Jenny Clegg - Chinas Global Strategy: Toward a Multipolar World

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CHINAS GLOBAL STRATEGY

Chinas Global Strategy

Towards a Multipolar World

Jenny Clegg

First published 2009 by Pluto Press
345 Archway Road, London N6 5AA and
175 Fifth Avenue, New York, NY 10010

Distributed in the United States of America exclusively by
Palgrave Macmillan, a division of St. Martins Press LLC,
175 Fifth Avenue, New York, NY 10010

www.plutobooks.com

Copyright Jenny Clegg 2009

The right of Jenny Clegg to be identified as the author of this work has been asserted by her in accordance with the Copyright, Designs and Patents Act 1988.

British Library Cataloguing in Publication Data
A catalogue record for this book is available from the British Library.

ISBN 978 0 7453 2519 4 Hardback
ISBN 978 0 7453 2518 7 Paperback
ISBN 978 1 8496 4308 5 PDF eBook
ISBN 978 1 7837 1824 5 EPUB eBook
ISBN 978 1 7837 1825 2 Kindle eBook

Library of Congress Cataloging in Publication Data applied for.

This book is printed on paper suitable for recycling and made from fully managed and sustained forest sources. Logging, pulping and manufacturing processes are expected to conform to the environmental standards of the country of origin. The paper may contain up to 70 per cent post-consumer waste.

10 9 8 7 6 5 4 3 2 1

Designed and produced for Pluto Press by
Curran Publishing Services, Norwich

Printed and bound in the European Union by
CPI Antony Rowe, Chippenham and Eastbourne

CONTENTS

ACKNOWLEDGEMENTS

This book originated in discussions with Keith Bennett. Whilst I take full responsibility for what follows, I am indebted to him for his contributions in many different ways to the project. Most particularly, I would like to mention the political acuity of his advice on some of the more controversial matters.

I am very grateful to my brother, Peter Clegg, for his diligent assistance, which was a great help in the final stages of the writing process.

I also benefited from the advice of Jun Li on , and I would also like to thank them for this.

ABBREVIATIONS AND
ACRONYMS

ABM	anti-ballistic missile
ACFTA	ASEAN-China Free Trade Area
ACFTU	All-China Federation of Trade Unions
AFTA	ASEAN Free Trade Area
APEC	Asia-Pacific Economic Cooperation
ASEAN	Association of South-East Asian Nations
ASEAN+1	ASEAN plus China
ASEAN+3	ASEAN plus, China, South Korea and Japan
ASEM	Asia-Europe Meeting
CIS	Commonwealth of Independent States
CNOOC	China National Offshore Oil Corporation
COE	collectively owned enterprise
CNP	comprehensive national power
CPC	Communist Party of China
CTBT	Comprehensive Test Ban Treaty
DPRK	Democratic Peoples Republic of Korea
DWSR	Dollar Wall Street Regime
EU	European Union
FDI	foreign direct investment
FIE	foreign invested enterprise
FMCT	Fissile Materials Cut-Off Treaty
FTA	free trade agreement
FTAA	Free Trade Area of the Americas
G-7	Group of 7
G-8	Group of 8
G-77	Group of 77
GATT	General Agreement on Trade and Tariffs
GDP	gross domestic product
IAEA	International Atomic Energy Authority
ICBM	intercontinental ballistic missile
IMF	International Monetary Fund
IPR	intellectual property rights
KMT	Kuomintang
MD	missile defence
MFA	Multi-Fibre Agreement
MNC	multinational corporation
MTCR	Missile Technology Control Regime
NAFTA	North American Free Trade Agreement
NAM	Non-Aligned Movement
NATO	North Atlantic Treaty Organisation
NGO	nongovernment organisation
NIEO	New International Economic Order
NIPEO	new international political and economic order
NPC	National Peoples Congress
NPL	non-performing loan
NPT	Non-Proliferation Treaty
NSC	New Security Concept
NSS	National Security Strategy
NWFZ	nuclear weapons-free zone
OECD	Organisation for Economic Cooperation and Development
PAROS	Prevention of an Arms Race in Outer Space
PLA	Peoples Liberation Army
PNAC	Project for a New American Century
PRC	Peoples Republic of China
PSI	Proliferation Security Initiative
QDR	Quadrennial Defense Review
R&D	research and development
RMB	renminbi
SAARC	South Asia Association for Regional Cooperation
SAIC	Shanghai Automotive Industry Corporation
SCO	Shanghai Cooperation Organisation
SIPRI	Stockholm International Peace Research Institute
SOB	state-owned bank
SOE	state-owned enterprise
TNC	transnational corporation
TRIPS	Trade-Related Intellectual Property Rights
TVE	township or village enterprise
UN	United Nations
UNCTAD	UN Conference on Trade and Development
UNSC	United Nations Security Council
WMD	weapons of mass destruction
WTO	World Trade Organization

INTRODUCTION

A WORLD TURNING UPSIDE DOWN

China is emerging as a powerful player on the world stage and the contours of another world are taking shape. The neocon vision of a unipolar world dominated by the United States as the sole superpower is starting to give way as Chinas rise signals the emergence of a new kind of multipolar international order with a more democratic determination of world affairs.

China, it seems, is coming out of nowhere. Just five years ago, George W. Bush launched into the war on Iraq in a bid for US supremacy which was, as Arrighi has observed, the most ambitious project of world rule ever conceived. At the time China was widely portrayed as verging on collapse, its corrupt one-Party state a hollow sham, at odds with a capitalist economy being driven to bankruptcy by the endless pumping of funds into the dying dinosaurs of its state-owned enterprises (SOEs).

Instead, China has kept growing from strength to strength, following its own plans to quadruple its GDP between 2000 and 2020, lifting millions of people out of poverty. Today, with the United States unable to win the wars it so disastrously started and its economy riddled with bad debt, dragging the rest of the world towards recession, many are increasingly looking to Chinas development as a source of global economic stability.

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