While the EU provides a significant amount of market access to China, the same can not be said of Beijing. Beijing is supposed to have made a firm commitment to the EU towards greater market access, especially in manufacturing (which makes up more than half of EU’s investment in China, including the automotive sector and basic materials).

Geopolitical implications

The deal has an important geopolitical dimension to it. While in the aftermath of the covid-19 pandemic, ties with the Western world, including the EU, had witnessed a downward spiral, this deal is important in terms of symbolism. Chinese media publications have hailed the finalization of this agreement, emphasizing the point that the EU has adopted an independent stance vis-à-vis China and not followed Washington’s line.

Gao Jian, a scholar at Shanghai International Studies University, states:

Deeper China-EU ties will decrease possibility that the US will be able to hijack Europe for its anti-China chariot. Hopefully, the completion of the China-EU BIT talks will sound an alarm bell to the US administration and send this message: cooperation is the only way out for China-US relations.

If one were to look at US reactions, it is not only officials in the Trump Administration (which has a little over two weeks in office) who have been skeptical, but those from the incoming Biden Administration as well. Matt Pottinger, Trump’s Deputy National Security Advisor, has stated:

Leaders in both U.S. political parties and across the U.S. government are perplexed and stunned that the EU is moving towards a new investment treaty right on the eve of a new U.S. administration.

One of Biden’s key thrusts has been on working with the EU, and his pick for NSA chief, Jack Sullivan, had said that the US would like to work with the EU on common concerns vis-à-vis China’s ‘economic practices.’ Many observers argue that the decision of the EU could drive a wedge between the EU and the US, and this was one of Beijing’s main aims. It has also been argued that trilateral economic cooperation between Japan, the EU, and the US vis-à-vis China could also be impacted by the CAI.

Conclusion

In conclusion, the EU has sent out a clear message: that it would like to chart its own course given that it has its own economic interests, and not necessarily toe the US line vis-à-vis Beijing. For China, it is important in terms of messaging, as is evident from the tone of the Chinese media who are trying to dub this as a snub by Brussels to Washington DC. While US President-elect Biden has sought joint cooperation with the EU, the EU and the US will need to be on the same page with regard to dealing with China.

Next

I have to report that I think my advancing age is not preventing me from gathering facts and exercising criticality. (Sorry, Joe; I don’t mean to put you down. – Joe Biden and I are the same age. But, I know what I am talking about.)

The year 2020 was rough, of course, not so much for me or for my wife Krishna, as for our children and others we love. For the two of us, sheltering in place did not really change our habits all that much except that our shopping for ourselves became progressively more limited. We didn’t party much before; we did not party in 2020. We had not partied that much in 2019. (That’s unless you count staying up until eleven pm with a small glass of Marsala as partying.) We might start partying in 2021 but it’s not all that likely!

The COVID affair did two things for me. First it reminded me of what a thin veneer rationality really is in Western society. We saw many lose their cool and accept the unacceptable. I was reminded also of something I knew in my bones, from thirty years of teaching: Even otherwise educated people don’t know how to deal with simple numbers. So, 320,000 excess deaths from the C-virus for a population of 320 million correspond to an excess death rate of 0.001. That’s one per thousand; it’s a very small figure. (I am deliberately leaving aside the idea that the number of deaths from COVID is almost certainly overestimated in this country. One problem at a time works best.) If people understood how small the number is, they would respond accordingly that is, with calm, perhaps. The evidence of innumeracy is all over our media, and all over Facebook, on all political sides. I don’t know why we keep doing such a piss-poor job teaching basic math. (It’s been like this as far back as I can remember.) Perhaps, it’s because people who can’t count don’t know that they can’t count.

Speaking of innumeracy, another topic rises to my mind irrepressibly. Above, I was referring to the task of interpreting simple fractions for example. There is something else missing among those, specifically, who are tasked with explaining what causes what, and who take the task seriously. People so engaged have always had to deal with two problems. First, there are multiple real causes to the thing they wish to understand, multiple causes of different strengths. So, weight gain is influenced both by calorie intake and by amount and intensity of exercise; fact. Calorie intake counts more than exercise. Second, there are possible causes that may not be causes at all. So, in addition to the two causes above, one may believe that weight gain is influenced by the ambient temperature. (It’s not.) Well it turns out that there is a series of tools that help understand better both kinds of problem. I mean much better.

