1 It is undeniable that China is one of the most prosperous countries in our day.

It is known because of the size of its land being physically large and the second biggest in the world. It has one of the most-storied histories in the world as well as a very diverse and exciting culture. The ancient Chinese civilization is well known as one of the earliest ever and its dynasties are famous around the world. However, theres also a modern side of China it features some of the most technologically advanced devices on the globe as well as ultra modern skyscrapers, transportation systems, and cities. In fact, the worlds fastest growing major economy belongs to China.1 But before today's position went to China, it also went through many difficulties especially economic. 2 Prior to the initiation of economic reforms and trade liberalization 32 years ago, China maintained policies that kept the economy very poor, stagnant, centrally controlled, vastly inefficient, and relatively isolated from the global economy. 2 China before 1840 was completely closed, isolated from the rest of the world, except for the limited foreign trade in the city of Canton. China was closed, or more accurately, it highly controlled its contacts with the outside world. The trade relationships were organized into the so called "Canton Trade System", since only the port of Canton was opened for foreign trade.3 The most important reason China closed its doors to Western countries was its desire to protect itself. China tried to resist foreign political and economic penetrations by restricting foreign trade. Yet its attempts to seal itself off invited an even more devastating penetration, the Opium War. 3 The Second Anglo-Chinese Opium Wars were the direct result of China's isolationalist and exclusionary trade policy with the West. Confucian China's attempts to exclude pernicious foreign ideas resulted in highly restricted trade.4 The War, although entitled "The Opium War" was in fact not about opium at all. As President John Quinay Adams said, "The seizer of a few thousand chests of opium smuggled into China by the Chinese government was no more the cause of the Opium War than the throwing overboard of the tea in the Boston harbour was the cause of North American Revolution." 5 In the race to colonize the world, China represented the last prize in the Far East for European countries. The Opium War was the first step designed to open China along with its markets and resources for exploitation. The War itself physically opened China. However, it was the aftermath of the War that exposed China, economically, socially, politically and ideologically to the outside world. The unequal treaties signed after the Opium War were the primary mechanisms to open China. 4 Despite strict government regulations, foreign trade in China expanded during the late 18th century and early 19th century. As trade grew, the West found themselves to have a large and rising trade deficit with China. They were increasingly anxious to balance their trade. Yet the Chinese, having a self-sufficient economy, showed little interest in Western products. Finally, in 1820, the West found a product which China did not have, opium. In the 1830's, opium had became a vice in China. The British opened hostilities and started the Opium War. China, with its backward army, was overwhelmed and backed down. The first of the unequal treaties, the Treaty of Nanjing was signed. The Opium War, which lasted from 1840 to 1842, ended with China losing in shame. 5 The War, although entitled "The Opium War" was in fact not about opium at all. The Opium War was the first step designed to open China along with its markets and resources for exploitation. The War itself physically opened China. However, it was the aftermath of the War that exposed China, economically, socially, politically and ideologically to the outside world. The unequal treaties signed after the Opium War were the primary mechanisms to open China. 6 The Treaty of Nanjing and supplement treaties signed between the British and the Chinese were the first of the humiliating "unequal treaties". It radically increased the openings for trade in China and expanded the scope of British activities. The Treaty exempted British nationals from Chinese law, thus permitting the operation of extraterritorial law on Chinese soil. Furthermore, any Chinese who either dealt with the British, or lived with them or were employed by them were also exempted from Chinese law. The Treaty of Nanjing included the so called "most favored nation" clause. This in effect gave the British any privileges extorted from China by any other country. The "most favored nation" clause later was extended to all the foreign countries that dealt with China, giving all Western countries that dealt with China the same rights as the British. The Treaty of Nanjing and supplement treaties opened China to the world. China became a semi-feudal semi-colonial state. Its influences were far reaching and long lasting. However because the Treaty of Nanjing was designed to obtain free trade, its economic effects were the most severe. 7 The old self-sufficient economy mainly composed of petty agriculture and homestead industries was changing under pressure. Capitalism was developing in China's social-economical development. The "invasion" of foreign capitalistic powers enhanced this change. However, the coming of outside influences did not result in the independent development of capitalism in China, rather it made China into a semicolonial semi-feudal state. This was so because Chinese industries were prematurely exposed to the outside world. They were inadequately prepared and poorly equipped to compete in the international and even domestic markets. Western capitalism greatly changed the Chinese economy. On one hand, the opening of China undermined the basis of China's self-sufficient economy, the urban handicraft and rural homestead industries. On the other hand, it greatly enhanced the development of China's urban market economy. Such
