Challenging the Beijing Consensus China Foreign Policy in the 21st Century dissertation

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Foreign Policy of China (Beijing consensus)

Structure of Chinese Foreign Policy

The "Chinese Model" of Investment

The "Beijing Consensus" as a Competing Framework

Operational Views

The U.S.-China (Beijing consensus) Trade Agreement and Beijing Consensus

Trading with the Enemy Act

Export Control Act.

Mutual Defense Assistance Control Act

Category B

Category C

The 1974 Trade Act.

The Operational Consequences of Chinese Foreign Policy

The World Views and China (Beijing consensus)

Expatriates

The Managerial Practices

Self Sufficiency of China (Beijing consensus)

China and western world: A comparison

The China (Beijing consensus)'s Policy of Trading Specialized Goods

Chapter 5

The versions of China (Beijing consensus)'s trade development

The China (Beijing consensus) Theory of Power Transition

References

Foreign Policy of China (Beijing consensus)

Chapter 1

Abbreviations

ACD arms control and disarmament

ACDA Arms Control and Disarmament Agency

ADB Asian Development Bank

ADF Asian Development Fund

APEC Asia-Pacific Economic Cooperation

ARF ASEAN [Association of Southeast Asian Nations] Regional Forum

ASDF Air Self-Defense Forces

AShM anti-ship missiles

ASW antisubmarine warfare

AWACS airborne warning and command system

BIS Bank for International Settlements

BWC Biological Weapons Convention

CATIC China Agribusiness Development Trust and Investment Corporation

CBM confidence-building measure

CBNT Comprehensive Ban on Nuclear Testing

CCF Country Cooperation Framework

CCP Chinese Communist Party

CD Conference on Disarmament

CFC chlorofluorocarbon

CIS Commonwealth of Independent States

CISS China Institute for International Strategic Studies

CMC Central Military Commission

COW Correlates of War

CPs country programs

CTBT Comprehensive Test Ban Treaty

CWC Chemical Weapons Convention

CWG China Working Group

DDG guided-missile destroyers

DMCs developing member countries

EAEC East Asian Economic Caucus

EDI Economic Development Institute

EEC/EU European Economic Community/European Union

EEZ Exclusive Economic Zone

EPBs environmental protection bureaus

FALSG Foreign Affairs Leading Small Group

FDI foreign direct investments

FFG guided-missile frigate

FIAS Foreign Investment Advisory Service

FPDA Five-Power Defense Agreement G-7 Group of Seven

GATT General Agreement on Tariffs and Trade

GDP gross domestic product

GNP gross national product

HDI human development index

IBRD International Bank for Reconstruction and Development, World Bank

ICBM intercontinental ballistic missiles

ICCPR International Covenant on Civil and Political Rights

ICESCR International Covenant on Economic, Social and Cultural Rights

ICPs inter-country programs

IDA International Development Association

IDF Indigenous Defense Fighter

IFC International Finance Corporation

IGOs intergovernmental organizations

IISS International Institute for Strategic Studies

IMF International Monetary Fund

IOs international organizations

IR international relations

IRBM intermediate-range missiles

JSF Japan Special Fund

LDCs less-developed countries

LRF Laogai Research Foundation

ME military expenditures

MEIs multilateral economic institutions

MFN most-favored-nation

MIGA Multilateral Investment Guarantee Agency

MNCs multinational corporations

MOFA Ministry of Foreign Affairs

MSDF Maritime Self-Defense Forces

MTCR Missile Technology Control Regime

NAM Non-Aligned Movement

NATO North Atlantic Treaty Organization

NDPO National Defense Program Outline

NEPA National Environmental Protection Agency

NGOs nongovernmental organizations

NIEO New International Economic Order

NMD national defense missile

NPT Non-Proliferation Treaty

ODA official development assistance

PLA People's Liberation Army

PLAAF People's Liberation Army Air Force

PLAN PLA Navy

PPP purchasing power parity

PRC People's Republic of China (Beijing consensus)

