The world needs China and China needs the world ^Featured

December 1^st,  2021

By Col.(Ret’d) Siamelie Latu
Secretary General Tonga China Friendship Association
Former Tongan Ambassador to the People’s Republic of China

Introduction

The eyes of the world are directed towards China. One might argue that her ancient name, Zhongguo, the Middle Kingdom, reflects her emerging position in contemporary times no less than it did in ancient times. China has again risen and plays a central role on the world stage as we witness envoys and leaders from around the world visiting China to cultivate good relations, to seek new partnership, and to negotiate mutual interests like never before. These are indeed historic times. For a diplomat, it is a once in a lifetime opportunity to serve in China, in a vibrant political atmosphere, where Chinese society and economy are undergoing an enormous transition. I consider it a privilege.

China for me has revealed itself as a world of many wonders, almost like a spellbinding myth, as was my impression during childhood when my teacher, Professor Futa Helu told me tales about emperors and dragon in the adventurous world of the ancient dynasties in the far, far East.

I have been the Ambassador of the Kingdom of Tonga in China since January, 2010 to March 2015 and it indeed has been a rewarding experience. It has been a time of constant changes, challenges and discoveries, a time of a new encounters and lessons.

My first visit to China was in 2001, when I attended the PLA National Defence University, and revisiting a decade later during a study tour from the Australian Defence College of Strategic Studies. It was a visualized dream for me about the adventurous world of the different ancient dynasties but also revealed the dramatic changes and rapid economic development. The changes I witnessed during this period are extraordinary. In all of the many places in China I have had the opportunity to visit, be it the more remote areas of inner China or the coastal areas and cities, one sees huge infrastructural projects and constructions taking place. The economic growth is bringing China more changes faster than any other country has experienced before. At the same time China has taken on a leading role on the world stage.

It is, likewise, an honor to be invited to express my views on issues related to China, on domestic and international politics on the occasion of the 90th anniversary of the Communist Party of China July 05, 2011 and to briefly address today’s opportunities and challenges.

Different systems – core elements

            In response to questions about my perceptions of the Chinese political system and the Communist Party I would like to pen the following remarks.

            Political systems manifest values that are normally deeply rooted in historic and cultural traditions. In essence, today’s China rests on a past that spans five thousand years of history and traditions. China’s political system bears some characteristics that obviously derive from its rich cultural heritage. It is multifaceted and complex and one should therefore refrain from explaining it in simplistic terms. The contemporary Chinese system aims at preserving characteristics that are at the core of the society’s self-conception and identity, such as the value of hard work and respect for one’s elders. These have been intertwined into the long history of China, through good and bad times.

            The Chinese system and the rule of the Communist Party differ substantively from the system and the governance of my own country. Tonga’s politics rest on a deep-rooted hybrid democracy. It is the merging of the Westminster model brought by the Wesleyan missionaries and Tonga’s traditional political system. A system and tradition of free speech and the freedom of act.  It prides itself with a long literary tradition and culture of heroism as reflected in the old Tongan empire.

            The two sides, however, share some core elements. Many of these common traits are positive in nature or make Tonga and China stronger as collective nations. However, both countries rest on and bear the characteristic of patriarchal, entrenched male dominant systems in their essence, where the role and opportunities afforded to women are secondary to those offered to men.

            We can debate if socialism or capitalism is more beneficial, the pros and cons of each system, but I choose to take this opportunity to mention this basic foundation and shared value-system.

            The leadership of the Communist Party of China has chosen an ambitious path of development. Since the opening up of China in the late 1970s and the restructuring of the economy, up to 800 million people have been lifted out of extreme poverty. The poverty relief campaign impressed the whole world, with almost 30,000 people pulled out of poverty every day and new employment opportunities have been created for hundreds of millions. This is a great achievement in a relatively short time, and it should be recognized that it takes a clear vision and strong determination to bring about such enormous reforms. This was not an easy task keeping in mind the size of the population, 1.4 billion, and the size of this vast country itself. The Communist Party and the Chinese people have made an astonishing headway in the almost impossible task of poverty alleviation. New challenges lie ahead as well as new opportunities.

Apart from the task of upholding steady and rising economic growth the main challenges lie in achieving and sustaining improved quality of life in different social contexts, through a fair distribution of wealth, strengthening of the social welfare-system, transparency within government, a division between political governance and the rule of law.

            The household registration (hukou) system in China, amongst other things, continuously has to be adjusted to the needs and requirements of a new society. Hukou system is classifying each person as a rural or an urban resident, is a major means of controlling population mobility and determining eligibility for state-provided services and welfare. Not to mention the freedom of speech, the influence of new social media, and accountability of government. One of the major factors that will impact the future of China is urbanization, the movement of people from rural to urban areas, which is and will be a major challenge. In this juncture, China needs to learn from the world. However, urbanization is a major opportunity because of increased domestic consumption, which can further fuel China’s growth. As the majority of the population for the first time in China’s history becomes urbanized – with urban dwellers exceeding rural dwellers for the first time in late 2011 according to the China National Bureau of Statistic – new needs and expectation of the citizen have to be met. There are currently about 690 million urban dwellers in China with 300 million more expected by 2030.

