File 026856
Xi Jinping, China and the Global Order: The Significance of China's 2018 Central Foreign Policy Work Conference (File 026856)
An address by former Australian Prime Minister Kevin Rudd analyzing China's 2018 Central Conference on Foreign Affairs, examining Xi Jinping's strategic shift from Deng Xiaoping's passive international policy toward active global engagement and assertive regional expansion.
Summary
Kevin Rudd delivers a comprehensive analysis of China's June 2018 Central Conference on Foreign Affairs, contrasting it with the 2014 conference that marked a strategic departure from Deng Xiaoping's doctrine of restraint. Rudd examines how Xi Jinping's administration has pursued aggressive policies including South China Sea militarization, the Belt and Road Initiative, establishment of the Asian Infrastructure Investment Bank, development of naval bases across Asia and Africa, and creation of an International Development Cooperation Agency. He emphasizes that these changes reflect a well-considered grand strategy based on careful analysis of underlying historical trends in international relations, representing a fundamental shift in China's approach to global engagement and assertiveness.
XI JINPING, CHINA AND THE GLOBAL ORDER:THE SIGNIFICANCE OF CHINA’S 2018 CENTRALFOREIGN POLICY WORK CONFERENCETHE HON. KEVIN RUDD26 TH PRIME MINISTER OF AUSTRALIAPRESIDENT OF THE ASIA SOCIETY POLICY INSTITUTE, NEW YORKAN ADDRESS TO THE LEE KUAN YEW SCHOOL OF PUBLIC POLICYNATIONAL UNIVERSITY OF SINGAPORETUESDAY 26 JUNE, 2018On 22-23 June 2018, the Chinese Communist Party concluded its Central Conference on WorkRelating to Foreign Affairs, the second since Xi Jinping became General Secretary of the Partyand Chairman of the Central Military Commission in November 2012. The last one was held inNovember 2014. These are not everyday affairs in the party’s deliberations on the greatquestions of China’s unfolding global engagement.These conferences are major, authoritative gatherings of the entire leadership, designed tosynthesise China’s official analysis of international trends, and assess how China shouldanticipate and respond to them in the prosecution of its own national interests. This one, likethe last one, was presided over by Xi Jinping and attended by all seven members of thepolitburo standing committee, plus ex-officio member Vice President Wang Qishan, togetherwith all other eighteen members of the regular politburo, in addition to everybody who isanybody in the entire Chinese foreign, security, military, economic, trade, finance, cyber andintelligence community, as well as the central think tank community.It’s a meeting that’s meant to be noticed by the entire Chinese international policyestablishment, because if there is to be any new directive concerning China’s place in theworld, it’s likely to be found somewhere in Xi Jinping’s 3,000 character report to thisconference.Of course, the entire deliberations of the conference are not made public. Three-and-a-halfyears ago, only a selected part of it was broadcast and reported in the central media. Thesame this time as well. And unlike in Washington, the Chinese system doesn’t leak everytwelve hours. There is, therefore, an often hazardous reading of the tea leaves in interpretingwhat it all means, discerning what is new, what is new-ish, and what is not.WHAT IS NEW?How does the 2018 Work Conference compare with the one in 2014? The 2014 iterationrepresented the formal, official funeral of Deng Xiaoping’s international policy dictum of the1 of 10previous 30 years of “hide your strength, bide your time, never take the lead”. It also heraldedthe beginning of a new period of confident, independent international policy activismby Beijing. In part this change reflected Xi Jinping’s greater centralisation of political power inthe Chinese system. In part it reflected the Chinese system’s deep conclusion that Americanglobal power was in relative decline and that the United States would not confront Chinamilitarily if China sought to expand its regional military presence. In part it reflected a Chineseinstitutional conclusion that China had finally become an indispensable global economic powerto most countries in the world, thereby enabling China to begin to project its economicinfluence bilaterally, regionally and also multilaterally. It also was an expression of Xi Jinping’spersonal leadership temperament, which is impatient with the incremental bureaucratismendemic to the Chinese system, and with which the international community had becomerelaxed, comfortable and thoroughly accustomed.For those who follow these events closely and have written on the importance of thissignificant departure from China’s traditional strategic framework dating from the 2014conference, a number of developments since then have been illustrative of this overall changein the style, content and direction of China’s international policy