Chapter 2 - China's
foreign policy
China
pursues an independent foreign policy of peace, follows the road of peaceful
development, works hard to integrate the efforts to safeguard its own national
interests and promote common interests of all countries, and strives for a
constructive role in international affairs.[14]
Introduction
2.1
China's
approach to foreign policy has become considerably more open and
outward-looking over the past decade, matching its increasing engagement with
global trading markets.[15] In this context,
this chapter has two parts. The first considers the factors shaping China's
foreign policy, particularly China's
need to secure reliable supplies of raw materials and to assert a confident
national identity through its foreign policy. The second part looks at the type
of diplomacy that China
has adopted in international affairs, and other countries' perceptions of the
intent underpinning this approach. It also examines the challenges confronting China's
nearest neighbours, its key trading partners and its major strategic allies as it
emerges as a political and economic force in the region and a powerful influence
in world affairs.
Factors shaping China's
foreign policy
The importance of economic growth
and social stability
2.2
The Chinese people face an unprecedented rate of social
and economic change as their country opens up to the forces of the global
marketplace. China's
economy is expanding rapidly, its social structures are undergoing reform and
its people are being exposed to new ideas and changing expectations.[16] China
is a country of great size and diversity; maintaining stability in such a large
country emerging from a tightly controlled and planned political, social and
economic system is a major challenge for its leaders. Premier Wen
Jiabao described the task pointedly:
In China
with 1.3 billion people, any small problem multiplied by 1.3 billion
will become a huge issue. Any big amount of wealth divided by 1.3 billion
will be reduced to a small amount of per capita figure.[17]
2.3
Professor Ross
Garnaut has expressed the view that the
biggest test for China
to sustain economic growth would arise as pressures grow within the country for
democratisation of the political process.[18]
2.4
Witnesses appearing before the committee shared this
view. Professor David
Goodman noted the potential for conflict
caused by a political structure out of step with the expectations of people
living in a country undergoing significant economic and social change.[19] Mr
Garry Woodard,
former Australian Ambassador to China,
also commented on the magnitude of the problems confronting the leadership in China.
He observed that:
...holding China together is a fantastically difficult thing for
a government to do...the range of problems that China faces every day is so vast compared
with ours that it was really impossible for us to understand how the leadership
there grappled with them.[20]
2.5
Professor James
Cotton was of the view that public opinion
in China is
focused on the many and serious internal problems that the country
faces—ecological, economic and social.[21]
The Australian Department of Foreign Affairs and Trade (DFAT) outlined for the
committee some of the specific difficulties the Chinese government faces:
There are challenges such as unemployment and disparities
between the wealthy parts of China
along the eastern coast and the central and western parts of China.
There are disparities between urban dwellers and rural dwellers. They face
challenges in terms of financial sector reform and problems with nonperforming
loans. They also face huge challenges because of unemployment problems involved
with state owned enterprise reform...They face challenges in terms of reforming
agriculture. At the moment around 700 million citizens are still underemployed
in the agriculture area. They also face huge infrastructure problems, which can
pose a threat to growth.[22]
2.6
Managing evolving social and political forces as the
economy expands and the Chinese people are exposed to new ideas will be very
difficult. The Chinese leadership is acutely aware of the possible dangers
stemming from the rapid social and economic changes occurring in their country,
acknowledging that social conflicts are emerging 'in great numbers and in more
varied forms'.[23] In June 2005,
President Hu Jintao stated that over the coming decades China faces
problems and contradictions 'more complicated and thorny than others' as its
moves from a planned economy to a market economy, with its social structure and
ideological setup also in a state of transition.[24]
2.7
China's
Ambassador to Australia,
Her Excellency Madam Fu Ying, has also referred to the potential for domestic social
instability:
China's
development is not all rosy and is not without challenges. The gap is widening
between the east and west, between the rural and urban areas and between the
haves and have-less. It gives rise to social issues that threaten stability.[25]
2.8
Internal unity and accord in China
is of paramount concern to the Chinese leadership which places a heavy emphasis
on building a 'harmonious society'. On many occasions, the Chinese government
has stated its commitment to paying close attention to social stability.[26] It appreciates that a continuation of
China's economic development is vital to managing changes in Chinese
society—that economic prosperity promotes social stability and vice versa. Indeed,
Chinese leaders consider sound economic growth as the 'material foundations for
a harmonious society'.[27]
2.9
The increasing integration of China's
economy with the outside world means that China's
economic prosperity is closely connected to the economic wellbeing of the
global economy. The United States'
Deputy Secretary of State, Mr Robert
Zoellick, stated succinctly that 'China
clearly needs a benign international environment for its work at home'.[28] Chinese leaders also make a clear
connection between the international situation, internal social stability and
economic growth.
