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Contemporary China: Polit-economic, Socio-cultural Challenges & Prospects

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Amid the ongoing coronavirus pandemic, all eyes, yet again, are on China, which many expect, equally enthusiastically and alarmingly, to become the world’s largest economy over the next few decades. The economic growth, though, does not automatically root out all sources of disparity even if it shrinks the overall scope of inequality.

Being almost exactly in the middle on the Gini line between total inequality and full equality at 46.7, mainland Chinese wealth distribution is now more unequal than it has ever been in the nation’s history. This figure is even more startling considering the fact that the country had a very low inequality level in the 1980s, so the Chinese population is fully aware of the problem and its severity. Historically, the peaks of economic disparity have coincided with major national events, especially the Great Famine in the late 1950s, the Cultural Revolution in the late 1960s and early 1970s, and the global integration that began in the late 1990s. Although the highly centralized and deeply bureaucratic nature of the Chinese government allows for the efficient implementation of inequality solutions, official poverty-reducing policies at such peaks had minimal effects.

In contemporary China, the state of inequality is essentially determined by regional differences and the countrywide urban-rural divide. Kanbur and Zhang [1] claim that the share of heavy industry in gross output values, the degree of decentralization, and the degree of openness are three main driving forces of inequality across regions. The urban-rural divide, on the other hand, is sustained by top-down regulations that affect basic human rights, such as health, housing, and mobility. One of such regulations is hukou, a system of household registration linked to social programs provided by the central government, which assigns social benefits based on the agricultural and non-agricultural residency status. As such, hukou has been a structural source of inequality since the establishment of the People’s Republic of China in 1949, as urban residents receive benefits, ranging from retirement pensions to healthcare, that are unavailable to rural residents. Chan [2] asserts that to reduce rural poverty is to end hukou, which directly impedes with rural-to-urban migration, the main means of escaping poverty in rural areas. The internal migration, including the interprovincial one from the thinly populated and deprived Western regions to the densely populated and affluent East Coast, has intensely accelerated since the 1980s. Referred to as the ‘floating population,’ rural migrants tend to circulate in-between cities rather than settle, making them in a way statistically invisible. Yet their presence in the urban landscape critically influences workforce and housing markets. Given the unparalleled magnitude of the Chinese population, housing registration, obviously, needs to operate for practical purposes, but not in its current caste-system resembling form.

Furthermore, the government has to instill lawful procedures for assimilating rural emigrants, who, alongside their children, confront serious predicaments in the multidimensional process of urban societal integration. Having crossed 250 million by 2015, the Chinese migrant population is the largest in the world; however, due to official restrictions, especially hukou, the interprovincial migration in China is even more administratively challenging than the state-to-state migration in the United States. These restrictions equally impact children, both who stay behind in rural areas, the so called ‘left-behind children,’ and those who with their parents move to or are born in cities. Liang [3] suggests that further research on the internal migration be devoted to the mobility of minority groups, such as Muslims, and finding out if the importance of hukou is declining for the new generation of migrant workers. Even if this were true, the government is not free from providing additional ameliorating measures for migrants, for example, a cheaper, less complicated way of making remittances to countryside family members and other relatives and food stamps until the job acquisition.

Big companies, in turn, should offer educational enrichment programs to their urban and rural employees to meet the international employment competition. Despite its unchallenged advantage in sheer numbers, the Chinese workforce is relatively weak in terms of education levels, which in long run can create a human capital crisis in mainland China, as the upper secondary school attainment is a crucial ingredient for the country’s continued economic growth. Khor and others [4] estimate that only less than 25% of the Chinese labor force have completed secondary education, a significantly lower figure than around 55% average across all G20 countries. The Ministry of Education pompously inflates official figures. Considering that China is gradually transitioning from an upper middle-income state to a developed economy and that this transition means supplanting low-wage, labor-intensive manufacturing with high-wage, high value-added industries that require knowledgeable cadres, the Ministry of Education is obliged to bring education programs and workplace demands in unison. Lamentably, the government routinely overlooks school attainment levels of its citizens, because service and manufacturing industries, the titans of national employment, hire staff based on discipline indicators and occupational skillsets rather than school performance.

