Globalization and Autonomy in China
Yu Keping, Peking University, China
Preface
Professor Keping is Director of the Centre for Chinese
Government Innovations at Peking University and the China
Centre for Comparative Politics and Economics (CCCPE) in
Beijing. This paper was presented at the Fourth MCRI
Globalization and Autonomy Team Meeting at the Munk Centre
for International Studies, University of Toronto, 23-25
September 2005.
Globalization Studies in China
China speaks a fascinating story about globalization and
globalization studies, both when it comes to understanding
the concept theoretically and how it involves the practice
of globalization. On the theoretical plane, in the early
half of the 1990s, the word "globalization" was so sensitive
politically that scholars feared to mention it in articles
and books, while now it has become so fashionable that
almost everyone uses it, whether he or she accepts or
rejects it. On the practical level, globalization had long
been regarded to be synonymous with capitalist development
ideologically. More recently, both in China and outside, the
country is accepted widely to be one of the biggest winners
of globalization in the world.
Chinese scholars scarcely used the concept of globalization
before the mid-1990s because it was received ideologically
as a synonym for capitalism. Even for those few advocates of
globalization, the term was used strictly in its economic
sense during the 1990s. In this period, a journal editor
would routinely add the adjective "economic" to
"globalization" when an author submitted an article on
globalization. In 1998, Mr. Jiang Zeming, then President
and General Secretary of the Communist Party of China (CPC),
spoke for the first time about "economic globalization" as
"an objective trend of world economic development." The top
leader's recognition of globalization gave a great impetus
to scholars and analysts engaged in studies of
globalization, making it a hot issue among Chinese
intellectuals. A number of essays on globalization have
since been published and huge numbers of foreign books and
essays on globalization have been translated into Chinese
and published in China. I was very lucky to chair the first
national conference specifically on globalization held in
1997 in Shengzhen, the most open Special Economic Zone, and
to edit the first Globalization Studies
Series in Chinese. It includes seven books published
in 1998. The Globalization Translation
Series, which I have also been organizing, has
published over thirty books, all by the same publishing
house — the Chinese Social Sciences and
Documentation Publishing House.
At present, Chinese scholars have focused on several
important dimensions of globalization: the concept of
globalization; types of globalization (besides economic
globalization); China's path towards globalization; the
implications of globalization for China; and globalization's
advantages and disadvantages. Is globalization a blessing
or a disaster for China's modernization and development? In
each of these areas, Chinese scholars' views on
globalization can be summarized in six paradoxes that they
have debated in relation to globalization.
First, is globalization a fact or just a fiction? Some
people think that globalization is a fact — that it
has an objective existence that deeply impacts human
development. They see humankind as entering into a global
age. To the contrary, others insist that globalization is
simply a fiction promoted by Western scholars and perhaps
even represents a conspiracy of new Imperialism. In their
view, globalization has to be a myth if only because the
diverse human politics, economies, and cultures can never be
globalized.
Second, is globalization inherently capitalist or
potentially socialist? Many Chinese intellectuals believe
that globalization is a necessary result of capitalist
productive development and an inherent thrust of capitalism.
Globalization represents the extension of capitalist modes
of production across the planet and signifies that
capitalism has entered a new stage of its development.
Therefore, globalization, to be exact, is global capitalism.
In contrast, some scholars argue that globalization is
ideologically neutral in spite of its origins in advanced
capitalist countries. In its nature, globalization is
neither capitalist nor socialist. Like the market economy,
it can be combined with both capitalism and socialism.
Third, besides economic globalization, are there political
or cultural forms of globalization? For many scholars,
globalization is nothing but economic integration
particularly increased integration on a planetary scale of
capital, products, market, technology, production, and
communication. They limit globalization strictly to
economics and refuse to expand it to other domains of human
experience. Many other scholars, however, believe that the
concept of globalization extends beyond economics even
though it originates in economic processes of integration. A
process of political and cultural globalization, they argue,
is underway at the same time as economic integration is
going on. In their view, globalization has not only economic
implications but also political and cultural ones. Thus,
globalization is an overall process of social change,
including economic, political, and cultural processes.
Fourth, is globalization, on balance, advantageous or
harmful for developing countries? Some intellectuals find
that developed countries dominate and control the process of
globalization with their economic and political power. They
suggest that developed, rather than developing countries are
the true winners of globalization. Others argue that
globalization is not a zero-sum game and all players can be
winners. What matters here are the strategies that
governments take. China is a good example of a country
poised to win a lot from globalization, and thus one to
which persons point when they make their case.
Fifth, is globalization nothing more than modernization,
Westernization, or Americanization? Many people believe that
globalization brings Westernization, and above all,
Americanization for China. Such a development is equated
with the loss of autonomy. In their eyes, the standards,
regimes, and regulations that come to be adopted by
countries in response to the processes of globalization are
made by Western countries according to their own values and
interests. Others disagree. They think that globalization is
quite different from Westernization or Americanization. For
these persons, globalization is a fundamental process of
modernization in spite of the fact that this process
originates in the West and the United States leads it.
