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China Missed the Industrial Revolution, But It Won’t Miss the Digital One

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In 2016, artificial intelligence defeated a professional player at Go for the first time. The AlphaGo program, developed by DeepMind, first beat three-time European Champion Fan Hui, and a short while later bested Korean Lee Sedol, considered to be one of the best Go players in the world. Many believe that it was artificial intelligence’s conquest of the ancient Chinese game that convinced Chinese authorities to think seriously about including the development of artificial intelligence among its strategic goals. However, the importance of artificial intelligence is not a new idea. Although the foundational Next Generation Artificial Intelligence Development Plan came out in June 2017 a year after the triumph of AlphaGo, the field had already been earmarked as a priority in many earlier documents.

21st Century Electricity

Back in 2006, the State Council of the People’s Republic of China published its National Medium- and Long-Term Program for Science and Technology Development for the period up to 2020. It names smart sensors, intelligent robots, and technologies of augmented reality as areas of priority. The Made in China 2025 plan was released in 2015. It includes a USD 300 billion fund for the development of high technology and industrial manufacturing. The plan involves intensifying work in R&D, new materials, artificial intelligence, the creation of fifth generation telecommunications networks, and the manufacturing of robots. In 2016, the State Council published its Guiding Opinions on Actively Promoting the Internet Plus Action Plan. The document prioritizes artificial intelligence, along with big data, blockchain, and machine learning, for a state strategy aimed at accelerating the use of information and communication technologies for the development of the smart industry.

Why has China become so serious about developing artificial intelligence? Artificial intelligence has been called the electricity of the 21st century. It is a technology capable of spanning numerous sectors and giving rise to a new industrial revolution, which is exactly what China needs now. For some time, the country has functioned as the world’s factory; by employing cheap labour and copying foreign technology, China has supplied the entire world with inexpensive (and not always high-quality) manufactured goods. It is a model that has facilitated several decades of double-digit economic growth rates.

However, China has now fallen into the trap of average income. The population’s living standards have grown, reducing the country’s main competitive advantage – cheap labour – to naught. As a result, the only solution is to compete with developed economies and with their qualified personnel and innovations. To do so, the country needs a technological breakthrough. Artificial intelligence could play just such a part.

Russian President Vladimir Putin has noted that the leader of artificial intelligence will be the ruler of the world. Chinese authorities understand this. In June 2017, the Chinese State Council released its Next Generation Artificial Intelligence Development Plan, which states that artificial intelligence has become a new arena for international competition. It is a strategic technology that will set the stage for future development and determine a country’s international competitiveness, national security, and influence in the world. Consequently, the Chinese authorities hope artificial intelligence will help transform their economic growth model and expand geopolitical influence, as well as modernize the army and strengthen the country’s defence capabilities. Chinese President Xi Jinping has repeated on more than one occasion the importance of civil-military integration and the need to remove barriers between the commercial economy and the military-industrial base. In other words, artificial intelligence is seen as a dual-use industry. It seems that the development of military and civilian uses for these technologies will occur simultaneously.

Strategic Goals

The Chinese Next Generation Artificial Intelligence Development Plan sets three strategic goals. The first is for Chinese AI to match pace with corresponding sectors in key developed countries by 2020, with the foundational branch of AI collecting USD 22.5 billion and related industries exceeding USD 150 billion. The second goal is for China to take the lead in some areas of AI by 2025, with the foundational branch collecting USD 60 billion and those related attaining USD 745 billion. Finally, by 2030, China should become the world’s main centre for innovation in the field of AI, with the foundational branch collecting USD 150 billion and related branches reaching USD 1.5 trillion.

