B412 Week 7 Lecture - China and the rest of the World

School of Business

International Business Regions: China

Aspects of the region & the rest of the world

Lecture Week 7

Pearson College London XXXX 2

School of Business

International Business Regions: ChinaAspects of the region & the rest of the world

Learning Outcomes Week 7

China’s re-emergence on the World Stage and the shift in the balance of power

• The Zhongguo 中国 - Back to the Centre?

• The nature of its rise: peaceful or predatory?

• Asian neighbours: ‘friendly giant’

• Africa: win: win policy

• The hunt for global resources

• Policy of Non-Intervention & Soft power

• China & the US – shift in world order?

Pearson College London XXXX 3

School of Business

International Business Regions: ChinaAspects of the region & the rest of the world

Awaking from the ‘wrong’ side of history

“A nation that comprises 1/5th of the world’s population is already in the process of transforming the workings of the global economy and its structure of power. A country that regards itself, for both cultural and racial reasons, as the greatest civilization on earth will, as a great global power, clearly in time require and expect a major reordering of global relationships…for the next 20 years or so, as it continues its modernization, it will remain an essentially status-quo power”

‘When China Rules the World’, Martin Jacques

Pearson College London XXXX 4

School of Business

International Business Regions: ChinaAspects of the region & the rest of the world

A new beginning – China’s century?

“The fact that China is so huge means that it exercises a gravitational pull on every other nation…Size will enable China to set the terms of its relationships with other countries… China’s mass will oblige the rest of the world largely to acquiesce in China’s way of doing things…It is possessed of a 5,000 year history and an extremely long memory…it is blessed with the virtue of patience, confident in the belief that history is on its side.”

‘When China Rules the World’, Martin Jacques

Pearson College London XXXX 5

School of Business

International Business Regions: ChinaAspects of the region & the rest of the world

Geographical Context

• 14 land-connected neighbours of Asia / former Soviet Union• Eastern seaboard• Japan

Pearson College London XXXX 6

School of Business

International Business Regions: ChinaAspects of the region & the rest of the world

Impulse to ‘go out’

China is an ‘internal’ empire bounded by its own well-defined borders. It is a civilisation bent on consolidating and reinforcing its own territorial integrity and dedicated to raising the level of life within it.

No religious impulse drives its outward thrust

China has no intent to colonise or administer any overseas territory.

- Barnaby Powell & Alex Mackinnon

Pearson College London XXXX 7

School of Business

International Business Regions: ChinaAspects of the region & the rest of the world

Most Favoured (Desti)Nation“In 2006 almost half the world’s leaders from 192 countries visited China”

– Mark Leonard, ‘What China thinks’

• Investments or land deals

• Access to markets• Gas or nuclear deals• Environmental

collaboration• Peaceful Co-existence

Pearson College London XXXX 8

School of Business

International Business Regions: ChinaAspects of the region & the rest of the world

Prince William China visit, 01-03 March 2015

http://news.sky.com/story/1436769/prince-william-sells-brand-britain-to-china

Pearson College London XXXX 9

School of Business

International Business Regions: ChinaAspects of the region & the rest of the world

Five Principles of Peaceful Coexistence

1. Mutual respect for sovereignty and territorial integrity

2. Mutual non-aggression

3. Non-interference in each other's internal affairs

4. Equality and mutual benefit

5. Peaceful coexistence

Pearson College London XXXX 10

School of Business

International Business Regions: ChinaAspects of the region & the rest of the world

Energy and food

‘Smart power’ – the hunt for survival

Pearson College London XXXX 11

School of Business

International Business Regions: ChinaAspects of the region & the rest of the world

Near neighbours - Asia

Pearson College London XXXX 12

School of Business

International Business Regions: ChinaAspects of the region & the rest of the world

Taiwan

• Own government since 1949 when KMT forced into exile at founding of People’s Republic of China

• Chinese government sees it as integral part of China

Pearson College London XXXX 13

School of Business

International Business Regions: ChinaAspects of the region & the rest of the world

China’s 2nd continent – win:win politics

Image Source: http://i.bnet.com/blogs/tumblr_lkzz79m3kl1qiuwg7.png

Pearson College London XXXX 14

School of Business

International Business Regions: ChinaAspects of the region & the rest of the world

Pearson College London XXXX 15

School of Business

International Business Regions: ChinaAspects of the region & the rest of the world

A new world order?

US$

Rmb元VALUE OF US imports from China2009: US$296.4bn2011: US$393.3bn2014: US$466.6bn [vs $124bn of exports]