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Tom Doctoroff

Tom Doctoroff

Posted: November 28, 2010 05:07 PM

China's recent passive-aggressive behavior on the world stage is unfortunate but not unexpected. President Obama is handling the PRC's non-collaboration with great skill and savvy. He realizes the Middle Kingdom's ancient cultural imperatives and contemporary geo-political objectives dictate a balance of caution and steely firmness. If he stays the course, push-me-pull-you tension between China and the West will continue. But strains will not erupt into full-blown crisis.

Global Engagement, Timeless Truths

China's engagement with the world is driven by three truths. First, calls for "constructive engagement" will yield little if ties are perceived to violate Chinese interests. Despite the "One World, One Dream" sloganeering at the Beijing Olympics, warm and fuzzy notions of international brotherhood mean nothing. Issues must be framed and resolved pragmatically, as win-win opportunities. Everything -- everything-- in the PRC is a means to an end. And the most important end in China is continued economic growth, the lynchpin of both domestic "harmony" and global respect.

Second, in the Middle Kingdom, "stability" is sublime. Gradualism, often imperceptible, is golden. The central government believes there are two great dangers lurking on the landscape. They are: a) unemployment or inflation triggered by abrupt shifts in macro-economic policy (e.g., sudden currency appreciation) and b) perceptions of affronts to Chinese territorial sovereignty -- i.e., "unity" -- a sacred moral absolute. If the West pursues confrontation, it will trigger a deeply-rooted anxiety of centrifugal disintegration, and the sky will fall. If not, China will continue to behave in a "ruthlessly incremental" manner. It will, with empirical precision, test the limits of new-found economic prestige. But it will not upset the apple cart. (China has never been an "expansionist" power. Even at the zenith of imperial clout, it controlled pan-Asian trade through economic "tributaries," not military conquest.)

Third, and fortunately, China knows its ascent will not continue without Western complicity. No matter how successful the central government is in rebalancing the economy toward domestic consumption, exports to Western markets, which have fueled more than 60% of economic expansion since 1990, will determine growth rates for decades to come. Even the military acknowledges armed conflict with the United States would strike a fatal blow to China's "peaceful rise." Importantly, China has always productively engaged with other societies -- from Indian Buddhism to American capital markets, absorbing new influences and applying them in Chinese contexts. After the Great Leap Backwards -- thirty years of economic and social disaster triggered by post-Liberation isolation -- it knows walls, at least outside cyberspace, are counterproductive. As one street smart sixty-year-old confided, "We're afraid of not having any friends." In China, there is no desire, even amongst reactionary military factions, to become divorced from global forces of progress.

China's 21st Century Anxiety

The government's intractability on a number of issues -- opacity on currency reform; reversion to platitudes of six-party "talks" after recent North Korean military provocation; hysterical reaction to Hillary Clinton's assertion of American interest in the South China sea; castigation of countries attending Liu Xiaobo's Nobel peace prize ceremony; turning a blind eye to both Sudanese sponsorship of genocide in Darfur and Iran's nuclear weapons program; over-the-top grand standing after America's weapon sales to Taiwan -- can all be understood in the context of China's timeless protective, don't-rock-my-boat modus operandi.

Twenty-first century phenomena also reinforce traditional "go slow" obstinacy. The country stands on an unfamiliar threshold of super power status but has not figured out how to apply its weight. China knows it is not in a position to supplant the United States, a society rooted in a vastly different world view, in terms of hegemonic or cultural influence. Furthermore, the expansion of an economically-vested Chinese middle class and "petite bourgeoisie" challenges social cohesion, ensuring continued focus on domestic issues. These stresses militate against diplomatic adventurism; the country will neither attempt overt power grabs nor be reborn as an Angel of Multilateralism. Yes, there will be competition for natural resources but, assuming cool heads prevail, China will not require "containment."


How to Deal With an Insecure PRC

Still, China will not receive high marks in global citizenship for some time to come. What can be done now to minimize the bombast of a newly-assertive, but still insecure, Middle Kingdom?

With the Chinese regarding the gain and loss of face as the currency of forward advancement, only the most naive can regard public hectoring to be an antidote to Middle Kingdom stubbornness. But neither should we accept the Peoples Republic's awkward attempts to impose its will on neighbors or cut its way to the front of lines.

