China and Global Politics
Les 1: China and WTO
Impact and policy implications accession WTO
- China’s accession WTO in November 2001, after 15 years of negotiations
- Accession required major legal and trade reforms, highlighting urban-rural
income disparities
o Gap became even greater after accession
- Yet great interest in accession in joining WTO, set up in 1/1995, replacing
GATT
- Key driver in restructuring Chinese economy into a market economy
- Long Yongtu (Chief trade negotiator) emphasized that planned economies
must become market-based to join globalization
- Domestic economic growth is essential for the legitimacy of CCP
5 principles to assess the implication of China’s accession
- Non-discrimination
o Equal treatment for all WTOd partners under the MFN (Most-Favored-
Nation) principle
o Non discrimination between imports and domestic goods
So eg; no extra taxes on German cars in China
- Market opening
o China reduces tariffs, removes trade-barriers, opens services
o Other countries: remove quotas on Chinese textiles
o WTO members apply MFN tariffs to China
- Transparency and predictability
o China must publish trade rules and allow independent judicial review
- Undistorted trade
o Refers to antidumping and safeguard measures to avoid disruption
of domestic market of other WTO members as result of China’s
import
Antidumping: 70% of China’s products (textiles, clothing &
shoes) are vulnerable to antidumping given the Chinese
nonmarket economy status for 15 years (until 2016). MES
(Market Economy Status) still not granted to China by major
trade partners: US, EU, Japan
Safeguard measures: Temporary protections allowed for 12
years against import surges from China
- Preferential treatment for developing countries
o China claims developing country status, but others are hesitant due
to its size and growth
Impacts of China’s WTO Accession
- Accession led to rapid economic growth (2001-2008: double-digit annually)
- Post-2008: Growth slowed but remained strong
o China only major economy with growth in 2020 (covid year)
- Structural shift: Agriculture’s share shrinks, industry and services expand
,How to explain the economic growth
- Supply side: large workforce from low productive agriculture to higher-
productivity industry and services
- Urbanization: Rapid rise in urban population (17% in 1978 58.5% in
2018 70% in 2030 projected)
Massive internal migration from countryside to the city
- 2018: 250 million internal migrants
- Challenges: Limited access to housing, healthcare, education due to Hukou
(household registration) system; also face discrimination and sexism
- Opportunities: Path to economic mobility
- Trends: Gradual loosening of Hukou rules; Special Economic Zones (SEZs)
helped attract migrants
Integration with the global economy
International trade: China became the biggest country in export sales
Demand side:
- Economic growth driven mainly by domestic investment (48.8% of GP in
2002)
- Household consumption remained relatively low
o Rose from 36% of GDP in 2007 to 78.5% in 2018
China trade balance with selective countries
General pattern:
- Substantial trade DEFICIT with neighbouring Asian countries: Japan, Asian
NIEs (Newly Industrialized Economies), ASEAN 4 (Indonesia, Malaysia,
Philippines, Thailand), Australia
- Significant trade SURPLUS with the US and EU
- Overall trade surplus
First phase of Chinas economic rise 2001-2008
- China imports
o Raw materials, semi-finished goods, parts and components
- China exports
o Light consumer products to US and EU (textile, clothing, shoes,
furniture, etc.) Electronics
o Guangzhou (aka Canton) as factory of the world
o Yiwu as the largest whole sale market
China acts as a key integrator in East and Southeast Asian/global supply chains
Problems and challenges in the period 2001-2008
- Dependence on export
- Economic imbalance: low consumption, high savings, underdeveloped
capital markets
- Regional and urban-rural income inequality
- Overall accession is remarkably successful
China has taken a wide range of measures to address all the challenges
- Shift from ‘factory of the world’ to a smart, green, tech-driven economy
- Focus on sustainable growth and social investment (health, pensions,
education)
,At present
- 2nd largest economy in the world (America first)
China’s strengths and challenges
- Strengths:
o Strong manufacturing ecosystem
o Low production costs and large labour force
o Skilled talent pool
o Growing cultural economy (“Made in China” brand)
- Challenges & prospects
o Boost domestic consumption
o Raise retirement age for larger labour force
