The Foreign Policy of China

[Bambino Machievelli]

Chinese Foreign Policy: 

A Comprehensive look at both the Internal and External Factors Which Influence China’s Foreign Policy Decisions 


Steven Pearce 

4/10/2010 



The largest country on the planet, China finds itself in a unique position. China currently has the fastest growing economy in the world and is currently the second largest economy. As a permanent member of the U.N. Security Council, China has a lot of influence and control in the World’s events. 


  
Introduction 
Methods of Research 
A Brief Background on China 
China’s Stated Foreign Policy Objectives 
Internal Factors 
External Factors 
China and the Sudan 
China and Tibet 
China and Taiwan 
Conclusion 




Introduction 
China is on the brink of becoming a global superpower. With the world’s fastest growing economy and having a permanent seat on the UN Security Council, the decisions and actions that China makes has serious ramifications for the rest of the international community. Not only is China an ancient society, but China’s population is well aware of her history which causes a feeling of ultra-nationalism within China that has a major bearing on the political decisions of the government. This as well as a 1.3 billion population has a major affect in the way that the Chinese government deals with domestic problems and issues. The ultra-nationalistic feelings of a large population have a huge influence on the foreign policy goals and objectives as well. This has caused a feeling of insecurity amongst Chinese leaders. 
China has become a major economic regional and world power. With the influx of investment money by Multi-National Corporations (MNCs) into the Chinese economy, this has created a trade imbalance between China and many other nation-states of the world. This trade imbalance has caused much resentment, fear, and anxiety between China and other countries. The trade imbalance is misleading though; most of the money made is not by the Chinese government but by MNCs doing business within China. This has allowed for China to build her infrastructure but it cannot last forever. When China’s purchasing power parity (PPP) catches up and surpasses the United States, many foreign MNCs will leave China in order to do manufacturing in other countries. If they do not then this will lead to ultra-inflation which wipes out people’s savings. This has forced China to tread lightly in decision making for future business endeavors and forced China’s hands to go towards more nationalized companies and putting more restrictions on future MNCs planning to move into China. 
China has a poor human rights record when it comes to dealing with three countries in particular: Tibet, Sudan, and Taiwan. This has caused for closed, state-run media. China has often times prevented foreign media from entering disputed areas. China also controls what is told to the Chinese population further intensifying the ultra-nationalism brewing within China’s borders. This has the potential to create a volatile situation which can easily get out of control. 
Also, there is the issue of an aging population. China has a graying population which will soon be unable to work. Due to a policy of having only one child, as well as the emphasis of having male children, there is a huge discrepancy in the young population between men and women children. By the time this young generation reaches working age, some social scientists have estimated that by the year 2030 there will be 120 boys to every 100 girls. This, they argue, will lead to a graying population. (Kurlantzick, 2007) 
Finally, there are China’s future plans. Knowing that they are a superpower in the making, China is building up and modernizing their military capability, with plans to be able to compete with the United States militarily by the middle of the 21st Century. Many social scientists believe China will use Taiwan as the jumping point for a conflict with the United States. According to Paul Kennedy, every time there has been one Super Power and the second is competing for the top spot, there has been a conflict. The only exception to this premise was when the United States surpasses Britain for global supremacy. The difference was that Britain and the United States share similar values and culture. This is not the case with China. The West and China have a completely separate culture and value system. 
  