approach. China workedovertime in 2014-16 to expand its military position in the South China Sea with a rapid programof island reclamation. China took the idea of the New Silk Road and turned it into a multitrilliondollar trade, investment, infrastructure and wider geo-political and geo-economicinitiative, engaging 73 different countries across much of Eurasia, Africa and beyond. Chinasigned up most of the developed world in the first large-scale non-Bretton Woods multilateraldevelopment bank called the Asian Infrastructure Investment Bank (AIIB), capitalised it andlaunched it so that it now has a balance sheet already approaching the size of the AsianDevelopment Bank.China has also become for the first time a multilateral diplomatic activist, launching diplomaticinitiatives of its own beyond its own immediate sphere of strategic interest here in the EastAsian hemisphere, as well as actively participating in other initiatives such as the JCPOA onIran, rather than declining to reach beyond its own narrowly defined core national interestsas we have often seen in the past. China has also developed naval bases in Sri Lanka, Pakistanand now Djibouti (the latter with some 5,000 troops based there), as well as participating innaval exercises with the Russians in the Sea of Japan, the Mediterranean and even the Baltic.And now in the most recent National People’s Conference in March 2018, we have the decisionto establish China’s first ever International Development Cooperation Agency to manageChina’s burgeoning aid programs across the developing world. Of course, these leave to oneside the activities of Chinese state financial institutions, other Chinese SOE’s as well as Chinesemixed investment funds operating on every continent and in every region of the world.It would be wrong, analytically, to say that all these suddenly began after the 2014 CentralConference on Work Relating to Foreign Affairs. Some began in the two years before thenafter Xi first became General Secretary in late 2012. And some have their antecedents in thelate Hu Jintao period. But my point is that they all either began, were intensified or else wereformally publicly legitimised by the conclusions of the last Central Conference. In short, the2 of 10system was given the mandate to contest, assert, and where possible to lead in the variouscouncils of the world. And this was new.Furthermore, anyone who continues to entertain the fanciful idea, which I still sometimesseen in Western commentary, that these changes are not the product of a well-consideredChinese grand strategy, is simply choosing to ignore the clear evidence of clearly definedpolicy purpose systematically at work in the field. Our Chinese friends think things throughcarefully. They observe carefully. Not just what is happening in the headlines, which is thepermanent obsession of the Western political establishment. But what is happening, in whatXi Jinping would describe as “the underlying historical trends” in international relations. Andthen, after a period of detailed internal reflection, consideration, and where necessaryconsensus building within the system, a new direction is set.That indeed is what these Central Foreign Policy Work Conferences are all about. They sumup where the system has got to in its analysis. And then what the system intends to do aboutit. It’s part of the rolling system of policy analysis, implementation and review thatcharacterises the entire Chinese public policy system, both foreign and domestic. It is bothone of the great strengths of the Chinese system. But also one of its great weaknesses if theconclusions reached prove it be analytically flawed, or unsustainable in practice. It takes a lotto turn the Chinese ship of state around once that course has been set at the top.So what changes with the 2018 Central Conference? Is it more of the same? Or simply anintensification of the trajectory? Or a change in content and tone. The answer is all of theabove—a blend of continuity and change.A NEW ROLE FOR PARTY IDEOLOGY IN FOREIGN POLICYFirst, the press reporting of the conference asserts the absolute centrality of the party to thecountry’s foreign policy mission. This is not entirely new. But the emphasis on the role of theparty is much stronger than before. In the recent past, the country’s international policyestablishment, like its econocrats, have seen themselves, and have been seen by the Chinesepolitical establishment, as a technocratic elite. That is now changing in foreign policy as muchas it has already changed in economic policy.This is part of a broader trend in Xi Jinping’s China, whose focus is to rehabilitate the partyfrom moral death from corruption on the one hand, and practical death from policy irrelevanceon the other.Xi has been concerned that the party had become marginal to the country’s major policydebates given the technocratic complexity inherent to most of the country’s