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fundamental changes in the Chinese economy inevitably brought changes at the social and ideological levels. 8 After China's disastrous defeat in the Opium War, the Chinese realized that they were no longer the "Heavenly Middle Kingdom". Lost at the hands of the "barbarians", Chinese intellectuals recognized that in order to deal with the strangers from the West, they must understand the Westerners and the place they came from. Before the Opium War, the Chinese concept of European countries was very vague and in some cases, even preposterous. After the Opium War, China intellectually discovered the West. Western political ideas, social structures, and in some areas, technology were introduced to China. Western ideas of parliamentary democracy and capitalism were vaguely made known. International diplomacy became a concept. One of the writers, Wei Yuan, first proposed that in order to fight the West, China must learn from the West. 9 Under such circumstances, China for the first time established what the equivalent of a foreign ministry was. The foreign ministry was mainly occupied with the study of Western technology, modernization of the Chinese army and the open of modern factories. The first factories opened were for the military, and specialized in the production of modern weapons and ships. Because the products of these factories were not merchandise, making money was not a concern. Nevertheless, seeing that Western enterprises made a profit, the Chinese government began to establish commercial enterprises. Immediately after the Opium War, Western merchants had not yet fully penetrated the Chinese market. The private sector also was quite wealthy. With the collapse of the feudalistic economy and the stimulations by Western capitalism, it was willing to invest in modern enterprises. At the same time, Western companies absorbed some Chinese capital. It could be said that shortly after the Opium War, Chinese capitalism had a good opportunity to develop. 10 With the West pacified by a prudent foreign policy, way was all set to proceed with economic and military development. China transformed itself from a country obsessed with mass political movements to focus on economic construction. With the concept of socialist market economy Deng could see no difference in socialist and market economic systems. Foreign trade was promoted with both West and Japan. Direct foreign investment, both State and private, was attracted by establishing special economic zones that allowed total market liberalization and tax concessions with cheap Chinese labor. Industrial revolution got impetus through investment from banking and taxation. Both Industry and agriculture were given autonomy at commune level. Labor productivity was improved by allowing surplus to be sold in market. 11 With lessons learnt from various armed conflicts around the world, the People's Liberation Army got a complete overhauling with stress on quality rather than quantity and now whole of Chinese infantry is mechanized. PLA is the third largest military force on Earth with a military spending at 10% over the last 15 years. Weapons production is largely indigenous with latest weapon system being inducted Army, Navy, and Air force. China has the missile range capability to hit U.S.A and East Europe with a nuclear arsenal estimated to be around 400 warheads. China has a declared state policy of peaceful development and coexistence, being the first country to declare no first use of nuclear weapons. Cold war between socialist and democratic free world has ended with Soviet Union collapsing under the weight of economic difficulties and international commitments.6 12 When the People's Republic of China was formally established, with its national capital at Beijing, the Soviet Union recognized the People's Republic. After months of hard bargaining, China and the Soviet Union signed the Treaty of Friendship, Alliance, and Mutual Assistance, valid until 1980. The pact also was intended to counter Japan or any power's joining Japan for the purpose of aggression. For the first time in decades a Chinese government was met with peace, instead of massive military opposition, within its territory. 13 The new leadership was highly disciplined and, having a decade of wartime administrative experience to draw on, was able to embark on a program of national integration and reform. In the first year of Communist administration, moderate social and economic policies were implemented with skill and effectiveness. The leadership realized that the overwhelming and multitudinous task of economic reconstruction and achievement of political and social stability required the goodwill and cooperation of all classes of people. Results were impressive by any standard, and popular support was widespread. 14 International recognition of the Communist government had increased considerably. In 1951 the UN declared China to be an aggressor in Korea and sanctioned a global embargo on the shipment of arms and war materiel to China. This step foreclosed for the time being any possibility that the People's Republic might replace Nationalist China (on Taiwan) as a member of the UN and as a veto-holding member of the UN Security Council.As one of the "Big Four" allies in World War II (China, the Soviet Union, the United Kingdom, and the United States), the Republic of China was one of the founding members of the United Nations. Thus, despite opposition from other leaders, China became a permanent member of the Security Council from its creation in 1945. 7 15 As a member of the United Nations (UN) Security Council, the People's Republic of China belongs to the elite club of recognized great powers. It is involved in more than 1000 international governmental organizations that deal with issues ranging from drug trafficking to the environment; and it is an ardent
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supporter of the United Nations and international law, warning against the exercise of military power when peaceful methods of diplomacy ought to be given greater scope for realization. This was especially notable with regard to China's reaction to American military interventions in the post-Cold War era, indicating China's understanding of the need for great powers to critique one another in the interests of a balanced state system. Even before its economic rise and military modernization, China was a vocal critic of superpower conduct in world affairs. Indeed, China's role during the Cold War was one of balance in the strategic, whereby China pursued a policy of 'leaning to one side' from within a posture of strategic independence.8 16 It was China who acted as an imperial power in its hierarchical international tribute relations until the 19th century, and the United States that disdains imperial ambitions in its 'freedom and democracy' rhetoric. China's consolidation of its role as a great power in a sovereign state system was evident in its socialist state persona when it emphasized the equality of states principle, criticized the superpowers for putting their own strategic competition ahead of global welfare, safety and justice and, since the Cold War's end, its assiduous cultivation of diplomatic relations with a host of nations and regions. 