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Japan's experience with China's rise thus far suggests an increasingly tumultuous Northeast Asia. For a decade or more, the Sino-Japanese relationship has been punctuated with a series of political crises, and while the two governments in Beijing and Tokyo have sought to define a new forward looking agenda for their nations, it is the management of these crises that have shaped Japanese attitudes towards a rising China. Sheila Smith will present her analysis of Japan's domestic response to China's rise, and how it has affected the constellations of interests that shape Japan's policy response. She argues that these various moments of contention in Japan's relations with China, from Koizumi's Yasukuni Shrine visits, to resource development in the East China Sea, to the Gyoza "war," and the Senkaku "shock," could have provided the opportunity for building cooperative more effective conflict resolution mechanisms in the Sino-Japanese relationship. Yet within Japan, these various issues of contention have hardened Japanese attitudes rather than produced support for greater diplomatic compromise. As Chinese influence grows, Japan's postwar institutions and policy preferences are being sorely tested not only in the diplomatic realm, but from deeply within Japan's own society. Postwar beliefs about Japan's past, its security and its ability to cope with an increasingly volatile Northeast Asia are all being challenged.

Sheila A. Smith, an expert on Japanese politics and foreign policy, is senior fellow for Japan studies at the Council on Foreign Relations (CFR). Smith directed the Council on Foreign Relation’s New Regional Security Architecture for Asia Program and currently leads a project on China and India as Emerging Powers: Challenge or Opportunity for the United States and Japan? She joined CFR from the East-West Center in 2007, where she directed a multinational research team in a cross-national study of the domestic politics of the U.S. military presence in Japan, South Korea, and the Philippines. Smith was on the faculty of the Department of International Relations at Boston University (1994–2000), and on the staff of the Social Science Research Council (1992–1993). She has been a visiting researcher at two leading Japanese foreign and security policy think tanks, the Japan Institute of International Affairs and the Research Institute for Peace and Security, and at the University of Tokyo and the University of the Ryukyus. Smith earned her PhD and MA degrees from the Department of Political Science at Columbia University. She regularly contributes to CFR’s Asia Unbound blog.

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Sheila Smith Senior Fellow for Japan Studies Speaker Council on Foreign Relations
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With less than a year before South Korean President Lee Myung-bak's term ends, Gi-Wook Shin says that Lee should maintain his current North Korea policy, and keep balanced relations with growing trade partner China and long-time ally the United States. Shin spoke recently with the Korea Times about Lee's final months in office.
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South Korean President Lee Myung-bak and Chinese Premier Wen Jiabao at the presidential office, Seoul, May 28, 2010. | Flickr/KOREA.NET
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Since opening its doors to the world in 1978, China has pursued a sometimes erratic but reasonably steady course leading to increasing global economic and political interaction. Its interests now extend from Pyongyang to New York and Sydney to Riyadh. U.S. President Barack Obama’s announcement of a new “pivot” toward Asia, recent events on the Korean Peninsula, and China’s upcoming leadership transition provide additional reasons to seek greater understanding of China’s goals and interactions with other nations.

Thomas Fingar, Stanford’s Oksenberg-Rohlen Distinguished Fellow, is leading a new multiphase Shorenstein Asia-Pacific Research Center (Shorenstein APARC) initiative to explore the nuances and complexity of China’s foreign relations and domestic issues. The China and the World research project aims to contextualize and better understand China’s regional and global interactions, both from the perspective of China itself and from that of other countries. Beginning with Northeast Asia, the project will analyze China’s relations region-by-region throughout the world, and will involve experts from Stanford, China, and the regions studied. It kicks off with a Shorenstein APARC-organized workshop held Mar. 19 and 20 at the new Stanford Center at Peking University.

Fingar discusses the development of China’s foreign relations since 1978, and describes the project and workshop’s background.

In the three decades since Deng Xiaoping enacted his 1978 Open Door reforms, what have been the main trends in China’s global engagement?

The general trend since 1978 has been for China to become increasingly active and engaged in a growing number of places around the world. There have been a number of phases to this.

