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By Elizabeth M. Lynch, January 28, 2010

State of the Union addresses are mandated by the Constitution, and like most requirements in life, are often dull.

Barach Obama's first State of the Union

The speech usually turns into a laundry list of the President’s priorities with little rhetorical flair.  Often the most exciting part is when the TV cameras pan the audience and catch Senators and Congress members misbehaving.  This year it seems as if everyone Congress member was “tweeting” on their blackberry.

So to spice it up a bit, we at China Law & Policy decided to analyze President Obama’s first State of the Union address in terms of China.

Not surprisingly, President Obama’s speech focused mostly on the domestic agenda.  But China was mentioned twice, although both times only briefly.   China was first mentioned in regards to the technology behind its fast trains.  Similarly, when President Obama brought up China a second time, it was in regards to its technological advancement and that the U.S. must not fall behind.  In both instances, China was used more as a foil than anything else.

More compelling were the points when China wasn’t named but perhaps should have been.  In terms of trade partners, President Obama stated that he wanted closer ties with Panama, South Korea and Colombia.  But this is likely less of a snub to China than the fact that the Obama Administration is waiting on Democrats in Congress to approve free trade agreements with these three nations.

China was also absent when President Obama discussed the nuclear threat from both North Korea and Iran.  In fact, no other nation was mentioned and while President Obama was very forceful in threatening the two countries with increased sanctions, his actions appeared rather unilateral.  This is in contrast to his predecessor; in George W. Bush’s 2003 State of the Union address, the President specifically mentioned China as necessary to reach a peaceful solution on the Korean peninsula.

Does this mean that the U.S. is not receiving China’s support on this front?  It’s hard to tell.  Given the American public’s focus on the economy, health care and the corruption culture of Washington, it’s not surprising that President Obama’s speech had very little focus on foreign policy.  To draw any conclusions from the little he did say is speculative, but at the same time is something to be aware of and to watch.

Click Here for a Transcript of the State of the Union Address

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By Elizabeth M. Lynch, November 23, 2009

Originally Posted on the Huffington Post.

 Beijing, China – The U.S. press has not been kind to President Barack Obama and his recent visit to China.  Claiming that the U.S.’ tone has become conciliatory toward China, that the trip “yielded precious little” and even oddly comparing the Obama Administration’s behavior on the visit to a one-party, authoritarian regime, the U.S. press has all but designated the trip a failure.

But the trip was most certainly not a failure and in many ways fulfilled the U.S. press’ predictions – an event filled with a huge agenda covering a multitude of global issues, likely offering few deliverables, and probably playing down, at least publically, human rights.

So if the trip confirmed the press’ earlier predictions, then what’s got their panties all in a bunch?  Perhaps the one thing that upsets the press more than anything is a lack of access, and on this trip, the press certainly played second fiddle.  Questions were not taken from the press during last Tuesday’s press conference and very little other access was offered to the President.  But with only a day and a half in Beijing, this trip was not really about the press.

But in measuring President Obama’s trip based solely on their access, or lack of, the U.S. press has failed to report on some pretty substantial results of President Obama’s trip to China.  In what you likely will not find in other media outlets that are still licking their wounds from an alleged snub, below are some of the surprising deliverables from the visit.    

1.  Increased Military-to-Military Contact and High Level Military Exchanges

If the lack of communication between the U.S. and Chinese militaries does not keep you up at night, well it should.  The U.S. has a better relationship with Russia’s military than it does with China’s, but has more potential to cross paths with China’s because of the U.S.’ military presence in Asia.  Without proper channels of communication between the two militaries, a small skirmish can easily become a major crisis, as President Obama knows from his first months in office when Chinese navy ships circled and threatened a U.S. navy vessel in the South China Sea. 

Adding to the lack of communication is China’s broad interpretation of its “exclusive economic zone” (EEZ). A country’s EEZ extends 200 miles from the coast and gives the country sovereign rights over economic activities in those waters (usually the country uses its economic zone to search for natural resources).  By China’s broad definition, its sovereign rights in the EEZ expand outside of the economic realm, permitting it to interfere with other countries’ ships that enter its EEZ.  The U.S., as well as most other countries, perceives the EEZ as providing solely economic sovereignty for the coastal state, allowing other countries’ ships free access.  For the U.S., this also includes ships that are conducting military surveillance on the coastal state (for an excellent assessment of these different interpretations, see Margaret K. Lewis’ “An Analysis of State Responsibility for the Chinese-American Airplane Collision Incident”).  Needless to say, these different interpretations only add to the tensions between the two militaries. 

In the U.S.-China Joint Statement issued last week, much needed progress was made on the military front, especially in terms of communication.  High level exchanges between the U.S. and Chinese militaries will continue, with the Chief of the General Staff of the China’s People’s Liberation Army, General Chen Bingde, visiting the U.S. and both Secretary of Defense Robert Gates and Chairman of the Joint Chiefs of Staff Admiral Michael Mullen making a trip to China.

In regards to differing definitions of the EEZ, the Joint Statement alludes to this issue, showing that the two sides likely discussed and acknowledged the problem (From the Joint Statement: “The United States and China agreed to handle through existing channels…maritime issues in keeping with norms of international law and on the basis of respecting each other’s jurisdictions and interests”).  Granted they failed to reach a compromise, but this is not an issue that will be easily solved.  Just discussing this sensitive topic is progress. 

