Understanding the potential sources of escalatory risk is an increasingly important priority for U.S. policymakers. If rivalries produce a series of crises or even proxy or limited conflicts, the danger of those confrontations escalating to higher levels of violence will be an ever-present concern for U.S. decisionmakers. To support current planning, U.S. Army Space and Missile Defense Command and U.S. Army Pacific requested that the RAND Arroyo Center investigate potential sources of escalatory risk from U.S. policy actions and build a tool to assess such risks. This report summarizes that work and concludes with the components of the framework. The analysis combines theoretical and historical research with a current assessment of Chinese and Russian views of escalation and a recognition of the way emerging technologies are changing the context for escalatory dynamics. Escalatory pressures can be highly unpredictable and derive from many independent factors. The tool developed in this research can help decisionmakers think more broadly about such risks. However, an actual crisis or wartime situation will involve a complex and nonlinear interaction of these and other factors, including mistakes and accidents, that can be very difficult to control.

Over the past decade, China has upended the world of development assistance, rapidly becoming the world's largest bilateral lender by channeling large sums of money into the developing world. As China's economic engagement in the developing world has grown, so too have U.S. and allied concerns that China is leveraging development assistance to assert Chinese influence, weaken the United States' relative position, and achieve Beijing's broader national security interests. In this report, the authors conduct a net assessment of U.S. and Chinese development assistance and cooperation. The authors describe each country's differing approaches to economic engagement with developing countries and conduct a data-driven comparison to identify strategic asymmetries that might present opportunities for the United States to better compete with China for relationships and influence in the developing world. The assessment reveals that Chinese economic engagement in the developing world should not be conceptualized as aid or assistance; this mischaracterization has potentially led to an overreliance on U.S. development tools as a primary response. Moreover, despite evidence of the short-term benefits that China might gain from its development financing, it is not clear whether these benefits are sustainable or effective over the long term when compared with the U.S. approach. Nevertheless, China's efforts — its heavy emphasis on energy and infrastructure projects, its approach to working through elite actors in developing countries, and its willing embrace of greater risk and reduced transparency — create challenges and opportunities for the United States as it looks to compete with China in the developing world.