Summary: Despite widespread fears about China's growing economic clout and political stature, Beijing remains committed to a "peaceful rise": bringing its people out of poverty by embracing economic globalization and improving relations with the rest of the world. As it emerges as a great power, China knows that its continued development depends on world peace -- a peace that its development will in turn reinforce.
Zheng Bijian is Chair of the China Reform Forum, a nongovernmental and nonprofit academic organization that provides research on and analysis of domestic, international, and development issues related to China. He has drafted key reports for five Chinese national party congresses and held senior posts in academic and party organizations in China.
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Asia
Peace and Conflict
Economics
Trade and Finance
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GETTING THE FACTS RIGHT
China's rapid development has attracted worldwide attention in recent years. The implications of various aspects of China's rise, from its expanding influence and military muscle to its growing demand for energy supplies, are being heatedly debated in the international community as well as within China. Correctly understanding China's achievements and its path toward greater development is thus crucial.
Since starting to open up and reform its economy in 1978, China has averaged 9.4 percent annual GDP growth, one of the highest growth rates in the world. In 1978, it accounted for less than one percent of the world economy, and its total foreign trade was worth $20.6 billion. Today, it accounts for four percent of the world economy and has foreign trade worth $851 billion -- the third-largest national total in the world. China has also attracted hundreds of billions of dollars of foreign investment and more than a trillion dollars of domestic nonpublic investment. A dozen years ago, China barely had mobile telecommunications services. Now it claims more than 300 million mobile-phone subscribers, more than any other nation. As of June 2004, nearly 100 million people there had access to the Internet.
Indeed, China has achieved the goal it set for itself in 1978: it has significantly improved the well-being of its people, although its development has often been narrow and uneven. The last 27 years of reform and growth have also shown the world the magnitude of China's labor force, creativity, and purchasing power; its commitment to development; and its degree of national cohesion. Once all of its potential is mobilized, its contribution to the world as an engine of growth will be unprecedented.
One should not, however, lose sight of the other side of the coin. Economic growth alone does not provide a full picture of a country's development. China has a population of 1.3 billion. Any small difficulty in its economic or social development, spread over this vast group, could become a huge problem. And China's population has not yet peaked; it is not projected to decline until it reaches 1.5 billion in 2030. Moreover, China's economy is still just one-seventh the size of the United States' and one-third the size of Japan's. In per capita terms, China remains a low-income developing country, ranked roughly 100th in the world. Its impact on the world economy is still limited.
The formidable development challenges still facing China stem from the constraints it faces in pulling its population out of poverty. The scarcity of natural resources available to support such a huge population -- especially energy, raw materials, and water -- is increasingly an obstacle, especially when the efficiency of use and the rate of recycling of those materials are low. China's per capita water resources are one-fourth of the amount of the world average, and its per capita area of cultivatable farmland is 40 percent of the world average. China's oil, natural gas, copper, and aluminum resources in per capita terms amount to 8.3 percent, 4.1 percent, 25.5 percent, ...
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China's Global Hunt for Energy
David Zweig and Bi Jianhai
From Foreign Affairs, September/October 2005
Article preview: first 500 of 4,762 words total.
Summary: Chinese foreign policy is now driven by China's unprecendented need for resources. In exchange for access to oil and other raw materials to fuel its booming economy, Beijing has boosted its bilateral relations with resource-rich states, sometimes striking deals with rogue governments or treading on U.S. turf. Beijing's hunger may worry some in Washington, but it also creates new grounds for cooperation.
DAVID ZWEIG is Director of the Center on China's Transnational Relations at the Hong Kong University of Science and Technology and the author of Internationalizing China: Domestic Interests and Global Linkages. BI JIANHAI is a Postdoctoral Fellow at the center.
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Asia
Energy
Resources and Environment
Economics
Trade and Finance
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A NEW FOREIGN POLICY
An unprecedented need for resources is now driving China's foreign policy. A booming domestic economy, rapid urbanization, increased export processing, and the Chinese people's voracious appetite for cars are increasing the country's demand for oil and natural gas, industrial and construction materials, foreign capital and technology. Twenty years ago, China was East Asia's largest oil exporter. Now it is the world's second-largest importer; last year, it alone accounted for 31 percent of global growth in oil demand. Now that China is the workshop of the world, its hunger for electricity and industrial resources has soared. China's combined share of the world's consumption of aluminum, copper, nickel, and iron ore more than doubled within only ten years, from 7 percent in 1990 to 15 percent in 2000; it has now reached about 20 percent and is likely to double again by the end of the decade. Despite calls by Prime Minister Wen Jiabao and other politicians to cut consumption of energy and other resources, there is little sign of this appetite abating. Justin Yifu Lin, director of the China Center for Economic Research at Peking University, in Beijing, says the country's economy could grow at 9 percent per year for the next 20 years.
These new needs already have serious implications for China's foreign policy. Beijing's access to foreign resources is necessary both for continued economic growth and, because growth is the cornerstone of China's social stability, for the survival of the Chinese Communist Party (CCP). Since China remains a relatively centralized, government-driven economy, Beijing has been able to adapt its foreign policy to its domestic development strategy. Traditional institutions, such as the Foreign Affairs Leading Small Group of the CCP, are still making the key decisions, but a more pluralistic environment is emerging and allowing business leaders to help shape foreign policy. The China Institute for International Studies, a government think tank, holds numerous conferences bringing together academics and leaders in business, the military, and the government to devise strategies for the top rung of the Communist Party.
Partly on these people's advice, Beijing has been encouraging representatives of state-controlled companies to secure exploration and supply agreements with states that produce oil, gas, and other resources. Meanwhile, it has been courting the governments of these states aggressively, building goodwill by strengthening bilateral trade relations, awarding aid, forgiving national debt, and helping build roads, bridges, stadiums, and harbors. In return, China has won access to key resources, from gold in Bolivia and coal in the Philippines to oil in Ecuador and natural gas in Australia.
