The Construction of the China–ASEAN Free Trade Area: A Study of China's Active Involvement

The central argument of this paper is that China's economic diplomacy not only improves its political relations with ASEAN countries but also promotes regional economic co-operation and integration. This paper is organised into two parts. The first part starts with a review of Chinese foreign policy changes in order to show how Beijing adjusted its foreign policy to pursue its economic and political interests. It also examines China's political and institutional efforts to forge the coming Free Trade Area (FTA) with ASEAN. The second part studies China–ASEAN trade relations from three aspects: the adjustment of Chinese industrial structure, foreign direct investment to both sides and the formation of a production network with China at the centre. While difficulties and problems are unavoidable in the construction of CAFTA, with China's active efforts and the enhanced co-operation between China and ASEAN, the building of CAFTA is moving towards fulfilment.     

The “Japan Card” in the United States Rapprochement with China, 1969–1972

United States rapprochement with China should be re-examined by taking into consideration the American negotiating approach towards Beijing regarding the role of Japan, the United States' major Asian ally and China's long-term rival in East Asia. Whilst announcing the Nixon Doctrine, which increased pressure on Japan to strengthen its defense and regional responsibilities, Nixon and Kissinger used the so-called “Japan Card,” Japan's possible military resurgence and China's long-term fear of it, as a tacit negotiating tool to justify to Chinese leaders the continued United States military presence in East Asia. This article examines the impact of the United States rapprochement with China on the American negotiating process with Chinese leaders for the continuation of the United States–Japan Security Treaty and to what extent it changed China's policy toward American relations with Japan.     

Marketization,Class Structure,and Democracy in China: Contrasting Regional Experiences

After two and half decades of market reforms in China, the question of whether reforms have created favourable social conditions for democracy and whether the country's emerging entrepreneurial class will serve as the democratic social base have become hotly debated issues in both academic and policy circles. Based upon an analysis of two regions – Sunan and Wenzhou, the two prototypical local development patterns in China – the article argues that different patterns of economic development have produced distinct local level social and political configurations, only one of which is likely to foster the growth of democratic practices. It suggests that China's political future is largely dependent upon the emerging class structure and class relations that reform and development have produced. If the market reforms and economic development only enrich a few (like the Sunan case), then the possibility of democratic transition will likely be very bleak. Nonetheless, the possibility of a brighter alternative exists, as demonstrated by the Wenzhou case. These arguments thus link China's political transition to critical social conditions, echoing Barrington Moore's influential work on the social origins of democracy and dictatorship.     

How to Tame Your Dragon: An Evaluation of India's Foreign Policy Toward China

In the past 60 years, India-China relations have oscillated between friendship, hostility and indifference. In recent times, both countries have started competing for global economic gains and political status. In light of these events, the objective of this article is to analyze various strategies used by China against India, and India's policy response to these strategies. The article evaluates the process of foreign policy decision making in India, and traces the historical evolution of India's foreign policy towards China. It then deconstructs China's foreign policy towards India, and provides the rationale behind its strategies. The article suggests that after initial engagement with India on the question of boundary disputes, Chinese foreign policy has undergone a dramatic shift since 2007. It specifically evaluates the twin Chinese tactics of military incursions and denial of legitimacy to the Indian territories of Arunachal Pradesh and Ladakh. Based on an analysis of China's previous boundary disputes resolution record with neighbors, these tactics are identified as an extension of China's new strategy for resolving such disputes. The article concludes by suggesting various policy options available to India to counter China's new strategy on the Sino-Indian border.     

China's Energy Policy: from Self-sufficiency to Energy Efficiency

China's energy policy is traditionally based on self-sufficiency. While energy bottlenecks have often been cited as a limitation to China's economic growth, China has been successful at producing energy using its domestic coal – albeit putting a strain on transport and producing a high degree of pollution. Aggressively after 2001, China has started to search for external resources, both to supply its voracious appetite for oil and to insure its economy against possible geopolitical disruptions – including the threat of sanctions. This has given Chinese companies a life of their own, making them large international actors. Today, China is both saddled with new responsibilities for the developing countries in which it owns sizeable exploitation rights, and influenced by a new thinking on energy security, based on the idea of improving energy efficiency before developing resources. This offers opportunities for the West – and Japan – in cooperating with China, a huge energy importer, to lessen the dominance of producers, create business opportunities for energy efficiency equipment, and also to cap CO₂ and other emissions.     