The programme does not explain exactly how to achieve these strategic goals, although it does officially have a section devoted to the topic, titled “objective tasks.” It is essentially a list of industries amenable to the introduction and development of artificial intelligence. These include smart cities, AI in medicine, swarm intelligence and deep semantic analysis, computer vision, and the use of AI in the defence industry and social management. It seems that the programme is not so much a practical guide to action as a general reference point for central and local authorities. Officials can select the area of the programme best suited to their particular region and develop it by adding their own initiatives. For example, authorities in the historically poor province of Guizhou chose to make it China’s data centre, enabled by the favourable cold climate and mountainous terrain. Chinese technology giant Tencent is already building a giant 30 sq. km underground data storage in the mountains of Guizhou. A similar data centre is being built in Guizhou for Apple’s iCloud. Construction is to be completed by 2020, and the centre will occupy an area of 67 hectares. Investments in the IT sector in Guizhou have grown by 378 percent. USD 2.8 billion was invested in Guizhou last year in services related to the transfer, storage, and processing of data. What was once the poorest province has become one of the few in the first quarter of 2018 with double-digit GDP growth rates of 10.1%.

The Next Generation AI Three-Year Development Plan released by the Ministry of Industry and Information Technology of the People’s Republic of China in December 2017 is more specific about how to develop artificial intelligence and covers a period extending up to 2020. It has set several tasks. The first is to stimulate the development of smart products. This includes, in particular, cars connected to the Internet, smart robots and drones, voice and facial recognition, and machine analysis of medical images. It also calls for a breakthrough in key fundamental technologies like the development of chips and neural networks and open source platforms. In addition, the plan provides for the development of industries using key technologies from artificial intelligence.

The three-year plan coincides with another document issued by the Ministry of Science and Technology of China listing 13 technology projects with priority over large-scale public investment. These projects are to be implemented before 2021. The most notable among them calls for the creation of an artificial intelligence chip that promises to be 20 times more productive and energy efficient than the American-produced NVIDIA Tesla M40 – one of the most widely used artificial intelligence chips at the moment.

Where Can I Get Five Million Scientists?

It’s no wonder that the Chinese authorities are focusing on chips in the development of artificial intelligence. They pose the greatest problem at present. The development of microchips is an extremely knowledge-intensive and capital-intensive process, and the results are not always manifest. China is extremely dependent on imports of foreign microchips, mainly American ones, with only 16% of its chips produced in China itself. Annual imports amount to USD 200 billion, which exceeds Chinese oil imports. China’s share in the world market is even smaller: in 2015, China accounted for only 4% of world chip production, while the USA accounted for 50%. Naturally, the Chinese authorities support local AI manufacturers and developers in every way possible, granting them tax breaks, administrative preferences, and direct financing. For example, the China Integrated Circuit Industry Investment Fund collected USD 31.5 billion. This is not, however, such a large amount in the industry. Intel alone spent USD 12.7 billion on research and development in 2016.

China is also experiencing an acute shortage of qualified personnel. According to estimates from the Ministry of Industry and Information Technology of China, about 5 million specialists will be needed to implement the tasks that have been set. At the present time, there are 1.9 million professionals specializing in the field, 850,000 of which are in the USA, with only 50,000 in China. More than 43% of those in China came from the USA. Approximately 2,500 companies worldwide are engaged in the research, development, and practical application of artificial intelligence. The Tencent Research Institute has acknowledged that US companies occupy the lion’s share of the market and outstrip China in all aspects of AI research and development. Thirty-three American and fourteen Chinese companies are occupied with the development of processors and chips. Of the companies involved in natural language processing, computer vision, and image recognition, 586 are American and 273 are Chinese. And finally, 488 American and 304 Chinese companies are working on machine learning, smart drones and robots, and self-guided cars.

The only area in which China enjoys an undeniable competitive advantage is in the colossal amount of data it possesses. The population of China is considerable, and more than half of it – 752 million people (twice the population of the United States) – uses mobile Internet. Eighty-four percent regularly make use of mobile payments. These people leave “digital footprints” behind them in their everyday lives. This is precisely the kind of big data that is so important for machine learning.

The Rest of the World Will Help

In all other areas, China relies on foreign technology and personnel. The Next Generation Artificial Intelligence Development Plan and the Three-Year Action Plan discuss the need to encourage Chinese companies to carry out mergers and acquisitions of foreign partners. This policy has been successful. A few years ago, Chinese tech company Baidu opened its Silicon Valley Artificial Intelligence Lab, and in 2017, the company opened a second centre there for research and development of self-guided cars as part of the Apollo project. Soon after that, the company’s third centre in the US, the Business Intelligence Lab, opened for research and development of big data. The other tech giant, Tencent, opened its artificial intelligence research centre in Seattle.

