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World Development Vol. 36, No. 2, pp.

274–292, 2008
 2007 Elsevier Ltd. All rights reserved
0305-750X/$ - see front matter
www.elsevier.com/locate/worlddev
doi:10.1016/j.worlddev.2007.06.009

Global Governance and Developing Countries:


The Implications of the Rise of China
JING GU, JOHN HUMPHREY
Institute of Development Studies, Brighton, UK

and

DIRK MESSNER *
German Development Institute, Bonn, Germany
Summary. — The size and rapid growth of China, together with its increasing assertiveness, repre-
sent a challenge to the established global order. The dynamics and the future impacts of these
power shifts for the architecture of global governance and the developing world are far from clear
and not at all determined. An analysis of China’s participation in the WTO and its stance on devel-
opment policy indicates that the extent to which China’s rise will create tensions varies according to
the ways in which the basic interests of China and Western countries clash.
 2007 Elsevier Ltd. All rights reserved.

Key words — global governance, globalization, WTO, China, Africa, development policy

1. INTRODUCTION 2000). The Economist (1999, p. 15) observed


that ‘‘The US bestrides the globe like a colos-
The dynamic rise of China as a global eco- sus. It dominates business, commerce and com-
nomic and political actor is a major topic of munication; its economy is the world’s most
current academic and political debates around successful, its military might second to none.’’
the world. This global power shift will be one Kagan and Kristol argued that ‘‘Today’s inter-
of the most important transformations in inter- national system is built not around a balance of
national politics in modern history. The direc- power but around American hegemony’’
tion that China and Western-Chinese relations (Kagan & Kristol, 2000, p. 392). After 9/11
take may well ‘‘define the strategic future of and during the preparation of the United States
the world for years to come’’ (Bergsten, Gill, for the Iraq conflict, this discussion culminated
Lardy, & Mitchell, 2006, p. 1). This discussion in the debate on a ‘‘unipolar era,’’ dominated
is relatively new. Until very recently, the OECD by a sole superpower, that could last for dec-
countries perceived themselves as the unchal- ades (Cooper, 2003; Kagan, 2003; Krautham-
lenged centers of the world economy and world mer, 2001; Münkler, 2005).
politics. This perception strengthened after China was not seen by the vast majority of
1989. Most discussions in the 1990s on the fu- observers in the field of International Relations
ture of the world economy and of the global as a significant global player that could seri-
governance architecture turned around the con- ously challenge the western dominated global
cept of an OECD-led world order, with the governance architecture. Zbigniew Brzezinski
United States, Europe, and Japan as the main argued that China was still a developing coun-
pillars (‘‘the triad’’). By the turn of the century try and therefore no serious challenge to the
the United States was perceived by many United States (Brzezinski, 2004). Ivo Daalder
observers as undoubtedly the single power in
world politics and in the world economy (Brze-
zinski, 1997; Ikenberry, 2002; Wohlforth, *
Final revision accepted: June 4, 2007.
274
GLOBAL GOVERNANCE AND DEVELOPING COUNTRIES 275

and James Lindsay’s study of the new dynamics crete global governance strategies implemented
in world politics after 9/11 focused on tensions by Western countries and China in specific glo-
within the transatlantic alliance, without con- bal governance arenas, the political and eco-
sidering that China might change the whole nomical interactions between the West and
game (Daalder & Lindsay, 2005). The global China, and the international political environ-
governance debate of the last 15 years, in trying ment.
to understand the main drivers and dynamics of Section 2 of this paper briefly summarizes the
globalization, also ignored the rise of China as increasing importance of China as a driver of
a significant actor until 2003–04 (Kennedy, global change and as a new agent in global gov-
Messner, & Nuscheler, 2002; Nye & Donahue, ernance. Section 3 then considers the analyses
2000; Rosenau, 1995). And last but not least, of both Western and Chinese scholars on the
the United States and EU security strategy doc- ways in which China’s emergence is likely to
uments in 2002 and 2003 continued to neglect be handled by the existing global powers and
China. global governance institutions. This is followed
Having ignored the rise of China, the global in Sections 4 and 5 by analyses of China’s im-
governance debate changed drastically as it pact in two areas of global governance: the
gradually became clear that the unilateral WTO and development policy. To what extent
behavior of the United States in Iraq and in do the activities of China in these areas support
the ‘‘war on terror’’ was not working. After dis- particular views about the likelihood of a
cussing the dynamics of a ‘‘unipolar era’’ for a peaceful and gradual or conflictual transition
decade, Western scholars woke up to the emer- to a new global governance order? Section 6
gence of China, which appeared now in the concludes that constructive engagement be-
international academic and public debates as tween China and the West is urgently needed
a major challenger of the Western dominated in order to avoid turbulences in the global gov-
world. The IDS Asian Drivers team detects that ernance architecture and describes favorable
China (and other Asian countries), are becom- preconditions, challenges, and risks that influ-
ing significant ‘‘drivers of global change’’ (Kap- ence such efforts.
linsky, 2006). Robert Kaplan reflects on how to
counterbalance the ‘‘China Threat’’ (Kaplan,
2005). Joshua Kurlantzick and Joshua Ramo 2. CHINA AS A DRIVER OF GLOBAL
emphasize the growing soft power of China in CHANGE
Asia and in other parts of the developing world
(Kurlantzick, 2006; Ramo, 2005), while Ted The extent of China’s impact on the global
Fishman perceives the rising Chinese economy economy has been widely documented. The size
as ‘‘as a new industrial power challenging the and rapid growth of China, together with its
world’’ (Fishman, 2005, p. 10) and Gabor increasing assertiveness, represent a challenge
Steingart dramatizes the global economic to the established order. If current growth rates
power shift, warning against an emerging are projected forward a further 20 years, and if
‘‘world war on wealth’’ (Steingart, 2006). the rapid growth of India and the other Asian
The emphasis of these European and North economies are put into the equation, then
American commentators is firmly on the dan- clearly we are witnessing a fundamental shift
gers and instability posed by the rise of China. in power centers in the global economy, with
To what extent, however, are these new per- its consequences for global governance.
spectives overstating the potential for generat- China’s impact on the world economy has
ing conflict of China’s (re)emergence on the been both rapid and remarkably broad:
world stage to the same extent that earlier anal- • The Chinese economy accounted for 2.9%
yses of global governance underestimated Chi- of global income in 1978, reached 4.7% of
na’s impact? In the following, we will argue global income in 2004 and is predicted to
that the rise of China does imply a tectonic reach 7.9% by 2020. Comparing China’s
power shift in global arenas in the longer term, growth process with other success stories in
with an eventual transition from a unipolar to a history (such as the United States, United
multipolar power constellation. However, the Kingdom and Germany), Winter and Yusuf
dynamics and the future impacts of these power conclude that ‘‘In terms of an expanding
shifts for the architecture of global governance share of world output, China’s growth spurt
and the developing world are indeterminate. has been much greater than any other yet
They will be shaped by factors such as the con- seen’’ (Winters & Yusuf, 2007, p. 6). It is
276 WORLD DEVELOPMENT