17 In military terms it is also a superpower if one accepts that its nuclear arsenal is adequate to the task of global (deterrent) reach and that its conventional forces can defend China in the improbable event of attack. Unlike the US and other modern military establishments, China lacks the latest technology. However, it continues its program of modernization, which it is increasingly able to afford thanks to a strengthening economy. Thus while China is a great power, exercising a valued balancing and concerting role in the system, it has yet to be accepted as a superpower along US lines. In terms of global power, China demonstrates an ability to engage in global governance when state-managed and transnational business relations, but where issues of dissent and their wider ramifications are involved (particularly democracy and human rights issues), global civil society is not overly impressed with China. Social networks independent of the state, including human rights activists, as well as postmodernist views on diversity and tolerance, find the authoritarian government of China troubling and out of touch with the global ethos. 18 However, China continues to promote world multi-polarization, democracy in international relations and diversification of the modes of development. It steer the global economy toward the direction that is conducive to the common prosperity of all nations. Dedicated to multilateralism and a new security concept, it rejects hegemony, power politics and terrorism of all forms, thereby stepping up the establishment of a just, reasonable international order. China is set to deepen its mutually beneficial cooperation with other developing countries and safeguard their shared interests. Adhering to the principle of treating neighbors as friends and partners, it will strengthen friendly and cooperative ties with neighboring countries to deepen regional cooperation. It will further boost its relations with developed countries in the spirit of seeking broader common ground and resolving disputes in a proper manner. 19 It take an active part in multilateral international diplomatic activities, maintain and strengthen the authoritative and leading role of the United Nations (UN) and its Security Council and make constructive efforts in regional organizations. It is also poised to beef up across-the-board economic linkages and cultural exchanges with other countries, while readily protecting the lives and legitimate rights and interests of overseas Chinese citizens. China is an original member of the UN and is one of the five permanent members of the Security Council. It acknowledges the irreplaceable role of the UN in international affairs. China supports UN initiatives in solving sensitive and complex issues within the UN framework in various areas such as arms control, disarmament and non-proliferation of nuclear weapons. 20 China has been active in international affairs. China has been fulfilling its financial obligations to the UN completely, timely, and unconditionally. It is the ninth largest donor among all member countries and the largest donor among developing countries. It has up-scaled its participation in peacekeeping operations of the UN. Chinas peacekeeping task force ranks the 12th among all member countries, and the first among the five permanent members of the Security Council. In September 1988, China submitted an officially application to join the Special Committee on Peace Keeping Operations. 21 In April 1990, China sent five military observers to the UN Truce Supervision Organization, one of the oldest subsidiary organizations of the UN, which was the first time that Chinese military personnel participated in the peacekeeping operations of the UN. Since its establishment, the People's Republic has worked vigorously to win international support for its position that it is the sole legitimate government of all China, including Hong Kong, Macau, Tibet, and Taiwan. 22 China has maintained mutually beneficial relations in various fields and at different levels with major countries in the world. The healthy relations between China and these countries have continued their growth. As the Sino-U.S. relations continue to grow, China and the United States find more and more common stakes in international affairs. The two countries have coordinated positions and cooperated in such fields as the Korean nuclear issues, Iranian nuclear issues, antiterrorism and non-proliferation of nuclear weapons. 23 The two countries have also reached consensus on maintaining peace and stability across the Taiwan Straight. China is the largest developing country, while the United States is the largest developed countries in the world. Peace between the two countries will bless both parties whereas collision will wreak both.
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Hence, China and the United States must deepen communication and understanding, and enhance consensus and confidence. Friendly relations between the two countries will not only benefit the two people but also promote world peace. 24 Since forging comprehensive strategic partnership in 2003, China and European Union (EU) have been on good terms, which are reflected in deeper trust and more frequent exchange of high-level visits. ChinaEU relation has becoming more and more mature and pragmatic. With a closer partnership, responsibilities on both sides increase. Trade between China and the EU saw rapid expansion. The EU is by far the largest trading partner of China, and China is the second largest trading partner of the EU. The EUs investment in China continues to grow. Notable progress in all ranges of the bilateral ties was made. The comprehensive partnership between China and the EU is on a solid track. 25 Also, China and Russia make full tap on the cooperation mechanisms between the two governments, actively implementing the important consensus reached between the leaders of the two countries, continuously expanding the mutual collaboration in all fields and achieving notable achievements. The relations between China and Russia maintain good momentum. China and Russia have worked more closely together in international affairs. The two countries have worked together in pushing for a feasible solution to the nuclear issues in North Korea and Iran. The business ties between the two countries are increasingly tight. Their trade and economic cooperation shows sound and rapid development. Enjoying high-level political mutual trust and mutual benefit, strategic coordination and common political wills, China and Russia share the desire and determination of the two peoples to become good neighbors, close partners and friends. Beijing will unswervingly abide by the Treaty of Good Neighborliness and Friendly Cooperation between China and Russia, and together with Moscow, continue to promote the strategic cooperative partnership. 