2.10
They openly acknowledge that China's
diplomacy must serve the country's economic development.[29] They espouse a foreign policy that
clearly recognises the importance of global stability to their country's
economic prosperity and their own political legitimacy. In February 2005, Madam
Fu Ying, stated that China's
imperative is to maintain security through stability and growth:
Traditionally, the term 'security' is related to military
posture and defence forces. But for China...the
greatest security concern is to ensure an environment for continued economic
development.[30]
2.11
Premier Wen reinforced this view:
The international situation is undergoing complex and profound
changes. Peace and development remain the themes of our times. The road of China's
socialist modernization drive is a road of peaceful development. China's
intentions in taking this road are to take advantage of favourable conditions
presented by world peace to develop itself and better safeguard and promote
world peace through its development.[31]
2.12
Having friendly relations with its trading partners is vital
to China's
economic development and forms a central plank in its foreign policy.
The importance of securing reliable
supplies of essential resources
2.13
In order to drive its continuing economic development, China
is becoming increasingly dependent on a steady, secure and substantial supply
of energy resources.[32] A number of
analysts contend that China's
growing appetite for energy presents a serious challenge to its economic growth
rate.[33] Domestic supplies cannot meet China's
demand for raw materials and China
relies heavily on overseas producers for these essential resources. This
reliance places China
in a vulnerable position.[34]
2.14
The Chinese leadership is keenly aware of the
difficulties facing China
in satisfying its energy needs. At the beginning of 2005, China
noted that supplies of energy, raw and processed materials and transportation
had increased significantly over the previous two years but that supply lagged well
behind demand for coal, electricity, petroleum and transportation.[35] Madam Fu
has stated:
The rising demand for energy and mineral resources is posing
another serious challenge, as our own supply is not adequate to meet the
demand. It is estimated that, by 2010, China
will have to import one third of its mineral needs. By 2020, half of China's
consumption of oil and gas will depend on overseas sources. We clearly need
wisdom and farsightedness in managing our growth.[36]
2.15
China
is the world's second largest oil consumer, accounting for eight per cent of
global consumption. From 1994 to 2005, its crude oil imports have increased at
a rate of 13 per cent annually.[37] China's
preoccupation with securing its energy supplies is reflected in its foreign
policy. China has
announced that it would 'carefully organise the import of energy, raw and
processed materials, key technologies and major equipment that are badly needed
and in short supply in China'.[38]
2.16
Accordingly, China
is deliberately cultivating special relations with countries rich in the
natural resources it needs to drive continuing economic development.[39] It is becoming a major energy player
in the Middle East and Africa.
The China National Offshore Oil Corporation (CNOOC) holds significant
investments in oilfields in Iran,
Sudan and Nigeria.
In January 2006, China
and Saudi Arabia
signed an agreement on oil, natural gas and minerals cooperation in which Saudi
Arabia promised to increase annual oil and gas
exports to China
by 39 per cent.[40] The same month, China
and India
signed a series of energy cooperation agreements designed to promote strategic
cooperation for resources.[41] As well
as developing broader government-to-government diplomatic, trade, investment,
aid and military links to secure its supply of energy from overseas sources, China
is also placing a high priority on protecting its supply lines.[42]
The role of national identity in
shaping China's
foreign policy
2.17
A third significant factor shaping China's
foreign policy is its desire to promote the nation as a world leader worthy of
the highest respect. The U.S.–China Economic and Security Review Commission
noted that China
as a polity and a society enjoys international recognition for its own sake. It
stated that China
and many of its citizens are 'extremely proud' that Beijing
will host the 2008 Olympics. It also claimed that the Chinese press routinely
overplay 'mundane meetings between Chinese officials and other countries, even
when the country or meeting is strategically unimportant'.[43] The Commission suggested that the
Chinese government also uses the appearance or reality of international respect
to buttress the legitimacy of its domestic actions and circumstances.[44]
2.18
China,
indeed, takes pride in its new image as a responsible world power and 'a member
faithfully following international rules'.[45]
Its leaders use every opportunity to promote China's international standing,
not only by highlighting recent achievements and contributions, but by reflecting
on China's long and rich history—one that few countries can match. For example,
in a speech at the National Defence Academy of Japan, Ambassador
Wang Yi stated:
China's
peaceful development is rooted in its 5000 years of history which in fact
extends spiritual support for its development road.