not China’s rate of growth which is unprec- tiatives for regional cooperation around
edented, but rather the size of its economy, finance, starting with the Chiang Mai Initia-
which means that its impact is much greater tive but now developing rapidly (Hefeker &
than the previous rapidly-growing Asian Nabor, 2006).
economies—Japan, Taiwan, and Korea. • As a result of its growing trade, China is
• China contributed 28% to the increase of perceived de facto as a significant actor in
global GDP during 1990–2005 (the United the WTO. Furthermore, trade and invest-
States: 19%; Rest of OECD: 18%). If rapid ment decisions in China have a widespread
growth is maintained, it is estimated that impact on development strategies in almost
China could account for 37% of global every developing country.
GDP increase during 2005–20—more than • China’s rapid growth, and the economic
all the OECD countries together (Dollar, success of the Asian economies more gener-
2007). ally, means that they are increasingly impor-
• The OECD Economic Survey of China tant contributors to global emissions of
predicted that it will overtake Germany greenhouse gases. China will become the
and the United States to become the world’s most important emission source of green-
largest exporter by 2010 (reported in the house gases worldwide by the end of the dec-
press, 17 Sept 2005). ade. Therefore, while China’s per capita
China is producing major shifts in global energy use and greenhouse gas emissions
financial flows and in worldwide trade and are low, 1 China will be an important ele-
investment patterns. The question, ‘‘What does ment of any global solution. As Tony Blair,
the rise of China mean for my country?,’’ is argued in March 2006, ‘‘Climate change is
gaining importance around the world (Winters one of the key environmental challenges we
& Yusuf, 2007, p. 1). all face. But we must not forget that [the
The economic rise of China also results in Asian economies] are not the main polluters.
large-scale changes in important global gover- We in the industrialized countries are. Asian
nance arenas. China’s increasing economic economies have a right to grow as we have.
weight, its importance to other actors in the It is up to us to help you grow with cleaner
global economy (notably the transnational technology. Asia will also have to be part of
companies and global buyers that have contrib- any global solution to climate change’’
uted so much to the expansion of the Chinese (Blair, 2006, p. 3).
economy), and the economic policy driven deci- These political spillovers from the economic
sions of the Chinese government are already rise of China need not necessarily translate into
having a huge impact on various global gover- an active role in global governance, as the case
nance arenas. Whether China wishes to be an of Japan shows. Despite its financial weight and
important global governance actor or not, it al- significant investments in international aid and
ready has this role: international organizations, Japan has not
• The rapidly-growing energy and resources played a significant role in global politics dur-
imports of China are shifting global prices ing the last decades. But China does not show
and have already started an international such reticence as it intervenes more decisively
debate on the ‘‘renaissance of geopolitical and pro-actively in global politics. As a result
conflicts’’ between the United States, Eur- China is changing the scope of action for other
ope, Japan, and China (Hale, 2005; actors not only as a spillover of its economic
Umbach, 2005). China appears now as a transformation, but also by developing capaci-
major competitor in the struggle for access ties and strategies to achieve the international
to strategic resources from Africa to Central outcomes it wants.
Asia, to Latin America. Current studies show that the process of inte-
• Its enormous currency reserves potentially gration into the world market is accompanied
convert China into a major global gover- by significant steps by the Chinese government
nance actor in the field of international in different fields of world politics (Chan, G.,
financial markets. Chinese internal decisions 2006; Guo, 2006; Heberer & Senz, 2007; Wang,
on monetary policies automatically have J., 2006). China, which isolated itself in the
global impacts. China has already played international system until the 1970s, and which
an important role in regional financial sta- had been suspicious of multilateral structures
bility following the 1997 Asian crisis and is that could constrain its sovereignty until
making significant contributions to the ini- the 1990s, is today party to 266 international
GLOBAL GOVERNANCE AND DEVELOPING COUNTRIES 277

treaties and more than 130 intergovernmental power of the most developed countries in the
and international organizations, and its compli- global economy.
ance behavior is perceived as generally high There is much at stake here. If the transition
(Chan, G., 2006, p. 70). 2 Similarly, China’s process becomes conflictual, a struggle for
participation in UN peacekeeping missions, its domination between old and new global players
pro-active attitudes within the recent UN re- at each other’s expense, would not only create
form processes, and its efforts to shape the instability but also distract the global powers
Kyoto process are signaling that a Chinese mul- and leave them unable to devote their resources
tilateralism strategy is emerging (Wang, 2003, to taking on the key issues of the day—those
as well as Cooper and Fues, in this volume stemming from economic, social, political,
and Bauer, Richerzhagen, and Scholz, in this and environmental globalization.
volume). Furthermore, Wang shows that China
is increasingly active in discussing non tradi-
tional security issues, such as migration, envi- 3. GLOBAL POWER SHIFTS AND CHINA
ronmental policies, and global diseases and
trying to build up global governance capabili- Most of the historical analysis of the ‘‘The
ties in these arenas of international politics rise and fall of the great powers’’ (Kennedy,
(Wang, Y., 2006). 1989) argues that fundamental global power
Bilaterally, China is developing strategies to- shifts during 1500–1945 resulted in rivalries,
ward resource and energy rich countries in conflicts, and wars. Paul Kennedy discusses
Africa, Asia and Latin America. Its engage- the rise of France in the eighteenth century
ments in Africa are provoking intensive debates and the related European wars, the power shifts
in Western countries (Fues, Grimm, & Laufer, and the tensions between the middling Euro-
2006; Sidiropoulos, 2006) and attempts to draw pean powers on the eve of the First World
China into aid governance mechanisms such as War, as well as many other conflicts that he
the OECD DAC and in-country donor com- interprets as a consequence of unequal eco-
mittees. Its ‘‘energy driven’’ foreign policies nomic growth between declining and rising
have led to dense relations with developing globally important states. 3
countries like Burma, Sudan, Zimbabwe, and Münkler (2005, p. 53 ff) describes in his study
Iran, stimulating discussions with western on empires that rivalries between old and new
countries about how to deal with such ‘‘delicate global powers did not automatically result in
partners.’’ Regionally, too, Beijing is promot- direct wars between the competitors, but often
ing regional cooperation processes that do not in conflicts and wars in the periphery of the glo-
include the United States. The Shanghai Coop- bal system. He shows that these kinds of com-
eration Organization (SCO), made up by petition in periods of power shifts seldom
China, Russia, Uzbekistan, Kyrgyzstan, resulted in wars in bipolar systems (like during
Kazakhstan, and Tajikistan, is a vehicle to the cold war) but frequently in violence in mul-
influence a very energy rich region. The tipolar constellations: ‘‘The stronger the com-
‘‘ASEAN plus 3’’ (China, Japan, South Korea) petition of various newly emerging global
process can be interpreted as another attempt powers, the stronger the pressures that force
to create a sense of community within the re- the old power to underline its hegemonic status
gion (Zongze, 2006). by imperial attitudes’’ (Münkler, 2005, p. 57).
China is becoming a major economic and This interpretation is highly relevant for the
political driver of global change, which means current global situation, inasmuch the world
a fundamental power shift toward China that order is shifting from a unipolar to a multipolar
will result in a transition from a unipolar, Uni- one.
ted States and western dominated world order, Against this background, Kupchan (Kup-
to a multipolar power constellation with the chan, 2001b, p. 14) states, that the rise of China
United States, China and perhaps Europe, Rus- will confront the United States and the West
sia, and India as its main poles. The question with economic and geopolitical dilemmas simi-
for global governance is how this transition will lar to those that America’s rise posed to Brit-
be handled. The answer to this question is not ain. We share this preoccupation, but will
at all trivial, given that it is historically unprec- argue that there is neither an automatism to-
edented that a developing country like China is ward peaceful power transitions nor toward
becoming a significant global governance actor, conflicts in the current period of major global
putting into question the hitherto unrivaled power shifts.
278 WORLD DEVELOPMENT