26 China and Japan are two neighboring countries divided only by a narrow strip of water. Since their normalization of diplomatic relations in 1972, the bilateral ties have made substantial headway. However, the two countries also face a series of issues of how to increase mutual trust and seek common strategic interests. Taking history as a mirror and facing forward to the future, China and Japan should bide by the principle and spirit of the China-Japan Joint Statement, the China-Japan Treaty of Peace and Friendship and the China-Japan Joint Declaration, expand the common interest of both and pay attention to and each others concerns, especially those with regard to historical issues and the Taiwan question. Leaders of China and Japan view and handle bilateral relations from strategic height and long-term perspective, grasp historical opportunities and further promote long-term and stable friendly and cooperative relations. 27 Relations between China and African countries have been long-lasting and bestowed with a solid foundation. Suffering from similar historical experiences, the two sides have built up profound friendship through mutual support toward each other in their fights for national liberation. The founding of the New China in 1949 and the independence of African countries have opened a new chapter of China-Africa relations. Through the past half-century, bilateral political relations have been close, high-level visits frequent, trade and economic ties fortified, cooperation in other fields substantial, and negotiation and coordination in international affairs strengthened. China has provided assistance in its power to African countries, which has extended strong supports to China. Sincerity, friendship, equality, mutual benefit, reciprocity and common prosperity are the principle of exchanges and cooperation between China and Africa, as well as the impetus that drive the development of the bilateral ties. 28 China affirms the balance and sustainable development of the global economy and society. The international community should work together to gradually address the prominent problems including widening gap between the rich and the poor, as well as worsening ecological environment. 29 As supplement to traditional diplomacy, military exchanges between countries are barometers of diplomatic relations. Chinas military diplomacy was fruitful. In 2006, China exchanged military personnel with over 300 countries, played host to over 40 defense ministers or chiefs of staff from other countries, participated in more than 40 bilateral or multilateral consultation or talks and provided humanitarian aid to Lebanon, Indonesia and the Philippines. Exchanges of high-level military visits facilitate trust and understanding, and promote consensus and cooperation. As a result, military relations between China and Russia have deepened, and that between China and the United States are growing steadily. All round and multilevel military exchanges and cooperation are underway between China and other foreign countries. 30 China has always valued the development of friendly relations with neighboring countries and the maintenance of stability in its neighborhood. In 2006, military delegations from China visited more than 20 countries in East Asia, Southeast Asia, South Asia and Central Asia. In the meanwhile, 30 short high-level military delegations from neighboring countries visited China. In addition, China exchanged military personnel with countries in West Asia, Africa, Southern Pacific and Latin America. The forms of military contacts were also diversified. 31 However, we also need to consider not only the international relationship of China to the world but also its contribution in modern civilization. In history, China is apparently one of the main contributors of modern civilization and their ideas still lives. Chinese people back in ancient times were intelligent inventors and scientist. Most of their works and experiments have been an inspiration of modern studies and technologies. As a matter of fact, we have been benefiting these old time ideas that they had created before.

32 What China presents today is a very dynamic, fluid, complex, and in certain sense, chaotic picture of embarking on the course of development. China was a developed country in the past. Chinese were great inventors, and have always had an aptitude for expanding production. Such basic orientation and talent of the Chinese people are the major factor for Chinas fast economic growth now that the government spares no efforts to encourage grassroots initiatives. However, Chinas past development and prosperity is one thing while the development and affluence in the modern civilization is another. England and other European countries had taken three centuries to build up the edifice of modern prosperity. America has taken less time, but also about two centuries. It would be impossible for China to flog-leap into the brave new world. In many ways, she has to advance steadily like a tortoise, if not a snail. There are many problems and obstacles on her future road. 9 33 The greatest difficulty in China is the size of population. The Chinese government is always proud of the fact that with only 7 per cent of the earths cultivated land, China is feeding 22 per cent of humankind. But, behind this proud proposition is the great strain as well. In the first place, there is tremendous population pressure on land which has to produce enough to sustain all these people. Second, with the application of modern technology Chinas limited agricultural land does not need more than a fraction of this huge population to attend to it. Today, the majority of Chinese population those who live in the countryside have to fend for themselves. They will starve if they while away their time. But, when they want to take up production sincerely there is not enough work for most of them. 34 Two situations have risen. In the better developed areas, people have invested in village and township industries and succeeded in absorbing the surplus labor from the plantation industry. There are even some areas where all the rural population have been absorbed into the secondary and tertiary industries, leaving the primary industry, i.e. plantation, to imported laborers. But, these are only isolated examples. Overwhelmingly large parts of Chinas countryside have developed a surplus labor force without full employment. In some areas, this surplus labor has started to spill over to the affluent areas or the big cities to find odd jobs. In the last six, seven years, such movements have assumed alarming dimension in what is called "mingongchao" (waves of job-seekers). 