China's Periphery: Implications for U.S. Policy and Interests

The major, middle and small powers on China's periphery are often portrayed as passive objects of great power competition between the United States and China, but in fact the foreign policy strategies of these states plays a significant role in shaping Sino-U.S. relations and the overall order in Asia. Before examining the actors on China's periphery in this important FPRI conference, therefore, it is worth starting at the macro-level of international relations in Asia within which they operate.     

Defending the Nation: The Role of Nationalism in Chinese Thinking on Human Rights

This article examines the symbiotic relationship between Chinese thinking on human rights and Chinese nationalism. It analyses the three key periods in the Chinese discourse on human rights: late Qing, Republican, and post-Mao. In each case, discussions of rights have often (but not always) taken place within a wider debate about the protection of China's national interests from foreign infringement, although the nature of the foreign infringement has changed over time. During the late Qing debate, with China increasingly threatened by foreign military imperialism, scholars argued enthusiastically for the introduction of a new system of democratic rights as a vital tool of national resistance. During the Republican era that followed, the threat from outside remained the same. However by now many theorists had grown disillusioned with democracy and rights, believing that the only way China could withstand further foreign encroachments was to withhold rights from its people. In the post-Mao debate on rights, the interests of the nation are again at the fore. But with China now an emerging rather than a collapsing power, rights are often analysed – at least from an official perspective – within the context of cultural rather than military imperialism, the new ‘threat’ from abroad. The article then examines the views of China's ‘non-official’ rights thinkers, most of whom tend to be much less affected by nationalist concerns and ends with an assessment of the prospects for democracy and rights in China.     

Confronting a Powerful China with Western Characteristics

The rapid rise of Chinese economic and military power has produced the most fundamental change in the global system since the end of the Cold War, and it poses vital questions about China's future direction. Many Western analysts argue that China's great power will cause it to become more like the West, i.e., like Western great powers. Other Western analysts believe that China will continue to be the same, i.e., like the China of the past few decades. An alternative interpretation, however, is that China's new power will enable it to become even more Chinese than it is now, i.e., to become more like the traditional and imperial China that existed before the Western intrusions of the 19th century. This China was the “Central State” of a distinctive Chinese world order, operating with distinctive conceptions about diplomatic relations, military strategy, and economic exchange. However, the new China will be unlike the old China in at least two important ways. It will be a naval, and not just a land, power, and it will be a financial, and not just a trading, power. In other words, it will be a powerful China with Western characteristics. As a formidable naval and financial power, China will present fundamental challenges to the United States and to both the long-standing U.S. security order in the Western Pacific and the long-standing “Washington Consensus” about the global economic order.     

Lifting the 'No Haste,Be Patient' Policy: Implications for Cross-Strait Relations

Cross-Strait relations remain deadlocked following Chen Shui-bian's inauguration as Taiwan's president. Amid this political stalemate, Chen's administration decided to change the 'no haste, be patient' ( jie-ji yueng-ren ) policy while refusing to endorse the 'one China' principle. While this policy change is in response to domestic demands, Chen and his ruling Democratic Progressive Party (DPP) are unlikely to reap any benefit from these actions without active cooperation from China's leaders. Beijing will continue to use its economic clout in an attempt to pull Taiwan into political union, as Taipei needs to nurture an environment favourable for domestic and foreign investment in Taiwan in order to maintain its competitive edge over China and thus preserve its de facto independence. Beijing's leaders will need to rethink their rigid stand on the 'one China' principle, since increased cross-Strait economic integration may not lead to the expected political union they desire.     

China as a ‘net donor’: tracking dollars and sense

The article examines China's emergence over the past decade as a net donor, and the implications of this status in global development. The analysis begins by outlining China's rise as a net donor, drawing comparisons in two-way aid flows with the other rising states, specifically Brazil, South Africa and India, and then turns to the implications of China's rise as an aid sender. The central argument is that conceptualizing China's rise as a ‘net donor’ is crucial for understanding the hybrid position that China has come to occupy in the global aid system, and the consequences of this positioning. Although China has achieved remarkable success with its own development, rather than join the Organization for Economic Cooperation and Development's Development Assistance Committee (DAC) regime of traditional donors, the Chinese Communist Party and government leadership has chosen instead to continue to self-identify with the countries of the South, and to construct ties of South–South cooperation outside of DAC arrangements. The Chinese leadership is trying to stake out an unprecedented position in the global aid system, traversing the North–South divide, despite the fact that China has already joined the ranks of world economic powers.     

