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11. The Chinese Debate on Economic Reform

Author:
Arran Hope
Publication Date:
09-2023
Content Type:
Journal Article
Journal:
China Brief
Institution:
The Jamestown Foundation
Abstract:
A steady drumbeat of ominous data and troubling commentary on the state of China’s economy has punctuated the summer months. Reports from the commentariat in the anglosphere have provided diagnostic analysis and detailed potential policy solutions that the Chinese government might pursue. However, China’s central decision makers in the Politburo or in the National Development and Reform Commission (NDRC), are more likely to take their cues from internal advisors and domestic experts within the PRC than from those outside. As such, one fruitful exercise is to take the temperature of voices within the system to determine the extent to which their perceptions align or diverge from those in the West, and to ascertain which views carry weight with the final arbiters of economic policy in Beijing. By doing so, analysts outside of China may better comprehend the future (mis)steps that China will take as it struggles to achieve its aim of “basically realizing socialist modernization.” In July, the Chinese government held several meetings and released documents pertaining the economy. On July 24 the Politburo met to discuss the economy as it usually does this time of year. But on the same day, a 17-point plan was issued by the NDRC, following on from a 31-point plan co-issued by the State Council and the Central Committee ten days prior. These send a clear message about the concern in government over China’s straitened circumstances. Indeed, just this week, the NDRC announced a new “private economy development bureau” to further support private industry (NDRC, September 4). The assessment of the situation is put bluntly in the Politburo readout: “the current economic system is facing new challenges… insufficient domestic demand, difficulties in some enterprise’s operations, multiple risks in key areas, and a complex and severe external environment.”
Topic:
Development, Economics, and Reform
Political Geography:
China and Asia

12. China’s Role in the Modernization of Malawi’s Agriculture Sector

Author:
Raphael Mweninguwe
Publication Date:
06-2023
Content Type:
Journal Article
Journal:
China Brief
Institution:
The Jamestown Foundation
Abstract:
China has assumed a key role in the modernization of Malawi’s agriculture sector, which has made recent progress in enabling smallholder farmers to produce higher crop yields. The introduction of agricultural technologies used in vegetable, fruit, maize and rice production through the China Aid Project for Agricultural Technical Cooperation has not only created employment opportunities for the local population, but has also strengthened the economic situation of small farmers in Malawi. In February, at the opening of a training for senior agricultural workers, the Embassy of the People’s Republic of China (PRC) in Malawi pledged increased support for the development of the country’s agricultural sector “under the framework of the Belt and Road Initiative, the Forum on China-Africa Cooperation (FOCAC), and the Global Development Initiative” (Xinhua, February 17). The creation of the FOCAC coincided with the new strategy of the Chinese government in the 2000s, when Beijing sought to utilize development assistance, particularly in the agricultural sector, in order to strengthen overall Sino-African relations. At that time, many African countries were desperately looking for technical assistance in order to achieve a high level of agricultural growth and to solve their persistent food insecurity problems. [1] Malawi is one of the countries on the continent that has suffered longtime food insecurity, where PRC agricultural aid and training has benefited many smallholder farmers, who have expressed their appreciation for the assistance rendered. While some farmers and extension workers express satisfaction with China’s support for Malawi’s agricultural modernization efforts, others are worried about the impacts of climate change, which threaten the full adoption of the technologies offered by the PRC. Already an estimated 3.8 million people, about 20 percent of the country’s population, are facing a food crisis due to drought and floods that hit the country during the last growing season (World Bank, April 7). But China’s technologies aim to mitigate climate change impacts through simple, low-cost, and innovative farming technologies, such as furrow and bucket irrigation.
Topic:
Agriculture, Climate Change, Development, Belt and Road Initiative (BRI), and Modernization
Political Geography:
Africa, China, and Malawi