Methods of Research 
I initially started my research into Chinese foreign policy by reading China: Fragile Superpower by Susan L. Shirk. In reading her book I saw many factors which I felt were important factors in Chinese decision making process. I wrote down these important factors and concentrated on them for further research. I looked up journals, articles, and other current media in order to get further knowledge into Chinese foreign policy. I also spent time in the library but felt disappointed due to the dated books in the library. I did however come across information dealing with Chinese foreign policy in books I was reading for other classes such as Hoodwinked and The Secret History of the American Empire by self-proclaimed former economic hit man John Perkins. I analyzed the information that I found and looked for patterns as well as changes in behaviors. I also wanted to see the factors which determined decision making. 
A Brief Background on China 
China is an ancient society that off and on for 2,000 years was the largest economy in the world. The Chinese have always been very ethnocentric believing China to be the center of the Universe. They believe that their traditional leadership was divinely descended from the Yellow Emperor giving China the supreme right to rule over everyone else. According to Anthropologist Gavan Menzies in the year 1421 China owned the world’s largest navy. He claims that they had reached North America that year and recent archaeological evidence suggests that they not only discovered North America; but also had Chinese had also colonized on the newfound continent. (Menzies, 2002) 
It was not until the 19th Century when first Britain and then the United States usurped China as the world’s largest economy. Also China lost land in border disputes, so the Chinese population view the years from 1842-1949 as the century of shame. This is a time when China had lost the opium wars to Britain and had fallen prey to the imperialism of Britain, forever making China wary of the West. This resulted in the Chinese people having increased nationalism based on humiliation and national pride. (Ripley, 2002) 
In 1949, there was a cultural revolution in China. Mao Zedong took over the control of China and ushered in a one-party Communist system. Mao’s first policy was to secure its border and maintain relations with the also Communist Soviet Union. Shortly after this, the Korean War started between Communist North Korea and the United States which eventually drew China into the conflict, this necessitated the need at that time for China to grow stronger relations with the Soviet Union. (Ripley, 2002) 
During the 1950s, relations with the Soviet Union and China grew increasingly hostile, with border disputes and other skirmishes. Also, the Soviet Union started offering financial support and security to India, who has traditionally had conflicts with China over border disputes. This was the straw that broke the camel’s back and necessitated the need for China to open its borders with foreign, namely western investors. This was also the beginning of Chinese-American relations which started during the 1970s. (Ripley, 2002) 
Next came the open-door policy of Deng’s China in the 1980s. His ultimate goal was the modernization of China as well as making China a major player in regional and world politics. Deng’s watchwords were peace and prosperity. His plan was to achieve this goal through the four modernization watchwords: industry, agriculture, science, and defense. Military modernization was the least important of these four watchwords as China focused more on developing their nation domestically. (Ripley, 2002) 
In June 1989 there was an event that forever changed the course of Chinese culture, this was the Tiananmen Square massacre. This happened when students and then other dissidents gathered in Tiananmen Square to rally for democratization of Chinese society, with the Goddess of Democracy as their mascot. The Goddess of Democracy was very similar to the American Statue of Liberty, which is a symbol of freedom throughout the world. This did not sit very well with the Chinese Communist regime, and Chinese soldiers went into Tiananmen Square to stop the protest. Violence erupted causing the death of hundreds of students. This led to the world looking at China vehemently concerning China’s human rights policies. Not only that, it also caused for the leadership within China to be wary of another Tiananmen Square incident and also leery of a massive uprising against the government. This has caused for the Chinese government to censor and control the media. Also the Tiananmen Square incident is prevented from being discussed in Chinese Academia and media. It is almost as if to the Chinese people the event never happened. (Shirk, 2007, 2008) 
When China changed her economy to a more open market economy during the 1970s, it allowed for her to grow economically at a very quick pace. Working with the international community has led to China becoming the second largest economy in the world, as well as the largest manufacturer of goods in the world. It has also allowed for China to be the biggest borrower from the World Bank and the IMF. The World Bank does not actually give loans but bank guarantees. This allows for institutions such as Chase Bank to match the bank guarantees with a loan. The IMF is a sister organization to the World Bank and is the actual loan giver. (Rockefeller, 2010) China also buys a lot of foreign currency and American bonds, and then gives loans to other nations from the profit made from the bonds. China has also been buying loans that the U.S. and the IMF have given to developing nations charging less interest and putting in fewer restrictions, making China a direct competitor with the U.S. in helping nations develop. (Perkins, Hoodwinked, 2009) (Perkins, The Secret History of the American Empire, 2008) 
China’s Stated Foreign Policy Objectives 
Out of the 10 stated objectives of Chinese Foreign Policy, maintaining independence and sovereignty seem to be the main objective. After being colonized by Britain and losing land and wealth to both Japan and India, this makes sense. This can be seen when Liu Huaqiu states that, “The basic goals of the policy, which features independence and peace, is to firmly safeguard the nation’s independence, security and sovereignty, and adopt a positive attitude toward safeguarding world peace, in a bid to create a long-term peaceful international environment for China’s socialist modernization drive.” (Huaqiu, 1996) 
Huaqiu goes on to say that, “The main content and basic principles of the policy includes: safeguarding independence; opposing hegemonism and safeguarding world peace; developing good-neighborly relations; strengthening unity and cooperation amongst third world nations; establishing and developing friendly cooperative ties with all nations on the basis of the Five Principles of Peaceful Coexistence; maintaining a positive attitude toward international cooperation; making energetic efforts to promote the establishment of a new international order; opposing arms race and promoting the disarmament process; practicing comprehensive opening to the outside world; and actively enhancing the friendly people-to-people contacts throughout the world.” (Huaqiu, 1996) 
Fu Chengyu, the chairman of the CNOOC says that, “China’s goal is not to overturn the world order but instead to participate in this world order, and to reinforce it and to even profit from it.” (Shirk, 2007, 2008) There is a Chinese slogan on a billboard that reads, “China needs the world, and the world needs China.” (Shirk, 2007, 2008) 