Towards convergence and cooperation in the global development finance regime: closing Africa's policy space?

The revival of China's interest in Africa is often highlighted as being an opportunity to provide African governments with a choice between development partners that may strengthen negotiation leverage and thereby carve out policy space to define and implement policies that affect social and economic development. This article critically reviews the most recent developments in Chinese and Organisation for Economic Cooperation and Development (OECD) approaches to development finance to Africa. It argues that although we can detect a number of incidents that point towards more policy space for African governments, the revival of China's development finance does not fundamentally alter the power relations between African countries and their financiers, as the tendency now is towards convergence and cooperation between China and Development Assistance Committee (DAC) donors—not divergence and competition, which could have created policy space as it did prior to the end of the Cold War. This follows the trend of other ‘emerging’ donors who increasingly play by DAC rules and thereby minimize the future possibility of playing out one partner against the other.     

Elitist democracy and China's democratization: A gradualist approach towards democratic transition by a group of Chinese intellectuals

This article examines how a group of Chinese intellectuals experimented with the western concept of elitist democracy in a Chinese context in the late 1980s. Drawing insights from western theories on political development and political culture, they argued that China's lack of a civic culture meant an elitist democracy would be an historically necessary and inevitable stage during the process of democratization. To implement elitist democracy in China, the existing political institutions should be made more open to experts, technocrats and intellectuals. This political proposal was advanced, involuntarily, during the Tiananmen Movement of Spring 1989, but eventually suffered a great setback. Nevertheless, the article maintains that elitist democracy remains relevant to China's democratization in the future.     

Rising China in India's vicinity: a rivalry takes shape in Asia

New Delhi has been grappling with the challenge of China's rapid rise for some time now. Even as they sign loftily worded documents year after year, the distrust between China and India is actually growing at an alarming rate. True, economic cooperation and bilateral political as well as socio-cultural exchanges are at an all time high; China is India's largest trading partner. Yet this cooperation has done little to assuage each country's concerns about the other's intentions. The two sides are locked in a classic security dilemma, where any action taken by one is immediately interpreted by the other as a threat to its interests. This article examines the trajectory of contemporary Sino-Indian relations from India's perspective and argues that a troubled history coupled with the structural uncertainties engendered by their simultaneous rise is propelling the two Asian giants into a trajectory that they might find rather difficult to navigate in the coming years. This is an empirical analysis of India's changing approach towards China in the context of China's recent rise, not a theoretical exposition of the issue.     

Financial Markets Matter More than Fiscal Institutions for the Success of the Euro

Many argue that the euro is handicapped as a currency because European governments are unwilling to pool responsibility for fiscal policy in common institutions. This argument is derived from the theory of optimum currency areas and fuelled by analogy with US experience. It is mistaken. A monetary union does not need a fiscal union to work. Worse, efforts to build European fiscal institutions are likely to distract European policymakers from a more important agenda. Europe needs a fully functioning banking union with a common risk-free asset if Europeans want to stabilise the euro as a common currency. Moreover, it would need these things even if the euro did not exist and all it had was the common market. Financial stability – and not fiscal federalism – is the key to Europe's future. European policymakers should focus their efforts on building the necessary institutions.     

New Chinese Discussions about Securing China's Territorial Frontier

This article places the emergent Chinese discussion about frontiers into a broader historical context. It then turns to a detailed analysis of the heterodox stances on frontiers that Yu Xiaofeng and Xu Lili, and Ma Rong have recently articulated. The conclusion notes that such relatively iconoclastic approaches to territory still stand outside the mainstream of official policy and elite writing about China's boundaries. However, it will also maintain the writings that are the focal point of this article have nonetheless begun to carve out a space for re-imagining China's current approach to territory and nationality.     