(a) Western perspectives on global power shifts states clashed, the tensions would be solved
by the use of force. In the ‘‘Newtonian-Age’’
Realist and neorealist authors are pessimistic of world politics, states were measured by mass:
about prospects for peaceful power transitions. territory, population, natural resources, indus-
Brzezinski (2004) describes why for the United try, and military power. In this kind ‘‘of inter-
States a shift from a global domination strategy national relations. . .balance of power made
toward a global leadership concept that accepts sense’’ (Adler, 2001, p. 139). From an institu-
the emergence of other ‘co-superpowers’ is nei- tionalist perspective the age of globalization is
ther easy nor likely: ‘‘An experienced European characterized by global interdependencies. Glo-
observer, comparing contemporary America to bal diffusion of trade, financial flows and pro-
ancient Rome, noted perceptively the ‘World duction, trans-border communication and
powers without rivals are a class unto them- global challenges like climate change encourage
selves. They do not accept anyone as equal, competing powers to pursue mutual gain
and are quick to call loyal followers friends, (Haass, 2005; Messner, 2006). Beyond eco-
or amicus populi Romani. They no longer fight, nomic and environmental global interdepen-
merely punish. They no longer wage wars, but dencies, the thickening web of international
merely create peace. They are honestly outraged organizations, regimes, and networks has cre-
when vassals fail to act as vassals’ (Bender, ated many more rule based global governance
2003, p. 155). One is tempted to add, they do arenas and instruments to embed conflicts than
not invade other countries, they only liberate. predicted by the realists, whose analysis is still
The author wrote this before 9/11, but his com- anchored in the ‘‘Newtonian-age’’ (Held &
ment strikingly captured the attitude (of) some McGrew, 2002; Mürle, 2006; Slaughter, 2004).
U.S. policymakers’’ (Brzezinski, 2004, p. 216). This observation is even more important when
From such a point of view, a significant conflict no fundamental ideological fault line (compa-
between the United States as the ‘‘old hege- rable with ‘‘the free world against communism’’
monic power’’ and China as the rising global conflict) between the West and China exists.
power is almost inevitable. Moreover the nature of power might have
Against the (neo)realist background other changed: territorial conquest pays less than it
observers compare the rise of an authoritarian used to; technological innovation, communica-
China with that of the Kaiser’s Germany in tion capabilities, and soft power are critical in a
the period before the First World War. Robert globally networked world, whereas military
Kagan suggests that ‘‘The Chinese leadership power remains useful to destroy enemies (as
views the world in much the same way Kaiser the Iraq war demonstrated), but not to shape
Wilhelm II did a century ago. . .Chinese leaders or even solve globalization problems (Nye,
chafe at the constraints on them and worry that 2002). Therefore, the global conditions for
they must change the rules of the international peaceful power transition in world politics
system before the international system changes could be better today than they have been in
them.’’ Therefore, Kagan believes that China the past. From this perspective, the embedded-
aims ‘‘in the near term, to replace the United ness of China in the global economy might
States as the dominant power in East Asia result in nonconfrontational Chinese global
and in the long term to challenge America’s po- governance approaches (Haass, 2005, p. 20;
sition as the dominant power in the world’’ Humphrey & Messner, 2006; Nye, 2002,
(Kagan, 1997, p. 3). p. 21).
An alternative, equally strong Western tradi- The second line of arguments developed by
tion is to stress the inevitability of interdepen- the institutionalists that differs from the realist
dence in international relations, that countries school of thought is about interests. Institution-
are linked inextricably in relationships that call alists recognize and accept the inevitability of
for cooperation through multilateralism mech- the anarchic structure of the global system,
anisms. From an institutionalist (or liberal) but they argue that the process, the existence
perspective, the rise of China looks different. of institutions, the interaction among states
There are two main lines of argument that dif- and resulting learning by them, can lead to
fer from the realist way of thinking. Firstly, cooperation among states (Reinicke, 1998, p.
Adler (2001) argues that in the past interna- 51). From this point of view, power transitions
tional relations were in a ‘‘Newtonian-like and the rise and fall of great powers do not
stage.’’ States were sovereign and thus indepen- automatically result in violent conflicts or
dent to act at will. When interests between even war. There is always a coexistence of
GLOBAL GOVERNANCE AND DEVELOPING COUNTRIES 279

opportunities for cooperation and risks for global governance and the global economy for
conflict in global governance processes. The global governance in areas relevant to develop-
outcome of the transition of power depends in ment policy and practice?
this institutionalist perspective on the strategies There have been many debates in China on
of the actors involved, their interaction and the its role in the international system in recent
existing international institutional setting. years (Hu, 2006; Huang, 2005; Pang, 2005,
2006; Yu & Zhuang, 2005). For example, a re-
cent, multilevel evaluation of China’s national
(b) Chinese perspectives on global power shifts power status concludes that by 2015, China
‘‘could possibly reach the level of a semi-super-
Given the current structural distribution of power and rank second in the world. . .the
economic, political and military power in the change of China’s power status will mainly de-
global system, China’s positioning in world pend on domestic and international factors,’’
politics and world governance has to be put pri- including unilateralism in US foreign policy
marily in the context of US policy. US foreign and the effectiveness of EU political integra-
policy has for many years been informed by the tion (Yan, 2006, p. 31). Yan concludes by
realist approach to international relations. This arguing for the necessity of avoiding ‘‘political
is not a novelty of the current George Bush errors’’ domestically and internationally, rec-
Administration: it was the approach of earlier ognizing ‘‘the necessity for China to adopt ac-
Secretaries of State, including Kissinger, and tive policies to protect its rapidly expanded
influential policy advisors such as Brzezinski. national interests. Active policies will make it
At the same time, as Krasner observed in the possible for China to rise in decades instead
context of an earlier Asian challenge to US pre- of centuries’’ (Yan, 2004, pp. 51–53). While
dominance, US foreign policy has long seen the Yan does not explicitly talk about conflict with
world in terms of friends and enemies: the United States, there is clearly scope for riv-
alry and tensions. The argument that China’s
‘‘With few exceptions American policymakers have rise can be accommodated by the international
had a Manichean view of the world, a perspective
political system in a peaceful, nonconfronta-
that reflects the profound and pervasive influence
of Lockean liberalism on foreign policy. Other coun- tional manner is put forward by Feng Yong-
tries have been classified as either good or evil, as ping of the China East Normal University.
friends or enemies. The United States has found it His constructivist analysis of the historical
difficult to identify common interest with enemies transition from British to US dominance seeks
or irreconcilable conflicts with friends. In dealing to explain the ‘‘anomaly’’ of the peaceful nat-
with enemies and American policymakers have been ure of this process in terms of identity con-
very alert to any alteration in the relative distribution struction. He argues that continuing to focus
of power and unconcerned with absolute gains’’
(Krasner, 1986, p. 787). only on power competition simply reinforces
superpower competition. Instead, he argues
Clearly, current American political opinion is that ‘‘the main variable enabling a peaceful
very concerned about China’s growing eco- transition was the interaction between the
nomic power and political influence in Sub- two countries which caused a change in their
Saharan Africa, Latin America, and Central mutual recognition of identities.’’ The percep-
Asia. 4 A translation of this generalized con- tion of threat was steadily diminished as
cern into practical policy could create a self-ful- ‘‘friendship identities based upon security
filling prophecy of conflict and global disorder. dependability’’ facilitated a peaceful power
Indeed, there is a school of thought in China’s transition. Feng seeks to draw out parallels be-
security community that America is engaged in tween the rise of the United States and Brit-
a new ‘containment’ strategy designed to con- ain’s peaceful accommodation to this and
tain China and retain hegemonic control over contemporary China–US relations: ‘‘From the
the Eurasian heartland (for an extended discus- perspective of China, which can be considered
sion of this literature and debate, see Tow, in a similar state to the United States of that
2001, pp. 16–17). How do these views of China time, the example of successful transition
accord with China’s own perceptions of its undoubtedly holds deep implications and
emerging role in the world and its strategies provides a source of inspiration’’ (Feng, 2006,
with respect to global power shifts? And what p. 108).
are the implications of differences in perspective China’s foreign policy has to balance two
with respect to the emerging role of China in challenges. On the one hand, foreign policy
280 WORLD DEVELOPMENT