2.  Both Public and Private Discussion of Human Rights

Interestingly, a press that largely ignored this issue prior to President Obama’s trip is making a big deal of his “silence” on human rights violations in China.  Last I checked though, freedom of speech is usually regarded as one such right and President Obama discussed this issue rather bluntly and passionately at the Shanghai town hall.  While it is debatable as to whether focusing on freedom of expression on the internet is sufficient to assist China with a development of a civil society and a rule of law, it is difficult to argue that President Obama did not publically bring up the subject of human rights. 

Furthermore, in his letter written to China’s Southern Weekend newspaper, President Obama stressed the importance of a free press.  True, this letter was not permitted to be circulated to a wider audience, but it portrays the President’s continued emphasis, both publically and privately on human rights.

The Joint Statement also discusses human rights in general and calls for the next official human rights dialogue between the U.S. and China to be held by the end of February 2010 in Washington, D.C.  The Joint Statement also stressed the importance of rule of law in China and agreed to reconvene the U.S.-China Legal Experts Dialogue (see the Dui Hua Foundation website for further background).  With the increasing push back by the Chinese government in the area of rule of law, especially as it pertains to civil rights and civil liberties, deepening cooperation is an important deliverable.

It is true that the Obama Administration has opted more for a strategy of quiet engagement on this issue.  Whether the approach is effective remains to be seen.  This past summer, the Administration was able to secure the release of public interest attorney Xu Zhiyong through behind the scenes pressure on the Chinese government.  However, almost immediately after President Obama left China, the Beijing police apprehended and beat public interest lawyer Jiang Tianyong (pronounce Geeang Tian-young) as he was walking his 7 year old daughter to school.  While Mr. Jiang has since been released, he is under very tight surveillance.  Perhaps if President Obama had mentioned the plight and importance of public interest attorneys in China, the arrest of Mr. Jiang might not have happened.  Or maybe it would have.

Either way, the U.S. press’ conclusion that President Obama “soft-peddled” human rights on his trip does not appear to ring true.  Human rights was certainly discussed, both publically and privately, it just appears that perhaps China was not listening. 

3.  Clean Energy and Climate Change

As expected, the U.S. and China entered into a series of cooperative agreements pertaining to clean energy and climate change technology.  While neither side agreed to emission targets, the level of detail provided for in the issued agreements was more than anticipated.  Most interestingly, the U.S.’ Environmental Protection Agency and China’s National Development Reform Commission signed a memorandum of cooperation to help China develop its capacity to measure its greenhouse gas inventories.  This is no small feat.  China’s does not currently have the capacity to accurately measure its greenhouse gas emissions and thus, if it was to agree to emission targets, would be unable to provide verifiable data.  China’s lack of capacity on this front has rightly been a sticking point for many in the U.S. Congress, preventing the passage of domestic climate change legislation that would be used to bind the U.S. internationally.

This memorandum of cooperation is the first step to enable China to agree to emission targets and for the rest of the world to believe them. 

President Obama’s visit to China was certainly not overly exciting but it was far from the failure that the U.S. press has made it out to be.  It also does not signify the U.S.’ decline as some alarmist media outlets have claimed.  Instead, the visit was a series of tough negotiations between two global powers.  Both had winning issues and losing ones.  And in the end, President Obama likely walked out with a little more than expected.  For me, that’s an accomplishment.

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By Elizabeth M. Lynch, November 19, 2009

THE WHITE HOUSE

Office of the Press Secretary

_____________________________________________________________________________________________

FOR IMMEDIATE RELEASE

November 17, 2009

U.S.-China Joint Statement

November 17, 2009

Beijing, China

At the invitation of President Hu Jintao of the People’s Republic of China, President Barack Obama of the United States of America is paying a state visit to China from November 15–18, 2009.  The Presidents held in-depth, productive and candid discussions on U.S.-China relations and other issues of mutual interest.  They highlighted the substantial progress in U.S.-China relations over the past 30 years since the establishment of diplomatic ties, and they reached agreement to advance U.S.-China relations in the new era.  President Obama will have separate meetings with Wu Bangguo, Chairman of the Standing Committee of the National People’s Congress and Premier Wen Jiabao. President Obama also spoke with and answered questions from Chinese youth.

Continue reading 'The Deliverables from Obama’s Trip – US-China Joint Statement'»

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By Elizabeth M. Lynch, November 19, 2009

THE WHITE HOUSE

Office of the Press Secretary

_________________________________________________________________

For Immediate Release                        November 17, 2009

JOINT PRESS STATEMENT BY PRESIDENT OBAMA

AND PRESIDENT HU OF CHINA

Great Hall

Beijing, China

12:37 P.M. CST

PRESIDENT HU:  (As translated.) Your Excellency President Obama, and dear friends from the news media, ladies and gentlemen:  I’m very happy to meet our friends from the press and media.  To begin with, I would like to extend on behalf of the Chinese government and people a warm welcome to President Obama on his state visit.  Welcome to China.

