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China’s college admission increased by five times between 1998 and 2009. While the college premium for young workers declined, that for senior workers increased in this period. In our general equilibrium model, a rising demand for skills (education and experience) explains both trends. A demand shock leads to an expansion in the elastic college enrollment, depressing the college premium for young workers. With an inelastic supply, experienced college graduates continue to enjoy a rising premium. Despite the low immediate premium, young individuals continue to flood into colleges because they foresee high lifetime returns. Simulations match empirical results well.

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The Journal of Human Resources
Authors
Hongbin Li
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Despite private enterprises dominating China's labour market, college-educated workers are still highly concentrated in the state sector. Using data from the Chinese College Student Survey, we find that 64 per cent of students in the sample expressed a strong preference for state sector employment. We also identify several factors associated with receiving job offers from the state sector, including being male, holding urban hukou status, being a member of the CCP, performing well on standardized tests, attending elite universities and having higher household income or high-status parental backgrounds. These findings suggest that despite China's economic transition, the private sector may still struggle to attract highly educated workers.

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The China Quarterly
Authors
Hongbin Li
Lingsheng Meng
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Using administrative data on the Chinese National College Entrance Examination, we study how left-digit bias affects college applications. We find strong discontinuities in students' admission outcomes at 10-point thresholds. Students with scores just below multiples of 10 make more conservative college application choices that place them into less selective colleges and majors. In contrast, students who score at or just above multiples of 10 aim and achieve higher but are at greater risk of overshooting. The discontinuity reveals that, despite the educational and labor market consequences, students' self-evaluation based on exam scores is subject to information-processing heuristics.

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Review of Economics and Statistics
Authors
Hongbin Li
Xinyao Qiu
Authors
Michael Breger
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Despite technological breakthroughs, healthcare inequality remains a pressing public health challenge across developed and developing nations. Low levels of income or education mobility can exacerbate socioeconomic disparities, leaving children from disadvantaged families with fewer opportunities to improve their social and economic prospects. Moreover,  children in families with low-income backgrounds are also more likely to experience poor health outcomes, perpetuating a cycle of disadvantage.

Huixia Wang, a visiting scholar at Shorenstein APARC, sees this phenomenon as an opportunity to better understand the dynamics of intergenerational health and how to interrupt patterns of persistent health inequalities across generations. Her research aims to identify potential interventions to improve health outcomes in developing regions.

An associate professor at Hunan University, Wang has spent the 2024 fall quarter at APARC. She recently presented her research on the intricate dynamics of intergenerational health metrics, particularly in China and Indonesia. Watch her talk, “Intergenerational Persistence of Self-Reported Health Status and Biomarkers in Indonesia,” on our YouTube channel.

Barriers to Intergenerational Health

While much has been written about the transmission of income and education across generations, “much less is known about how health is passed down between generations," Wang notes, highlighting a gap in the existing research. Emphasizing that health is a crucial factor in determining overall well-being, as it affects everything from mental health to economic productivity and social mobility, she asserts that good health is linked to better educational outcomes, higher earning potential, and improved labor market performance. Poor health, on the other hand, is associated with lower educational attainment, reduced employment prospects, and higher rates of chronic illness.

Wang’s research approach centers on recognizing the multiple challenges in implementing maternal health-oriented policies. Having identified limited access to healthcare services as a significant barrier, she considers how, in many low-income and rural areas, “access to quality healthcare is constrained by poor infrastructure, lack of transportation, and shortages of healthcare professionals, making it difficult for pregnant women to receive essential care.”

Another obstacle is the prohibitive cost of healthcare. In countries where maternal health services are not subsidized or free, the financial burden of out-of-pocket expenses for transportation, medications, and other related costs can prevent women from accessing necessary care. Furthermore, Wang shows that low levels of maternal health education can contribute to poor health-seeking behaviors. “Many women may not recognize the warning signs of complications, may not fully understand the importance of prenatal care, or may be unaware of their rights to healthcare services,” she says.

Measuring Health Outcomes Across Generations

Wang acknowledges the difficulties in studying intergenerational health mobility, as it cannot be neatly defined and measured by observable metrics such as income or education. Health is much more subjective and varies from person to person. To gauge health outcomes, researchers must therefore rely on diverse and sometimes imprecise indicators, such as the presence of chronic diseases.

