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The ambition of China and its democratization issue

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Historical events are always astonishingly similar. In the early Korean War, China ruled by the Chinese Communist Party(CCP) frequently publicly warned the U.S. not to go beyond the 38th  parallel north to invade North Korea or China would send troops into North Korea in reaction. The U.S. arrogantly turned a blind eye to these admonitions. The outcome was that shortly after the U.S. military invaded, China resolutely honored its promise, with tens of thousands of troops rushing into the country. In the end, the war culminated with no winner.

Now, the same situation occurs again and with the U.S.’s disregard of China’s aspiration for world hegemony and the result would be more severe by far if the kind of disregard didn’t stop.

A historical narrative of China’s ambition

As early as in the mid and late 50s and early 60s, founder and supreme leader of the People’s Republic of China (PRC) Mao Zedong constantly and openly suggested that China catch up with or outstrip the U.S. by 50 to 60, 20 to 30, or as-such years. To that end, he even launched the disastrous Great Leap Forward campaign to mushroom China’s agricultural and industrial productivity.

Mao’s successor, Deng Xiaoping, according to documents and records, never put up such direct proposals. But this doesn’t mean that he didn’t have analogous ideas or ambition. In 1987, Deng said that by the middle of the 21st century, China would be able to reach the economic levels of developed countries, but then lowered the target to levels of medium-developed countries. Deng also held firm to the principle that sovereignty is over human rights and time after time propounded setting up a new international political and economic order against hegemonism. However, it was his reform and opening-up policy that, until recently, brought China’s economy average annual double-digit growth for over 30 years.

Deng’s substitute, Jiang Zemin, in addition to reaffirming the new international political and economic order, first officially presented two other notions: Two Centenary Goals and The Revival of the Chinese Nation. In the face of these  perceptions, Jiang and leaders of five other nations first created a regional geopolitical international institution in China’s territory, the Shanghai Cooperation Organization (SCO), to safeguard the peace and stability of Central Asian regions and to fight cross-border crimes.

Jiang’s replacement, Hu Jintao, in large measure, just echoed Jiang and Deng’s same expressions, especially Jiang’s two thoughts. Yet, it was in Hu’s times that China began to eclipse Japan to become the world’s second largest economy. And it was in this time that China and four other nations, Russia, India, Brazil, and South Africa, formed the BRICS bloc, a new international economic body and potential rival to the Group of 7(G7). Concurrently, it was in Hu’s times that the idea of being on a level with the U.S. overtly came up again. Hu’s prime minister, Wen Jiabao, at a welcoming banquet hosted by then Secretary of State Colin Powell, said that China took 50 years to run as well as medium-developed countries, needing about 100 years to be on a par with the U.S.

Incumbent President Xi Jinping, Hu’s surrogate, seems to be both a partisan of all the apprehensions above and an unwavering practitioner of them. Since taking office as China’s president, not only has Xi proponed to build a new style of great power relationships with the U.S., but he has stressed the belief that Asia is Asians’ Asia and a new Asian security notion: that Asian affairs should be handled by Asian countries themselves. Moreover, to manifest his regnal signature, he has integrated Jiang’s two notions into one, namely his China dream to resurrect the Chinese nation. Specifically, he demanded that China be a medium-developed nation by the centenary of the establishment of the CCP in 1921 and realize the splendid resuscitation of the Chinese nation by the centenary of the foundation of the PRC in 1949.

To Xi, achieving the China dream or the great revival of the Chinese nation is in fact just an euphemism for being the world’s first power; soon after Xi took over as General Secretary of the CCP, the state-controlled prestigious Chinese Academy of Sciences (CAS) issued a report showing that by 2049, the centenary of the foundation of the PRC, China would completely outstrip the U.S. . The diversion is that the same institution published a dissimilar report back in Hu’s time and two years after Wen’s speech, saying that China would be ahead of developed nations by 2100 in economic modernization and then be the equivalent to the U.S. around in 2110 in this aspect.

To actualize this dream, Xi has constituted the National Security Commission, a counterpart to the U.S. National Security Council (NSC), to manage overall national security affairs. And by order of Xi, China has also single-handedly created the Silk Road Fund, a state-owned financial institution, to subsidize the construction of infrastructure in countries along the Silk Road and the 21 Century Maritime Silk Road (One Belt And One Road), two modern versions of a pair of trade passages in China’s ancient times, to again link China to Southeast Asia, South Asia, West Asia, North Africa, and Europe. More noteworthy, a regional international financial organization advanced by Xi to put up and be led by China, the Asian Infrastructure Investment Bank (AIIB), though still in the making, has drawn in more than 50 countries, even including many western nations, for instance, Britain, France, Germany, and Italy and so on. For the CCP’s China, this is indubitably an enormous victory, at least on the surface, and seems to have dwarfed in gambits another kindred institution in building by the BRICS nations, the New Development Bank (NDB).

