Below the Belt? Territory and Development in China's International Rise

China's internationalization has been heralded by some as a new era of South–South cooperation. Yet such framings of development are pitched at an abstract space of the ‘global South’ which conceals more than it reveals. With some theory moving towards ontologies of ‘global development’, we need to capture both the connectedness and the local specificity of increasingly diffuse processes. This article sets out a more fine‐grained understanding of how political territories and processes are imagined and produced by and through China's internationalization, focusing on infrastructure as a ‘technology’ of territorialization. Much of the focus on China's internationalization has been on state‐to‐state relations, but this obscures the ‘omni‐channel politics’ that China practises. Using a critical literature review and illustrative case study, this article develops the idea of omni‐channel politics to posit a view of ‘twisted’ territories in which political processes and development outcomes are more complex and contingent.     

Coordinated Credit Spaces: The Globalization of Chinese Development Finance

This article examines the emergence of Chinese development finance on the global stage and evaluates the extent to which it differs from, complements and/or competes with the Western‐backed development finance institutions. Whereas the new, China‐backed multilaterals are closer to the Western model, especially the Asian Infrastructure Investment Bank, this analysis finds that China's national development finance is significantly distinct along three parameters — the scale and business model of Chinese finance relative to its Western counterparts, the composition and approach of China's lending portfolio, and the governance of China's development finance institutions. These differences can be seen as complements to the Western‐backed system, given that much of Chinese development finance has flowed into countries and sectors in which Western development finance institutions have ventured to a lesser extent. However, the globalization of Chinese development finance, patterned on the international diffusion of what is coined in this article as the ‘coordinated credit space model’, contrasts with Western development finance, governance and business models, and has triggered a competitive stance from Western actors. Either contestation or convergence are possible trajectories for the future, and the outcome will be determined by whichever can produce conditions akin to the ‘politics of productivity’.     

Global Poverty and Inequality: Change and Continuity in Late Development

This contribution assesses the ‘converging divergence’ thesis that global inequality is falling and national inequality is rising. The article argues that falling global inequality is primarily due to China's development and that national inequality has risen in some developing countries and fallen in others. In light of the dominance of China's development in the global picture, questions arise as to what has changed and what has not changed outside of China. A set of changes and continuities is presented. It is then argued that these changes and continuities provide for the contemporary relevance an older conceptual lens — that of ‘late development’.     

Improvised Hybridity in the “Fixing” of Chinese Infrastructure Capital: The Case of Kenya's Standard Gauge Railway

The article explores the role of state-owned enterprises (SOEs) in the globalisation of China's infrastructure capital. Examining how accumulation strategies of Chinese SOEs are driven by a complex set of political and economic, state and private, interests, it foregrounds the inherently hybrid nature of China's state capitalism. We use Kenya's Standard Gauge Railway (SGR) as a case study to analyse how state infrastructure capital traverses borders, and the specific ways that contradictions of accumulation in China are relocated through the improvised hybridity of SOEs. In Kenya, China Road and Bridge Corporation, the main SGR contractor, shifted and adapted its strategies as the pursuit of economic productivity gave way to political priorities in China, simultaneously responding to changing socio-political circumstances in Kenya and across East Africa. Analysing these dynamics, we highlight the contingencies of, and limitations to, structural reorganisation of actually existing forms of state capitalism in China and beyond.     

China and the emerging regional order in the South Pacific

As China rises, it has become increasingly aggressive in applying its soft power in the Pacific. What does China's arrival mean for the emerging regional order in the Pacific? What is it up to in the strategic backwater of the Pacific, which has traditionally been regarded as an ‘American lake’ and Australia's ‘special patch’? Setting my analysis in the broad context of China's new global diplomacy, I argue that the pattern of China's assertive behaviour in the Pacific is no different from its approach to other regions in the global South. I further argue that with only limited strategic, diplomatic and economic investment in the Pacific, China has become a regional power by default. The arrival of China, therefore, is unlikely to provoke any new round of great power competition. Rather, it offers opportunities for the world's second most formidable development challenge.     

Workers,Unions and the State: Migrant Workers in China's Labour‐intensive Foreign Enterprises

Migrant workers present a new challenge both to China's increasingly diversified industrial relations and to its state–society relationship, especially vis‐à‐vis China's developmental state. Through an examination of the situation of migrant workers in the country's labour‐intensive foreign investment enterprises, this article argues that it is difficult to establish tripartite industrial relations in China and that pluralistic labour organizations will not easily develop into civil society type labour entities. China's developmental state is in an ambiguous process in redefining its role. Its ability to micro‐manage society is weakening substantially. However, its developmental character at the macro‐level largely remains strong, allowing it to continue to restrict progress towards civil society. The future will ultimately depend on a collective determination by key players — the workers, unions and the state — to find a compromise.     