contemporarychallenges. That is why, for example, we now see a revitalisation of theory over practice, areassertion of the power of the major institutions of the party over the major departments ofstate, and once again of political ideology over mere technocratic policy.3 of 10Nor does Xi Jinping intend presiding over the party’s “death by a thousand cuts” as it contendswith a range of unfolding political forces unleashed by a combination of the market economy,social liberalisation and foreign influence.No—Xi Jinping intends for the party to defy the trend-line of Western history, to see offFukuyama’s end of history with the inevitable triumph of Western liberal-democratic capitalismand to preserve a Leninist state for the long term as the most effective means of ensuringthat China prevails in its domestic and international challenges. That is why there is lengthytreatment in this conference on, to use the language of the Xinhua report, “Upholding theauthority of the CPC Central Committee as the overarching principle and strengthening thecentralised, unified leadership of the Party on external work.”In case we missed the emphasis, Xi Jinping also states that “diplomacy represents the will ofthe state, and diplomatic power must stay with the CPC Central Committee, while externalwork is a systematic project.” Xi calls “for implementing reform of the institutions andmechanisms concerning foreign affairs under the decision of the Central Party leadership andenhancing party-building in institutions abroad so as to form a management mechanismcatering to the requirements of the new era.”The conference also emphasised that China’s diplomacy would now be a “diplomacy ofsocialism with Chinese characteristics” and as such would take Xi Jinping thought from thedomestic into the foreign policy domain. In the past, this language of “socialism with Chinesecharacteristics” applied to the overall Chinese ideological system, usually interpreted asChina’s own form of state capitalism. But now it is applied to diplomacy, and it inferssomething else.It seems to mean conforming diplomacy with a wider ideological worldview which lies beyondthe simple policy pragmatism we have seen for decades guiding most elements of Chineseforeign policy in the prosecution of China’s national interests. There now seems to be a newnational and-or global vision that now sits above the simple maximisation of national interests.This seems more than the routine incantations of the China Dream, the party’s centenaryobjectives for 2021, and the national centenary mission for 2049 with which we have becomefamiliar since Xi came to power. At this stage, this new overarching ideological mission maybe inchoate, but the fact that it is as yet not fully formed does not mean that it does not exist.Lest there be any doubt on this count, the ranking foreign policy technocrat attending theWork Conference, former Foreign Minister and State Councillor Yang Jiechi, and now Directorof the Foreign Policy Office of the Party Central Committee, refers explicitly to the ideologicalsignificance of this conference. It is worth quoting Yang’s remarks at the conference at somelength. He states that the most important outcome of this conference is that:“It established the guiding position of Xi Jinping thought on diplomacy.Xi Jinping thought on diplomacy is an important part of Xi Jinping Thoughton Socialism with Chinese Characteristics for a New Era...It is a majortheoretical achievement in the thoughts on state governance in the area of4 of 10diplomacy by the CPC Central Committee with Comrade Xi Jinping at thecore, and a fundamental guideline for China's external work in the newera...We should integrate our thoughts and actions into General SecretaryXi Jinping's important address and Xi Jinping thought on diplomacy, andmake new advances in China's external work."To an international foreign policy audience, this may all seem a little arcane. That’s becausein the internal ideological deliberations of a one party state, it is arcane. But we would beblind not to see that there is something new at play here. It is unclear whether this meansChinese foreign policy is likely to be more Marxist in its conceptualisation, or even itsexecution? Whether it likely to be more Nationalist? Whether it will seek to more activelypromote the Chinese development model of “authoritarian capitalism” as a model for theworld, in competition with the “liberal democratic capitalism” of the West? Whether it is amuch more unformed worldview which will ultimately take shape around Xi Jinping’s as-yetdeliberately-vagueconcept of “a global community of common destiny,” which is now thesubject of intense work within China’s think tank community, and with the internationalacademic community.Or whether it is something more mechanistic than that altogether, involving a desire to fireup China’s current diplomatic establishment into a more invigorated, imaginative, creative,even