needs to reflect and pursue core national inter- economic growth. For example, South African
ests, including sustaining growth, with its impli- president Thabo Mbeki has gone so far as to
cations for securing resources and energy. The warn of the dangers of ‘‘a replication’’ of old
Chinese government also has to address serious colonial trade dependencies and the potential
internal challenges that are clearly acknowl- for it to be ‘‘condemned to underdevelop-
edged in government documents (such as terri- ment.’’ 7
torial integrity, regional imbalances, and China inevitably lacks a clear definition of
environmental degradation). On the other its international role because of its identity
hand, foreign policy also needs to address the dilemma—it falls between developed and devel-
pressures and responsibilities that the rest of oping countries. In spite of growing recognition
the world is placing on China because of the within China of its new global status, China’s
impacts it has and the anxieties that its rapid in- perception of its international role is informed
crease in influence tend to create (as described by the idea of its newcomer status. Pang argues
in Section 2). According to Guo Xuetang from that China has still not completed the process
Tongji University: ‘‘With the strengthening of of joining the international system, so the
China’s national profile, China has accelerated ‘‘joining mentality’’ is prevalent, with a lack
its integration with the world. China urgently of a ‘‘role-player mentality’’: ‘‘Currently China
needs a spirit of internationalism (responsibility pays more attention to the aspect of joining
toward international society) to melt away the than what role China should play and how to
suspicion toward China from the outside play it in the international arena. . .Mostly Chi-
world, so as to enhance its trust toward China’s na plays a passive, partial, goal-oriented and
development’’ (Guo, 2005). limited role’’ (Pang, 2006, p. 321). In this it
The Chinese approach to these issues can be may disappoint both developed and developing
summarized in three elements: interdependence, countries. As Pang notes, China is a ‘‘partici-
its identity dilemma, and pragmatism. China is pant’’ in the international system, but it neither
anxious not to make the world afraid of it, wishes to be a leader of a developing country
while it pursues its rapid economic develop- block, nor to side with the developed countries
ment. With respect to interdependence, China (2006, p. 321). This pragmatic approach, which
is aware that its rising power depends on world will be discussed in the context of the WTO in
trade. 5 The White Paper, China’s Peaceful the following section, is also a characteristic of
Development Road, issued by the State Council China’s UN Security Council participation.
Information Office in December 2005, argues Thus, the third distinctive element of China’s
that China’s economic growth and increasing global self-presentation is its cautious, reactive,
participation in world trade are in harmony and pragmatic diplomacy. This is where an in-
with the globalization process: grained cultural style combines with a deeply
pragmatic responsive mode toward the domi-
‘‘China’s foreign trade is mutually supplementary
with many countries. About 70% of China’s exports nant power in world society. Wang states:
to the US, Japan and the European Union are labor- ‘‘In Chinese eyes, ‘adjustments’ in domestic and for-
intensive, while 80% of its imports from there are eign policies are only natural as long as ‘principles
capital intensive and knowledge intensive. In the and goals’ remain unchanged. . .In the Chinese mind,
new structure of international labour division, the wise and far-sighted statesmen are those who can
country has become a key link in the global indus- ‘adroitly guide action according to circumstances
trial chain’’ (Section IV, p. 11). 6 (yinshi lidao)’’ (Wang, 1998, pp. 489–490).
The White Paper states that China makes a A primary principle of Chinese culture is the
huge contribution to world prosperity by being practical, common sense, and utilitarian way of
the world’s third largest importer. It wants adapting to particular relationships. In an
world society to see itself as in a ‘‘win–win’’ sit- interview with Joshua Cooper Ramo, the
uation with China. The same is true for China’s author of the ‘‘Beijing Consensus,’’ the former
trading relationships with developing countries, Singapore leader Lee Kuan Yew remarked that
including Africa, where trade is seen as inevita- ‘‘[The Chinese leadership] made ad hoc prag-
bly beneficial to both partners, irrespective of matic decisions as they went along, and then
the composition of the trade flows. China looked to whether that led to disorder or loss
emphasises this point because it is aware that of control. . .This is a controlled opening up,
there is now great disquiet among both devel- exposure to foreign ideas of people who
oped and developing countries about Chinese are absolutely sound ideologically. I detect a
GLOBAL GOVERNANCE AND DEVELOPING COUNTRIES 281

pragmatic step by step approach’’ (Ramo, on one’s rights, the idea of face, of not forcing
2005, p. 62). Pragmatism means that foreign a loss of dignity by compromising the other
policy is driven by core national interests, person. The underlying principle is, therefore,
including sustaining growth, with its implica- not self-realization and the development of
tions for securing resource and energy, and also one’s own personality, but preserving a social
being willing to work within the realities of glo- or family harmony, in which everyone can keep
bal power relationships. face. ‘‘The tradition of face-saving is also a
China’s pragmatic approach explains the col- source of over-emphasis on mediation in han-
lective mentality of a country anxious not to dling disputes, as the mediation approach
make the world afraid of it, while it pursues a would deal with the case privately—nothing
pathway of rapid economic development. How- being public there is no possibility of losing
ever, China is simultaneously a country with a face’’ (Gaojian, 2003, p. 71). This comes to-
colonial history and a firm unwillingness simply gether with the theory of reputation in neo-lib-
to accept Western moral and political hege- eral institutional theory, and with the element
mony. Intercivilizational equality and mutual of collective self-esteem. Brooks and Wohlforth
respect are not merely code-words for peace. define reputation in the following terms:
They also imply that mutual respect and the
importance of avoiding conflict should involve ‘‘The significance of reputation within institutionalist
the notion of ‘‘minding one’s own business.’’ theory points to a powerful admonition against uni-
lateralism. . . . institutionalist theory rests on the no-
For this reason, China strongly asserts, to Wes-
tion that states carry a general reputation for
tern dismay, its right to pursue its bilateral aid cooperativeness that determines their attractiveness
policy in the manner it sees fit, not accepting as a treaty partner both now and in the future agree-
what its sees as interference from the West. ments’’ (Brooks & Wohlforth, 2005, p. 516).
A consequence of these three elements of
China’s stance is nonconfrontation. In part, The comparison between United States ap-
this can be seen as a pragmatic response to proaches to global power shifts influenced by
China’s continuing relative weakness compared realism and institutionalism, with Chinese ap-
to the United States. Open confrontation peals to doctrines of intercivilizational harmony
would not serve China’s interests at the present and economic interdependence, reflect in part
time. For this reason, China stresses the multi- that the United States is the threatened power,
lateral route for solutions to global problems that it is tempted to take initiatives to respond
and conflicts. Multilateralism is pursued by to this. China is still the power that has to wait,
China as a means of avoiding conflict. China’s to allow its capacities to continue to grow, to re-
support for the UN reflects its desire to avoid act pragmatically to the larger power’s initia-
conflict and resolve disputes peacefully and, gi- tives, trying to curtail the latter’s use of its power.
ven the currently superior economic and mili- Hence, one interpretation by the United
tary power of the United States, this view is States and other countries of Chinese argu-
clearly pragmatic. Whatever the suspicion with ments about intercivilizational respect might
which Chinese intentions are treated, China be to point to a traditional Chinese figure,
persists in its official line on conflict resolution. Sun Tzu, who argued that a superior way to de-
This is stated particularly authoritatively in the feat an enemy is not militarily but psychologi-
Report of The Sixteenth National Congress of cally: ‘‘The warrior’s way is one of deception.
the CPC. In Section IX, ‘‘The International Sit- The key to success is to capitalize on your
uation and Our External Work,’’ it asserts that power to do the unexpected, when appearing
‘‘In the area of security, countries should trust to be unprepared’’ (March, 1990, p. 30). Patient
one another and work together to maintain information gathering (see Section 4 on China
security, foster a new security concept featur- in the WTO) while giving nothing away is the
ing mutual trust, mutual benefit, equality and key to a warrior of deception, while cultivating
co-ordination, and settle their disputes through the appearance of social virtues. For this rea-
dialogue and co-operation and should not son, Chinese reticence and statements of good
resort to the use or threat of force.’’ 8 faith are viewed with suspicion. For the Chi-
This approach to international relations is nese, things are different: ‘‘Humility, self-efface-
deeply embedded in the Chinese approach to ment, and the absence of pretension are
social and personal relations. A central feature cultivated social virtues’’ (March, 1990, p. 31).
of relations with other people and diplomatic What does this mean for global governance
relations generally is not insisting absolutely and the central issues of development policy?
282 WORLD DEVELOPMENT

