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China cruised through 2008 with mixed results. While holding the Olympics catapulted it onto the international scene, the year-end global financial meltdown exposed its weaknesses viz. its export and investment sectors. China has been so dependent on the regular flow of investments from abroad to spruce up its manufacturing industrial base that once the exports sector (which contributes to nearly 36 percent of its GDP) showed drastic reductions the Chinese leadership went into a huddle to strategise economic bailout packages. This is considered crucial, as the legitimacy of the leadership depends on it maintaining consistent economic growth rates that generate employment opportunities for millions, and will therefore have far-reaching internal and external consequences. Specifically, as the financial crisis intensifies, the leadership’s responses should be examined in light of ground realities. The Beijing Olympics generated much interest, with China spending nearly $ 40 billion on these events despite facing one of its worst natural disasters in the Sichuan province. Externally, China’s relations with the United States are poised to be “strategic” as they are interdependent in these times of turmoil. However, China continues to hold negative views vis-à-vis India with hardly any progress made on resolving the border dispute. More importantly, Indian National Security Advisor and Special Representative on border issues with China Mr. M. K. Narayanan publicly expressed his “disappointment” at the Chinese stance in both International Atomic Energy Agency and Nuclear Suppliers Group meetings when the issue of considering civilian nuclear technology transfers to India came up. China’s concerted military modernisation, specifically deployments in Tibet and logistics build-up, anti-satellite test in January 2007 and other space missions have raised eyebrows in India. For the first time since then Defence Minister George Fernandez publicly declared China a “potential enemy No. 1,” Indian External Affairs Minister Pranab Mukherjee, addressing a meeting at the National Defence College in November 2008, said that the “rise of China is a concern” for India. This speech comes in the wake of his visit to Tawang, which has been at the eye of the storm between the two countries recently. To discuss these issues, World Focus is devoting a special issue to events in China in the last one year. Prof. Srikanth Kondapalli, Chairman of the Centre for East Asian Studies in the School of International Studies at Jawaharlal Nehru University, is the Guest Editor for this issue of World Focus. New Delhi G. Kishore Babu March 2009 Editor

Opportunities in Times of Turmoil:

China’s White Paper on Defence

Srikanth Kondapalli

 

In January 2009, China released its sixth White Paper on National Defence. The thrust of the paper in light of the “flux” in the international system is how to preserve the strength of China and influence global events for the foreseeable future. This paper elaborates for the first time on the armed services of the country viz. ground, naval, air and strategic rocket forces—with the latter three termed “strategic” services for the first time. In the backdrop of reports about the spread of non-traditional security challenges, specifically those linked to terrorism, the paper uniquely suggests ways to tackle the issue, specifically by coining “military operations other than war” (MOOTW). Unlike the previous white papers issued by China on national defence that have almost entirely ignored references to relations with India, the current white paper mentions the security and defence consultations that the Chinese military has been conducting with its counterpart in India.

 

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Staging China:

An Analysis of the Beijing Olympics 2008

Bhavna Singh

 

The Beijing Olympics have realized for China not only economic benefits that accrued from consistent double-digit GDP growth over seven years of planning and preparation and the boost given to tourism and merchandise industries during the follow-up period to the Games but also a metaphorical acceptance of its vibrant cultural advancement and the grit and determination of its people to influence the world at large. China has been increasingly foraying into non-traditional arenas of image enhancement and building soft-power resources. Since the interest in the Olympics coincided with China’s search for a new national identity and a move towards internationalization, the Games mark a great diplomatic leap. The Beijing Olympics successfully staged the emergence of an impending superpower and welded the nation together on an unprecedented scale. While national interests instigated the state to present homogenous consent by pruning dissent, global expectations of promoting human rights and humanist approaches to solving tensions within the state need to be taken into cognizance while formulating state directives if China wants to emerge as a responsible global player. There is still a need for endorsement of a more cooperative and collaborative approach by the Chinese leadership.

 

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How Far is China from Democracy

and Rule of Law?

Jagannath P. Panda

 

The pressure for political and legal reforms has been building within China for some time now. The lack of a just order within the newly built market framework has provided the impetus for decisive political action. Political changes in China are manifest in many aspects such as partial liberalization, good governance, improved legal system performance and gradual democratization. These aspects are characterised by incrementalism—a process of trial and error. Importantly, the concept of “rule of law” has been acknowledged as a constitutional principle and is today considered a key index of China’s economic and political strength. Many intellectual advocates foresee a model that evolves naturally from China’s domestic governance problems and advantages rather than being readymade. While debate continues on China’s future course of action in the international arena, its domestic reform/ change in the political vis-à-vis legal systems does indicate a state in transformation providing adequate stability while it grows economically and militarily.