This year marks the 600th anniversary of Chinese Ming
navigator Zheng He's voyages to the west. At his time Zheng He's fleet was the
strongest in the world, visited South East Asia for six
times and once reached as far as North Africa. However,
as former Malayasian Prime Minister Mahathir
said, Zheng He's fleet brought trade of cargo and spread culture and friendship
without war or invasion, which is totally different from the later European and
US colonists. Such a tradition of regarding moralities as neighbour and
emphasizing great virtue, as a major component of the Chinese culture, has
extended today.[46]
2.19
The above quotation shows that in cultivating its sense
of nationhood, China
has chosen to plant its identity in a perceived long tradition of friendship
and cooperation with other countries; of 'valuing peace and good
neighbourliness'.[47] Indeed, China's
national story is now one of a people who have overcome obstacles and are
achieving success by keeping to their chosen path of peaceful development. The
story is a compelling one and is clearly woven into Chinese foreign policy.
2.20
In public pronouncements, Chinese leaders link domestic
harmony with broader aspirations for world stability and cooperation between
nations. They hold that only a united and stable China
can achieve higher international status. Both the national and international
narrative is infused with notions of peace, cooperation and development:
The Chinese nation loves peace and advocates that nothing is
more valuable than peace and all nations should live in peace and harmony.
Subjected to untold external aggression and suppression in its modern history, China
fully understands how precious peace is. At present, the Chinese people are
concentrating on development and nation-building along a road of peaceful
development. China
needs a long-lasting and stable international environment of peace for her
development, which, in turn, will promote world peace and progress. China,
holding high the banner of peace, development and cooperation, will remain
committed to pushing forward the process of international arms control, disarmament
and non-proliferation.[48]
2.21
In
recent times, the Chinese government has often made public reference to the
'Five Principles of Peaceful Coexistence'. The principles are: mutual respect
for sovereignty and territorial integrity, mutual non-aggression,
non-interference in each other's internal affairs, equality and mutual benefit,
and peaceful coexistence. They were the product of Sino–Indian negotiations in
1953–54 and have since been adopted in various international documents.[49]
2.22
Notably,
these values have recently been repackaged as 'not just principles for
peace, but also principles for development'.[50]
Premier Wen has argued that in applying the principles to the economic realm, all nations should respect the right of countries
to make independent economic decisions, their equal right to participate in
competition on a level playing field, and their access to mutual benefit and
economic success.
Summary
2.23
China's
national identity shapes its foreign policy and influences its implementation.
In strained relations where national identity is a significant factor, for
example in China's relations with Japan and Taiwan, a sound appreciation of
China's history and its sense of self as an advocate for peace and stability is
integral for countries managing any dispute with China.[51]
2.24
The three major forces shaping China's relations with
the outside world—the need for regional stability, the drive to secure energy
supplies and its national identity as a good neighbour and responsible world
citizen—have given rise to a foreign policy whose first principle is 'peaceful
development'. The following section looks in greater detail at China's
public diplomacy and how other countries respond to it.
