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Understanding China’s New Diplomacy

Silk Roads and Bullet Trains

Gerald Chan

What is China’s high-speed rail diplomacy? What is China’s infrastructure diplomacy? How do they relate to each other and to the country’s Belt and Road Initiative? Can China finance the numerous projects around the world under the initiative? This book assesses the important implications of China’s new diplomacy for the global political economy. It argues that a new developmental path called ‘geo-developmentalism’ is in the making: China plays a leading role in promoting growth and building connections across Eurasia and beyond.
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Index

Silk Roads and Bullet Trains

Gerald Chan

Abe, Shinzō 62, 80, 83, 88

Afghanistan 99, 188–9

Africa 6–7, 11, 16, 24–9, 31, 36, 44, 49, 51, 53, 58, 61, 68–9, 71, 80, 103, 120

African Barometer 51, 106

African century 120–21

African Union 27, 121

Alaska 31, 34, 78

Alstom 21, 44

Arctic Ocean 7

Argentina 23–4, 29

Asia 6, 11, 15, 21, 24, 30–32, 35–6, 44, 57–8, 61, 65, 68, 71, 79, 87, 89–90, 100, 102–3, 116, 120

responses to OBOR 76–91

Asia-Pacific 11, 33, 77, 79

Asia-Pacific Economic Cooperation (APEC) 28, 102

Asian Development Bank (ADB) 14, 33, 57, 62–5, 67–8, 71, 77, 80, 91, 100

Asian Infrastructure Investment Bank (AIIB) ix, 11, 14–15, 57, 60, 61–5, 66, 68–70, 76–7, 79, 83, 85–6, 89, 91, 100–101, 105, 107, 114, 116

