Perspectives on Australian foreign policy, 2005

The year 2005 was notable for the Howard government's embrace of China. Spectacular resource deals were accompanied by the government's optimistic public declarations that China's rise could be accommodated in the current Asia–Pacific power structure. Alliance relations, which were the cornerstone of the Howard government's foreign policy, were boosted further by the decision to strengthen the Australian Defence Force's capacity to contribute to future US operations. The central challenge for this government arising from its decision-making in 2005 was to manage both major power relations in tandem. This was a year where the connection between international policy and domestic issues stood in stark relief. Terrorism concerns provided the context for the government's foreign policy but it also drove stringent domestic legislation. Australia's relationship with Indonesia improved but the commitment to Iraq remained problematic. Not the least of these difficulties stemmed from the exposure of the Australian Wheat Board's corporate dealings in Iraq which had operated counter to the government's international policy.     

The emergence of NGOs in China and their transnational linkages: implications for domestic reform

In addressing the question of how China's rapid socioeconomic transformation is changing the nature of its international engagement we need to move beyond a traditional focus on state-centric analysis. Obviously a major stimulus for China's international engagement over the past 25 years of reform and opening has come from non-state economic activity. Growing economic interdependence, accelerated after China's accession into the World Trade Organization, provides the strongest argument in favour of a peaceful rise of China scenario in which both regional and global security are enhanced rather than threatened. Far less attention, however, has been given to the role and influence of Chinese non-governmental organisations (NGOs) and their transnational linkages. I argue in this article that in order to obtain a more comprehensive picture of China's ongoing process of reform and opening to the outside world we need to incorporate a civil society dimension into our analysis. This is of particular relevance to ongoing foreign policy debates over democracy and human rights promotion in China. Indeed, in the absence of a more detailed understanding of current developments taking place at the grassroots, international support for progressive reform runs the risk of undermining positive change from below.     

‘Decolonisation’ on the Periphery: Liu Xiang and Shipping Rights Recovery at Chongqing, 1926–38

Between 1929 and 1932, Sichuan militarist Liu Xiang pursued his own anti-imperialist agenda in Chongqing, a port city beyond the purview of China's ‘central’ Guomindang government. In both its autonomy and its defiant tactics, Liu's programme contradicted the Guomindang regime's official strategy of negotiated revision of the unequal treaties. In its concrete objectives, however, Liu's project was strikingly similar to the Guomindang's programme of shipping rights recovery, an effort to reduce the presence and power of foreign shipping in China's coastal waters and an integral part of its agenda for treaty revision. This essay examines Liu Xiang's efforts to eliminate the privileges of foreign shipping, bolster Chinese shipping and extend his regime's oversight over all shipping within his garrison area on the Upper Yangzi River. In examining Liu's local motives as well as his marginalisation of central government institutions like the Maritime Customs, the essay addresses his fraught relations with the centre, yet, in contrast to standard nationalist critique of China's early twentieth-century warlords, it also reveals how efforts like Liu's may have multiplied the sites of resistance to the unequal treaties and achieved a measure of ‘decolonisation’ on the periphery of central government control.     

The theory and implementation of the People's Republic of China's revolutionary diplomacy

The foreign relations of modern China, starting from the birth of the People's Republic in 1949 until the Cultural Revolution, can be said to have had continuous ups and downs and twists and turns. Its underlying abstruse principles, while stemming from nationalism, contained for the most part the Chinese Communist Party's own revolutionary principles and individual revolutionary experiences. The Chinese Communist revolution was based on class analysis and class conflict, on struggle and ideology. This ideology determined how China viewed itself and the world; no views could be separated from the ideology of class struggle and class analysis. The leadership's adherence to this type of ideology led to the long-term instability of China's diplomacy. Though those who, like Mao Zedong, employed class revolution in order to seize political power while viewing class analysis, class struggle, and in particular the success of using class ideology in a united front policy as the magic wand of the revolution's success, were singularly able to adapt such views to China's foreign policy and diplomacy. This became the fundamental red line for China's foreign policy.     