Projections of China's normative soft power

Fuelled by unparalleled recent development, China has by necessity been reaching outward in search of foreign resources and international recognition. The three books reviewed in this essay all speak to China's spectacular global ascendency of the past two decades—and to the political consequences and international reactions that have followed. What unites these three volumes—Tongdong Bai's China: The Political Philosophy of the Middle Kingdom (2012), Peter Nolan's Is China Buying the World? (2012) and William Callahan and Elena Barabantseva's edited volume, China Orders the World: Normative Soft Power and Foreign Policy (2011)—is their focus on the uniquely Chinese norms that now underpin China's soft power in the twenty-first century. How will China go about ordering the world and will it succeed? The answers to these questions, as these authors demonstrate, may have less to do with China's present than with its ancient past.     

The new resource politics: can Australia and South Africa accommodate China?

The material transformation of the Chinese economy is forcing a concomitant process of political adjustment—and not just in China. Other states are being forced to accommodate the ‘rise of China’. In this context, this article first presents a comparative analysis of China's impact on two countries, Australia and South Africa, which have little in common other than a wealth of natural resources and a possible status as middle powers; this is a particularly useful exercise because these states are geographically distant and have very different political structures and general developmental histories. Second, the authors consider how China's bilateral ties look from a Chinese perspective in these two very different relationships. Such an analysis serves as a reminder that resource dependency is a two‐way street. The article argues that underlying material realities are constraining and to some extent determining the domestic and foreign policies of three very different states that otherwise have little in common.     

Securing China's core interests: the state of the debate in China

As China has grown stronger, some observers have identified an assertive turn in Chinese foreign policy. Evidence to support this argument includes the increasingly frequent evocation of China's ‘core interests’—a set of interests that represents the non‐negotiable bottom lines of Chinese foreign policy. When new concepts, ideas and political agendas are introduced in China, there is seldom a shared understanding of how they should be defined; the process of populating the concept with real meaning often takes place incrementally. This, the article argues, is what has happened with the notion of core interests. While there are some agreed bottom lines, what issues deserve to be defined (and thus protected) as core interests remains somewhat blurred and open to question. By using content analysis to study 108 articles by Chinese scholars, this article analyses Chinese academic discourse of China's core interests. The authors’ main finding is that ‘core interests’ is a vague concept in the Chinese discourse, despite its increasing use by the government to legitimize its diplomatic actions and claims. The article argues that this vagueness not only makes it difficult to predict Chinese diplomatic behaviour on key issues, but also allows external observers a rich source of opinions to select from to help support pre‐existing views on the nature of China as a global power.     

The Suburb as a Space of Capital Accumulation: The Development of New Towns in Shanghai,China

Drawing attention to the governing role of capital accumulation and its interaction with the state, this study examines the dynamics of the new wave of suburbanization in China, which is characterized by the development of new towns. New towns essentially function as a spatial fix in China's contemporary accumulation regime. Rather than resulting from capital switching from the primary to the secondary circuits, new towns help to collect funds for the leverage of industrial capital and thus simultaneously sustain both circuits. Meanwhile, the development of new towns is also a process of territorial development, in which municipal governments expand the space of accumulation under strengthened fiscal and land controls and develop a metropolitan structure. Underlying the specific form and dynamics, however, is the worldwide trend of capital switching from declining manufacturing industries in developed countries to the new investment frontier in developing countries.     

Trajectories for Greening in China: Theory and Practice

This edited volume argues that China's development poses the greatest ever environmental challenge for the modern world in terms of speed, size and scarcity. The volume is organized around the greening of the Chinese state and society: can the inclusion of sustainable development principles into governance, management and daily practices by social actors lead to sustainable development per se? This introduction sketches the different scholarly camps around greening and sustainable development, ranging from sceptical to radical environmentalism. The contributions demonstrate that China is showing clear signs of greening as new institutions and regulations are created, environmental awareness increases and green technologies are implemented. However, the question remains whether this is sufficient to effectuate long‐term sustainable development. The key factors here are the sheer speed of China's economic growth, the size of its population, and the relative scarcity of its natural and mineral resources. Chinese development presents compelling reasons for rethinking the viability of greening. It is necessary to move beyond both alarmist visions of an environmental doomsday, and optimistic notions that incremental changes in technology, institutions and lifestyles are sufficient for sustainability. It might be more fruitful — and not only for China — to consider ‘precautionary’ rather than ‘absolute’ limits to growth.     