13. Can the Belt and Road Initiative Succeed in Afghanistan?

Author:
Sudha Ramachandran
Publication Date:
05-2023
Content Type:
Journal Article
Journal:
China Brief
Institution:
The Jamestown Foundation
Abstract:
At a trilateral meeting in Islamabad on May 9, the foreign ministers of China, Pakistan and Afghanistan agreed to extend the China-Pakistan Economic Corridor (CPEC) into Afghanistan and reaffirmed their support for multilateral infrastructure projects already underway, including the Central Asia-South Asia (CASA) power project and the Trans-Afghan Railways (People’s Republic of China Ministry of Foreign Affairs [FMPRC], May 9). Earlier on January 5, the Taliban regime signed an agreement with the Xinjiang Central Asia Petroleum and Gas Company (CAPEIC), a subsidiary of the state-owned China National Petroleum Company (CNPC), for the extraction of oil from the Amu Darya basin, under which China will invest $150 million annually for three years and increase it thereafter to $540 million for the contract’s 25-year duration (Kabul Now, January 5). Then on April 13, Afghanistan’s Ministry of Mines and Petroleum announced that the Chinese company Gochin had expressed interest in investing $10 billion in Afghanistan’s lithium reserves (Kabul Now, April 13). Meanwhile, China is reported to be in talks with the Taliban regime over renegotiating the terms of a 2008 contract to mine copper from the Mes Aynak reserves in Logar province (The Print, June 8, 2022). The agreements, including plans to extend CPEC—a key leg of China’s Belt and Road Initiative (BRI)—into Afghanistan, are a significant development. The deal relating to oil extraction in the Amu Darya basin is the Taliban regime’s first major foreign investment deal. However, in the past, major Chinese projects have failed to take off. Will the recent deals remain in limbo as well? China’s growing role in Afghanistan faces formidable challenges.
Topic:
Foreign Policy, Development, Infrastructure, and Belt and Road Initiative (BRI)
Political Geography:
Afghanistan, China, and South Asia

14. Ten Years On, How is the Belt and Road Initiative Faring in Indonesia?

Author:
William Yuen Yee
Publication Date:
03-2023
Content Type:
Journal Article
Journal:
China Brief
Institution:
The Jamestown Foundation
Abstract:
“It is not merely talk, but it is about actually building something. From airports to railways, these are industries we can see and touch. This is exactly the sort of courage and real action the world needs right now.” So said Indonesian President Joko “Jokowi” Widodo about China’s Belt and Road Initiative (BRI) at the inaugural Belt and Road Forum for International Cooperation (BRF) in 2017 (BRF, May 14, 2017; Jakarta Globe, May 16, 2017). This year marks the tenth anniversary of this ambitious, globe-spanning infrastructure development project. Today, 151 countries and 32 international organizations have joined the initiative, which Foreign Minister Qin Gang recently described as a “global enterprise to build a belt of prosperity and a road to happiness” (Ministry of Foreign Affairs of the People’s Republic of China [PRC], January 20). A decade ago, Chinese President Xi Jinping launched the BRI with a series of speeches in Kazakhstan and Indonesia calling for a “Silk Road Economic Belt” and a “Maritime Silk Road,” respectively (Consulate General of the PRC in Toronto, September 7, 2013; China Daily, October 4, 2013). The following year, China announced the creation of a $40 billion Silk Road fund at the Asia-Pacific Economic Cooperation (APEC) summit in Beijing and a $20 billion Maritime Silk Road fund in Indonesia (China Daily, November 9, 2014). From the BRI’s inception, it has been clear that Southeast Asia and its largest economy— Indonesia—are intended to serve as a centerpiece of the megaproject (Global Times, November 16, 2022). Roughly two-thirds of all people of ethnic Chinese ancestry outside of China are in Southeast Asia. [1] The 142-kilometer (88 mile) Jakarta-Bandung high-speed railway (HSR) is one of the BRI’s flagship projects (China Brief, December 22, 2022). Indonesia also hosts nearly half of the eight overseas industrial parks that China has established across the Association of Southeast Asian Nations (ASEAN) member states: the China-Indonesia Economic and Trade Cooperation Zone, the China-Indonesia Morowali Industrial Park, and the China-Indonesia JuLong Agricultural Industry Cooperation Zone (China Development Institute, June 26, 2019). While Beijing has pulled back its overseas BRI lending—and Xi has exhibited some notable reticence toward hosting a third Belt and Road Forum—Indonesia challenges the broader narrative that the BRI is somehow fading away (Green Finance & Development Center, July 24, 2022). In the world’s fourth-most populous country, Chinese investment has continued apace, and both governments continue to champion the BRI’s ability to deliver “mutual benefit” and “win-win results.” Still, understanding Indonesia’s experience with the BRI requires closer examination of the history behind China-Indonesia infrastructure cooperation, major projects beyond the oft-discussed Jakarta-Bandung HSR and their impacts on the Indonesian public, and the extent of economic engagement between Jakarta and Beijing.
Topic:
Development, Infrastructure, Economy, and Belt and Road Initiative (BRI)
Political Geography:
China, Indonesia, Asia, and Southeast Asia