The “honeymoon period” of U.S.-China relations (1979–1989) was a period of essentially no competition to China’s interaction within the U.S.-led world economic system. China concentrated on the OECD countries—especially the United States, Japan, and Western Europe—that had money to invest and willingness to trade.

After the 1989 Tiananmen Square Incident, China’s international options became more constrained as its relations with the developed world plateaued. It began to reach out to the places that would deal with it: Southeast Asia and particularly Africa. This was in part diplomatically motivated, and in part a search for new markets for the low-end goods it was beginning to produce. It was also the beginning of its search for energy.

Around 2000, China transitioned from building a more modern economy towards being one—beginning the era of its “rise.” China’s demand for resources went up, as did its capacity to supply more markets and its ability to invest more of its growing foreign exchange earnings. It became globally active, proclaiming that it had a new, less exploitative model than what the United States and Europe offered.

What Northeast Asia issues do you think China will focus on this year, especially as it plans for a major leadership transition?

North Korea’s stability and China’s growing investments in the DPRK. Beijing is acutely interested in whether Kim Jong Un will prove a viable leader and whether the regime will be able to manage its new challenges. China is concerned about possible North Korean provocations that might trigger responses by South Korea and/or the United States, putting at risk the peaceful regional and international situation China needs for its political and economic development.

The second issue is answering the question: what does the U.S. pivot toward Asia mean? What does it mean in terms of security, economics, and relations with Japan and Korea? China is the largest trading partner for each of these countries. They value it as a market, and as a source of resources. Yet they also worry about being excessively dependent on China. They appear not to have worried about this quite so much when their dependence on the U.S. market was comparable.

Two full workshop sessions will be devoted to Japan and South Korea, both countries with close U.S. ties. What are the most important factors with regard to China’s rise for these two countries? What about for Southeast Asia?

One of the reasons for our upcoming Beijing workshop is to develop a general template of questions we can ask for each region. We want to avoid focusing the questions too narrowly on Northeast Asia.

For Japan and Korea, one factor has to do with economic opportunities and with their own vulnerabilities. The other has to do with the security challenges of China’s rise, and the uncertainty of its military aspirations. Japan and Korea do not want to be drawn into U.S.-led activities, but they still value the United States for protection. They are concerned about managing the decoupling of economic and security dependence, about no longer being dependent on the same country for both.

Many regional issues are interrelated, such as maritime territorial claims and naval expansion. China is an economic player in Southeast Asia, and the Philippines and Thailand have an alliance with the United States. Indonesia is a rising county in Southeast Asia, and India is an outside player in the region. The U.S. 7th Fleet currently defends the shipping lanes to Northeast Asia that go through Southeast Asia, which probably is not the long-term solution.  

Russia played an important role in shaping the political ideology in the early days of the People’s Republic of China, and the politics of both countries—especially Russia—have changed so much. What is their relationship like now?

Correct and limited. The West imposed a military hardware embargo on China after Tiananmen, so Russia is a limited alternative for that, and it is also a source of energy and other resources. It is fair to say China has something close to disdain for Russia, for what it sees as political confusion and economic mismanagement. The idea of a strategic triangle—using Russia to balance U.S. influence—is something China sees as unviable.

As you move forward with this project, what is the ultimate goal?

The goal is to understand the dynamics of interaction—to understand the bigger picture. Other countries have objectives and concerns with regard to China, while China has objectives and concerns of its own. It is about identifying things such as where they see the same and different kinds of opportunities; what concerns they have about third country interests or involvement; and how they evaluate the success of policies to date.  

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"Focus straight ahead on the development of Pudong [Shanghai commercial district]," says Deng Xiaoping on a poster at the 2010 Shanghai World Expo. | Flickr/sbszine
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Walter H. Shorenstein
Asia-Pacific Research Center
616 Serra St., Encina Hall C302-23
Stanford University
Stanford, CA 94305-6055

(650) 723-3368 (650) 723-6530
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Visiting Professor
ChengJosephWEB.jpg PhD

Research Interests

Asia-Pacific and global competitiveness; national innovation and technology policies; foreign R&D investment; strategy and organization design for transnational firms.