Following on this fifth paradox, is there a Chinese model or
way towards modernization in the global age? Some say "yes,"
there is a Chinese model for development with its own
special characteristics and some of them even would like to
accept the idea of a "Beijing Consensus" raised by American scholar, Joshua Cooper Ramo. Others, however,
reject this argument firmly and argue that there is no
specifically Chinese way to modernization, only a capitalist
way or following a path towards adopting more of capitalism.
For a few of this latter group, the Chinese model for
globalization is based on the so-called "Washington
Consensus," rather than a "Beijing Consensus."
Given such debates, it is not surprising that intellectuals
in China, much as those abroad, divide themselves in two
camps. Some are advocates of globalization while others are
opponents of it. The former see globalization as a blessing
and warmly welcome globalization. The latter resist
globalization, viewing it as a disaster. Some Chinese
scholars see globalization as the pathway to a Chinese
renaissance; China's future, including democracy and
economic prosperity, depends largely on its taking advantage
of globalization. Other people, however, see globalization
to be a trap and regard supporters of globalization as
traitors to a modern China.
Preserving Autonomy Under Globalization Pressures
Many people believe that China is one of the biggest winners
from globalization. From 1978 to 2003, the Chinese gross
national product increased from 362.4 billion yuan in RMB
(US$44.2 billion) to 11,690 billion yuan in RMB (US$1,425.6
billion). In constant RMB (and dollars), it has increased
8.4 times with an average yearly growth rate of over 9
percent. This growth rate is much higher than the 2.5
percent average GNP growth rate of the developed countries,
the 5 percent growth rate of developing countries, and the 3
percent average world growth rate during the same period. In
this period, China has registered the fastest economic
growth in the world. High-speed economic growth has been
accompanied by a 22-fold expansion in the scale of foreign
trade over the past twenty-two years. At the same time,
China successfully protected itself from the shocks of the
Asian financial crisis in the 1990s, and has realized its
goal of entering the World Trade Organization (WTO) after
ten years of assiduous effort.
A primary reason China has become one of the biggest winners
from globalization is the policy strategy that the Chinese
government has followed in addressing the challenges of
globalization. This basic policy has two pillars: actively
opening up to the world while straining every nerve to
protect the country's autonomy.
The key measures and stances that the Chinese government has
adopted in actively joining into the processes of
globalization include:
-
An independent globalization strategy.
With a good understanding and anticipation of the processes
of globalization, China has adopted an active and
independent globalization strategy. China is a country where
its politics are highly influenced by ideology; but
ideological considerations have been consciously put aside
in the pursuit of globalization. While many Chinese scholars
were debating on globalization, Chinese leaders made their
own judgments about the nature, advantages, and
disadvantages of globalization; adopted an active strategy;
and took appropriate actions in order to take full advantage
of globalization. For example, China made tireless efforts
to join the WTO, expanded international cooperation and
exchange, actively participated in global governance and
global actions to counter international terrorism,
established the Shanghai Cooperation Organization, pushed
forward negotiations to eliminate nuclear weapons in the
Korean Peninsula, and proposed a strategy of "peaceful
development."
-
Leadership development. China has
worked assiduously to improve the qualifications of
government officials; to select and promote for leadership
positions, knowledge elites who are globalization-oriented;
and to train officials in the knowledge economy and problems
of globalization. Currently there are 672,531 officials
above the county level, and 90 percent of them have academic
degrees equal to or above the associate college level, up
from 16 percent in 1981. According to the training plan of
the central government, 25,000 officials above the rank of
county or division will be trained from 2001 to 2005, among
these, 2,000 officials at the province and ministry level.
This new group of leaders is strongly professionally
competent and they are increasingly skilled at conducting
international cooperation and exchange activities. In short,
these officials are set to become the pivotal force of the
Chinese government in dealing with the process of
globalization.
-
Adaptive capability and flexibility.
The Chinese government has developed a flexible system and
set of mechanisms with strong adaptive capability.
Participation in the global game means abiding by global
regimes, but global regimes conflict with domestic regimes
in a number of areas. How to deal with the relationships and
potential conflicts between domestic and international
regimes is an issue that the Chinese government has had to
face. After careful assessment of the advantages and
disadvantages of globalization, Chinese government leaders
made a painful but correct choice. They decided to adapt
Chinese domestic regimes to international ones, and to
revise domestic regimes that are not consistent with
international regimes. Consequently, the government bypassed
traditional forbidden zones and signed a series of
international treaties covering a wide range of issues from
political rights, to international security, international
trade, and environmental protection. It also revised
relevant domestic laws in accordance with related
international treaties. In the process of negotiating terms
for WTO membership, and subsequent to joining the WTO, the
State Council required up to thirty ministries and
departments in 2002 to clean up nearly 2,300 relevant laws
and regulations. About half of the laws and regulations were
eliminated or revised as a result. Local laws and
regulations revised or eliminated by various provinces and
autonomous regions amount to more than a hundred thousand.
