1978’s economic evolution

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Background and Theoretical framework:
Since 1978’s economic evolution, China started to initiate its high growth model. In 2001, China overcame massive restrictions to join the World Trade Organization, and then China was officially boosting its’ development rate. During 2001 to 2010, the Chinese growth rate was all over 10%. Hence, China became the second largest economy in the last month of 2010. However, 2008’s financial crisis still made serious impacts on Chinese growth rate, so the Chinese growth rate was decreased from 10% to 7% on average. It still is an acceptable result for China or the Chinese government. Nevertheless, the high growth rate makes China have high productivity. If China still can grow at the original rate, it causes a positive circle for China. The Chinese growth rate was decreasing, so surplus productivity would be useless and caused some social issues. For instance, increasing the unemployment rate. Therefore, China started to build up a plan for cooperating with other Global South Countries to achieve “Double Win.” Then, since 2012, Xi Jinping took officer from Hu Jintao and decided to initiate South-South Cooperation. Then, he also published the “One Belt One Road” building Chinese style South-South Cooperation. Comparing to Hu’s policy, Xi’s Policy becomes more cooperated and multi-field. (Ferdinand, 2016, P941) During Hu’s administration, China joined into BRICS club in 2009 to collaborate with other Countries to recover from the financial crisis; However, China does not show some policies for helping low-income countries. Meanwhile, most of Hu’s cooperation was against international terrorism and peaceful. (Ferdinand, 2016, P942) Xi’s policy is cooperated with other countries within many fields, for instance, economic development, technical knowledge sharing, and infrastructure investment. In this article, I will analyze whether China becomes a global actor during Xi’s administration and what kind of new paradigm build by China among three fields, which are infrastructure building, financial supporting and technology sharing. Meanwhile, I will also state three examples, which are cooperated with Russia and India to show “One Belt One Road” impacts on the different regions.
“One Belt One Road” is the main policy for Chinese South-South cooperation. It is creating the “economic belt,” which means trade relationship between developing countries and developed countries to increase developing import and export to growing GDP. Meanwhile, it also increases the Chinese aids for partners (Ferdinand, 2016, P949). However, many western media consider “One belt One Road” is a new version of the Marshall plan. The most crucial reason is that “One Belt One Road” policy lack of transparency. (McKinsey, February 11, 2019) Western Media consider Chinese invest in many Countries, but they do not get any outcomes from the investment. Hence, they speculate that the Chinese Government is utilizing the large capital for federal returns. (Foreign Policy, February 11, 2019) However, it is a Chinese especially development paradigm for the other countries. “One Belt One Road is not only the Chinese government’s works, rather than it is a policy which makes all Chinese participate. The reason is that the government cannot response all cost on “One Belt One Road.” Hence, the Chinese government makes the “stage,” and they invite Chinese Corporations for “playing.” (XU, X., LI, X., QI, G., TANG, L., & MUKWEREZA, L, 2016, P84) The Chinese multi-corporation transplant themselves to other countries. On the one hand, they can better share their technical knowledge of what local need; on the other hand, the corporations can become the “bridge” between China and African trade. Meanwhile, Chinese government appeal to Chinese international corporations can expand their influences. It is not only “One Belt One Road, but” it also is Chinese “go out.” It is a “Double-Win” for Government and Corporation. However, daily operations are maintaining by the international corporation or province government. (Gu, Jing, Chuanhong Z, Alcides V, and Langton M. 2016, P26) The central government cannot exposure all details for western media because of the Chinese central government just leader and policy maker for “One Belt One Road.” Although the Chinese paradigm is lack of transparency, it still creates the alternative development “pathway” for the Global South through three aspects.
Data and Statement:
Chinese Cooperation is varied with different objectives. It typically has three categories’ cooperation, which are infrastructure building, financial collaboration, and technology sharing. For the infrastructure building, it is a crucial Chinese part for cooperation. Chinese development paradigm is different from the western paradigm, which is directly capital inflow. China considers it is cooperation rather than “donors” and “recipients’ relationship, so China wants to increase low-income countries’ market capacity. (XU, X., LI, X., QI, G., TANG, L., & MUKWEREZA, L, 2016, P84) For instance, Africa is a new market for the rest of the world; however, low economic and deficient market make Africa cannot trade with other countries to grow themselves. Hence, China invests in African infrastructures to make a trade with the rest of the world. It is an important step for African development and Chinese development. Africa has abundant raw resources, and China is the largest raw resources consumers in the world. (XU, X., LI, X., QI, G., TANG, L., & MUKWEREZA, L, 2016, P84) Therefore, infrastructure investment is “Double-Win” activities. Meanwhile, it also is the main differences between the Chinese paradigm and western paradigms. Western Paradigm typically does not consider low-income Countries’ inner institutions’ growth, and direct capital investment cannot be a long-term plan.
In the international financial market, The US states at dominance. However, it is harmful to other countries to maintain their financial system. Hence, China and other BRICS countries started to break the situation in which the US dominated. (Sen, 2016, P1) During the US dollar dominated market, Chinese foreign investment needs to exchange to the American dollar. It is harmful to Chinese foreign reserves and causes financial capital outflow so that It will cause the trade deficit for the Chinese economy. (Sen, 2016, P7-P8) However, for Chinese and other BRICS countries, their crucial part for their South-South cooperation policy is Asian Development Bank, The US dominated milieu hinder their cooperation’s progress and reduced cooperation at South-South cooperation. It also can create a more equitable environment for later better economic growth.
