Instruments STATISTICS

Question 1

Diplomacy
1: Diplomacy for One China?

> UN
Chequebook Diplomacy
Public Denouncement

Answer 1

UN
Taiwan has NOT declared its independence and has been isolated from the international community.

2008 was the last time it attempted recognition of membership at the UN

 In Taiwan’s 2004 bid for membership, supported by 16 allies, 93 states were mobilised by China to speak against its membership.
 Currently, around 24 nations recognise Taiwan and these are insignificant states such as Nauru and the Vatican.

Chequebook Diplomacy
Beijing has provided over $520m in preferential loans to the eight pacific island states that recognise it, which bought Vanuatu a new plane and two cargo ships.

Public Denouncements
Foreign Ministry spokesman Qin Gang in May 2008 declared to Gordon Brown, after he met with the Dalai Lama, that: “This is interference in China’s internal affairs and also seriously hurts the feelings of the Chinese people.”

Question 2

Diplomacy
111:Diplomacy for its Economic Development

> Iran

Answer 2

Iran
China protects its interests in Iran, and refuses sanctions.

China has invested $40b in the oil and gas sector and gains %14 of its total oil imports from Iran.

Iran ensures China’s energy security (central to EC –DEC) but is also a key export market for Chinese weapons

Between 2002-2005, Beijing exported $100m worth of arms

Question 3

Trade
1:Trade-Territorial Integrity?

> 3DL?
Chequebook Diplomacy?
Augmented Investment?

Answer 3

1. Three Direct Links
   Cross strait trade has rocketed from a mere $46m in 1978 to $44.6b in 2002, an increase of one thousand fold.

By the end of September 2003, the accumulated volume of cross-strait trade had totalled $308b, of which $48b came from the mainlands exports to Taiwan, and $260b from Taiwan’s exports to the Mainland.

Since 1991, the mainland has become Taiwan’s number 1 source of trade surplus.
Professor Bruce Jacobs’s notes: “capital invested by both parties in one another needs to be highlighted as a means of conflict resolution.

In September 2010, China-Taiwan Economic Cooperation Framework Agreement came into effect, cutting tariffs on 539 Taiwanese exports to China and 267 Chinese products into Taiwan, goods worth in excess of $17b a year

2. Chequebook Diplomacy; Opening/Closing of Links
   In 2007 Beijing established trade links with Costa Rica after it switched recognition to the PRC, and such cost of this chequebook diplomacy was the building of a sports stadium and the purchase of $300m in Costa Rican bonds

Costa Rica has since greatly benefited costa rica, china is now its second largest trading partner.

3. Augmented Investment
   Tibet
   State transfers to the TAR have been “astronomical” in proportion to the size of its economy according to the Far Eastern Economic Review;

Between 2006-2008, Beijing planned 180 infrastructure projects worth $10.2b which, with state subsidies, accounted for 75% of its GDP.

This has helped TAR enjoy 12% average growth rates.
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However, Tibetans are unable to enjoy the spoils due to poor investment in TAR’s education system.

Xinjiang
One of the means by which the government funds growth is through a resources tax of 5% on the production of oil and gas in Xinjiang.

Question 4

Trade

FDI- Economic Development?

Answer 4

FDI into the state totalled $42.78b from January to May 2008, an increase of 54.97% from year before, which aided in the establishment of 11,000 new overseas funded enterprises during this period.

TRADE STATISTICS
Top Export Partners 2009:
-#1 US 20.3%
-#3 Japan 8.32%

Top Import Partners 2009:
-#1 US 12.27%
-#5 Taiwan 6.84%
FDI into China
2000- $40b
2004-$60b
2008- $100b

Origins of FDI into China  
#1 Hong Kong $20.23b
#3 Japan $4.60b
#5 USA $2.87b
#7 Taiwan $2.14b

Outward FDI flows by China
#1 Latin America $6,466b
#2 Asia $4,374b
#3 Europe $505b

Merchandise Trade
2000: Exports (24,824Million) Imports (25,953Million)

2005:Exports (762,326Million) Imports (660,221Million)

Question 5

Aid

Foreign Aid

Answer 5

China Statistical Yearbook 2003-2006 released an annual aid figure of $970m, other sources estimate annual foreign aid as being as high as between US$1.5b and US$2b.

Aid Fuelling Corruption:
NGO EarthRights has warned China’s investment into the building of oil and as pipelines in Burma is “an obvious risk” that has contributed to corruption in the state given the government’s lack of transparency over the manner in which investment is used.

Question 6

Aid

Noninterference reducing?

Contributions to peacekeeping positive image?

Answer 6

Non-Interference Emphasis Reducing:

As of May 2011, Beijing contributions to UN Missions stood at 92 Police, 48 Military Experts on Mission and 1896 troops.

Contributions to Peacekeeping/Positive Image:
The Economic benefits of peace have not gone unnoticed, as China’s ambassador to the UN noted in 2009: “whenever there is peace, I think there will be opportunities for investment”.
>Congo: 218
>Liberia: 564
>Sudan: 444

Question 7

Military Power

Expenditure?

Capacity?

Territorial Integrity? (ONE CHINA)

TAR? (ONE CHINA)

Answer 7

Expenditure on Military
4.3% of GDP ranked it 26th globally in 2006. Australian intelligence agencies estimated the actual budget was closer to A$90b, double that announced by Beijing. It was concluded that Beijing is hiding the extent of its militarisation.

Capacity:
In 2007, China used a ballistic missile to destroy a defunct satellite, clearly showing its capacity to bring down foreign satellites if need be.
The Jan 2010 successful testing of a land-based missile system also forewarns of China’s potential military might, as the only other state to have this capacity is the US.

Territorial Integrity:
The increasingly pro-independence positions and activism seen in Tibet, Xinjiang and Inner Mongolia is of concern to the government. The use of military power backfired when it was used in reaction to the March 2008 Lhasa riots which evoked international outrage and provided priceless coverage to separatists’ claims.

TAR:
US Legislation:
Under the 1979 Taiwan Relations Act, the US has stated that “efforts to determine the future of Taiwan by other than peaceful means…is a threat to peace and security….ad a grave concern to the United States. The US is obliged under this act to intervene if China seeks to resolve the issue using other methods than peaceful means.

Military force and TAR:
Beijing has strategically placed over 1600 missiles on its coastline facing Taiwan as a reminder to the Island of the dangers of formally declaring its independence.
In the TAR it is estimated that there is one Chinese soldier to every 20 (1:20)Tibetan civilians (compared to 1:1,400) in the rest of China.