At the same time, China under Xi is intensifying its territorial claims as well: In the East China Sea, to more effectively handle disputes with Japan over the Diaoyu islands, or the Senkaku islands, China has erected its own Air Defense Identification Zone (ADIZ) and has required that all aircraft furnish self-identification information and flight plans when flying across its ADIZ, a rule clearly against international aero-custom. In the South China Sea, besides placing oil rigs in Vietnam’s exclusive economic zone in 2014 sparking oil-rig crises, China has been reinforcing its construction and reclamation in contested waters, for instance, Gaven Reef, Johnson Reef, and the Fiery Cross Reef; and now all three reefs have become a sizeable man-made island, with the first having had an addition of a 114,000-square-meter land, the second, a submerged feature previously, having turned to a 100.000-square-meter island, and the third having enlarged to over 11 times its original size.

The U.S., as part of the Asia-Pacific region, has repeatedly called for a multilateral agreement on South China Sea issues and suggested that China work under such an agreement to solve territorial disputes that could further inflame tensions with countries in the sea, especially the Philippines and Vietnam. But such a proposal has bluntly been refused by China for the reason that the sea originally belongs to it or that what is within its nine-dash-line, including virtually the whole South China Sea, is just part of China’s territory. This is visibly a challenge to the current international political order built on international law as its AIIB and NDB have called into question the present international economic order founded on the International Monetary Fund (IMF), the World Bank, and the World Trade Organization (WTO).

Today’s China isn’t already China in the past: with an average annual double-figure economic growth for more than 30 years and a status as the world’s second largest economy or the world’s largest one according to IMF’s purchasing power parity calculation as well as an annual double-figure growth in military spending for the last decade and a place as the world’s second largest nation in military spending, China has come to believe that it has the capability to change the existing world order at its discretion or that at least it should be included as one of the makers of world order. For China, this is just a result of a long-term strategic pursuit of all the five-generation leaders of the CCP from Mao and also a vivid embodiment of the diplomatic strategy guidelines from Deng to develop yourself and bide your time.

U.S. integration policy on China

For the U.S., this is a gnawing moment: it has to face up to the fact that the rise of the China resulted from its own blunders or ignorance and overlook. Surely, in large part, there wouldn’t be the chance for China to burgeon and present-day China’s that aggressive and assertive behaviors without the U.S.’s integration policy. The kind of chance has been called“strategic window opportunity” in China, a strategic development luck in the tranquil circumstances.

It seems that while the U.S. has contrived integration policy with the aim of eventually converting China into a liberal democracy and a responsible stakeholder by inviting it to join the liberal international system orchestrated by the West and helping it to bolster the economy, it has underestimated the CCP’s stamina and resolve against liberalization and democratization and overlooked the catastrophic failure of the Tiananmen Democracy Movement.

As early as 1989, then leader of the CCP Deng accentuated more then once that China needed to adhere to the socialist path and proletarian dictatorship, steadfastly resisting capitalist liberalization. Shortly thereafter he attested by action in the year how serious his words were, with masses of troops being deployed there and hundreds of people being killed while the democratic remonstrance erupted in and around Tiananmen Square. Never has democratic protest or demonstration come to the nation since then with the continuous tight control of the Chinese government; even if data show that the nation’s mass incidents had risen from ten thousand in 1993 to about 0.14 million in 2011 and was always in a continual and steady augmentation, none of them has been of democracy and freedom.

On the other hand, the U.S. could have missed China’s peculiar authoritarian cultural tradition while creating such a policy: the tradition itself would make any such policy seem to have an overly slim prospect of success. In over two thousand years from 221 BC to date of Chinese history, there have been solely two types of political systems: totalitarianism with socialism and communism as its main ideological characteristics and absolutism featuring Confucianism, a philosophy highlighting hierarchical relationships, observance, and compliance, as its primary ideological attribute. And the two kinds of ideologies are imposed on people as the two sorts of political systems are and at the expense of the freedoms of thought and speech. This wreaks havoc on the nation’s brainpower so badly that until the terminations of two Opium Wars, Chinese people didn’t still know what science, democracy, equality, and freedom are.

China’s this kind of authoritarian tradition with ideology has never broken. Before Mao, as a single official ideological thought, Confucianism had almost never received any pungent challenges. But when Mao, as a communist revolutionary, took on power, he launched all-out attack on it and then threw away it for his own thought and Marxism and Leninism as topmost ideological theories for the nation and from then to date, the three isms have always been part of the CCP and the nation’s fundamental ideology, irreplaceable.

Be that as it may, there are signs that, as a part of the China dream and a method of governance, Confucianism is coming back to the heart of the country’s cultural activity. Current president Xi has many times effectuated confidence in China’s traditional culture and presented himself as an ardent fan of it, oftentimes citing creeds from Confucian classics on many public occasions. More important is that the past Confucianism has been edited into schoolbooks again for present students from elementary to high school. This is a departure from Mao’s thought and for modern Chinese people, this is also the reappearance of an old specter.

The U.S. strategy intention is sowing the seeds of democratic revolution or reform in China in the economic way. But U.S decision-makers and their think tanks seem to forget that to make these seeds grow healthily, there needs to be suitable cultural soil. China isn’t such a soil: its heritage and civilization are nurseries for authoritarianism. So the secret to turn China into a liberal democracy isn’t by economic activities but by teaching and disseminating democratic and liberal thoughts to alter its tradition. Leaders of the CCP need to ameliorate the nation’s economy to consolidate their rule whereas the U.S.’s such policy just plays into their hands. Accordingly, integration policy, when being applied to a country like China, could produce a setback.

