China’s Search for ‘National Rejuvenation’ : Domestic and Foreign Policies Under Xi Jinping

This volume discusses a range of key domestic forces driving the current Chinese growth ranging from economic reforms to governance practices to analyze their impact and influence at home as well as on China’s foreign and security policies in its near and extended neighbourhood. At the same time, the volume also looks at specific themes like technology, agricultural development, reform of state-owned enterprises and the use of Party bodies to engage in foreign propaganda work among other things to offer examples of the merging of Chinese domestic political and foreign policy interests. In the process, the book offers its readers a better idea of China’s place in the world as the Chinese themselves see it and the implications over time for China, its neighbourhood and the wider world. Acknowledgements 6 Contents 7 Contributors 10 List of Tables 12 Part I: Introduction 13 Chapter 1: ‘National Rejuvenation’ as Panacea for China’s Domestic and External Challenges 14 Continuing Economic Challenges 16 The ‘China Model’ 18 Structure of the Book 23 Conclusion 28 References 29 Part II: Domestic Developments 31 Chapter 2: Reform of Party and State Structures in China 32 Governance in China After the 18th Congress 33 National Governance in China After the 19th CPC Congress 36 Xi Jinping Thought 36 Amendment of the Constitution 36 Reforming Party and State Apparatuses 37 National Supervisory Commission and the System of Supervisory Bodies in China 38 National Governance in China in the Second Decade of the 21st Century 40 Conclusion 43 References 43 Chapter 3: Changes in China’s Economic Development Model After the 19th CPC National Congress 46 Perspectives on Economic Development in the 19th National Congress Report 49 Developing an Economic Development Model with Specific Chinese Characteristics 51 Supply-Side Adjustment as Main Focus of the Economic Reform Process 52 BRI as Foundation for China’s New Foreign Economic Relations 53 New Challenges After the 19th National Congress 54 References 56 Chapter 4: Xi Jinping’s Political and Economic Initiatives and the ‘Success Trap’ 58 The ‘New Era’ 62 ‘Xi Jinping Thought’ 64 The Policy Package 67 References 70 Chapter 5: Political Considerations in the Chinese Leadership’s Economic Assessments 72 Unstable Economic Foundations 73 Growth Numbers and Political Implications 76 The Party in Command? 79 Or a Party in Crisis? 81 References 82 Chapter 6: China’s Military Reforms in the Wake of Recent CPC National Congresses 85 National and International Contexts Prior to PLA Reforms 86 Objectives and Content of PLA Reforms Since the 18th CPC National Congress 87 Focus on Military Development 87 Military Missions in the New Period 88 Strategic Steps 88 Revolutionization 88 Modernization 88 Formalization 89 Relationship Between the CPC and the PLA After the 19th National Congress 91 Assessment of the Impact of PLA Reforms on Regional Peace and Stability 94 References 96 Part III: Neighbourhood Policies 102 Chapter 7: Key Markers and Trends in Chinese Foreign Policy in South Asia 103 The BRI as the New “Organising Logic” of Chinese Foreign Policy 104 Analysing China’s Economic Interactions with South Asia 105 China’s Trade Travels Beyond India 105 Pakistan Emerges as a Favoured Destination for Chinese OFDI 106 India Loses China’s Contracted Projects to Pakistan 107 The BRI and Changing Face of China-South Asia Economic Interaction 108 Strategic Aspects of the BRI Engagement with South Asia 109 BRI Ends China’s Formal Neutrality Between India and Pakistan 110 China Consolidates and Deepens Influence in Himalayas 111 Chinese Presence in Its “Maritime Backyard” a New Concern for India 112 Bangladesh and Afghanistan: Away from BRI Tensions 113 India’s Concerns About the BRI 114 Conclusion 115 References 115 Chapter 8: The BRI and the East Sea Disputes in China’s Ties with Southeast Asia 120 China’s Implementation of the BRI in Southeast Asia 121 Cooperation with ASEAN 121 Increasing Control in the East Sea of Vietnam 123 Opportunities Offered by BRI to ASEAN Countries 125 Challenges to ASEAN Countries 127 Security Challenge in the East Sea 127 Economic Challenges 128 Socio-Cultural Challenges 130 Conclusion 131 References 131 Chapter 9: Strategic Competition Between China and the United States in the Indo-Pacific 135 China’s Strategic Interests in the Indo-Pacific Region 136 American Strategic Interests in the Indo-Pacific Region 137 Rise of Strategic Competition between the United States and China 138 Impact of US-China Relations on Indo-Pacific Regional Security 141 Conclusion 144 References 144 Chapter 10: Competition and Caution in Chinese Foreign Policy Towards Northeast Asia 147 Cooperation and Competition with Japan 148 Continue to Maintain