Economic statecraft in China's new overseas special economic zones: soft power,business or resource security?

China's rapidly growing economic engagement with other developing countries has aroused intense debates, but these debates have often generated more heat than light. The Chinese government is clearly pushing its companies to move offshore in greater numbers, and state‐owned firms figure prominently in many of the major investments abroad. Yet relatively little research exists on when, how and why the Chinese government intervenes in the overseas economic activities of its firms. China's state‐sponsored economic diplomacy in other developing countries could play three major strategic roles: strengthening resource security, enhancing political relationships and soft power, and boosting commercial opportunities for national firms. This article examines China's programme to establish overseas special economic zones as one tool of Beijing's economic statecraft. It traces the process by which they were established and implemented, and investigates the characteristics of the 19 zones initially selected in a competitive tender process. The article concludes that even in countries rich in natural resources, the overseas zones were overwhelmingly positioned as commercial projects. Particularly in the Asian zones, China is following in the footsteps of Japan. The zone programme, and the Chinese foreign investment it hoped to foster, represents a clear case of the international projection of China's developmental state. However, in Africa (but not generally elsewhere) discourse surrounding the zones publicly positions them as a transfer of China's own development success, thus potentially enhancing China's political relationships and soft power on the continent.     

Internationalisation of the Chinese subnational state and capital: the case of Yunnan and the Greater Mekong Subregion

This article examines the participation of China's Yunnan Province in the Greater Mekong Subregion (GMS) in order to understand the dynamics behind the regionalisation and internationalisation strategies adopted by a Chinese subnational state. It argues that the Yunnan case demonstrates the outflow of state capital—both national and provincially based—to have been instrumental in harnessing Beijing's and Kunming's political support for programs of subregional economic cooperation. This political support has led to a state capital alliance underpinning the economic expansion of provincial state capital into the GMS. It also argues that subregional governance arrangements, such as those featuring in the GMS, embed the competitive advantage of state capital through new forms of extra-territorial governance that ostensibly de-emphasises the political dimensions of state capital. The internationalisation of Yunnan subnational state is reflected in its political strategy of subregional governance. These changes point to complex rescaling of not just national state but also subnational states in Asia that find expression in variegated regional and subregional political projects.     

Japan's response to China's rise: regional engagement, global containment, dangers of collision

Japan and China's ability to manage their bilateral relationship is crucial for the stability of the East Asian region. It also has a global impact on the security and economic development of other regions. For just as China's rise has inevitably involved an expansion of its global reach, so Japan's responses to the challenges posed by China have increasingly taken a global form, seeking to incorporate new partners and frameworks outside East Asia. Japan's preferred response to China's regional and global rise in the post‐Cold War period has remained one of default engagement. Japan is intent on promoting China's external engagement with the East Asia region and its internal domestic reform, through upgrading extant bilateral and Japan–China–US trilateral frameworks for dialogue and cooperation, and by emphasizing the importance of economic power to influence China. Japan is deliberately seeking to proliferate regional frameworks for cooperation in East Asia in order to dilute, constrain and ultimately engage China's rising power. However, Japan's engagement strategy also contains the potential to tilt towards default containment. Japan's domestic political basis for engagement is becoming increasingly precarious as China's rise stimulates Japanese revisionism and nationalism. Japan also appears increasingly to be looking to contain China on a global scale by forging new strategic links in Russia and Central Asia, with a ‘concert of democracies’ involving India, Australia and the US, by competing for resources with China in Africa and the Middle East, and by attempting to articulate a values‐based diplomacy to check the so‐called ‘Beijing consensus’. Nevertheless, Japan's perceived inability to channel China's rise either through regional engagement or through global containment carries a further risk of pushing Japan to resort to the strengthening of its military power in an attempt to guarantee its essential national interests. It is in this instance that Japan and China run the danger of a military collision.     