China’s developmental direction and course

In Deng’s age, as Deng himself said, China was still in a developmental state of feeling stones to wade across the river, namely a condition of lacking a crystalline national development strategy. China of the day is no longer in such a state; its leaders have expressly known how and where the country should be led.

In the next half of the 19th century, owing to humiliating defeat in the First and Second Opium Wars against western powers Britain and France, rulers of the Qing dynasty afterward mounted a reform campaign for rendering the nation prosperous and powerful to learn and introduce western sciences and technology, especially military technology. The reform campaign also first set up and develop western-style military and civilian industries and schools in China, but it failed to touch at all the ruling base of the dynasty, namely its absolutism with Confucianism. This was an immense emasculation: After the reform drive lasted 35 years, China lost the Sino-Japanese War; about 17 years after this, the Qing dynasty, the last dynasty in Chinese history, came to an end with people’s revolution for democracy.

Now, the CCP is following the same lines to run the nation: focusing on economy and trade, sciences and technology and military strength; refusing demorcratic reform bluntly and clamping down on freedom of thought and speech continuously; and renewing its totalitarianism with Confucianism again. Markedly, Xi is rebuilding an old empire and building it into a sphinx monster, a hybrid of part westernization, part socialization, and part revivalism. No one can know for sure whether or not such a China will be a huge threat to the whole world, but it certainly will be a fearsome foe to the liberal world. Oddly, it is some countries of the world that have been giving the state a leg-up.

The serial report by Reuters, “Breakout: Inside China’s military buildup”, has lucidly revealed how western countries, especially Britain, France, and Germany, have bypassed arms sanctions to help China to construct a bigger, more sophisticated weapon system. According to the report, it is inconceivable how China’s advanced military equipment, like stealth fighters and navigation satellites, would be possible without cutting-edge and precise gadgets, components, and apparatus from these nations.

Same true, the West is the cardinal exporter of knowledge to China. Data from the Institute of International Education show that in the 2013/2014 academic year, China sent over 0.27 million students to the U.S. for study and was the leading sender of students to the country for the fifth year in a row. At once, data from the Ministry of Education of the PRC indicate that in 2014, around 0.46 million Chinese students in total were studying abroad. Therefore, on count, during the time, some 60% of these students were receiving education in the U.S. Moreover, 82% of the Chinese students studying abroad in 2013 were being instructed in western nations and from 1978, the first year China started reform and opening-up policy, to 2014, over 3.5 million Chinese students were learning overseas and over half of them have returned to China now. These numbers show how crucially China rests on foreign knowledge and there is reason to believe that in the predictable future, western nations will still the central exporter of knowledge to China if they themselves don’t change policy.

China’s deadliest shortcoming is short of vital scientific and technological innovation capacity while it is bent on being the first power in the world; the kind of ability is the common stamp of all world powers in modern history. This puts the country at an acuter disadvantage in the struggle for the standing of the world’s first power than other powers in history, for instance, Germany and Japan. Yet, this is a prerequisite bitter pill it has to swallow: this is the inescapable adverse effect of its own everlasting ideological tradition strangling freedom of thought. As to its traditional ideology, Confucianism, it is still a question whether or not it itself would be welcome if it weren’t imposed on Chinese people.

Yet, to make the catchphrase “the splendid resuscitation of the Chinese nation” or “the China dream” more credible, China has also rewritten its history depending on some disputable researchs, for instance ones by British scientific historian Joseph Needham and French economic historian Paul Bairoch. In the new historical story, China is represented as a nation that was not only the world’s most powerful nation but the world’s most advanced state in science and technology in the course of a long time ago; for example, in 2014, Chinese Foreign Ministry spokesperson Qin Gang said that China had led the world in the past for over 100 years in response to Obama’s remark that the U.S. would continue to shepherd the world for 100 years and in 2015, Chinese Ministry of Science and Technology vice-minister Wang Zhigang, in an interview, gave a speech saying that China had been ahead of the world in scientific and technological creation as early as in the late Ming dynasty and the early Qing dynasty.

The CCP’s target is very explicit: just effectuating China into a world’s number one power of Confucian tradition through western sciences and technology. In the predictable future, no visible strength can hamper it from fulfilling the target except western countries change existing policy. At home, the CCP even has no discernible oppositional force yet. And the failure of the last two ruling classes in Chinese history, the Qing dynasty and the Nationalist Party, is closely connected with the foreign invasion and occupation of China; today’s China isn’t in such a case. By calculation, the average life expectancy of a dynasty in the nine dynasties uniting China from the Qin to Qing dynasties is some 170 years. Hence, there is reason to believe that the liberal world will still be facing an authoritarian China for about 104 years if relevant policy doesn’t shift.

Sino-U.S. struggle

While China has vicious defects in scientific and technological creation, the U.S. doesn’t have overwhelming advantage in the Sino-U.S.struggle, specially in disposing of problems on China. The South China Sea issue is just a paradigm. In international relationships, no evidence illustrates that a developing or underdeveloped country heavily banking on other countries’sciences and technology and abundantly using simulated technological apparatus must not be able to beat at their own game a developed nation like Japan or the U.S.. China’s own history has well shown that this is possible: in the Korean War, an extremely underdeveloped China tested the U.S. and its allies’ strength and will and in the end, won a tie. The Vietnam War afterward has further proven that the potential is true, in which a badly impoverished Socialist Republic of Vietnam successfully defeated and expelled the U.S. military from its domain.