Foreign companies are happy to open research laboratories in China itself. Google is hiring employees for its research centre in Beijing, even though the company’s main products, the Google search engine and Gmail, are blocked in China. On the other hand, Chinese authorities are trying to create favourable conditions for the work of foreign experts. Scientists and developers in the field of high technology can obtain a Chinese visa for a period of 5 to 10 years with the ability to enter the country an unlimited number of times. Moreover, Chinese companies spare no expense to attract specialists from foreign companies and competitors: a high-level scientist in China can receive up to a million dollars a year.

The US is concerned that China will borrow American high technology and attract US scientists to work in China, which will eventually lead to Chinese supremacy in the field of AI. In the US, the development of artificial intelligence is carried out mainly by private companies, and these companies often do not agree on how to develop dual-purpose solutions and products. For example, when Google took over DeepMind, the latter forbade the use of their products in the military or to monitor citizens of the country. Moreover, when Google acquired the robot developer SCHAFT, the company declared that it would not work for the Defense Advanced Research Projects Agency.

The situation in China is completely different from that of the US. Despite the fact that a third of the world’s tech startups with capital exceeding USD 1 billion are present in China, three technological giants dominate all the rest: Baidu, Alibaba and Tencent (BAT). In most of the start-ups, direct or indirect investments have come from BAT. China’s Ministry of Science and Technology formed the first working group for the development of next-generation artificial intelligence by these companies. In the group, Baidu will be responsible for self-guiding cars, Alibaba for smart cities and city think tanks, and Tencent for computer vision. What’s more, BAT has made no bones about sharing big data with the state if necessary and opening party committees within the company itself. The possibility of formalizing these relations by means of the government’s acquisition of a 1% stake in the companies has also been discussed. When Chinese President Xi Jinping speaks about the need for civil-military integration, it can be assumed that all the achievements of Chinese (and foreign) scientists and companies in the field of artificial intelligence will become available to the military.

The Race for Artificial Intelligence

There are no programmes directly involved in developing artificial intelligence in the Chinese military. However, according to Elsa B. Kania, an Adjunct Fellow with the Technology and National Security Program at the Center for a New American Security, the Chinese military understands the need for “intelligentization” of the military-industrial complex. Future military actions are likely to be impersonal, intangible, and inaudible. It is her opinion that China is actively developing UAVs, underwater drones, and self-guided combat vehicles.

This has the USA on edge. If the second half of the 20th century saw two superpowers, the USSR and the USA, racing after nuclear supremacy, then the 21st century will see two superpowers, this time the USA and China, racing after artificial intelligence. The US is trying to resist: President Trump has initiated an investigation into violations of intellectual property rights by China under article 301 of the 1974 US Merchant Act. This investigation has shown that China infringed on four main aspects of American intellectual property rights: compulsory transfer of technology, discriminatory licensing rules, cross-border takeovers, and theft of intellectual property. In regards to the “301 investigation”, US Trade Representative Robert Lighthizer said: “These are things that China listed and said we’re going to take technology, spend a couple hundred billion dollars and dominate the world. These are things that if China dominates the world, it’s bad for America.” As a result, Trump announced the possibility of introducing tariffs on goods from China to the tune of USD 150 billion in order to contain the development of the Made in China 2025 programme.

It is true that China has little difficulty parrying these attacks, promising in return to limit imports of American-produced soybeans and sorghum, more than half of which is exported to China. This would seriously impact the American farmers who made up a significant part of the electorate Trump relied on in his election campaign. This has made American attempts at containment thus far unsuccessful. Following the latest round of trade negotiations between the Chinese delegation headed by Vice Premier of the State Council of the People’s Republic of China Liu He, President Trump announced that the introduction of tariffs on Chinese goods has been postponed, as China agreed to lift restrictions on imports of American agricultural products.

