The call on China by the international community to assume a
"major power responsibility" is getting louder by the day as the
country's economic strength grows, and its influence on the world
economy increases.
"Major power responsibility" involves many things. As far as
economic responsibility is concerned, it includes protecting the
existing global economic order and rules, joining efforts to solve
the worsening problem of global imbalance and environmental
destruction, opening the financial market wider, advancing market
reform, improving the social security system, effectively adjusting
the means of economic growth, and increasing international aid.
There are both subjective and objective reasons behind the
international community's call on China to assume "major power
responsibility".
Objectively, the main reason is pervasiveness of the "China
factor" all over the world. The Chinese economy has maintained a
blistering pace in the past three decades of reform and opening
up.
Authoritative international economic analysis agencies predict
that China will replace Germany in 2008 as the world's third
largest economy. As its economic strength grows markedly, China's
influence on the world economy also increases. China's GDP
accounted for just 5 percent of the world's total last year, but
about one-third of the real growth worldwide came from China. The
"shockwave" caused by finished industrial products has been felt
even more strongly, so much so it has stirred up rumors "China is
exporting deflation" in some corners of the world.
The adjustment of the international political and economic
landscape also lends weight to the objective reason. Many
international economists believe the global economy is undergoing
its greatest transformation since the Industrial Revolution, with
the centre of economy shifting from Western Europe and North
America to emerging markets in Asia, Eastern Europe, the Middle
East and Latin America.
Yet another objective factor is found in the declining
capability of Western powers led by the United States to "manage"
global economic affairs. The US economy is sinking deeper in its
fiscal and current account deficits, which makes it increasingly
reliant on the injection of international capital, while its
domestic financial and monetary policies are more and more at the
mercy of international factors.
The International Monetary Fund (IMF) is losing its influence
fast as a result of its obsession with the "Washington Consensus"
and the increase of foreign reserves held by developing nations
(now accounting for three-fourths of the world's total); the World
Trade Organization (WTO), meanwhile, is in an embarrassing limbo
because of the suspension of the Doha Round of market access talks
and the popularity of regional as well as bilateral free trade; and
the "Group of Seven" (G7) finds itself under much criticism for
lack of being representative, that it is increasingly difficult for
it to globally adjust.
From a subjective point of view, some local governments and
government departments are, to a certain extent, responsible for
the spreading of the "major power responsibility theory", as some
of them, motivated by their own interests, are now pursuing
international "image-building projects". The resulting impression
is a developing country trying to assume a formidable presence
without the necessary muscles.
Also, some State-owned enterprises have got carried away by
their domestic monopoly status and jumped on the poorly-coordinated
"going overseas" bandwagon simply out of the personal interests of
their executives. Their "high-key but low-efficiency" projects have
made a lot of discomforting noise around the world, and have
contributed little to the country.
It is no child's play for the US-led Western nations to figure
out a way to fit emerging powers, and especially China, into the
existing world economic system, and they hope to use "major power
responsibility" as a leverage to somehow lift their preferred
international moral standards back on top.
Shouldering certain international responsibilities as long as
our economic capabilities can afford it will not only help refute
the "China threat" theories and enhance the country's international
image, but also nurture peace, development and cooperation among
nations of the world as well as improving our international
environment for sustained economic development.
However, "major power responsibility" presents not just
opportunities but serious challenges as well.
The first risk that comes to mind is the deteriorating
conditions for foreign trade. Though China's economy has made
significant progress within the confines of the existing
international economic order, the current international economic
order and rules, which were mostly formulated by Western powers to
reflect their interests, do not work well for the realization of
China's long-term and strategic interests.
If China dances to the tune of the West, its trade environment
will only deteriorate further. It is an important part of the
existing international economic order to maintain the vertical
division of labor with developed countries on top. Western powers
use their control over technology and intellectual property rights
(IPR) to keep China tied to labor- and resource-intensive
manufacture at the lower end of the value chain.
Western powers have always kept their leadership in setting IPR
rules, such as extending the duration of patent protection
contained in the Agreement on Trade-Related IR Protection and
patenting various business models, technical methods and service
formats that are not patentable according to the traditional
concept. When implementing this kind of arbitrary rules, they also
abuse IPR by including technologies that are hardly innovative or
unique in their patent franchises to gain market monopoly.
It is a sinister trap threatening China's implementation of its
self-determination and innovation strategy. If the situation goes
on, China will be stuck in a situation where "Western powers take
away the kills (profits) while China is left with the numbers
(GDP)," a trap that lets China "grow up but not go anywhere".
The next risk comes from Western influences that will prevent
China from developing the way it wants or pin it down with a
growing load of "responsibilities". As eco-disasters caused by
global warming and rising prices of natural resources draw more
attention of the international community, China should join the
world community in addressing this grave issue. But, it must be
noted that developed nations' industrialization and obsession with
living comforts have consumed most of the world's resources and
piled up a mountain of environmental problems, while the developing
countries are only responsible for those added in recent history.
It is unjust and unreasonable for developed countries to accuse
developing nations such as China of triggering environmental
problems and assume that it should take more "major power
responsibilities" in this regard.
China and other developing nations have the same undeniable
right to development the developed countries enjoyed before they
became so. It would be hard for China to pursue normal economic
development if it is forced to assume "major power responsibility"
on resources and environment issues more than it rightfully should.
China has always been a responsible country and is playing an
increasingly important role in international affairs. It has been
taking more responsibilities in international affairs on its own
initiative in recent years.
China has made impressive achievements in economic aggregates,
foreign trade, attracting foreign investment and official foreign
reserves, but its per capita annual income is still ranked at a
lowly 110th place in the world. Today, there are 135 million people
living under the international poverty level of $1 a day,
accounting for 10.4 percent of the total population and 18 percent
of the 750 million throughout the world.
China still has a very long way to go before becoming an
economic and financial major power. With this reality in mind, we
need to step up coordination of foreign economic operations, stay
low-key and cautious. We need to remain a big country that always
keeps its promises and is always responsible and trustworthy.
We need to keep in mind that addressing injustice in the
existing international economic order is a long and arduous
undertaking and China must adapt to and make use of the existing
order and rules. Experience tell us China is also a beneficiary of
economic globalization and the country will respect the existing
international economic order and rules and join efforts in solving
the worsening global imbalance.
We should proactively shoulder international responsibilities as
our national strength allows and according to our own moral
standards as well as the existing norms of international affairs.
China has made impressive progress in IPR and environmental
protection and increasing its contribution to international aid
programs, but is still not quite up to the expectations of the
world community. Looking ahead, we should be more proactive in
joining efforts that benefit others as well as our own country.
We should also step up dialogue and cooperation with Western
powers and especially the US, learn about their views about China
and explain to them the concept and path of development we have
chosen. When making efforts to increase economic exchanges with
African and other developing countries, we should keep such
international rules as the Equator Principles and the
Action Plan for Extractive Industry Transparency.
China has always been a nation that means what it says and
therefore should seriously keep its promises to the international
community. However, we must be extra careful about complying with
ceaseless demands from Western powers for further opening and
reform that will affect our national economic sovereignty and
economic security.
The author is a researcher with China Institute of
Contemporary International Relations
(China Daily October 23, 2007)