So, China has the reason to believe that it has potence to withstand, even overcome the U.S. in the future conflict; particularly when it encounters a U.S. that has been tired of and tried its damnedest to stay away from war, the kind of case is more likely to transpire. This is the reason why China would turn down the U.S.’s peaceful suggestion on the South China Sea issue and it also hints that the U.S. has no means but by concession, blockades, democratization, or war to stop China from annexing the whole South China Sea.

The U.S.’s weakness lies in it always putting its back into avoiding conflicts between major powers. This makes many international issues, for instance, the North Korea nuclear and missle issue and the Iran nuclear program issue, unable to be solved in an effective way. In the North Korea issue, on account of China’s backing for North Korea, U.S. sanctions against North Korea to hinder it from developing nukes and ballistic missiles are almost feeble. In the Iran issue, as Iran itself is a major economy in Asia, U.S, economic sanctions against it to force it into giving up its nuclear program has slight impact too. The U.S., as the present world’s sole superpower, when not able or willing to deal with international disputes on its strength all the way, looks like a paper tiger, or at least not so purportedly muscular on the surface.

At heart, the Chinese nation is an ethnic group admiring and pursuing power and influence; in Chinese history, the transitions of all dynasties and ruling classes were completed by force. So, in Chinese history, force was the source of the legality of everything, including power. This is an invariant Chinese tradition. Most of western scholars make a mistake in construing the Chinese power legitimacy source issue. They often think that Chinese rulers need to unravel what the legitimacy of their power comes from. In fact, in China, this is a false issue: in here, the law of the jungle is just the real origin of power and thus the main source of law. Therefore, according to tradition, the CCP doesn’t need to bear witness to the legality of its power as long as it has strength to seize power and keep the power. So, what it needs to do is how to manage the country well in its own way and at its own discretion; law, for it, is only a tool able to be used for its rule.

In Chinese history, corruption and poverty were two indiscerptible root causes of the collapses of all dynasties and ruling classes. In Mao’s age, very destitute as China was, it had little or no corruption; therefore, no revolution or uprising arose at the time. Rampant as corruption is in current China, present China is by far more affluent than then China; thus, it is very difficult for revolution or rebellion to come up in the time, if not impossible. So, in a sense, U.S.’s that kind of integration policy of wishful thinking is actually the momentous cause of present-day China not having democratic revolution or movements. And in another sense, a sense of international relationships, the U.S., over its such policy, also puts itself in a situation in which it is helping its rival to surpass itself. This is exactly the opposite of its post-Cold War number one defense strategy objective, to prevent the emergence of a rival superpower

By war is the critical, most efficacious, but most detrimental way to convert the old situation or order and originate the new situation or order at a nation’s or some nations’ discretion. Two Opium Wars decisively put an end to the closure of China lasting nearly 2000 years; World War Ⅱdirectly leads to much part of today’s international order. The Cold War isn’t a real war but only a rivalry between two superpowers the U.S. and the former Soviet Union. So, though its end vitally changes the old international order, the “war” doesn’t beget the new order at the U.S.’s discretion.

In international relationships, not a nation would launch or fight a war for the causes of democracy and freedom of another country. Thus, it is foreseeable that the U.S. won’t stage a war for China’s these causes. Yet, in the U.S.’s own national interests, it needs to prepare itself for a military conflict with future China. The kind of conflict becomes more likely specially over current China’s unrestrained ambition for regional and global hegemony. Nevertheless the U.S. has chances to shun the likely armed contest. With the same view of values and respect for human rights and the rule of law, democracies are more willing to solve contention and strife between or among them over peaceful approaches and never war has broken out between two democracies. So, if China is able to be transmuted into a liberal democracy, this will be a best way to avoid the China-U.S. war and in the U.S.’s permanent national interests. Thus, the kind of way deserves the U.S. trying with the most possible effort.

In the Sino-U.S. relationship, the U.S. should try its best to show the muscle matching its status as the present world’s single superpower and exercise it if need be but not always and excessively underline dialogue and contact. U.S.-China human rights dialogue has been held 18 times , but the result is that many western mainstream media’s websites that had been able to be visited in China, for instance, The New York Times’ and The Wall Street Journal’s, now have been already blocked.

A piece of advice 

To settle the Chinese democratization issue, the U.S. should first plant the seeds of democracy and freedom in Chinese’s minds. This is a thing that is right off able to embark on in the U.S.’s own home: since every year sees hundreds of thousands of Chinese students studying in the U.S., the students are just the very objects of cultivation. The U.S. should teach the students some subjects on democracy politics, democracy history, and/or democracy philosophy but not impart only some science and technology to them and if possible, such education should be compulsory. Occasion is very simple: these subjects are generally prohibited in China. Hence, the students will have little or no opportunity to learn or know the subjects before coming to the U.S. and thus will have little or no fortune to choose by their own knowledge of democracy whether to study the subjects or not further and whether to join democratic movements or not.