There exists a toolbox called “econometrics” that does exactly that. It’s far from new. I learned econometrics in the seventies, and I was not a pioneer. Media explainers have evidently no acquaintance with it and probably don’t even know the tools exists. Now, I don’t want to give the wrong impression, learning econometrics is not light intellectual lifting but it’s within the reach of any smart person with a little time. I am baffled by the fact that something so obviously useful to figure out with real data whether X causes Y, in addition to Z, has failed to leach into ordinary educated society in fifty years and more. It’s discouraging about the pace of, or even the reality of progress.

The second important thing that happened in 2020 is that government at all levels gave us striking examples of its incompetence, and further, of its tendency immediately to turn tyrannical when frustrated. In the US and in France (whose case I am following pretty closely in the French media), government decisions have ruined a good part of the economy without real explanation being forthcoming. I mean closing by force thousands of small businesses that have little or no chance of recovering. I mean closing schools which prevents some, or many parents from going to work. The explanations for such actions are too light-weight to be taken seriously and they are frequently reversed like this: X causes Y; Ooops! X does not cause Y, Ooops! X does cause Y, sort of… Sometimes, often, good government consists in doing less rather than more: “We don’t know; do what you think is right,” at the most local level possible.

And, speaking of everyday government incompetence: The state of California wants to eliminate all internal combustion engines cars (and my own little pick-up truck) within fifteen years, to replace them with all-electric vehicles. That’s in a state where the local (PG&E, in central California) power monopoly has chronic trouble merely keeping the lights on. So, the question arises: Does the State of California really not know or does it know and not care (because it’s all about saving the planet)? I am not even sure which answer I prefer.

In the US, in addition to the COVID pandemic, we had a half a year of riots and burning of businesses, all in large cities held by Democrats for a long time. The inability, or the unwillingness, to stop the civil strife was striking. It expressed either a stunning degree of incompetence, or of complicity with the rioters. One explanation does not exclude the other, of course: Personal cowardice can easily hide under ideological fellowship. And ideology can generate cowardice.

In the minds of small government conservatives like me, the minimal task of government is to keep order so that individuals and companies can go about their constructive business. Local government largely failed in America in 2020. Extreme libertarians were more right than I thought. I wonder, of course, how much worse it would have been if a liberal had held the presidency instead of Donald Trump.

Government demonstrated to me in 2020 that it tends to be both incompetent and tyrannical. The thought crosses my mind that if it were more competent, it would be less inclined to tyranny.

The riots were adroitly attached to protests against the deaths of black suspects at the hands of police in questionable circumstances. They were staged as anti-racist protests, and especially as protests against “systemic racism.” I have already written why I think the police killings of black citizens in general are not racist acts. (Note: This is a long article. It can be read in nine segments, for convenience.)

I have also argued that in today’s America, systemic racism is too hard to find to lose sleep over it. Black Lives Matter, the organization, did almost all of the staging. It’s an organization of professional Marxist revolutionaries. I believe they are merely using alleged racism as a means to trigger a revolution in the US, or at least, to make their brand of statism gain ground, or at worst, to earn some credibility among the ill-read but well-intentioned.

In spite of the mendacity of the BLM campaign in every way, it may have done some good simply by drawing attention. I have always thought that American society has never really digested the fact of slavery. I mean the fact that it was 250 years of unrelenting atrocities. Some good may come from greater and deeper knowledge of that past. Same reason I am horrified by the brutal removal of statues and by the biased (“woke”) erasure of history going on in the streets and in universities as I write. Not facing the legitimate grievances about yesterday is like asking for insidious and endless blackmail today. That’s what we have now. There is a better way.

Do I think the Democrats, some Dems, stole the presidential election? I am not sure. I am sure of two things however: Many Democrats in several locations tried to steal it as much as they could. Some have argue in their defense that it was just “normal” cheating, that it happens the same every year. I want to know more about that. The second thing is that – to my knowledge (I am educable) there have been few or no complaints of cheating against Republican entities. Electoral cheating is a Democratic specialty.

Stealing a word from conservative commentator, Mark Stein, I fear we are entering a post-constitutional era. I don’t know what to do about it. I wish secession were more practical. It’s happening anyway on a small scale with tens of thousands voting with their feet by leaving California and New York State. It’s a first step. If the federal government would shrink some, I could imagine that this sort of peaceful partial secession would work for all: a Middle America centered on Texas, and an Extreme America based in California and New York State. The two parts linked in a loose confederacy. (Oops, wrong word!) Unfortunately, there is no miracle in sight by which the federal structure will become more skinny, with a shorter reach.

