China's Foreign Policy-jul-aug2010

INFOCUS | FOREIGN POLICY

CHINA’S FOREIGN POLICY

Going soft for hard gains Soft power rests on the ability to shape the preference of others.

It is leading by example and attracting others to do what you want.

China is doing exactly that.

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Parama Sinha Palit

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OFT POWER’ HAS emerged as an important instrument of foreign policy during the last decade. It is being considered the ‘linchpin of public diplomacy’ by many who discount wars and the use of force. Predominantly considered a Western concept, Beijing’s cultivation of soft power seems inclined towards constructing “its ideal of international order in the age of China’s rise.”

Posing as the engine of economic growth, China is the new regional leader. Its expanding diplomatic and economic involvement with Asia is commensurate with its rise on the global arena. China’s growing influence is not limited to Asia alone. Its ‘soft’ power has penetrated into Africa as well. As the largest investor, trader, buyer and trade donor in a number of African countries, it has replaced European, American and Japanese diplomatic ‘soft’ power in many nations of sub-Sahara.

China’s gradual rise and its global activism are being watched by the other powers with great interest. In fact Beijing’s heavy reliance on ‘soft’ power during the recent years is constantly debated so much so that a lot of western literature perceives its growth of ‘soft’ power as a challenge. Its foray specifically into Southeast Asia is a cause of grave concern to the United States and its other Asian neighbours including India. China’s attempt to expand its ‘soft’ power is in contrast to its policy direction during the Cold War. Beijing’s support for the Khmer Rouge in Cambodia during the 1970s is wellknown. Beijing had sent the Khmer Rouge over 15,000 military advisers and provided the bulk of its external aid. Its military response to Vietnam’s incursion into Cambodia in 1979, and its forceful claims to disputed islands in the South China Sea during the1990s also contributed in tarnishing Beijing’s image worldwide.

Interestingly, China soon transformed its strategy towards Cambodia and became the most important foreign influence, providing foreign aid and even pardoning Cambodia’s entire

debt to China. Cambodia is not just one example. China also provides considerable assistance to Vietnam along with other Southeast Asian nations.

Beijing’s constructive role during the financial crisis of 1997 has been much appreciated. It was around this time that the international community was introduced to this new benign image of the Asian giant.

Concept of ‘Soft’ Power ‘Soft’ power dates back to the 7th century and is a contribution of an ancient Chinese philosopher Lao Tsu. However, it was Harvard professor Jo-

POSING AS THE ENGINE OF ECONOMIC GROWTH, CHINA IS THE NEW REGIONAL LEADER. ITS EXPANDING DIPLOMATIC AND ECONOMIC INVOLVEMENT WITH ASIA IS COMMENSURATE WITH ITS RISE ON THE GLOBAL ARENA. CHINA’S GROWING INFLUENCE IS NOT LIMITED TO ASIA ALONE. ITS ‘SOFT’ POWER HAS PENETRATED INTO AFRICA AS WELL. seph Nye who is credited with coining the term during the late 1980s. According to Nye, ‘soft’ power rests ‘on the ability to shape the preference of others…It is leading by example and attracting others to do what you want.”

Journalist and author Joshua Kurlantzick, provides an elaborate definition of ‘soft’ power. He explores the concept and has discovered that “soft power has changed” over time. A dynamic concept, soft power “means anything outside of the military and security realm, including not only popular culture and public diplomacy but also

more coercive economic and diplomatic levers like aid and investment and participation in multilateral organizations.” The Wikipedia suggests that “soft power is the ability to obtain what you want through co-option and attraction. It is in contradistinction to ‘hard power’, which is the use of coercion and payment.”

All definitions indicate the wide gamut of soft power ranging from cooption, attraction to humanitarian assistance, trade, aid and investment.

China’s ‘Peaceful Rise’ China’s rise is a matter of great debate in the 21st century. The international community is not only uncertain about this new emerging power, but is suspicious of its moves as well. Its military might and mounting defence budget made the Bush administration declare the ‘China threat’ and the need to ‘contain’ the giant. This drove Beijing to propose a ‘peaceful rise’ in 2003 to assuage international fear and mistrust. Soon ‘peaceful development’ was adopted at the 2004 Boao Forum. Since then ‘peaceful development’ or heping fazhan became the new thinking in Chinese foreign policy under the Fourth Generation Leadership. Many argue that this new foreign policy statement was a deliberate attempt by the Beijing leadership to secure a favourable international environment for its rise while accepting to operate within a unipolar model dominated by the US. Titled “China’s Peaceful Development Road,” the Information Office of China’s State Council published a White paper in 2005, explaining Beijing’s pursuit of “peaceful development.” It outlined the major policies the Chinese government had undertaken to demonstrate its determination to stick to the road of “peaceful development.” The new foreign policy strategy is defensive in nature. It aims to decrease the fear of a “China Threat,” by promoting good neighbourly and multilateral relations in the region and around the globe, and creating a peaceful and stable external environment for its economic development.