35 There are several tens of millions of such job-seekers flowing from the poor villages into the big cities and affluent coastal areas today which is a serious destabilizing factor in Chinas socio-economic life right now, and, in course of time, would become a political destabilizing force if the trend is not timely checked. There are some specific issues facing China today which are a universal phenomenon. But because we know what are met by China through decades, these are no longer big barriers for them. 36 China has made contributions to the sustained development of human society. Based on previous experience and the fruits of modern civilization of mankind, it has adopted the scientific outlook on development to transform its concepts, create new modes for growth and enhance the quality of development. Over the years, China has persisted in exploring a new road to industrialization, featuring high scientific and technological content, good economic returns, low resources consumption, little environmental pollution and a full display of advantages in human resources, and striven to steer the entire society along a road of sustained development of civilization, with advanced production, affluent life and favorable ecological conditions. 37 China's success in population control has retarded the expansion of the population of the world as a whole. China emphasizes energy saving, and has adopted various measures in this regard. During the period 1980-2000, its GDP quadrupled, but the annual consumption of energy only doubled. Due to China's intensified efforts at environmental protection, its dust discharge has remained the same as in 1980 despite a big increase in installed thermal-power capacity. Its energy consumption of per 10,000-yuan GDP in 2004 dropped by 45 percent compared to 1990. China has made medium- and long-term plans for energy conservation, aiming to keep an annual energy-saving rate of 3 percent by 2020, to save 1.4 billion tons of standard coal.10 38 China has made contributions to safeguarding world peace and promoting international cooperation. On the basis of the Five Principles of Peaceful Coexistence, China has developed friendly, cooperative relations with other countries and promoted peaceful coexistence and equal treatment among countries. China has always adhered to the principle of being a friendly neighbor; and has constantly developed good and cooperative relationships with surrounding countries and other Asian countries and expanded common interests with them. It has established various cooperative relationships with major powers, and unremittingly augmented mutual dialogues, exchanges and cooperation. China has also expedited cooperation with a vast number of developing countries, to seek common development by drawing on one another's advantages within the South-South cooperation framework. Active in the settlement of serious international and regional problems, China shoulders broad international obligations, and plays a responsible and constructive role. 39 By all accounts and by any measure, China has demonstrated a steadily increasing activism and assertiveness in international organizations in recent years. This reflects Chinas growing economic might, as the country has continued its historically unprecedented charge up the economic development ladder. This growing assertiveness can be measured on several levels: in its ability to shape policies and positions within organizations, in its ability to use these organizations as platforms to project both hard and soft power, and in its ability to promote national interests. It is also noteworthy to point out that China has grown remarkably direct, and in some instances, almost confrontational in articulating its positions.
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40 If China ever felt the need to blunt its criticisms or soften its words, those days are clearly gone. For example, as will be further explored in the relevant sections below, China has been extremely pointed -even strident -- in using IMF forums to blast what it views as the weaknesses and errors of U.S. economic and financial policy makers, while at the same time highlighting the positive global impact of Chinese policies.11 41 Chinas ability to influence institutions has grown steadily over the last 5-10 years, and has spiked even higher in the aftermath of the global financial crisis. This growing influence is visible across a spectrum of issues, ranging for the institutional culture within organizations to substantive issues of policy. One way to define influence would be to characterize it as the ability to have your interests automatically factored into the decision-making of others, irrespective of whether you directly intervene yourself. Influence means that your interests and sensitivities have in effect become programmed onto the hard drive of others. And if we take this as a working definition of influence, then we can say emphatically that Chinese influence in regional and international institutions has grown dramatically in recent years. 42 Whether it is an arcane procedural issue being discussed in a regional organization, or a critical geostrategic issue being debated, there is an increasing sensitivity within institutions to the question: What will China think? China casts a large shadow within the organizations it participates in, and is able to wield influence directly and indirectly, in a variety of subtle and not so subtle ways. For instance, as will be more fully described in the case study which follows, China uses the esoteric issue of organizational nomenclature to expand its influence and to establish a heightened sensitivity to Chinese concerns.5 Although not always fully comprehended or appreciated from a Western perspective, these seemingly small power plays take on a much greater importance in the Asian context 43 In recent years, China has shown an increasing tendency to project itself into a much wider range of issues within organizations, no longer restricting its attention to issues of direct impact on China. China has demonstrated a greater proclivity to become involved in administrative, procedural, or other organizational issues within the institutions they participate in. Now, and for the foreseeable future, China will play a much a greater role on a broader range of institutional and organization issues, and will seek to influence the operations and underlying architecture of these bodies. For example, within APEC, China has become much more focused on reviewing and commenting on specific staff positions, and within the Asian Development Bank, China has begun delving much more deeply into proposed projects not related to China (see relevant sections below). As China broadens its engagement into issues such as these, it will have a greater ability to impact the way these institutions look and feel and operate. 