RFE Russian Far East

RMA Revolution in Military Affairs

RMB renminbi

SAM surface-to-air missiles

SDF Self-Defense Forces

SLOC Sea Lanes of Communication

SOCBs state-owned commercial banks

SOEs state-owned enterprises

SPC State Planning Commission

SSBN nuclear-powered ballistic missile submarine

SSK kilo-class diesel-electric submarines

SSN nuclear-powered submarines

SSTC State Science and Technology Commission

TATF Technical Assistance Trust Funds Program

TMD theater missile defense

TNW theater nuclear weapons

TRA Taiwan Relations Act TVEs town and village enterprises

TWG Taiwan Working Group

UNCED United Nations Conference on Environment and Development

UNCHE United Nations Conference on the Human Environment

UNCLOS United Nations Convention on the Law of the Sea

UNDP United Nations Development Program

UK United Kingdom

USSR Union of Soviet Socialist Republics

WBG World Bank Group WTO World Trade Organization

Introduction

1.2 The Significance and Background of Research

For about two decades, Beijing consensus has pursued a long-term economic development strategy based upon expanded domestic markets; accelerated capital formation; far-reaching monetary, fiscal, and banking reform; and greatly increased reliance on foreign official and private assistance, loans, credits, direct investment, and trade, all within the framework of the global capitalist economic system. Critical components of China (Beijing consensus)'s ambitious program to build a prosperous modern economy have been an acceptance of a market economy (euphemistically called "socialism with Chinese characteristics") and participation in the world economy. If domestic reforms have provided economic incentives and institutional foundations for future prosperity, China (Beijing consensus)'s open door policy has brought increased access to foreign capital and expertise as well as the longer-range economic benefits of Ricardo's international trade theory of comparative advantage (Sutter & Choi, 1996, p. 27).

Since 1980 China's modernization policies have involved membership and active participation in a number of multilateral economic institutions (MEIs). Although China (Beijing consensus) has received invaluable technical expertise, technology, and capital resources through the MEIs, membership has also entailed an obligation for China (Beijing consensus) to open its economy and institutions to outside scrutiny, study, evaluation, and suggestions regarding its development strategy (Tang, 1959, p. 52). The MEIs include the World Bank Group (WBG) -- the International Monetary Fund (IMF), the International Bank for Reconstruction and Development (IBRD), or World Bank, and its affiliated agencies, the International Development Association (IDA), the International Finance Corporation (IFC), and the Multilateral Investment Guarantee Agency (MIGA), and the Asian Development Bank (ADB) (Sutter & Choi, 1996, p. 27).

Though China (Beijing consensus) has been unable thus far to join the General Agreement on Tariffs and Trade (GATT) and Trade (GATT) and its successor, the World Trade Organization (WTO), in September 1996 China (Beijing consensus)'s central bank, along with its counterparts in eight of the world's fastest growing economies, was invited to join the prestigious Swiss-based Bank for International Settlements (BIS). The research intends to focus on China (Beijing consensus)'s participation in the MEIs; on the nature and consequences of those relationships for China (Beijing consensus)'s economic policies, institutions, and performance; and on a number of current issues and implications for both China (Beijing consensus) and the world community. As with all good research, the growing consensus about, and knowledge of, the policymaking structure raise as many questions as they answer. It seems quite clear that the policymaking process for the Mao period and large parts of the Deng period was vertically organized, especially for foreign policy issues. Mao and Deng were the final arbiters of Chinese foreign policy making. But is it an immutable aspect of the nature of power in China (Beijing consensus) that the top leader always takes foreign policy making as his prerogative, or is it a reflection of the particular authority and power associated with both Mao and Deng? (Tang, 1959, p. 52)

Although we now know a great deal about the structure of the decision making process, does this really tell us much about the resulting foreign policy? Regardless of the decision making structure, Chinese statesmen are basically realist analysts of international affairs, some insightful observers argue. Most of the recent revelations about foreign policy decision making have focused on diplomacy and the role of the Ministry of Foreign Affairs or on particular instances of the use of force. But there is little systematic work done on the integration of diplomatic, military, and foreign trade- related decision making. How are the diverse elements of China (Beijing consensus)'s interactions with the outside world integrated into a more or less unified whole? Finally, how do international and domestic influences affect the nature of the decisions reached by the Chinese leadership on international issues? Thus, our knowledge has grown dramatically, but the number of issues resolved by this new information is still relatively small (Sutter & Choi, 1996, p. 27).

In this research I will survey the decision making apparatus as it bears on China (Beijing consensus)'s international posture and will describe the structure of the system as it has developed over time. I will present five short case studies of important or telling incidents in the history of China (Beijing consensus)'s relations with the outside world, drawing some conclusions about the nature of the policymaking process from them. I will conclude with the likely evolution of the foreign policy making process and decision rules in the emerging post- Deng era (Tang, 1959, p. 52).

In terms of political values, the era of Maoism is long past. Although China (Beijing consensus) remains authoritarian, the success of its political economy in tripling gross domestic product over the past three decades has made it attractive to many developing countries. In parts of Asia, Africa, and Latin America, the so-called "Beijing consensus" on authoritarian government plus a market economy has become more popular than the previously dominant "Washington consensus" of market economics with democratic government. This has been reinforced by the 2008 financial crisis, and China (Beijing consensus) has reinforced its attraction by economic aid and access to its growing market.

China (Beijing consensus) has also adjusted its diplomacy. A decade ago, it was wary of multilateral arrangements and at cross purposes with many of its neighbors. It has since joined the World Trade Organization,…[continue]

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