The rise of the Asian economies in general does in these negotiations. China’s sense of its new-
create adjustment pressures for the global econ- comer status and its preference for keeping a
omy and in the architecture of global gover- low profile means that it was unlikely to re-
nance. Substantial differences in the Chinese spond to these demands.
and United States approaches to global gover- More broadly, there are concerns about how
nance and geopolitical competition may give China will affect the governability of the WTO.
rise to misunderstandings and exacerbate the Will China act as an ally of the developing
tensions created by the shifting balance of glo- countries in the context of Doha, or will it see
bal power. However, in order to see how these its long-term interests as lying more with the
differences might or might not lead to tensions industrially advanced countries? How much
and conflict, it is essential to examine China’s will China see its interests as requiring it to
stances in specific areas of global governance. challenge the current rules of the game, or in
In the following two sections, China’s behavior contrast, to support and sustain an orderly sys-
in the WTO and China’s policies toward devel- tem of trade? In other words, other countries
oping countries are examined. and observers wonder if China will disrupt glo-
bal governance of trade or strengthen it.
These dichotomized views of China’s likely
4. CHINA AND THE WTO behavior and impact fail to appreciate the
nuances of its position. China’s use of the dis-
The issue of China and its impact on the pute settlement system (DSS) at the WTO re-
WTO is frequently considered in terms of two veals that it can be assertive and willing to
areas of Western concern. The first relates to defend what it sees as its own interests, while
whether or not China is complying with the simultaneously working within the established
commitments it made as part of its accession WTO framework. Although trade rounds are
to the WTO. For example, in the strategic re- a highly visible manifestation of WTO activity,
view of EU–China relations that formed a key most of the organization’s work involves inter-
component of the EU’s Global Europe Trade preting and applying trade rules. Here, China
Policy Framework launched in October 2006, has made an impact through the DSS and,
the EU acknowledged the positive contribution above all, in the 55 cases in which it has partic-
of China to global and EU economic growth ipated in disputes as a third party.
and trade, but it also set out a range of criti- China’s goals in the WTO are to better pro-
cisms of what it defined as ‘‘unfair trade’’—spe- tect its interests, actively to involve itself in
cifically to want China to undertake further the development of the rules of multilateral
market opening, liberalize trade in services trade regime, including through the DSS, and
and investment, open the government procure- to build up its international image. In pursuing
ment market, end unfair state subsidies, and this strategy, China has used its experience in
‘‘fully reform’’ the Chinese banking sector. 9 the WTO to build up its capabilities, learn
The second issue relates to the participation about how the organization operates, influence
of China in the Doha round negotiations. The the WTO’s procedures and defend its own eco-
EU trade Commissioner, Peter Mandelson, ar- nomic interests. China has participated in the
gued in 2006 that ‘‘China has reached a stage in DSS in three ways: as a party, whether as a
its development when it is legitimate to point to plaintiff or as a defendant; as a participant in
China’s growing responsibilities: to maintain an the Doha Round Working Group on the
open global trading system, to help deliver a DSS, calling for changes in the way the settle-
global trade deal in the WTO, and to remove ment system operates, and finally, as a third
barriers to further trade’’ (Mandelson, 2006). party to disputes involving other countries,
Similarly, the Financial Times reported that making its own comments on the legal aspects
Susan Schwab, the United States Trade Repre- of the disputes.
sentative, ‘‘expressed surprise that China was Up until the end of 2006, China was only in-
willing to allow other developing countries to volved in four DSS cases as a defendant, and
represent their interest in the Doha talks just one as a plaintiff. 10 Its first case was as
through the ‘G6’ negotiating group, which in- one of a large group of plaintiffs in the steel
cludes the European Union, the US, India, Bra- dispute with the United States. China very
zil, Japan and Australia’’ (McGregor, 2006). much saw this as a safe learning experience
Both the European Union and the United under the protective wing of other plaintiffs
States want China to play a more active role such as the EU. This is an example of its
GLOBAL GOVERNANCE AND DEVELOPING COUNTRIES 283

cautious, reactive role. In the short period of developed country members could bring in
time since its accession, China has used its any one year. Specifically, China proposed that
experiences as a defendant to better understand
‘‘Developed country Members shall exercise due re-
the workings of the system and to better re- straint in cases against developing country Members.
spond to future trade disputes. The extent of Developed country Members shall not bring more
China’s developing learning curve is seen in than two cases to the WTO Dispute Settlement Body
the contrast between China’s handling of its against a particular developing country Member in
first dispute as a defendant and subsequent one calendar year’’ (TN/DS/W/51/Rev.1, p. 2).
ones. In the first dispute, over tax rebates
for domestically-produced integrated circuits, No similar constraint would be placed on
China immediately climbed down in the face developing countries. Second, if a developed
of a threat by the United States to provoke a country brings a case against a developing
panel proceeding. It did so because of its lack country that is not supported by the Panel or
of experience as a defendant and its consequent the Appellate Body, the developed country
anxiety not to lose face. member will pay the developing country mem-
However, in three subsequent disputes relat- ber’s costs (see TN/DS/W/51/Rev.1, p. 2).
ing to tariffs on imported automotive compo- In making such proposals for reform, China
nents, China has not climbed down, even positioned itself as an active and responsible
though the United States was joined in the dis- developing country, recommending that one
putes by Canada and the EU. These countries way of unblocking the disputes mechanism is
filed cases against China, claiming that China to restrain developed countries from using it
was charging unfair tariffs on imported auto as a means of harassing developing countries
parts, acting inconsistently with relevant Arti- that lack the human and financial resources
cles of the GATT 1994 and WTO obligations. necessary to sustain frequent litigation. In
China allowed the matter to go to a panel doing so, Luan argues that this Chinese pro-
referral in October. A trade expert at a Minis- posal should be seen as a cultural symbol. In
try of Commerce think tank, Mei Xinyu said: its cultural traditions Yi, that is, Right, is
‘‘The final result of the trade row will certainly important. It refers to just, impartial, and ra-
be decided through the parties’ relevant eco- tional legal provisions. However, to actualize
nomic and political capacities, alongside their the Yi it is also necessary to consider Mou, that
mastering of WTO rules and negotiation.’’ 11 is, Tact. This Chinese proposal would make the
According to one senior Chinese researcher, settlement of disputes on the basis of goodwill
‘‘It depends on how important this automobile and trust more likely (Luan, 2003, pp. 1114–
policy is for the domestic industry. China can 1115).
always use the skills she learned from the The third and most substantial aspect of Chi-
Americans in the steel disputes.’’ 12 In com- na’s participation in the DSS relates to its par-
mon with other areas of Chinese diplomacy, ticipation as a third party in disputes. By 2006,
the strategy is to listen and learn and then China had been involved in 55 cases as a third
use the learning to improve negotiating capac- party, and China is involved in about half of all
ity. WTO cases as a third party. Any member hav-
The second area in which China has been ac- ing a substantial interest in a matter before a
tive around the DSS has been reform of the dis- panel and having notified its interest to the Dis-
pute settlement mechanism itself in the Doha pute Settlement Body can be a third party to a
Round Working Group. China is concerned dispute. This means that it can make written
both with the problems of delays in panel pro- submissions to the panel and subsequently re-
ceedings and also the technical and administra- ceive the submissions to the first substantive
tive difficulties faced by developing countries. meeting of the panel by the parties to the dis-
China addressed the latter through tabling Spe- pute. For a WTO member, being a third party
cific Amendments to the Dispute Settlement means gaining experience while investing few
Understanding- Drafting Inputs from China resources (material and symbolic), and coming
(WTO, TN/DS/W/51/Rev.1, 13 March 2003, to integrate oneself into the system.
pp. 1–3). This proposed a number of ways in China as a third party has mainly been in-
which developing country members of the volved in two categories of disputes. One is dis-
WTO might gain protection from cases brought putes in which China has substantial trade
by a developed country members. First, there interests and when the result of the case will
would be a limit on the number of cases that have direct impact on China. The other is
284 WORLD DEVELOPMENT

