Broad National Agendas and a two-Level Game



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VIII. Conclusion

Since 1978, China’s foremost national goal has been to develop its economy through its reform and opening policy emphasizing domestic stability and a conducive international environment. Domestic stability is a very important factor not only for the development of China’s economy but also for attracting foreign investment. In addition, a peaceful and stable international environment is also necessary to develop the economy, attract foreign investment, and facilitate international trade. Moreover, China needs to show its prudence and willingness to cooperate within the international system in order to attract foreign investors as well as maintain a peaceful and stable international political and economic environment.

The four case studies in this chapter have significantly confirmed China’s broad national agendas as described above. In each case, Beijing tried to minimize the impact of surging nationalism on its overall economic development and domestic stability. Moreover, Beijing has adopted a low profile in elaborating its sovereignty claims and has avoided direct military confrontation over disputed territories, including Taiwan. Even when facing other countries’ aggressive claims and actions in disputed territories by Japan and the Philippines from Chinese perspective and the resulting nationalism among Chinese people, Beijing never went beyond rhetorical and limited military posturing.

Far from fanning nationalism, Beijing tried to minimize public overreaction. Beijing banned demonstrations and protests in the cases of the Senkaku/Diaoyu Island and Taiwan, and only allowed “controlled” demonstrations and protests followed by calls to focus on economic development, as was the case after the embassy bombing. In the case of the South China Sea Islands, Beijing’s action was mostly defensive compared with that of the Philippines and Vietnam. Beijing did not adopt any concrete action against the Philippines and Vietnam when they destroyed Chinese structures on Mischief Reef and dismantled Chinese markers in many atolls. In addition, the Philippines arrested hundreds of Chinese fishermen near the disputed islands claimed by both sides while China refrained from enforcing its own law banning unauthorized passage through the Spratlys by foreign military vessels and fishing boats. Beijing consistently emphasized the importance of maintaining peace and stability in the region through shelving sovereignty disputes and joint development and without resorting to force or the threat of force.

An American studies senior scholar in Beijing explained China’s position in this way, “The fundamental goals of Chinese foreign policy are to sustain long-term development, peace, and stable international environment. China needs not only an international environment conducive to development, but also requires no distractions from economic development. Therefore, China does not want to antagonize other countries. For example, in the case of the Diaoyu Islands, China was very self-restrained. In addition, Beijing would not allow students to protest against the South China Sea or the Sino-Indian border issues.”99 Another American studies senior scholar in Beijing emphasized, “Economic development is the core of Chinese foreign policy. All diplomatic lines are conducted along with peace and development.”100 An international relations senior scholar in Beijing also agreed, “The Mainland attaches great importance to economic development and modernization in considering its foreign policy.”101

Regarding the sharp contrast between Beijing’s rhetoric assertiveness and actual prudence, a Taiwan studies senior scholar in Beijing frankly stated, “The most important priority for China is economics. It is fraud that China puts politics as its first priority. Beijing needs to consider people’s living standards and welfare. This is a prevailing consensus among the public and elite. Beijing should have acted stronger against the U.S., Japan, and Taiwan, but Beijing had economic interests in mind. Beijing still puts economy as the first priority, including when considering whether to use force against Taiwan.”102



China’s broad national agendas provide us an overall picture and value system to assess China’s Taiwan policy in proceeding chapters. In particular, the two-level game103 framework helps illuminate China’s complicated calculation and decision-making regarding its foreign policy as well as Taiwan policy as discussed above. Theories on the initiation of economic sanctions discussed in Chapter 4 also suggest a two-level framework to analyze China’s economic leverage. Chapters 7 through 10 will further analyze China’s consideration of both internal and external stakes in the cross-Strait economic relations in the framework of a two-level game.

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2 “Jiang: The Supreme Interest of China Is Peace and Nation-Building,” Washington Post, October 19, 1997, p. A22.

3 David M. Lampton, Same Bed, Different Dreams: Managing U.S.-China Relations, 1989-2000 (Berkeley: University of California Press, 2001), p. 8.

4 Deng Xiaoping, “We Shall Concentrate on Economic Development,” in Selected Works of Deng Xiaoping, vol. III (1982-1992), translated by the Bureau for the Compilation and Translation of Works of Marx, Engels, Lenin and Stalin under the Central Committee of the Communist Party of China (Beijing: Foreign Languages Press, 1994), pp. 21-22.

5 Liang Zhang (comp.), Andrew J. Nathan and Perry Link (eds.), The Tiananmen Papers (New York: Public Affairs, 2001), p. 218.