Continue reading 'Presidents Obama & Hu – Joint Press Conference – Nov. 17, 2009'»

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By Elizabeth M. Lynch, November 16, 2009

THE WHITE HOUSE

Office of the Press Secretary

_________________________________________________________________

For Immediate Release                        November 16, 2009

REMARKS BY PRESIDENT BARACK OBAMA

AT TOWN HALL MEETING WITH FUTURE CHINESE LEADERS

Museum of Science and Technology

Shanghai, China

1:18 P.M. CST

PRESIDENT OBAMA:  Good afternoonn.  It is a great honor for me to be here in Shanghai, and to have this opportunity to speak with all of you.  I’d like to thank Fudan University’s President Yang for his hospitality and his gracious welcome.  I’d also like to thank our outstanding Ambassador, Jon Huntsman, who exemplifies the deep ties and respect between our nations.  I don’t know what he said, but I hope it was good.  (Laughter.)

What I’d like to do is to make some opening comments, and then what I’m really looking forward to doing is taking questions, not only from students who are in the audience, but also we’ve received questions online, which will be asked by some of the students who are here in the audience, as well as by Ambassador Huntsman.  And I am very sorry that my Chinese is not as good as your English, but I am looking forward to this chance to have a dialogue.

This is my first time traveling to China, and I’m excited to see this majestic country.  Here, in Shanghai, we see the growth that has caught the attention of the world — the soaring skyscrapers, the bustling streets and entrepreneurial activity.  And just as I’m impressed by these signs of China’s journey to the 21st century, I’m eager to see those ancient places that speak to us from China’s distant past.  Tomorrow and the next day I hope to have a chance when I’m in Beijing to see the majesty of the Forbidden City and the wonder of the Great Wall.  Truly, this is a nation that encompasses both a rich history and a belief in the promise of the future.

Continue reading 'Transcript of President Obama’s Town Hall Meeting in Shanghai'»

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By Elizabeth M. Lynch, November 15, 2009

Originally Posted on the Huffington Post.

Chinese artist's rendition of Barack Obama with Cultural Revolution Slogan "Serve the People"

Beijing, China – A certain excitement has lighted the streets of Beijing in anticipation of President Barack Obama’s maiden visit here this week.  Not only has the capital experienced two days of clear blue skies, a rarity in a city that is usually encased in a yellow, gritty smog during the cold winter months, but there is an electricity in the air as everyone discusses President Obama’s visit – from the formal news casters on TV analyzing the potential agenda to the famously earthy taxi drivers complaining about the potential traffic nightmare.

But like President Obama’s fan base back home, the young in China are especially keen on his visit.  And the President is acutely aware of this fact.  On Monday, his first day in China, President Obama will meet with a group of Chinese college and graduate students in Shanghai, to listen to their opinions and answer their questions.  What do these students think of President Obama?  What questions or recommendations will they have for the President?

In talking to a group of graduate students from the China University of Political Science and Law, one of Beijing’s most prestigious universities, President Obama’s rise to power has filled them with the hope that the impossible, or at least the improbable, is achievable.  “He gives young people encouragement.  If you work hard, you can obtain a high position….it’s the American Dream.” said Xie Jinbao (pronounced Syeh Gin-bao).    “For many, it is very dream-like” explained Liu Huisheng (pronounced Leo Hway-sheng), while cautioning that only those who care about politics have been paying attention.  “In general though my friends are neutral [about President Obama].”

In pinpointing the source of this hope, the Chinese students spoke more frankly than their American counterparts on

China University of Political Science and Law

one subject in particular: President Obama’s race.  “He’s America’s first black president” Li Siming (pronounced Lee Tsi-ming) offered excitedly, “it makes young people very excited.”   “America was able to elect a black president, it shows that it has a certain openness” said Dong Jianjun (pronounced Dong Geeann-june).  The students also derived inspiration from the multicultural nature of the President’s cabinet, mentioning by name, at least their Chinese names, the appointment of Chinese-Americans including Commerce Secretary Gary Locke, Energy Secretary Steven Chu and Cabinet Secretary Chris Lu.  “In China, this could never happen; a foreigner could never work in the administration” said Xie Jinbao.

For the students, many who have little recognition of a world before President George W. Bush, President Obama represents a new approach to the global order, an approach that they eagerly look to be a part of.  “He is much better than Bush” Xie Jinbao said.  “Bush believed in unilateralism, but Obama supports multilateralism.”  At a time when many western observers question China’s commitment as a collaborator on the world stage, Li Siwei (pronounced Lee Tsi-way) seemed to imply her generation’s eagerness for greater responsibility: “Obama is willing to work with other countries, there will be more cooperation.”

But even though the term superstar was used repeatedly to describe President Obama and student Liang Xuanjing (pronounced Leeang Syuan-jing) was in awe of President Obama’s charisma, there were words of caution.  “Confucius had a saying ‘If a person is too perfect, we will have doubts’” Liu Huisheng said, noting that perhaps President Obama’s speeches are a bit “too perfect.”  Dong Jianjun echoed this sentiment: “Compared to presidents like Roosevelt or Kennedy, Obama has similarly great charisma…but we have yet to see if his [Obama’s] policies will be effective.”  Like many Americans, these Chinese students are looking for President Obama to follow through on the promises of his speeches.  In a relationship as close as the one between China and the U.S., President Obama’s actions, or lack of action, directly impact China and many of these Chinese students’ futures.