Influence in the Korean Peninsula 151 Conclusion 156 References 156 Part IV: CPC Propaganda Abroad 159 Chapter 11: The CPC’s International Department and China’s Party-Based Diplomacy 160 What Is Party-Based Diplomacy? Views from Chinese Officials and Researchers 163 Party-Based Diplomacy: Expanding Friendships and Elite Networks 164 The 19th Party Congress, Party-Based Diplomacy, and Promotion of China’s Image 167 Conclusion 169 References 170 Chapter 12: China’s “Great Overseas Propaganda” Under the Belt and Road Initiative 172 How Propaganda Is Defined and Practiced Under the Party 173 From Waixuan to Dawaixuan 174 BRI and New Players in GOP 176 Media 176 State-Owned Enterprises (SOEs) in GOP 178 Higher Educational Organizations and Their Increased Roles in the BRI 180 Xi Turns to “Covert Propaganda” 181 Conclusion 183 References 183 Part V: Economic Development and Foreign Policy 187 Chapter 13: China’s Quest for Global Leadership Through Scientific and Technological Innovation 188 China’s Scientific and Technological Achievements Before the 19th CPC National Congress 189 China’s Desire to Gain Global Leadership and Advantages 192 Xi Jinping’s Views on S&T Innovation Before and Since the 19th CPC Congress 193 Conclusion 197 References 197 Chapter 14: Rural Vitalisation and Foreign Policy 200 What does Rural Vitalisation Mean? 201 Rural Vitalisation since the 19th Party Congress 202 China’s Outbound Direct Investment in Agriculture 206 Conclusion 211 References 212 Chapter 15: China’s State-Owned Enterprises as Agents of Party and State Power 215 SOE Reforms 216 Difficulties and Challenges 218 Party Control vis-à-vis Corporate Governance of SOEs 220 Capital Management and Control over SOEs 221 SOEs and Chinese Foreign Policy 223 Conclusion 225 References 226 Index 230 Front Matter ....Pages i-xv Front Matter ....Pages 1-1 ‘National Rejuvenation’ as Panacea for China’s Domestic and External Challenges (Jabin T. Jacob, Hoang The Anh)....Pages 3-19 Front Matter ....Pages 21-21 Reform of Party and State Structures in China (Nguyen Xuan Cuong)....Pages 23-36 Changes in China’s Economic Development Model After the 19th CPC National Congress (Nguyen Quang Thuan, Tran Hong Viet)....Pages 37-48 Xi Jinping’s Political and Economic Initiatives and the ‘Success Trap’ (Manoranjan Mohanty)....Pages 49-62 Political Considerations in the Chinese Leadership’s Economic Assessments (Jabin T. Jacob)....Pages 63-75 China’s Military Reforms in the Wake of Recent CPC National Congresses (Bui Thi Thu Hien)....Pages 77-93 Front Matter ....Pages 95-95 Key Markers and Trends in Chinese Foreign Policy in South Asia (Prashant Kumar Singh)....Pages 97-113 The BRI and the East Sea Disputes in China’s Ties with Southeast Asia (Hoang The Anh)....Pages 115-129 Strategic Competition Between China and the United States in the Indo-Pacific (Cu Chi Loi)....Pages 131-142 Competition and Caution in Chinese Foreign Policy Towards Northeast Asia (Nguyen Quang Thuan, Hoang The Anh)....Pages 143-154 Front Matter ....Pages 155-155 The CPC’s International Department and China’s Party-Based Diplomacy (Ngeow Chow-Bing)....Pages 157-168 China’s “Great Overseas Propaganda” Under the Belt and Road Initiative (Roger C. Liu)....Pages 169-183 Front Matter ....Pages 185-185 China’s Quest for Global Leadership Through Scientific and Technological Innovation (Nguyen Binh Giang)....Pages 187-198 Rural Vitalisation and Foreign Policy (Prachi Aggarwal)....Pages 199-213 China’s State-Owned Enterprises as Agents of Party and State Power (Aravind Yelery)....Pages 215-229 Back Matter ....Pages 231-237 Communist Party of China General Secretary and Chinese President Xi Jinping has since taking power in 2012 launched a series of domestic reforms that have long-term consequences both internally and externally. These reforms aimed at the great 'national rejuvenation' of the Chinese people seek to convert China's domestic strengths into global standing and leverage. Underlining the intimate connection between Chinese domestic policies and its external policies and outreach, this volume assesses a range of key domestic forces driving Chinese growth today ranging from economic reforms to governance practices to analyze their impact and influence at home as well as on China's foreign and security policies in its near and extended neighbourhood. The volume also looks at specific themes like technology, agricultural development, reform of state-owned enterprises and the use of Party bodies to engage in foreign propaganda work among other things to offer examples of the merging of Chinese domestic political and foreign policy interests. In the process, the volume offers its readers a better idea of China's place in the world as the Chinese themselves see it and the implications over time for China, its neighbourhood and the wider world