The (Ineffective) Financial Statecraft of China's Bilateral Swap Agreements

Since 2008, the People's Bank of China has signed bilateral swap agreements (BSAs) with 35 foreign central banks. Collectively, these deals amount to nearly US$ 500 billion in Chinese renminbi (RMB) available to Beijing's foreign partners. What has led China to be so aggressive in its efforts to sign so many swap agreements? What are the political economic implications of the swap programme for the US‐centric global economic order? China's BSAs can be understood as a form of financial statecraft: the use of national financial and monetary capabilities to achieve foreign policy ends. China has deployed BSAs for both defensive and offensive reasons. Defensively, Beijing has sought to use BSAs to promote trade settlement in RMB thereby reducing China's vulnerability to the dollar's structural dominance in trade. Yet, as explained in this article, they have been ineffective in this regard. Offensively, Beijing has used BSAs as a short‐term liquidity backstop outside of the Bretton Woods institutions for partner countries in need. Here, there is greater potential for BSAs to impact the status quo economic order by enhancing Chinese economic influence. However, their potential is dependent on Beijing's willingness to act as a unilateral crisis lender and its ability to further internationalize the RMB.     

China's strategic partnership with Latin America: a fulcrum in China's rise

China has over the last two decades been committed to creating a strategic partnership with Latin American states by persistently extending its economic and political involvement in the continent. China's efforts in this regard reflect not only its desire to intensify its economic cooperation and political relations with nations in Latin America, but also its strategic goals of creating its own sphere of influence in the region and enhancing its ‘hard’ and ‘soft’ power in order to elevate China's status at the systemic level. With access to Latin American markets, resources and investment destinations, China may sustain its economic and social progress that bases its long cherished dream of restoring its past glory of fuqiang (wealth and power) and rise as a global power capable of reshaping the current world system. The enormous economic benefits deriving from their economic cooperation and trade may persuade Latin American nations to accept the basic premise of China's economic strategy: that China's rise is not a threat, but an opportunity to gain wealth and prosperity. This will help China gain more ‘soft’ power in and leverage over its economic partners in Latin America, and thereby help it to rise in the global power hierarchy.     

China's regional policies: how much hegemony?1

China is commonly assumed to be seeking hegemony in its region. Yet China's region involves it in relationships with major states with their own hegemonic or leadership interests—the US, Russia, Japan and India. This article examines each of China's regional relationships in terms of the prime interests of China's foreign policy framework. It concludes that it is important to distinguish between hegemonic capabilities and intentions: that while China will want to extend its influence as a regional power, its capability to do that will continue to grow in each of its subregions, its ability to exercise that power and influence will be limited. In the past its efforts have been largely to seek secure borders and economic opportunities and that for some years those objectives, together with energy security, are likely to remain the priority.     

The limits to China's non-interference foreign policy: pro-state interventionism and the rescaling of economic governance

China's foreign policy has been long committed to a principle of non-interference in the internal affairs of sovereign countries. While one could easily point out past and present-day inconsistencies in its implementation, this article argues that defenders and critics of the principle both rely on a limited interpretation of ‘interference’ or ‘intervention’ based on an ideology of Westphalian sovereignty. Particularly problematic is the conceptual distinction between the ‘political’ or ‘diplomatic’, on the one hand, and the ‘economic’, on the other. As Polanyi's concept of embeddedness reminds us, markets, society and politics occur simultaneously, and can only act as discrete realms in epistemological abstractions. It is thus argued that non-interference is a semi-formal institution that governs China's diplomatic engagements and affects its economic activities. While the totality of China's interactions with the world has diverse and sometimes contradictory impacts on global governance, non-interference itself has apparent consequences for the rescaling of regional economic governance. Specifically, this article contends that Chinese non-interference results in the empowerment of political elites at national levels, and thus in the (re-)emergence of the nation state as a gatekeeper and facilitator of the advancement of capitalist enterprises. As a result, through non-intervention, China's foreign policy undermines supranational regulatory approaches and fosters state-based regional architectures.     

A call for a new Japanese foreign policy: the dilemmas of a stakeholder state

Japanese foreign policy is at a crossroads. A global power transition is under way; while the United States remains the leading global power, across the globe non‐western developing states are on the rise. Within Asia, China is a growing presence, wielding expansive claims on islands and maritime rights, and embarking on a defence buildup. As power shifts across Asia and the wider world, the terms of leadership and global governance have become more uncertain. Japan now finds itself asking basic questions about its own identity and strategic goals as a Great Power. Within this changing context, there are three foreign policy approaches available to Japan: (1) a classical realist line of working closely with the US in meeting China's rise and optimizing deep US engagement with China by pursuing a diplomacy focused on counterbalancing and hedging; (2) a transformative pragmatist line of rejuvenating itself through Abenomics and repositioning itself in East Asia; and (3) a liberal international line of pursuing a common agenda of enhancing global liberal‐oriented norms and rules through multilateral institutions along with the United States and the Asia–Pacific countries. Current Japanese foreign policy contains a mix of all three approaches. The article argues that a greater focus on the second and the third lines would enhance the current approach; it would ensure that Japan is more in harmony with the global environment and help it work positively for global and regional stability and prosperity, thus enabling Japan to pursue an ‘honorable place in the world’ (as stated in the preamble to its constitution).     