15. Social and Historical Investigation of China’s Ethnic Minorities: Based on Political Stability and National Unity

Author:
Bao Longyuan and Mei Jun
Publication Date:
07-2023
Content Type:
Journal Article
Journal:
Journal of Political Studies
Institution:
Department of Political Science, University of the Punjab
Abstract:
The social and historical investigation of China’s ethnic minorities was a major national political action in 50s-60s of the 20th Century, and it was of particular significance to the governance of the frontier, the maintenance of ethnic equality, and the long-term stability of China. In the era of underdeveloped information technology, the Communist Party of China (CPC) entered ethnic minorities areas, on the one hand, to understand the living conditions of ethnic minorities, and to facilitate the introduction of relevant supporting policies. On the other hand, the investigation process also publicized the CPC’s thought on governing the country, so that the people can more understand and trust the CPC, so as to promote national unity and political stability. Although this investigation has become a history, its significance, value and effect are still prominent for China’s political stability and national development today.Therefore, it is still of important practical significance to study the social and historical investigation of China’s ethnic minorities.
Topic:
Development, Minorities, Political stability, Ethnicity, and National Unity
Political Geography:
China and Asia

16. Reinventing Soft Power: The Strong Impact of China’s Soft Power “Shortcomings” on the Global South

Author:
Tanina Zappone
Publication Date:
07-2023
Content Type:
Working Paper
Institution:
Istituto Affari Internazionali
Abstract:
After being introduced into the Chinese academic debate in the 1990s, the notion of soft power has undergone such a process of “Sinicisation” that some scholars now wonder if the original concept has been gradually “reinvented” in China. Given worsening opinions about the PRC in the US and Europe over the last years, many analysts have stressed the weakness of China’s soft power, pointing to its state-centred approach and lack of an attractive set of values to be emulated as the main shortcomings. However, China’s growing influence in the Global South shows that these analyses have misevaluated the real goals and motivations of China’s soft power. The Russia-Ukraine war provides telling examples of the successful dynamics of China’s “defensive” or “negative” version of soft power and suggests it has significant impact in the least industrialised countries.
Topic:
Foreign Policy, Development, and Soft Power
Political Geography:
Russia, China, Ukraine, Asia, and Global South

17. China and the Global South: Many Initiatives, One Narrative

Author:
Marina Rudyak
Publication Date:
08-2023
Content Type:
Working Paper
Institution:
Istituto Affari Internazionali
Abstract:
Since its 2013 launch, the China-led Belt and Road Initiative (BRI) has stirred heated debates. Despite Beijing framing it as win-win cooperation, concerns mounted over BRI’s risks for involved countries, especially in the Global South. China’s narrative merely signals a search for an effective communication strategy and international discourse power, while its understanding of development remains constant. Developing countries play a crucial role in China’s pursuit of global status. Firstly, it positions itself as the advocate for developing nations, promoting “diverse paths to modernisation” and “true multilateralism”. Secondly, China aims to redefine major power by prioritising development and security over liberal democracy.
Topic:
Foreign Policy, Development, Infrastructure, Multilateralism, Belt and Road Initiative (BRI), and Modernization
Political Geography:
China, Asia, and Global South

18. Chinese Firms and Adherence to Global Environmental, Social and Governance (ESG) Standards in Developing Countries: Is there Potential to Create Common Ground?