Peaceful development and smile diplomacy
2.25
In formulating China's
foreign policy, the current Chinese leadership have been guided by the
country's needs as a major economic force. The focus is on contributing to a
politically stable world to ensure continuing economic development for China
and its trading partners. China's
message to its people and the international community clearly articulates a
desire to cultivate friendly relations with other nations:
China
pursues an independent foreign policy of peace, follows the road of peaceful
development, works hard to integrate the efforts to safeguard its own national
interests and promote common interests of all countries, and strives for a
constructive role in international affairs.[52]
2.26
As noted earlier, China
needs stable and amicable relations with the outside world to ensure its future
economic growth and prosperity. This reliance explains the centrality of 'peaceful
development' in its stated foreign policy:
China's intentions in taking this road are to take advantage of
favourable conditions presented by world peace to develop itself and better
safeguard and promote world peace through its development...China will continue
the process of opening up and promote cooperation with all other countries on
the basis of equality and mutual benefit, concentrate on development and work
to preserve a long-term peaceful international environment and an excellent
neighbouring environment. China
will never seek hegemony and will always remain a staunch force safeguarding
world peace and promoting common development.[53]
2.27
One China
analyst termed this approach of co-opting the interests of neighbours through open
trade, joint ventures and investment as a 'smile strategy', another as 'the
charm offensive'.[54] The exercise of
influence in this manner is often referred to as 'soft power', which one U.S.
analyst has described in the following terms:
Soft power is the
ability to get what you want through attraction rather than coercion or payments.
When you can get others to want what you want, you do not have to spend as much
on sticks and carrots to move them in your direction. Hard power, the ability to coerce,
grows out of a country’s military and economic might. Soft power arises from
the attractiveness of a
country’s culture, political ideals, and policies.[55]
2.28
In contrast to influencing other nations through
military or economic might, cultivating soft power involves using a more
indirect form of influence—legitimacy. In the Chinese context, this aura of
legitimacy is being pursued by China
portraying itself as the 'good neighbour' in the region and the responsible
global citizen. Specifically, their exertion of soft power constitutes an
effort to alleviate prevailing concerns among East Asian countries of zero-sum
consequences from China's
rise.
2.29
When analysing soft power diplomacy, the importance of
legitimacy can not be understated. If China
is seen to be acting in the interests of regional peace, stability and
prosperity then a valuable store of public trust within other nations in the
region is accumulated.
2.30
China's
growing economic influence has already captured the attention of its neighbours,
who are increasingly looking toward China
for regional leadership. Indeed, China's
public diplomacy strategies build on its economic success, enabling it to
pursue a greater role in the region and more broadly in world affairs.
2.31
To gain the trust and respect of other countries and to
garner support for its foreign policies, China,
in pursuit of its peaceful rise image, has shown a preparedness to listen to, and
co-operate with, them. It should be noted, however, that at times China
appears to depart from its smile diplomacy. For example its recent attitude
toward Japan
has not been conciliatory and seems to contradict China's
'peaceful development' approach. On the issue of Taiwan,
China has
consistently argued it is 'an internal Chinese matter that brooks no outside
interference'.[56] (see paragraph 2.38
and chapters 7 and 8).
2.32
Even so, China
would prefer to be seen as an advocate for global harmony: to have its style of
diplomacy based on attraction rather than coercion. In its submission to this
inquiry, the Embassy of the People's Republic of China
(PRC) outlined China's
new security concept:
Since the mid 1990s, China
has been vigorously promoting a new security concept with mutual trust, mutual
benefit, equality and coordination at its core, advocating the settlement of
dispute through dialogues and cooperation.
- Mutual trust means that all countries should
transcend differences in ideology and social system, discard the mentality of
Cold war and power politics and refrain from mutual suspicion and hostility.
They should maintain frequent dialogue and mutual briefings on each other's
security and defence policies and major operations.
- Mutual benefit means that all countries should
meet the objective needs of social development in the era of globalisation,
respect each other's security interests and create conditions for others'
security while ensuring their own security interests with a view to achieving
common security.
- Equality means that all countries, big or small,
are equal members of the international community and should respect each other,
treat each other as equals, refrain from interfering in other countries'
internal affairs and promote the democratisation of international affairs.
