GREAT POWERS

Out Into the World

China is ready to become a good citizen— but on its own terms.

 

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For years, western leaders have been trying to figure out how to integrate China into the international system. It turns out that the Western debate has paralleled one inside China itself.

In 2005, when the West first started asking China to abide by international rules in Africa, take a lead in climate-change talks, contribute more to international security and abandon its mercantilist trade policy, Beijing didn't respond well. Who could blame it? Until recently, Chinese leaders had been obsessed with domestic priorities and rarely considered the foreign ramifications. When they did, they figured their greatest international contribution would be to feed and house 1.3 billion Chinese.

A conspiracy-minded minority in Beijing still views the West's requests with suspicion. This group is best represented by Jiang Yong, director of the Center of Economic Security at the China Institute of Contemporary International Relations (an affiliate of the Ministry of State Security). Writing in mid-2007, Jiang warned that Washington's calls for China to accept more international responsibility were really just a way to frustrate China's rise. Because the existing global economic order and its rules were established by the West, Jiang argued, they serve the West's interests, not China's. Were China to comply with the WTO's intellectual-property protections, for example, it would trap China in its role as a low-tech, low-cost manufacturer. Rules on environmental protection and resource conservation, similarly, would hurt Chinese economic development. To Jiang, it all amounted to a subtle strategy of keeping China down.

Few prominent thinkers publicly embrace such theories. That said, none believe Beijing does things purely on the West's terms, either. The furthest moderates are ready to go is to accept China's new obligations as a reality and argue that China should honor them the best it can.

As Shi Yinhong, a professor of international relations at Beijing's Renmin University, wrote in a People's Daily online forum at the end of 2007, while China need not dance to the West's tune, it risks alienating other countries—even in the developing world—if it keeps refusing to become a "responsible stakeholder." Liu Jianfei, a professor at the Central Party School in Beijing, echoed this perspective in a newspaper interview in March 2008. Shi and Liu's view, which has become dominant in Beijing, sees accepting a bigger global role as necessary, like it or not. The trick is to do so on China's terms. Foreign Minister Yang Jiechi's statement to the National People's Congress in March 2008 best reflects this "realist" perspective. Yang argued that China should take on more international responsibility—but in an à la carte way that serves its own interests and that it helps define.

This idea has found many adherents, including Qin Yaqing, executive vice president of the Chinese Foreign Affairs University. In a March interview with a liberal Chinese business publication, Qin noted that China and the West share more common ground on some issues (climate change, energy security and environmental protection) than on others (humanitarian intervention)—implying that China should cooperate on the former but not the latter. Other areas of cooperation might include promoting Asian economic integration and helping resolve the North Korean nuclear problem. China also needs to ensure that any important reform in the existing international system serves its interests. But above all, Beijing's foreign policy should continue to serve China's key interest: economic development.

The dominance of this realist school is a mixed blessing for Washington. The good news is that Chinese leaders now understand that it's in their interest for China to act like a good global citizen. That means they'll be receptive to overtures to cooperate in areas where U.S. and Chinese priorities overlap. The bad news is that China sees its international standing rising while America's declines—and will drive a hard bargain before making any concessions. Gone are the days when the United States set the rule. China will now insist that its engagement with the international system proceed on its own terms. As experienced business people will tell you, the Chinese are tough negotiators even when in a position of weakness. Now that the global balance of power has shifted in their favor, striking deals will be still be possible—but the costs may be much higher.

Pei is a senior associate at the Carnegie Endowment for International Peace.

© 2008

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Member Comments

  • Posted By: MichaelX @ 05/01/2009 10:39:40 AM

    Is'nt that special! this nation of garbage re-cyclers wants the world to recognize it as a benevolent entity, but in reality, it is the most lowest form of human degradation. As with all "asian" sub-human species, the mentality of these "people"is at best a ridiculous sham of accuisition, and attempts at power.
    Hey, China, bug off!

  • Posted By: shalomhamou @ 01/03/2009 4:55:33 AM

    <b>Sorry! Quantitative Easing Won't Work</b>

    In a Liquidity Trap although Saving (S) is abnormally high investment (I) is next to 0.

    Hence, the Keynesian paradigm I = S is not verified.

    The purpose of Quantitative Easing being to lower the yield on long-term savings it doesn't create $1 of investment.

    It does diminish the yield on long-term US Treasury debt but lowers marginally, if at all, the asked yield on savings.

    This and other issues are explored in my tract:

    <b>A Specific Application of Employment, Interest and Money
    Plea for a New World Economic Order</b>


    Abstract:

    <i>This tract makes a critical analysis of credit based, free market economy, Capitalism, and proves that its dysfunctions are the result of the existence of credit.

    It shows that income / wealth disparity, cause and consequence of credit and of the level of long-term interest-rates, is the first order hidden variable, possibly the only one, of economic development.

    It solves most of the puzzles of macro economy: among which Business Cycles, Stagflation, Greenspan Conundrum, Deflation and Keynes' Liquidity Trap...

    It shows that no fiscal or monetary policy, including the barbaric Quantitative Easing will get us out of depression.</i>

    <b>A Credit Free, Free Market Economy will correct all of those dysfunctions.</b>


    The alternative would be, on the long run, to wait for the physical destruction (through war or rust) of most of our productive assets. It will be at a cost none of us can afford to pay.

    <b><a href="http://www.17-76.net/interest.html">A Specific Application of Employment, Interest and Money</a></b>
    http://www.17-76.net/interest.html

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