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CHINA’S FOREIGN POLICY UNDER
XI JINPING
IMPLICATIONS FOR LATIN AMERICA
Christopher R Hughes
London School of Economics and Political Science
WTO
2001
GLOBAL FINANCIAL CRISIS
2008
19th PARTY CONGRESS
2017
RESOURCE MOBILISATION EFFICIENCY
EAST ASIAN DEVELOPMENT MODEL (JAPAN, TAIWAN, SOUTH KOREA)
WTO, MULTILATERALISM AND DOMESTIC REFORM
DOMESTIC
■ STATE OWNED ENTERPRISE (SOE)
REFORM
■ NATIONAL CHAMPION FIRMS
■ EXPORT LED GROWTH
■ PRODUCTIVITY
■ FINANCIAL REPRESSION
■ CURRENCY MANIPULATION
INTERNATIONAL
■ REGIONAL FTA (ASEAN+CHINA)
■ LEADERSHIP FROM JAPAN
■ ISOLATION OF TAIWAN
■ SECURITY OF SEA LANES
■ CHINA MODEL OF DEVELOPMENT
■ HARMONIOUS WORLD
■ GOOD NEIGBOUR
■ GLOBAL SOUTH
LINKING DOMESTIC AND INTERNATIONAL PROBLEMS
■ OVER-INVESTMENT (2008 41% OF
GDP)
■ LACK OF DOMESTIC CONSUMPTION
■ LOW PRODUCTIVITY
■ TRADE SURPLUS (9% OF GDP 2007)
■ RISE OF INTEREST GROUPS
■ PROPERTY BUBBLE
■ INEQUALITY (GINI 0.49 2008-9)
■ TRADE FRICTIONS WITH US AND EU
■ GROWING NATIONALISM IN CHINA
2008: THE GREAT REBALANCING
■ 20% DROP IN EXPORTS; 23 MILLION LOST JOBS
RESPONSE: OVER INVESTMENT: US$ 590bn.
INVESTMENT UP FROM 41% GDP IN 2008 TO 46% 2010-13
DEEPENING STRUCTURAL PROBLEMS
WHY SO COMPLICATED?
Wang Bing
1987 Dep Chief of Staff
Southern Fleet Air Force
1983 Established China Marine
Helicopter Company
Wang Jingyang, Ye Jingzi
Lobbying for BRI Shaanxi
General
Wang Zhen
Wang Jun
Chairman of the Board
of Directors, CITIC
US$107bn in BRI
Ye Xuanning Liaison Dept of PLA
General Political Affairs Dept
President of Carrie (Kaili) Group
Marshall
Ye Jianying
INTEREST GROUPS
THE ‘PRINCELINGS’
http://www.ne-asia.com/archives/view-1367-1.html
THE CHINA DREAM
Great Power Thinking
and Strategy in the
Post-US Era
(December 2009)
Not-so-young Turks
Liu Shaoqi
General Liu Yuan
Colonel Liu Mingfu
Halford Mackinder
1861-1947
’Heartland Theory’
Alfred Thayer Mahan
1840-1914
Theory of Sea Power
GEOPOLITICS
CONCLUSIONS
■ DOMESTIC STRUCTURAL PROBLEMS CAUSE GLOBAL INSTABILITY
■ SOLUTIONS CANNOT DEPEND ON RECOVERY OF DEMAND IN US AND EU
■ DOMESTIC DEMAND AND EFFICIENCY REQUIRES ECONOMIC AND POLITICAL
LIBERALISATION
■ MAYBE TRADE DEFICIT
■ DEMAND BETTER FOR GLOBAL SOUTH THAN EXPORT OF CHINESE CAPITAL
■ STAGNATION MORE LIKELY UNDER XI JINPING
■ NOT BAD FOR LATIN AMERICA – BUT NATIONALISM BAD FOR EAST ASIA

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China's foreign policy under Xi Jinping - Implications for Latin América

  • 1. CHINA’S FOREIGN POLICY UNDER XI JINPING IMPLICATIONS FOR LATIN AMERICA Christopher R Hughes London School of Economics and Political Science
  • 2. WTO 2001 GLOBAL FINANCIAL CRISIS 2008 19th PARTY CONGRESS 2017 RESOURCE MOBILISATION EFFICIENCY EAST ASIAN DEVELOPMENT MODEL (JAPAN, TAIWAN, SOUTH KOREA)
  • 3. WTO, MULTILATERALISM AND DOMESTIC REFORM DOMESTIC ■ STATE OWNED ENTERPRISE (SOE) REFORM ■ NATIONAL CHAMPION FIRMS ■ EXPORT LED GROWTH ■ PRODUCTIVITY ■ FINANCIAL REPRESSION ■ CURRENCY MANIPULATION INTERNATIONAL ■ REGIONAL FTA (ASEAN+CHINA) ■ LEADERSHIP FROM JAPAN ■ ISOLATION OF TAIWAN ■ SECURITY OF SEA LANES ■ CHINA MODEL OF DEVELOPMENT ■ HARMONIOUS WORLD ■ GOOD NEIGBOUR ■ GLOBAL SOUTH
  • 4. LINKING DOMESTIC AND INTERNATIONAL PROBLEMS ■ OVER-INVESTMENT (2008 41% OF GDP) ■ LACK OF DOMESTIC CONSUMPTION ■ LOW PRODUCTIVITY ■ TRADE SURPLUS (9% OF GDP 2007) ■ RISE OF INTEREST GROUPS ■ PROPERTY BUBBLE ■ INEQUALITY (GINI 0.49 2008-9) ■ TRADE FRICTIONS WITH US AND EU ■ GROWING NATIONALISM IN CHINA
  • 5. 2008: THE GREAT REBALANCING ■ 20% DROP IN EXPORTS; 23 MILLION LOST JOBS
  • 6. RESPONSE: OVER INVESTMENT: US$ 590bn. INVESTMENT UP FROM 41% GDP IN 2008 TO 46% 2010-13
  • 8.
  • 9.
  • 11. Wang Bing 1987 Dep Chief of Staff Southern Fleet Air Force 1983 Established China Marine Helicopter Company Wang Jingyang, Ye Jingzi Lobbying for BRI Shaanxi General Wang Zhen Wang Jun Chairman of the Board of Directors, CITIC US$107bn in BRI Ye Xuanning Liaison Dept of PLA General Political Affairs Dept President of Carrie (Kaili) Group Marshall Ye Jianying INTEREST GROUPS THE ‘PRINCELINGS’
  • 13. THE CHINA DREAM Great Power Thinking and Strategy in the Post-US Era (December 2009) Not-so-young Turks Liu Shaoqi General Liu Yuan Colonel Liu Mingfu
  • 14. Halford Mackinder 1861-1947 ’Heartland Theory’ Alfred Thayer Mahan 1840-1914 Theory of Sea Power GEOPOLITICS
  • 15. CONCLUSIONS ■ DOMESTIC STRUCTURAL PROBLEMS CAUSE GLOBAL INSTABILITY ■ SOLUTIONS CANNOT DEPEND ON RECOVERY OF DEMAND IN US AND EU ■ DOMESTIC DEMAND AND EFFICIENCY REQUIRES ECONOMIC AND POLITICAL LIBERALISATION ■ MAYBE TRADE DEFICIT ■ DEMAND BETTER FOR GLOBAL SOUTH THAN EXPORT OF CHINESE CAPITAL ■ STAGNATION MORE LIKELY UNDER XI JINPING ■ NOT BAD FOR LATIN AMERICA – BUT NATIONALISM BAD FOR EAST ASIA