Source: Beijing ReviewChen Xiangyang - Deputy director of the Institute of World Political Studies at the China Institutes of Contemporary International Relations
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International political rules consist of diplomatic practices,
public international law and norms of international relations, the core
principle of which are respecting state sovereignty and non-interference
in a nation’s internal affairs. “Humanitarian intervention” and the
“responsibility to protect,” though highly advocated by Western powers
in recent years, have yet to become universally accepted.
The United States has long considered itself the rule maker
for the world. American lawmakers often hold hearings on other
countries’ domestic affairs. The U.S. Government regularly releases
reports on foreign governments’ policies ranging from human rights and
religious freedom to monetary policies.
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Playing the blame game
As the sole superpower, the United States is the biggest beneficiary
of current international rules. Taking advantage of its dominant status
in the international system, Washington has recently adopted a new
tactic when dealing with Beijing: It has bashed the country with
“international rules,” calling China a challenger and a violator of
established rules.
When meeting with visiting Chinese Vice President Xi Jinping in
February, U.S. leaders once again urged China to follow the U.S. version
of international rules.
There are several reasons why the United States has intensified its
China-bashing rhetoric. Since the outbreak of the global financial
crisis, China has continued to develop swiftly while the United States
is mired in financial and fiscal crises. China’s catching up has caused a
sense of anxiety in the United States. Also, in a U.S. election year,
candidates from both parties tend to make China a scapegoat to court
voters. They have attributed U.S. troubles to China’s unfair competition
and violation of international rules. For instance, Republican
presidential hopeful Mitt Romney has repeatedly accused China of being a
“currency manipulator.”
Changes
International rules can be generally classified into four major
categories: economic rules, political rules, security rules and
environmental rules. International economic rules, together with
international economic institutions such as the World Trade Organization
(WTO) and the International Monetary Fund (IMF), regulate international
trade, finance, investment and intellectual property. International
political rules consist of diplomatic practices, public international
law and norms of international relations, the core principle of which
are respecting state sovereignty and non-interference in a nation’s
internal affairs. “Humanitarian intervention” and the “responsibility to
protect,” though highly advocated by Western powers in recent years,
have yet to become universally accepted.
International security rules include rules on antiterrorism,
non-proliferation of weapons of mass destruction, nuclear disarmament
and arms control as well as codes of conduct on the high seas, the
Internet and outer space. As for international environmental rules,
these mainly refer to international conventions on climate change.
But many of the rules were adopted decades ago and have long become
outdated. For instance, the informal rule that Western countries head
the IMF and the World Bank is obsolete at a time when emerging economies
gain prominence in world economic affairs.
China has always emphasized the important role that international
rules have played in world affairs. It has also benefited from the
current international system. As it integrates its own national
interests with the overall interests of other developing countries and
the international community at large, China sees both the advantages and
the disadvantages of the current Western-dominated international rules.
It is willing to follow reasonable rules. But it also seeks to reform
unfair rules and establish new rules together with other members of the
global community.
China is the second largest economy in the world by GDP, but it is
not a wealthy nation by GDP per capita. Given this twin status as a
developing nation and an emerging economy, China is committed to getting
fully involved in and helping reform the current international system.
It will dedicate itself to the establishment of a fairer and more
equitable international political and economic order.
Accusations
The United States has long considered itself the rule maker for the
world. American lawmakers often hold hearings on other countries’
domestic affairs. The U.S. Government regularly releases reports on
foreign governments’ policies ranging from human rights and religious
freedom to monetary policies. But more often than not, its accusations
are invalid.
The United States has charged China with breaking international trade
rules and dumping products in the United States at low prices. In
February, the U.S. Government established the Interagency Trade
Enforcement Center to cope with what U.S. officials see as unfair trade
practices, including those by China. But WTO Director General Pascal
Lamy said China has delivered an “A-plus performance” since entering the
WTO in 2001.
“In the past 10 years, overall, China has applied the rules, although
not 100 percent,” Lamy said in a speech at Sichuan University in
Chengdu in October 2011 during a tour of the southwestern city to attend
the Western China International Fair.
China’s entry into the WTO has resulted in “a win-win situation where
China has received a lot from international trade and other WTO members
have also got a lot from the opening of China,” he said.
While China honors its commitments to the WTO, the United States
often resorts to trade protectionism. It imposed a punitive anti-dumping
tariff on Chinese tires in 2009 and is deliberating countervailing
measures against solar cell imports from China. The U.S. government also
poses barriers for Chinese companies’ investments and acquisitions in
the United States. Last year, it blocked Chinese telecom firm Huawei’s
acquisition of U.S. server technology company 3Leaf Systems for national
security concerns.
The United States claims that China keeps the exchange rate of the
yuan at an artificially low level to run a trade surplus. However, as
China’s foreign trade becomes increasingly balanced, the accusation
drifts farther from reality. A report of The Wall Street Journal in
February said China’s current account surplus for 2011 shrank to around
2.7 percent of GDP according to government data released, the lowest
ratio since 2003. It is also below the 4-percent level suggested by the
U.S. Treasury Secretary as a sign of an undervalued currency. The yuan
has risen 31 percent against the U.S. dollar since June 2005, close to
the 40-percent appreciation often demanded by U.S. lawmakers. Since June
2010, when China said it would let the yuan move more freely, it has
gained 8 percent, and factoring in inflation the rise is even higher.
The United States has also fired harsh rhetoric at China as an
increasing number of Chinese companies establish a presence overseas.
U.S. Secretary of State Hillary Clinton warned during a trip to Africa
in June 2011 that Chinese investors may undermine good governance in
Africa. She has recently called for “jobs diplomacy” in a bid to support
U.S. businesses in the face of competition from China.
It is only natural for powerful Chinese companies to explore
international markets for more business opportunities. At the end of
2011, there were about 18,000 Chinese companies overseas with total
assets surpassing $1.5 trillion. Unlike what Clinton said, the companies
have brought practical benefits to local governments and residents,
including increased employment and tax revenues, improvements in living
conditions as well as a boost to economic growth.