forceful effort to shape the future global rules-based order more in China’s image, ratherthan China being the permanent “price -taker” for rules already determined elsewhere byothers. Particularly where elements of the existing order are seen to represent a continuingand unwelcome challenge to the legitimacy of China’s domestic political order, for example inareas such as the rule of law, human rights and democracy.A NEW IDEOLOGICAL CONFIDENCE THAT HISTORY FAVOURS CHINAThere is a second element to the June 2018 Conference which grows out of the first. It is Xi’sdeeply Marxist, dialectical-materialist view of history based on permanently evolving“contradictions” between what dialecticians call thesis, antithesis and synthesis. In Xi’s view,this in turn gives rise to defined “laws” of historical development which are both prescriptiveand predictive.This may sound like old-fashioned Marxism. That’s because it is. The intellectual software ofgenerations of Chinese leaders has been shaped by this conceptual framework for interpretingand responding to what they define as scientific, objective reality. And Xi Jinping belongs tothat tradition. Remember he has already convened special study sessions of the politburo onunderstanding both dialectical and historical materialism in the past.According to the conference report: “Xi suggested to not only observe the current internationalsituation, but also review the past, summarise historical laws, and look towards the future tobetter understand the trend of history.” Furthermore, according to the same report in Xinhua,to obtain “an accurate understanding of the overall situation, Xi underlined not only theobservation of detailed phenomena, but also a deep appreciation of the essence of the overall5 of 10situation in order not to get lost in complexity and the changing international situation.”Xi concludes on this count by stating that “throughout human history, the development of theworld has always been the result of contradictions intertwining and interacting with eachother.”Once again, all this will seem more than a little arcane. But in the ideological dialect of theCommunist Party, it seems to mean several things. First, that there is nothing random aboutwhat is unfolding in the world today. Second, these reflect certain immutable laws of politicaland economic development. Third, the business of Chinese foreign policy is to use this dialectalprism to understand precisely what is happening in the world today, why it is happening andwhat to do about it. And fourth, applying these disciplines to the current period, it means thatthe global order is at a turning point with the relative decline of the US and the West, withthis coinciding with the fortuitous national and international circumstances currently enablingChina’s rise.To use Xi’s own language, this: “has been in the best period of development since moderntimes, while the world is undergoing the most profound and unprecedented changes in acentury” adding that “the two aspects are intertwined and interact with each other.” Xi refersto the current period as a period of unprecedented strategic opportunity for China and thecurrent mission of the party. Although this is not itself a new term, Xi says the party’s missionis to extend this period. To do this, he calls for the party to engage in “in-depth analysis ofthe law of how the international situation changes as the world comes into this transitionalperiod, as well as developing an accurate grasp of the basic characteristics of the externalenvironment China is facing at this historical juncture in order to better plan and facilitate thecountry's work on foreign affairs.”In other words, what is being said here is that China now has the wind at its back. Of coursethere are formidable obstacles ahead. But a dialectical analysis of history causes China toconclude that the forces of reaction facing the US and the West are greater. Just as thecontradictions operating domestically within the US and the West (in their particular politicalsystems) are greater as well. Which in turn renders China’s overall domestic and internationalcircumstances much better by comparison in the emerging contest between the two. All ofwhich, again in this view, pushes towards a new historical synthesis more in China’s (andChinese socialism’s) favour.You will all be forgiven if you think this all sounds more like medieval theology than moderninternational relations. And it’s anyone’s guess what any of this actually will have to do withconcrete foreign policy reality. But we often forget that how one-party states, and in particularMarxist states, choose to ‘ideate’ reality actually matters. It’s how the system speaks to itself.It’s the political lingua franca among political and policy elites.And the important thing here is that the message from Xi Jinping to his international policyelite is one of great confidence. Not just because