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Xi Jinping’s future China

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[yt_dropcap type=”square” font=”” size=”14″ color=”#000″ background=”#fff” ] T [/yt_dropcap]he fifth session of the National People’s Congress and the Fifth Session of the 12th National Committee of the Chinese People’s Political Consultative Conference are two epochal moments in the evolution of “Xi Jinping’s policy line” and China’ great transformation from great economic locomotive of the world into a multi-faceted and global power.

While, in the past, the People’s Republic of China could be considered an “Asian tiger” which, unlike the other smaller ones, had recorded large and stable economic development, currently – under Xi Jinping’s leadership – time has come to turn mere steady economic development into clear and firm international power living up to China’s new strategic role, namely being a major and fully-fledged world power.

The “tigers” which had led to the Asian booming economies had been undermined by the manoeuvres they did on the dollar. China saved itself also because it did not dollarized itself, but rather bought US public debt securities, thus becoming a “silent partner” of its main competitor.

Hence the support for globalization expressed by Xi Jinping at the recent Davos Conference.

Xi Jinping’s China does not want to reduce the globalization rate, because only the world market, as a whole, can sustain its harmonious development, without producing internal inflationary imbalances or productive crises. In the traditional Marxist thinking, the overproduction crises that Xi Jinping fears are typical of real capitalistic crises.

Those who win the Darwinian struggle between nations and strengthen their economies tend to spread their success and, hence, eliminate possible competitors.

Conversely, those who lose always want the closure of their markets, as well as protectionism and control of world economic flows.

It was also the idea of Adam Smith in his “The Wealth of Nations”, the book which is at the core of modern political economy.

Furthermore, in 1776 – namely the year of the American Revolution – Smith’s England wanted free-trade and liberalism in distant markets, but it kept its market tightly closed. Those who win are liberal (for the others), while those who lose the world economy game only want to avoid greater damage, thus becoming even more protectionist.

Therefore Xi Jinping’s China will conquer a large share of world economy, thus becoming leader of the unavoidable future globalization and outsourcing some of its assets, as well as replacing the old Western powers, which are no longer able to guide and direct economic, financial and cultural globalization.

Efficiency and representation do not often go hand in hand: the West is in the grip of “vested interests” which – through Parliamentary legitimate representation – distort and block economic, productive, financial and cultural reforms.

Thanks to its political structure, China can avoid these Western constraints and reach Xi Jinping’s goals quickly and effectively.

Incidentally, the People’s National Assembly (or Congress) is the highest State institution and the sole legislative body of the People’s Republic of China.

Unlike other Western representative institutions and structures, the current organization of Chinese representation is highly functional, considering that it provides for one single legislative House (namely the Assembly) which institutionally supervises the Presidency, the Council of State, the Supreme Court, the Army and the eight non-Communist smaller parties which, however, have pledged allegiance to the Republic founded by Mao Zedong.

In one single annual meeting, always held in March, the Congress ratifies the decisions often already taken by the Party bodies and basically discusses the “policy line” of legislation and, hence, of China’s future policy.

The Political Consultative Conference, too, is a body of the Chinese State and represents the various political parties present in the People’s Republic of China, which have accepted the direction and leadership of the Nation by the Communist Party.

It is an institution also made up of members from other non-directly political associations and includes members of political parties and many associations from Hong Kong, Macao and Taiwan.

The Conference also includes major personalities, independent from the various parties.

Later the Communist Party of China (CPC) will elect a new Party’s leadership during its National Congress scheduled early next year.

Therefore this is the phase in which Xi Jinping is definitely strengthening his power over the Party and hence his specific policy line. Five of the seven members of the Politburo Internal Committee shall leave office at the beginning of 2018, and only Xi Jinping and Prime Minister Li Kekiang will remain in office.

Some outgoing members of the Politburo Standing Committee will be likely investigated on corruption charges.

Also the Armed Forces will change radically when the Communist Party of China is fully in Xi Jinping’s hands.

The four general headquarters of China’s Armed Forces have already been cut down to size and merged into the Central Military Commission.

The second military reform implemented by Xi Jinping – of which we will soon see the results – is designed to place the four Armed Forces on an equal footing, by putting an end to the primary role played by Ground Forces.

Obviously, today China is no longer a regional power that must be defended mainly from ground invasions – which are the most geopolitically likely invasions – but a global and globalist power that must protect its new status with a large Air Force and a strong “blue-water Navy”, as experts call it.

