China Good Neighbour Policy Case Study
Evaluate the effectiveness of China's ‘Good Neighbour Policy’ in improving bilateral relations in Asia.
China has developed and implemented the ‘Good Neighbour Policy’ with its neighbours in an attempt to establish a peaceful environment in which China could prosper economically. The good neighbour policy is a comprehensive approach to pursuing better relations with neighbouring states in the Asian and the Pacific regions. With China’s rise in its economy and military modernisation, a major challenge would be to ensure the world that it was of a peaceful rise, not of intimidation or force.
There are mixed views on the policies undertaken by China, with analysis being split along two lines. One school of thought focuses mainly on the failure …show more content…
Firstly, “China won substantial favour from ASEAN by signing the Declaration on the Conduct of Parties in the South China Sea…earned more goodwill by acceding to the ASEAN TAC (Treaty of Amity and Cooperation) .” It is striking and remarkable that China was one of the first two states outside Southeast Asia to sign the ASEAN TAC, indicating that China has close political ties with Asean. In the year 2003 and 2004, China signed the “ASEAN-China Strategic Partnership for Peace and Prosperity ,” and adopted a Five Year Plan of Action from 2011-2015 to deepen and support the establishment of the partnership . Under this, China pledged to cooperate with ASEAN in Political-Security, Economic, Functional, Multilateral Forums, Funding, and Institutional arrangements. This greatly enhances China’s bilateral relationship with ASEAN because this not only contributed towards confidence-building, trust and collaboration between China and ASEAN but also cemented ASEAN’s view of China as a regional …show more content…
The purpose of this was mainly to overcome ASEAN nation’s initial fears of China’s economic dominance, notably over China’s hogging of FDI from ASEAN. This initial pessimism is corroborated by Glosny, who asserts that “....most studies show a clear trend of investment diversification from ASEAN to China... ” Moving quickly to address these concerns, China actively sought to increase investments in ASEAN China’s efforts to ramp up OFDI into ASEAN has resulted in Chinese OFDI to increase tremendously from US$0.12 billion to $5.9 billion between 2003 and 2011, or 4.1 to 7.9% of China’s total OFDI .
This is clearly indicated in Figure 3, which highlights Chinese OFDI stocks have rising rapidly since 2003.
Figure 2: China’s OFDI Stocks in ASEAN, 2003-2008, by order of magnitude in 2008. ($US Millions) Note. Adapted from “China’s FDI in ASEAN: Trends and impact on host countries,” Julia Kubny and Hinrich Voss
China has developed and implemented the ‘Good Neighbour Policy’ with its neighbours in an attempt to establish a peaceful environment in which China could prosper economically. The good neighbour policy is a comprehensive approach to pursuing better relations with neighbouring states in the Asian and the Pacific regions. With China’s rise in its economy and military modernisation, a major challenge would be to ensure the world that it was of a peaceful rise, not of intimidation or force.
There are mixed views on the policies undertaken by China, with analysis being split along two lines. One school of thought focuses mainly on the failure …show more content…
Firstly, “China won substantial favour from ASEAN by signing the Declaration on the Conduct of Parties in the South China Sea…earned more goodwill by acceding to the ASEAN TAC (Treaty of Amity and Cooperation) .” It is striking and remarkable that China was one of the first two states outside Southeast Asia to sign the ASEAN TAC, indicating that China has close political ties with Asean. In the year 2003 and 2004, China signed the “ASEAN-China Strategic Partnership for Peace and Prosperity ,” and adopted a Five Year Plan of Action from 2011-2015 to deepen and support the establishment of the partnership . Under this, China pledged to cooperate with ASEAN in Political-Security, Economic, Functional, Multilateral Forums, Funding, and Institutional arrangements. This greatly enhances China’s bilateral relationship with ASEAN because this not only contributed towards confidence-building, trust and collaboration between China and ASEAN but also cemented ASEAN’s view of China as a regional …show more content…
The purpose of this was mainly to overcome ASEAN nation’s initial fears of China’s economic dominance, notably over China’s hogging of FDI from ASEAN. This initial pessimism is corroborated by Glosny, who asserts that “....most studies show a clear trend of investment diversification from ASEAN to China... ” Moving quickly to address these concerns, China actively sought to increase investments in ASEAN China’s efforts to ramp up OFDI into ASEAN has resulted in Chinese OFDI to increase tremendously from US$0.12 billion to $5.9 billion between 2003 and 2011, or 4.1 to 7.9% of China’s total OFDI .
This is clearly indicated in Figure 3, which highlights Chinese OFDI stocks have rising rapidly since 2003.
Figure 2: China’s OFDI Stocks in ASEAN, 2003-2008, by order of magnitude in 2008. ($US Millions) Note. Adapted from “China’s FDI in ASEAN: Trends and impact on host countries,” Julia Kubny and Hinrich Voss