13.3 China's engagement with developing countries and regional diplomacy
3 min read•august 9, 2024
China's engagement with developing countries is a key aspect of its foreign policy. It focuses on building partnerships in Africa and Asia through economic cooperation, infrastructure projects, and cultural exchanges. This approach aims to expand China's global influence and create mutual benefits.
China has also spearheaded multilateral initiatives like the and alliance. These efforts showcase China's growing leadership in regional security and economic governance, challenging traditional Western-dominated institutions and promoting alternative development models.
China's Engagement in Africa and Asia
South-South Cooperation and African Partnerships
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- promotes solidarity among developing nations
- Emphasizes and shared development goals between China and African countries
- (FOCAC) established in 2000 serves as a platform for collective dialogue
- FOCAC meetings occur every three years, alternating between China and African countries
- China pledges significant financial support for African development projects at FOCAC summits
- Key areas of cooperation include infrastructure development, agriculture, and human resource training
- China-Africa trade volume increased from 200 billion in 2019
- Chinese investments in Africa focus on natural resources, manufacturing, and construction sectors
Strengthening Ties with Southeast Asian Nations
- China-ASEAN relations have evolved from cautious engagement to strategic partnership
- ASEAN-China Free Trade Agreement signed in 2002 boosted economic integration
- Annual China-ASEAN summits address regional issues and promote cooperation
- Maritime territorial disputes in the South China Sea remain a source of tension
- China's incorporates several ASEAN countries (Indonesia, Malaysia, Thailand)
- Increased Chinese cultural diplomacy efforts in Southeast Asia through
- China provides development assistance to less developed ASEAN members (Cambodia, Laos, Myanmar)
- Growing concerns among some ASEAN nations about economic dependence on China
China's Multilateral Initiatives and Organizations
Regional Security and Economic Cooperation
- Shanghai Cooperation Organization (SCO) founded in 2001 focuses on regional security and economic cooperation
- SCO members include China, Russia, and Central Asian states
- Counter-terrorism, separatism, and extremism form the main security priorities of SCO
- Joint military exercises conducted regularly among SCO member states
- SCO expanded to include India and Pakistan as full members in 2017
- Organization serves as a counterbalance to Western influence in Central Asia
- SCO promotes energy cooperation and infrastructure development among member states
- China uses SCO to enhance its leadership role in the region and promote its security interests
BRICS Alliance and Global Economic Governance
- BRICS group consists of Brazil, Russia, India, China, and South Africa
- Represents major emerging economies challenging the existing global economic order
- Annual BRICS summits address global economic issues and promote cooperation
- New Development Bank established by BRICS in 2014 as an alternative to Western-led institutions
- BRICS Contingent Reserve Arrangement provides financial support to members facing balance of payments pressures
- Group advocates for reform of international financial institutions (IMF, World Bank)
- BRICS countries collectively account for over 40% of the world's population and 25% of global GDP
- Intra-BRICS trade and investment have increased significantly since the group's formation
Asian Infrastructure Investment Bank and Development Finance
- (AIIB) launched in 2016 under Chinese leadership
- AIIB aims to address Asia's infrastructure funding gap estimated at $26 trillion through 2030
- Bank has 103 approved members as of 2021, including both regional and non-regional countries
- AIIB focuses on sustainable infrastructure, cross-border connectivity, and private capital mobilization
- Projects funded include energy, transportation, and urban development initiatives across Asia
- AIIB complements existing multilateral development banks while promoting Chinese influence
- Bank adheres to high environmental and social standards in project approval and implementation
- AIIB's establishment reflects China's growing role in shaping global economic governance
Key Terms to Review (18)
Asian Infrastructure Investment Bank: The Asian Infrastructure Investment Bank (AIIB) is a multilateral development bank established in 2015 to support infrastructure projects across Asia and beyond, aiming to enhance economic development and connectivity. It connects with various global initiatives by promoting sustainable investment in infrastructure, thus influencing economic growth models and fostering relationships with developing nations.
Belt and Road Initiative: The Belt and Road Initiative (BRI) is a global development strategy initiated by China in 2013 that aims to enhance regional connectivity and economic integration through infrastructure investment and trade. By building a network of roads, railways, ports, and other infrastructure across Asia, Europe, and Africa, the BRI seeks to promote trade routes and foster economic growth while extending China's influence on the global stage.
Bilateral trade agreements: Bilateral trade agreements are contracts between two countries aimed at promoting trade and investment by reducing tariffs and other trade barriers. These agreements are significant as they can strengthen economic ties, facilitate smoother market access, and enhance cooperation between the involved nations. They often focus on specific sectors or industries and may include provisions for dispute resolution and regulatory harmonization.