2020 saw the dramatic introduction of censorship and also of guided thought throughout the social media. If capitalism is allowed to function, the giant privately held businesses responsible for these poisons, and first and foremost Facebook, will have to withstand the emergence of rivals that will compete on that basis, precisely. I have tried one such and it did not work for me. There is no reason why there can’t be more, better ones. In the worst scenario with which I come up, the forces of darkness cannot eradicate capitalism fast enough to prevent this from happening. That’s my optimistic prediction for 2021 and beyond.

Other interesting things have happened to me that are kind of hard by their nature to recall. Here is the main one. As anthropogenic global warming became the state religion in many places, including to an extent, in the US, its narrative lost its remaining credibility in my mind. (Ask me why.)

Finally, we saw again that Communist China is too big and too powerful for a country that does not share our values. I refer to mass imprisonment without trial and outside the law, extra-judicial kidnapping by the government, guaranteed non-freedom of the press. This is true even if most rank-and-file Chinese citizens are satisfied with their government. (They may well be.) I am not Chinese myself. Chinese economic power has to be restricted (even if doing so is unfair). The influence of the Chinese Communists in America must be constrained. If Finland, for example were as big as Communist China, I wouldn’t mind so much, or at all.

I wish all of us a better year, more wisdom, more intellectual honesty, the ability peacefully and firmly to resist creeping tyranny.

Nightcap

  1. The weirdest people in the world James Crabtree, Financial Times
  2. Finding Mrs Dalloway Jenny Ofill, New Yorker
  3. Trapped by Thucydides? John Sullivan, War on the Rocks
  4. The emergence of globalism Or Rosenboim, In The Long Run

New Zealand’s elections and the geopolitics of the Pacific

Introduction 

The convincing victory of Jacinda Ardern is important for more than just one reason. First, the 40 year-old Ardern’s centre-Left Labour party has won convincingly — securing 49% of the vote, and securing 64 seats in the 120 seat assembly. Ardern has delivered the biggest election victory for her party in half a century. The victory gives Ardern and her party the opportunity to form a single party government.  

Second, while there is often talk of a right-wing political discourse being dominant globally, it is important that a center-left leader has won. Many commentators of course would argue that New Zealand is a small country, with a small population of less than 5 million – and that not much should be read into the electoral result.

Third, Ardern’s successful handling of the Covid19 pandemic, along with other women leaders – including German Chancellor Angela Merkel, Taiwanese President Tsai Ing Wen, Bangladeshi Prime Minister Sheikh Hasina, and Denmark’s Mette Frederiksen – has been acknowledged globally. A study published by the World Economic Forum and The Center for Economic and Policy Research makes this point and has cited some of the reasons for the success of the these leaders. The success has been attributed to the fact that all these leaders were quick to react to the crisis. 

Fourth, at a time when the world is becoming insular, the New Zealand PM has been firmly pitching for open immigration policies, has taken a strong stance vis-à-vis Islamophobia (something which leaders of other liberal democracies have failed to do), and repeatedly argued in favor of a more inclusive society. In March 2019, shootings at a Mosque in Christchurch by white supremacists had resulted in the killing of 50 people. Ardern, while expressing solidarity with members of the community, donned a head scarve, or hijab, and this gesture was appreciated. In her victory speech the New Zealand PM stated that the world is becoming increasingly more polarized and that “New Zealanders have shown that this is not who we are.” 

The New Zealand PM has her task cut out on issues related to the economy (the economy had shrunk by 12% in the second quarter thanks to the impact of the lockdown). Like other countries, there have been many job losses. Some of the sectors which have witnessed job losses, such as retail, hospitality, and tourism – employ women (according to some estimates a whopping 90% of people who have lost jobs are women). Some commentators also believe that the Labour government has not been able to deliver on key promises related to housing, child welfare, and the economy. There is also an argument that Ardern’s first tenure was not transformational, and after her win the expectations from her will be much higher.

Foreign Policy Challenges  

New Zealand, in spite of being a small country, is important in the context of foreign policy issues. There are two important dimensions: New Zealand’s ties with China, and as a part of the 11-member Comprehensive and Progressive Agreement for Trans Pacific Partnership (CPTPP).