The guiding principle of reforms must be making the Chinese education system more inclusive. Wu and Zhang [5] claim that recent expansions in this field have benefited urban women more than any other social group and that despite an overall increase in educational equality, the urban-rural contrast is ever stark; however, this is in line with the worldwide trend, which shows that educational inequality as a whole is declining with the continued economic growth, but the urban-rural divide permeates in face of modernization. To reduce this divide, the government must rescind educational policies that favor city students, starting with the elimination of standardized testing as an upper secondary school entrance requirement, which highly favors urban over rural students. Having completed superior middle schools and resources to private tutoring, urban students disproportionately beat their rural counterparts out, keeping the cycle of urban-rural divide in education spinning.

Beyond the education system, the government has to transform workplace structures, foremost by substituting danwei, a work unit with communist roots that in the form of ‘organized dependency’ maintains the state administrative hierarchy, with non-state labor unions or guilds. Xie, Lai, and Wu [6] assert that even if some of its original functions, such as housing and health subsidies, have declined with the rise of private sector, danwei continues to play a central role in the social stratification and occupation mobility in post-reform China, influencing earnings (salaries are low in mainland China) more than benefits — a reverse was true in pre-reform China. Not as interested in maximizing occupational profits as in maintaining ties with the ruling authority, danwei stratifies the contemporary Chinese society because of its more equal nature than the market justifies. That is why independent labor unions, which can provide not only similar benefits, such as a health coverage, but also guarantee adequate wages that the current work unit system compromises for the sake of social advantages, ought to overtake danwei.

Another factor hampering the national progress is the Great Firewall, the combination of legislative actions and technologies enforced by the government to regulate the Internet domestically. King, Pan, and Roberts [7] emphasize that as opposed to the popular assumption that any government-critical content is taken down, the Internet censors are actually oriented to the content with a collective action potential, notwithstanding with its underlying attitude towards the government. Yet history, in particular the Great Famine, has shown that the Chinese people, in accordance with the Confucian values, tend to blame not the ruling authority, but local officials for their problems. This, coupled with the fact that a common Chinese online user self-censors, demonstrates that the Internet censorship is an excessive administrative measure. This measure deters the info-communicational advancement of the mainland Chinese population, which lacks a unified intention for the regime change.

Abolishing hukou, danwei, and the Great Firewall schemes, as well as reforming the education system, requires a coordinated national effort between the central government and provincial leaders. The majority of regional officials, though, behave not as much in response to the countrywide market-preserving federalism as within the multidivisional-form structure of the Chinese economic sector. As the political status of a Chinese province directly correlates to its economic power, the post-Mao China witnessed political conformity being largely supplanted by the economic performance as a chief competence-related indicator. Li and Zhou [8] confirm that the local GDP growth rate is directly proportional to the official’s turnover, which is nonlinear due to the effect of performance during tenure as a whole over a single year being more important. Besides promotion as an instrument of personnel control, the ruling government exercises termination, transition, and retirement, for example, successful Chinese officials, whose merits are almost exclusively measured in financial terms, receive honorary, albeit powerless, titles before their official retirements.

The economic performance endures as an effective political tool as long as the Chinese economy continues to grow; however, in light of 6% economic growth rate as the new normal and the ongoing trade war with the United States, securing successful operations of local officials principally through economic incentives seems myopic from the central government. This needs to complement its existing economic leverage in governing localities with more stable social factors, especially given that governors are inclined to artificially boosting financial figures of their provinces. This not only results in distorted reports on living conditions of people, but also in the national prevalence of the economic growth at all costs, which only exacerbates intra-regional inequalities in terms of education and employment prospects. Xie and Zhou [9] note that despite being comparable in both the total area and income distributions as well as the subordination of state/provincial officials to the federal/central government, USA, where a family structure combined with race and ethnicity significantly influences lifetime earnings of every person, has had a smaller rate increase in economic inequality over the last decade than PRC.

Evidently, the Chinese economy is neither laissez-faire nor Leninist, but rather a unique case. Oi [10] claims that the economic growth of China is embedded in the system in which local officials, acting as CEOs, treat local enterprises under administrative control as parts of a larger corporate whole. Accordingly, the national economic growth rests largely on the rural industry, which has experienced an upsurge following a few amendments to the Maoist system, especially de-collectivization of agricultural production and the fiscal reform that allows for the autonomy over any local surplus. To strengthen corporatism in their provinces, officials pursue one of three methods: misappropriating marked funds coming to local farmers from the central government; licensing non-bank credit institutions that avoid central regulations — a more legal way; and granting small loans from bureau funds. Having been long ignored by the central government because of its quintessential role in the Chinese economic expansion, local state corporatism is directly responsible for the accumulation of debts worth $5.8 trillion. This issue is especially problematic in light of the Chinese market leaning more and more towards privatization — a process catapulting a new type of corporate elite into prominence in the midst of this managerial revolution.