BRICS: BRICS is an acronym for a group of five major emerging economies: Brazil, Russia, India, China, and South Africa. This coalition aims to promote peace, security, and development in the global economy while offering an alternative to Western-led financial institutions. The collaboration among these nations enhances China's engagement with developing countries, contributes to its global ambitions, and shapes its role in international organizations.
China-Africa Cooperation Forum: The China-Africa Cooperation Forum (FOCAC) is a platform for collective dialogue and cooperation between China and African countries, initiated in 2000. This forum aims to strengthen economic ties, promote trade, and enhance political relationships, reflecting China's broader strategy of engagement with developing nations and regional diplomacy.
China-ASEAN Free Trade Agreement: The China-ASEAN Free Trade Agreement (CAFTA) is a trade agreement that establishes a free trade area between China and the ten member states of the Association of Southeast Asian Nations (ASEAN). It aims to promote economic cooperation, reduce tariffs, and enhance trade and investment between China and ASEAN countries, playing a pivotal role in regional economic integration and development.
Confucius Institutes: Confucius Institutes are educational and cultural organizations that aim to promote Chinese language and culture worldwide. They are often established in partnership with foreign universities and educational institutions, serving as a tool for China to enhance its soft power and improve international relations, particularly with developing countries through cultural diplomacy.
Development aid: Development aid refers to financial assistance and resources provided by wealthier countries or international organizations to support the economic, social, and political development of developing countries. This form of aid aims to improve living standards, reduce poverty, and promote sustainable growth, often through projects in areas like education, healthcare, infrastructure, and governance.
Economic statecraft: Economic statecraft refers to the use of economic tools and resources by a country to achieve its foreign policy objectives, often involving sanctions, trade agreements, and foreign aid. This strategy allows nations to influence other countries' behavior, promote their own interests, and strengthen diplomatic ties, particularly in the context of developing countries where economic dependencies can be more pronounced.
Forum on China-Africa Cooperation: The Forum on China-Africa Cooperation (FOCAC) is a multilateral platform that facilitates dialogue and cooperation between China and African countries, focusing on economic, political, and cultural exchanges. Established in 2000, FOCAC aims to enhance the partnership between China and Africa, providing a framework for development assistance, investment opportunities, and addressing common challenges faced by both regions.
Infrastructure deals: Infrastructure deals refer to agreements between countries, often involving the construction or improvement of essential public works like roads, bridges, and energy facilities. In the context of China's engagement with developing countries, these deals are part of a broader strategy to expand economic influence and strengthen diplomatic ties through investment in critical infrastructure projects.
Investment diplomacy: Investment diplomacy refers to the strategic use of foreign direct investment (FDI) as a tool for enhancing political relations and economic ties between countries. This practice often involves a country leveraging its financial resources to influence and gain favor with developing nations, fostering partnerships that can lead to mutual benefits. By investing in key sectors of these countries, a state can secure political goodwill, access to resources, and potential geopolitical advantages.
Mutual benefit: Mutual benefit refers to a reciprocal arrangement where two or more parties gain advantages or value from a cooperative relationship. In international relations, especially concerning engagement with developing countries, this concept emphasizes partnerships that enhance economic, political, and social ties, leading to shared prosperity and stability.
Shanghai Cooperation Organization: The Shanghai Cooperation Organization (SCO) is a Eurasian political, economic, and security alliance founded in 2001, primarily involving China, Russia, and several Central Asian nations. It aims to promote regional stability, economic cooperation, and cultural exchange among its member states while addressing common security threats such as terrorism and extremism.
South-south cooperation: South-south cooperation refers to the collaborative efforts and exchanges between countries in the Global South, aimed at addressing common challenges and promoting development. This term highlights the importance of solidarity and mutual support among developing nations as they work together to enhance economic growth, reduce poverty, and tackle issues such as climate change. It is increasingly relevant in the context of global initiatives where emerging economies seek to forge partnerships and share experiences with one another.
Trade partnerships: Trade partnerships are agreements between countries to facilitate commerce and economic cooperation, focusing on reducing barriers like tariffs and quotas. These partnerships are crucial for enhancing mutual benefits, such as access to markets, investment opportunities, and shared resources, especially in the context of developing nations seeking economic growth and stability.
Wang Yi: Wang Yi is a prominent Chinese politician and diplomat, known for his role as the Minister of Foreign Affairs of the People's Republic of China. His work focuses on advancing China's foreign relations, particularly with developing countries and through multilateral frameworks like the United Nations. Wang Yi has played a key role in shaping China's global diplomatic strategies, emphasizing cooperation, development, and multilateralism.
Xi Jinping: Xi Jinping is the General Secretary of the Communist Party of China and the President of the People's Republic of China, having assumed power in 2012. His leadership is characterized by a strong emphasis on consolidating power, promoting economic reform, and asserting China's role on the global stage.