A review of China's foreign policy decision‐making during the Cold War

In the past 10 years or so, gradual declassifications of official foreign policy documents in the Soviet Union, in China and in the United States have provided opportunities for research in the various fields concerned. More importantly, in the realm of China's international relations theory this has been a period for “letting a hundred flowers bloom” through translation, study, argument, and reflection. Particularly worth noting is that in recent years, research in China's decision‐making in foreign policy, which had hitherto been off‐limits, has been gradually opening up, resulting in many publications. An example is China's Foreign Policy Decision‐Making during the Cold War written by Professor Niu Jun of The School of International Studies of Peking University, and published by Japan's Chikura Publishing Company in September 2007.     

Not-so-new silk roads: Japan's foreign policies on Asian connectivity infrastructure under the radar

Scholarly narratives concerning China's Belt and Road Initiative (BRI) tend to contextualise this project within China's rivalry with the United States and Japan. Such interpretations often reduce and misconstrue Japan's initiatives in Asian infrastructure finance as mere reactivity to China's advances. This paper will showcase Japan's own foreign and financial policies regarding infrastructure in Asia and the New Silk Road regions since the end of the Cold War. I argue that Japan's presence in that field is underappreciated and under-researched, as Japan's infrastructural footprint in the New Silk Road significantly pre-dates the BRI. Furthermore, I stress the fact that Japan's foreign policy in Asian infrastructure finance featured important cooperative postures toward China, especially within multilateral development banks. The paper makes a contribution to emerging scholarship on the BRI—often reliant on strategic communications and projections—by highlighting Japan's role in regional infrastructure to show how our understanding of international relations and international political economy in Asia can be better informed by economic history and area studies.     

China's energy security

As the Chinese energy deficit increases at rates equal to or exceeding its economic growth, energy security raises an alarm among its policy-makers and the international community. This article asks whether China faces any threat to its energy security; and whether China's worldwide quest for energy is a threat to the regional and international stability. The main argument is that while China faces serious challenges in meeting its rising energy demand, its efforts to do so have been primarily domestically focused. In its foreign energy policy, China has behaved like a normal player in the international energy market, buying as much oil as it can and investing in as many places as it can afford. It is unlikely that the country is willing to seek overseas energy supplies at the expense of a peaceful regional and international environment which is a necessary condition for its continuing economic development.     

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.     

Italy's foreign policy toward China: missed opportunities and new chances

Abstract

This essay provides an account of the erratic and troubled history of the relations between Italy and the People's Republic of China since the 1950s. After reaching their highest point in the two years immediately following the Tiananmen events – when Italy, more than any other Western country, worked to break China's international isolation – they have considerably frozen for a long time. The reason has to be found not only in the crisis that, since 1992, has overcome the Italian political system, but even more so in the structural limits of Italy's economic foreign policy and in the lack of a coherent strategy aimed at promoting Italian goods in world markets that provide huge opportunities – opportunities mostly neglected by the political-economic Italian establishment. The Berlusconi government replaced this negligence with fear-mongering behavior and recurring and outspoken protectionist remarks of various centre-right leaders, who feared the potential damage caused by China's increased competitiveness (which represented, in their opinion, an unfair trade practice) to the national industry. Though too recent to say if it will bear fruit, Prodi has made a desperate attempt for Italy to make up lost ground by leading to China what has been emphatically defined ‘the greatest institutional and business mission ever organized by Italy’ just a few months after his comeback to Palazzo Chigi.     