China wills it to be so, but because from aMarxist theoretical perspective, which in their view articulates certain immutable ‘laws’ ofpolitical and economic development, the forces of history are now with China. Furthermore,6 of 10this is a call to greater international policy activism, rather than retrenchment in response tothe rise of Trump. In other words, the conclusion is that the great trends of history, or to usean old Soviet term, the ‘correlation of forces’, are moving China’s way.TOWARDS A SHARPER CHINESE DIPLOMACYA third element of the 2018 Work Conference is its injunction to the country’s internationalpolicy institutions and personnel to get with the Xi Jinping project. Xi seems to have theForeign Ministry in his sights when he says that “the reform of the institutions and mechanismsconcerning foreign affairs is the internal demand of advancing modernisation in the stategovernance system and governance capabilities.” It will be recalled from above that “partybuilding”within the country’s foreign policy institutions will be a core part of that.On personnel, Xi Jinping reminds the nation’s diplomats that they are first and foremost “partycadres.” This has a certain ideological retro to it all. Indeed it’s been a long time since I’veheard Chinese diplomats refer to their seniors as cadres. In fact I’m not sure that over thelast 35 years that I can. To quote the Xinhua report: “Stressing that cadres are the decisivefactor after setting the political course, Xi called for a strong contingent of foreign affairspersonnel that are loyal to the CPC, the country and the people and are politically solid,professionally competent and strongly disciplined in their conduct. He called on foreign affairscadres to enhance their ideals and their training so as to upgrade their competency and overallquality...”Does this presage a new type of Chinese foreign ministry diplomat abroad? Perhaps. It’s longbeen reported that Xi has been frustrated by the performance of parts of his foreign policyestablishment. He sees them proceeding at a glacial pace. Whereas China’s strategicchallenges and opportunities are urgent. Once again, this tends to point in the direction ofgreater foreign policy activism in the future in a system that is struggling to keep up with thepolitical and policy vision of its leader.CHINA LEADING THE REFORM OF GLOBAL GOVERNANCEFourth, the sharpest substantive new development to emerge from the 2018 Foreign PolicyWork Conference is what is says about global governance.In the 2014 Work Conference, Xi referred to an impending struggle for the future structure ofthe international order. He did not elaborate on this back then. But much work has gone onwithin the Chinese system since on three inter-related concepts: the international order (guojizhixu); the international system (guoji xitong), and global governance (quanqiu zhili).Of course, these mean different but overlapping things in English too. Broadly speaking, inChinese, the term “international” or “global” order refers to a combination of the UN, theBretton Woods Institutions, the G20 and other global plurilateral or multilateral institutions onthe one hand; and the US system of global alliances to enforce the US definition ofinternational security on the other. The term “international system” tends to refer to the first7 of 10half of this international order—namely the complex web of multilateral institutions whichoperate under international treaty law and which seek to govern the global commons on thebasis of the principle of shared sovereignty. As for “global governance”, it tends to refer tothe actual performance, for good or for ill, be it effective or ineffective, of the “internationalsystem” so defined.It is deeply significant that at the 2018 Work Conference, Xi Jinping states boldly that a corecomponent of his new ideology of a “diplomacy of socialism with Chinese characteristics”would be for China to: “lead the reform of the global governance system with the concepts offairness and justice.” This is by far the most direct, unqualified and expansive statement onChina’s intentions on this important question we have seen.China, like the rest of the international community, is acutely conscious of the dysfunctionalityof much of the current multilateral system. It also sees the US walking away from much ofthe system as well: from the JCPOA which was agreed to by the UN Security Council; fromthe UN’s Paris Agreement on Climate Change; its withdrawal from the UN Human RightsCommission; its open defiance of the Refugees Convention; and its challenging of theunderlying fabric of the WTO.Nature, as we know, abhors a vacuum. International relations even more so. And we all sawXi Jinping’s riposte to President Trump on climate change and trade at Davos 18 months agojust after President Trump’s election. If China is indeed serious about leading the reform ofglobal governance, its attitude to various of