Internal Factors 
It seems as if China’s internal and external policies are so intertwined that it is oftentimes difficult to differentiate between them. So when looking at the internal politics which help to shape foreign policy decisions, I will only discuss the internal politics with minimal outside influence. 
The population has a chance to be influenced by the international community, namely the West, by such media outlets as news, radio, music, television, and internet. China initially allowed Google to do business in China if they allowed for censorship. This was to prevent the general population to get any ideas which could incite civil unrest; the Chinese are fearful of a nationwide Tiananmen Square. A population of 1.3 billion is hard to control; so the government tells the people that Communism is necessary to govern a population of that size. (Shirk, 2007, 2008) 
This has led to a change in the way politicians approach problems. They take a slow and easy approach. They are no longer the radicals willing to kill off vast amounts of potential rivals such as what Miao was famous for. Instead with this slow and easy approach, they can make sure that they get the approval of the Communist Party. There is only one party, but quite often these groups are at odds with each other. Despite the Communists party insistence on teaching the Century of Shame rhetoric in the grammar schools, the young generation is increasingly calling for a Democratic government. There are Communist members who have acknowledged that nothing lasts forever, including Communist rule in China. (Shirk, 2007, 2008) It is however, human nature to try and to hold on to power once you have it. 
Another major factor which has to do with a large population is feeding the population; not only feeding them, but providing jobs, and the necessary infrastructure necessary for a society to be considered fully functional and modernized. These necessities include hospitals, schools, freeways, work facilities, and many other structures. This requires capital which necessitated the need for China to open their doors to foreign investors as well as MNCs. So in a very short time China went from an agrarian, Communist society which was failing miserably to becoming a rapidly modernized society in many parts of the country. China is now based on a market economy. This has opened doors for China to join the World Bank and the IMF. (Shirk, 2007, 2008) 
It is estimated that by the year 2030, there will be a graying population. Some social scientists say that a majority of the population will be above working age, and due to the restrictions on families being able to only have one child, it will make it difficult for China to take care of their elderly population. Another problem also is that due to the preference for male children, there are now 120 boys for every 100 girl children. When this population reaches adulthood it has the potential to create an aggressive population. It is estimated that 30 million boys will not be able to find wives. (Kurlantzick, 2007) 
One more internal factor is that of corruption, mostly in the local governments. The local leaders quite often accept bribes. They also overlook regulations placed by the federal government on environmental issues. The federal government might fund a certain project or require a certain technology which is environmentally safer; but the local governments will ignore these requirements. (Shirk, 2007, 2008) 
External Factors 
When a country sits as a permanent member of the UN Security Council such as China, and also has business relationships with both the World Bank and the IMF, a lot is expected of them. China is no exception and is not immune to public scrutiny, even though they try to handle domestic problems domestically as well as controlling the media. This can be seen with the many protests against China when the 2008 Olympics were approaching. Not only was China questioned about its human rights record, China was also scolded about its treatment of the environment. China was on a mission to build its economy with almost no regard for the environment. (Shirk, 2007, 2008) This has caused China to have run-ins with the EU over environmental issues. However, the younger generation believes that it is their duty to fix the environment in order to make it better for future generations. (Perkins, Hoodwinked, 2009) China has already started to give tax breaks for people using electric cars and is building more and more nuclear power plants. (Perkins, Hoodwinked, 2009) 
China shares a 3,500 mile border with Russia; this has often resulted in cross border skirmishes resulting in deaths on both sides. This was more so the case when Russia was the Soviet Union. The Soviets looked at China as the dysfunctional little brother and wanted to take China’s resources. (Ripley, 2002) China also has border disputes with Vietnam and India. India has actually taken some of China’s land in the past. The disputed Kashmir region has China vying against India and Pakistan over the sovereign control of this disputed region.