China has publicly stated from the very beginning that if it is still possible to work on reducing the American trade balance deficit, then industrial and technological policy and development are an internal Chinese matter not up for discussion. In the eyes of the world community, President Trump has not appeared to be a crusader for justice, but rather an aggressor, encroaching on the basic principles of free trade and the international division of labour. If American companies willingly accept mergers and acquisitions from Chinese partners, then it must be economically profitable for them to do so.

Perhaps in the race for artificial intelligence it would be better to change tactics and move from deterrence to competition? The Obama administration developed an artificial intelligence programme and, as Western media outlets have noted, the Chinese programme for the development of next-generation artificial intelligence, established just a year after the American programme, appeared in many respects to copy it. In particular, the American programme suggested an increase in public funding for research and development in artificial intelligence. However, the Trump administration has decided to reduce the National Science Foundation’s already trifling budget for research on so-called intelligent systems by 10% to 175 million dollars. Instead of increasing their own spending on research, the US is trying to limit China’s development, but China is unlikely to make concessions. One recent article in a leading Chinese newspaper, the Guangming Daily, urged others not to miss the opportunities of a new technological revolution. It noted that China had been a strong agrarian country but had missed the opportunities provided by the industrial revolution and as a result had become passive and subject to infringements on the world stage. Thanks to the efforts of the last several generations, according to the newspaper, China has come closer than ever to bringing about the rebirth of the great Chinese nation and has never been as sure of itself as it is now. It would appear that the country’s leadership is trying to heed the lessons of the past so as not to miss the historic chance of leading the digital revolution.

First published in our partner RIAC

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East Asia

Is China on the brink of a food crisis?

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It is not a secret that the current COVID-19 pandemic has been affecting people all around the globe. The virus touched almost all spheres of regular life – i.e. it resulted in temporary or permanent closure of businesses, a rise in the unemployment rate, inability to physically spend time with family and friends. Such drastic changes in times of uncertainty significantly impacted the well-being of the world population. Moreover, Food and Agriculture Organization of the United Nations (FAO) warned about the emerging food shortages worldwide. According to FAO statistics, global food prices have been on the rise for four consequent months, hitting their maximum in September 2020. China – the place where the virus originated – is one of the states that have been seriously affected by the disruptions, including production and distribution of food.

In his speech on August, 11 Chinese leader Xi Jinping did not admit any food shortages. However, he promoted food security through the campaign “operation empty plate,” thereby encouraging people to stop wasting food. It is interesting to note that Mao Zedong introduced a similar food campaign before the 1959 Great Chinese Famine. Meanwhile, there has undoubtedly been a significant increase in food prices in China. Many experts claim that China is on the brink of a food crisis that has been manifested as a result of lockdowns, infected livestock, and poor weather conditions. It is difficult to give any predictions or estimations about the future food situation in China because the country does not share enough of its data with the rest of the world, yet it is possible to answer the question why the state faces food difficulties.

Average food prices increase

The National Bureau of Statistics of China reported that, on average, food prices have increased by 11.2% compared to 2019. The price level of vegetables increased by 6.4% in one month; egg prices soared by 11.3% within the same period. Pork prices grew the most, by 52.6% compared to the last year’s statistics. Why is it important?

Firstly, many workers and their families who faced loss or decrease of income or remittances became food insecure. That, in turn, has had social repercussions for the overall level of crime, health concerns among adults and infants, high death rate, different demographic and economic challenges. Furthermore, international trade will also suffer: due to the lack of labor force Chinese imports in foreign countries will seemingly increase in price.

Secondly, China, along with other countries, was in a period of recession earlier this year. Food insecurity will cause difficulties in coming out of this financial downturn.

