China’s development strategy and its economic diplomacy

Given the uncertainties in the world nowadays, it is necessary to grasp the reasons why China has highlighted the solidarity and cooperation for development amid the challenges now and ahead. The Boao Forum which was held during March 28-31 is seen as the vintage point of China’s development strategy and economic diplomacy. As Chinese Premier Li Qiang stated that amid the uncertainties all over the world, China’s certainty is a mainstay that safeguards world peace and development now and future.

Over the past decades, the world has witnessed the seminal role China has played in driving economic recovery. However, China is still the largest developing country in terms of the GDP per capita and relatively lower technology capacity even though it is the second largest economy of the world. Since China aims to become one of the most advanced country of the world by the mid-21st century, the leadership in Beijing is aware that the following decade is the key to China’s national rejuvenation. Accordingly, three key steps must be taken as follows. First, the potential of China as a global power will be only realized if and when it acquires a similar industrial capacity like the former Soviet Union and the United States in terms of the scale of industrialization, the weight of resources and the core technology innovation independently. Second, China needs to maintain the largest trading partners of the world and the powerhouse of manufactures while it is deeply involved into the global industrial and supply chains from the markets and raw materials. Given this, China is ready to assure innovation-driven development by adhering to reform and opening up to the world, as China reiterated at the opening ceremony of the Boao Forum for Asia Annual Conference. Third, as Hans Morgenthau argued that of all the factors that make for the power of a nation, the most significant, however, unstable, is the quality of diplomacy, which combines those differing factors into an integrated whole, gives them direction and weight, and awakens their slumbering potentialities by giving them the breath of actual power. The Boao Forum in 2023 acted as a show of development strategy and economic diplomacy of China.

At the turn of the 21st century, China had become one of the principal powers like the EU, Russia and Japan. Whatever disagreements then there may have been among those major players, they all agreed on the general desirability of continued economic integration in a global way. Yet, two grave concerns arise then. First, the unchallenged American military superiority are unacceptable by the majority of the Global South and Russia and China particularly. As a result, neither Russia nor China has been willing to open its borders fully to international trade, finance and investment to the U.S.-dominated institutions like the G-7 and the IMF. Second, the U.S. invasion of Iraq marked a movement away from multilateralism on the part of American foreign policy while Beijing and Moscow are the strongest defenders of the post-Cold War multipolar world order based on the central role of the United Nations.

However, in terms of the geopolitics, either the rise of China or the resurgence of Russia are not compatible with the primacy of the United States. Both Beijing and Moscow are aware of realpolitik where it was the statesman’s duty to evaluate ideas as forces in relation to all the other forces relevant to making a decision in service of their core interests and common security concerns. On the part of China, there are no surprises in terms of Chinese policy and reforms since the new leadership has vowed to make sure the 5% growth rebound for 2023 and a determination to broaden China’s push for ”opening up” and global participation. It is noteworthy that starting with the Belt and Road initiative put forward by President Xi ten years ago, China’s efforts to remake global governance have taken on critical strategic importance that is highlighted by Xi’s “three GSI’s” such as Global Security Initiative, Global Development Initiative and Global Civilization Initiative.

As discussed previously, the U.S. and its core allies have regarded China as the primary adversary and are intent on closing off the rise of China where there are signs of both danger and opportunity in the air, consistent with the dual meaning of the Mandarin word for crisis (wéijī), referring to China’s own growth challenges, mounting recessionary risks to a crisis-prone, fragmented global economy, and prospect of deepening conflict with the US. Yet opportunity is an increasingly popular theme discussed in China, such as the growing SVB crisis in the U.S. and beyond plays right into the hands of the muscular, confident mindsets globally.

In the meantime, China opines the necessity of seeking strategic partners around the world. First, the majority of the Global South are the permanent friendly countries and partners of China as they have opposed any sort of the prior unilateralism headed by the U.S. while standing for the multipolar world order based on the central authority of the United Nations. Meanwhile, China, a champion of multilateralism, is dedicated to upholding the multilateral trading regime and building partnerships around the world. Second, the Global South possess the vastly diverse raw materials and potential huge markets. Third, diplomatically China and the Global South share the vision of peace, stability and sustainable development.

There is no question that in the world of realpolitik, China is sure to promote strategic partnership with Russia which is a major power of the world with the largest nuclear capacity. Its vast energy resources and traditional industries are urgently needed by China for its sustainable development. With regards to the uncertain world politics, China and Russia recently issued a joint statement of Pre-2030 Development Plan on priorities in bilateral economic cooperation. It reads that the two countries agreed to realize long-term independent development, promote high-quality development of their economic and trade cooperation and significantly increase bilateral trade volume by 2030. It is noted that China and Russia are committed to improve financial services and expand the proportion of local currency settlement in bilateral trade, investment, loans and other economic and trade transactions to meet market demand. In addition, Russia strives to improve facilities of an international transport corridor between Europe and western China and promote the development of the Russia-Mongolia-China economic corridor. Due to the vexing geostrategic circumstances, China and Russia have vowed to promote high-quality cooperation in technology and innovation to ensure high-level development of technology in the two countries, not to mention the core areas such as agriculture and food security.

Now it comes to the conclusion that China has set its central task as advancing itself into a global power in all respects. To that end, it is committed to achieving the mandate mission through peace, development and win-win, which will create a strong driving force for economic growth in Asia and the world at large. China will never seek modernization through war, colonization or plunder like the European powers in history and the U.S. nowadays. But, in the meantime, China, along with other countries of the world, continues resisting any form of “a new Cold War” such as the bloc confrontation, the abuse of unilateral sanctions and long-arm jurisdiction which are the traits of the obsolete power politics.

Yan Jiongjie (Kalyani)
Yan Jiongjie (Kalyani)
Research assistant of School of International and Public Affairs, Jilin University