Professional Biography

Joseph L. C. Cheng joins the Walter H. Shorenstein Asia-Pacific Research Center (Shorenstein APARC) in 2012 from the University of Illinois at Urbana-Champaign where he is currently professor of international business and director of the CIC Center for Advanced Study in International Competitiveness. CIC (Committee on Institutional Cooperation) is the nation’s primer consortium of top-tier research universities in the Midwest, including the Big Ten Conference members and the University of Chicago. 

During his time at Shorenstein APARC, Cheng will conduct research on the international competitiveness of multinational firms from the Asia-Pacific, with a focus on the JACKS countries (Japan, Australia, China, Korea, and Singapore). The project has two main objectives:  (1) to identify the key competitive advantages of the JACKS countries both individually and collectively as a cluster of economies; and (2) to investigate how indigenous firms from the JACKS countries internationalize and leverage home-based advantages to enhance their competitiveness overseas. The research findings will be reported in a forthcoming book that Cheng is currently writing: Asia-Pacific and the JACKS Multinationals: Economics, Culture, and International Competitiveness.

Cheng is a consulting editor for the Journal of International Business Studies and senior editorial consultant to the European Journal of International Management. He is also a guest editor for an upcoming special issue of Long Range Planning on “China Business and International Competitiveness: Economics, Politics, and Technology.” Additionally, he currently serves or has served on the editorial boards of several other journals, including Management International Review, Journal of World Business, Organizational Dynamics, and Journal of Engineering and Technology Management.

Cheng holds a PhD in business administration from the University of Michigan and a BS (with honors) in industrial engineering from the University of Wisconsin-Madison.

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China possesses vast coal reserves, and coal accounts for 70 percent of the country’s total energy consumption—3 billion tons per year. But China also consumes oil, natural gas, and an increasing amount of renewable energy.

Xuteng HuXuteng Hu, a Corporate Affiliates Visiting Fellow Program alumnus (2007–08), manages energy and materials development projects at PetroChina’s Petrochemical Research Institute in Beijing, where he serves as vice president.

Hu received his master’s and doctorate degrees in chemical engineering from Tsinghua University. 

PetroChina, one of China’s largest energy companies, has recently developed its own biojet fuel. The company is also researching other renewable energy technologies, including biofuel made from plant fiber.

During his year at Stanford University, Hu conducted research on the governance of China’s state-owned enterprises, focusing on energy companies like PetroChina, Sinopec, and China National Offshore Oil Corporation. He also studied strategies for the development and promotion of different forms of energy, ranging from coal to chemicals and oil to natural gas. Jean C. Oi, a political science professor and director of the Stanford China Program, served as Hu’s research advisor.

Since returning to China three years ago, Hu has managed the research and development of synthetic petroleum-based materials, and the construction of major pilot petrochemical plants. Perhaps most exciting of all, the biojet fuel project he led conducted a successful demonstration flight in October.

Of his time at Stanford, Hu says: “My experiences helped me think about corporate governance structure, energy development, and other issues related closely to my work from different perspectives, such as culture and society. It also enhanced my understanding of cultural and business exchanges between China and the West.”

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A China Southern jet takes off over Dalian apartment buildings, Oct. 2009. Corporate Affiliates alumnus Xuteng Hu has recently led a successful biojet fuel project in Beijing. | Flickr/Dmitry Klimenko
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For the past two decades China has been a poster child of successful globalization. But its integration into the world economy and global trends drive and constrain Beijing's ability to manage growing social, economic and political challenges. In a YaleGlobal Online series article, Thomas Fingar looks at the global implications of China’s development challenges.
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Chinese basketball superstar Yao Ming carries China's flag during the 2008 Summer Olympics opening ceremonies. Beijing's hosting of the Olympics marked a major symbolic milestone in China's development. | Flickr/U.S. Army
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At present, the tobacco industry annually produces some six trillion cigarettes worldwide. A third of all these sticks were produced in China last year. During a Jan. 30 seminar, Matthew Kohrman will introduce the Cigarette Citadels project, an innovative application of participatory GIS, and discuss its implications for public health policy and social theory about the state and the politics of life.
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Packages of several brands of Chinese cigarettes. | Flickr/Franco Rabazzo
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