44 By any objective measure or criteria, China has evolved into a highly effective player in the organizations reviewed. Both in terms of its ability to advance its own agenda, as well as its ability to deflect objectionable proposals from other quarters, China is a shrewd, savvy, and successful operator. Examples of Chinas diplomatic effectiveness abound, and will be further described below, but some noteworthy examples include Chinas ability to shift the G-20 agenda away from issues it prefers not to discuss, and the negotiating skill it brought to bear in ensuring an outcome to the Copenhagen Climate Summit almost entirely in line with its objectives.6 45 A large part of this effectiveness flows from the high quality individuals and officials that China sends to participate in these institutions. Given the nature of how business gets done in international organizations, the effectiveness of a member country often correlates closely with the quality of the individuals it sends as representatives or delegates. China has, in recent years, chosen to send its best and brightest -- extremely smart, capable, articulate, and frequently Western-educated individuals to represent its interests. China has clearly made a strategic decision to bring its A-team to the work of international organizations, and this strategy is paying off.12 46 Renowned China and India expert Jagdish Sheth talked about the prominent role the two countries play in international affairs and explained how they will soon become global powers during a presentation at the University of Central Florida on Thursday, Sept. 2. Sheth, who authored Chindia Rising: How China and India Will Benefit Your Business, spoke to an audience of about 150 people at UCF. He also gave presentations to hundreds of additional attendees at community events in Orlando and Daytona Beach. According to Sheth, China and India are going to have enormous international impacts on the global economy and resources, as well as the politics of the world. 47 He began his presentation by explaining the shift in global power toward China and India over time. The 19th century was an era for the Europeans, and the 20th century honored the legacy of the Americans. The 21st century is reserved for the revolution of the East. As previously affluent countries such as Britain, France and the United States have aged, theyve become unable to compete in global markets as they once had, he said. 48 He noted that economic standing in the world is currently measured in terms of buying power. While the United States is currently ranked first and China second, it will not be long before China and India outrank all others. In addition, the contest for resources and leadership has helped fuel Indias and Chinas
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emergence as economic powers on a global scale. In terms of leadership, Sheth added that Chinas and Indias economic rise will cause a change in the functioning of democracy and capitalism as we know it. 49 Their advanced forms of economy will soon direct the political systems of the globe, he said. He argued that it is inevitable that Chinas and Indias global importance will one day ascend to a level that eliminates the American dollar as the only commonly used currency. This will lead to the rise of China and India as the next economic superpowers in the first half of the century; the second half will be all Africa, Sheth concluded. The rise of Chindia will have worldwide impact on global resources, global markets and global politics.13 50 There is no question, therefore, that Chinas emergence as a great economic power will rank as one of the major issues confronting world leaders in the next few decades and that its progress demands careful analysis. To start, it is worth examining Chinas winning strategies economic liberalization, a focus on high technology, and its resolve to become a regional leaderas well as its challengesthe widening gap between its urban and rural populations, growing unemployment, and the increased challenges posed by its aging population. Next, it is important to consider the eects that its stunning success has had both at home and abroad. Chinas progress has unnerved many of its neighbors and trading partners: Asian countries worry about losing their competitive edge, especially in high-technology markets. 14 51 The United States, concern has been mounting over the countrys considerableand growingtrade decit with China. Beijing has tried to assuage its neighbors concerns by spearheading a project to create a regional free trade zone and tightening economic cooperation in Asia through local mechanisms. But its goodwill gestures have not put everyone at ease, and the United States, Japan, and South Korea have asked it to revalue its currency. Although China is unlikely to oblige anytime soon, and the currency question is likely to garner still more attention, it should not distract from the essential pointthat China, the United States, and the rest of the world still have much more business to do with one another. I n addition to its remarkable growth, especially in fdi, Chinas progress is distinctive for its commitment to developing high technology industries. Although this technology will inevitably weaken the governments control over communications networks and the distribution of information throughout the country, China has been quick to embrace the new information economy. 52 Thanks to foreign investment, China already leads the world in the production of certain types of electronics. In fact, this year, Chinataken together with Hong Kongwill likely be the leading producer for 8 out of 12 key consumer electronics products. It is expected to produce more than half of the worlds dvd players and digital cameras; more than a third of dvd-rom drives and personal desktop and notebook computers; and about a fourth of its mobile phones, color televisions, personal digital assistants, and car stereos. Chinas success is transforming the marketplace for Asias electronics industry. China now accounts for 30 percent of the regions electronics exports, compared to only 14.3 percent in 1997. 