Examining the Impact of Turkey's Approach Vis‐à‐Vis Syria into Turkey's Iraq Policy

The tension between “international order” and justice has long been a focus of critical attention of many scholars. Today, with the rise of the humanitarian crises, the debate is once again visible, and Turkish foreign policy is one of the most important areas of observation of this tension. Indeed, the U.S.‐led invasion of Iraq in 2003 paved the way for Turkey to actively engage in regional affairs. Meanwhile, the need to bring human justice into world politics makes Turkish foreign policy decision makers operate on a much more humanitarian basis. Nevertheless, active humanitarian engagement poses an important challenge to traditional Turkish foreign policy as it is mainly based on the notion of “non‐interference,” as well as on the elementary components of international order, by raising suspicions on the intentions of the Turkish authorities. This article aims to explore the challenges Turkey has been facing since the U.S.‐led invasion of Iraq, and diagnose Turkish foreign policy vis‐à‐vis Iraq in the shadow of the Syrian civil war from Hedley Bull's framework of “order” and “justice.” It argues that Turkey's recent fluctuations in the Middle East could be linked to Turkey's failure to reconcile the requirements of “order” with those of “justice” and the Turkish governing party's (AKP) attempts to use justice as an important instrument to consolidate its power both in Turkey and in the Middle East.     

Foreign Trade and Regional Development in China

This paper puts into focus the regional implications of China's recent open-door policy. The empirical analysis employs a cross-sectional approach with 1986 data. The results suggest that foreign trade is more readily translated into economic development in the most well developed and industrialized eastern coastal provinces.     

China's Energy Security: Challenges and Priorities

In a companion paper to the essays comparing China's and India's economic rise (Prime, 2009) as well as India's energy security (Dadwal, 2009), two specialists on China's energy industries review the country's challenges posed by the need to dramatically increase energy use in order to support economic growth while coping with pressures to reduce environmental impacts from emissions of greenhouse gases. After reviewing the current mix of fuels in the economy and discussing each major energy resource (in terms of proven reserves, production, consumption, and foreign import requirements), the authors focus on measures undertaken by the Chinese government and corporations to improve access to vital supplies. The paper covers efforts to enhance the country's energy security, which include diversifying sources of oil supply, purchasing oil and gas concessions and financing of energy infrastructure development in African and Central Asian countries, instituting reforms to encourage more efficient energy use, and developing alternative energy sources. Journal of Economic Literature, Classification Numbers: O130, P280, Q400. 7 figures, 2 tables, 82 references.     

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.     

The uncertain merger of values and interests in UK foreign policy

How should ethics and values relate to the British national interest? The idea that ethical commitments to distant non‐citizens should occupy a position within British foreign policy was a controversial element of Labour's foreign policy during the early part of their 1997–2010 tenure. Rather than undermining traditional national interest concerns, one of the defining themes within Labour's foreign policy was that values and national interests were becoming increasingly merged in a globalized world. The post‐2010 coalition government has made distinct efforts to differentiate themselves from their predecessors, crafting a more pragmatic and national interest‐based foreign policy approach. Despite this, significant continuities with Labour's ‘ethical dimension’ are evident and many associated policies and practices have survived the transition. Moreover, the suggestion that British values and interests are interrelated and mutually reinforcing has been re‐asserted, with renewed vigour, by coalition policy‐makers. The article traces the ways in which values and interests have become increasingly merged in the language of recent British foreign policy and examines the implications for our understanding of the UK's national interest. It argues that the idea of an almost symbiotic relationship between values and interests is fundamentally unhelpful and makes the case for greater disaggregation of the two. Although a zero–sum game need not exist between core national interests and ethical obligations abroad, the suggestion that they are mutually reinforcing obscures the tensions that frequently arise between these different realms of obligation. Using the examples of failed state stabilization and UK arms trade regulation, the article demonstrates how uncritical acceptance of the values–interests merger risks producing unstable policy formulations.     

British policy and European reconstruction after the first World War

The paper relates the concept of a European political identity to the development of the European Community's foreign policy. After a brief review of the idea of political identity as it developed in Europe over the last five centuries, the paper relates this concept to that of liberal democracy. It then turns to the European Community and the growth of its foreign policy. It addresses two questions: Could the concept of political loyalty to a territorially defined identity be replaced by that of institutional loyalty to not one, but a variety of overlapping institutions? Secondly, can the development of the European Community's foreign policy contribute to the development of a European sense of identity? Two short case studies, one on Yugoslavia, and one on economic aid to Eastern Europe, illustrate recent European Community foreign policy. The paper concludes with some speculations as to the future European political system and its applicability to other parts of the world.