where there are no obvious effects on China but clearly a risk that China’s interests would not
the dispute has significance for the WTO re- be fully represented by being a mere third party
gime, so that China’s interests will be affected rather than as a plaintiff. Acting as a third
indirectly. party, China reduced the financial costs of par-
An example of the former is the case concern- ticipation. More important, in such legal pro-
ing Rules of Origin for Textiles and Apparel cesses, China was still clearly only willing to
Products between the United States and India. provide an opinion, but in so doing acquiring
China, as an important manufacturer and ex- further legal skills for the time when it cannot
porter of textile and apparel products, acted avoid being a defendant.
as a third party. Though in the end it had to ac- To summarize, there are four nonmaterial
cept that the main party, India, was defeated, interests which influence China’s participation
China could still put forward its understanding policy as a ‘‘third party’’:
of WTO rules. China argued that the United 1. China does not run a great risk of direct
States had introduced new rules of origin that confrontation, and also no great diplomatic
were supposed to be for customs verification risk; so from the cultural point of view one
purposes, but were in fact for protectionist can see that China can be fully engaged in
trading purposes. By joining in this action with the DSS process, but without contradicting
other textile exporters such as Pakistan, Ban- its traditional Confucian attitude to litiga-
gladesh, and the Philippines, China learned to tion as such. It does not run the risk of los-
involve itself in a complex technical argument ing face when it acts as a third party.
about customs law and rules of origin, even if 2. China can gather great amounts of infor-
it was unsuccessful. Clearly textiles are a major mation and improve its ability to handle
source of China’s trade and association with its future disputes.
main partners or competitors in trying to shape 3. China becomes involved in the making
the rules of this trade is an example of respon- and application of the WTO rules: participa-
sible and engaged behavior. The complexity of tion in the trials of WTO cases means partic-
this issue shows that China is taking legal ad- ipating in rule making. Judges have a
vice and acquiring legal skills. creative role in interpreting WTO law during
China was in more successful company in the the dispute settlement process.
dispute with the EC over sugar subsidies, and 4. Participation as a third party can increase
in particular export subsidies. While two cate- China’s influence, as the frequency and
gories of sugar, A and B sugar, could be sold amount of China’s participation as third
profitably on the EU domestic market, C sugar party has already drawn the attention of
(according to internal EC regulations) had to other WTO parties and demonstrates Chi-
be exported, selling at the lower, world market na’s strength of will: ‘‘China is frequently
price. From the Chinese perspective, the key is- airing its opinion in WTO cases making
sue was whether subsidies to A and B sugar clear its view and position to the other mem-
were cross-subsidising exports of C sugar. Chi- bers, expanding China’s influence in the
na focused exactly on this weakness, arguing in WTO’’ (Ji & Jiang, 2005, p. 4).
its submission that ‘‘the higher revenue sales in These findings contradict the usual argu-
the EC sugar market effectively financed part of ments about China’s low profile in the WTO.
the lower revenue sales on world markets,’’ and Given that attention is now directed primarily
that ‘‘by funding the portion of the shared fixed to the DSS, following the continuing failure
costs of production attributable to the lowered of the Doha Round, China is asserting itself
priced products, that is, C sugar, the demon- in this key area while supporting the procedures
strable link between the EC governmental ac- of the WTO.
tion and the ‘financing’ was well established’’ Song (2003, p. 194) emphasizes the difficulties
(WTO, TN/DS/W/51/Rev.1, 13 March 2003, of characterizing China’s position as either a
pp. 1–3). This was the very argument that the developing country wanting fairer trading con-
Panel and Appellate Body both accepted ditions for developing countries or an emerging
(WT/DS265/R, WT/DS265/AB/R, WT/ power with much to gain from the maintenance
DS266/AB/R, WT/DS283/AB/R, 15 October of the economic order created by the WTO.
2004, 28 April 2005). China’s WTO membership does not appear,
The sugar case was important to China. Chi- on the available evidence, to represent anything
na’s sugar prices have dropped 35% following more than the challenge of a new, but obvi-
trade liberalization, so much so that there was ously extremely substantial, competitor in the
GLOBAL GOVERNANCE AND DEVELOPING COUNTRIES 285

global economy. For the existing economic chan observes, even if from an institutionalist
heavyweights of the global economic system perspective global interdependencies and the
this challenge is serious and, as various trade existing network of global governance institu-
disputes suggest, the clash of the respective eco- tions may make contemporary power transi-
nomic interests can, at times, be raw. However, tions easier to manage, contests over critical
in terms of the politics of the Doha trade resources (water, oil, lines of communication)
round, China’s challenge emerges more sharply are still likely to occur (Kupchan, 2001c, p.
in the context of a negotiation vacuum and 168). In the area of development policy, Chi-
the capacity to translate national economic na’s pragmatic goals of securing economic re-
strength into political bargaining power. sources and diplomatic support comes up
The deeper resonance rests with the accretion clearly against Western concerns about China’s
of economic and political power by China both increasing competitive strength and influence
in the WTO and in the wider global economy and its reluctance to play by the same rules as
itself. This is more than an issue of good behav- the OECD countries.
ior and responsibility. It is about the growing The rise of China presents a potential chal-
potential for China to author a shift in the lenge to the development policies and strategies
character of the organizational and systemic of the industrialized countries. The OECD
cultures of trade governance and the continuing countries, through the Development Assistant
national interests at play. Committee, agreed a set of principles, also sup-
With regard to the WTO, and particularly ported by African countries, which emphasizes
the negotiations of the Doha Round, China the importance of trade liberalization, financial
was accused of adopting a conspicuously low reform, market reforms, and conditionality—
profile. It argued privately (and perhaps some- aid made conditional on adherence to particu-
what disingenuously) that the concessions it lar commitments on economic reform, human
made as part of its entry into the WTO made rights, and good governance. China’s policies
it difficult for it to be advocating a new round have openly challenged these positions, making
of market-opening measures (Gao, 2007). As it clear that China views the motivations of the
we have argued above, this notion of a low pro- OECD countries with suspicion and aligns it-
file is somewhat questionable—ignoring as it self as a defender of Africa against them. As
does the cultural differences of negotiating Luo puts it, ‘‘In Africa, debt related issues such
styles involved. China identified itself as a as borrowing, paying back loans, debt relief
developing country which does share economic and debt rearrangement are definitely not sim-
interests with other leading developing coun- ple economical issues, they are complicated
tries. However, it is clear from Doha that, polit- political issues as well. The Paris Club lead by
ically as much as economically, China is at a the United States usually use debt as a tool,
major crossroads in its relations with the devel- and adopt means like threats and promises to
oped economies as much as the developing push its African policy, and open convenient
economies. This should represent a source of doors to expand its interests.’’ (Luo, 2006, p.
opportunity for constructive engagement rather 215).
than a risk of strategic trade confrontation. The This challenge is disconcerting to the OECD
challenge for the world is to recognize this and countries. Murphy (2000, p. 797) suggests that
grasp the opportunity. The encouraging ele- the success of the industrialized countries in
ment here is that there appears to be some rec- creating a particular agenda for development
ognition of this in recent EU statements. 13 has been based upon a combination of financial
power (aid, influence in international financial
institutions, etc.), the credibility that goes with
5. DEVELOPMENT POLICY strong and wealthy economies, and the ability
to define development agendas.
If the behavior of China in the WTO suggests China’s rise undermines all three of these fac-
that for the time being it is willing to pursue tors. First, it presents a challenge to the devel-
what it perceives as its national interests, but opment project of the Western countries,
within the existing institutional framework, offering an alternative view of what develop-
the impact of China on development policy, ment is and how to achieve it. China has not
particularly but not exclusively in sub-Saharan followed the standard Washington Consensus
Africa, shows more clearly the tensions and prescriptions with regard to economic liberal-
rivalries between China and the West. As Kup- ization. In many respects, it diverges from
286 WORLD DEVELOPMENT