53 Chinas gains have been most costly for Singapore, which saw its market share slump over the same period from 19.3 percent to 9.8 percent. Other countries, such as Malaysia, Taiwan, and Thailand, are also under pressure. Only South Korea has managed to hold its own against Chinese competition. China plans to match Indias success as an exporter of software and Taiwans as an exporter of hardware. Market share for 2002 (17.1 percent) was higher than for 1997 (16.5 percent) but lower than its peak of 18.7 percent in 2000. 54 Chinas technology exports are likely to continue to grow rapidly, because the countrys production is getting a boost from Taiwanese companies that are moving their operations to the mainland. The Government of Taiwan authorized investments in China worth $11 billion in 1997, $19 billion in 2001, and $32 billion in 2002. At present, 56 percent of Taiwans large electronics companies, 63 percent of its medium-sized companies, and 73 percent of its small companies have manufacturing operations on the mainland. Taiwanese rms are also important suppliers of components to leading computer companies in China, which they increasingly plan to use as a base for exporting goods to the rest of the world. Chinas largest exporter in 2002 was Honhai Electronics, a Taiwanese manufacturer of computer parts, which exported $4.38 billion worth of goods. Chinas recent growth has been dramatic for both exports and imports. 55 This is a sign; experts say that China has become an essential link in the global production chain for many labor-intensive products. Chinas central position also helps explain why in 1999 the country absorbed 85 percent of the regions total fdi, up from 24 percent in the early 1980s. Fifteen years ago, intraAsia trade ows were simple. Capital goods and components were shipped from Japan to Asias newly industrializing countries for processing and then exported to industrial countries. Chinas opening to trade has added a link to this chain. Capital goods are now shipped to Taiwan and South Korea; capital-intensive components are then sent to China and elsewhere in Asia for labor-intensive processing and assembly, before being exported to developed markets. 56 Although economic policy is the foundation for the relationship between our two countries, China has also become an increasingly more assertive player in international discussions on peace, security, and sustainable development. The increased presence and prominence of China in the international community is not a threat but a huge opportunity for cooperation on international issues such as climate change and

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energy security. If we open up new avenues for exchange and cooperation, both of our countries will reap the rewards of increased growth and prosperity. 15 57 The rise of China is certain to have a great impact on the direction East Asian regionalism takes. In that rapidly evolving process, China will play a major role in integrating with the region. Chinas rise is an opportunity for East Asian community building, because China has been a responsible participant in the community-building process. On the other hand, Chinas growing power and influence in East Asia could also arouse fear and anxiety, especially in Chinas neighborhood, which could hamper the process of community building in East Asia with the sustained growth of Chinas power, especially its rapid economic growth, China has demonstrated a willingness and confidence to play a much greater and more active role in regional multilateral cooperation, including community building in East Asia. As early as the early 1990s, China joined a series of regional multilateral organizations, forums, or conferences. China became a member state of the AsiaPacific Economic Cooperation (APEC) forum in 1991 and has been holding a positive, responsible, and cooperative attitude toward APEC and its activities. 16 58 Also in 1991, China began a dialogue with ASEAN as a consultative partner, and became a full dialogue partner in 1996. Additionally, China responded positively by sending its foreign minister to participate at the founding dinner of the ASEAN Regional Forum (ARF) in July 1993 and then joined the ARF. On the second track, China joined the Council for Security and Cooperation in the Asia Pacific (CSCAP), and the Northeast Asia Cooperation Dialogue (NEACD) in 1991. However, generally speaking, in the early 1990s, Chinas participation in those regional multilateral groups was passive and tentative; China was not so active in regional institution building, nor did it take any initiative in them. In fact, China worried that by joining the multilateral institutions, it would become a target of criticism over some issues, such as human rights. 59 The Chinese also feared that if influential countries like the United States or Japan were members, the organization would be dominated by them.17Even so, China has developed a more active attitude toward participation in regional multilateral institutions since the late 1990s, especially since the Asian financial crisis. As Chinese President Jiang Zemin declared at the Fifteenth Congress of the Chinese Communist Party in September 1997, China should take an active part in multilateral diplomacy. 18 And Chinese Foreign Minister Qian Qichen argued in February 1998: China has taken an active part in international and regional multilateral diplomacy. 19 60 In recent years, China has been playing a much more active role in ASEAN+3 (China, South Korea, Japan), APEC, and other regional multilateral institutions in East Asia, even taking a lead in the Six-Party Talks on the North Korean nuclear issue. Further, Chinese decision makers and intellectuals have demonstrated a great interest in community building in East Asia. One of the most important reasons for Chinas active attitude toward East Asian community building is that, with the rapid growth in power, China has become increasingly confident in dealing with international affairs, more conscious of its global and regional responsibilities, and progressively more outspoken on community building and Chinas role in its formation. 