these multilateral institutions will be radicallydifferent to the historical posture of the US. Take for example the Human Rights Council inGeneva, which China would like to see emasculated. Mind you, so too now, apparently, doesthe current US administration!The reference to “China leading the reform of global governance” in this conference is not anaccident. It also reflects a growing Chinese diplomatic activism in a number of UN and BrettonWoods institutions around the world as China begins to seek to recast these institutions, theircultures, their work practices and their personnel in a direction more compatible with China’score national interests. As I have written before, rather than China having to consistentlyresist the pressures of “Westernisation” inherent in the existing laws, institutions and cultureof the current international system, particularly when these prove to be incompatible with theretention of a Marxist-Leninist Chinese state, the resolve of China’s leadership now seems tobe to use its newfound global power to refashion those institutions within the internationalsystem that may be most problematic for China on the home front.As for the principles of fairness and justice that Xi refers to as the core principles that willguide China’s reform of global governance, these terms historically imply China’s preferencefor a more “multipolar” international system in which the unilateral voice of the United Statesis reduced. China has already developed a strong constituency in Africa, parts of Asia andLatin America in support of this. ‘Multipolarity’ in Chinese strategic parlance is code for thedilution of American power in the post-war international system.8 of 10THE CENTRALITY OF CHINESE NATIONAL INTERESTSLest anyone gets too starry-eyed about China’s intentions for reforming global governance, inXi Jinping’s description of the core principles of its new “diplomacy of socialism with Chinesecharacteristics,” Xi concludes his list of ten governing principles with the following: that Chinamust take its “core national interests as the bottom line to safeguard China's sovereignty,security and development interests”.Xi makes plain that China’s foreign policy is unapologetically nationalist. Xi assumes that allother countries’ foreign policies are nationalist as well.Of course, China’s definition of its core national interests has evolved over time. As have othernations. It now includes, for example, the South China Sea. A decade ago, that was not afeature of Chinese official statements defining China’s core interests. Now it is. As for anystate, therefore, the concept of “core national interests” varies over time and will be definedby the government of the day.CONCLUSIONBut we will soon see how the 2018 Central Foreign Policy Conference translates into differentChinese foreign policy behaviours on the ground. If the 2014 Conference is an effective guide,we will see a heightened period of Chinese foreign policy activism. However the precisecontent of that activism remains to be seen. But what we are seeing is the slow, steadyemergence of a more integrated Chinese worldview which links China’s domestic vision withits international vision - and a vision which very much reflects the deep views of China’sparamount leader Xi Jinping.The first policy terrain where we are likely to see this is in the existing institutions of globalgovernance. But it will not be restricted to this area. The text of the report of the 2018 CentralConference on Work Relating to Foreign Affairs suggests that we will also see this acrossChina’s bilateral relations, its engagement with regional institutions, as well as its approach tomajor power relations as well - all of which are likely to be met with an increasingly forthrightChinese diplomacy.The challenge for the rest of the international community is to define what type of futureinternational order, system and governance it wants. And to take China’s invitation seriouslyto engage the Middle Kingdom in a frank and forthright discourse on what the region and theworld precisely want in any future “global community of common destiny”.What does the European Union want? What does ASEAN want? What does the East AsiaSummit want? What does the African Union want? What does the Organization of AmericanStates want? What does the Gulf Cooperation Council want? What exactly does America want,with or without Trump?9 of 10And in this dialogue, how will the values already entrenched in the UN Charter, Bretton Woodsand the Universal Declaration of Human Rights, as well as the founding instruments of variousregional organisations, be preserved for the future?The future of the global order is now in a state of some flux. In part induced by the recentposture of the United States. In part induced by the rise of China. China it seems has a clearscript for the future. It’s time for the rest of the international community to do the same.***10 of 10