The impact of lockdowns on food supply chains

One of the main factors contributing to the declining agricultural productivity and spiking food prices in China is the restrictions on personal mobility and transportation of goods. In January Chinese authorities adopted measures to limit mobility within the country; they imposed “city lockdowns, traffic control, and closed management of villages and communities.” Such restrictions impacted food supply chains. For the production part many workers experienced difficulties getting to work that created a shortage of physical labor. That is why some crops were not picked, others were not even planted. As a result, the supply of agricultural goods decreased. On the other hand, at the beginning of the year, the demand for them also fell as restaurants and bars were closed. Thereby, many crops went to waste, while farmers did not make enough profit to purchase the seeds and fertilizers for the next season. It is a problem because businesses continue to open up, raising the demand and prices on crops. Immobility also impacted the distribution of seeds and fertilizers to the farms that disrupted the plantation season. Furthermore, the distribution of agricultural goods to grocery stores became difficult. Particular inconveniences associated with the restrictions on mobility all added up to the spike of prices on crops.

African Swine fever outbreak

Another factor impacting the emerging food crisis in China is the failure to rebuild last year’s loss of pigs due to the infection. Chinese porcine farms were hit by the African swine fever outbreak that infected and killed a large number of pigs (40% of total Chinese pigs’ population), decreasing the supply but increasing the prices on pork in 2019. According to China’s National Bureau of Statistics, pork prices were 52.6% higher in August this year than the year before, while corn prices – the main porcine fodder – increased by 20% compared to last year. Chinese farmers failed to improve the situation in 2020 due to severe flooding. The increased amount of precipitation caused considerable losses of corn and thus the inability to feed pigs. China began to import crops from abroad – particularly, corn from the US. As the United States Department of Agriculture (USDA) stated, China had been importing 195,000 more tonnes of American corn than the year before.

Shuttered diplomatic relations between China and Western states

Some experts claim that Chinese diplomatic relations with such Western countries as Australia, the US and Canada shattered due to the fire of four ballistic missiles on the Indian border on August, 26. These states are China’s major food exporters. If their diplomatic relations with Beijing worsen, then the trade has a high chance of being negatively affected as well. In other words, Chinese imports of crops have the risk of becoming more expensive, meaning that the prices of pork and other goods might rise even more.

Severe flooding and drought

Finally, worsened weather conditions – some parts of China experienced drought, others were hit by flooding – led to a decrease in crops and a significant increase in food prices. Southern, Central and Eastern China underwent a period of heavy rain and the worst flooding in the last hundred years. Excessively high water levels in major Chinese rivers, including the Yangtze River, resulted in the evacuation of 15 million people in July 2020. Moreover, the flooding destroyed 13 million acres of agricultural land, which is estimated to cost at least $29 billion of economic damage. In the meantime Northern (Xinjiang province) and Southwest (Yunnan province) China have gone through a period of severe drought. In April 2020 nearly 1.5 million people in Yunnan province were caught in an emergency situation: shortages of drinking water, damage of hundreds of hectares of crops and livestock. Consequently, the supply of many agricultural goods and pork decreased, which spiked the prices on these goods.

Chinese long-term prospects toward food security

To conclude, immobility, African swine flu, worsened weather and security conditions led to the growing food shortages and increasing food prices in China. This being said, the Chinese government has been working on that problem. It has taken special measures to ensure sufficience of agricultural goods by investing in various disaster relief funds for different crops, particularly rice and wheat. For example, Chinese authorities allocated 1.4 billion yuan to save the agricultural harvest in Hubei province. Due to the substantial loss of agricultural products, China has also increased its imports. General Administration of Customs reported that China’s grain imports rose by 22.7% in July 2020 compared to the previous year. Meanwhile, the Chinese leader took a gentle approach to solve this problem. He did not announce the issues related to the insufficient number of crops; instead, he adopted a program for encouraging people to be more frugal with their eating habits. The Chinese Academy of Social Sciences followed the same path as it denied anticipation of a food crisis in the short-term perspective, yet warned about possible food shortfalls by 2025 if no agricultural reforms take place. As of now, China is not on the break of a food crisis; however, its shuttered prospects for long-term food sustainability are subject to dangerous repercussions.