Not surprisingly though, many of the topics that the students would like Presidents Obama and Hu Jintao (pronounced Who Gin-tao) to discuss are the same as their U.S. contemporaries – international trade and the ever escalating tariff war topped the list for these students.  But so did the issue of climate change and energy efficiency as well as the economic recovery.

China’s youth are not that different from the young back home – they share the same hope that Presidents Obama and Hu can make the world a better place and they express an eagerness for a new world order where the U.S. and China can work through their issues.  But like their American brethren, if Presidents Obama and Hu cannot solve many of today’s problems, including the economic crisis, climate change, and an increasingly cantankerous trade relationship, it will be their generation that will be left holding the bag.

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By Elizabeth M. Lynch, November 3, 2009

Originally posted on the Huffington Post.

Obama & Hu share the stage in Pittsburgh. Soon it will be Beijing.

President Obama will visit China, his first trip to the country, from November 15 through the 18.  Although his visit is less than two weeks away, the question remains – what will be on the agenda for his three days in China.  While the White House has yet to release President Obama’s schedule, expect President Obama and President Hu Jintao (pronounced Who Gin-tao) to discuss military ties, global economic health, climate change and human rights.  

(1)   Improved US-China Military Relations – Let’s Hope

While U.S.-China economic ties bring the two nations into alignment on various issues, military-to-military relations remain dangerously tense.  President George W. Bush realized this early on in his presidency after a U.S. spy plane crashed with a Chinese military jet and was then forced to make an emergency landing on Hainan Island in China.  For a few days, it was unclear what the Chinese military would do with the captured U.S. pilots, leading to the acknowledgement that better communication between the two militaries was necessary.  

President Obama has already had a taste of the danger of weak military ties this past March, when five Chinese naval vessels circled and threatened a U.S. navy ship in international waters, 75 miles off of Hainan Island.  

The People’s Liberation Army (PLA) is largely to blame for the lack of communication between the two militaries.  Historically, the PLA has remained secretive about its military development and has usually refrained from military-to-military relations with other countries, although that is slowly changing.  While the Clinton Administration made some headway, at least on paper with the signing of the Military Maritime Consultative Agreement (MMCA), suspicion between the two militaries has remained high and there are no procedures in place for each country’s military to follow should unexpected events occur.   The U.S.’ military agreements with all other countries, including Russia, contain provisions to deal with emergency incidents to prevent their escalation.

As an emerging superpower and already a regional one, minor military incidents with China will likely continue to

Xu Caihou & Robert Gates - maintaining close ties?

occur, especially as China rapidly expands its military spending and build-up. Without better communication, these incidents can easily turn to major crises.  The Obama Administration appears to recognize this danger.  Defense Secretary Robert Gates just concluded a meeting with Vice-Chairman of the Central Military Commission (CMC), Xu Caihou (pronounced Sue Tsai-ho) in Washington, D.C. after Mr. Xu spent a week in the U.S. viewing U.S.  military bases and meeting with other military leaders. 

Securing a better understanding between the two nations’ militaries would be no small feat.  The PLA remains a very powerful, and largely independent, force within the Chinese government and President Hu Jintao’s control over the organization remains questionable (see Susan Shirk, China: Fragile Superpower, p. 73).  But it appears that President Obama, especially after the March 2009 incident in the South China Sea, recognizes the importance of pushing China forward to secure better military ties.  However, anticipate that China will raise the issue of U.S. arm sales to Taiwan, and may very well use that as a bargaining chip for better U.S.-China military relations. 

(2)   Coordination on the Global Economic Crisis – Tow Superpowers Tied Together

To make it through the current global economic crisis, China needs the U.S. and the U.S. needs China.  While China’s stimulus package has taken hold quicker then its American counter-part, China’s future is still largely dependent on the U.S.’ success.  Last year, China surpassed Japan as the largest holder of U.S. Treasuries, holding approximately $800 billion (25% of total U.S. Treasuries); this amount accounts for approximately 40% of China’s foreign reserves.  In order for the U.S. to continue to fund its stimulus, it needs China to continue to purchase U.S. Treasuries.  But at the same time, China right now has no choice but to hold the treasuries, intertwining China with the future of the U.S. economy. 

Because of this arrangement, expect China to scold the U.S. on its increasingly high levels of debt.  This though is more for the domestic Chinese market than actually for U.S. policy makers.  The Chinese government’s hands are tied – it cannot sell off their Treasuries; its act of selling would inevitably cause market to decrease the price of U.S. Treasuries while China is attempting to sell.  But it still has to show the Chinese people that it is doing something. 

On the U.S. side, anticipate the issue of currency manipulation to be raised but not to be discussed in-depth.  Commerce Secretary Gary Locke raised the issue on his trip to Guangzhou last week, a surprise since currency has not been a high priority as of late.  However, for certain U.S. industries, such as the steel industry, China’s currency policy remains a viable issue. 

In terms of trade issues, such as the recent U.S. tariffs on tires and Chinese threats to slap tariffs on certain U.S. imports in response, expect some discussion.  But largely, this “trade war” has become much less of a problem.

Instead, U.S.-China discussions on the economy will likely entail how U.S. and Chinese companies can continue to work together.    