Hence separate Commands also for the ground forces that previously led the whole Chinese military structure.

Basically, Xi Jinping wants to cut the Armed Forces down to size (300,000 soldiers and officers have been dismissed), but he wants them to be always “combat ready”, namely capable of combined operations and, above all, suitable for operating outside the traditional Chinese scenarios.

Furthermore, Xi Jinping knows the structural weaknesses still threatening China’s development: corruption, which has taken huge liquidity away from China’s productive economy, through one million officials investigated to date on severe corruption charges; technological innovation so as to avoid China remaining the old “world factory”, as the dollarized “tigers”, but excluded from the new production trends; finally agriculture and, above all, the stable growth of people’s wellbeing.

China runs the risk of experiencing the “middle income trap”, as economists call it, namely that development stops when everyone has reached a satisfactory income.

It happened to most Eastern developed economies. After the “middle income trap”, another trap inevitably comes, namely the “poverty trap”, as in current Latin American economies.

In Xi Jiping’s mind, this project includes the State reform, streamlining and simplification, which go hand in hand with China’s full entry into the group of economies recording the highest rate of innovative technologies, which – in many respects – is the economic face of the State political reform that Xi Jinping has undertaken.

This project also includes a financial market with private equity and the other forms of cash and private debt management; the increase in competition between companies; a skilled workforce capable of moving between different technologies and factories; the readjustment of the hukou traditional agricultural welfare; finally, the entry of traditional rural overpopulation into the urban labour force.

As Mao Zedong accelerated China’s development, often with mixed results, Xi Jinping wants the “Fifth Modernization”, the modernization not written by Deng Xiaoping but the most important one – namely the State Modernization, which will inevitably drive the modernization of civil society and the economy.

The relationship between rural and urban areas is the issue which is at the core of Mao Zedong’s thought and the best Marxism – the issue that General Marshall took into due account in his famous Harvard speech in which he outlined the “Marshall Plan” for Europe in the aftermath of the Second World War.

If Xi Jinping succeeds in reducing corruption – and so far he has managed to do so – but particularly in reforming the State to eliminate the old protectionist privileges and near monopolies of the centralized economy, China will not fall into the “middle income trap” and will still have huge development opportunities that Xi Jinping will focus on the technological innovation of products and processes.

As often happened in the history of Socialism, if the State preserves large pockets of unproductive income, inefficiency and unnecessary costs – all problems that we Italians know all too well – Xi Jinping’s fight, which is the only one currently possible in China, will take too long to be won.

Nevertheless the current rationale of the Chinese leadership – that will also deal with pollution (which is a serious obstacle to globalization, not its natural by-product), as well as with manageable and livable cities on a human scale, with the coordination, wanted by Xi Jinping, between Beijing, Tianjin and Hebei for investment in infrastructure – is still the traditional, Confucian and Taoist one.

Everything is based on the link between “Minyi”, namely public opinion, and “Minxin”, namely people’s hearts and minds.

Xi Jinping is undoubtedly a global leader beloved by the Chinese people, but certainly the impact of the old apparata, privileges and near monopolies will still be felt.

Advisory Board Co-chair Honoris Causa Professor Giancarlo Elia Valori is an eminent Italian economist and businessman. He holds prestigious academic distinctions and national orders. Mr. Valori has lectured on international affairs and economics at the world’s leading universities such as Peking University, the Hebrew University of Jerusalem and the Yeshiva University in New York. He currently chairs “International World Group”, he is also the honorary president of Huawei Italy, economic adviser to the Chinese giant HNA Group. In 1992 he was appointed Officier de la Légion d’Honneur de la République Francaise, with this motivation: “A man who can see across borders to understand the world” and in 2002 he received the title “Honorable” of the Académie des Sciences de l’Institut de France. “

East Asia

U.S.- China Strategic Competition in The East Asia

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East Asia has been the most dynamic region where development has been internationally recognized. The regional politics of the region has developed a paradox that has flamed up the economic environment of the region. The trends have shown the increased intensifying security issues along with the strategic completion that has spread the security and economic tensions across the East Asian Region. In a global circle, China is known as the revisionist state. The historical manners suggest the reclaim of East Asia by the Chinese. This claim has intensified the relations between the US and China in East Asian Region.  The main challenge for China is to shift the US intervention from the East Asian region for the balanced equation at the strategic level. This might provoke the US and its allies in East Asia such as Japan that will help the US to jeopardize the Chinese rule from the region. The challenge for the US and its allies in the East Asian Region is more complicated because of the economic stability of China at the International Level. This might be a proxy war for both the superpowers in the East Asian region where the conflict may rise compromising the strategic stability of the region. The strategic location of the US lies in the actual form of ability and project power over great sustainable intervals. The strategic behavior increases the policies and shapes the allies.

