Elizabeth C. Economy - The World According to China

Polity Press

65 Bridge Street

Cambridge CB2 1UR, UK

Polity Press

101 Station Landing

Suite 300

Medford, MA 02155, USA

All rights reserved. Except for the quotation of short passages for the purpose of criticism and review, no part of this publication may be reproduced, stored in a retrieval system or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior permission of the publisher.

ISBN-13: 978-1-5095-3751-8

A catalogue record for this book is available from the British Library.

Library of Congress Cataloging-in-Publication Data

Names: Economy, Elizabeth, 1962- author.

Title: The world according to China / Elizabeth C. Economy. Description: Medford : Polity Press, 2022. | Includes bibliographical references and index. | Summary: “A penetrating analysis of China’s global ambitions from one of the world’s leading China experts”--Provided by publisher.

Identifiers: LCCN 2021013890 (print) | LCCN 2021013891 (ebook) | ISBN 9781509537495 (hardback) | ISBN 9781509537518 (epub)

Subjects: LCSH: China--Foreign relations--21st century | China--Politics and government--2002- | China--Foreign economic relations--21st century. | China--Relations. | Geopolitics--China. | Xi, Jinping.

Classification: LCC DS779.47 .E27 2022 (print) | LCC DS779.47 (ebook) | DDC 327.51--dc23

LC record available at https://lccn.loc.gov/2021013890LC ebook record available at https://lccn.loc.gov/2021013891

The publisher has used its best endeavours to ensure that the URLs for external websites referred to in this book are correct and active at the time of going to press. However, the publisher has no responsibility for the websites and can make no guarantee that a site will remain live or that the content is or will remain appropriate.

Every effort has been made to trace all copyright holders, but if any have been overlooked the publisher will be pleased to include any necessary credits in any subsequent reprint or edition.

For further information on Polity, visit our website:

politybooks.com

ADBAsian Development BankAIartificial intelligenceAIIBAsian Infrastructure Investment BankASEANAssociation of Southeast Asian NationsBARFBelt and Road ForumBISSecurity Information Service (Czech Republic)BRIBelt and Road InitiativeCBAChinese Basketball AssociationCCPChinese Communist PartyCCTVChina Central TelevisionCDBChina Development BankCGTNChina Global Television NetworkCIsConfucius InstitutesCICIRChina Institutes of Contemporary International RelationsCMCCentral Military CommissionCOSCOChina Ocean Shipping CompanyCPECChina–Pakistan Economic CorridorCPTPPComprehensive and Progressive Agreement for Trans-Pacific PartnershipDPPDemocratic Progressive PartyDRAMdynamic random-access memoryDSRDigital Silk RoadEDAelectronic design automationFAOFood and Agriculture OrganizationFDIforeign direct investmentFOIPFree and Open Indo-PacificGSMGlobal System for Mobile TelecommunicationsHKHRDAHong Kong Human Rights and Democracy ActHKSARHong Kong Special Administration RegionHSMCWuhan Hongxin Semiconductor ManufacturingHSRHealth Silk RoadICAOInternational Civil Aviation OrganizationICCPRInternational Covenant on Civil and Political RightsICTinformation and communications technologyIDAInstitute for Defense AnalysisIECInternational Electrotechnical CommissionIFCInternational Finance CorporationIMFInternational Monetary FundIPintellectual propertyIPOinitial public offeringISOInternational Standards OrganizationITUInternational Telecommunication UnionKMTKuomintangMICMade in ChinaNBANational Basketball AssociationNDRCNational Development and Reform CommissionNEDNational Endowment for DemocracyNÚKIBNational Cyber and Information Security Agency (Czech Republic)PKUPeking UniversityPLAPeople’s Liberation ArmyPPEpersonal protective equipmentPRCPeople’s Republic of ChinaR&Dresearch and developmentRCEPRegional Comprehensive Economic PartnershipSCOShanghai Cooperation OrganizationSDGsSustainable Development GoalsSIASemiconductor Industry AssociationSSFStrategic Support ForceSOEsstate-owned enterprisesTCMtraditional Chinese medicineTHAADTerminal High Altitude and Area DefenseTRATaiwan Relations ActUFWDUnited Front Work DepartmentUMCUnited Microelectronics CorporationUN DESAUnited Nations Department of Social and Economic AffairsUNCLOSUnited Nations Convention on the Law of the SeaUNHRCUnited Nations Human Rights CouncilUNIDOUnited Nations Industrial Development OrganizationWHAWorld Health AssemblyWHOWorld Health Organization