(3)   Climate Change & Copenhagen – “I’ll Go If You Go”

Do not expect much in terms of climate change.  Todd Stern, the Administration’s special envoy on the issue, announced last week that a bi-lateral agreement is not likely to emerge from President Obama’s and President Hu’s discussions on climate change.  Instead, the heads of state of the two leading emitters of greenhouse gases are hoping to reach “a common understanding.” 

Anticipate that a “common understanding” will involve a discussion of financial and technical assistance to China to help combat climate change.  As of the U.N. General Assembly in September, the U.S. and China do not see eye-to-eye on this issue.  While the European Union has pledged to provide financial assistance to developing countries, including China, the Obama Administration has yet to agree to such assistance to China.  However, it is this issue that the U.S. should attempt to parlay into actual emission targets from China. 

In terms of greater technical assistance, expect President Obama to ask for more protection of intellectual property and actual enforcement of the law in China, an issue Commerce Secretary Gary Locke recently raised on his October 2009 trip to China. 

Finally, the success of the Obama-Hu talks on climate change will determine whether either leader will join the rest of the world in Copenhagen in December.  This is pretty much a package deal; if the U.S. and China reach a “common understanding,” expect both Obama and Hu to attend Copenhagen.  If they do not, expect both to be watching it on T.V. from home. 

(4)   Human Rights & Rule of Law – This is Where the Surprise will Lie

Whether President Obama brings up the issue of human rights is currently the big “if” of his visit.  Secretary of State Hillary Clinton received tremendous backlash, both at home and internationally, when she heavily implied that the U.S. would not press China on human rights at the expense of other issues. 

However, during Ambassador Huntsman’s Senate confirmation hearing, he repeatedly stressed the importance of a continuous dialogue with China on human rights.  Furthermore, the release of activist-attorney Xu Zhiyong upon Ambassador Huntsman’s arrival to Beijing is likely a reflection of pressure from high up in the Administration (Xu Zhiyong ‘s organization received financial support from Yale University, Secretary Clinton’s alma mater).  But more than anything else, Xu Zhiyong’s detention made apparent to the Administration the important role that the U.S. still plays to many of these Chinese human rights activists; the U.S. still serves as their beacon of hope, and often gives these activists the courage to push forward when many in their country and their government work against them. 

Will President Obama make public comments about human rights?  Expect something.  Likely though, the issue of human rights will be painted as one of “rule of law.”  Recently, a group of Chinese lawyers convened a press conference in China imploring President Obama to raise the issue of human rights but in terms of their ability to bring cases in court concerning religious freedom and human rights.  Additionally, the Xu Zhiyong case showed the still arbitrary nature of the Chinese justice system.

Obama Before the Crowds in Germany. Will it be the same in China?

In Beijing, rumors abound on whether President Obama, like his Democratic predecessor President Bill Clinton, will speak at one of the many universities in the capital.  President Clinton’s speech at Peking University was historic, impressive and broadcasted to the Chinese people; the capital essentially stood still while he spoke.  Given President Obama’s panache for large-scale, media-friendly events, it is very likely that Chinese officials will allow a speech to the Chinese people.  However, will the Chinese state-controlled media appropriately translate President Obama’s speech remains to be seen.  Even President Obama’s inaugural speech, which never even mentioned China, was partially censored.

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By Elizabeth M. Lynch, October 23, 2009

The first in a series of three articles on “China – On the Road to 2025.”

On October 19, the Council on Foreign Relations and Project 2049 Institute cosponsored “China 2025,” a conference exploring where China may be in the next 15 to 20 years. Guest blogger Marcy Nicks Moody seeks to illuminate several of the arguments made and issues discussed, namely, domestic trends, foreign policy, and the economic outlook.

Lingerie entrepreneur Zhou “The Wolf” Yu from Win in China. Could more wolves make better governance?

The Center is Holding, with Troubles at the Periphery

by Marcy Nicks Moody

As discussed in a previous post, the October 1 celebrations of the 60^th anniversary of the founding of the People’s Republic were spectacular. President Hu Jintao’s updated Mao jacket, the Mount Everest float, and the female soldiers with fuschia miniskirts and submachine guns were all flawless, if unlikely. Mostly a parade of military weapons systems, the celebrations were an extraordinary display of pride in what China has accomplished over the last 60 years, and confidence in what it will accomplish over the next.

Since the beginning of ‘reform and opening’ (the period starting in 1978 when new leader Deng Xiaoping first instituted China’s economic reforms), China has consistently defied expectations about what it can accomplish. When considering where China will be in 2025, then, thinking not about where we, the outside observers, expect China to be, but rather where China itself aspires to be is perhaps the more apt starting point. And the National Day parade may offer some insight into these aspirations: the Chinese Communist Party-state of October 1, 2009 is strong and confident; it clearly sees an important role for the People’s Republic internationally, and little release of political control nationally.

But this picture stands in contrast to the China of September 2009, during which dissidents were detained, social networking websites were blocked, and civil society was suppressed. Or the China of March 2009, when a Christie’s auction of Chinese antiquities elicited an uproar among the Chinese people as a symbolic attack on its culture. Last year, Bjork, the Icelandic pop singer otherwise known for her off-beat sartorial choices, produced a similar response from the Chinese people when she called for independence for Tibet. Similar with Carrefour, the French big box store, which became the victim of a nation-wide boycott of foreign goods at the behest of a single Chinese blogger. The China of these moments finds disagreement unbearable, and portrays itself as easily harmed by the actions of relatively minor interlocutors. Strong and confident are not the appropriate descriptions of this picture.

