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Charm Offensive at Beijing’s Free Will?. Yang Jiang. 1809. 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’. connotation. Yang Jiechi March 2008:

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Charm offensive at beijing s free will
Charm Offensive at Beijing’s Free Will?

  • Yang Jiang



Diplomatic strategy
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’


Connotation
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.


Instruments
instruments

  • bilateral trade agreements (FTA)

  • (regional) financial cooperation

  • outward investment

    • resource diplomacy

  • WTO

  • foreign aid



Fta policy liberals vs protectionists
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


Fta policymaking politics and economics
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


Regional financial cooperation
(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


Imf and world bank
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?


Outward investment
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...


Outward investment1

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


Climate diplomacy
Climate Diplomacy?

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

  • COP15


To be continued
To be continued...

  • State-business relations?

  • A national strategy for economic diplomacy?

  • Political and economic interests?

  • China’s identity?


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