Author:
Mike Morris
Publication Date:
01-2023
Content Type:
Working Paper
Institution:
German Institute of Development and Sustainability (IDOS)
Abstract:
This paper focuses on analysing how Chinese firms operate in Latin America, Asia and Africa in regard to ESG (environmental, social and governance) standards and sustainability issues. How do they respond to the increasing global value chain requirement to incorporate and maintain ESG standards? Is their space for an alignment between Western development cooperation ESG policies, frameworks, strategies and practices and Chinese political and economic stakeholders in the developing world? The paper uses a variety of case studies covering Chinese firms (disaggregated into SOEs (state-owned enterprises) and large, medium and small private sector firms) operating in various sectors in countries across the developing world. It uses a three dimensional framework to analyse different types of Chinese firms in terms of value chain operations covering many of the ESG standards they are required to meet: 1. Supply chain relations (i.e. approach to supporting upgrading of local suppliers); 2. Internal firm processes (i.e. approach to local labour, training and upskilling); 3. Social licence to operate (i.e. approach to meaningfully engaging with local communities taking account of their social and economic needs).
Topic:
Development, Environment, Governance, Business, and Supply Chains
Political Geography:
Africa, China, Asia, and Latin America

19. Beyond Geopolitics: A Geoeconomic Perspective of China-Iran Belt and Road Initiative Relations

Author:
Seyedashkan Madani
Publication Date:
06-2022
Content Type:
Journal Article
Journal:
Uluslararasi Iliskiler
Institution:
International Relations Council of Turkey (UİK-IRCT)
Abstract:
The Belt and Road Initiative (BRI) is the largest regional development project in the history of global development. It is estimated that Chinese companies will invest up to $1.2 trillion in infrastructure development in Asia and elsewhere in the coming years. However, there are many obstacles to the successful implementation of this initiative in the host countries, including geographical factors, local culture, geopolitical contestation, public attitudes, institutional capacity, and governance quality. These challenges can substantially diminish the coherence of the BRI and prevent its effective implementation. This study aims to develop an analytical framework for exploring the risks associated with and challenges of executing BRI projects in Iran. To this end, all risks are categorized into three broad groups: operational, financial, and geopolitical. The results show that Iran generally faces many internal and external challenges in attracting foreign investment. The critical question is: Why is Iran receiving substantial investment from Chinese companies despite its unfavorable business environment? A geoeconomic approach is used to develop a theoretical framework to explain Iran-China BRI relations. In this context, Iran’s geoeconomic significance is the main factor encouraging the flow of Chinese investment into the country. The BRI comprises mostly functional cooperation between China and countries along the Silk Road based on a specific geospatial environment. Iran’s geospatial environment encourages Chinese investments in infrastructure, which is the main content of functional cooperation.
Topic:
Development, International Trade and Finance, Infrastructure, and Belt and Road Initiative (BRI)
Political Geography:
China and Asia

20. Digitalization of Special Economic Zones in China

Author:
Jie (Jeanne) Huang
Publication Date:
01-2022
Content Type:
Working Paper
Institution:
China Studies Centre, The University of Sydney
Abstract:
Special Economic Zones (SEZ) have become the forefront in China to test legal and technological reforms for digital trade. This chapter explores three cutting-edge case studies in China’s SEZs: the Beijing blockchain-based Single Window deposit box; newly established big data exchanges in Beijing, Tianjin, and Shanghai SEZs; and pilot projects in financial, medical care and automobile industries to flow data across the border in the Shanghai SEZ. It scrutinizes China's experiments in the context of its applications to join CPTPP and DEPA. It argues that the development of Chinese domestic law for digital trade is shifting away from the traditional paradigm that uses international commitments to push domestic reform or make domestic law according to international law. The development of Chinese domestic law for digital trade relies much more on China’s domestic needs than what FTAs negotiations require. FTAs are increasingly becoming a tool for China to shape international law rather than a benchmark for legislating domestic Chinese law.
Topic:
Development, Economics, International Trade and Finance, Hegemony, and Digitalization
Political Geography:
China and Asia