Barack Obama's Asia strategy is perfect pitch. From Japan to Vietnam and Singapore to India, he is strengthening relationships with China's neighbors, building or rebuilding partnerships with powers that crave American presence in the region. (The call for India to join the United Nation's Security Council was a masterstroke.) He is adopting a stronger, clearer line with the Chinese on issues ranging from human rights to currency appreciation, sending unambiguous signals that the West will not be intimidated by Chinese swagger. (After recent North Korean bellicosity, the U.S. deployed an aircraft carrier to waters the Communist Party erroneously claims are within Chinese territory. This was the right thing to do.)

At the same time, he is not "encircling" China. He voices respect for Chinese aspirations and views its success as fundamental to 21st century prosperity. He has driven the creation of the G20, a much more representative economic forum than the G8, and has actively supported increasing emerging market voting power at the International Monetary Fund.

The American president is projecting pragmatic steeliness. The Chinese respect this. They know Obama is no fool. As one senior leader of a state-owned enterprise said to me, "I used to think he was nice. Then I realized he was intelligent. Now I know he's shrewd, just like Hu Jintao. Your leader is a strategist." Their guarded respect for his tactical acumen will be another counter-balance to Chinese anxious self-protection.

Predictions.

Will his approach work? A lot depends on the rationalism of future leaders. Xi Jinping, Hu Jintao's heir apparent, has a reputation as a man with whom we can do business. Still, given the China's gradualist impulse, "breakthroughs" will be far and few in between. Propaganda organs will never acknowledge Liu Xiaobo's Nobel achievement. China will never "scold" Iran. But progress is possible. The Yuan will appreciate but, by Western standards, at interminably slow pace, perhaps over a two-year time frame. China will further isolate North Korea if, and only if, North Korean belligerence poses an immediate threat to regional stability. If America avoids military provocation, territorial disputes in the South China Sea will not disrupt international sea lanes.

If, in the words of Teddy Roosevelt, the American people and our politicians are wise enough to "speak softly and carry a big stick," the world will be a more stable place and China will be a more accountable, more noble, global competitor.

 
China's recent passive-aggressive behavior on the world stage is unfortunate but not unexpected. President Obama is handling the PRC's non-collaboration with great skill and savvy. He realizes the ...
China's recent passive-aggressive behavior on the world stage is unfortunate but not unexpected. President Obama is handling the PRC's non-collaboration with great skill and savvy. He realizes the ...
 
 
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07:21 AM on 11/30/2010
How do you tell the banker who owned your house what to do?
08:21 PM on 11/30/2010
because your his only client.
08:28 PM on 11/30/2010
for every 1 dollar China "owns", U.S. consumers send $5 back in buying goods - they are both joined at the hip and until China gains another huge market for its goods it will not jeopardize the source of its growth.
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ideasmatter
Knowledge is free
11:04 PM on 11/29/2010
The bottom line is that the US has zero influence on China, whether by carrot or stick Unless of course we'd be willing to use trade policy as weapon, which this administration won't and neither would a GOP President. So meanwhile we just keep subsidizing China's military expansion through gigantic trade deficits. Brilliant strategy that is.
10:48 PM on 11/29/2010
Some would rather look at the President as weak and ineffectual. They have been against the President since he didn't go all out for the public option . From that time forward their game has been to bash the President. He's just not good enough or smart enough.
02:04 AM on 11/30/2010
Lol, Obama gave us a mandate to buy a corporation's product with subsidies (paid for by taxes which means we are subsidizing it) and with no cost controls.

What I am upset about is that Democrats watch the recession take millions of jobs, they watched Microsoft and other tech companies lay off millions...but they allowed H-1B work visas to continue! Companies are laying off and yet our government still allows corporations to IMPORT labor into the US as these same corporations lay off Americans. Since H-1B was started wages have been stagnant. And the Democrats fully support H-1b...its great for profits.

And that seems to be the only thing Democrats care about. They see workers being able to negotiate a wage increase as a threat to profits and Democrats favor corporate profits over workers.
That is why some of us are upset with Obama. He hates American workers.

Even his bailout of GM was designed to hurt American workers. GM now has more workers in communist China than in the US. If you really wanted to help American workers then you would let GM collapse and instead help Tesla or other company that is dedicated to America grow to fill the void. GM is dedicated to offshoring. And once GM gets its car production in China ready it will import those Chinese cars into the US and shut down most of the remaining US factories. All because the Democrats bailed the out!
01:14 PM on 11/30/2010
Would the Republicans or the Tea Partyers be any better?

All crows are black. Pols DO NOT care about workers. They care about their constituents - the paying kind.
06:21 AM on 11/30/2010
The American retailers are shortsighted and greedy for stock primarily imports on their shelves.