            The authorities cannot avoid respecting increased public awareness and demands. Along those developments come new increased opportunities based on growing domestic prosperity, increased domestic consumption and new growth models. Along come also global challenges and responsibilities in addressing issues such as climate change, increased energy needs and consumption, green growth and energy efficiency, food security, health issues and the like.

            China is doing well in its effort to promote and protect human rights. In my part of the world, politicians also need to bear in mind that meeting people’s basic needs, such as food, creating job opportunities and decent work and living conditions are a means of protecting human rights. Critics can recognize China’s achievements in this respect, in improving the quality of life for the masses. Conducting dialogues and debates on policies and actions on an equal footing without being prejudiced, overly judgmental or imposing, is always more likely to ensure positive returns and win-win results, rather than playing a zero-sum game.

            This does not mean that violations of human rights can ever be accepted. There are principal rules, universally recognized, that all states need to adhere to. One of these is the United Nations International Covenant on Civil and Political Rights, which has been signed but still needs to be ratified by China.

            Human rights and peaceful resolutions of conflicts are on Tonga’s agenda in all its encounters with foreign powers. As a small country, with a small armed force, it matters all, that disputes are brought to a conclusion by peaceful means, international consensus and with respect for the rule of law.  

The International Arena

‘China is a big country’, as it could also refer to a continent rather than a country. In 2016, China ranked third in land area, first in population, and first in Purchasing Power Parity (PPP) income level, with percentage shares in the world totaling 7.2% for land, 18.4% for population, and 17.6% for income. Despite its continent like size, the central theme in the China in the Local and Global Economy project is that China is crucially dependent on economic relations with the rest of the world. International connections in terms of trade, investment, and knowledge linkages are essential for China’s economy. The second observation is that, given its overall development level, China needs the world more than the world needs China. In this way, China is no different from any other country.

            China’s role in the international arena has changed extensively and faster than most observers foresaw. Being the second largest economy in the world and the biggest national holder of foreign exchange reserves carries significant responsibilities and is of great importance to the rest of the world. In the next 10-20 years, it is anticipated that China will be the largest economy. China wants to be a global player. When one looks at her population, economy, military, infrastructure, education and technology, it is the world’s largest trading nation and the largest trading partner to many nations.

            China played a crucial role in dealing with the international financial crisis and its recovery between December 2007 to June 2009, during which China demonstrated its strength to the world. Some Western media, especially U.S. media, blamed the financial crisis on China for undervaluation of the Renminbi, insufficient imports or low per-capita consumption levels, such claim believed to have led to problems in other economies. Frankly, this viewpoint is over-simplified since the causes of the crisis were complicated, and one should not cling on to a cold war mentality in looking at the world situation today. The world needs China and China needs the world. It is therefore important for all stakeholders to conduct dialogues and debates in the spirit of fair play, without being overly judgmental or imposing and to negotiate consensus to ensure positive returns and win-win result. And while the crisis is not over, many defects still remain in the world’s financial and economic systems. These defects could aggravate the still prevailing situation or even trigger another crisis again, not without threats to global peace and stability.

The Belt and Road Initiative

The world needs China as it would reap tangible benefit from the China Belt and Road Initiative (BRI).  BRI will become a transnational network to facilitate trade and investment and promote common development among all countries involved. At the same time, the Belt and Road Initiative aims to ensure all parties gain real benefits and to promote peaceful cooperation and common development around the world and to strengthen China’s connectivity with the world. It combines new and old projects, covers an expansive geographic scope, and includes efforts to strengthen hard infrastructure, soft infrastructure and cultural ties. Cooperation under the Belt and Road (B&R) framework is something in which all countries, big or small, rich or poor, can participate on an equal footing. This cooperation is public, transparent, and open, and brings positive energy to world peace and development. Under this framework, the countries concerned adhere to the principle of achieving shared growth through discussion and collaboration, and join hands to build a new system of global economic governance. Cooperation helps promote efficiency in the flow of elements and in-depth integration of markets, to achieve diversified, independent, balanced and sustainable development. It aims to promote regional development, prosperity and stability, and expand dialogue and mutual learning between civilizations.

The benefits of the AIIB to the World

Following the launch of the Belt and Road Initiative in 2013, China proposed to establish the Asian Infrastructure Investment Bank (AIIB) as a new source of infrastructure financing in Asia. Like the China-led Belt and Road Initiative, the AIIB reflects the emergence of China's new, much more assertive foreign policy posture. The AIIB opened for business in 2016 shortly after the signature of the Paris Agreement, with the pledge to be 'lean, clean and green'. Despite official American opposition, 57 countries have opted to be among the founding members of the China-led Asian Infrastructure Investment Bank (AIIB). Regardless of what naysayers believe, this remarkable turn of events can only benefit global economic governance.