How does one make sense of this divergence in tone?  At Monday’s “China 2025” conference, the first presenter, Minxin Pei of Claremont McKenna College argued that it is reflective of China’s domestic circumstances, which may be characterized by a combination of macro-level stability and micro-level instability. On the macro-level, there is no organized opposition to the Chinese Communist Party (CCP). China’s response to the economic crisis has been capable and robust, and there is increasing interest in the propagation of Chinese “soft power.”

Though center is holding, there are problems elsewhere. Four hundred CCP members are found guilty of corruption every day, said Professor Pei. There are 300 riots per day. Concerns about food and product safety cause great anxiety, and there is a major water pollution incident every three days. Kelley Currie, a Non-resident Fellow at the Project 2049 Institute and another speaker on the panel, noted tensions between the Han and other ethnicities at the periphery, including Tibetans, Uighurs, Manchus, and Mongols. Though none of these problems has occurred at the locus of CCP power, this dynamic, which Yanzhong Huang of Seton Hall University described as the central-local capacity gap in Chinese governance, poses a serious challenge to the effectiveness of domestic policy in China.

How, then, will micro-level instability affect China’s aspirations for and its path to 2025? To be sure, the Party-state currently has few effective methods for systematically addressing a range of local-level issues, including corruption, environmental degradation, ethnic unrest, and labor-related issues, which could eventually pose a more serious threat to the Party-state. More of an optimist, director of the documentary film Win in China Ole Schell observed that increased business and commercial activity may also drive increased transparency in China, while Professor Pei calls himself a cautious pessimist. This author, however, would rarely bet against China.

Marcy writes about China. In 2007-08, she was a Fulbright Scholar in China, where she was also a Research Fellow with the U.S.-Asia Law Institute. She received an M.A. in East Asian Studies from Columbia University and graduated from Brown University.

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By Elizabeth M. Lynch, October 5, 2009

Originally posted on The China Beat.

Japan's New Prime Minister, Yukio Hatoyama

The United States was not the only country that voted for change this past year.  On August 30, 2009, after fifty-four years of essentially one-party rule, the Japanese people voted overwhelmingly to usher in a completely new government and a new way of thinking.  The Liberal Democratic Party (LDP), which ruled Japan since 1955, was completely rejected.  Obtaining only 119 out of 480 seats of the House of Representatives (the lower Diet), the LDP took a second seat to the younger and fresher Democratic Party of Japan (DPJ).  The DPJ won 308 seats in the House, ensuring that their leader, Yukio Hatoyama, would become Prime Minister.

The DPJ’s victory guarantees that much change will come to Japan.  Already in the first few weeks of Prime Minister Hatoyama’s tenure, he has called for the complete transformation of the traditional government-bureaucracy relationship, the need to rework Japan’s economic recovery plan, and has called for a review of U.S. troops in stationed in Japan.

But little has been made of the impact of Japan’s new government on its relation with its large and imposing neighbor to the west:  China.  Will the Hatoyama government seek to work with China or further alienate it China by continuing

Prof. Gerald Curtis, Columbia University

to glorify Japan’s World War II past?  Is Japan’s goal to look more inward to Asia at expense of its relationship with the U.S.?  To answer these questions, I spoke with Gerald Curtis, a Columbia University political science professor and preeminent expert on Japanese politics, government and society.   In analyzing the future of Japanese-Chinese relations, Prof. Curtis left me with another word that has been used frequently in recent elections:  hope.

Transcript of Interview with Prof. Gerald Curtis

To Listen to the Interview, Click Here

EL: My first question is: how do you envision the China-Japanese relationship changing with the change of government in Japan?

GC: Well, I think it’s going to get better.  It’s already gotten better in the last few years, but it will get better.  One reason being Hatoyama’s view on the so-called history issue, on Japan’s responsibility for its behavior during the War and the years leading up to the War, is very heart felt and the Chinese will appreciate his view on the history issue.  Unlike some of the LDP leaders who apologized but didn’t really mean it, Hatoyama believes Japan was behaving very badly and will say so.  So I think that will be very good.  Also, he wants to see a stronger relationship with China.  He’s not going to go to the Yakasuni shrine which has been a source of difficulty.  He wants to create an alternative site in which foreign leaders can go, as well as Japanese leaders, to pay respects to all those who died in the War regardless of nationality.  He wants to encourage greater cooperation on issues like environmental, pollution control and so on, which the Chinese desperately need.  And I think he understands well that improving relations with China doesn’t come at the expense of relations with the U.S.  The U.S. wants to improve relations with China, so does Japan, but the U.S. and Japan together can do a lot in dealing with China and some of the problems it faces.  So I think the relationship is likely to get better.

EL: And another question is, in regards to his [Hatoyama’s] request to the [U.S.] military bases to close, my understanding is that Japan has been open to having a U.S. military presence in Asia in order to protect it against any problems with China or if China happens to invade Taiwan or become more bellicose toward Taiwan because that would adversely impact shipments to Japan.  What will Japan do, or does it no longer fear a military threat from China?