- Coordination means that all countries should
seek peaceful settlement of their disputes through negotiation and carry out
wide-ranging and deep-going cooperation on security issues of mutual concern so
as to remove any potential dangers and prevent the outbreak of wars and
conflicts.[57]
2.33
Consistent with this policy, the Chinese government is using
a mix of trade incentives, confidence building measures and development aid to
convey to its neighbours the image of a country whose policy is 'peaceful
development'.[58] It has:
-
entered into cooperative trading arrangements;
-
begun to resolve border disputes through
peaceful negotiations;[59]
-
taken a more serious approach to observing its
nonproliferation obligations;
-
assumed an active and constructive role in the 'Six-Party'
talks;
-
embarked on an enthusiastic diplomatic regime of
meetings and exchanges among Chinese officials and their counterparts in other
countries with the focus on building bridges and cementing friendly relations;
-
become an active participant in multilateral
cooperation and signed agreements such as the Declaration on the Conduct of
Parties in the South China Sea and the Treaty of Amity and Cooperation; and
-
offered assistance to countries in need, for
example following the Asian financial crisis and to those affected by the tsunami
in December 2004.
Behind smile diplomacy
2.34
Although China's
foreign policy is designed to show China's
friendly face to the rest of the world, fears about its future intentions linger.
While most countries in the region publicly praise and welcome China's
friendliness, some remain unsure of China's
long-term ambitions and continue to engage cautiously with China.[60] For example, the Singaporean Minister
for Foreign Affairs, Mr George
Yeo, has observed:
The Chinese declare that it will never be a hegemonic power and
insist that China's
emergence will be peaceful. However, China
will be judged more by its actions than by its words. China
plays a major role in maintaining peace on the Korean Peninsular. China
has to win over the hearts and minds of the Taiwanese people so that
reunification is not only a matter of legal right but also an act of
reconciliation. China
can help to make the UN and the WTO work better. How China
manages its growing presence on the world stage will be carefully watched by
countries big and small.[61]
2.35
A number of political leaders and analysts in Japan
and the U.S.
are particularly wary of China's
rise.[62] They remain unconvinced that China's
motives are benevolent, suspecting that there are more sinister reasons behind China's
'peaceful rise' rhetoric. From an American perspective, U.S. Deputy Secretary
of State, Robert Zoellick,
has stated that many Americans 'worry that the Chinese dragon will prove to be
a fire-breather'; noting that there is 'a cauldron of anxiety about China'.[63]
2.36
He also observed that other countries have doubts about
China's long-term
designs, prompting them to exercise caution, or 'hedge', when formulating their
foreign policies:
Uncertainties about how China
will use its power will lead the United States—and
others as well—to hedge relations with China.
Many countries hope China
will pursue a 'Peaceful Rise,' but none will bet their future on it.[64]
2.37
Various commentators cite China's
heavy investment in military capability despite the absence of an identifiable
threat as inconsistent with its stated foreign policy.[65] They also suggest that China's active
engagement in multilateral fora and its advocacy of economic integration mask
more ambitious goals—that it may be simply a 'tactic to leverage its
longer-term strategic objective of regional domination: a sphere of influence
at minimum or, as some scholars have fretted, a revitalized tribute system'.[66] One Japanese analyst has stated that China
has embarked on a course leading to regional hegemony:
China
sees the rest of the world as something to control or, failing that, to use
adeptly; it basically has no idea that it should coexist with the international
community. In order to advance China's
national interests and their own political objectives, the rulers in Beijing
have no compunctions about playing games on the international stage, mobilizing
the people through various manoeuvres and appealing to international opinion
with consummate skill.[67]
2.38
During 2005, a number of unresolved tensions flared up
in the region raising questions about China's
long-term objectives. They included:
-
the passing of an anti-secession law aimed at
Taiwan by the National People's Congress following the stirrings of
pro-independence sentiments in Taiwan that heightened tensions between China
and Taiwan; and
-
violent anti-Japanese protests in Beijing,
Shanghai and elsewhere in China about Japan's interpretation of its war history
and the subsequent cooling of relations between the two countries.
2.39
Moreover, the growth in Chinese military power and
capabilities at a time when China's
strategic roadmap is unclear fuels concerns about the direction of China's
military development and also adds to the uncertainty about China's
future designs. In particular, some in the U.S.
distrust China's
motives behind the development of its power capability and see a fundamental
contradiction in its behaviour. Richard
Fisher, Jr,
told the House Armed Services Committee that:
China
faces no identifiable threat, yet it is building a powerful military which
threatens Asian power balances, and provides incentives for China
to employ force to settle a range of issues and challenges, ranging from the
territorial and energy-related to the militarily strategic.[68]
2.40
China's quest to secure its energy supplies could also strain
relations, or even generate hostility, between China and a number of other
countries. Concerns over both China's
procurement of energy resources and future military intentions are discussed in
greater detail in the context of Sino–U.S. relations in Chapter 4 and Chinese military
modernisation in Chapter 6.