The kind of the lack of room flowing from the control of the nation can be made up for farthest and most effectively only by state action; for instance, in the Qin dynasty in China, Confucianism was ever atrociously forbidden and squelched by emperors to near disappearance, but in the Han dynasty therewith, it became emperors’ focus of attention and was recognized as a state belief at last. Since then until the Qing dynasty, with the continuous upholding of rulers, Confucianism was always in an universal popularity.

Resultingly, the students, if there isn’t an obligatory educational system requiring them to learn and know the subjects, will still be in innocence with democracy, largely as in the ages before the First Opium War, Chinese intelligentsia knew only Confucius, Lao Tzu, or some other Chinese thinkers of those days but not Plato, Kant, or any other western scholar or thinker of those times. Therefore, even just for its own national interests, the U.S. should help China with its democratization issue.

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East Asia

South Korea should go with the United States

Sun Moo Kim

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Now, previous success won’t guarantee same success in future in the age of the Fourth Industrial Revolution, We are expecting generation that ability to create new and missing things is more important than keeping existing assets.

The economic survival strategy also changes.

There is no longer continuous growth in this new era, even for a major growing corporation. For example, an automobile can be a mobile computer with value added on software and electronics. Every industry becomes IT related company, not only food and pharmaceuticals industry, but also construction and banking business as well. Now, a company own by person who counts the money in front of the vault and calculates the stock number can’t be survived. Although the South Korean economy has global competitiveness in mobile phone semiconductors and some industries, South Korea is facing huge challenges.

South Korean companies must challenge upcoming new business in order to servive. South Korea has strong engineering system. But even Germany which has world’s most powerful engineering system is having difficulties in developing new business areas. South Korea has no resources and can’t be self-sufficient. It is the fate of South Korea to look out for the world.

The US and China trade wars of two axis of the global economy are becoming reality.

As the United States imposed a $ 60 billion tariff in retaliation for China`s breach of intellectual property rights, the Chinese Department of Commerce immediately launched a counterattack by imposing a $3 billion tariff on 128 U.S. products.

Global stock markets plummeted dramatically and The WSJ reported that world was horrified by the terrible of uncontrolled commerce war. This trade war is a step in keeping the United States ” Economic security “on the rapid growth of China’s high-tech sector.

China, once called the “World Factory” by cheap labour put their hand to rebellion. To take an instance from smartphone, Huawei, Oppo, Vivo’s superiority in Apple designed by California and produced by China is striking. Oppo and Vivo are focused on advanced technologies, not only low-price.

China is moving from ‘Made in China’ to ‘Created in China’ through the ‘China Manufacturing 2025’ plan for the manufacturing powerhouse. By the manufacturing 2025 project has an ambition to boost China’s competitiveness to surpass the US, Germany, and Japan levels and to become the world’s No.1 in 2049.

According to Financial Times that the Trump government emphasized “economic security is the security of the country,” that is meaning the United States to take aim at the Chinese manufacturing 2025.

It is not so simple in terms of South Korea reality.

In South Korea, China and USA are first and second market highly dependent on exports of Korea that counts 25 percent of China and 12 percent of US market.

If the market shrinks due to the friction between the U.S. and China, South Korea could be caught in the middle of the market and not be able to choose either

But The true global leader in today is the United States and Unites States is really strong.

South Korea should go with the United States.

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East Asia

Power Projection of China

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A coin has always two faces, an analyst is ought to analyze the both sides.

China is considered as flag holder of soft power with a global agenda of peaceful rise. At moment, the world is facing a new emerging global order by the rise of multiple actors in the international arena. Now there are two school of thoughts who are proposing contradictory views like one wing regarded it as optimistic Sino rise who believes that China’s rise is peaceful. Its foreign policy is viewed as one of the most harmonious policy ever structured. They believe in the mutual cooperation and peaceful coexistence. Rise of China is an optimistic opportunity which is justified by different aspects. As African states were facing a massive number of problems at all levels, many super powers came and ruled the world but they didn’t bothered the prosperity of third world countries.

China started invested in African region and assured the chances of prosperity over there. Due to this economic integration of China in Africa, a demise of Indian influence in that has been observed as well. Their economic cooperation is based on model of helping underdeveloped countries by initiating the projects like Belt and Road Initiative. They are extending the helping hand to developing countries by selling products at cheaper rates. They respect the ideologies of other countries, for example, China didn’t celebrated Pig year in Muslim countries. Regarding Pakistan, here the optimistic view is prevailed at higher context. Pakistan’s policy makers favor Chinese investment in Pakistan, as it will help Pakistan in economic prosperity. China helps Pakistan at almost all of the international forum. Friendship of china and Pakistan is the strongest one to be observed. Pakistan can learn a lot from them. The proper use of diplomacy, image building, projection of soft power and individualism in ideologies and beliefs. Long term planning strategies can be learned from them. China is all weather friend of Pakistan but self-skills are significant, as there is a famous Chinese saying, “to serve a guest by fish is a good way but to teach them how to catch fish is the best way to serve them.”