Moreover, to examine intergenerational mobility, researchers need data that includes health information for both parents and children. Such datasets are not always readily available, and those that do exist often lack the necessary granularity and long-term tracking to provide meaningful insights.

To overcome these challenges, Wang draws on a variety of panel data that tracks individuals over time, as well as survey data and self-reported status. For Wang, longitudinal studies are crucial for understanding how health disparities manifest and evolve over time. 

Using data from the Indonesia Family Life Survey, she combines subjective measures like self-reported health and objective measures such as pulse, BMI, hypertension, and anemia to capture a more complete picture of health mobility. This approach expands beyond previous studies, which typically relied on fewer health indicators and focused on developed countries. Her study includes a broad range of health variables and provides a unique look at the role of gender and socioeconomic factors in shaping health outcomes across generations.

Wang uses two primary methods for measuring intergenerational health mobility: one following the Intergenerational Health Association, which regresses children's health outcomes on those of their parents, and rank-rank regressions, which examine the persistence of health outcomes by analyzing percentile ranks. These techniques, adapted from income mobility research, allow her to assess health persistence and mobility across generations.

Future Directions and Policy Impact

Wang’s time at APARC has been instrumental in shaping and refining her research. "The opportunity to engage with experts from various fields [...] opened my eyes to new ways of thinking about my research," she shared. "The collaborative environment at APARC also made me realize how much I can learn from perspectives outside my immediate area of focus.”

Wang credits Stanford’s vibrant academic environment, with its rich array of seminars and talks, to broadening her understanding of Southeast Asian health systems, a subject she was less familiar with. She expressed gratitude to APARC faculty for their “invaluable guidance for both my research and my life at Stanford.” In particular,  APARC’s Asia Health Policy Program Director Karen Eggleston “dedicated a significant amount of time to advising my work, introducing me to key researchers in my field, and sharing the valuable resources that I might benefit from on campus,” Wang said.

Looking ahead, she is excited to continue exploring the role of health in intergenerational mobility, particularly in the Southeast Asian context, and plans to expand her research into the health effects of pollution, an area she has already begun to investigate. Wang also hopes to contribute to policymaking that addresses health inequality. By providing a deeper understanding of how health disparities are perpetuated across generations, she aims to inform policies that could improve health outcomes and reduce inequality in developing countries.

Wang’s research on intergenerational health mobility offers a fresh and much-needed perspective on the crucial yet understudied role of health in social mobility. She hopes her research helps policymakers and scholars address health inequalities that perpetuate socioeconomic disadvantage across generations.

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Stanford Quad and geometric hill shapes with APARC logo and text "Call for Nominations: 2025 Shoreenstein Journalism Award."
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2025 Shorenstein Journalism Award Open to Nomination Entries

Sponsored by Stanford University’s Shorenstein Asia-Pacific Research Center, the annual Shoresntein Award promotes excellence in journalism on the Asia-Pacific region and carries a cash prize of US $10,000. The 2025 award will honor an Asian news media outlet or a journalist whose work has primarily appeared in Asian news media. Nomination entries are due by February 15, 2025.
2025 Shorenstein Journalism Award Open to Nomination Entries
group of people standing on steps of Encina Hall at the 2024 Trans-Pacific Sustainability Dialogue
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Driving Climate-Resilient Infrastructure and Inclusive Industrialization: Highlights from the Third Annual Trans-Pacific Sustainability Dialogue

Held at Stanford and hosted by the Shorenstein Asia-Pacific Research Center, the third annual Dialogue convened global leaders, academics, industry experts, and emerging experts to share best practices for advancing Sustainable Development Goal 9 in support of economic growth and human well-being.
Driving Climate-Resilient Infrastructure and Inclusive Industrialization: Highlights from the Third Annual Trans-Pacific Sustainability Dialogue
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Economist Huixia Wang, a visiting scholar at APARC, discusses her research into healthcare economics and the reverberating effects of poor healthcare access on health outcomes across generations.

