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Walking down a side street in Shanghai’s French Concession, a partially preserved corner of that city’s gloried and turbulent past, visitors come upon an ivy-covered house that served as the headquarters for the Shanghai branch of the Communist Party in the 1940s. Here the spartan quarters of Mao’s second in command, Zhou Enlai, are carefully preserved, the narrow beds and wooden desks evoking a simpler, revolutionary China.

A short ride away, across the murky waters of the Huangpu River, monuments to the new China are being erected in what was farmland less than two decades ago. The Pudong New Area, with its clusters of highrise office towers and multi-story shopping malls, is emblematic of the rush to wealth and economic power that now drives China.

These were among the images from a visit to China by a delegation of scholars from the Walter H. Shorenstein Asia-Pacific Research Center from April 8–14, 2007. Though time was short, the group managed to visit Shanghai, Hangzhou, and Beijing.

Fulfilling Shorenstein APARC’s mission to carry its work “into Asia,” the delegation met senior officials from government and business and held wide-ranging exchanges with Chinese scholars and policymakers at leading universities and research institutions. The conversation ranged from China’s development strategy to the current state of relations between China and its longtime rival and neighbor, Japan.

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The delegation was led by Shorenstein APARC director and professor of sociology Gi-Wook Shin and by professor of political science Jean C. Oi, who has launched the center’s new China studies program. The group included Shorenstein distinguished fellow Ambassador Michael H. Armacost, associate director for research Daniel C. Sneider, and senior program and outreach coordinator Neeley Main. In Beijing, Freeman Spogli Institute director Coit D. Blacker joined the delegation, as did Shorenstein APARC’s Scott Rozelle.

The trip started in Shanghai, a dynamic center of finance and industry that has drawn in many Stanford graduates. State-owned enterprises such as Baosteel, one of the world’s largest steel producers, are in the midst of becoming players in the global marketplace. From Baosteel’s sprawling complex of docks, blast furnaces, and rolling mills along an estuary of the Yangtze River, products are now being dispatched around the world. In a meeting, the leadership of the Baosteel Group expressed an eagerness to tap into the educational and training opportunities offered at Stanford University.

Shanghai is not only the business capital but also a political center, rivaling Beijing. The Shanghai Institute for International Studies is an unofficial foreign relations arm of the Shanghai government. Shanghai Institute scholars are also players in national policy debate on many key issues facing China, such as relations with Taiwan, with Japan, and even with the Korean peninsula.

The scholars presented their views on a wide range of issues, from the preparations for the 17th Congress of the Communist Party this coming fall to emerging structures of regional integration in East Asia. Professor Xu Mingqi, who is also a senior leader of the Shanghai Academy of Social Sciences, explained that China’s development strategy is shifting toward a more balanced approach. Whereas local government officials previously were pressed to meet targets for GDP growth, foreign investment, and export volume, now they must also raise employment levels, close the growing income gap, and provide social security.

Hangzhou, considered one of the most beautiful cities in China, is a two-hour drive south of Shanghai. The modern roadway passed a tableau of the suburbanization of this part of China’s countryside, with multi-story brick homes mushrooming amidst the fields. The delegation arrived at Zhejiang University, considered among the best of China’s provincial higher educational institutions and growing rapidly in size and scope.

The Shorenstein APARC delegation met with faculty members from Zhejiang’s social science departments, who briefed the delegation on their research work in areas such as distance education, international relations, Chinese history, even a school of Korean studies. Zhejiang is also the site of a new research institution, the Zhejiang Institute for Innovation (ZII), founded by Stanford engineering graduate Min Zhu, a Silicon Valley entrepreneur who is determined to bring the lessons of Stanford and the valley to his home province and his undergraduate alma mater. ZII aims to foster applied research that can tie the university to the vibrant entrepreneurial culture of Zhejiang province. Shorenstein APARC researchers may soon be carrying out fieldwork in this laboratory of change, based at ZII.

Beijing, however, is still the place that matters most in China, not only in the realm of government but also when it comes to academic scholarship. The delegation met with two of Shorenstein APARC’s longtime corporate affiliates in China—PetroChina, the state-owned oil and gas giant, and the People’s Bank of China. Shorenstein APARC dined with a lively group of Chinese journalists, organized by former Stanford Knight fellow Hu Shuli, the editor of Caijing Magazine, considered China’s leading independent business publication.