6 Liang Zhang (comp.), Andrew J. Nathan and Perry Link (eds.), The Tiananmen Papers (New York: Public Affairs, 2001), pp. 134, 192.

7 A senior official in Beijing, interview with author, August 2, 2001.

8 An international relations senior scholar in Beijing, interview with author, July 11, 2001. Two international relations scholars in Shanghai, interview with author, July 4, 2001.

9 An international relations senior fellow in Shanghai, interview with author, June 15, 2001. An international relations senior scholar in Shanghai, interview with author, June 21, 2001.

10 An international relations senior scholar in Beijing, interview with author, July 17, 2001.

11 A Taiwan studies senior scholar in Beijing, interview with author, July 29, 2001.

12 An international relations scholar in Beijing, interview with author, July 10, 2001.

13 An international relations scholar in Beijing, interview with author, July 10, 2001.

14 A Taiwan studies senior scholar in Shanghai, interview with author, June 25, 2001.

15 Liang Zhang (comp.), Andrew J. Nathan and Perry Link (eds.), The Tiananmen Papers (New York: Public Affairs, 2001), pp. 311, 360-361.

16 Benjamin Yang, Deng: A Political Biography (Armonk, N.Y.: M. E. Sharpe, 1997), p. 257.

17 “ ‘Main Points’ of Deng Xiaoping’s Talks” (in Chinese), Beijing Xinhua Domestic Service, November 5, 1993, in FBIS-CHI-93-214, pp. 21-26.

18 A Taiwan studies senior scholar in Shanghai, interview with author, July 3, 2001. An international relations senior scholar in Shanghai, interview with author, June 21, 2001.

19 A scholar in Shanghai, conversation with author, July 2, 2001.

20 “China: Comparison: Jiang’s Political Report” (in Chinese), Beijing Xinhua Domestic Service, September 21, 1997, in FBIS-CHI-97-264.

21 “Chinese President’s Speech to Mark 20 Years of Reform - Third and Final Part,” British Broadcasting Corporation, BBC Monitoring Asia Pacific – Political, December 18, 1998.

22 “China: Full Text of Premier’s Report to NPC on 10th Five-Year Plan” (in Chinese), China Central TV, March 5, 2001, in BBC Monitoring Asia Pacific – Political, March 5, 2001.

23 Deng Xiaoping, Selected Works of Deng Xiaoping (1982-1992), vol. 3, translated by the Bureau of the Compilation and Translation of Works of Marx, Engels, Lenin and Stalin (Beijing: Foreign Languages Press, 1994), p. 279.

24 Liang Zhang (comp.), Andrew J. Nathan and Perry Link (eds.), The Tiananmen Papers (New York: Public Affairs, 2001), p. 148.

25 “Chinese President’s Speech to Mark 20 Years of Reform - Third and Final Part,” British Broadcasting Corporation, BBC Monitoring Asia Pacific – Political, December 18, 1998.

26 “Chinese President Says Hong Kong to Deal With Falungong on Its Own,” Agence France Presse, March 6, 2001.

27 Deng Xiaoping, Selected Works of Deng Xiaoping (1982-1992), vol. 3, translated by the Bureau of the Compilation and Translation of Works of Marx, Engels, Lenin and Stalin (Beijing: Foreign Languages Press, 1994), p. 277.

28 Erik Eckholm, “Clinton in China: News Analysis,” New York Times, June 28, 1998, p. 1.

29 An international relations scholar in Beijing, conversation with author, August 13, 2001.

30 An international relations senior scholar in Beijing, interview with author, July 11, 2001.

31 Deng Xiaoping, Selected Works of Deng Xiaoping (1982-1992), vol. 3, translated by the Bureau of the Compilation and Translation of Works of Marx, Engels, Lenin and Stalin (Beijing: Foreign Languages Press, 1994), p. 291.

32 “China’s Position on Asia-Pacific Security,” Beijing Review, August 8-14, 1994, p. 22.

33 “Governmental Work Report for the 8th National People’s Congress,” Renmin Ribao [People’s daily] (Overseas edition), March 17, 1997, p. 2.

34 “Jiang: The Supreme Interest of China Is Peace and Nation-Building,” Washington Post, October 19, 1997, p. A22.

35 “President Makes Speech on Diplomacy” (in Chinese), Xinhua Domestic Service Beijing, August 28, 1998, in BBC Summary of World Broadcasts, September 1, 1998, FE/D3320/G.