China wants to maintain good relationship with the United States, because it is the relationship with the United States that has allowed the Chinese economy to grow strong. China understands that relationship needs to be maintained in order to continue growing economically even though China is trying to foster trade with neighboring countries. It might seem as if there is a huge trade deficit, but people must remember that a majority of manufacturers in China are either Japanese or American owned. They are privatized companies from MNCs. It is only recently that China has tried to put in restriction on new MNCs wanting to enter China doing business. A very small amount of the profits goes into Chinese pockets, but instead adds to the profit margin of the MNCs. (Shirk, 2007, 2008) China has been manipulating its currency in order to be able to continue producing goods at a cheap cost, but this cannot continue. Its PPP is supposed to surpass that of the United States by 2050 and when it does, MNCs will take their business and move it elsewhere. This in the long run will affect China and will allow for other developing nations to take up the slack. (Shirk, 2007, 2008) (Rockefeller, 2010) 
In an ever evolving economy where more resources are needed in order to sustain economic development, China has built relationships with rogue nations in order to get the resources that China needs. This involves relationships with Iran and the Sudan. China believes that this is necessitated because they were a late bloomer when it came to economic development and by the time that they started building their economy; the countries that have the resources they need are already selling resources to developed countries. So the Chinese rationalize working with rogue nations in order to maintain their interests which include growing the economy. (Shirk, 2007, 2008) This has allowed for them to get bog contracts for building the infrastructure in Iran as well as many parts of Africa. China is also supporting Iran in its nuclear power ambitions. The most controversial business partner whom China works with is the Sudan. 
China and the Sudan 
Of all the rogue nations in which China is currently working with, the situation in the Darfur area of the Sudan causes me the most concern. There is a current civil war raging within the Sudan resulting in genocide against the ethnic black-African group of the Sudan. This has resulted in the death of up to 2 million Sudanese as well as the displacement of 4 million more Sudanese. (Goodman, 2004) Peter Goodman, contributor for the Washington Post writes that, “In the case of Sudan, Africa's largest country, China is in a lucrative partnership that delivers billions of dollars in investment, oil revenue and weapons -- as well as diplomatic protection -- to a government accused by the United States of genocide in Darfur and cited by human rights groups for systematically massacring civilians and chasing them off ancestral lands to clear oil-producing areas.” (Goodman, 2004) China has even built three weapons manufacturing planst near Khartoum. 
This has resulted in China investing heavily into Sudanese oil production. Goodman further says that, “China National Petroleum Corp. owns 40 percent -- the largest single share -- of the Greater Nile Petroleum Operating Co., a consortium that dominates Sudan's oil fields.” (Goodman, 2004) China has also laid down a thousand mile long pipeline going from the oil fields into the Red Sea where tankers are waiting to ship the oil to China’s mainland. (Goodman, 2004)This requires protection so the Chinese have armed the Sudanese government with advanced weaponry. 80% of the oil revenue from the Sudan goes into military spending. (Chang, 2008) 
China’s involvement with the Sudan is even more perplexing since the ICC issued an arrest warrant for Sudanese President al-Bashir. This causes grave concerns for other countries involved in the UN and it makes it seem as if China cannot be trusted to protect human rights of individuals in their own borders or in other countries. The fact that China is supporting a regime involved in genocide but yet is a permanent member of the UN Security Council calls into question the integrity of the Security Council. It is akin to have Jesse and Frank James sitting as board members of a bank. 
China and Tibet 
Shortly after Mao took power in China in 1949, he concentrated on occupying Tibet and invaded Tibet in 1950. Tibet was placed under China sovereignty in 1959 after the 17 Point Agreement treaty with Tibet was signed. 
This has caused a lot of animosity in Tibet resulting in many skirmishes between Tibet and China, and also led to the exile of the Tibetan spiritual leader, his holiness, the Dalai Lama. This culminated in the Tibetan revolution in 2008 causing the world’s population to morally rally behind Tibet. This year however, China has acknowledged for the first time however that they handled the situation in Tibet wrongly and that they have been unable to win over the hearts and minds of the Tibetan people. (Mazumdar, 2010) This is even after having spent 45.1 billion dollars since 2001 for the building of the Tibetan infrastructure. (Mazumdar, 2010) The Chinese realize the only way to win over the hearts and minds of the Tibetan people are for the Chinese government and the Dalai Lama to work together. (Mazumdar, 2010) This is a big and necessary step in order to obtain peace in Tibet and China seems to be seriously considering this. 
  