The policy statement is an indication that China is not inclined to be a

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INFOCUS | FOREIGN POLICY

hegemon. Historically proved, the Chinese have always followed ‘love, peace and harmony’. Its strategic culture discounted wars and the use of force while promoting ‘universal harmony and order’. However, history is also replete with Chinese use of hard power during the Cold War years. During the 1950s to 1970s Beijing sought to destabilize Southeast Asian governments both by supporting armed insurgencies and by mobilizing “fifth columns” among overseas Chinese, trying to export Maoist ideology. It also had border disputes and conflicts with every adjacent country. But with new dynamics at play, Beijing began to realize the futility of hard power and the importance of developing a ‘soft’ image in spreading its influence. China began to believe that its peaceful development “will help Beijing execute its foreign policy more successfully” in an enabling environment.

In accordance with its new foreign policy, ‘peaceful development’ is more flexible emphasising cooperation while focusing on ‘the economic development first.’ China realizes that its “soft power” – “1.3 billion population + 1

purchase order,” international trade and cooperation, economy, and culture – are tools to be used to improve China’s role as a rising power and to facilitate China’s economic development and modernization.

China Woos Southeast Asia, Africa China has been employing its ‘soft’ power instruments to reach out to its neighbours in Asia. While engaging the Southeast Asian countries, it has also made inroads into Africa. As far as Southeast Asia is concerned, Prof Wanfa Zhang points out that China is tapping the “third dimension of power” for assuming its new role in the world, particularly Southeast Asia.

Joshua Kurlantzick goes to the extent of referring to the Chinese version of the Monroe Doctrine as a policy which has helped Beijing to charm the region and in the process reduce Washington’s alliances in Southeast Asia. Whatever be the take on the issue, there is no denying that China is increasingly involved with the region.

Southeast Asia is strategically and economically a vital region. The Chi-

nese ambition is to build a “ring of political friendship” on China’s periphery to secure its borders. Given the past misunderstandings and interference by Beijing in Southeast Asia, China has been trying hard to improve its relations with the region. However, the tools it has been employing for engaging the region is essentially economic.

By virtue of its foreign aid and other economic assistance programmes or the Free Trade Agreements (FTAs) and similar other agreements that it has signed with the countries in Southeast Asia, China is moving closer to it. It has made a conscious decision to ignore outstanding border disputes with its neighbours while resorting to positive rhetoric in advancing its relations with Southeast Asia.

China’s soft power initiatives in this regard are many. The Early Harvest programme has allowed neighbours like Thailand to negotiate mutual reductions in trading barriers in some agricultural goods ahead of the ASEAN China Free Trade Area (ACFTA).

The extension of aid to the least developed Indo-china countries for infrastructural projects and a wider range of economic assistance that Beijing offers including non-development aid and low-interest loans, as well as trade and investment agreements has enhanced its position in the region. It offers aid to the more developed Southeast Asian countries of Indonesia and Philippines as well. Apart from offering aid to the Southeast Asian countries, its trade relations with the Association of Southeast Asian Nations (ASEAN) are also noteworthy. China’s trade with the countries has grown sharply over the last couple of years in terms of trade volume, percentage increase and size.

China is also a major source of ASEAN’s foreign direct investment (FDI).

Africa has also been witnessing growing Chinese involvement with the region. The reasons are clear. It holds a Foreign Minister of China Yang Jiechi shakes hands with Revolutionary Socialist Party MP Abani Roy after his lecture on China-India Strategic Partnership, organised by Indian Council of World Affairs and Institute of Chinese Studies

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fraction of the world’s proven oil reserves—9 per cent compared to the Middle East’s nearly 62 per cent—but industry analysts believe it could hold significant undiscovered reserves as well. This has prompted the oil-hungry Asian giant to get a foothold in the region. China is using its direct investment tool in Africa in a bid to enhance its ‘soft’ power image in the country.

