Elizabeth C. Economy
After decades of following
Yet all this is about to change.
For the rest of the world,
In the late 1970s, the Chinese leader Deng began the process of "reform and openness," precipitating a series of reforms that, over three decades, produced revolutionary change.
Yet for
At the heart of this next revolution is
Even as China moves ahead with its bold plans to transform its economy and society, new pressures and challenges will emerge. The resource demands of rapid urbanization are substantial. Half of the world's new building construction occurs in China, and according to one estimate, the country will construct 20,000-50,000 new skyscrapers over the coming decades.
Urban Chinese also make more organized political demands -- for a cleaner environment, broader cultural expression, and more transparent governance -- than their rural counterparts. Civil society blossoms in
Expanding popular access to the Internet will further up the ante for
Already, the Internet is evolving into a virtual political system in China: the Chinese people inform themselves, organize, and protest online. In
Activists have also used the Internet to launch successful campaigns -- some involving physical protests -- to prevent the construction of dams and polluting factories and to oppose the removal of Cantonese on television programs airing in
The core priorities of
In the 1990s, then Chinese President
Chinese investors are generally welcomed for their implicit promise to bring some of the success of "the China model" to the host countries. The willingness of the Chinese government and its state-owned enterprises to do business anywhere, anytime, and at any price has become legendary. As
Yet not everyone is as sanguine about the way China does business. Chinese companies have encountered resistance in a number of countries, including
The next wave of "going out," however, will take China far beyond investment in natural resources. As China becomes an innovative, knowledge-based economy, its leaders are encouraging their cash-rich state-owned enterprises and investment funds to take stakes in or acquire foreign companies, particularly those with desirable technologies. Where Chinese products are competitive, Chinese firms are jumping in feet first.
Ensuring a fair deal for the countries in which Chinese firms invest will require that those countries engage Chinese companies head-on. For example, the
Yet China has quietly continued to push the issue within the
Although the expansion of
China has also taken steps to protect its hold on strategic resources and, in some cases, to compel foreign companies to locate their manufacturing bases in China or be put out of business. In the process,
The world has become accustomed to many of the global impacts of
In
The international community reacted swiftly. At the
More challenges will follow. In
As the impact of
The result is a Chinese media blitz, with a price tag upward of
At the same time, Chinese officials remain committed to controlling the flow of information into and within the country. Censorship, Internet police who monitor and guide online discussions, new regulations for the registration of Internet Protocols, and arrests of Internet dissidents are all designed to prevent the Chinese people from straying too far outside acceptable political boundaries. Moreover, foreign media companies have been largely unsuccessful in capturing significant market share in China, and some -- such as
How successful Chinese media will ultimately be in winning the hearts and minds of the rest of the world will likely rest on their ability to change the way they do business. Other authoritarian states seek to emulate the Chinese model, restricting Internet access and controlling domestic media. However, gaining the respect and trust of the rest of the world will require China to adopt a very different strategy. An open and critical approach to reporting news about China will be essential. Ultimately, the impact of the Chinese media foray abroad may be less transformative globally than on the home front. As Chinese media companies remake themselves to compete in the international marketplace with more investigative and open reporting, the pressures will mount to adopt similar strategies in the domestic market.
China has been remarkably consistent over the past three decades in defining its core interests as economic growth and political stability. What has changed is the leadership's understanding of what is required to achieve these goals.
In the United States,
First, rather than relying primarily on bilateral engagement (an effort attempted and later discarded in the face of Chinese lack of interest), the Obama administration should continue to work with others to help influence
The
U.S. policy toward China cannot consist merely of blocking and parrying Chinese initiatives and promoting American ideals. Nor can
The third plane of U.S. policy should concern
If the United States wants to be the global leader in clean-energy technology by 2050, for example, it should now be developing the intellectual, financial, and political infrastructure to get there. And when Chinese clean-energy investment interests come knocking, as they are doing, the United States will be well positioned to determine what types of investment should be welcomed. When done right, such deals have the potential to result in equitable partnerships and successful cooperation. In
Similarly,
Paying close attention to transformations within China will pay significant dividends for U.S. policymakers seeking to predict what China might do next. Growing water scarcity in China, for example, will likely shape and perhaps even limit agricultural and industrial opportunities there over the coming decades. Listening to early signals of policy shifts, such as the recent scholarly but public commentary on the future of Chinese military bases abroad, is also important. Finally,
Although
As China seeks to remake global norms and institutions, it is also essential that the United States continue to assert its own ideals and strategic priorities and continue to work closely with other like-minded nations. Ultimately, however, the United States will succeed only when it can clearly articulate its own economic and political priorities and then ascertain how China can best help meet those objectives.
ELIZABETH C. ECONOMY is C. V. Starr Senior Fellow and Director for Asia Studies at the Council on Foreign Relations.
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(C) 2010 Foreign Affairs