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Join Stanford's Shorenstein APARC China Program as we welcome Professor Rory Truex from Princeton University to present his recent survey findings on the evolving perspectives of U.S. foreign policy professionals toward China. Based on a survey of nearly 500 professionals and over 50 in-depth interviews, the research reveals a spectrum of policy opinions, alongside a concerning trend of "groupthink" that often shifts discussions toward more hawkish stances. Professor Truex will explore how career and reputational pressures influence these dynamics, shedding light on the shaping of China-related discourse within Washington’s foreign policy circles.

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Rory Truex is an Associate Professor of Politics and International Affairs at Princeton University. His research focuses on Chinese politics and authoritarian systems. In 2021 he received the President’s Award for Distinguished Teaching, the highest teaching honor at Princeton. He currently resides in Philadelphia.

Philippines Room, Encina Hall (3rd floor), Room C330
616 Jane Stanford Way, Stanford, CA 94305

Rory Truex, Associate Professor of Politics and International Affairs at Princeton University
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This event has been cancelled. 

We hope to see you at another SCCEI event!



Firm Selection and Growth in Carbon Offset Markets: Evidence from the Clean Development Mechanism in China


Carbon offsets could reduce the global costs of carbon abatement, but there is little evidence on whether they truly reduce emissions. We study carbon offsets sold by manufacturing firms in China under the United Nations’ Clean Development Mechanism (CDM). We find that offset-selling firms increase carbon emissions by 49% in the four years after starting an offset project, relative to a matched sample of non-applicants. We explain this increase in emissions by jointly modeling the firm decision to propose an offset project and the UN’s decision of whether to approve. In estimates of our model, CDM firms increase emissions due to both the selection of higher-growth firms into project investment (40 pp of the total) and the causal effect of higher efficiency, post-investment, on firm scale and therefore emissions (9 pp).



About the Speaker 
 

Daniel Yi Xu profile picture.

Daniel Yi Xu is a Professor of Economics at Duke University and a Faculty Research Associate at the National Bureau of Economic Research. His research focuses on the intersection of productivity, international trade, and industrial organization. Professor Xu’s current research agenda involves the use of large-scale microdata to model and estimate a broad range of dynamic individual firm decisions and to examine how these decisions impact resource allocation, industry performance, and economic growth, particularly in developing and emerging economies.

His most recent work has been published in leading economics journals, including the American Economic Review, Journal of Political Economy, Review of Economic Studies, RAND Journal of Economics, Review of Economic Dynamics, and Management Science. Professor Xu is currently a co-editor of the American Economic Journal: Microeconomics and an associate editor of the RAND Journal of Economics. He previously served as co-editor for the Review of Economics and Statistics and the Journal of Development Economics. Additionally, he has been an associate editor for the American Economic Journal: Applied, Economic Journal, Journal of Industrial Economics, Journal of International Economics, Quantitative Economics, and the Review of Economics and Statistics.
 


A NOTE ON LOCATION

Please join us in-person in the Goldman Conference Room located within Encina Hall on the 4th floor of the East wing.



Questions? Contact Xinmin Zhao at xinminzhao@stanford.edu
 


Goldman Room E409, Encina Hall

Daniel Yi Xu, Professor of Economics, Duke University
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Big Data China 3rd Annual Conference (Virtual)


The Turning Point? U.S.-China Relations, Economic Growth, and the Race for Technology Leadership


The event will be broadcast live from this webpage and YouTube.

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Join the third annual conference of Big Data China, a collaborative project by CSIS Trustee Chair in Chinese Business and Economics and Stanford Center on China's Economy and Institutions (SCCEI). China experts in the policy and academic communities will discuss the key challenges in U.S.-China relations, recent shifts in China's economic governance, and the global implications of technology competition with China.

 


AGENDA
 

8:00 - 8:30 am: Keynote Speech: Craig Allen, President, U.S.-China Business Council
 

8:45 - 9:45 am: Panel 1: Charting U.S.-China Relations: Key Challenges and Choices for the Incoming Administration


Moderator: Scott Kennedy, CSIS

Panelists:
Wendy Cutler, Asia Society Policy Institute
Bonnie S. Glaser, German Marshall Fund Indo-Pacific
Dennis Wilder, Georgetown University

10:00 - 11:00 am: Panel 2: China’s Economic Stimulus: A Short-Term Fix or Path to Sustainable Recovery?


