Abstract.
One of the most important arguments with which China sought to develop amicable relations with its neighbours has been the promise of economic benefits. Yet, this paper argues, these gains have remained limited. In spite of limited available data, the paper shows that China’s contribution to the rest of Asia’s GDP has been small and for most neighbours negative. Moreover, China is increasingly impelling those countries into partnerships that look unequal rather than equal. While Beijing has tried to mitigate frustration by promising to rebalance its economy and to create more export opportunities, the paper goes on to reveal that China is in fact readying to make another major push for exports itself and to pursue its own open-door policy. Key words: Strategic trade, China, Asia, open-door, unequal partnership.
Introduction
“The more China grows the more it will create development opportunities for the rest of Asia.” It was one of the first speeches of Xi Jinping in his role as President of China and like his predecessor he choose to use the opportunity to reassure neighbouring countries of the benefits of his country’s rise. “Domestic demand, particularly consumption-driven demand, will continue to grow,” he explained, “It is projected that in the coming five years, China’s import will reach some US$ 10 trillion, its outbound investment will reach US$ 500 billion.” This emphasis on mutually beneficial cooperation and the prospect of a harmonious economic order is important. As an emerging trading nation, China has an interest in an open regional economy. Furthermore, its leaders understand very well that to precipitate China’s ascent, they have to prevent that neighbours gang up to resist it. That on its turn has prompted Beijing to cultivate the image of a benign pretender. What matters, the official argument goes, is not how much power China gains, but that it promises to use that power peacefully.
The whole article of Jonathan Holslag can be found here.
Professor Holslag works on a project base with HCSS.
Photo credit: Abode of Chaos via Foter.com / CC BY
