Revision Note for Module 26

China’s Step Forward into the World

National Strength, Hard Power, and Soft Power

● Overall national strength is the sum of a nation’s strength in different areas, including
aggregate strength, potential power, and influence in the international community.
● There is not yet a consistent measurement, but both hard power and soft power are included
in measuring overall national strength.

Soft Power Hard Power

Characteristic Intangible elements of national Tangible elements of national strength
strength. Can be analysed based on that are quantifiable & measurable for
objective facts comparison
Example ● Cultural customs ● Economy strength
● People’s quality ● Military strength
● Cohesion of people ● Level of technology
● Government efficiency ● Natural resources
● Govts’ international reputation ● Human resources
● Diplomatic quality ● Extent of social development

Key Point 1: China’s participation in international affairs

1.1 China’s positioning on the international scene today
China’s rapid development in recent years has made it considered a world power. China has
been ranked high in some aggregate indicators, such as GDP and total export value. Yet,
because it has a large population, the imbalance in the country's development remains a concern.
On a ‘per capita’ level, however, China is still below the level of developed countries.

1.2 Strategies and process of stepping forward to the world

Since 1949, China has been stepping forward to the world and getting connected to other
countries:

Year Position Explanation

1949 Relatively Due to the engagement in Cold War between the East & the West, China
isolated tried to join the UN, the IMF & the WHO but was rejected

1971 Minimal China returned to the UN in 1971 but still not joining many international
participation organizations 🡪little incentive to participate

1979 Partial Participate more actively since the Reform and Opening-up (E.g. the
participation IMF, the World Bank, etc.)🡪 but merely a member & seldom proposed
important bills and did not have power to draft any agenda

1992 Full more involved with the world 🡪 not only as a part of international system
onwards participation but has had more comprehensive cooperation with international
community (E.g. join the WTO in 2001 allowing China to trade freely
with other countries) 🡪 further opens the country to the world since 2013
by setting up first Pilot Free Trade Zone in Shanghai & putting forward
the Belt and Road Initiative
Pros and cons of joining the WTO for China

Aspect Positive impact Negative impact

China’s external trade China cuts tariffs and further
volume has risen rapidly. opened up its market. Local
This attracts inflow of agriculture, industry and
Economic development foreign capital which helps finance are hit.
promote China’s economic
development.

According to WTO China has to adjust its trade

regulations, China has regulations and system
adjusted its trade regulations based on the decisions of the
and system to meet WTO. Its autonomy over its
Policy making international standards. It is policies has been harmed.
easier for its foreign trade
partners to follow, thus
reducing trade disputes.

Entry into the WTO allows China is often targeted at in

China to integrate with the trade disputes. This leads to
global trade system. This trade disputes between
strengthens the economic China and other countries
International relations and trade between China and and harms their relations.
other countries. This also
enhances China’s
international status.

China’s involvement in cultural exchange with other countries

China spreads Chinese culture through the following channels to enhance its cultural influence
and hence the effectiveness of its participation in international affairs:
1. Set up Confucius Institutes all over the world to promote Chinese language, Chinese
culture and Chinese values.
2. Conduct cultural exchange and soft sell Chinese culture and values through organising
international cultural and sports events, for example hosting the Olympic Games to
attract foreign tourist to have better understanding of Chinese culture
3. Broadcast promotional videos in foreign media and other places
Belt & Road Initiative

China’s Belt and Road Initiative (BRI) (一帶一路) is a strategy initiated by the People’s
Republic of China that seeks to connect Asia with Africa and Europe via land and maritime
networks with the aim of improving regional integration, increasing trade and stimulating
economic growth. The initiative defines five major priorities:

● policy coordination（政策溝通）;
● infrastructure connectivity（設施聯通）;
● unimpeded trade（貿易暢通）;
● financial integration（資金聯通）; and
● connecting people（民心相通）.

The BRI has been associated with a very large programme of investments in infrastructure
development for ports, roads, railways and airports, as well as power plants and
telecommunications networks.
 Benefits and Concerns of the Belt and Road Initiative for China and Participating Countries

China Participating Countries

Economic Growth: The BRI opens up Economic Growth: Improved

new markets for Chinese goods, infrastructure facilitates trade, attracting
fostering trade and economic growth. foreign investment, and boosting tourism.
Global Influence: By establishing and Infrastructure Development: BRI
strengthening economic ties with projects improve infrastructure like
Benefits numerous countries, China enhances its roads, railways, ports, and power plants.
geopolitical influence and soft power.
Technology Transfer: Collaborating
Resource Access: The BRI secures with Chinese companies can lead to the
access to vital resources like oil, gas, and transfer of technology and expertise,
minerals by improving infrastructure in helping local industries to modernize and
resource-rich regions. become more competitive.

Debt Risks: Massive projects increase Debt Dependency: BRI projects can
debt risk, potentially straining China's create debt dependency on China, risking
economy if returns are low. economic instability and loss of
sovereignty if loans aren't repaid.
Diplomatic Tensions: The BRI raises
Concerns
concerns about China's influence, Economic Imbalance: Chinese
causing tensions with the US and EU. investments may cause dependency,
undermining local industries and
reducing economic diversification.

1.3 Perception of China’s participation in the world by major countries and regions

As China becomes more involved in global issues, it brings both challenges and
opportunities to other countries and will generate mixed perceptions as a result.

Opportunities challenges

Developed countries, such China's development differences in ideology,

as European nations and the provides them with a large political, and economic
U.S. market, and Chinese systems often lead to
products have significantly disputes over these matters.
helped them access various
industrial goods at lower
prices

Most developing countries, usually have a more many of these countries still
such as those in Southeast welcoming attitude toward have concerns over
Asia and Africa China's participation in territorial disputes,
global affairs. This is mainly environmental problems, or
due to the large-scale imbalanced trade relations.
investments and
international aid that bring
new economic opportunities
for them.
1.4 Challenges Faced by China

As China becomes more active in international affairs, it faces several challenges:

1. Restrictions on Policy Making: Despite its increased involvement in international

organizations, China must adjust its development strategies and policies to comply with
international rules and restrictions. For example, joining the WTO required China to open
its markets and allow foreign investment.
2. Heavier Responsibilities: Recently, China has taken on greater responsibility in
international issues, such as reducing carbon emissions, providing aid to other developing
countries, and playing a more active role in resolving international conflicts. These
responsibilities may limit its policy flexibility and increase financial burdens.

3. The China Threat Theory: China's rapid development can cause other countries to
perceive it as a threat or potential competitor. For instance, the U.S. initiated a trade war
with China in 2018. Similarly, China's recent investments in the Belt and Road Initiative
have led some countries to view it as an economic, political, or even military threat.