China and Taiwan 
Taiwan is also an area of concern dealing with China and the international community. When Mao took over China, a group of Chinese nationalists moved to Taiwan and established a government there. China believed that Taiwan was part of Chinese sovereign territory and so had no right to declare independence and establish its own government. President Jimmy Carter acknowledged China’s right to rule Taiwan during his presidency, this was in order to improve relations with China and to allow China to work more economically with the international community. 
In 1996, President Bill Clinton allowed the president of Taiwan to visit the United States, which enflamed the Chinese government. China then sent naval ships into the area around Taiwan which in turn almost started a war between the U.S. and China. (Shirk, 2007, 2008) Susan Shirk believes that China will use Taiwan as an excuse in order to start a conflict between the U.S. and China, also for China to have a conflict with Japan. (Shirk, 2007, 2008) 
There seems to be improving relations between China and Taiwan however. Due to Taiwanese businessmen investing in businesses within mainland China, as well as increasing tourism between the two countries, China and Taiwan just announces that China would allow Taiwan to have an official government office within the mainland. This is due to the doubling of Chinese tourism into Taiwan over the first three months of this year in comparison to last year. (France-Presse, 2010) This also seems like a step in the right direction for China and shows their willingness to improve relations and maintain peaceful relations. 
  
Conclusion 
China is a very important country to understand in terms of its position in world politics and its potential status as a world superpower. Being a citizen of the world’s most powerful country, I understand the tension and fear that fellow Americans have towards China. Nobody wants to lose their premier position on top of the power pyramid. With that said, I think that Americans need to better understand China and their policies in order to alleviate some of these fears. I also think that China needs to try and understand the West more and what causes fear within Western civilians. 
In doing this research I have realized that China is not some sleeping giant waiting to come forward and colonize the rest of the world. China simply wants their part of the pie, and to prevent one country from dominating all world politics. China would rather see a multi-polar world. Every country which is powerful or is becoming powerful has all faced the same challenges that China now faces. China is a major power, there is no denying this, Americans are just going to have to get used to this fact. 
By continual cooperation with the international community, as well as respecting the international community’s wishes, China can help steer the international community to help it increase peace and prosperity. A country with such a large population who turned its economy on the dime has a lot that it can teach to the world. Through actions and example, China can be a major force in the world that can help with the betterment of the world. 
In order to do this however, China needs to change its policy in the Sudan. China should put pressure on the Sudanese government to stop the genocide and treat the various populations within the Sudan as equals. This would show China’s commitment to human rights. Anyone investing in a country as much as China is with Sudan can help shape another nation’s policies. It is true when China said that China needs the world and the world needs China. 

 
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Wealth is the fertilizer of good deeds.