36 Harry Harding, “China’s Co-operative Behaviour,” in Thomas W. Robinson and David Shambaugh (eds.), Chinese Foreign Policy: Theory and Practice (New York: Oxford University Press, 1997), pp. 375-376. Barry Naughton, “The Foreign Policy Implications of China’s Economic Development Strategy,” in Thomas W. Robinson and David Shambaugh (eds.), Chinese Foreign Policy: Theory and Practice (New York: Oxford University Press, 1997), pp. 65-66.

37 H. Lyman Miller, and Liu Xiaohong, “The Foreign Policy Outlook of China’s ‘Third Generation’ Elite,” in David M. Lampton (ed.), The Making of Chinese Foreign and Security Policy in the Era of Reform (Stanford, CA: Stanford University Press, 2001), p. 141. Jiang Zemin, “Text of Speech by Jiang Zemin at Opening Banquet for the Fortune' Global Forum, 2001, in Hong Kong” (in Chinese), Beijing Xinhua Domestic Service, May 8, 2001, in FBIS-CHI-2001-0508.

38 “Facts About Disputed Diaoyutai/Senkaku Islands,” Deutsche-Agentur, September 21, 1996, 14:07 Central European Time.

39 “China Blasts Ikeda’s Remarks on Senkaku Islands,” Japanese Economic Newswire, August 29, 1996.

40 “Civilian Group Demanded Troops Be Sent to Diaoyutai Island,” Agence France Presse, September 1, 1996, 01:11 GMT. Andy Ho, “China Reluctant to Back Patriotic Cause,” South China Morning Post, September 10, 1996, p. 19. Graham Hutchings, “Hong Kong Backs Beijing in Islands Row With Japan,” Daily Telegraph, September 9, 1996, p. 13. Lo Ping, “Army, Civilians Call Jiang Zemin to Account” (in Chinese), Hong Kong Cheng Ming, October 1, 1996, no. 228, pp. 6-8, in FBIS-CHI-96-213.

41 Lo Ping, “Army, Civilians Call Jiang Zemin to Account” (in Chinese), Hong Kong Cheng Ming, October 1, 1996, no. 228, pp. 6-8, in FBIS-CHI-96-213. Nicholas D. Kristof, “An Asian Mini-Tempest Over Mini-Island Group,” New York Times, September 16, 1996, p. A8. “Thousands March to Protest Japan Claims to Disputed Islands,” Deutsche Presse-Agentur, September 15, 1996, 17:25 Central European Time.

42 On the night of September 18, 1931, Japanese troops used the pretext of an explosion along the Japanese-controlled South Manchurian Railway to occupy Shenyang City. This incident was followed by the Japanese invasion of all of Manchuria and the establishment of the Japanese-dominated state of the Manchukuo in the area.

43 “Beijing Treads Warily on Island Issue,” South China Morning Post, September 7, 1996, p. 3. Andy Ho, “China Reluctant to Back Patriotic Cause,” South China Morning Post, September 10, 1996, p. 19. Lo Ping, “Army, Civilians Call Jiang Zemin to Account” (in Chinese), Hong Kong Cheng Ming, October 1, 1996, no. 228, pp. 6-8, in FBIS-CHI-96-213. Wang Ling, “Voice of Protecting Diaoyu Islands Dies Down in Beijing on Eve of ‘18th September’, Fudan Students Send Letters of Protest Instead of Holding Sit-In” (in Chinese), Hong Kong Ming Pao, September 18, 1996, p. A9, in BBC Summary of World Broadcasts, September 19, 1996, FE/D2721/G.

44 “Beijing Warns Diaoyu Activists,” South China Morning Post, September 13, 1996, p. 1. Maggie Farley and Rone Tempest, “Japan Blocks Flotilla Claiming Islands for China,” Los Angeles Times, September 24, 1996, p. A6.

45 Lo Ping, “Army, Civilians Call Jiang Zemin to Account” (in Chinese), Hong Kong Cheng Ming, October 1, 1996, no. 228, pp. 6-8, in FBIS-CHI-96-213. Willy Wo-lap Lam, “’Sacrifice’ Mourned by Students,” South China Morning Post, September 28, 1996, p. 4. Chin-yi Lin, “State Education Commission Sends a Message to Institutions of Higher Education Nationwide Warning Them Against Too-Drastic Words and Deeds” (in Chinese), Hong Kong Ming Pao, September 17, 1996, p. A4, in BBC Summary of World Broadcasts, September 18, 1996, FE/D2720/G.

46 “China Cautions H.K., Taiwan on Disputed Islands Issue,” Japan Economic Newswire, September 17, 1996.