Moderator: Scott Rozelle, Stanford Center on China’s Economy and Institutions

Panelists:
Ling Chen, Johns Hopkins SAIS
Andrew Polk, Trivium China
Margit Molnar, OECD
Logan Wright, CSIS

11:15 - 12:15 pm: Panel 3: Decoupling vs. De-risking: The Competitive Dilemma in Tech Innovation


Moderator: Ilaria Mazzocco, CSIS

Panelists:
Greg Allen, CSIS
Rebecca Arcesati, MERICS
Samm Sacks, Yale Law School Paul Tsai China Center
Kevin Xu, Interconnected
 


FEATURING
 

Craig Allen keynote speaker Big Data China conference December 10, 2024 Big Data China Conference panelists for December 10, 2024.

EVENT PARTNERS
 

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Donald Trump’s decisive victory in the 2024 U.S. presidential election has reignited debates about the United States' role in a world increasingly defined by geopolitical tensions, economic uncertainty, and democratic recession. The return of Trump to the White House will have profound implications for Asia. To assess the stakes for the region, APARC convened a panel of experts who weighed in on the potential risks and opportunities the second Trump administration’s policies may pose for Asian nations and how regional stakeholders look at their future with the United States. Another panel, organized by APARC’s China Program, focused on what’s ahead for U.S.-China relations.

High Stakes for the Asia-Pacific

APARC’s panel, The 2024 U.S. Presidential Elections: High Stakes for Asia, examined how the return of Trump’s political ideology and the macroeconomic effects of his foreign policy will affect Asia.

“We are witnessing the solidification of Trumpism as an influential political ideology,” stated APARC and Korea Program Director Gi-Wook Shin at the opening of the discussion, “one that has begun to transcend traditional  American conservatism. Trumpism — marked by a blend of economic nationalism, nativism, and a strongman approach to leadership —could have a huge impact not only in American society but also on the liberal global order.”

According to Shin, Trump’s policies, particularly his focus on unilateralism and economic self-interest, could significantly alter the political and economic dynamics of the Asia-Pacific region.

Political scientist Francis Fukuyama, the Olivier Nomellini Senior Fellow at the Freeman Spogli Institute, argued that Trump’s victory was no longer an anomaly but part of a larger trend of working-class voters shifting allegiance from the Democratic to the Republican Party. Fukuyama expressed concerns about Trump’s aggressive economic policies, including imposing broad tariffs on allies and adversaries alike, and warned that such policies could result in inflation, trade tensions, and long-term economic instability. In addition, he asserted that Trump’s reluctance to engage in foreign conflicts could undermine the United States’ commitments to security alliances, particularly in Asia.

APARC Deputy Director and Japan Program Director Kiyoteru Tsutsui emphasized the broader geopolitical implications of Trump’s policies, noting that Trump’s "America First" approach could further erode the international liberal order. He suggested that Japan would face significant challenges navigating the unpredictability of Trump’s foreign policies. According to Tsutsui, “There might be greater pressure to line up with the United States in dealing with China economically, which would  put a great deal of strain on the Japanese economy.” Such an alignment might also muddle Japan’s own diplomatic and security interests.

Gita Wirjawan, a visiting scholar with Stanford's Precourt Institute for Energy and former visiting scholar at APARC, focused on the stakes for Southeast Asia. Wirjawan argued that Trump’s economic policies, such as protectionism and prioritizing economic growth over democratic principles, could embolden right-wing populist movements in Southeast Asia. He suggested that parts of Southeast Asia could be a natural beneficiary of a reallocation of financial capital from the U.S. as companies diversify supply chains by establishing operations outside China in response to Trump’s planned tariffs. Yet, growing economic inequality in Southeast Asia, particularly in urban areas, could fuel the rise of similar nationalist policies, undermining efforts to promote inclusive, democratic development.

Shin highlighted the challenges South Korea might face under a second Trump presidency. Trump will likely demand higher defense payments from South Korea, potentially straining the U.S.-ROK alliance. This could put President Yoon in a tough spot, especially as trilateral U.S.-Japan-Korea cooperation has been progressing well but faces uncertainty. Economically, South Korean firms may struggle if U.S. policies like the Inflation Reduction Act and CHIPS Act are rolled back, as subsidies were crucial for their investments in the U.S. On North Korea, Shin noted that Trump may resume summit diplomacy with Kim Jong Un, leaving South Korea sidelined and potentially sparking an arms race in Northeast Asia. 

