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2311. Central Asia's growing partnership with China

Author:
Sébastien Peyrouse
Publication Date:
10-2009
Content Type:
Working Paper
Institution:
Centre for European Policy Studies
Abstract:
Since the start of the 2000s, the People's Republic of China (PRC) has become an increasingly important player on the Central Asian scene, which until then had been essentially divided between Russia and the US. Today, Central Asia's future lies in its ability to avoid the destabilisations of the Afghan–Pakistan zone, and through Chinese influence, to partake of the Asia–Pacific's economic prosperity. In less than two decades, Beijing has managed to make a massive and multiform entry onto the Central Asian scene: it has proven itself a loyal partner on the level of bilateral diplomacy and has succeeded in turning the Shanghai Cooperation Organisation (SCO) into a regional structure appreciated by its members. China has also become a leading actor in trade as well as in the hydrocarbon sector and infrastructure. In examining the shift that China has generated in Central Asian realities, this paper focuses on the political and geopolitical impact of Beijing's growing influence, along with the economic implications of the Chinese presence in Central Asia. To what extent will this affect the objectives of the European Union? China is one of the EU's economic competitors in domains such as energy; it obstructs cooperation between Central Asian states and Western countries, and it encourages the authoritarian tendencies of political regimes. Yet, partnership and economic competition go hand in hand, as EU texts recognise. In addition, the EU's rationale for setting up in Central Asia is not to compete with neighbouring states, but instead to seek cooperation in accordance with the idea that a multiplicity of actors will guarantee the zone's stability and its geopolitical balance. So what joint interest might China and the EU have in Central Asia? On a certain number of questions such as security and long-term development, the EU and China share the same concerns and Beijing is seeking greater collaboration with Europe.
Topic:
Diplomacy, International Cooperation, Treaties and Agreements, and Bilateral Relations
Political Geography:
China, Europe, and Central Asia

2312. German Companies Engaging in China: Decision-Making Processes at Home and Management Practices in Chinese Subsidiaries

Author:
Geny Piotti
Publication Date:
11-2009
Content Type:
Working Paper
Institution:
Max Planck Institute for the Study of Societies
Abstract:
This paper attempts to explain why internationalization processes to China are growing despite the significant difficulties that foreign direct investments into China encounter. The answer to this question can be found in the processes of decision-making on internationalization at the company level and how these affect management practices in Chinese subsidiaries. The argument I put forward in this paper is that for the small and medium-sized enterprises the study focuses on, the decisions concerning investment in China are mainly the product of structural and legitimation pressure. Structural pressure can encourage cognitive mechanisms and behavioral consequences similar to those occurring when individuals (and organizations) cope with threat. Legitimation pressure can foster wishful thinking, which pushes actors to believe that desired options are good despite evidence to the contrary. These pressures have an impact on how well companies are prepared when they internationalize and can particularly affect some crucial management practices, leading to inefficiencies and problems in subsidiaries.
Topic:
Economics and International Trade and Finance
Political Geography:
China, Europe, Asia, and Germany

2313. "Building a New Socialist Countryside" – Only a Political Slogan?

Author:
Anna L. Ahlers and Gunter Schubert
Publication Date:
12-2009
Content Type:
Journal Article
Institution:
German Institute of Global and Area Studies
Abstract:
In March 2006, China's National People's Congress officially promulgated the central government's intention to “build a new socialist countryside”, a new policy initiative and approach to rural development. Drawing on fieldwork conducted in two Chinese counties in 2008 and 2009, this article investigates how the new policy is being substantiated and implemented at the local level. It argues that by combining China's new fiscal system of transfer payments to poor local governments with administrative reforms, intensified internal project evaluation, and efforts to increase the rural income through a mixture of infrastructural investment, agricultural specialization, the expansion of social welfare, and accelerated urbanization, “building a new socialist countryside” constitutes more than a political slogan and has the potential to successfully overcome rural poverty and the rural-urban divide.
Political Geography:
China

2314. The Centrality of Actors and Interfaces in the Understanding of New Ruralities: A Chinese Case Study

Author:
Norman Long and Jinlong Liu
Publication Date:
12-2009
Content Type:
Journal Article
Institution:
German Institute of Global and Area Studies
Abstract:
This paper aims to demonstrate the advantages of adopting an ethnographic, actor interface approach to understanding the ongoing dynamics of rural development and policy intervention processes. It does so through the discussion of an EU-fun ded project orientated to introducing village-level forest-management practices in north-west China. The case highlights the ongoing everyday struggles over livelihoods and resources and focuses on the negotiations that take place between the various social actors involved. The case analysis is preceded by a broad- sweep overview of the rise of new ruralities and a discussion of the key elements of an actor interface analysis. The article concludes with a call for more cross-country and cross-regional studies of this kind.
Political Geography:
China