However, Chinese presence in Africa has evoked some concern. It is increasingly believed that China’s offer of comprehensive and exploitative trade deals combined with aid to the poor countries in Africa is a definitive Chinese strategy to exploit the region for its own interests. Thus, while China seems to be trying to win over the African countries by projecting its ‘soft’ image, analysts are weary of this strategy.

Nonetheless, despite the apprehension, China has become the principal investor in Sudan’s oil industry and related transport and infrastructure projects.

The recent promise of $10 billion in cheap loans to Africa, and a pledge to cut customs duties is yet another example of Chinese continuing involvement with the region.

Not only does Beijing economically engage the countries in the Southeast Asia and Africa but their engagement has other facets as well. China’s establishment of Confucius Institutes as instruments for spreading Chinese language and culture abroad are examples of the other ‘soft’ power tools employed

by China to spread its influence across the globe. In an effort to promote familiarity with Chinese culture, Beijing offers scholarships for spreading the growth of Chinese language. Promotion of Chinese culture, Chinese-language schools along with networks of informal summits to bring together opinion leaders and the creation of a Chinese version of the Peace Corps for sending idealistic Chinese youth to developing countries for voluntary service projects are considered “vital to Beijing’s global charm offensive.”

Beijing’s hosting of the Olympics in 2008 is the most recent example of Chinese ‘soft’ power projection. By hosting the Beijing Olympics, China has made a strong pitch to advance its prestige and attraction across the world and not the region alone. With the Olympics, the ‘China element’ has

Foreign Minister of China Yang Jiechi [L] shakes hand with Pakistan High Commissioner for India Shahid Malik [C], after his lecture on China-India Strategic Partnership organised by Indian Council of World Affairs and Institute of Chinese Studies

been injected into the world.

Beijing’s new proactive regional posture is earning China a lot of appreciation in the world including Southeast Asia. This is striking given China’s past domineering role in the region. Its transformation has led the countries in its periphery to readjust their relations with China while looking at it as a reliable partner and a constructive neighbour. Its export of goodwill not only in Southeast Asia but even farflung countries such as in Africa has prompted the international community to take note of China’s emphasis on ‘soft’ power, which is emerging as a strong and visible component of Chinese foreign policy. This change in China’s image is encouraging and highlights the changes that have occurred in China’s foreign policy directions in the 21st century.

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A Harmonious Quartet BRIC nations voice concerns over global issues and reaffirm belief in the unity among four friends. |28| India-China Chronicle

July-August 2010

ond BRIC summit in Brasilia on April 15, “our four countries have become good friends and good partners.”

This is scarcely a small feat from a diplomatic point of view. Moreover, the four countries’ willingness to transcend their differences to seek a common voice—as shown at the increasingly institutionalized BRIC summits—will help speed changes in international economic and political dynamics, Chinese international studies experts said.

Yan Wei

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hen Goldman Sachs first coined the BRIC concept a decade ago, the international investment and securities firm by no means expected that Brazil, Russia, India and China would later unite into a formal alliance. Indeed, if anything, the four fast-growing economies have since proven that BRIC represents far more than just an eye-catching acronym.

“Despite the differences in political systems, development modes, religious beliefs and cultural traditions,” said Chinese President Hu Jintao at the sec-

A bigger say Given the declining role of the United States in the wake of the global financial crisis, the other major world powers have since vied to secure themselves in favorable positions in international economic and financial negotiations, said Jin Canrong, Associate Dean of the School of International Studies at Renmin University of China.

With this in mind, he added, they have formed a variety of groups based on common interests.

At their second summit in Pittsburgh in the United States in September 2009, leaders of the Group of 20 (G20) major economies designated the G20 as the “premier forum” for international economic cooperation. This year, the G20 leaders are scheduled to meet in Canada in June and South Korea in November for two more summits.

The BRIC summit in Brasilia was meant for the BRIC nations to prepare for the coming G20 summits by coordinating their positions.

The four powers, meanwhile, held their first summit in Yekaterinburg, Russia, in June 2009—three months ahead of the G20 Pittsburgh summit.

The BRIC countries, not surprisingly, are home to 42.9 per cent of the world’s population, and make up 15.5 per cent of global GDP. The BRIC countries are also large countries with global aspirations and have, in the past, been relatively marginalized in the currently US-dominated international system. These commonalities have enabled them to work in concert to seek a greater say in the international community.