American consumers are the ones who are not good enough or smart enough. The US has plenty of potential leverage. We just can find the lever. Talk is cheap. Money is not.
09:47 PM on 11/29/2010
I wish the author was right.
09:42 PM on 11/29/2010
That's "diplomatic" not "diplomatice." Sorry about that!
09:41 PM on 11/29/2010
Excellent post!! President Obama's not perfect, but he's no dummy and for that I am thankful.To Wainiha, please note the following: to "militate against" ( use of the preposition is key) means to "work against", which makes sense, if one rereads the sentence in the article above. ("These stresses militate against diplomatice adventurism...") "To mitigate" means "to moderate or to make less severe." Also, the expression "few and far between," correct as used, means "scarce" or "rare." (See Webster's New World Dictionary)
02:09 AM on 11/30/2010
One thing is certainly to result from Obama's policies. Wages will continue to fall and profits will rise. Obama's policies have enriched Wall Street off the backs of American workers. Record profits at the banks that were bailed out!

The best part of Obama's policies has been watching Microsoft continue to use H-1B work visas to import foreign workers into the US even as Microsoft laid off thousands! Wages have been stagnant and promotions are on hold and yet we still claim there is a "critical labor shortage". Its awesome for corporate profits and for raises for the executives (which they just gave themselves).
09:13 PM on 11/29/2010
"I used to think he was nice. Then I realized he was intelligent. Now I know he's shrewd, just like Hu Jintao. Your leader is a strategist."

In other words: we used to think Obama was benign; now we don't trust him.

Wise of the Chinese to notice the obvious.

The rest of the article sounds like it was written by Pollyanna.
Pauline Jaing
Artist, worker, mother
08:06 PM on 11/29/2010
I think this article is sad.

It is my belief that the people of the region see the US as a trouble maker -- and one of the reasons they dislike us is because we have created wars on their ground. While we send only our unemployed youth there to die, they die by the millions when we show up, e.g. like in Korea and Vietnam.

Of course, we always say, "better to fight them there than here," never imagining for one second how that plays "there".

If things ever get really serious, this will all come into play.
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HUFFPOST SUPER USER
chlai88
Change is the only constant
07:34 PM on 11/29/2010
A very rare pragmatic article that shows understanding of the current US-China relationship and China's intentions. Regard & respect for those who "speak softly and carry a big stick" is imprinted in the Chinese gene. Obama, maybe bcos of his Asian influence, is probably the rare US leader the Chinese can relate to and respect.
07:02 PM on 11/29/2010
I'm not sure I would describe obama's china policy as standing up. It looks more like bending over...
06:31 PM on 11/29/2010
A fascinating article. If the GOP truly believes in American exceptionalism, then they would at least "try" working with our shrewed, strategic thinking president to further expand and strengthen this so-called exceptionalism.
dessertsfirst
because life is too short!!
06:14 PM on 11/29/2010
Mr. Doctoroff, thank you for your excellent piece. We need more of this so as to understand international nuances,

As I read it, I was thinking: Gasp!! You mean our President knows what he is doing?? A great change from the bluster and false bravado by the shrub. I kept looking for the change we voted for... that we could believe in.... perhaps this is it!
04:17 PM on 11/29/2010
Excellent article.
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dsws
No owning ideas. Limit only commercial use.
04:08 PM on 11/29/2010
Generally, I agree for the most part. China does not need to be contained, and Obama conveys the impression of a strategist they can do business with.

"in the Middle Kingdom, "stability" is sublime"

Unrest suggests that you may have lost the Mandate of Heaven. Similar strains of western thought have similar implications.

"reversion to platitudes of six-party "talks" after recent North Korean military provocation"

What's the problem? If I understand diplomat-speak correctly (and of course it's entirely possible I don't, given that a major purpose of the dialect is to let misunderstandings muddle along instead of erupting), they sent us an engraved invitation to have our aircraft carrier group sail into what they think of as their territorial waters. Basically, it's a message to North Korea that if they push it too far, China is willing to sit on the sidelines and have the US slap them down. That's not how you behave toward a real ally, but China is only a nominal ally of North Korea.
03:01 PM on 11/29/2010
Fascinating and informative article, Mr. Doctoroff. Not surprising that President Obama is dealing with the complexities with an awareness of the intricacies of Chinese history and temperament. That's the value of having a really smart, educated, subtle person in charge.