On the other hand, there are supporters of pessimistic Sino rise who believe that China’s rise is threat for globe. This pessimism is oftenly prevailed by western analysts. They think that rise of China can disturb the existing world order. For example, China is competing with American economy in the international market. Balance of power is coin of international politics, so other actors are emerging now. But the rise and demise of powers after a certain time period is one of the laws of nature. Specially America is feeling threatened by this emergence of China as a super power which can be seen through events like Huawei issue over 5G technology, its sensitization, trade war between china and America, claim of copyrights by America etc. increasing influence of China in majority of states is posing the seriousness of issue. Chinese model of Confucianism is spreading as it has started practices in South Korea as well which is predicted through their cultural stimulus.  Pessimistic school of thought deny the authenticity of foreign policy of China, they consider that it is a mere framework which has nothing to do with reality.In reality China’s behavior is like relations having towards Taiwan, South China Sea etc. Interest of states are very important which may differ from each other. Lensing through these views, this unpredictable situation leaves a humans mind into a chaos, whether the rise of China is peaceful or just a myth?

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East Asia

The origin of the Four Modernizations and President Xi Jinping’s current choices

Giancarlo Elia Valori

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On September 13, 1971 Lin Biao tried to flee to the USSR with all his family, aboard a Trident plane of civil aviation, which had left with little fuel and no active radio contact.

The crash of the aircraft in Mongolia, where both Lin and his whole family died, was caused by the order given directly by Mao to shoot down the plane.

 What had happened, obviously in political and not in personal terms?

 The answer is simple: Lin Biao was very strongly opposed to the new agreement between China and the United States and hence had organized a military coup. For Lin Biao all the room for US geopolitics was to be found in what the Third International’s forces traditionally defined as “imperialism”.

 For Mao Zedong, imperialism was vital for both the USSR and the USA- and considering that he was far from the continent that was the prize for which of the two won the Cold War, namely Europe-he refused to make too many differences between the two.

 As a man of Tao and Zen, Mao treated an evil with another evil.

  Mao Zedong, however, also knew that a new economic relationship with the United States was needed, after the long economic crisis and the factional instability within the Chinese regime. The Soviet Union could certainly not give it economic stability and hence the “Great Helmsman” turned to the distant enemy rather than to the near quasi-friend.

 Nothing can be understood about China, including current China, if geopolitical choices are separated from economic, financial and industrial ones which, however, are subjected to the strategic “policy line” defined by the Party – a policy  line that is cultural and always based on a very long term.

 On September 29, 1972 the diplomatic relationship with Japan were resumed, along with those with the United States. An evident overlapping of different geopolitical lines which, however – in the minds of the Chinese decision-makers -were similar also from the symbolic viewpoint.

 In 1973 Deng Xiaoping reappeared in public, upon direct order by Mao Zedong.

 Those were also the years of the late definitive success of the “policy line” of Zhou Enlai, who had successfully gone through the Great Cultural and Proletarian Revolution, which had partly overwhelmed him, and led the 10thCPC Congress.

 That was the compromise which held the Party together, after Lin Biao’s elimination. An unstable agreement between the reformist “Right” (Zhou had spoken of “four modernizations” many years before, exactly in 1965) and the Left, silenced by Mao, that had crossed the red line of the Cultural Revolution and the failed communization of rural areas.

 In those years, also the Party’s Left lacked mass management of the people and the Party and had to agree with the other factions, while Mao mediated and also created “third wheels”.

  Create something from nothing – one of the Thirty-Six Stratagems of the Chinese Art of War.

 In 1973, just before the equilibrium between Zhou and the old CPC apparata broke again, Deng Xiaoping was fully rehabilitated and also became member of the Chinese regime’s deep axis, namely the Central Military Commission.

 In 1975 Deng was elected vice-President of the Central Committee and member of the Politburo Standing Committee.

 The connection between the reformists – if we can call them so – siding with Zhou Enlai, and the “centre” of the Party’s apparatus – that regained its roles and posts by ousting the Armed Forces -prevailed once again.

 Again in 1975, the National People’s Congress praised the “Four Modernizations” already proposed by Zhou and, in its final statement, hoped “that China would be turned into a modern and powerful Socialist country in the approximately twenty years before the end of the century”.

 Political transformation through the new economy, as well as preservation of the regime through political transformation itself.

 We could call it “the Tao of geoeconomics”. Acceleration of industrialization and modernization, but without creating the disaster of rural masses, who were objectively unable of providing the start-up capital for implementing any of the Four Modernizations. This was the real difference with the USSR of the 1930s.

 That capital had to be produced in innovative companies and be attracted from outside.

 At the time, however, the CPC was not yet firmly in the hands of any factions. In September 1975, the national Agriculture Conference saw the harsh clash between Deng Xiaoping and the old “Shanghai group” of the Cultural and Proletarian Revolution that, however, no longer controlled most of the Party.

 Zhou Enlai died in January 1976 and shortly afterwards, in Tiananmen Square, there were severe incidents, albeit with the constant presence of many wreaths reminding of Zhou.

 Later there were also strikes and unrest, until the capture and trial of the “Gang of Four” in Shanghai. It had inspired the “Cultural Revolution” and was then directly accused by Hua Guofen – the man appointed by Mao to lead the transition- of having prepared a coup.

 China’s transformation, however, began again from rural areas: at the second Agriculture Conference in Dazhai, in December 1976 – where various cases of corruption and “social polarization” were described and stigmatized- the discussion focused on the First Modernization, namely that of rural areas.