Technical sharing is an essential part of most of South-South Cooperation. For example, Brazil and African cooperation are basing on agriculture’s knowledge sharing. (reading 8) Chinese also treat technical sharing is the main aspects for South-South Cooperation. For Chinese Technical Cooperation, it typically composes by two parts, which are exporting technical products and technical experts. When Chinese collaborates with other BRICS countries, they increase trade with technical products or theories during their cooperation. (Finardi, 2014, P1166) It brings “energy” for all countries’ development. In 2011 BRICS Summit, China declares that they want to create a strong connection through technology and innovations. (Finardi, 2014, P1166) Moreover, exporting technical experts is important aspects for developing in African countries. In Africa, they do not have enough experts to support their development, so technology and educational support are essential for African development. (XU, X., LI, X., QI, G., TANG, L., & MUKWEREZA, L, 2016, P83) According to the three aspects, China already to make many contributions to South-South cooperation. However, Chinese cooperation typically started at Initiating “One Belt One Road” policy, so it still is an early program. Meanwhile, most of the projects do not have any outcome or data. Hence, Chinese "One Belt One Road" cannot be defined as a new paradigm, and they offer an alternative option for Global South. It still needs some time to prove it. There are some special programs for analyzing China and other countries’ cooperation, and it shows why the Chinese model still cannot be a new paradigm now.
Special data analysis:
China and Russia:
China and Russia cooperation are beginning from a long time ago. However, their cooperation typically is “exporter” and “importer.” Russia has abundant resources about gas and oil, so it offers the resources for China growing. (Zhang & Serdar, 2017, P9) After Xi’s administration, which is “One Belt One Road,” the Chinese government started to build up infrastructures for protecting the transferring oil and gas. (Zhang & Serdar, 2017, P2) However, they do not have more cooperation for other aspects or do not have that strong connection. Although they are neighbor countries, they still do not affect each other too much. Chinese special developing “paradigm” does not offer Russia “energy” for developing.
China and India:
For China and India, “One Belt One Road” is long term economic development cooperation. It increases connectivity between China and India, and it is good for India long-term economic growth. However, For India, it considers “One Belt One Road” does not bring opportunities rather than it brings more Challenges on the Indian Ocean. (Hu, 2017, P108) Indian worries conduct that opportunities which are bringing through “One Belt One Road” cannot exceed Challenges which China brings. (Hu, 2017, P112) China and India have similar development situations; however, similarity cannot offer a reference for developing for India, and it also means the Chinese paradigm does not have attractions for some countries. China still needs to think about innovating the paradigms to transfers the competitions to the cooperation.
Reference:
“China’s One Belt, One Road: Will It Reshape Global Trade? | McKinsey.” https://www.mckinsey.com/featured-insights/china/chinas-one-belt-one-road-will-it-reshape-global-trade (February 11, 2019).
Ferdinand, P. (2016). Westward ho-the China dream and ‘one belt, one road’: Chinese foreign policy under Xi Jinping. International Affairs, 92(4), 941-957. doi:10.1111/1468-2346.12660
Finardi, U. (2014). Scientific collaboration between BRICS countries. Scientometrics,102(2), 1139-1166. doi:10.1007/s11192-014-1490-5
Gu, Jing, Chuanhong Zhang, Alcides Vaz, and Langton Mukwereza. 2016. “Chinese State Capitalism? Rethinking the Role of the State and Business in Chinese Development Cooperation in Africa.” World Development 81: 24–34.
Hu, R. W. (2017). China’s ‘One Belt One Road’ Strategy. Opportunity or Challenge for India? 53(2), 107-124. Retrieved February 5, 2019, from https://journals.sagepub.com/doi/pdf/10.1177/0009445517696619.
“One Belt, One Road, One Big Mistake – Foreign Policy.” https://foreignpolicy.com/2018/12/06/bri-china-belt-road-initiative-blunder/ (February 11, 2019).
XU, X., LI, X., QI, G., TANG, L., & MUKWEREZA, L. (2016). Science, Technology, and the Politics of Knowledge. The Case of China’s Agricultural Technology Demonstration Centers in Africa, 81, 82-91. Retrieved March 4, 2019, from ttps://www.sciencedirect.com/science/article/pii/S0305750X15301509?via=ihub.
Sen, S. (2016). The BRICS Initiatives Towards a New Financial Architecture: An Assessment with Some Proposals. 205, 1-8. Retrieved February 5, 2019, from http://www.ris.org.in/brics-initiatives-towards-new-financial-architecture-assessment-some-proposals
Shankland, Alex, and Euclides Gonçalves. 2016. “Imagining Agricultural Development in South–South Cooperation: The Contestation and Transformation of ProSAVANA.” World Development 81: 35–46.
Zhang, X., & Serdar, M. (2017). Analysis of Oil and Gas Cooperation between China and Russia in the Belt and Road. SHS Web of Conferences,39, 01034. doi:10.1051/shsconf/20173901034

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