The panelists all emphasized that Asia, with its diverse political landscapes, would need to navigate a new era of economic nationalism and geopolitical unpredictability, with potential challenges to economic stability and democratic norms.

A Focus on U.S.-China Relations 

The second panel, "Crossroads of Power: U.S.-China Relations in a New Administration," focused specifically on the evolving dynamics of U.S.-China relations in the wake of the election. Moderated by APARC China Program Director Jean Oi, the discussion featured Shorenstein APARC Fellow Thomas Fingar, and Peking University's Yu Tiejun, the APARC's China Policy Fellow during all 2024. The panelists analyzed the potential trade, security, and diplomacy shifts between the two global superpowers, particularly in light of D.C.’s bipartisan consensus on China. 

Central to the discussion was the continuity of U.S. policy toward China under the first Trump administration and the Biden administration. Examples of this continuity included recent tariff increases on Chinese imports, a new U.S. Department of the Treasury program to screen U.S. outbound foreign investments in key sectors, and tighter export controls on critical technologies like quantum computing and advanced semiconductors. The panelists explored the economic and strategic ramifications, noting that these policies could disrupt existing trade patterns. 

Another area of concern was China’s uneven implementation of the 2020 Phase One  trade deal it negotiated with the U.S., in which China had committed to domestic reforms and $200 billion of additional U.S. imports. This failure could buttress the new administration’s plan to increase tariffs, complicating diplomatic efforts between Washington and Beijing. Fingar noted that while China has made efforts to diversify its supply chains, these changes might not be enough to shield it from the effects of U.S. economic policies, which could include escalating tariffs or additional restrictions on Chinese exports. 

The conversation also touched on broader geopolitical considerations, particularly concerning China’s role in the ongoing war in Ukraine. The panelists discussed the potential for cooperation or de-escalation in U.S.-China relations, with China’s positioning on the war serving as both a point of contention and a possible avenue for diplomatic engagement. 

Underscoring the deepening complexities in U.S.-China relations post-election, the panelists highlighted the uncertainty surrounding U.S. foreign policy under a second Trump administration, particularly regarding the role of people-to-people exchanges in fostering mutual understanding.

Both events emphasized the multifaceted consequences of Trump’s return to power for Asia and the global international order. While the discussions highlighted the challenges posed by the rise of economic nationalism, trade tensions, and shifting security priorities, they also pointed to potential areas of cooperation and the evolving dynamics of global diplomacy.


In the Media


From Center Fellow Oriana Skylar Mastro:

What a Second Trump Term Means for the World
OnPoint – WBUR, Nov 12 (interview)

Race to the White House: How the US Election Will Impact Foreign Policy
UBS Circle One, October 23 (interview)

From Visiting Scholar Michael Beeman:

On Korea-U.S. Economic Cooperation in the Era of Walking Out
Yonhap News, Nov 20 (featured)

Trump Looking for Trade 'Reset' with Most Countries: Ex-USTR Official
Nikkei, Nov 16 (interview)

How Southeast Asia Can Weather the Trump Trade Typhoon
The Economist, Nov 14 (quoted)

Read More

Gi-Wook Shin, Evan Medeiros, and Xinru Ma in conversation at the Center for Strategic and International Studies.
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Stanford Next Asia Policy Lab Engages Washington Stakeholders with Policy-Relevant Research on US-China Relations and Regional Issues in Asia

Lab members recently shared data-driven insights into U.S.-China tensions, public attitudes toward China, and racial dynamics in Asia, urging policy and academic communities in Washington, D.C. to rethink the Cold War analogy applied to China and views of race and racism in Asian nations.
Stanford Next Asia Policy Lab Engages Washington Stakeholders with Policy-Relevant Research on US-China Relations and Regional Issues in Asia
group of people standing on steps of Encina Hall at the 2024 Trans-Pacific Sustainability Dialogue
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Driving Climate-Resilient Infrastructure and Inclusive Industrialization: Highlights from the Third Annual Trans-Pacific Sustainability Dialogue

Held at Stanford and hosted by the Shorenstein Asia-Pacific Research Center, the third annual Dialogue convened global leaders, academics, industry experts, and emerging experts to share best practices for advancing Sustainable Development Goal 9 in support of economic growth and human well-being.
Driving Climate-Resilient Infrastructure and Inclusive Industrialization: Highlights from the Third Annual Trans-Pacific Sustainability Dialogue
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APARC recently hosted two panels to consider what a second Trump presidency might mean for economic, security, and political dynamics across Asia and U.S. relations with Asian nations.