One prevalent belief in the United States about China’s long-term policy goals in Asia is that Beijing aspires to be the regional hegemon and wants to restore a Sino-centric order in the region.

First, Beijing favors unipolar ties at both the global and regional levels and believes that with ongoing economic growth, this trend will continue intra-regional political consultation in Asia, influence on regional affairs is going to be more diversified and more evenly distributed. Secondly, although China expects some relative increase in its influence in Asia, it understands that thanks to the boundaries of its hard power and particularly its soft power, China can never achieve a grip cherish its role within the ancient past or to the U.S. role within the region at the present.

Beijing’s perspective:

From Beijing’s perspective, the US is an East Asia power, although not an Asian power, and its political, economic, and security interests within the region are deep-rooted, as are its commitments to regional stability and prosperity. Beijing has always welcomed a constructive U.S. role in regional affairs. At the identical time, however, Beijing also feels uneasy with certain aspects of U.S. policy. As a superpower, The US has been too dominant and intrusive in managing regional affairs. It fails to pay due regard to the voices of other regional players and sometimes gets too involved within the internal affairs of other states, lacking an understanding of their culture, history, and values.

The US and European aspects towards the South China Sea and East Asia should involve long-term perspectives of engaging ASEAN states. Such impacts will create room for the US to tackle China in the East Asian region. The development of any comprehensive strategic security policy is the need of the hour that assures one’s interest in the region. Both the states perceive a threat from each other and try to further advance their capabilities for the sake of safety and security. The US is not in a position to deal with the other power far away from its homeland, sustaining its military and protecting allies. Aggressive behavior in strategic competition can lead to unwanted results. The US would have to accept the strategic realities of China to normalize the relations. China on the other hand should rethink its policies in East Asia and Indo Pacific. However, as yet, deterrence has played its part by keeping states from a large-scale action. States running in the race of acquiring arms conventionally due to uprising strategic competitions are worsening any likely condition of conflict.

Key points for US:

In terms of identifying specific actions for a U.S. strategy for competing strategically with China in East Asia, a key element would be to possess a transparent understanding of which actions are intended to support which U.S. goals, and to take care of an alignment of actions with policy goals. Cost-imposing actions are actions intended to impose political/reputational, institutional, economic, or other costs on China for conducting certain activities within the East Asian Region, with the aim of persuading China to prevent or reverse those activities. Such cost-imposing actions need not be limited to the East Asian Region only. 

Conclusion:

The development of any comprehensive strategic security policy is the need of the hour that should involve joint military maritime exercises. The US and China have set their limits in coordinating military to military joint cooperation due to their desired interests and competition. Both the states perceive a threat from each other and try to further advance their capabilities for the sake of safety and security.  

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East Asia

Summit for Democracy Attempts to Turn Multicolor Modern World into Black and White Divisions

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One of the most important takeaways from the recent sixth plenary session of 19th CPC Central Committee is that Beijing flatly rejects Westernization as the path to modernize the Chinese society and the national economy. Instead, as it was underscored in the plenary Communiqué, the country will continue to stick to “socialism with Chinese characteristics in the new era.” The leadership will preserve and further develop the system that served the people so well over last more than 70 years.

This statement did not come as a surprise to numerous China watchers all over the world. In fact, the critical choice between socialism and Western-type liberalism was not made in November of 2021, but decades ago.

One can argue that the outcomes of the sixth plenary session are yet another manifestation of a more general global trend: The world has been and will continue to be very diverse in terms of political systems, social models and economic patterns of individual nation states. Moreover, the odds are that this diversity will increase further literally in front of our eyes. Instead of the “end of history,” we will observe more intense multifaceted competition between different types of social development.

One way to react to this emerging reality is to accept it as a positive trend that enhances the overall stability of the global social system. The more diverse and complex the system is, the more resistant it is to various shocks and disturbances. To make a rough analogy with biology, a natural forest, which is a very diverse and complex ecosystem, is much more resistant to whims of the weather and natural disasters than a man-cultivated monocultural field. Accepting the trend, we should focus on how to manage competition within the increasingly diverse and complex world so that this competition will ultimately benefit all of us.