This book has benefited greatly from the support of both the Hoover Institution and the Council on Foreign Relations (CFR), my two homes away from home. The dedication of these institutions to rigorous and informed policy debate created a vibrant intellectual environment that encouraged me to research and write this book. Even more importantly, the Hoover Institution and CFR are filled with wonderful scholars and colleagues who make going to work a privilege and a joy. In addition, I have been fortunate that the presidents of these institutions, Condoleezza Rice and Richard Haass, have provided me with guidance and inspired me through their scholarship and leadership in the policy world.

I am also grateful for the insightful advice and help I have received in reviewing the manuscript. Richard Haass and James Lindsay, CFR’s Director of Studies, read the entire manuscript and offered valuable advice, as did two anonymous reviewers. My good friends and colleagues Adam Segal and Karl Eikenberry each read parts of the book and made it better. I owe special thanks to Endy Zemenides, who opened the doors of Greece’s foreign policy community to me and provided me with a range of perspectives into how China is exercising its diplomatic and economic power outside its borders. Other friends, colleagues, and officials in China, Central Europe, Latin America, and the United States also generously shared their knowledge and insights.

I owe special thanks to my research associates, Lucy Best and Michael Collins. They provided outstanding research assistance throughout the writing process, brought their editing skills to bear as the manuscript neared completion, and, most importantly, brought a positive attitude and good humor to their work every day.

I also would like to thank my editor, Louise Knight, and editorial assistant, Inès Boxman, at Polity Press for their help and patience throughout the writing process. It was a joy to work with them. Justin Dyer also provided invaluable copyediting assistance.

Throughout the years, the Ford Foundation, the Luce Foundation, and the Starr Foundation have consistently encouraged and assisted me in my work. For this project, I am once again deeply grateful for their support.

All views and mistakes are my own and in no way should be attributed to anyone I have thanked above

I wrote much of the book over the course of the COVID-19 pandemic, which reminded the world of the fragility of life and the importance of spending time with those we care about most. The unexpected time that I was able to spend with my husband, David – who is a constant source of energy and optimism – and our three (mostly) grown children, Alexander, Nicholas, and Eleni, was an unexpected bright spot in a very dark year. Our time together, along with the weekly Zoom calls I had with my parents, James and Anastasia, and my siblings, Peter, Katherine, and Melissa, served as a constant reminder to me of what matters most in this world.

Chinese Communist Party (CCP) General Secretary and President of China Xi Jinping made the most of the moment. Speaking via videoconference at the opening ceremony of the United Nations World Health Assembly (WHA) on May 18, 2020 (Figure 1.1), he offered $2 billion over two years to help with the global response to the COVID-19 pandemic. The virus had first come to international attention in China and was now sweeping through the rest of the world. China itself had largely contained the spread. Everyday life was rapidly returning to normal, and Xi was prepared to assist other countries more in need. He pledged that when China was ready with a vaccine, the country would make it “a global public good.” And in a nod to the mounting calls from over 120 countries for an international investigation into the origins of the virus – a demand China had until then resisted – Xi declared his support for a “comprehensive review of the global response to COVID-19.” 1It was a deft move designed to ensure that China would not be singled out in an international investigation and that any report would include Beijing’s impressive success in containing the virus. It was also a personal diplomatic coup for the embattled Xi: the speech brought back memories of his January 2017 triumphs in Davos, where he touted Chinese leadership on globalization and free trade, and Geneva, where he pledged to defend the Paris Agreement on climate change. And his rhetorical magnanimity positioned China once again in stark contrast to the United States, whose president at the time, Donald Trump, had questioned the viability of the World Trade Organization, withdrawn from the Paris Agreement, and announced, just one month before Xi’s WHA speech, that the United States would withhold all its funding from the World Health Organization (WHO).