 When you regulate too much, a parallel and illegal market is created. This always happens.

 Obviously this also happens when total communization is applied to the economic cycle of rural areas.

 Certainly those were residues of Sovietism in the CPC’s  doctrine, but also of the a-dialectical implementation of Marxism-Leninism in historical and social contexts in which the analysis of the founder of “scientific Communism” had never focused.

 In fact, when you read the works and correspondence that Marx dedicated to the Russian agricultural issue, you note that the author of “Capital” foresaw a direct Socialist social transformation stemming from the maintenance of the social and community networks in traditional villages. It may seem strange, but it is so.

 This system operates only with a non-industrialized State that is scarcely widespread in the territory. Otherwise, the problem is that of capitalism in rural areas to generate the surplus of urban and industrial investments.

 Even in the Second Volume of “Capital”, Marx’s model is essentially this one.

 It is precisely on the agricultural issue that the stability and success of many Communist regimes isdefined and, not surprisingly, the first of Zhou’s and later Deng’s Four Modernizations was precisely that of agriculture.

 The topic characterized all Party’s organizations, but it was in late December 1978 that the Third Plenary Session of the 11th CPC Central Committee decided to decentralize the economy – another factor strongly different from the Leninist tradition – and even to liberalize it, in addition to a process of ideological revision, namely Gaige Kaifang that roughly means “reform and opening”.

 That was also related to the request for opening international trade based on the criterion of “mutual benefit” and equality between the various countries.

 Hence, also from the ideological viewpoint, Deng became the Supreme Leader of the Party – as well as of the State apparatus – and announced the Open Door policy.

 An extremely important fact was also the separation of the Bank of China from the People’s Bank of China, so as to serve as single State body for foreign exchanges.

 That was the start of the “Long March” towards the Four Modernizations, with an unusually united Party, and currently towards “Socialism with Chinese characteristics” , as well as – at geopolitical level -President Xi Jinping’s New Silk Road.

 In January 1980, the “four freedoms” – of work, people, goods and capital – were abolished.

 The new planning needed to manage all aspects of productive forces.

  That was explained by a covert war of the Chinese economy against the penetration of foreign capital and joint ventures, which in fact were immediately regulated by specific legislation enacted the previous year.

 The great British operation of economic control over the South-Chinese coasts was resumed from Hong Kong, but the Chinese government eliminated the possibility of such an action by Great Britain (and by the USA, at least partly).

 Hence the Party’s unity had to be reflected in a new context and, to some extents, in the whole society, so as to prevent the liberalized Chinese economy from taking the Party and Socialism away. A new rationale for the CPC’s Leninist unity.

 The new Act on contract law was enacted in March 1981, and in 1982 also the new civil procedure law was enacted, which became effective on October 1, 1982.

 In September 1983, at the 12th CPC Congress, there were three groups within the Party: the nostalgic Maoists, a small and narrow majority for Deng Xiaoping; the Orthodox group that still wanted a nationally planned economy, as in USSR -hence probably the heirs to Lin Biao; finally the real reformists.

 Deng won with a clear, but not overwhelming majority.

 Hence, everyone was waiting for the Four Modernizations to fail, so as to go back to the old routine of the Plan.

 As also happened in the USSR, it was often fully imaginary compared to the actual reality of the things done and produced.

 It was in 1983, however, that the Third Front strategy was implemented, i.e. Mao’s directive – drawn up as early as 1962 – according to which the national strategic industries had to be moved from the coasts – militarily and politically difficult to defend – to the internal areas. Without said Mao’s directive, the New Silk Road could not be understood even currently.

Hence 14 open coastal cities that were declared so in 1984, but with a new law on profits that served as mainstay of Modernizations: companies were asked to pay a certain share of profits to the government, but they could withhold some profits if they matched and exceeded the requirements of the contract with the State.

 In 1985 a new regulation also involved government bonds. The seventh Five-Year Plan began, underlining a “scale” approach, in which the coastal areas – gradually freed from traditional strategic companies – were driving the economic development, which later spread like wildfire even in the internal areas.

 It was the Hong Kong model that Deng Xiaoping’s executives copied and adapted.

 For a short lapse of time, Chinese analysts and Party planners also looked to the Singapore model, with the (single) Party of Lee Kuan Yew.

 It isby no mere coincidence that Shenzen was close to the former British colony, and often the Chinese attracted and favoured the companies of the British area towards the new Chinese coastal areas also characterized by free-market economy.

 Advanced and high-tech services in coastal areas, and lower value-added, but still inevitable, productions in internal regions.

 A new dualism, where rural overpopulation had to be gradually absorbed by inland strategic companies.

 A double geopolitical status of inland areas which, in many cases, is repeated also in the current Belt and Road Initiative.

 In 1986, the “open-ended” contracts for the manpower working in State-owned companies came to an end.

 In October 1987,the 13th CPC Congress was held, in which – for the first time – there was talk about the “commodity economy”, i.e. a two-tier mechanism, in which the market is matched and also “corrected” by the old national planning.

 A sort of re-edition, for internal use, of the formula “one country, two systems” implemented by China with the agreements for Macao and Hong Kong.

 In 1988, however, the 7thNational People’s Congress officially legitimized the private initiative (not the mere ownership) and enabled private individuals to buy State-owned companies.

