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China's Evolving Diplomatic Strategies: From Concealment to Global Leadership

This analysis explores China's diplomatic evolution, tracing its strategies from the "hide the blade and accumulate strength" approach to embracing a proactive "advance with time" vision. Highlighting Yang Jiechi's 2008 emphasis on enhancing strategic trust and economic cooperation, the piece examines China's bilateral trade agreements, regional financial initiatives, and support for developing nations. It also addresses the tension between liberal reforms and protectionist policies in economic diplomacy, emphasizing China's role as a responsible global power in shaping the new international economic order.

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China's Evolving Diplomatic Strategies: From Concealment to Global Leadership

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Presentation Transcript

  1. Charm Offensive at Beijing’s Free Will? • Yang Jiang

  2. 1809

  3. Diplomatic Strategy • From: 韬光养晦 tao guang yang hui (hide the blade and accumulate strength) • To: 与时俱进 yu shi ju jin (advance with time) • ‘a responsible great power’

  4. connotation • Yang Jiechi March 2008: • to deepen strategic and political mutual trust between China and other countries, and to create a good environment and atmosphere for international economic cooperation; • to propel multilateral and bilateral free trade cooperation and resolve economic disputes through dialogue; • to support the realisation of important cooperation projects and to protect legal rights of overseas Chinese citizens and companies.

  5. instruments • bilateral trade agreements (FTA) • (regional) financial cooperation • outward investment • resource diplomacy • WTO • foreign aid

  6. FTAs

  7. FTA Policy: Liberals vs. Protectionists • Lack of imperative to enforce domestic reforms, in contrast to the WTO • Liberals: MOFCOM, exporters • Protectionist forces • Agriculture: ‘Three Agricultural Problems’ and MOA • Services and Investment: economic security, partial reform and monopoly profits • NDRC (National Development and Reform Commission) • Ethnic problems • National People’s Congress

  8. FTA policymaking: Politics and Economics • Ministry of Commerce (MOFCOM) • Ministry of Foreign Affairs: ‘big country morality’ of ‘giving more and taking less’? • The leadership • Bureaucratic capacity and coordination

  9. (regional) financial cooperation • From response to responsibility? • Asian Monetary Fund • Chiang Mai Initiative: surveillance? A supra-national body? • Exchange Rate Coordination... • constrained by the exchange rate policy, a closed capital account and weaknesses in the banking system

  10. IMF and World Bank • Call for increased voting power for developing countries, for Asia--G20 • International Reserve Currency - Special Drawing Rights: ‘testing the water’ • Experimenting internationalization of RMB • Issues: • conditionality - Beijing Consensus/China Model? • transparency • call for a new international economic order?

  11. outward investment • 2001 from restrictive to encouraging • 2004 more supportive measures • 2006 reflection on ‘neo-colonialism’ • 2008 from caution to aggression • now in the process of making a strategy...

  12. MFA CCP Chinese company foreign company SASAC NDRC MOFCOM banks SAFE Outward Investment • MFA: support, service, bridge • SASAC: the great butler; unclear • Dept. of Organization of the CCP: personnel • NDRC: the small State Council; proposals • MOFCOM: contracts • SAFE: supportive • banks: policy, commercial • SOEs: central, local

  13. Climate Diplomacy? • support for other developing countries: solar water heaters, bio-energy and nuclear? a green development fund? • COP15

  14. To be continued... • State-business relations? • A national strategy for economic diplomacy? • Political and economic interests? • China’s identity?

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