47 “China Rift Is Raising Doubts About Hashimoto Diplomacy,” Asahi News Service, September 26, 1996.

48 Edward A. Gargan, “Man Drown During a Protest Over Asian Islets,” New York Times, September 27, 1996, p. A8.

49 “Taiwan, Hong Kong Activists Head Home After Failing to Land on Islands,” Kyodo News Service, May 26, 1997, in BBC Summary of World Broadcasts, May 27, 1997. “H.K. Isles Activists Abandon Damaged Protest Ship,” Japan Economic Newswire, June 24, 1998. NG Kang-Chung, “Scuffles Break Out As Policy Try to Bar Protesters From PLA Barracks,” South China Morning Post, August 2, 1999, p. 3. “PRC FM Spokesman on ‘Shrine’ Set Up on Diaoyu Islands” (in Chinese), Beijing Xinhua Domestic Service, April 29, 2000, in FBIS-CHI-2000-0429. “Hong Kong Protestors Demonstrate Against Japan’s Claims on Diaoyus,” Agence France Presse, May 2, 2000.

50 “FM Spokesman on Diaoyu Island Issue,” Xinhua News Agency, June 25, 1998.

51 Mei Cheng, “Japan Will Review Its Policy of Financial Aid to China,” Gongshang Shibao [Commerce Times], May 11, 2000. Mainland Affairs Council (ed.), Cross-Strait Economic Statistics Monthly, no. 56 (April 1997).

52 An international relations senior scholar in Beijing, interview with author, July 17, 2001.

53 An international relations senior scholar in Beijing, interview with author, August 2, 2001.

54 “China Warns Manila Over Spratlys,” Agence France Presse, March 25, 1995, 22:33 Eastern Time. “70 Chinese Seafarers Detained in the Philippines,” Agence France Presse, March 27, 1995, 09:56 Eastern Time. Hurng-yu Chen, “The PRC’s South China Sea Policy and Strategies of Occupation in the Paracel and Spratly Islands,” Issues & Studies, vol. 36, no. 4 (July/August 2000), pp. 105-113.

55 Chien-peng Chung, “The Spratlys and Other South China Seas Islands Disputes,” Journal of Social, Political & Economic Studies, Spring 1999, pp. 17-36. Hurng-yu Chen, “The PRC’s South China Sea Policy and Strategies of Occupation in the Paracel and Spratly Islands,” Issues & Studies, vol. 36, no. 4 (July/August 2000), pp. 108-113.

56 Chien-peng Chung, “The Spratlys and Other South China Seas Islands Disputes,” Journal of Social, Political & Economic Studies, Spring 1999, pp. 17-36. “China Completes Structure on Disputed Spratlys Reef: Philippines,” Agence France Presse, January 5, 1999, 08:38 GMT. “Two More Chinese Structures Sighted in South China Seas Outcrop: Philippines,” Agence France Presse, March 5, 1999, 08:47 GMT.

57 “China Abandoned Structure on Disputed Island,” Washington Post, May 4, 1997, p. A23. “World in Brief/Philippines,” Los Angeles Times, November 30, 1998, p. A14.

58 Hurng-yu Chen, “The PRC’s South China Sea Policy and Strategies of Occupation in the Paracel and Spratly Islands,” Issues & Studies, vol. 36, no. 4 (July/August 2000), pp. 105-115. “Philippine Military, Chinese Fishing Boats in South China Sea Standoff,” Agence France Presse, January 31, 2001. Nirmal Ghosh, “Philippine Navy Arrests 21 Chinese,” Strait Times (Singapore), May 28, 1997, p. 15. “Chinese Fishermen Freed in Philippines, Agence France Presse, July 16, 1997, 16:12 GMT. “Philippine Navy Arrests 22 Chinese Fishermen,” Japan Economic Newswire, January 20, 1998. “China Demands Release of 29 Chinese Fishermen,” Japan Economic Newswire, March 18, 1998. “China – Sovereignty Violated Ramming of Boat Hurts Ties,” China Daily, May 26, 1999. Martin Abbugao, “Chinese Fishing Boat Sunk in Collision with Philippine Navy Vessel,” Agence France Presse, July 20, 1999, 09:13 GMT. “Chinese Boats Boarded, Driven Away by Philippines Navy,” Agence France Presse, January 27, 2000. “AFP: Philippine Navy Says 10 Chinese Boats Repelled From Disputed Shoal,” Hong Kong AFP, March 18, 2001, in FBIS-CHI-2001-0318.