-
Peaceful development. The Chinese
government has been striving for international cooperation
and creation of a favorable international environment. China
needs a peaceful international environment in order to focus
on development, a need that is especially important in an
era of globalization. In adapting to the challenges of
globalization, the Chinese government proposed an
international strategy of "peaceful development." The main
elements of this strategy are to insist on the diplomatic
principles of independence, self-reliance, and peaceful
co-existence; to abide by the guiding ideology of "being
peaceful and different"; and to strive for a new notion of
security with "mutual trust, mutual benefits, equality, and
cooperation." With these as the core principles, the
government promotes global democratic governance. It strives
to engage in international cooperation more actively in all
spheres, and pursues reciprocal benefits in peaceful
co-existence and cooperation.
In following this strategic approach, the Chinese government
rose above ideological differences and developed bilateral
and multilateral relations with various countries and
regions in the areas of politics, economy, and culture.
Within just five years, from 1998 to 2002, it signed more
than 1,056 bilateral and multilateral treaties. At the same
time, the Chinese government has encouraged foreign exchange
and cooperation activities conducted by local governments,
individuals, and civil society groups. In 2002, the number
of foreign citizens entering China was close to 13.5
million, while 16.3 million Chinese left China to visit
other countries. In the past five years, the number of
entries and departures increased more than 10 percent per
year on average. As of 2002, 296 Chinese cities had
established friendship and partnership relationships with
847 foreign cities.
At the same time as China has participated extensively in
globalization, it has taken several important steps to
protect its autonomy.
-
Remaining aware of globalization's negative
effects. Generally speaking, the negative effects of
globalization for China are three-fold. First, globalization
threatens domestic economic security. Foreign corporate
control of major company shares and gaining a monopoly on
crucial technologies threatens adjustment and the upgrading
of the country's industrial structure. Excessive foreign
debt may bring potentially enormous risks and increased
reliance on foreign capital and trade may weaken China's
capacity to protect its economy and its citizens from
fluctuations in the world economy. The large-scale opening
of financial markets may also greatly increase financial
risks. Second, globalization weakens state sovereignty. One
of the basic conditions for participating in globalization
is to abide by existing international rules, international
treaties, and agreements. Most of these international
regimes have been established in accordance with the
interests and standards of advanced Western countries. In
order to gain the economic benefits brought by
globalization, developing countries usually have to make
some concessions in administrative jurisdiction, thus
weakening their sovereignty. Third, globalization threatens
domestic political values and culture, leading to possible
loss of control of the social order, and increased risks to
domestic governance. With advanced Western countries
controlling the course of globalization and constructing
global regimes, it is inevitable that they will seek also to
export their world views and value systems along with their
capital, technology, and products. These world views and
value systems may clash with Chinese cultural traditions and
political order, creating a potential for social and
political instability.
-
Prevention of foreign capital control in key
sectors. On the one hand, China does everything
possible to attract foreign investment. Such investment is
usually encouraged by favourable policies on taxes, lands,
and license permits. On the other hand, foreign investments
are greeted with considerable caution when it comes to the
most important economic sectors such as energy,
communications, finance, education, and mass media.
-
Controlling the speed of change. The
Chinese government has efficiently met its agenda of
entering into the world economy. At the same time, it has
taken many measures to prevent the country from entering too
quickly into the process of globalization, thereby
destabilizing political and social order.
-
Retaining dominance of economic development
for core national interests. China has not given up
its dominance of economic development for core national
interests, even at the cost of slowing down overall economic
growth. For example, China has made her own decision on
devaluation of Chinese currency regardless of high pressure
from the United States and other developed countries.
-
Emphasis on national sovereignty.
Unlike some Western political leaders who downplay state
sovereignty in the global age, Chinese leaders make
sovereignty the basis upon which all political and economic
activities take place, including economic globalization.
-
Advocating national cultural values.
Since the period of reform began, the government has also
encouraged a revival of traditional Chinese values. In this
respect an opening up to the world is complemented by
unprecedented promotion of long-standing cultural forms.
Traditional clothing, cuisine, festivals, operas, and arts
are becoming newly fashionable at the same time as
McDonald's, the Internet, Mickey Mouse and the NBA are
gaining popularity.
-
Vigilance against Westernization and
Americanization. In the view of many Chinese, there
is a real risk that globalization will lead to
Americanization or Westernization. Thus the government has
developed many strategies to prevent globalization from
inserting Americanization or Westernization in politics, the
economy, and culture. For instance, Chinese leaders do not
wish to imitate a capitalist economic model; they refuse to
adopt Western political systems and core political values.
In conclusion, China is no different than most Western
countries in engaging in a set of deep debates and
discussion of the advantages and disadvantages of
globalization. Some believe that the disadvantages outweigh
the advantages. Others, including the government, have come
to believe that the advantages are potentially much more
significant than the disadvantages. In acting on this
belief, the government has entered into a wide range of
international and regional cooperation arrangements,
including becoming a member of the WTO. It has developed a
conscious strategy to draw maximum advantage from
globalization by improving the education and skills of its
officials and promoting its own research and development
policies. All the while that China has engaged fully with
globalization, it has thought strategically about how best
to preserve its autonomy economically, politically, and
culturally. It protects core economic sectors, it retains a
political system that fits its needs and society well, and
it counters cultural globalization by promoting the revival
of long-standing ideas, values, and cultural practices.