From our partner RIAC

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China and Mongolia: A Comprehensive and Never-Ending Strategic Partnership

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Mongolia is an exceptional country when it comes to Eurasian geopolitics, linking China with Russia, two great countries in terms of military and economic capabilities, geographical area and population. In June 2016, the China-Mongolia-Russia Economic Corridor (CMREC) was announced in order to consolidate friendly relations and promote economic exchanges for the success of the Belt and Road Initiative. Many reports indicate the great position of Mongolia on the Chinese economic map as a pillar of the modern Chinese initiative. Mongolia is a major economic partner of China, and the Chinese administration aspires to forge permanent relations of cooperation and coordination with Mongolia by virtue of its common geography and strategic location, in order to open up through it to Russia and other Mongolia is a key economic partner of China, and the Chinese administration aspires to forge permanent relations of cooperation and coordination with Mongolia by virtue of its common geography and strategic location, in order to open up through it to Russia and other international partners.

Mongolia is rich in natural resources, for example the mining industry provided up to 30% of GDP and almost 90% of exports, but its economy is not as developed compared to China. Some economic reports indicate the great economic benefit to Mongolia from the China-Mongolia-Russia Economic Corridor. Mongolia is expected to witness unparalleled economic growth in terms of international economic cooperation, which will positively affect the national economy. The Mongolian economy depends heavily on China’s investment; data of the two largest ports in Inner Mongolia Autonomous Region in northern China indicates enormous economic benefits. In the chart below, the continued economic progress achieved in Inner Mongolia is shown. In addition, rail trade increased by 16 percent year-on-year to 11.2 million tons in 2017. In the same year, 570 trips were made on the China-Europe railways passing through Ernhot (a county-level city of the XilinGol League, in Inner Mongolia Autonomous Region, located in the Gobi Desert along the Sino-Mongolian border, across from the Mongolian town of Zamyn-Üüd).

The Belt and Road Initiative aims for mutual profit, cooperation and peaceful communication. China shares an ancient cultural history with Mongolia, long common borders, and economic cooperation that has never stopped. The strategic geographic location of Mongolia makes it a priority for China on the new Silk Road, in addition to the richness of natural resources and livestock that China needs.

The Mongolians are a horse-loving people, a country known for its large number of horses. Mongols without horses are like birds without wings. Despite globalization and the great economic progress in the neighbor (China), as well as the cold weather and difficult geography, the Mongolians did not abandon their traditions and the Mongolian way of life still exists today. In Mongolia there are herders of horses, camels and cattle to benefit from milk, meat, wool, etc. During the pandemic in China, for example, President Battulga set up what is known as “Sheep Diplomacy” where Mongolian President donated 30,000 sheep to China. This initiative indicates the Mongolians’ positive intentions towards the Chinese and the desire to open up more. In this context, I would like to point out that China is a big importer of meat and the Chinese demand for meat is constantly increasing, as shown in the chart below. Here is a great opportunity for Mongolia to increase its exports of meat to the Chinese market.

The reading of Mongolian history indicates that this country has passed through periods of prosperity. Mongolia may be a good example of power and rule, as its borders extended to many countries during the rule of Genghis Khan (1162-1227), the man whom the Mongolians consider their historical leader and has turned into a hero and a national symbol. The Mongolians did not abandon their land despite the cold weather and difficult geography, indicating that they are a deeply rooted people with land. Mongolia, with its vast territories and few people, has turned into a meeting place for Russia and China, and a strategic center for Chinese economic expansion. Therefore, it is impossible for the Chinese administration to abandon the partnership with Mongolia.

The Mongolian economy is heavily dependent on livestock, and the number of pastures has increased significantly since the Soviet era because of the transfer of ownership to the people. However, the government is still not able to provide all services to citizens “the government has failed to promote education and health care and veterinary care in pastoral communities, so there is no longer any incentive to stay in rural areas” said Sarol Khuadu, an official at the Institute for Environmental Research in the Mongolian capital. The policy, which no longer places much emphasis on the countryside, has led to the transfer of large numbers of citizens to the capital and to engage in the world of money and business.