share holdings of 62

Association of Southeast Asian Nations (ASEAN) 24–5, 36, 70, 116

ASEAN Infrastructure Fund 57

China-ASEAN Fund 69

Master Plan on Connectivity 10

Atlantic Ocean 26, 28–9

Australia 23, 49, 70

Austria 20

balance of power 81–3, 88–9

Baltics 34

Bangkok 24–5, 32, 82, 87

Bangladesh 32, 64, 81, 87–90

Bangladesh-China-India-Myanmar (BCIM) Economic Corridor 7, 9, 81, 88

Bank of China 68

Beijing 21, 29, 31, 35, 44–5, 61, 65–6, 83

Olympic Games 21, 44

Belarus 29–30

Belgium 20

Belt and Road Forum for International Cooperation 14–15, 102, 112, 117

Belt and Road Initiative 7, 14–15, 51, 68, 80, 83, 85, 90, 107

Berlin 83

Boao Forum 102, 107

Bombardier 21, 44

Bretton Woods system 51, 63, 107, 114

BRICS 14, 59–61, 70, 89, 106

bank 70

their GDPs 61

see also Contingency Reserve Arrangement 70, 107; New Development Bank

Brunei 90, 99

Cambodia 25, 57, 90

see also Kampuchea

Central Asia ix, 6–7, 12, 21, 25, 33, 35–6, 44, 78–80, 83–5, 99, 116

Chan Lai-Ha xii, 63, 64

Chengdu 29–30, 67

Chiang Mai Initiative Multilateralisation 70, 105, 107

Chile 29

China, People’s Republic of

as a civilisation state 9

demography 45, 52

development in western region 9–10

FDI 36, 72

Five Year Plan 15

as a global leader 120

military base 27

Ministry of Commerce 23

Ministry of Finance 66

research and development 47–50

science and technology 47–50

State Administration of Foreign Exchange 66

state capitalism 46–7

white paper 20

China-African Cooperation Summit 16

China Construction Bank 51

China Investment Corporation 66

China-Pakistan Economic Corridor 7, 66–7, 117

China Railway Group 31–2, 45, 47

China Railway Rolling Stock Corporation (CRRC) 24, 44, 50

Chinese Communist Party 9, 12, 49

Politburo 12–13

Chinese foreign aid 24–5, 66

Chinese foreign policy 6, 8, 76, 101–2, 112–18

‘go out’ policy 9, 21, 44, 50–51, 117–19

‘go west’ policy 36

ten conundrums of 114–18

Chongqing 29–30, 67

Cold War 26, 103

Colonialism 26

Conference on Interactions and Confidence-Building Measures in Asia 102, 107

connectivity 6–8, 98–9, 103, 113, 119

cooperation 53, 71, 94–5, 97–8, 100–101, 104, 108, 117

developmentalism 94–5

Djibouti 26–8, 118

Dreams 37, 89, 114

Duisburg xii, 29

Duterte, Rodrigo 36, 82

East Africa 26–7, 29

East Asia 10, 53, 76–8, 88, 116

Egypt 61

Eurasia 9, 11, 16, 24, 29, 31, 34, 69, 71, 84, 103, 120

Eurasian Economic Union 10, 33, 35

‘Eurasian Initiative’ 83

Europe 6–7, 10–11, 20–22, 25, 29, 32, 35–6, 44–5, 47, 61, 68, 79, 83–5, 87–9, 102–3, 109, 116, 119–20

European Bank for Reconstruction and Development 64, 100

European Union (EU) 16, 58–9, 96

Juncker Plan 10

Export Import Bank of China (EXIM) 26, 28, 32, 51, 66, 68, 112

Five Basic Principles of Peaceful Co-Existence 101

France 15–16, 20–21, 26–7, 30, 34–5, 43–4, 77, 82, 85

functionalism 94–5, 102–4

G2061, 70, 102

Gao Bai xii, 5, 46

geo-developmentalism 51–2, 94–109, 113

definition 97

testing 104, 106

theoretical challenges 106–8

see also geo-neo-functionalism; neo-functionalism with Chinese characteristics

geo-economics 36, 51, 68, 71, 99–100

see also geopolitics

geo-neo-functionalism 37, 71

see also geo-developmentalism; neo-functionalism with Chinese characteristics

geopolitics 13, 20, 36, 51, 68, 71, 88, 89, 99–100, 113, 120

see also geo-economics

Germany 15, 20–21, 26–7, 29–30, 33, 35, 43–4, 77, 82–3

global financial order 57, 69–70

global governance 91, 107–8, 115–18

global power change 113

global public goods 71, 96, 103, 112, 113–14

global responsibility 71, 96

Global South 34–5, 51, 53, 72, 95, 105, 107, 109, 113

globalisation ix, 37, 99, 113, 120

good governance 95, 105, 106

Greater Mekong Subregion 57

Gulf of Aden 26

Hamburg 29, 44

high-speed rail 5–6, 9, 20–56, 77, 80, 83–6, 97–8, 112

market of 22

origins and development 43–5

ten reasons for China’s rise in 45–52

Holland 20

hub-and-spokes structure 95

Hungary 32

imperialism 26–95

India 7, 12, 16, 20, 26, 29, 32–3, 45, 52, 59, 64, 77, 80, 85, 87–90, 99, 109, 119

Act East policy 10

Go West policy 10

Mausam Project 10

Indian Ocean 6–7, 116

Indochina 7, 24–5, 29, 44, 82

Indonesia 6, 23, 32, 50, 57, 61, 64, 69, 77, 81, 86, 90, 99, 119

Global Maritime Fulcrum 10, 86

Industrial and Commercial Bank of China 51, 68

industrial overcapacity 9, 100, 112, 116

industrial policy 52

Industrial Revolution ix, 120

infrastructure development 13–14, 21–2, 29, 33, 35, 46, 58, 62, 65, 71, 79, 86, 88, 90, 98, 101, 102, 104, 106, 112, 114, 118–19

financing of 57–72

infrastructure diplomacy 6, 8, 58–9, 62, 72, 79, 80

innovation 49, 52, 117

integration 96, 120, 108

intellectual properties 48, 50, 105

intergovernmental organisations 62, 107

international development 106–7

international finance 106–7

international land order 36

international maritime order 36

International Monetary Fund (IMF) 33, 63, 70–71, 95, 105, 106

international organisations 16, 102, 104, 106–7, 112

international political economy 20, 94, 112

international relations 35, 53, 77, 91, 94, 99, 101, 103–4, 106, 108–9, 112–13, 115–16