o Improve social safety nets (health & unemployment)
o Reform state-owned enterprises
o Tackle aging population
o Navigate rising global protectionism
, Les 2: China and International Law and
Organisations
Imperial China (Qing Dynasty 1644-1911)
Until 1860:
- Saw itself as the “Middle Kingdom” at the centre of a tributary world order
(Tianxia)
- Rejected Western-style international law, viewing it as a tool of imperialism
- Forced into the international system through unequal treaties after the
Opium Wars (1842-1860) Start of the Century of Humiliation
- Exception: Treaty of Nerchinsk (1689) with Russia was a rare equal treaty
Imperial & Republican Period (1911-1949)
Shift towards international engagement
- Joined Universal Postal Union in 1897
- Participation in the Hague Conferences in 1899-1907
China and International Law and Organisations
- After the Boxer Rebellion (1900), a peasant uprising against foreigners
supported by the Qing, relations with foreign powers worsened
- The 8-Nations Alliance (US, UK, Germany, France, Austro-Hungary, Italy,
Russia, Japan) intervened militarily
- The Boxer Protocol (1901) forced China to pay heavy indemnities to 11
countries, including Belgium
- Belgium played minor role (imperial ambitions / Leopold 2s interest in
China)
- Belgium received a concession in Tianjin and promoted itself via structures
like the Chine Pavilion and Japanese Tower
Republican China (1911-1949)
- Paris Peace Conference (1919): China actively participated
o But disillusioned by transfer of German holdings in Shandong to
Japan and British suppression of Chinese labour protests in 1925
China after ww2
- Was part of Roosevelt’s “Big Four” to help found the UN
- After 1949, PRC expected UN membership but was blocked by US and
allies, especially after Korean War.
o US backed Taiwan’s seat and delayed PRC recognition until much
later
Historical and Cultural Legacy
- Emphasis on ethics over law (rule of man vs. rule of law)
- Governance through moral leadership and hierarchy, not checks and
balances
- Importance of Guanxi: different levels of reliance or trustworthiness
depending on relationship (jiaren: family, zijiren: members of the same
social group; Shuren: trustworthy friends; shengren: strangers
Domestic ideology & China’s view on IL
- Foreign policy shaped by:
o Marxist internationalism
Les 1: China and WTO
Impact and policy implications accession WTO
- China’s accession WTO in November 2001, after 15 years of negotiations
- Accession required major legal and trade reforms, highlighting urban-rural
income disparities
o Gap became even greater after accession
- Yet great interest in accession in joining WTO, set up in 1/1995, replacing
GATT
- Key driver in restructuring Chinese economy into a market economy
- Long Yongtu (Chief trade negotiator) emphasized that planned economies
must become market-based to join globalization
- Domestic economic growth is essential for the legitimacy of CCP
5 principles to assess the implication of China’s accession
- Non-discrimination
o Equal treatment for all WTOd partners under the MFN (Most-Favored-
Nation) principle
o Non discrimination between imports and domestic goods
So eg; no extra taxes on German cars in China
- Market opening
o China reduces tariffs, removes trade-barriers, opens services
o Other countries: remove quotas on Chinese textiles
o WTO members apply MFN tariffs to China
- Transparency and predictability
o China must publish trade rules and allow independent judicial review
- Undistorted trade
o Refers to antidumping and safeguard measures to avoid disruption
of domestic market of other WTO members as result of China’s
import
Antidumping: 70% of China’s products (textiles, clothing &
shoes) are vulnerable to antidumping given the Chinese
nonmarket economy status for 15 years (until 2016). MES
(Market Economy Status) still not granted to China by major
trade partners: US, EU, Japan
Safeguard measures: Temporary protections allowed for 12
years against import surges from China
- Preferential treatment for developing countries
o China claims developing country status, but others are hesitant due
to its size and growth
Impacts of China’s WTO Accession
- Accession led to rapid economic growth (2001-2008: double-digit annually)
- Post-2008: Growth slowed but remained strong
o China only major economy with growth in 2020 (covid year)
- Structural shift: Agriculture’s share shrinks, industry and services expand
,How to explain the economic growth
- Supply side: large workforce from low productive agriculture to higher-
productivity industry and services
- Urbanization: Rapid rise in urban population (17% in 1978 58.5% in