61 Especially after joining the World Trade Organization (WTO) in 2001, China has become much more interested in formulating free trade arrangements with others. Chinese officials and scholars have also become much more adept at joining multilateral organizations and taking part in international discussions. At the same time, China has been learning to be a responsible member of international society, especially in East Asian regional affairs. China is a newcomer to the West-dominated international society. This society originated in Europe and expanded to an international level through the process of European expansion and decolonization, and as sovereign states became the dominant form of political organization.20 62 Through the open-door process, China has recognized its interest in a stable international society, both global and regional. As a result, China has clearly indicated a willingness to pursue objectives within the framework of common rules and institutions. Beijing has been attaching importance to international institutions, such as the United Nations and other global and regional institutions. Chinese leaders time and again argue that China is a responsible member of international society. Chinese international relations scholars show great interest in the English School and constructivism, which emphasize the importance of shared norms, values, and institutions in international relations. In 2000, Alexander Wendts newlypublished book (Social Theory of International Politics) was translated into Chinese, 21as were classics of the English School such as Hedley Bulls Anarchical Society.22 63 Beginning in 2000, China took the initiative to form a free trade area with ASEAN at the ASEAN+3 forum. In November 2000, Premier Zhu Rongji expressed the Chinese idea of a free trade area at the fourth ASEAN+3 meeting in Singapore, which led to the formation of an ASEAN-China expert group and the issuing of a report, Forging Closer ASEAN-China Economic Relations in the Twenty-First Century. That
15 16 17 18 19 20

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report recommended the establishment of an ASEAN-China FTA within ten years. China and ASEAN signed the Sino-ASEAN Framework Protocol on Overall Economic Cooperation in November 2002. It commits ASEAN and China to start negotiations on an FTA that will cover trade in goods and services, and investment liberalization and facilitation, among other areas. 67 China is rising, and Chinas economic development is proceeding at an astounding speed. The rise of China has been a longheld dream of the Chinese. As one American scholar commented, From the time of the Opium War, generations of Chinese have dreamed of making their country rich and powerful. Finally, thanks to Deng Xiaopings leadership and his policy of reform and opening, it has begun to happen.23 The prospect of a new and rapidly rising China presents both opportunities and challenges for regional community building in East Asia. China has demonstrated a keen interest in and active attitude toward regional community building since the late 1990s, especially since the fourth generation of leaders under Hu Jintao took over in November 2002. The rise of China is an historical and continuing process that started in the late 1970s when the reform and open-door policy was adopted. Some Chinese scholars are concerned about the prospect of the so-called Latin Americanization of China24 and the Taiwan issue, which has forced China to spend its energy on cleaning house. 25 68 However, the rise of China is an undeniable fact, and it has had a great impact upon Chinas approach toward East Asian regionalism. On one hand, China has been using regionalism to pursue a favorable international environment in the surrounding areas and mitigate the lingering mistrust of its East Asian neighbors. On the other hand, China wishes to play a responsible and constructive role appropriate to its increasing power in the process of East Asian community building.

PRINCIPAL REFERENCES:
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http://www.chinareviews.net/. Wayne M. Morrison Chinas Economic Conditions, June 24, 2011. 3 The Opium War and The Opening of China, <http://historyliterature.homestead.com/files/extended.html> 4 Philip V. Allingham, England and China: The Opium Wars, 1839-60, Lakehead University, Thunder Bay, Ontario. <http://www.victorianweb.org/history/empire/opiumwars/opiumwars1.html> 5 Tan Chung. China and the Brave New World. Bombay: Allied Publishers Private Limited, 1978. p.1 6 Emergence of China as a Great Power, <http://mmtararatgnailc.hubpages.com/hub/Emergence-ofChina-as-a-Great-Power> 7 Foreign Relations of Republic of China, <http://en.wikipedia.org/wiki/Foreign_relations_of_the_Republic_of_China> 8 Dr. Rosita Dellios, The Rise of China as a Global Power, Volume 6 No 2, Copyright Rosita Dellios 2004-2005 9 Chinas Greatest Contribution to Modern Civilization, October 28, 2011, <http://socyberty.com/socialsciences/chinas-greatest-contribution-to-modern-civilization/> 10 Promoting World Peace and Development with Chinas Own Growth, <http://www.china.org.cn/english/features/book/152766.htm> 11 Statement by Dr. ZHOU Xiaochuan Governor of the Peoples Bank of China at the Twenty-First Meeting of the International Monetary and Financial Committee Washington D.C., April 24, 2010 http://www.cbrc.gov.cn/english/home/jsp/docView.jsp?docID=201010127105895E82201 12 Garnaut, John. Dont Push US, China Warns Rich Countries. Sydney Morning Herald, January 11, 201 13 The Emergence of China and India as Global. <http://today.ucf.edu/the-emergence-of-china-and-indiaas-global-powers/> September 8, 2010. 14 David Hale and Lyric Hughes David Hale, China Takes Off <www.chinaonline.com> 15 Clarie Lo, The Role of International Relations of the Global Economy in Economic Recovery National Lieutenant Governors Association. Biloxi Mississippi. July 28, 2010. 16 Lu Jianren, Yatai Jinghezuzhi yu Zhongguo (APEC and China) (Beijing: Economic Administration Press, 1997), pp. 157-67. 17 Ezra F. Vogel, The Rise of China and the Changing Face of East Asia, Asia-Pacific Review, vol. 11, No. 1 (2004) pp. 46-57. 18 Jiang Zemins speech at the Fifteenth Party Congress, cited from Beijingwanbao (Beijing Evening News), September 22, 1997. 19 Qian on Chinese Diplomatic Achievements in 1997, Beijing Review, February 2-15, 1998, p. 7. 20 Chia, The Rise of China and Emergent East Asian Regionalism, p. 64. 21 Alexander Wendt, Guoji zhengzhi de shehui lilun (Social Theory of International Politics), trans. Qin Yaqing (Beijing: Century Publishing Group of Shanghai, 2000). 22 Hedley Bull, Wuzhengfu shehui (Anarchical Society), trans. Zhang Xiaoming (Beijing: World Affairs Press, 2003). 23 Vogel, The Rise of China and the Changing Face of East Asia, pp. 46-57. 24 Daojjiong Zha, Comment: Can China Rise? Review of International Studies, No. 31 (2005), pp. 775-85. 25 Zhang Yunling, ed., Emerging East Asian Regionalism, p. 8
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