Whether the new corporate elite will push the country to approach the capitalist economy model established in free states is a critical question. Walder [11] notes that both economic assets and ties to the central government of this new elite are equivocal, so each sector — state-owned, privatized, transactional, and entrepreneurial — demands to be separately analyzed. Corporate networks mapped via interfirm webs can also point to China’s course moving towards or away from being a state where wealth and political power are synonymous. Arguably, the new corporate elite will maintain close political ties with the ruling government. Alternatively, it can act as a political opposition by challenging the status quo whenever appropriate. The ruling party is absolutely creditable to a degree for the country’s success, but being completely unrestrained, it will fail to perceive overstretched borders of its regulations, including the Great Firewall, as the established framework is self-damagingly hostile to change. The new corporate elite has a potential to become a powerful intermediate agent safeguarding the consolidation of the social contract between the Chinese people and state, and it should not miss this exciting chance. Still, where there is the elite, a clash with interests of people is inevitable, and China has yet to match its powerful economic status with a benevolent state image internationally.

Considering Chinese citizens’ rising awareness of universal human rights violations in the country, especially with regard to family and religious domains, both of which an almost uninterrupted nature of the Chinese civilization has substantially burdened by its institutional emphasis on the former and a lack of such emphasis on the latter, the ruling party can no longer afford to ignore its obvious shortcomings in dealing with ethno-linguistic and religious minorities and novel family structures emerging out of the tension between persisting cultural customs and changing social behaviors in the contemporary Chinese society. Raymo and others [12] claim that the second demographic transition, which is characterized by a variety of living arrangements and a disconnection between marriage and procreation, is more conspicuous in the East than in the West. Traditionally, East Asian families are patriarchal, patrimonial, patrilineal, and patrilocal, but the global rise of the women’s socioeconomic status has undermined this organization.

Although women in mainland China have advanced their social status over the last decade, they continue to be disadvantaged in terms of household labor, education, salaries, and leadership positions due to gender bias. For example, parents disproportionately put educational resources in sons at the expense of daughters, as they expect the former to materially support them in their old age and the latter to be taken care of by husbands’ families. Men, on the other hand, face an extreme competition not only in employment, but also in the marriage market. Xie [13] notes that Chinese men find it increasingly difficult to marry partly because of the prevailing social hypergamy exacerbated by present economic pressures. In addition, men massively outnumber women as a result of a higher cultural and economic value assigned to them. Of course, a growing number of single, unemployed men has a socially disruptive potential, but being an authoritarian state with Confucian values, China would be resistant to the gang culture that has eroded Latin America.

Without taking demographic changes into account, the government cannot adequately address such issues as population aging, labor force shortages, public health care, family planning, and retirement arrangements. The rapid pace at which China has been modernizing since its global integration began in the late 90s only intensifies this challenge. Peng [14] states that as the age of first marriage has gone up to twenty-five, the birth rate has dwindled (Japan has the lowest in the Far East), more individuals prefer not to marry (childbearing outside wedlock is still very rare), and more couples choose to cohabitate. China is achieving its second demographic transition in a relatively compressed period of time.

It is ambiguous how official Family Planning Commission programs have influenced this transition.` For example, the One-Child Policy, which the government ended after 35 years, might not have caused a supposed fertility decline in the country given that Chinese families have been naturally leaning towards having two or less children since 1990s. Family policies in general apply differently to urban and rural areas. For instance, while the urban implementation of pensions has lifted an adult’s traditional economic duty to provide for elderly parents, transforming the nature of monetary support from financial to symbolic, this duty remains in force in countryside. Xie and Zhu [15] emphasize that in cities compared to married sons married daughters give more money to their parents contrary to custom. This can be explained by the fact that over the last decade, women have outranked men in educational attainment, bolstering their job income.

Beyond adjusting its family policies to emerging social norms, the government has to offer an integration path for ostracized ethno-linguistic and religious groups. Gladney [16] claims that China, which is home to the largest Muslim minority in East Asia (around 20 million people), has so far failed in incorporating Muslims, whose self-preservation is at risk, in the national fabric in a way that is neither full accommodation nor complete separatism. Obviously, Islam and traditional Chinese beliefs have distinct worldviews. For example, Muslim Chinese evaluate development levels of majority-Muslim countries far more favorably than the Han Chinese do [17], but their co-existence over several centuries means that common ground can be found. Moreover, China’s dependence on the Middle East as an oil supplier and an export market mandates for Muslims’ acceptance in the Chinese ‘leviathan.’