As far as New Zealand’s ties with China are concerned, there are various layers to the bilateral relationship. Jacinda Ardern’s government has largely gone along with other 5 eye countries when it comes to the issue of allowing Huawei entry into New Zealand’s 5G network. On issues pertaining to Hong Kong, the Uygurs, and the South China Sea too, New Zealand has taken a firm stance vis-à-vis Beijing. After the imposition of the National Security Law in Hong Kong, New Zealand suspended its extradition treaty with Hong Kong, and it also made revisions with regard to its policy on military and dual-use goods and technology exports to Hong Kong, subjecting the city to the same as the People’s Republic of China (PRC). 

During her speech at the China-New Zealand Summit, Ardern said: 

As you know, this has come to the fore recently around developments like Hong Kong’s new security law, the situation of the Uyghur people in Xinjiang province, and Taiwan’s participation in the World Health Organisation.

Like its neighbour Australia, New Zealand has also been taking cognizance of increasing political interference in its domestic politics, via governments, political parties, and universities. There has been bipartisan support for taking measures to check the same. Some policies have been introduced with regard to political donations as well as Foreign Direct Investment. 

At the same time, New Zealand has a close economic relationship with China and this is strong reiterated by figures. In 2019, China accounted for a staggering 33% of New Zealand’s dairy exports, over 40% of meat experts and contributed to 58.3% of international education earnings (it is estimated that in 2019, 87% of New Zealand’s service export earnings from China came from education-related travel and personal tourism).

While there has been a shift in New Zealand’s approach vis-à-vis China, officials have also repeatedly made the point, that it will not blindly toe any other country’s stance vis-à-vis China. 

CPTPP

Another important foreign policy component of New Zealand is as member of the 11-member CPTPP. Along with other countries, New Zealand worked towards keeping supply chains going in the midst of the pandemic. For instance in April, New Zealand sent a first plane load of essential supplies to Singapore. (This included commodities like lamb and beef which were sent by a chartered plane.)

New Zealand and other CPTPP members have also been working to resume essential travel, while Singapore opened a travel bubble with New Zealand on September 1, 2020 (which means that quarantine-free travel will be allowed). 

New Zealand and its neighbour Australia, another member of CPTPP, have opened an air bubble too (though this is one-way as yet only passengers from New Zealand can travel to Australia). The bubble currently is applicable only to two Australian states New South Wales and the Northern Territory.

Conclusion  

In conclusion, the election result is important not just in the context of domestic politics, but in sending a message that there is space for centrist and inclusive politics and that it is not necessary to have a Strong Man image cultivated by many right-wing leaders. It is also important to bear in mind that liberal democracies, which respect diversity, are in a far better position to provide an alternative narrative to that of China. Apart from this, while the shortcomings of globalization do need to be acknowledged and addressed, inward looking economic and immigration policies need to be firmly rejected.

Nightcap

  1. All ideologies eventually seem to fail Scott Sumner, EconLog
  2. State capacity libertarianism as a pipe dream Jason Brennan, 200-Proof Liberals
  3. China after Covid Wang Xiuying, London Review of Books
  4. Nationalism, Eastern European style James Felak, Law & Liberty

Nightcap

  1. Conflicts of interest in economic research Fabo, et. al, NBER
  2. In the dragon’s shadow Frank Beyer, Asian Review of Books
  3. 2020 is a black comedy Scott Sumner, The Money Illusion
  4. The risk of creeping Apartheid? Chris Bertram, Guardian

Nightcap

  1. Dangerous myths about nuclear weapons David Logan, War on the Rocks
  2. Honest putdowns Robin Hanson, Overcoming Bias
  3. “Sitting next to Sally” John Quiggan, Crooked Timber
  4. Hopelessness and the new capitalism Hans Eicholz, Law & Liberty

Nightcap

  1. 9/11 + 19: Lessons Irfan Khawaja, Policy of Truth
  2. Misinformation and foreign policy Scott Sumner, EconLog
  3. The Hayek question Chris Dillow, Stumbling & Mumbling
  4. Why not anarchy? Daniel McCarthy, Modern Age