The other way to deal with this reality would be to start fighting against social, political and economic diversity by trying to advance one single model over all others. This is exactly what the Joe Biden administration is committed to doing by launching an ideological crusade against China, Russia and other nations that dare to deviate from the fundamentals of the Western development model. To make its case, the White House has announced a virtual Summit for Democracy to be hosted by the US on December 9–10 with the goal “to renew democracy at home and confront autocracies abroad.”

This vision reduces the multi-color palette of the modern world to a minimalist black and white graphics of a global fight between “democracies” and “autocracies.” It divides the international system into “us” and “them,” into “good” and “bad,” into “legitimate” and “illegitimate.” Such a reductionist system, if constructed, cannot be stable and shock-resistant by definition: Any major international crisis or a regional conflict could spark high risks of implosion.

It goes without saying that the nations of the world should firmly oppose corruption, abuses of power by state authorities and gross violations of human rights. If the goal of the Summit for Democracy were to confront these evils on a global scale, there would be no need to make the event exclusive by inviting mostly US friends and allies. If the goal is to advertise the US political, social and economic model, Washington should probably delay the summit and put its house in order first. If the goal is to isolate Beijing and Moscow in the world of politics, this is not likely to work well for the US.

Nations of the world have a right and even a duty to experiment with their political and social development paths. This experimenting contributes to the overall social experience of the humankind. Only history is in a position to judge what models turn out to be efficient, productive and fair and what models will find their place at the dump of human delusions. And history has a lot of means at its disposal to punish leaders, who believe that they possess a “one size fits all” model, which could successfully replace the existing diversity with an imposed universalism.

From our partner RIAC

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East Asia

The Chinese diplomatic force in the IAEA to confront Western leadership

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At the level of international relations, through China’s presence in all the relevant international organizations, and its membership in all of the United Nations organizations, specifically in the International Atomic Energy Agency “IAEA”, China aims to play the role of the (international balancer),  in light of its quest to maintain a certain level of competition with the United States of America politically and economically, this is in line with its desires to constantly play the role of the pole calling for (multipolarity and multilateral international pluralism through the Chinese political speeches of Chinese President “Xi Jinping”), in order to oppose American hegemony over the world and Washington’s policies to maintain its position as a single pole in the international community. China’s increase in its foreign investments, in order to enhance its economic hegemony over the world through its political and diplomatic tools with countries that have equal economic power with it in a number of (trade, scientific and technological issues, in addition to military and intelligence tools, as a reference for China’s new foreign political center).

  We note that the patterns of Chinese foreign policy is (the pattern of dependence, which is based on the high level of foreign participation in all current global issues), to restrict the attempts of the United States of America to pass its decisions internationally, and therefore China is trying to enter the membership of all international organizations so that China’s foreign policies remain more comprehensive, broader and more effective in the global change, and to change all directions of these issues and control them in the United States, and this is one of its new political tools that serve its global expansion through the (Chinese Belt and Road Initiative).

   In the same context, China focuses its external and competitive strength on its presence in effective international organizations, and rapprochement with the European Union, especially (France, Germany), despite not denying their relations with Washington, because of their strong influence in the global economy.  In addition to China’s reliance on the plan of foreign and foreign investments in countries that influence American influence through the Belt and Road projects, as well as China’s resort to the import policy of many resources necessary to develop its economic capabilities from certain European countries to open influential relations with them, leading to (the Chinese strategy to obtain  political support through the policies of alliances, consulates, representations, and its membership of international organizations), with the aim of influencing countries’ policies economically to pass important international decisions regarding the US challenge to China, such as: (the Iranian nuclear file, North Korea, Myanmar, Afghanistan, Syria, Venezuela, etc.), to increase with this  The level of external penetration of China economically and politically).

    China is mainly aiming to increase its membership in international organizations and the International Atomic Energy Agency, to (create a new balance of power and get rid of unipolarity restrictions through the medium powers and small states that the international system prevails with real pluralism, instead of the current state of American unipolarity).