them. And for a country growing for over 20 Africa’s rise up the Chinese government’s
years at rates unimaginable outside of Asia, agendas results from political-strategic and eco-
the argument that growth would have been nomic factors. China has long sought diplo-
even faster had the standard prescriptions been matic support in Africa, as highlighted by
adopted is simply not credible. A further conse- Luo (2006), Tull (2006, pp. 460–461), and Jiang
quence of this rapid growth is the increasing (2006). Africa’s large number of countries pro-
importance of China as a trading partner and vide support for China’s broad diplomatic
a potential source of investment and aid. As interests. China looked to Africa for support
Stephen Chan observes, China is seen by many in the 1960s, promoting the Third Way as an
countries as an opportunity: ‘‘It is an African alternative to both Soviet and United States
scramble for China more than the other way influence. This culminated in China’s accession
round’’ (Chan, S., 2006). to the United Nation in 1971, which was
Second, while China is not yet able to chal- strongly supported by African states (Jiang,
lenge Western hegemony in international finan- 2006, pp. 7–8). Clearly, the Taiwan issue was
cial institutions or even to challenge Western and is central, with the Beijing government
aid spending, its aid is both symbolic and for repeatedly harnessing African diplomatic sup-
some countries substantial. According to Kur- port to block Taiwanese membership of organi-
lantzick, China became the largest foreign zations such as the WHO. Such support has
investor in Cambodia in 2005 and its foreign also been important in the constant political
aid is double that of the United States in Indo- battle to reject UN motions critical of China’s
nesia, three times as large in Laos, and four human rights record. Both Tull and Jiang trace
times as large in the Philippines (Kurlantzick, the diplomatic offensive in Africa to the period
2006, pp. 3–4). Although Chinese aid to Africa after Tiananmen Square in 1989, when China
is on a lower scale, it is more visible and more was isolated and under pressure from the West.
of an overt challenge to Western policy. Chi- Thereafter, the emphasis upon South–South
na’s $2 billion loan to Angola, which enabled dialog and cooperation increased as part of a
that country to avoid IMF conditionality, is deliberate policy to engage with states that were
widely cited as an example of China undoing less critical on human rights issues and were
Western policy to gain access to Africa’s re- held, publicly at least, to have shared experi-
sources (Alden, 2005, p. 6). 14 ences of Western colonialism and post-colonial
Third, Kurlantzick observes that China is human rights criticism. For one observer,
‘‘challenging US ‘soft power’ – the combination ‘‘Relations with Africa are still the most impor-
of economic vitality, cultural pull, trade and tant and reliable part of China’s foreign rela-
diplomacy that, as much as military force, has tions. China and Africa relations are the base-
made the US the pre-eminent force in the point of Chinese diplomacy’’ (Zhang, 2007).
world’’ (Kurlantzick, 2005, p. 28). Trade, China’s increasing presence in Africa is also
investment and aid are reinforced by cultural linked to a search for resources to sustain its
exchanges and the expansion of Chinese lan- rapidly-growing economy. With respect to en-
guage schools, scholarships to Chinese universi- ergy, in particular, Africa is one of the areas
ties and training programs. Thompson (2005) of the world with newly-developing oil re-
highlights China’s efforts to build alliances in sources that have not been tied up by Western
the region and the attractiveness of its practical countries. China’s imports from Africa are
support (infrastructure, healthcare, education, overwhelmingly resource-based. The most
etc.). At the Beijing Summit in November important trading partners for China in Africa
2006, China promised to double aid to Africa are exporters of oil and minerals, with the five
by 2009, 15 grant $5 billion in concessional cred- largest exporters to China being Angola, the
its and a further $5 billion to support Chinese Democratic Republic of Congo, Equatorial
investment in Africa and to make further invest- Guinea, South Africa, and Sudan. Even South
ments in African human resource development. Africa’s exports to China are now overwhelm-
It is important to note, however, that the ingly mineral-based (Tull, 2006, p. 472). The
Summit was only the culmination of intensive goal is not only to secure resources now, but
diplomatic efforts to court Africa’s leaders. Be- also to obtain future exploration rights, and
tween them, President Hu Jintao and Premier this has a strong diplomatic element.
Wen Jiabao made eight visits to China from The manner of China’s engagement with Afri-
2000 to 2007. China has invested large amounts ca has caused concern, if not outrage, in Western
of diplomatic time and effort in Africa. development agencies. Government officials
GLOBAL GOVERNANCE AND DEVELOPING COUNTRIES 287

express their views cautiously. The UK Secre- African countries in the international arena and
tary of State for International Development, bilateral field, efforts should be made to actively to
Hilary Benn, said, ‘‘China will come to see that promote multilateral dialogue mechanisms, eliminate
mistrust through active dialogue, as well as strength-
it has the same interests as the rest of the world en the friendship and cooperative fruits as a result of
in ensuring stability, fighting corruption and the efforts of decades’’ (Zhou, 2006).
ensuring sustainable levels of debt in Africa.’’ 16
This highlights three areas of concern for OECD President Hu Jintao’s visit to Zambia in Feb-
countries about China’s role in Africa. ruary 2007 was marred by protests over compe-
Other commentators are less measured. Tull tition from textile imports from China and by
argues that ‘‘China’s economic impact may complaints over working conditions in Chi-
prove to be a mixed blessing, whereas the polit- nese-owned mines. Even before then, com-
ical consequences of its return [to Africa] are plaints about the use of Chinese labor in
likely to prove deleterious,’’ and he goes on to infrastructure projects in Africa had filtered
argue that Chinese policies benefit elites in Afri- back to Beijing, leading to high-level discussions
ca rather than ordinary citizens (2006, pp. 460 about potential damage to China’s reputation
and 466). Similarly, Kurlantzick suggests that from the activities of some Chinese companies.
‘‘the values and models China projects to In the face of these criticisms, Chinese prag-
Southeast Asia – and eventually to other devel- matism is likely to lead to policy changes.
oping countries – could be disastrous for a re- Whereas Tull was able to suggest in 2005 that
gion of nascent democracies and weak civil South African complaints about competition
societies’’ (2006, p. 2). from imported Chinese textiles would fall on
It is not too difficult for Chinese writers and deaf ears in China (2006, p. 473), by mid-2006
politicians to shrug off Western criticisms. Com- China had come to an agreement about volun-
menting on the issue of oil extraction in Africa, tary export restraint and promotion of Chinese
for example, Zhou Xiaojing, vice-director of the textile FDI.
Institute of Asian and African Development In some ways, China has been na€ıve in Africa,
Studies, State Council Development Research and to a lesser extent in terms of its relationships
Center argued in the People’s Daily Online that: with the rest of the world. Its ‘‘win–win’’ per-
• China is not a threat, China is not practic- spective on trade assumes that trade automati-
ing neo-colonialism. cally benefits both parties. It cites its own
• The United States imports three times experience as evidence that trade in commodities
more oil from Africa than China. 17 can benefit countries if they know how to put the
• Western oil companies are also investing export revenues to good use, thus rejecting one
heavily in African oil. of the main concerns of African countries. Criti-
• ‘‘The fundamental reasons for western cism of China’s trade policies, and concerns
countries deliberately playing up the ‘China about Dutch disease and commodity booms
threat theory’ is because they are afraid that may have come as a surprise. At the same time,
the enhancement of China–Africa relations developing countries are becoming more vocif-
will challenge western countries’ interests in erous about access to the Chinese market.
Africa’’ (Zhou, 2006). Whether it likes it or not, China will have to ad-
China also argues that Africa’s level of devel- just to expectations that it is a great power.
opment and resource endowment make the These tendencies signal that there is scope for
exploitation of natural resources an appropri- some approximation on aid and development
ate development strategy. It is up to Africans policies, in spite of current tensions. Whether
to use the resources that these exports generate China changes or not depends very much on
wisely to take development to the next level. how Africa itself expresses its concerns. If the
China faced many of the same problems in African Union or NEPAD voice concerns
the late 1940s and overcame them. about other aspects of Chinese policy in Africa,
It is not so easy for China to dismiss African then a response is much more likely than if the
expressions of concern. Zhou Xiaojing (see West voices the same concerns.
above) had to admit that a problem existed:
‘‘However, we must also realize that the African ver- 6. CONCLUSIONS
sion of the’China threat theory’ does have a certain
negative impact in some African countries. To de-
stroy the ‘theory’, in addition to continuing to main- We have argued that as a result of its out-
tain the political and economic interests of the ward oriented economic growth and its
288 WORLD DEVELOPMENT