Specifically, the bank is a critical element of China’s “one belt, one road” strategy, which encompasses two initiatives: the overland Silk Road Economic Belt, connecting China to Europe, and the 21st Century Maritime Silk Road, linking China to Southeast Asia, the Middle East, and Europe. While the US “pivots” to the east, China is pirouetting west, applying the lessons of its development to its trading partners across Eurasia and beyond.

Perhaps the most important of these lessons is that connectivity is vital to economic growth of both China and the world. Over the last three decades, the construction of roads, railways, ports, airports, and telecommunications systems in China has fostered trade, attracted investment, and, by linking the country’s land-locked western and southern provinces to its more prosperous coastal areas, helped to reduce regional disparities.

China’s Silk Road initiative, which aims to boost prosperity among China’s trading partners largely through infrastructure investment, is a logical next step – one on which China is spending significantly. In addition to its initial contribution of up to $50 billion to the AIIB, China has committed $40 billion to its Silk Road Fund, $32 billion to the China Development Bank, and $30 billion to the Export-Import Bank of China (Andrew Sheng Professor Tsinghua University).

Tonga/China Relation

            Tonga and China are worlds apart. Not only are our two countries far apart geographically, the latter is also the largest in the world and the former among the smallest. Despite our differences, trade relations and constructive cooperation between the two countries are expanding steadily and so have relations and cooperation between the two governments in recent years.

His Late Majesty King Taufa’ahau Tupou IV did recognize that China is moving slowly from planned economy to building a high-level socialist market economy that will fully unleash the vitality of the 1.4 billion Chinese people, enabling them to create more social wealth, pursue better lives, ultimately achieve common prosperity for everyone and the long-range objectives. Thus, His Late Majesty Tupou IV encouraged Tongans to learn from the Chinese peoples’ hard working and business ethic as well as studying the Chinese language.

Tonga signed a bilateral trade agreement with China, taking a step closer to becoming a full member of the World Trade Organization. China supported Tonga’s accession to the WTO in 1995 (Pacific Islands Report 20/01/2005). According to statistics, the total trade between China and Tonga for 2019 is US$29.57 million, with a growth rate of 18 % over the previous year. However, there are still great potentials to be tapped in the bilateral trade, especially in Tonga’s export to China. The two countries should explore new areas for cooperation, such as science and technology, to improve Tonga’s manufacturing and processing capacity so as to increase the added value of Tongan agricultural products and make them fit into the need for green and high-quality agricultural products of the Chinese market. In this way, our joint efforts will help Tonga transform the advantages in natural conditions and human resources into development opportunities to achieve a better economic growth.

As regards the diplomatic relations between Tonga and China, significant events mark milestones this year. This year, 2021 may prove to be quite a significant year as the bilateral relationship between Tonga and China is reaching new heights. Most important was the telephone conversation between His Majesty Tupou VI and Chinese President Xi Jinping on September 24, 2021. China is ready to expand cooperation with Tonga in various fields within the framework of the Belt and Road Initiative, offer economic and technical assistance without any political strings attached, continue to carry out agricultural and technical cooperation projects, and provide necessary assistance for Tongan agricultural and fishery products' entry into the Chinese market. China welcomes Tongan enterprises to attend the China International Import Expo and stands ready to help with the country's fight against the COVID-19 within its capacities.  Furthermore, the Chinese Government and the Tongan Government signed an economic and technical agreement in May, through which China will provide 70 million Renminbi (around 25 million Pa’anga) to Tonga for implementing projects agreed by the two sides. The China-aid Military Band Facility project under PLA and HMAF mutual cooperation program is under construction.

All the above-mentioned issues are areas in which the Tongan Embassy in Beijing plays an important role in carrying out the policies of the Tongan government, promoting Tonga’s interests in all fields as well as supporting Tongan stakeholders pursuing collaboration in China.

China is the largest developing country in the world and offers fertile grounds for partnerships. Nowhere do we expect to see as large an increase of affluent domestic consumers in the next decades as in China. I believe Tonga can provide quality import for consumption, technology and expertise that adds value and strengthens already existing cooperation and mutual benefits are the end-goal.

Conclusion

Why China needs the world and the world needs China? Despite her continent like size, the central theme in China in the Local and Global Economy project is that China is crucially dependent on economic relations with the rest of the world. International connections in terms of trade, investment, and knowledge linkages are essential for China’s economy. The second observation is that, given its overall development level, China needs the world more than the world needs China. In this way, China is no different from any other country.

The world needs China because China is playing a growing role in the world economy. It is one of the world's fastest growing countries and is the largest exporter of goods in the world since 2009. Official estimates suggest the country’s total exports amounted to $2.641 trillion in 2019 (The World Bank. "Exports of Goods and Services).  In 2013, China became the largest trading nation in the world. The United States previously held that position. Thus, China needs the world and the world needs China.

END