International Union of Railways 20, 44

Iran 22, 88, 89, 119

Italy 15, 20, 27, 34, 35, 43

Jakarta 23, 32, 50, 81, 86

Japan 11, 15, 16, 20, 21, 23, 25, 27, 33, 35, 43, 44, 45, 49, 52, 53, 61, 62–5, 70, 76–8, 86–90, 99

responses to OBOR 80–83

‘Silk Road Diplomacy’ 10

Jin Liqun 62, 65

Kampuchea 83

see also Cambodia

Kawasaki 21, 44

Kazakhstan 6, 29–30, 69, 80, 90, 99, 119

‘Bright Road’ initiative 10

Kenya 6, 26, 27, 28, 53

Kim, Jim Yong 62, 65

Korean War 84

Kuala Lumpur 25, 32, 82, 87

Kunming 25, 67, 81, 82, 87, 88

Kuwait 119

Kyrgyzstan 80, 99

Laos 7, 24, 25, 29, 32, 57, 69, 82, 90, 99

Latin America 22, 23, 24, 28–9, 31, 69, 76

see also South America

Li Keqiang 12, 16, 27, 28–9, 31, 33, 36, 117, 120

Libya 34

Lin Yifu 12

Liu Yazhou 10

Liu Zhijun 46, 48

Malaysia 7, 20, 23, 25, 32, 58, 67, 90, 99

Marshall Plan 102

Mediterranean 6–7, 27, 67, 116

mercantilism 94, 100

Middle East 6, 10, 12, 21, 44, 61, 67, 87, 88

Mohamad Mahathir 21, 25

Mongolia 7, 30, 62, 80, 96, 99

‘Prairie Road’ 10

Morocco 20

Moscow 30, 31, 32, 35

Mozambique 51

multilateral development banks 34, 63

multilateral financial institutions 57, 63, 68, 69–72, 102, 114

Myanmar 7, 34, 64, 67, 87, 88, 89, 90, 99, 117

National Development and Reform Commission (NDRC) 5, 7, 12–13

national interest 72, 107, 116, 120

neo-functionalism with Chinese characteristics 36–7, 71, 102–4, 108

see also geo-developmentalism; geo-neo-functionalism

neoliberalism 104–5, 109, 113

Nepal 34, 99

New Development Bank (NDB) 14, 57, 59–61, 66, 68, 69, 70,79, 101, 107, 116

see also BRICS bank

New Silk Road initiative 2, 5–17, 76, 86

new world order 91, 108–9, 114

New York 30, 44, 78, 97

New Zealand xii, 20, 49, 70

Nigeria 25–8, 53

non-interference 101, 108

North America 36, 47

North Atlantic Treaty Organisation (NATO) 89

North Korea 77, 83, 84, 85, 90, 99

Obama, Barak 96

Oceania 7

see also South Pacific

Oman 64

‘one belt, one road’ (OBOR) initiative 1, 5–17, 34–8, 61, 67–9, 71, 83, 84, 86, 89, 90, 91, 112

Asian responses to 76–91

brief introduction of 6–8

definition 1, 6

economic corridors 6–7

Japan’s responses to 80–83

origins of 1

South Korea’s responses to 83–5

Taiwan’s responses to 85–6

ten myths of 8–16

theorising of 94–109

see also Belt and Road Initiative

Organisation for Economic Co-operation and Development (OCED) 95, 107

Pacific Ocean 28–9

Pakistan 64, 66, 87, 88, 89, 90, 99, 118

Pan-Asia 21, 25, 87

Panama Canal 29

Park Geun-hye 83–4

peace and governance 106–8

peace-building 36, 71

People’s Bank of China 66

Philippines 16, 20, 79, 82, 89, 90, 99, 109

Poland 20, 29, 30

Amber Road 10

Portugal 20

public-private partnership 118

Pyongyang 83, 84

Realpolitik115

Regional Comprehensive Economic Partnership (RCEP) 105

reform and open-up policy 71, 101, 102, 115

Renmin University 5, 14, 17, 104

Renminbi internationalisation 9

risks 50–51, 105, 118–19

Russia 7, 12, 20, 22, 29, 30, 32, 33, 35, 44, 59, 67, 69, 77–9, 83–5, 90, 99, 116, 119–20