Reflections on Producing Security

Whether China's strategic culture is offensive or defensive in nature is an interesting question in understanding Chinese foreign policy behavior. Alastair Johnston argues for a parabellum culture of offensive realism that leads to a pattern of Chinese aggressive behavior. But China's behavior in the Korean War, the Sino-Indian War, and the Sino-Vietnam War shows a defensive pattern that Johnston's analysis cannot fully explain. By analyzing the operational code of Mao Zedong's public foreign policy speeches, using the automated Verbs in Context System (VICS) of content analysis, this article attempts to determine whether Mao's belief system reflected the influence of a defensive or an offensive strategic culture, and compares the results to Johnston's analysis. The results indicate that Johnston's cultural realist argument is only partially correct and needs to be qualified in important respects. The operational-code analysis of Mao Zedong reveals a more complex reality than did Johnston's analysis. The results partly support Johnston's claim about Mao as an offensive realist, but this result cannot be generalized across situations, as the operational code analysis shows that strategic beliefs are not static. Mao's beliefs were also the product of his personality and of the international historical setting.     

Hostage Diplomacy: Britain,China, and the Politics of Negotiation, 1967–1969

During the radical phase of the Cultural Revolution in 1967–1969, China's violation of the diplomatic norms of the international community reached an unprecedented level. Two dozen British diplomats and private citizens on the mainland became de facto hostages of their host government. In response to China's hostage-taking, the British government preferred quiet diplomacy to extreme retaliation such as a rupture of diplomatic relations and economic sanctions. It focused on negotiations through minimal publicity and reciprocal gestures. But in China, the British found a culturally different negotiating partner that was obsessed with principles rather than details. Through a step-by-step negotiating approach recommended by the Sinologists in the British Mission, London was finally successful in securing the release of its detained nationals. The lesson of Britain's quiet diplomacy was a culture-sensitive approach to negotiation and the ability to separate the hostage question from the wider political and economic relationship that would facilitate the resolution of future hostage crises.     

Village Self-Governance and Democracy in China: An Evaluation

Village self-governance in China, of which election of the village committee members is the most salient feature, has attracted much attention in the recent decade. Originally established to deal with the chaotic situation in the countryside after the collapse of the commune system in the late 1970s, village self-governance has been regarded as having made significant contributions to China's political reform and democratization. This article reviews three such contributions: institutional innovations relating to village election, a more democratic style of administration at the village level, and a new consciousness of citizenship among the Chinese peasants. However, limitations and deficiencies also exist which seriously curtail or even overwhelm the possible contributions village self-governance can make. First, only a small part of China's vast countryside implements self-governance. Thus, very few peasants are exposed to and nurtured with democratic values. Second, village self-governance can be easily subverted by the local communist cadres. Third, even if genuine self-governance is implemented, the experience cannot easily be transplanted into an urban setting of a higher level, due to the small size and related characteristics of the Chinese village. Therefore, a more balanced and lucid view is needed in evaluating the contributions of village self-governance to China's democratization.     

A western cold war: the crisis in Iceland's relations with Britain,the United States,and NATO, 1971–74

The article explores the crisis in Iceland's relations with the Western Alliance following a left-wing government's decisions, in 1971, to expand Iceland's fishery limits and to demand the withdrawal of US military forces. This sparked a cod war with Britain and a diplomatic stand-off with the United States, with NATO in the middle. It analyzes the motives behind Iceland's behaviour – especially the tension between a pro Western foreign policy course and a domestic anti Western nationalism – the Western response within the context of alliance politics and the democratic peace theory, and the role of international mediation and domestic political realignments in diffusing the crisis.     

The European Union and Belarus: democracy promotion by technocratic means?

Is Belarus an enviable constant in international relations: a maverick, isolated from the West and inseparable from the East? On the surface, there seems to be business as usual: Lukashenko's regime remains unchallenged; Belarus’ relations with the European Union – spasmodic at best; while its absorption into Russia's Eurasian project continues apace. Yet, some critical disjunctures – manifested in government tacit resistance to Russia's influence, and more instructively, in people's growing affinity with Europe – may indicate a sea-change transformation in the very fabric of society. This article, utilizing extensive and subject-focused research, conducted in the country between 2009 and 2013, examines the nature and causalities of the occurring change. It argues that democracy promotion, in Belarus’ case, may work better when depoliticized and inculcated, through norms, regulations, and practices of international order, into the daily lives of individuals. Through its continued technocratic, inclusive, and sector-level engagement, European Union governance, even under the conditions of limited bilateral dialogue, have succeeded in fostering much-needed space for reciprocal learning and critical reasoning, which may have far greater transformative potential than manufacturing a single collective will for democracy building.