embeddedness in the global economy, China club, nor inclined to accept the right of Western
has become a major driver of global change countries to make judgments on its policies.
and de facto a significant global governance Therefore, serious political efforts are necessary
actor. What China chooses to do or not to do to escape the competitive dynamics endemic to
can, and often does, have profound conse- international politics. Based on these observa-
quences for many other actors globally. The tions, it would be important to identify global
impacts of Chinese growth are changing the governance arenas characterized by level play-
conditions and room for maneuver in the glo- ing fields (like the WTO) and converging or at
bal economy—for developing and developed least complementary interests between China
countries alike. As a result, many global prob- and Western countries, to make rapid progress
lems will be insoluble without Chinese global in reducing mistrust and bringing forward
engagement. cooperative patterns of interaction. At the same
History and (neo)realist theory suggest that time, more conflictual areas (in terms of inter-
such a rise of a new global power will sooner ests and global governance institutions where
or later result in conflictual balance of power China feels discriminated against and threa-
strategies between the old and the new global tened) have to be contained, so that adversarial
drivers of change. This is by no means inevita- interactions can be minimized.
ble, but our theoretical arguments and our Secondly, we agree with Kupchan (2001b)
empirical case studies demonstrate that Wes- that the reciprocal construction of benign
tern and Chinese proactive political strategies images should enable the rising and the (rela-
toward a peaceful global power transition are tively) declining powers to view each other as
needed to avoid global turbulences. Four con- nonthreatening actors. Furthermore, old and
clusions are key here. new powers should agree on the main pillars
First, we have demonstrated that different and key elements of the new international
global governance arenas, characterized by dif- order. The dynamics in the WTO arena might
ferent interest structures and institutional set- again coincide with these preconditions for a
tings, are following different political logics. peaceful power transition. The controversies
The WTO arena is accepted by Western coun- on China’s role in Africa and as a ‘‘new donor’’
tries and China as the institutional context to as well as the perception of China as a major
deal with conflictive trade interests, based on a threat for the United States and the Western
common understanding of reciprocal interde- countries (in Asia, in global labor markets, in
pendencies and interests between both sides the fields of resources and energy, and as a
regarding a stable global trade regime. In addi- new motor of global climate change), that in-
tion the WTO is not a purely OECD-led organi- spire significant parts of Western academic
zation, but a more inclusive institution, and political debates, demonstrate that political
covering most parts of the developing world initiatives are needed to avoid a self-fulfilling
and based on legal procedures and unanimous prophecy of conflicts, turbulence, and a revival
agreement. This structure results in learning- of a global governance architecture based on a
oriented and nonconfrontational strategies of balance of power. The Western countries
the Chinese government and rule based behav- should accept that they are not any longer in
ior of Western actors. In this field, institutional- a position to prevent the rise of China and
ist optimism—that cooperation and common other actors of global change. The objective
institution building between new and old global should be to design a strategy toward China
powers is possible—seems to be justified. The that does not only constrain competition, but
development policy arena is different. The fierce develop common commitments on how to deal
competition on access to energy and resources together on pressing global challenges. Or as
in developing countries is much stronger here Kupchan put it: ‘‘both Americans and Chinese
than interdependent links and interests between should take into consideration how important
Western countries and China. Moreover the old are the broader images that the two polities
and the new powers do not agree on a common hold of one another. Politicians of both sides
institutional structure where they could deal should therefore exercise great caution and
with their conflictive perceptions and interests. avoid using diatribes against the other for
The developed countries would like to see the domestic political purposes. The top priority
OECD/DAC rules on development cooperation for the future is not getting the balance of
to be accepted by China, but China is neither power right. . .Instead, the goal is to embark
willing to be part of this Western dominated on a long-term process of rapprochement that
GLOBAL GOVERNANCE AND DEVELOPING COUNTRIES 289

will eventually succeed in fostering the mutual there is a lack of cultural and linguistic affin-
recognition of benign character’’ (Kupchan, ity and the norm and value settings of China
2001a, p. 171). and the Western countries do not coincide
Thirdly, our case studies (supplemented by easily. How to understand human rights?
the findings of Cooper and Fues in this volume) How to deal with political liberalization and
and the analysis of the Chinese debates on the democracy in national and international
rise of China in global politics demonstrate that affairs? Our analysis demonstrates that these
China does not yet have an irrevocably defined differences provide a fruitful ground for mis-
and comprehensive global governance strategy. understanding. Against this background it is
Chinese actors are still learning (rapidly) how not surprising that many Western authors
to build up global governance capabilities in are optimistic that a stronger Europe and its
many global governance arenas, and how to concomitant global power shift would not re-
balance national interests with regional and sult in violent conflicts between the United
global challenges and responsibilities. Further- States and the European Union (Daalder &
more, the Chinese government seems to be very Lindsay, 2005; Kupchan, 2001b; Nye, 2002).
aware of the fact that international stability But because of the aforementioned factors of
and a positive international perception of its culture, language, history, and value settings,
global rise are important preconditions for a some of these authors are less optimistic
smooth domestic transformation processes. about the prospects for the United States/
This makes China sensitive for external criti- West and China. Taking these arguments seri-
cism and amenable for a constructive engage- ously, long-term investments in common inter-
ment with Western countries. est building, making room at the table for the
Fourthly, although international interdepen- rising challenger in international organiza-
dencies could create certain common interests tions, forums or clubs, joint initiatives to deal
between China and the old powers, there are with global challenges, and the creation of
important ‘‘soft intricacies’’ that are often ne- common institutional networks will be chal-
glected in international relations theories: lenging but essential.

NOTES

1. In 2003 China’s per capita energy consumption was appeared as late as 1910, as the European general staffs
1/10 of the level in the United States and 1/5 of the were quietly finalizing their war plans’’ (Kennedy, 1989,
Western European level. p. 695).

2. A shift to legalism is also evident in regional trade 4. See, for example, the successive reports of the US
agreements. According to Wang, ‘‘The significance of Congress US–China Economic and Security Review
ACFTA [the ASEAN–China Free Trade Area] lies in Commission at http://www.uscc.gov/.
that it is China’s first foreign trade agreement in which it
agrees to resolve bilateral and regional trade disputes 5. See the paper by McDonald et al., in this volume,
through formal mechanisms. This represents a shift which emphasises the high level of integration between
toward a rule-oriented approach, or legalism, from the China and its regional neighbors. Another example of
assertion of absolute sovereignty and, to some extent, this interdependence is China’s massive holdings of US
sinocentrism, in China’s foreign trade relations’’ (Wang, dollars, which can be seen as a means of restraining US
J., 2006, p. 18). action against China.

3. Kennedy concludes at the end of his masterpiece


that ‘‘Those who assume that mankind would not be so 6. The full English version of this document can be
foolish as to become involved in another ruinously found in the People’s Daily Online, for December 22,
expensive Great Power war perhaps need reminding that 2005, available at http://english.people.com.cn/200512/
that belief was also widely held for much of the 22/eng20051222_230059.html.
nineteenth century; and, indeed Norman Angell’s book
The Great Illusion, which became an international 7. BBC News Online, ‘‘Mbeki warns on China–Africa
bestseller with its argument that war would be econom- ties,’’ December 14, 2006 available at: http://news.
ically disastrous to both victors and vanquished, bbc.co.uk/1/hi/business/6178897.stm.
290 WORLD DEVELOPMENT

8. Section IX, Report of The Sixteenth National available at: http://ec.europa.eu/commission_barroso/


Congress of the CPC. mandelson/speeches_articles/artpm036_en.htm.

9. As reported by the EU, http://ec.europa.eu/trade/ 14. The breakdown of talks between Sinopec and the
issues/bilateral/countries/china/pr241006_en.htm. Angolan state oil company Sonangol over the construc-
tion of the Lobito oil refinery in March 2007 indicates
10. A further case—relating to tax refunds, reductions that there are limits to the influence that China can
and exemptions to Chinese companies that might favour obtain in this way.
domestic products over imported, or require enterprises
to meet certain export commitments—was lodged by the 15. However, with no clear figure for the current
United States in February 2007. Chinese aid to Africa, the meaning of a doubling is
unclear.
11. People’s Daily, ‘‘China becomes victim of trade
protectionism,’’ available at: http://english.peopledai- 16. February 2007. See http://www.dfid.gov.uk/news/
ly.com.cn/200604/10/eng20060410_257189.html. files/china-africa-statement.asp.

12. Interviewed by Jing Gu. 17. To which he might have added that the share of oil
in total imports from Africa was lower for China in 2004
13. See, for example, Benita Ferrero-Waldner and than for the United States (Broadman, 2006, pp. 72 &
Peter Mandelson in the International Herald Tribune, 81).

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