 

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Global Economic Slowdown:

A Severe Test for the Chinese ‘Model’

 Sriram Natrajan

 

China’s position in the global economy since the mid-1990s as the world’s ‘factory’ has suddenly been transformed to that of the world’s important ‘financier’ capable of providing a way out of global recession. China’s model has been an export dependent growth model driven by high levels of investment and a correspondingly low proportion of domestic consumption. With imports always significantly short of exports, China has built up enormous foreign exchange reserves. With the industrialised world calling upon it to use these resources to bail out the global financial system from collapse, the term ‘financier’ seems appropriate to describe China.

Many commentators have made grave predictions about China’s near-term economic future, with some declaring the end of the Chinese ‘model.’ Unemployment would probably be the single most explosive variable as the economic slowdown deepens. Macroeconomic strengths do provide some hope as China enters this crisis in excellent fiscal shape. It has huge potential to increase transfers through minimum income support and other safety nets, build up health and education and follow through on infrastructure projects.

 

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       Tibetan Waters: Cooperation and Conflict between India and China

 Rajiv Ranjan

 

China has commenced the much awaited South-North Water Project to ease its water crisis, especially prevalent in the northern regions. However, China will not arbitrarily divert water from the Brahmaputra River, since it must first negotiate with lower riparian countries. The best possible option for China is to cooperate with the basin countries. China will choose to cooperate on water since this will serve her interests better than winning water through war. Protection of the shared resource of water supply might be a focal point of cooperation rather than conflict between India and China.

 

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Beijing Olympics:

A Turbulent Journey into Fame

Srikanth Kondapalli

 

The Chinese leadership viewed the smooth passage of the Olympics as a passage for its legitimate rise in the global community. Hence, securing the Olympics became a top priority. While no major earth-shaking event unfolded to upset the apple cart of the Beijing Olympics, Beijing appeared paranoid about the cumulative effects of each of the challenges and contradictions in its turbulent journey to acquire legitimacy in the global community. The Chinese leadership is wary of the challenges posed by the “three evils” (viz. separatism, extremism and splittism—linked to the Taiwanese independence movement, Uighur movement in Xinjiang and Tibetan resistance respectively). While rich harvests are expected in investment, tourism, aviation and other sectors after the Olympics, China is concerned about the financial security of the country. Inclusive economic development still eludes Beijing despite China posting impressive GDP growth rates. It remains to be seen whether the Chinese leadership keeps the promises made in its Olympics bid and whether it wards off the challenges brewing internally and externally in addition to what the outcome of such complex interactions will be.

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From Recluse to Participant:

China in Nuclear Arms Control Regimes

 M. S. Prathibha

 

What factors drove Chinese participation in nuclear arms control regimes? What are the determinants of its participation in and violations of nuclear arms control norms? What is the rationale behind fluctuating Chinese attitudes towards different states and China’s reservations regarding the Indo-US nuclear deal? Factors indicate that China views nuclear arms control regimes through the lens of realpolitik and prepares to accept costs based on its security perception. China has twin interests regarding arms control policy in the nuclear arena. Firstly, it wants to be recognised as a responsible power in the international community. Secondly, it wants to improve its nuclear weapons capabilities in line with its security interests.

 

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Trajectory of China and

India in Space

 Atul Kumar

 

The Chinese and Indian space programs are qualitatively different due to the different nature of their origins. The Indian Space Program was established for civilian purposes and only later was rocket construction technology used to design missile systems. On the other hand, the Chinese Space Program was military in nature from inception and in initial decades had the sole objective of developing missiles, missile defense systems and other instruments for military use. Only in the 1970s was missile development technology borrowed to develop satellite launch vehicles, thereby bringing into existence the Chinese civilian Space Program. At the level of space infrastructure or accomplishments in space, China is almost a decade ahead of India. Further, India is a new entrant into the international commercial space market in which China is an established player. There is no clear Indian vision related to the use of space and the Indian Space Program seems to be primarily technology driven. India has yet to catch up with China in space.

 

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China’s Relations with

Southeast Asia

Sandeep Anand

 

China is rising and providing opportunities to the countries of the neighbourhood to develop along with it. The combination of reassurance through negotiation and settlement of territorial conflicts and the strategic opportunity provided for some Southeast Asian countries seeking diversification of their military aid and supplies amounts to a reduction of the threat perception. As far as political relations are concerned there is no looking back since the normalisation of relations with the region commenced in the post Cold War era. But the countries of Southeast Asia are uncertain about the trajectory of China’s future political stability, economic policies and resulting policies towards the region. For the countries of Southeast Asia, engagement is the best strategy to socialize and enmesh China in regional norms and institutions in order to forestall the possibility of Chinese disruption or domination in the region, and is therefore a consistent step towards maintaining the status quo. China will have to be careful in its trade dealings with its small neighbours and allay their fears if it does not want to be feared in the region.

 

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