Nightcap

  1. How black-owned banks redefined risk in America Johnny Fulfer, Economic Historian
  2. Consistency: What everyone needs to know Irfan Khawaja, Policy of Truth
  3. Mao’s secret factories in Cold War China Lorenz M. Lüthi, War on the Rocks
  4. The irresistible rise of of the civilization-state Aris Roussinos, UnHerd

Nightcap

  1. Imperial Japan and Soviet communism Peter Gordon, ARB
  2. Why the West must stop bashing China Phil Mullan, spiked!
  3. No blueprint for utopia Kieran Setiya, LARB
  4. A Kirkian look at Houellebecq James Person, Modern Age

Nightcap

  1. The ABCs of Israeli occupation Irfan Khawaja, Policy of Truth
  2. The board game of the alpha nerds David Hill, Grantland
  3. It’s now China against the world Lily Kuo, Guardian
  4. Majority rule, slavery, and Hobbes Michael Rozeff, LRC Blog

Post-pandemic trends in post-Brexit British foreign policy: Asia or the Atlantic?

Introduction

In January 2020, the UK had given a go-ahead to Chinese telecom giant Huawei to participate in its 5G network – with restrictions and conditions. The Trump administration conveyed its displeasure to the Boris Johnson administration. Not just the US President, but senior officials of the US administration are supposed to have said that this decision would impact economic and security relations between the UK and the US.

In the aftermath of the Covid-19 pandemic, ties between the UK and China have steadily deteriorated. As a result of increasing strains with Beijing, and the imposition of strong US sanctions against Huawei, London began to rethink its approach towards Huawei’s role in its 5G network.

First, it was decided that Huawei’s participation would be reduced to zero by 2023. In May, Britain had also proposed a multilateral grouping of 10 countries, D10 (G7+ India, South Korea and Australia), which could work collectively for reducing dependence upon Chinese technologies.

UK-China ties after the imposition of the National Security Law in Hong Kong

London further hardened its stance vis-à-vis China after the imposition of the National Security Law in Hong Kong, which, according to the UK, is a violation of the ‘one country two systems’ arrangement safeguarded by the ‘Basic law’ of Hong Kong and the Sino-British joint declaration signed in 1985. According to the Boris Johnson administration, the National Security Law will impinge upon not just the autonomy of Hong Kong but freedoms and rights of the residents of the former British colony, guaranteed by the 1985 declaration (these rights were to remain in place for a period of fifty years from 1997 – the year in which British left Hong Kong and handed over sovereignty to China).

Decision regarding Huawei

On July 14, 2020, on the recommendation of National Cyber Security Centre (NCSC), the Boris Johnson administration decided that Huawei will be removed from the 5G network by 2027. It was also decided that the purchase of 5G kits from Huawei will not be allowed after the end of December 2020.

China reacted strongly to the UK’s recent announcement, while it was welcomed by US President Donald Trump. China stated that the UK’s decision will exacerbate tensions, while the US President stated that the Johnson administration took this decision as a result of pressure from Washington. A top official in Boris Johnson’s administration stated that this decision was not driven by US pressure. Said the British Foreign Secretary Dominic Raab:

But I think that decision was made not because the US said it was a good decision but because the leadership in the UK concluded the right thing to do was to make that decision for the people of the UK.

Interestingly, some media reports suggest that British officials have stated that the recent ban on Huawei was imposed with a view to placate Trump, and the UK could revise its decision, if the mercurial US President is voted out in November 2020.

UK-Japan relations

Britain has already begun to look for alternatives to Huawei for developing its 5G network. On July 16, 2020, just two days after the decision was taken to remove the Chinese telecom giant altogether by 2027, British officials are supposed to have met with their Japanese counterparts and sought assistance for developing Britain’s 5G network. Two companies which were discussed as possible alternatives to Huawei were NEC Corp and Fujitsu Limited.

It would be pertinent to point out that in recent months Britain has been aiming to strengthen trade ties with Japan, and is also looking to secure a Free Trade Agreement (FTA) with Japan. Both countries have also been at the forefront of pitching for diversifying global supply chains.

Conclusion

While it remains to be seen whether Britain and Japan can work together for developing the former’s 5G network, the London-Tokyo relationship has witnessed an upswing in the aftermath of Covid-19. Both countries have already begun to take steps for reducing economic reliance on China. It would be interesting to see if Britain sticks to its announcement of removing Huawei from its 5G network by 2027, in case Donald Trump loses in 2020. While Britain is seeking to strengthen ties with countries wary of China’s increasing economic dominance, the former would not likely to be perceived as a mere appendage of Washington.