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The literature has shown that cognitive and non-cognitive development before the age of three is associated with children’s levels of development at later ages. However, the extent to which the different pathways of cognitive and non-cognitive development before age three (between 6–12 months and 22–30 months of age) are associated with developmental outcomes at primary school age remains unknown. This study aims to examine this research question using three waves of longitudinal data collected from 1087 children aged 9 to 10 years and their primary caregivers in rural China. Results demonstrated four pathways of cognitive and non-cognitive development between 6–12 months and 22–30 months of age. The four pathways include: “never delayed”, “persistently delayed”, “improving”, or “deteriorating.” Children that experienced either persistently delayed or deteriorating development had lower levels of cognitive and non-cognitive development and performed worse academically than children that were never delayed when they were 9–10 years old. Maternal education attainment, family assets, and whether the child was born prematurely all predicted the child’s entry into different developmental pathways. Findings suggest that early childhood development screening and interventions that aim to facilitate healthy early development among children under three years old are needed for rural China’s young children.

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Humanities and Social Sciences Communications
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Scott Rozelle
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SCCEI Seminar Series (Winter 2025)


Friday, January 17, 2025 | 12:00 pm -1:20 pm Pacific Time
Goldman Room E409, Encina Hall, 616 Jane Stanford Way



Effects of Referring Business Partners on Firm Networks and Performance


Firms often struggle to find and connect with suitable suppliers and clients, hindering growth and industrial development.  We surveyed 700 Chinese brush pen industry firms to understand their supplier-client networks and implemented a targeted referral program to address these barriers. The program introduced four treatment groups: screened referrals between likely compatible firms with a subsidy for the first transaction, random referrals with a subsidy for the first transaction, screened referrals without a subsidy, and control where firms were observed but received no referrals. We found that screened referrals with subsidies significantly increased subsequent transactions while partially crowding out prior partnerships; information-only referrals showed no impact. The referrals increase revenue, profit, and work hours among suppliers and growth-oriented clients. Suppliers upgraded product quality, while clients expanded product variety into higher-quality offerings, indicating complementary improvements within the supply chain. The intervention also shifted firms’ beliefs about the value of partnerships, spurring increased search efforts and forming additional non-referred partnerships, suggesting pessimistic beliefs as a critical friction in firm-to-firm access. Overall, the referrals yielded substantial private and social returns, underscoring the potential of targeted matchmaking interventions to drive industrial development.

Preview Prof. Cai’s research in a recent VoxChina article on Firm-to-Firm Referrals.

Please register for the event to receive email updates and add it to your calendar. Lunch will be provided.



About the Speaker 
 

Jing Cai headshot

Jing Cai is an Associate Professor at the University of Maryland. She received her PhD from the University of California at Berkeley in 2012. Her research areas are development economics and household finance. Her current research examines the growth of micro-enterprises and SMEs, impacts of tax incentives on firm behavior, and diffusion and impacts of financial innovations in developing countries. Dr. Cai is a Co-Chair of the firm sector of the Abdul Latif Jameel Poverty Action Lab (J-PAL), a Research Associate at the National Bureau of Economic Research (NBER), and a fellow of the Bureau for Research and Economic Analysis of Development (BREAD). She currently serves as an associate editor of the American Economic Journal: Applied Economics, the Journal of Development Economics, and the Economic Development and Cultural Change.


A NOTE ON LOCATION

Please join us in-person in the Goldman Conference Room located within Encina Hall on the 4th floor of the East wing.



Questions? Contact Xinmin Zhao at xinminzhao@stanford.edu
 


Goldman Room E409, Encina Hall

Jing Cai, Associate Professor, University of Maryland
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