2.41
Some witnesses before the committee were also qualified
in their view of China's
peaceful rise. Professor Paul
Dibb, Director of the Strategic
and Defence Studies Centre at the Australian
National University,
remarked that:
It all depends upon what sort of China
we see emerging. There are at least two schools of thought...one is about a China
which is more economically intertwined, more interdependent, modernising and,
some would say, hopefully then becoming more politically democratic. I think
that remains to be seen, frankly. It may be that China
has invented a new model in which authoritarian Communist Party control and
high standards of living have delivered what the Soviet Union
could never do.
...history will tell us that the chances of competition—and you
notice that I do not use the word 'conflict'—between an emerging power and the
status quo hegemony has happened before, particularly with two different
cultures and value systems.[69]
2.42
Dr Brendan
Taylor, a post-doctoral fellow at the Strategic
and Defence Studies Centre, acknowledged that China's
use of soft power in the region had become 'significantly more adept' over
recent years and its new diplomacy 'more adroit'. Even so, he argued:
...in reality there still does exist a significant degree of fear
and apprehension throughout South-East Asia, or a number of countries in
South-East Asia, as to what shape China's rise will ultimately manifest itself
in.[70]
2.43
According to Professor
Bruce Jacobs:
I think the difficulty in dealing with China, and this is a
problem for most countries including Australia, is that historically—and we
have to be careful about drawing a lot of things historically—China was the
centre of its world and foreign relations between China and other countries
were hierarchical...Most countries are stuck in this unequal relationship, and
I think to some extent we have got ourselves in that situation.[71]
2.44
He also stated:
If you look at the relationship with India,
there is competition and I think some of the South-East Asian countries feel
that China is a
huge country next door to them and they have to be careful not to upset them.
To some extent I think that has become our approach.[72]
2.45
While China
acknowledges that its intentions are sometimes questioned, it remains resolute
in conveying to the rest of the world its determination to build stable and long-term
cooperative relationships. China
insists that its people 'are ready to work together with everyone in the world
to achieve peace, development and cooperation among all nations'. In an address
to the Asia Society, His Excellency, Mr Zhou Wenzhong, China's Ambassador to
the United States emphasised China's stated position that it would never seek
hegemony and would always remain 'a staunch force safeguarding world peace and
promoting common development'.[73] He stated:
Take a look at the trail China left behind over the past decades
and you will see that China is sticking to a road of peaceful development,
namely, taking advantage of the relative peace in the world to develop itself
and working for greater peace in the world as it becomes more developed. China
never seeks hegemony. China
never dreams a 'Soviet Union dream'.[74]
Conclusion
2.46
China
openly acknowledges that its diplomacy must serve its economic development.
Chinese leaders espouse a foreign policy that places high importance on global
stability, friendly and cooperative relations and good neighbourliness. It is
deliberately cultivating special relations with countries rich in the natural
resources it needs to fire continuing economic development and is presenting
itself to its citizens and the outside world as an advocate for global peace.
It wants to reassure the world that its 'peaceful rise' does not pose a threat.
2.47
Although unsure of China's
long-term intentions, most countries publicly praise and welcome China's
friendly foreign policy. Some, especially those with important economic links
with China,
such as Australia,
are keen to strengthen their diplomatic relations but are aware that the
relationship is not risk free.
2.48
The following chapters consider China's
present foreign affairs stance, including its stated intention to pursue an
independent foreign policy of peace and to promote the common interests of all
countries. They examine how this 'good neighbour' policy manifests itself in China's
relationship with other countries, and how this in turn affects Australia.
The report also examines the apparent contradictions between China's
stated intentions and its actions, especially where there are irritants in the relationships
with the potential to cause serious rifts. The following chapter examines China's
relations with its nearest neighbours in East Asia.
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