Nightcap

  1. On LBJ’s (not so) Great Society William Voegeli, New Criterion
  2. All roads need not lead to China Parag Khanna, Noema
  3. The guileful, soulful art of Khadija Saye Stuart Jeffries, Spectator
  4. Being black in Argentina Gabby Messina (interview), Latitude

International students, international trends

Introduction

In the aftermath of the COVID-19 pandemic, there have been numerous discussions with regard to the impact it will have on the sphere of international higher education. Recent decades have witnessed a rise in the number of international students pursuing higher education in the US, the UK, and Australia (in recent years, Chinese and Indian nationals have been the two largest groups within the international student community in these countries).

According to UNESCO, there were over 5.3 million international students in 2017. This was nearly thrice the number of 2000 (2 million). The rise of globalization, which has led to greater connectivity and more awareness through the internet, have contributed towards this trend. It would be pertinent to point out that the global higher education market was valued at a whopping $65.4 billion in 2019.

In a post-corona world, a number of changes are likely to take shape in terms of higher education.

Likely changes in a post-corona world

The first change likely to occur in a post corona world is a drop in the number of Chinese students seeking to enroll at higher education institutions in not just the US, but also in Britain and Australia.

In the case of the US, a number of changes have been introduced with regard to student visas for Chinese students. In 2018, certain changes had already been introduced for Chinese students enrolled in Science, Technology, Engineering, and Management (STEM) courses. Only recently, further changes have been made in the context of student visas for Chinese nationals. According to the new policy, F1 and J1 visas cannot be issued for graduate level work to individuals involved with the People’s Republic of China’s military-civil fusion strategy.

China has warned students planning to pursue higher education in Australia to reconsider their decision given both the COVID-19 pandemic and instances of racism against Asians. Chinese students account for a staggering 28% of the total international community (estimated at 750,000).

And, in Britain, where students from China were issued a total of 115,014 visas in 2019 (a whopping 45% of the total), recent tensions with China after the imposition of the National Security Law in Hong Kong could mean a significant drop in the number of Chinese students enrolling at British universities.

Second, given the disruptions in international travel, a number of students have revised plans with regard to pursuing higher education overseas. According to estimates, international student enrollment in the US could drop by 25%, which will have a significant impact on the economy (in Britain and Australia too, there is likely to be a drop in the number of students enrolled).

Third, universities have made concessions in terms of entrance tests, waiving application fees and even financial assistance, so as to ensure that there is not a drop in take. A number of universities have already confirmed that they are shifting to an online mode of education for the academic year 2020. This includes top universities like Harvard (USA) and Oxford (UK).

Fourth, countries that have an open door immigration policy, like Canada, are still likely to be attractive for international students — especially from India.

Importance of international students

What has also emerged from recent developments is that while governments may not be sensitive to the concerns of international students, universities (and companies) realize the value which international students add by way of talent and skills. Two US institutions, Harvard and MIT, filed a law suit against the US government (Department of Homeland Security and Immigration and Custom Enforcement) for bringing out a notification which stated that international students studying at institutions where classes were being held online would either need to transfer or return home.

All Ivy league institutions and 59 other private colleges signed a court brief supporting the law suit. The Presidents’ Alliance on Higher Education and Immigration, which includes 180 colleges, also lent support to Harvard and MIT. As a result of this law suit, the Trump Administration had to rescind its decision, which would have impacted 1 million students.

Commenting on the judgment, Harvard University President Lawrence Bacow said:

“We all recognize the value that international students bring to our campuses, to this nation, and to the world.”

Conclusion

In recent decades, the free movement of students has been taken for granted. Higher education was an important bridge between countries. In the aftermath of the pandemic, and the souring of ties between China and the rest of the world, international higher education is likely to witness major changes. At the same time, the use of technology also provides opportunities, and there is space for greater collaborations between higher education institutions in the US, the UK, Canada, Australia, and those in the developing world.

Nightcap

  1. The Harpers free speech letter and controversy Tyler Cowen, MR
  2. The Religious Roots of a New Progressive Era Ross Douthat, NYT
  3. America, China, and the Dark Forest Niall Ferguson, Bloomberg
  4. Don’t confuse reality with science fiction Scott Sumner, MoneyIllusion