2315. Social Security for China's Migrant Workers – Providing for Old Age

Author:
Andrew Watson
Publication Date:
12-2009
Content Type:
Journal Article
Institution:
German Institute of Global and Area Studies
Abstract:
The concept of “migrant workers” derives from the house- hold registration system of China's planned economy period. The continued existence of that system conflicts with the development of an integrated labour market. The current social security system, based on household registration and a large number of local pools, discriminates against migrant workers because of their mobility and the lack of mechanisms to transfer benefits between pools. As a result, migrants have made major contributions to China's economic development but do not get the same benefits as urban residents. Faced with this challenge, China's government has begun to introduce policy reforms to improve social security for migrants. This article explores this development through a focus on old-age insurance. It analyses the special needs of migrants, the obstacles facing policy development and the proposed solutions. It argues that social justice and social equity require the development of a system that treats all citizens equally, and that the logic of an integrated labour market will ultimately require a unified national system of old-age insurance.
Political Geography:
China

2316. China's Urban-Rural Integration Policies

Author:
Ye Xingqing
Publication Date:
12-2009
Content Type:
Journal Article
Institution:
German Institute of Global and Area Studies
Abstract:
The analysis presented here is based on the keynote speech discussing the most recent development s in rural policy on urban-rural integration in China delivered in Chinese by Professor Ye Xingqing at the Ninth European Conference on Agriculture and Rural Development in China (ECARDC9) held at the University of Leeds in the UK on 3-5 April 2009. Professor Ye's paper provides a comprehensive overview of the main initiatives, their rationale and their context, including some of the debates surrounding them. Professor Ye, who is an invited keynote speaker of ECARDC9 and the director-general of the Department for Rural Economy, Research Office of the State Council, People's Republic of China, has been personally involved in the process of formulating these policy initiatives. This translation of his paper seeks to convey properly the author's meanings and to strike a balance between documenting the official perspective and rationales, including the use of concepts, on the one hand and ease of comprehension on the other. The translator's notes are intended only for the clarification of, not commentary on, the content.
Political Geography:
China

2317. Reorganizing Rural Public Finance: Reforms and Consequences

Author:
John Q. Tian
Publication Date:
12-2009
Content Type:
Journal Article
Institution:
German Institute of Global and Area Studies
Abstract:
This article examines recent reforms to restructure rural public finance in China and their impact on local-government finance. The focus is on how fiscal income and financial expenditure are managed by local-level governments, particularly at the county and township levels, and how rural public and social services are financed. The article also looks at the development of intergovernmental transfers, ongoing administrative reform, more recent initiatives to extend public finance to cover rural residents as part of the comprehensive rural reform, and a new campaign to build a new socialist rural China.
Political Geography:
China

2318. China: Bogus Boom?

Author:
John H. Makin
Publication Date:
08-2009
Content Type:
Policy Brief
Institution:
American Enterprise Institute for Public Policy Research
Abstract:
China's economic statistics have become the envy of the world. On July 15, China reported a 7.9 percent growth rate for the second quarter of 2009 compared to the same period a year earlier. Meanwhile, China's stock markets are on fire, and its property markets are heating up fast as well. Shanghai's two stock markets are up 75 percent and 95 percent respectively so far this year. The more widely traded Hong Kong Index is up 27 percent, a stellar performance compared to largely flat stock markets in the United States, Europe, and Japan. In even stronger contrast, Russia, which is one of China's emerging-market peers, has seen its economy drop by 10.1 percent during the first half of this year, while its stock market has struggled as well.
Topic:
Economics, Emerging Markets, and International Political Economy
Political Geography:
Russia, United States, Japan, China, Europe, and Hong Kong

2319. Can China Keep Growing?

Author:
John H. Makin
Publication Date:
05-2009
Content Type:
Policy Brief
Institution:
American Enterprise Institute for Public Policy Research
Abstract:
Governor Zhou Xiaochuan's comment is an open acknowledgement that the “adverse feedback loop,” in which financial-sector problems hurt the real economy, which in turn intensifies negative conditions in finance, has hit China hard. China's real growth rate, which peaked at 13 percent in 2007 and is heavily dependent on exports, plunged to 6.1 percent on a year-over-year basis in the first quarter of 2009. Nominal growth, a measure of the current money value of goods and services, fell even more sharply, from 21.4 percent in 2007 to 3.6 percent in the first quarter of this year. The fact that the nominal growth rate is 2.5 percent below the real growth rate suggests that, at least as far as output is concerned, deflation has taken hold at a 2.5 percent rate in China.
Topic:
Economics, Emerging Markets, and International Political Economy
Political Geography:
China

2320. China and the United States

Author:
John H. Makin
Publication Date:
12-2009
Content Type:
Policy Brief
Institution:
American Enterprise Institute for Public Policy Research
Abstract:
A new truth of geopolitics has emerged during 2009. It is that the complex and rapidly evolving Sino-American relationship has become the most important bilateral relationship either country has. To this observation, made recently by William C. McCahill Jr. in the November 13 special issue of The China Report, must be added another claim: the course of the Sino-American relationship in both the economic and the political spheres will play a growing role in determining the levels of global economic and geopolitical stability. Trips like President Barack Obama's three-day visit to Shanghai and Beijing November 15–17 will probably be made with increasing frequency in coming years.
Topic:
International Relations, Foreign Policy, Diplomacy, International Political Economy, International Trade and Finance, and Bilateral Relations
Political Geography:
United States, China, America, Shanghai, and Beijing