Like religious ones, ethno-linguistic minorities bear discrimination in China. Wu and He [18] state that despite of the regional distribution of ethnic minorities being relatively stable from 1982 to 2005, the Han-minority disparity in education and employment amplified in the same period. After it had started identifying all 55 minorities (around 10% of the national population), which are geographically isolated not just from the Han Chinese but each other, the communist party has taken a few steps to stimulate their socioeconomic mobility, such as granting college admission bonuses. However, the country’s forceful economic transition has widened the gap instead of narrowing it, as the profit-driven private sector values economic efficiency over social equality. That is why the government must pass anti-discrimination laws that will subdue institutional prejudice against ethno-linguistic and religious minorities.

Finally, if the Chinese government makes a conscious decision to contain ever-expanding state machine or apparatus from permeating every aspect of citizens’ daily lives, allowing the society to ‘breath normally,’ it will be able to competently respond to polit-economic and socio-cultural challenges that contemporary China is confronting, such as a slower economic growth rate and elevated ethnic tensions.

References:

[1]Kanbur, R. and Zhang, X. 2005. “Fifty Years of Regional Inequality in China: A Journey through Central Planning, Reform, and Openness.” Review of Development Economics 9(1), pp. 87-106.

[2]Chan, K. W. 2013. “China: Internal Migration.” The Encyclopedia of Global Human Migration.

[3]Liang, Z. 2016. “China’s Great Migration and the Prospects of a More Integrated Society.” Annual Review of Sociology 42, pp. 451-471.

[4]Khor, N., Pang, L., Liu, C., Chang, F., Mo, D., Loyalka, P., and Rozelle, S. 2016. “China’s Looming Human Capital Crisis: Upper Secondary Educational Attainment Rates and the Middle-income Trap.” The China Quarterly 228, pp. 905-926.

[5]Wu, X. and Zhang, Z. 2010. “Changes in Educational Inequality in China, 1990–2005: Evidence from the Population Census Data.” Research in Sociology of Education 17, pp. 123-152.

[6]Xie, Y., Lai, Q., and Wu, X. 2009. “Danwei and Social Inequality in Contemporary Urban China.” Research in the Sociology of Work 19, pp. 283-306.

[7]King, G., Pan, J., and Roberts, M.E. 2013. “How Censorship in China Allows Government Criticism but Silences Collective Expression.” American Political Science Review 107(02), pp. 326-343.

[8]Li, H. and Zhou, L.A. 2005. “Political Turnover and Economic Performance: The Incentive Role of Personnel Control in China.” Journal of Public Economics 89(9), pp.1743-1762.

[9]Xie, Y. and Zhou, X. 2014. “Income Inequality in Today’s China.” Proceedings of the National Academy of Sciences 111(19), pp. 6928-6933.

[10]Oi, Jean C. 1995. “The Role of the Local State in China’s Transitional Economy.” The China Quarterly 144, pp. 1132-1149.

[11]Walder, A. G. 2011. “From Control to Ownership: China’s Managerial Revolution.” Management and Organization Review 7(1), pp. 19-38.

[12]Raymo, J.M., Park, H., Xie, Y. and Yeung, W.J.J. 2015. “Marriage and Family in East Asia: Continuity and Change.” Annual Review of Sociology 41, pp. 471-492.

[13]Xie, Y. 2014. “Gender and Family” in The Oxford Companion to the Economics of China, pp. 495-501. Oxford, UK: Oxford University Press.

[14]Peng, X. 2011. “China’s Demographic History and Future Challenges.” Science 333(6042), pp. 581-587.

[15]Xie, Y. and Zhu, H. 2009. “Do Sons or Daughters Give More Money to Parents in Urban China?” Journal of Marriage and Family 71, pp. 174-186.

[16]Gladney, D.C. 2003. “Islam in China: Accommodation or Separatism?” The China Quarterly 174, pp. 451-467.

[17]Lai, Q. and Mu, Z. 2016. “Universal, yet Local: The Religious Factor in Chinese Muslims’ Perception of World Developmental Hierarchy.” Chinese Journal of Sociology 2(4), pp. 524-546.

[18]Wu, X. and Gloria He. 2016. “Changing Ethnic Stratification in Contemporary China.” Journal of Contemporary China 25(102), pp. 938-954.

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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.

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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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