Sino–American relations: new changes and new challenges

Sino–American relations encompass a highly complex array of cooperative and competitive dimensions. Recently, they have evolved around the question of ‘China's rise’ or (as Chinese analysts would state it) ‘peaceful evolution’. This article surveys both the cooperative and competitive structural elements of this important bilateral relationship. It tracks recent transitions in that relationship, arguing that China's new-found status as a ‘responsible stakeholder’ in American eyes will present a new set of American expectations and new forms of strategic collaboration that will seriously test both sides’ policy creativity and ability to adapt to a rapidly changing global environment.     

Society and politics in China today

China's social and economic transformations, and their growing global impact, have prompted a plethora of books. This review article examines five recent books in Polity's China today series as a basis for discussion about society and politics in China. The series is structured around applying different themes or concepts to China, and these five look at consumption, social welfare, class, ethnicity, and the nature, role and performance of the Communist Party and state. The books provide well‐researched and balanced accounts of developments in China, especially since the era of ‘reform and opening up’ began in 1978. The article argues that important themes of the books—the growing discourse of consumption, the depoliticization of class as socio‐economic strata, the Party‐state as a pragmatic provider of citizen services, and the role of the private sector in the provision of social welfare—are all features of the current phase of a globalized capitalist modernity, and concludes that while the country wants to be seen as different, the accounts of politics and society in this series suggests that China today offers more of an alternative within that modernity than an alternative to it.     

Limits to the Washington Consensus: Boundary struggles and China's transition economy

This paper explores the interconnected normative and geopolitical-economic tensions between the Washington Consensus and the Chinese state through an analysis of reform discourses and practices at the World Bank. Frequently framed as opposing visions and templates of development, the World Bank and the Chinese state have engaged in a protracted relationship of mutually-informing exchanges of economic expertise, technical assistance, and policy formulation, evolving significantly since China's ‘opening up’ in 1978. I trace these shifting relations through an interpretive strategy inspired by Nancy Fraser's concept of boundary struggles, focusing on how the World Bank has challenged, affirmed, and affected China's institutionalized division between polity and economy. Through a new periodization of the World Bank/China nexus, this paper shows how transformations in geopolitical-economic relations condition the normative construction, representation, and reception of ‘economic models’. It also challenges antipodean conceptions of the ‘free-market’ Washington Consensus and ‘state-capitalist’ China through demonstrating the qualitative character of their state/market articulations.     

Getting the China Story Right: Insights from National Economic Censuses

Two Hong Kong-based geographers critically interrogate competing interpretations of the nature and dynamics of China's ongoing economic transformation. Based on the data gathered from China's first and second national economic censuses, they examine the pattern and process of ownership transformation in the Chinese economy, focusing on employment, capital assets, and output as well as productivity and industrial innovation. Emphasis is placed on the following critical issues: (1) after three decades of opening, China's national economy continues to be dominated by domestic enterprises (with foreign and overseas Chinese-invested enterprises limited to only a few industrial sectors and highly specific locales); (2) the bulk of capital assets and key large-scale industrial sectors remain in state ownership; and (3) spontaneous, bottom-up privatization of the labor market has occurred without a corresponding privatization of the capital market. In examining these and other issues, the authors argue that the evolving, complex "China story" can be better understood only after abandoning reliance on preconceived theoretical models derived primarily from Western experience. They support their case by first challenging the conventional neoliberal view of privatization as an independent force or predetermined condition, arguing instead that it is conditioned by prevailing social and political influences. Likewise, they posit that rapid expansion of private and individual businesses at the grassroots level has owed more to relaxed state control than to active state involvement envisioned by the thesis of state corporatism. Journal of Economic Literature, Classification Numbers: E22, E23, E24, O11, P20. 8 figures, 6 tables, 87 references.     

The New Development Bank and the Asian Infrastructure Investment Bank: China's Ambiguous Approach to Global Financial Governance

The creation of the New Development Bank (NDB) and the Asian Infrastructure Investment Bank (AIIB) has generated a great deal of attention and controversy in the development community and beyond. Do these banks indicate that China is promoting a new model of multilateral development finance that undermines the existing system dating back to Bretton Woods? What are the forces shaping China's policy choices in this area? In contrast to the prevailing tendency to view these banks as part and parcel of the same challenge or opportunity for multilateral development financing, this article highlights major distinctions between the NDB and the AIIB. The fact that China is playing a prominent role in both the NDB and the AIIB suggests that China is not promoting a coherent new model of multilateral development financing, but is instead straddling different traditions in this realm of global financial governance. The ambiguity in China's approach to multilateral development finance is shaped by its multiple identities and complex economic and political interests.