2018 70% in 2030 projected)
Massive internal migration from countryside to the city
- 2018: 250 million internal migrants
- Challenges: Limited access to housing, healthcare, education due to Hukou
(household registration) system; also face discrimination and sexism
- Opportunities: Path to economic mobility
- Trends: Gradual loosening of Hukou rules; Special Economic Zones (SEZs)
helped attract migrants
Integration with the global economy
International trade: China became the biggest country in export sales
Demand side:
- Economic growth driven mainly by domestic investment (48.8% of GP in
2002)
- Household consumption remained relatively low
o Rose from 36% of GDP in 2007 to 78.5% in 2018
China trade balance with selective countries
General pattern:
- Substantial trade DEFICIT with neighbouring Asian countries: Japan, Asian
NIEs (Newly Industrialized Economies), ASEAN 4 (Indonesia, Malaysia,
Philippines, Thailand), Australia
- Significant trade SURPLUS with the US and EU
- Overall trade surplus
First phase of Chinas economic rise 2001-2008
- China imports
o Raw materials, semi-finished goods, parts and components
- China exports
o Light consumer products to US and EU (textile, clothing, shoes,
furniture, etc.) Electronics
o Guangzhou (aka Canton) as factory of the world
o Yiwu as the largest whole sale market
China acts as a key integrator in East and Southeast Asian/global supply chains
Problems and challenges in the period 2001-2008
- Dependence on export
- Economic imbalance: low consumption, high savings, underdeveloped
capital markets
- Regional and urban-rural income inequality
- Overall accession is remarkably successful
China has taken a wide range of measures to address all the challenges
- Shift from ‘factory of the world’ to a smart, green, tech-driven economy
- Focus on sustainable growth and social investment (health, pensions,
education)
,At present
- 2nd largest economy in the world (America first)
China’s strengths and challenges
- Strengths:
o Strong manufacturing ecosystem
o Low production costs and large labour force
o Skilled talent pool
o Growing cultural economy (“Made in China” brand)
- Challenges & prospects
o Boost domestic consumption
o Raise retirement age for larger labour force
o Improve social safety nets (health & unemployment)
o Reform state-owned enterprises
o Tackle aging population
o Navigate rising global protectionism
, Les 2: China and International Law and
Organisations
Imperial China (Qing Dynasty 1644-1911)
Until 1860:
- Saw itself as the “Middle Kingdom” at the centre of a tributary world order
(Tianxia)
- Rejected Western-style international law, viewing it as a tool of imperialism
- Forced into the international system through unequal treaties after the
Opium Wars (1842-1860) Start of the Century of Humiliation
- Exception: Treaty of Nerchinsk (1689) with Russia was a rare equal treaty
Imperial & Republican Period (1911-1949)
Shift towards international engagement
- Joined Universal Postal Union in 1897
- Participation in the Hague Conferences in 1899-1907
China and International Law and Organisations
- After the Boxer Rebellion (1900), a peasant uprising against foreigners
supported by the Qing, relations with foreign powers worsened
- The 8-Nations Alliance (US, UK, Germany, France, Austro-Hungary, Italy,
Russia, Japan) intervened militarily
- The Boxer Protocol (1901) forced China to pay heavy indemnities to 11
countries, including Belgium
- Belgium played minor role (imperial ambitions / Leopold 2s interest in
China)
- Belgium received a concession in Tianjin and promoted itself via structures
like the Chine Pavilion and Japanese Tower
Republican China (1911-1949)
- Paris Peace Conference (1919): China actively participated
o But disillusioned by transfer of German holdings in Shandong to
Japan and British suppression of Chinese labour protests in 1925
China after ww2
- Was part of Roosevelt’s “Big Four” to help found the UN
- After 1949, PRC expected UN membership but was blocked by US and
allies, especially after Korean War.
o US backed Taiwan’s seat and delayed PRC recognition until much
later
Historical and Cultural Legacy
- Emphasis on ethics over law (rule of man vs. rule of law)
- Governance through moral leadership and hierarchy, not checks and
balances
- Importance of Guanxi: different levels of reliance or trustworthiness
depending on relationship (jiaren: family, zijiren: members of the same
social group; Shuren: trustworthy friends; shengren: strangers
Domestic ideology & China’s view on IL
- Foreign policy shaped by:
o Marxist internationalism