 The term “People’s ownership” was also deleted, while individuals and groups, even non-Chinese ones, could buy land with a system similar to that of the British real estate leasing.

 Profits, wherever made, had to be reinvested in the company that originated them, before requesting any financing from the People’s Bank.

 The Special Economic Zones, modelled again on the Hong Kong system, became five.

 Hence innovation on the coasts and strategic companies in the central regions – mainly public ones, which still remained almost completely public.

 In April 1989, Jiang Zemin rose to power.

 Student demonstrations also began in Tiananmen Square, where, year after year, the various anti-regime organizations gathered: Falun Gong, the networks of many illegal parties, unrecognized union organizations and many “spontaneous” groups.

 And some old “Red Guards”.

 Zhao Ziyang, the Party leader already defenestrated by Jiang Zemin, was in fact at the centre of “spontaneous” organizations.

 The various Autonomous Federations of Workers -spread by location and not by industry – were legally created.

 Gorbachev’s visit took place in May 1989.

  That was the key moment of a long series of doctrinal, practical, cultural and historical differences that – from the very beginning – divided the two great Eastern heirs to the Marxist-Leninist Third International.

 What really mattered to the Chinese leadership was that the Russian crisis did not overwhelm the Chinese Communists: that was the meaning of the declaration signed by Gorbachev, which regarded the “peaceful coexistence” of the two Communist regimes.

 The leader of the Soviet Party was made fun of – not even so elegantly – not because he had reformed the Soviet economic system – in a way, however, that the Chinese deemed wrong – but for one reason only: he had relinquished the Party’s role in the reformist process, which the CPSU had to lead and guide for China, from the very beginning.

An “economicist” mistake, as the CPC’s ideologues said – yet another proof of the Marxist roughness of the “Northern enemy”, as Deng Xiaoping called Russia.

 Sarcastic sniggers on the lips of Chinese leaders. Then Gorbachev explained again his perestrojka and glas’nost, but the Chinese leaders, whose power was based on Party’s bayonets, kept on not taking him seriously.

 Days before the arrival of the Soviet leader, at least one million people had gathered in Tiananmen Square.

 The problems that the Chinese leadership had to solve in a short lapse of time were radical: the “hard” wing that was previously a minority prevailed and managed to convince Jiang Zemin.

 The Party and its authority – the basis of any transformation, even the most radical one – were re-established without much talk. It was impossible to think about a heir to the “Long March” that dissolved the Party within “society”.

 On May 19, the CPC decided to follow the hard line and the military forces reached the areas near the Square, from the outskirts of Beijing.

 Few hours later, the Square was completely cleared, but that was done the hard way.

 Shortly afterwards, at the 4th CPC Plenum, Jiang Zemin –  also following the experience of Tiananmen Square – returned to one of his old theories and developed the “Three Represents” model, i.e. the idea that the CPC’s power was based on its “vast representation” of the Chinese productive forces, of the cultural and technological avant-gardes and of the wide strata of population.

 In other words, the Chinese society – and its economy, in particular – was reformed by bringing the elites together, part of whom were in Tiananmen Square, but also the large crowds still organized by the Party.

 A Confucian middle way that was particularly successful.

 Hence, Zhao Ziyang definitively lost the game within the Party that, however, was also inside the Tiananmen Square insurgency.

 Once the crisis was over, Deng Xiaoping left also the last very strong power in Jiang’s hands: the leadership of the Central Military Commission.

 Shortly afterwards – and there was nothing more symbolic than that event – the Stock Exchange of Shanghai reopened. A reopening that had been expected since the 1930s.

 Later also the Shenzhen Securities Exchange opened. In both of them, any securities – including those issued by the State – were traded, but there was only one deep logic: to acquire productive capital to generate strong and self-sustained development of the coasts and of the high value-added industries that had to compete on the world free market, without granting protection and aid that would go to the detriment of the deep productive structures of the internal regions.

 In 1992, Deng’s journey to Southern borders had a clear route, although the CPC’s leadership had always had some doubts about the “free economic zones”. The core of the issue was that the GDP had to be increased in the lapse of time between the 1990s and the beginning of the Third Millennium.

  It had to be rapidly increased from 6% to 10%.

 Without that “quantitative” assessment – just to use the old Communist jargon – there could be no “qualitative” transformation of Chinese society.

 Everything had to be done soon – well, but soon. That was the characteristic of Deng Xiaoping’s years – extraordinary years, in some respects.

 In a short lapse of time, the Party developed the concepts of “Socialism with Chinese characteristics” and of “market Socialism”, which are so important also in President Xi Jinping’s current policy line.

 There were also other changes that, in a few years, led to the current Socialism with Chinese characteristics, as advocated by President Xi Jinping. However, everything could be done from a legal view point began in those years.

 The transformation process of the Chinese economy is long, powerful and complex, but – unlike what is often said in the West – it is never a mere market mechanism or a naive adaptation of the Party or the State to the absolute Western rules of globalization.

 As early as the 1990s, China has decided to govern market globalization and not just being a part of it. It wants to lead the process so as to be – now that the end of the century about which Deng thought has long been over – the axis of globalization and the centre of the new global hegemonies.

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