59 “No Punishment for Philippine Navy After Chinese Fishermen Collision,” Agence France Presse, May 26, 1999, 12:03 GMT. “Philippines, China Renew War of Words Over South China Sea Dispute,” Agence France Presse, January 27, 2000. “China Makes Representations Over South China Sea Dispute,” Agence France Presse, February 6, 2001. “China Calls on Philippines to ‘Show Real Respect’ for Sovereignty” (in Chinese), Xinhua News Agency Domestic Service, February 6, 2001, in BBC Summary of World Broadcasts, February 8, 2001, FE/D4065/G.

60 Hurng-yu Chen, “The PRC’s South China Sea Policy and Strategies of Occupation in the Paracel and Spratly Islands,” Issues & Studies, vol. 36, no. 4 (July/August 2000), pp. 120-121. Hsin-Chih Chen, “ASEAN Member States’ Attitudes and Responses Toward the ‘China Threat Theory’,” Wenti yu Yanjiou [Issues & Studies], vol. 35, no. 11 (November 1996), pp. 24-29. Michael D. Swaine, China: Domestic Change and Foreign Policy (Santa Monica, CA : Rand, 1995), p. 92. “Drawn to the Fray,” Far Eastern Economic Review, April 3, 1997, pp. 14-16. Flex K. Chang, “Chinese Energy and Asian Security,” Orbis, vol. 45, no. 2 (Spring 2001), p. 211.

61 Hurng-yu Chen, “The PRC’s South China Sea Policy and Strategies of Occupation in the Paracel and Spratly Islands,” Issues & Studies, vol. 36, no. 4 (July/August 2000), pp. 121-122. “FM Spokesman Reiterates Stance on Nansha Islands,” Xinhua News Agency, March 30, 1999. Anthony Kuhn, “China Says Philippines Ramping Up Spratlys Rift,” Los Angeles Times, April 1, 1999, p. A13. “Chinese Foreign Ministry Says Nansha Islands Sovereignty Indisputable,” Xinhua News Agency, May 20, 1999. “Chinese Defense Minister Reiterates China’s Stand on South China Sea Issue,” Xinhua News Agency, September 15, 1999. “China Agrees to Negotiate for Spratlys ‘Code of Conduct’,” Deutsche Presse-Agentur, November 25, 1999, 12:37 Central European Time. Jamie Tarabay, “China Makes Proposal in South China Sea Dispute,” Associated Press, November 29, 1999. “China Calls for Ban on Military Exercises in S. China Sea,” Japan Economic Newswire, March 15, 2000.

62 In 1988 Chinese military forces took six Spratly atolls and sank three Vietnamese ships in the process. Several smaller exchanges of fire followed in subsequent years. Hurng-yu Chen, “The PRC’s South China Sea Policy and Strategies of Occupation in the Paracel and Spratly Islands,” Issues & Studies, vol. 36, no. 4 (July/August 2000), pp. 98-103.

63 Chien-peng Chung, “The Spratlys and Other South China Seas Islands Disputes,” Journal of Social, Political & Economic Studies, Spring 1999, pp. 17-36. “AFP: Vietnam Holds Firm in Spratlys Dispute During Chi Haotian Visit,” Hong Kong AFP, February 10, 2001, in FBIS-CHI-2001-0210. H. Lyman Miller, and Liu Xiaohong, “The Foreign Policy Outlook of China’s ‘Third Generation’ Elite,” in David M. Lampton (ed.), The Making of Chinese Foreign and Security Policy in the Era of Reform (Stanford, CA: Stanford University Press, 2001), p. 141. Mingming Wang, in Teng Teng (ed.), Deng Xiaoping Lilun yu Shiji zhi Jiao de Zhongguo Guoji Zhanlue [Deng Xiaoping Theory and China’s International Strategy on the Eve of New Century] (Beijing: Renmin Chubanshe, 2001), p. 597.

64 Deng Xiaoping, Deng Xiaoping Wenxuan [Selected Works of Deng Xiaoping] (Beijing: Renmin Chubanshe, 1993), pp. 87-88.

65 An international relations senior scholar in Beijing, interview with author, July 17, 2001.

66 David M. Lampton, Same Bed, Different Dreams: Managing U.S.-China Relations, 1989-2000 (Berkeley: University of California Press, 2001), pp. 57-59.

67 “AFP Views Nationwide Fury in China Over NATO Bombing,” Hong Kong AFP, May 9, 1999, in FBIS-CHI-1999-0509.

68 David M. Lampton,

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