Saudi Arabia 20, 67

Second World War 69

Seoul 83, 84

Shanghai 45, 67, 85

Shanghai Cooperation Organisation (SCO) 34, 35, 102

SCO Development Bank 70, 79, 107

Siberia 31, 34, 78

Siemens 21, 44

Silk Road 25, 34, 35, 105

history of x, 10, 21

Silk Road Fund (SRF) 14, 57, 62, 66–7, 68, 69, 70, 79, 101, 107, 112

Singapore 7–8, 20, 25, 32, 48, 53, 69, 82, 87, 90, 119

Sino-Japanese relations 76–7, 80–83

SINOSURE (China Export & Credit Insurance Corporation) 118–19

South Africa 16, 24, 27, 51, 59

South America 36, 61

see also Latin America

South Asia 6, 12, 33, 35, 58, 80, 85, 87–9

South China Sea 6–7, 11, 16, 79, 87, 109, 116, 118

South Korea 11, 15, 20, 25, 35, 49, 53, 70, 76, 77, 78, 82, 90, 99

responses to OBOR 83–5

South Pacific 7

see also Oceania

South-South Cooperation 69–70, 89, 102, 106–7, 116

South Sudan 26, 27

Southeast Asia 6, 10, 22, 23, 33, 35, 36, 44, 57, 67, 86–8, 116

Spain 20, 30, 34, 35, 43, 77

spill-over effect 94, 97, 103–4

Sri Lanka 89

State Council 5, 7, 12–13, 43, 69, 107

State Ocean Administration 7

state-owned enterprises (SOEs) 16–17, 24, 47, 69, 100, 118

Su Changhe 96

Sudan 26, 28, 51, 53

Sweden 26, 35

Switzerland 20, 26, 33

Syria 118–19

Taiwan 11, 20, 53, 76, 77, 78, 90

responses to OBOR 85–6

Tajikistan 64, 80, 99

Tanzania 25, 28, 51

Thailand 7, 22, 23, 24, 25, 32, 24, 50, 77, 82, 87, 89, 90

Tianjin 21, 44, 45

Tokyo 43

Trans-Pacific Partnership (TPP) 105

Trump, Donald 11, 77, 105, 117, 120

Turkey 20, 24, 26, 31, 32, 35, 89, 90

Middle Corridor initiative 10

Turkmenistan 67, 80

United Kingdom (UK) 15, 20, 27, 31, 33, 58, 83, 85

United Nations (UN) 59, 69, 96, 97, 101, 102, 115, 117–18

Sustainable Development Goals 106, 116

UN Charter 101

United States (US) 9–11, 15–16, 20–22, 24, 27, 30, 33–4, 36, 44–7, 49, 50–52, 58–9, 61, 63–5, 69, 70, 76–7, 83–4, 87–8, 90–91, 96, 102, 104, 114, 116, 120

Uzbekistan 80

Venice ix

Vietnam 7, 16, 25, 50, 57, 77, 79, 82, 86–7, 89, 90, 99, 109, 119

Two Corridor One Economic Circle 10

Vladivostok 30, 83

Wang Huning 12–13

Wang Jisi 10, 12

Wang Yi 12

Wang Yiwei 5

West, the ix, 35, 48, 63, 68, 72, 77, 100, 102, 105, 107, 109, 113, 114, 116

Westphalia 109

‘multiphalia’ 109

working-peace system 103–5

World Bank 12, 14, 33, 49, 57–9, 62–5, 67–8, 71, 91, 95, 100, 105, 106

World Economic Forum 27, 107, 117

World Trade Organisation (WTO) 105

Xi Jinping 6, 9, 12, 16, 22, 33, 36, 61, 66, 69, 83, 86, 88, 96, 112, 114–15, 117, 120

Xi’an ix

Xiangshan Forum 102, 107

Xinjiang 29, 66

Yingluck Shinawatra 23

Zambia 25, 28

Zhan Tianyou ix

Zhang Gaoli 12

Zhang Yasui 10, 13

Zhang Yunling 10

Zhanlue (strategy) 13

Zhao Lei 13, 76

Zheng He 11

Zhou Hong 8

Zimbabwe 51