GC: Hatoyama has not suggested that the U.S. military presence in Japan should be abolished.  They think that some of, the extent of the presence in Okinawa is unsustainable, that there are simply too many bases in too many congested urban areas in Okinawa with no ostensible reason for there being there in terms of the threats that either Japan or the United States faces.  So they want to see some adjustments made but I think the government understands that this military alliance with Japan is critical for Japanese security and that to have a military alliance you have to provide some facilities but maybe not as much as currently exists.  So that is what the negotiation will be about.  It’s not about eliminating the U.S. military presence.

EL: And one more follow-up question.  Has Prime Minister Hatoyama made any direct overtures yet to the Chinese government, as far as you know?

GC: Yes, he met with Hu Jintao yesterday [Sept. 22, 2009] in New York and that was there first face to face and I believe he is going to visit Beijing in October for an extended discussion with the Chinese leadership.  But he has already taken the initial step with this bilateral here in New York City.

EL: One last question, one last question.  In regards to the ability, because there has been some issues, the Chinese-Japanese relationship has become more of a politically sensitive relationship in both countries, in China as well as in Japan, especially when the Japanese people saw the response of the Chinese people protesting against Japan.  Do you think that his [Hatoyama’s] making overtures with the Chinese will have a negative impact on his popularity in Japan?

GC: No, not at all.  Nobody wants a fight or a lot of tension with China.  I think his way he deals with China will be welcomed in Japan.  Hu Jintao in the meeting with Hatoyama yesterday was talking about the need for more cultural exchange and the need to educate both their publics about the importance of the relationship.  That came from the Chinese side, that’s really very important.  Neither country wants trouble with the other.  China doesn’t want trouble with anyone right now, they have to concentrate on their economic development, they don’t need any fights with neighbors and with Japan in particular.  So I think there’s the, sentiment is to try to move this relationship forward in a positive way.  I think they have a good shot at it.

EL: Ok.  Thank you very much, I very much appreciate it.

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By Elizabeth M. Lynch, September 29, 2009

Originally posted on the Huffington Post

President Obama, with President Nicolas Sarkozy and Prime Minister Gordon Brown on Friday, Sept 25 at the G-20 Summit

China remained noticeably mum on Friday as other member nations of the U.N. Security Council stood before the world and accused Iran of developing a secret nuclear enrichment site.  Flanked by Prime Minister Gordon Brown of the U.K. and President Nicolas Sarkozy of France, President Obama promised to take strong action against Iran if the country did not fully disclose its nuclear ambitions and open all sites to international inspectors.   Such strong action would include crippling sanctions on all trade to and from Iran.  Even Russia appeared willing to consider sanctions if Iran failed to cooperate, breaking with Russia’s long opposition to such action.

China, on the other hand, prefers a different route.  Stressing the need for diplomacy and negotiations, China announced that “sanctions and pressure should not be an option” in dealing with Iran.  Although not completely ruling out sanctions, China desperately hopes that the upcoming talks with Iran scheduled to begin this Thursday satisfy the U.S. and obviate the need for sanctions.

Why is China so hesitant to support sanctions against a country that is secretly developing nuclear capabilities?  History, geo-politics and economic ties are what set China apart from its Security Council brethren in dealing with Iran.  But China’s growth as a world power has caused it to become a stakeholder in the current system.  With this new-found power, China has begun to realize its actions, or lack of action, does in fact shape the world’s future course and as a result, its own global prospects.

History, History, History

China has long been an outsider to the western world order.  Even after mainland China’s return to the U.N. Security Council in 1971, China was still largely considered a pariah state, a Communist country with severe human rights violations.  China’s violent crackdown on the 1989 Tiananmen protests rolled back any international good will it was amassing and subjected China to crippling economic sanctions.  It has only been in the past few years that China has become a significant voice in the international arena and respected by Western powers.

But for China, its past is far from forgotten.  While it has significantly benefited from the current world order, China understands that other countries, either rightly or wrongly, are marginalized because of alleged human rights violations or nuclear development.  As a result, China has developed a philosophy of “non-interference” in other country’s domestic affairs and has largely stuck to that attitude in dealing with countries that the U.N. or the U.S. might consider rogue.  This is not to say that China condones such behavior; in fact China has been an ardent supporter of various global nuclear non-proliferation efforts and supported sanctions against North Korea for its nuclear development.  However, with its sense of history, China will be slow to agree to sanctions against Iran, even if sanctions are in its long-term self-interest.

Geo-strategic Considerations

Iranian President, Mahmoud Ahmadinejad at last week's U.N. Security Council

Iran plays an important role in China’s aspiration to become a regional power.  With its rise, China has sought to create political alliances and economic ties with other countries in Asia and reduce the influence of the U.S. in the region.  One such effort is the Shanghai Cooperation Organization (SCO).  China leads the organization which has created greater economic interdependence among Russia, China and the Central Asian states.  Iran, although not a member, currently holds observer status.  China, along with Russia, has used the SCO to reduce the U.S. military presence in Central Asia when in July 2005, its members signed an agreement to push the U.S. to set a deadline for troop withdrawal from the region (Library of Congress Report, p. 68).