The reform of international financial institutions offers a good example.

Reforming the international financial

system, including adjusting voting power in the World Bank and the International Monetary Fund (IMF), was among the major agreements reached at the summit. The IMF and the World Bank urgently need to “address their legitimacy deficits,” BRIC leaders said in a joint communiqué.

Restructuring the governance of these institutions requires a substantial shift in voting power in favor of emerging market economies and developing countries, thus bringing their participation in decision making in line with their weight in the world economy, said the communiqué.

Apart from economic issues, BRIC leaders also addressed diverse topics at their second summit. These range from poverty reduction to antiterrorism— evidence that the summit has become more institutionalized. But the expanded agenda may pose risks because of the countries’ inherent differences.

THE BRIC COUNTRIES, NOT SURPRISINGLY, ARE HOME TO 42.9 PER CENT OF THE WORLD’S POPULATION, AND MAKE UP 15.5 PER CENT OF GLOBAL GDP. The BRIC countries, for instance, hold vastly different views on some international issues such as the Iranian nuclear issue and the reform of the UN Security Council. Moreover, China and India tend to compete over market shares and resources. Brazil and Russia, meanwhile, are both major exporters of raw materials to China, so frictions between suppliers and buyers are practically unavoidable.

Future plans In the face of both “rare opportunities” and “severe challenges,” the BRIC countries need to chart a future course for their cooperation, Hu said at the summit. In this respect, he noted, political trust, practical

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cooperation in diverse fields, institutional development, win-win results, openness and transparency are of pivotal importance.

At the summit, Hu called on the BRIC nations to take the lead in laying a more solid foundation for global economic recovery by enhancing coordination in macro-economic policies. The BRIC countries, he added, should also encourage other parties to address imbalances in the global economic governance structure, while increasing the representation of emerging markets and developing countries in international financial institutions.

At the same time, said Hu, they should promote trade liberalization, properly handle trade disputes, oppose protectionism and promote the establishment of an open and a mutually beneficial multilateral trading system. The alliance, he added, should work to improve the international financial regulatory system by expanding the scope of regulation while identifying regulatory responsibilities.

The BRIC countries should also call on the international community to redouble its efforts to pursue development while respecting different models of development that countries have practised, based upon their actual conditions. Industrialized countries in particular, Hu said, must honor their commitments to assisting developing nations, debt relief, market access and technology transfers to help developing countries achieve economic growth.

Hu also said that China will host the third BRIC summit next year.

Hu’s words, said Wang Yizhou, Associate Dean of the School of International Studies at Peking University, demonstrated hopes for deepened cooperation between the BRIC nations.

Despite the dramatic rise in their economic clout in recent years, emerging countries have yet to play a leading role in many international forums, he said. Against this backdrop, there is a driving need for BRIC nations to work together on international issues.

Wang also voiced his belief that BRIC cooperation remains at an early stage, and thus the four countries will need decades to realize their longterm objectives. |30| India-China Chronicle

A growing partnership During their talks on April 15, Hu and Brazilian President Luiz Inacio Lula da Silva agreed to further advance bilateral ties. Hu had planned on paying state visits to Brazil, Chile and Venezuela after attending the second BRIC summit.

But when a devastating earthquake struck China’s Qinghai Province on April 14, he decided to cancel his visit

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to Chile and Venezuela and return home to direct disaster relief efforts.

Before his departure, Hu told Lula that both the Chinese and Brazilian governments should encourage their businesses to invest more in each other’s countries in areas such as energy, mining, agriculture, industry and infrastructure development.

China is also willing to cooperate

with Brazil in oil exploration and in developing new energy resources such as bio-fuels.

In terms of cooperation with regards to science and technology, Hu recommended that both sides collaborate closely in the China-Brazil Earth Resources Satellite programme, under which the two jointly develop and operate earth observation satellites.

In addition, China will launch a “Month of Chinese Culture in Brazil” later this year, while Brazil will stage a “Month of Brazilian Culture in China” in 2011 to promote cultural and peopleto-people exchanges.

During Hu’s visit, China and Brazil also signed the 2010-14 Joint Action Plan, as well as 15 other documents concerning areas such as trade, culture and

product quality inspection.

China is Brazil’s biggest trading partner, second biggest export market and second biggest source of imports.

Two-way trade, according to China’s official statistics, reached $42.4 billion in 2009.

(This article appeared in the April 29, 2010 edition of the Beijing Review)

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