China's resources hunt has been a boon to some states, especially developing countries, as it has allowed them to exploit as yet untapped resources or gain leverage to negotiate better deals with older customers. But for other states, particularly the United States and Japan, China's insatiability is causing concern. Some governments worry as Beijing enters their spheres of influence or strikes deals with states they have tried to marginalize. In some quarters in Washington, including the ...
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China's Search for Stability With America
Wang Jisi
From Foreign Affairs, September/October 2005
Summary: No country can affect China's fortunes more directly than the United States. Many potential flashpoints -- such as Taiwan, Japan, and North Korea -- remain, and true friendship between Washington and Beijing is unlikely. But their interests have grown so intertwined that cooperation is the best way to serve both countries.
WANG JISI is Dean of the School of International Studies at Peking University and Director of the Institute of International Strategic Studies at the Central Party School of the Communist Party of China. This essay is an expanded and revised version of an article originally published in Zhongguo Dangzheng Ganbu Luntan, a journal of the Central Party School.
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Asia
U.S. Policy and Politics
Peace and Conflict
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Will Kashmir Stop India's Rise?
By Sumit Ganguly
Foreign Affairs, July/August 2006
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Dangerous Strait: The U.S.-Taiwan-China Crisis
Edited by Nancy Bernkopf Tucker. : Columbia University Press, 2005.
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Understanding China
By Kishore Mahbubani
Foreign Affairs, September/October 2005
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The Korean Conundrum: America's Troubled Relations With North and South Korea
Ted Galen and Doug Bandow. New York: Palgrave Macmillan, 2004.
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Trouble in Taiwan
By Michael D. Swaine
Foreign Affairs, March/April 2004
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AFTER 9/11
The United States is currently the only country with the capacity and the ambition to exercise global primacy, and it will remain so for a long time to come. This means that the United States is the country that can exert the greatest strategic pressure on China. Although in recent years Beijing has refrained from identifying Washington as an adversary or criticizing its "hegemonism" -- a pejorative Chinese code word for U.S. dominance -- many Chinese still view the United States as a major threat to their nation's security and domestic stability.
Yet the United States is a global leader in economics, education, culture, technology, and science. China, therefore, must maintain a close relationship with the United States if its modernization efforts are to succeed. Indeed, a cooperative partnership with Washington is of primary importance to Beijing, where economic prosperity and social stability are now top concerns.
Fortunately, greater cooperation with China is also in the United States' interests -- especially since the attacks of September 11, 2001. The United States now needs China's help on issues such as counterterrorism, nonproliferation, the reconstruction of Iraq, and the maintenance of stability in the Middle East. More and more, Washington has also started to seek China's cooperation in fields such as trade and finance, despite increased friction over currency exchange rates, intellectual property rights, and the textile trade.
Although there is room for further improvement in the relationship, the framework of basic stability established since September 11 should be sustainable. At least for the next several years, Washington will not regard Beijing as its main security threat, and China will avoid antagonizing the United States.
THE LONELY SUPERPOWER
To understand the forces that govern U.S.-Chinese relations, it helps first to understand U.S. power and Washington's current global strategy. Here is a Chinese view: in the long term, the decline of U.S. primacy and the subsequent transition to a multipolar world are inevitable; but in the short term, Washington's power is unlikely to decline, and its position in world affairs is unlikely to change.
Consider that the United States continues to lead other developed countries in economic growth, technological innovation, productivity, research and development, and the ability to cultivate human talent. Despite serious problems such as swelling trade and fiscal deficits, illegal immigration, inadequate health care, violent crime, major income disparities, a declining educational system, and a deeply divided electorate, the U.S. economy is healthy: last year, U.S. GDP grew an estimated 4.4 percent, and this year the growth rate is expected to be 3.5 percent, much greater than the corresponding figures for the eurozone (2.0 percent and 1.6 percent). Barring an unexpected sharp economic downturn, the size of the U.S. economy as a proportion of the global economy is likely to increase in the years to come.
Many other indexes of U.S. "hard power" are also on the rise. The U.S. defense budget, for example, has increased considerably in recent years. In 2004, it hit $437 billion, or roughly half of all military spending around the world. Yet as a percentage of U.S. GDP, the figure was lower than it was during the Cold War.
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Further bolstering U.S. primacy is the fact that many of the country's potential competitors, such as the European Union, Russia, and Japan, face internal problems that will make it difficult for them to overtake the United States anytime soon. For a long time to come, the United States is likely to remain dominant, with sufficient hard power to back up aggressive diplomatic and military policies.
From a Chinese perspective, the United States' geopolitical superiority was strengthened in 2001 by Washington's victory in the Afghan war. The United States has now established political, military, and economic footholds in Central Asia and strengthened its military presence in Southeast Asia, in the Persian Gulf, and on the Arabian Peninsula. These moves have been part of a global security strategy that can be understood as having one center, two emphases. Fighting terrorism is the center. And the two emphases are securing the Middle East and preventing the proliferation of weapons of mass destruction.
The greater Middle East, a region stretching from Kashmir to Morocco and from the Red Sea to the Caucasus, is vital to U.S. interests. Rich in oil and natural gas, the region is also beset by ethnic and religious conflicts and is a base for rampant international terrorism. None of the countries in the area is politically stable, and chaos there can affect the United States directly, as the country learned on September 11.
On the nonproliferation front, the United States' main concerns are Iran and North Korea, two states that are striving to develop nuclear technology and have long been antagonistic toward Washington. In 2004, the United States carried out the largest redeployment of its overseas forces since World War II in order to meet these challenges.