   In my personal opinion, the countries of the Middle East may find in the rise of China and Russia, and perhaps other international powers to re-compete the United States,  as a (real opportunity to advance the effects of the pluralism of the international system at the regional level, and this would create more space for movement and opposition or bargaining and flexibility of movement for all to confront the policies of American hegemony, according to Chinese planning with Russia), and this also works to alleviate those restrictions and American dictates, and perhaps the sanctions and pressures it imposes on opponents of its approach internationally.

  The strategy of competition between China and the United States has become China’s long-term strategy, which is based on (the necessity of a heavy Chinese presence in all international organizations and forums, which allows China to communicate with various global powers and balance its relations with them compared to Washington), as well as diversifying the People’s Republic of China for its relations and distribution of its power among the competing countries, which allows China to show wide options on all important issues, and the most dangerous is that this Chinese presence, which (allows Beijing to prejudice the foundations of its relationship with the United States of America and the other various powers around the world).

  China and Russia also aim to form an alliance into all international and regional organizations to change the current provocative approach of the American policies in their confrontation, especially those related to mobilization policies and American alliances against them around the world. The Chinese alliance with Russia was so clear with the (Russian Foreign Minister “Sergey Lavrov’s visit” to Saudi Arabia, the UAE and Qatar, while on the other hand, both Kuwait and Qatar have received a member of the Political Bureau of the CPC Central Committee and Director of the Office of the Foreign Affairs Committee of the CPC Central Committee “Yang Jiechi”).

    On the other hand, China is among the Security Council countries that have the largest number of (Chinese peacekeeping forces around the world), and China is at the forefront of the (most contributing countries to the international peacekeeping budget, in addition to sending naval fleets to carry out maritime guard missions according to according to the UN Security Council resolutions), and therefore China may play an important role in establishing security in many countries in the world, and this is perhaps what China plans to ensure its use, in the event of a decline in American interest in the security of many regions in the world, within the framework of (the strategy of pressure of the American expenditures, retreat and withdrawal from many places around the world and devote its concern to the American interior issues and its worsening economic crises).

  The point is worthy to be considered here, is the report issued in July 2021 by the (International Atomic Energy Agency), entitled “Nuclear reactors around the world”, in which he analyzed China’s plan to (establish the dream of nuclear sovereignty around the world by starting to build and establish about 11 reactors). There are other Chinese nuclear reactors under construction, as well as the (new Chinese planning to build other 29 nuclear reactors), while the International Atomic Energy Agency’s work report on the other hand indicated that the known total number of reactors that are actually in service, other than those planned for construction, and other reactors under construction, is up to  About 50 Chinese nuclear reactors, a step that confirms that “China is clearly shifting towards nuclear energy in the production of electricity, and depends on it directly in its industrial renaissance during the coming period, especially as it is the number one country in the world that is expanding in the establishment of nuclear plants, followed by Russia, which plans to build other 20 new nuclear reactors, while it has 38 nuclear reactors in active service”. Some leaks indicate the presence of Chinese nuclear reactors, exercises and tests in the “Doklam Desert” region on the borders of “Xinjiang” province in northwest China.

   It also notes that, from the reality of the report issued by the International Atomic Energy Agency “IAEA”, its confirmation regarding (Chinese planning to become the first country in the world in the production of nuclear energy during the next ten years, in return for the decline in the share of the United States of America in nuclear reactors, which continues to the continuous decrease with the exit of new American numbers of reactors annually), as the future plan of the United States of America does not include the establishment of new reactors, which indicates that (the expansion of this type of energy tends towards China and Russia during the coming period, and these countries will have accumulated experiences, enabling them to dominate and control this new nuclear industry in various countries of the world, and this is what is actually common happening in the region).  Knowing that its uses will be mainly peaceful and to serve the interests of peoples and countries, so we may witness the coming period intensifying the role of the International Atomic Energy Agency in many files around the world to study them, inspect different regions and various other areas to ensure (their peaceful uses of nuclear energy in many development projects around the world).

   Hence, we almost understand (the importance of the Chinese presence and presence and its membership in the International Atomic Energy Agency in the first place), given that it actually owns 50 nuclear reactors in service, and its contribution to the production of electricity and providing energy to one and a half billion citizens, and China also has new nuclear reactors under construction, so (China seeks to be near the International Atomic Energy Agency, to embarrass, restrict and limit the American influence on the one hand against Beijing’s allies, led by Iran and then North Korea. Therefore, China has developed a strategic plan in the coming years, which is based on the intensity of the Chinese international presence and passing its foreign policies and decisions with the help of its Russian ally internationally).

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