Economic aspects of Chinese foreign policy

Abstract

Changes in the People's Republic of China's environment, internal and external, in recent years created the context for the latest Chinese moves in foreign policy; but they were not, of themselves, the sole impetus for Peking's new course. This research attempts to give an analysis of the ideological concepts, the domestic and foreign factors which prompted the People's Republic of China to initiate their recent economic foreign policy which is divided between the cultivation of relations and the provision of aid to the countries of the Third World. In the First Chapter, I emphasized the different factors influencing the Chinese economic foreign policy, particularly the ideological concept of economic development as has been expressed in Chairman Mao Tse-tung's thoughts. After all Mao Tse-tung stands not only as a symbol but as an actual political force in policy-making and domestic affairs. Yet it has to be noted that the overriding consideration governing all Chinese policies in the interim has been the need for political and economic reconstruction and the emphasis on "self-reliance" as the main objective of Chinese ideology particularly after the Sino-Soviet split in the early 1960's. The Chapter sheds light as well on the objectives of China's foreign trade and the principles which govern China's economic and technical assistance to the Third World. All through the research, I will try to trace the conformity of practise with theory and how much China adheres to its announced principles. The second Chapter "The Chinese Economy and its Prospects" is important to the research because the size and direction of the economic aid which China extends to the Third World Countries - which this paper surveys with particular emphasis - depends on China's economic capabilities as well as upon China's assessment of the likely political and economic advantages, putting always in consideration the Chinese national interests and national security. An important relevant issue to be dealt with was the impact of the Sino-Soviet rivalry and the United States containment policy on the Chinese economic foreign policy. Last but not least, considerable attention was given in the Third Chapter to China's role in the Third world. By 1960, Chinese foreign policy inclined towards moderation concerning the world outside, to develop strong relations with countries of Asia, Africa and Europe without regard to the ideological posture of their governments, in order to break China's isolation in the world particularly after their explicit split with the Soviets. The Chinese are trying to set themselves in the Third World, by extending economic and technical assistance, as the unique socialist 'revolutionary model' and supporter of under-developed countries and oppressed peoples of the world revolting against world imperialism. Its main object seems to be to compete with the Soviet Union; yet China is highly selective and has strategic long-term objectives in choice of recipients in order to serve its national interests. I have tried in this study to isolate some major basic aspects of Chinese economic foreign policy, particularly Peking's record of aid to the Third World in the context of its foreign policy goals. My aim is to give an outline of the essentials and in this, I hope I have succeeded.