Unfortunately, the Mongolian government is not working seriously to support citizens in remote areas. The conditions of life are not good and the loans granted are high interest, in addition to the weather that adversely affects their businesses. In order to help the poor and rural people, in cooperation with national governments, humanitarian, development and scientific partners, FAO has developed an early warning approach by monitoring risk information systems and turning warnings into proactive actions. International organizations contribute to permanent humanitarian and social assistance in Mongolia.

Mongolia’s strategic policy through the “Mongolia Steppe Road Program 蒙古国“草原之路” is largely in line with the belt and road initiative, which is a road connecting Mongolia, China and Russia. Consequently, Mongolia, a country that mainly depends on the agricultural sector, will be a center for economic communication between China and Russia, and thus will witness a great economic development. The Steppe Road Program aims to boost Mongolia’s economic standing and create an advanced network of infrastructure for communication with China and Russia and build an oil and gas pipeline. In 2014, during his historic visit, Chinese President Xi Jinping raised the level of relations between the two countries to “Comprehensive Strategic Partnership Relations”. Since then, bilateral cooperation has begun to move faster.

China has never abandoned Mongolia; it is a country of advanced strategic location as a bridge between Asia and Europe, in addition to the important agricultural sector in Mongolia which benefits China greatly, not to forget to mention the China-Mongolia-Russia Economic Corridor which has become an important part of the belt and road initiative and a key component of Sino-Russian cooperation.

The relationship between China and Mongolia today is an ideal example of the bilateral relationship between two neighboring countries. Cultural, economic, political and tourism communication is in continuous progress between the Chinese and Mongolians, and the Belt and Road Initiative will push this communication forward. The Chinese aspire to increase free trade areas and economic connectivity through a developed infrastructure network.

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Chinese Smart Power

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China is a unique country as it holds a world with Chinese Characteristics. China has rapidly transformed from an underdeveloped country to a key player in international politics.

Mao Zedong stated- “Political Power grows out of the barrel of the gun” reflects a perspective of hard power but Hooghe stated that the Chinese havechanged and do not even like the idea of smart power as it holdsa hard power component in it. President Hu Jintao in the 17th Party Congress favored smart power as he believed that China needs to keep a balance between hard power and soft power to avoid other countries create a coalition against China.

China becomes a difficult country to analyze as it holds a strong Confucian face-saving culture and does not like being criticized butits opponents continue to demonize it.

China understands the scene in international politics and prepares a centralized plan to acquire politicaland economic gains.

In 2005, China tried to gift two pandas to Taiwan which was refused by Taiwan as Taiwan consider this would violate the 1963 Convention on International Trade of Endangered Species of Wild Fauna and Flora.

China had argued that the transfer of Panda would remain an internal transfer within China even when the Taiwanese wanted to acquire two pandas that were appealing to its public theyfailed to acquire them. This could have helped China to gain the legitimacy of its one-China policy without provoking any actor.

The concept of soft power can be far more complex, as it could be a process to gain legal recognition without provoking a hostile population. The American production of Kung Fu Panda helped China in enhancing Panda Diplomacy.

Chinese more effectively controls Hollywood with Chinese investment and as American producers’ make an effort to be screened in Chinese theatre by being accepted in China’s quota for moving screening in Chinese theatre.

Tiktok which now is in a position of being banned in the United States indicates that the government is forced to take measurements due to the rising popularity of Chinese application in the American market.

China’s ban of the National Basketball Association (NBA) for a year also reflects China can force its opponents to maintain self-censorship for the sake of material incentives as mentioned by Ikenberry and Kupchan as a form of ‘external inducement’ leading to ‘policy change’ which would change the standard norm.

China has effectively used education as a medium to socialize with other countries which gets difficult to scrutinize by western powers.

The Former Prime Minister of Kazakhstan Karim Massimov and the President of EthiopiaMalatu Teshome had studied in China and later enhanced the relationship between their countries after they took offices. China’s 2008 defensewhite paper mentions4,000 military personnel from around 130 countries came to study in China for military education. China can combine educational diplomacy as a technique to enhance its military diplomacy and even use it to forge political allies.