The SCO is beginning to function as a multilateral alliance system allowing China to exert its influence in a region where western powers are largely absent.  To move too quickly in calling for sanctions against Iran, a country within the SCO’s domain, China could jeopardize its current leadership role in the region.

Economic Ties

China’s strongest reason to oppose sanctions against Iran lies with its current economic ties to the country.    In 2008, 12% of China’s crude oil imports were from Iran; the first five months of 2009 have seen an increase and China is on target to import 15% from Iran (Energy Information Administration Country Analysis Brief) .  Furthermore, Chinese oil companies have invested heavily in Iranian oil fields.  In December 2007, China’s Sinopec signed a $2 bn contract with Iran to develop the Yadavaran oil fields; in January 2009, CNPC, China’s largest oil and gas company signed a $1.7bn oil contract to develop the Azadegan oil fields.  Although these investments are large, many question whether the Chinese companies have in fact moved forward with developing these fields.  In the past, Chinese oil companies have signed deals with countries but have waited, even as much as ten years, for geopolitical issues to settle (According to the Brookings Institute, CNPC signed a contract with Iraq in 1997 but did not begin to the develop the oil fields until 2008, after threats of sanctions were over).

Similarly, China has looked to Iran for its large quantities of natural gas.  In March 2009, the L.A. Times reported that Iran and China signed a $3.2 bn deal for natural gas development. But like the oil contracts, it is unclear if China intends to follow through with this agreement given the current politically-sensitive climate.

More real though is Chinese oil companies’ sale of gasoline to Iran.  Although Iran has the second largest crude oil reserves in the world, it has little capacity to refine that oil and make it into usable gasoline.  In fact, Iran imports 40% of its gasoline, mostly from European countries but also from China.  Because of China’s increasing economic ties with Iran, sanctions that impact all trade with Iran could be particularly damaging to China.

China’s Countervailing Interests

On Sunday, it seemed as though everyone on the political talk shows called for China to join the U.S., France, Britain and Russia in condemning Iran and agreeing to join sanctions if need be.  But China has not wavered on its stance of trying diplomacy first.  At the same time, it has also not stated that it will oppose sanctions if the October 1 talks fail.  And while political pundits, the media and elected officials in the West are currently criticizing China for not throwing its weight behind sanctions, it is China’s current silence on the issue that gives the October 1 talks the best chance of success.  Without China’s commitment for or against sanctions, Iran is left guessing what its trading partner will do, and could acquiesce to U.S. demands to show blueprints of the new nuclear site and open its country to inspectors.

But if the October 1 talks fail, expect China to agree to sanctions, but likely not the ones that will be proposed by the U.S., France and Britain.  In December 2006 and March 2007, in response to Iran’s nuclear development, the U.N. Security Council unanimously agreed to sanctions.  However, through China and Russia’s insistence, these sanctions were substantially watered down and merely limited the sale of nuclear equipment and technologies to Iran and froze the assets of key individuals involved in Iran’s nuclear development.

The Obama Administration has already realized that a total embargo on gasoline shipments is not in the cards.  Not only would Chinese companies be negatively impacted, but so would European oil companies that sell gasoline to Iran.  Many E.U. countries have already come out against a total embargo.

But other measures, such as eliminating investments in Iran, might have more traction with China and could be something it agrees to in this round of sanctions.  China has a lot to lose if Iran becomes a nuclear power or appears to be a nuclear power.  First, while 12% of China’s crude oil imports are from Iran, 20% are from Saudi Arabia, a country that has already reprimanded Iran for its nuclear aspirations.  Will China jeopardize that relationship by opposing sanctions?

Second, Israel’s response to an unchecked Iran could potentially lead to such instability in the region cutting off not only oil from the Middle East, but also key shipping lanes for China’s oil imports from other countries.  China cannot afford to be cut off from any oil shipments since currently it only has 25 days worth of oil reserves.

Third, a nuclear Iran threatens the Central Asian strategic alliances that China has worked hard to create through the SCO.  Arguably, the other Central Asian countries might begin to take their cues from Iran, dissipating China’s leadership role in the region.

Fourth, it remains unclear if China’s investments in Iranian gas and oil fields actually exist.  If not, then China could easily agree to stop its investments in Iran.  Even if China has already begun to develop these oil and gas fields, it is only at the start of these investments and under its contracts with Iran, China does not receive a return on the investment until development is completed.  Any of China’s current contracts have a long way to go before completion.

Finally, China does want to become a responsible world player.  It has actively sought membership in various international organizations and largely abides by their rules.  Last year, during the North Korean missile crisis, China was on board in issuing a harsh reprimand of Kim Jung-Il’s actions.

If the situation with Iran further disintegrates and sanctions become necessary, the Obama Administration should push China to agree to sanctions that include a cut-off of investments in Iran.  China might hesitate at first, but for the reasons stated above, they could agree to such measures.  Getting China to stop importing crude from Iran could prove harder.  Although interestingly enough, Iran’s largest importer of its crude is Japan, a strong U.S. ally, and Japan might actually be the strongest opponent of such measures.  Including an embargo on sales of gasoline to Iran would be impossible.  But asking China to join sanctions that limit investment in the region, is doable.