Chinese Government operates Confucius Institutelike German use Goethe-Institut and France use Alliance Française to promote their languages.

The western world has worried as universities have started to impose regulations in favor of China after they operate Confucius Institute and even the students are likely to speak in a favorable tone to maintain a good image for the sake of acquiring a scholarship.

Dong and Chapman‘s research showed that 94.3% believed they had made the right choice coming to China, 91.6% believed that the scholarship would help in building a bilateral relationship between their countries, and 77.4% of people were satisfied studying in China.

China effectively funds various educational programs that educate smart or elite students from developing countries which generally hold a positive viewpoint of China as being emotionally connected to Chinese friends and tutors.

Chinese books such as Sun Tzu Art of War and Laozi’s book Dao De Jing have gained international attention which has allowed people to respect Chinese philosophy.

China is far more powerful than many scholars imagine and is more than just the factory of the world. China can use institutions such as cinematics, education, and various forms of arts in its favor.

China with heritages that include the Great Wall of China and Shaolin Temple has helped China to create a powerful image that is both precious and timeless.

China is one of the key three East Asian countries that has played a significant role in shaping international politics. The region is a strong contender in Olympics, have excellent cuisine,and are well recognized for their digital tools that are celebrated in around the world.

 ChinaJapanSouth Korea
PhysicalDiplomacyCuppings, Tai chiKarate, JudoTaekwondo
a) Olympics Medals608498337
GastrodiplomacyNoodles, DumplingsSushi, WasabiGimbap, Kimchi
Audio-visual diplomacyTiktokAnime, MangaK-pop
The Soft Power 30 (2019)Rank:27
Score:51.25
Rank:8
Score:75.71
Rank:19
Score:63.00
Economic Diplomacy   
a) Exports (2018)$2.59trillion Rank:1$713 billion Rank:4$617 billion Rank:5
b) BrandsXiaomi, AlibabaToyota, HondaSamsung,Hyundai
a) World Heritage Sites552314
b) Intangible Cultural Heritage402120
c) WEF, Travel & Tourism Competitive (2019)Rank: 13
Score:4.9
Rank: 4
Score:5.4
Rank: 16
Score:4.8
d) Revenue by Tourism (2018)$11 billion$45 billion$18.46 billion

The public generally does not have time to go into details of the report but would make a quick judgment by looking at the score and rank given by various organizations that would help build the national image.

The chart indicates China is surrounded by one of the most competitive neighborhoods which also contributesto building an environment that is boiling with soft and smart power.

China has an advantage in Travel and Tourism due to its massive as China has the highest World Heritage Site and Intangible Heritage List while South Korea and Japan are making more revenue through tourism.

China is also the world’s largest exporter and sits beside other major exporting countries creating a hot belt of traders. The culture of competing in sports help China in building a competitive culture with its neighbors.

The presence of South Korea and Japan are significant as these two are also very important countries with Confucian values.

China intends to develop its soft power to use and buildi) national cohesion, ii) a stable and reliable economy, iii) a trustworthy state, and iv) an ancient but vibrant country.

Chinese gallery, clinics, and restaurants serve as a place for gathering and sharing their rich heritage. They could feel blessed with Chinese culture as well as feel strong being the world’s largest exporter. The Chinese dream creates this cohesive attitude and legitimacy of the regime.

Stability plays a key role in obtaining and holding Foreign Direct Investment. Stability is also key to the continuity of growth and helps in generating wealth to purchase and maintain security instruments.

Trustworthiness has been extremely difficult for China with its historic secretive attitude specifically in case of its habit of not disclosing international health threats as quickly as possible as they feel threatened by mass panic and face-saving culture.

 In 2013 President Xi Jinping remarked that the Chinese Dream would benefit other countries and their peopleby connecting the idea of an ancient country with modern technology.

The amount of criticism China receives projects the fear of foreign countries associated with the Thucydides trap. However, China still needs to modernize itself to be accepted as an ancient but vibrant country.It still needs to learn from its mistakes to be seen as a trustworthy and stable country to build its smart power to its full potential.

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