The substantive task was to forge new ties with key research institutions. The current state of China’s development strategy was again on the agenda when the delegation met with senior officials from the National Development and Reform Commission (NDRC), formerly China’s State Planning Commission. Alongside the NDRC, the delegation met as well with the leadership of an offshoot of China’s State Council, the China Development Research Foundation, which is doing important work in promoting good governance in areas such as poverty alleviation, nutrition, and budgeting. Those conversations were echoed later in our meetings with scholars from Peking University’s School of Government.

Shorenstein APARC’s own China program, as Oi explained, is focused on understanding the tensions that arise as China grapples with the consequences of its rapid economic development. Out of the meetings in Beijing, an ongoing dialogue has begun, to be advanced this summer with a visit from a NDRC delegation and in the fall with an international conference at Stanford on China’s Growing Pains.

The delegation also engaged in frank and useful exchanges on a variety of international relations issues. We had an extended meeting with scholars and leaders of the China Reform Forum (CRF), a think-tank associated with the Communist Party’s Central Party School, the premier institution for training party leaders and officials. The CRF is credited with authoring important concepts such as the foreign policy doctrine of China’s “Peaceful Rise.” These discussions were followed by a visit and exchange with scholars from Peking University’s widely respected School of International Studies.

The scholars shared analysis of the current state of the North Korean nuclear negotiations, as well as evaluating the outcome of Chinese Premier Wen Jibao’s visit that week to Japan. Over dinner with CRF Vice Chairman Ding Kuisong, the conversation turned to the American presidential politics and the future direction of U.S. foreign policy.

Professors Blacker, Shin, and Oi also met with senior officials of Peking University, as part of an ongoing dialogue about cooperation between these two premier institutions of higher education.

 

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Shorenstein APARC, in collaboration with India's Observer Research Foundation, will hold a conference on regionalism and regional integration in South Asia at Stanford University. This is the third in a series of academic conferences on regionalism organized by Shorenstein APARC, following earlier conferences on regionalism in Northeast and Southeast Asia. The conferences have yielded important edited volumes, published in association with The Brookings Institution press. The conference papers from this conference as well will be issued as an edited volume in that same series.

Globally, the trend towards regional integration and the rise of regional institutions as actors in the international system has been on the rise. The paradigm for transnational regionalism is the European Union but we have also seen a growing role for regional organizations in Latin America, in Central Asia and even in North America. In Asia, there is increasing interest in the creation of an East Asian Community, driven in large part by the rise of intra-Asian trade and investment, propelled by China. Regionalism has been on the agenda in South Asia since the establishment of the South Asian Association for Regional Cooperation (SAARC) in 1985. Yet the progress toward regional cooperation and integration in South Asia has been very slow. However the dynamic growth of the Indian economy may be giving a new impetus to regionalism, driven by forces of business and the market.

This conference will examine the prospects for regionalism in South Asia, looking at the factors that drive greater regional integration and the obstacles to regionalism. It will place South Asia in the comparative framework, examining how South Asia compares to other experiences globally, including in Asia and Europe. The conference will explore the different perspectives on regionalism from within South Asia. It will focus on the role of India, as the largest power in the region and look at how much India drives or blocks greater regionalism. And finally, the participants will examine the interests of other powers in South Asian regionalism.

Funding for this conference was provided by the Shorenstein Asia-Pacific Research Center, The Observer Research Foundation, Jet Airways, Mr. Kanwal Rekhi, insure1234.com, and G1G.com.

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Iain Johnston is the Laine Professor of China in World Affairs at Harvard University's department of government. He received his Ph.D. from the University of Michigan. His research and teaching interests include socialization in international institutions, the analysis of identity in the social sciences, and ideational sources of strategic choice, mostly with reference to China and the Asia-Pacific region. He is the author of "Cultural Realism: Strategic Culture and Grand Strategy in Chinese History" (Princeton 1995) and "Social States: China in International Institutes, 1980-2000" (Princeton 2008), and co-editor of "Engaging China: The Management of an Emerging Power" (Routledge 1999), "New Directions in the Study of China's Foreign Policy" (Stanford 2006), and "Crafting Cooperation: Regional Institutions in Comparative Perspective (Cambridge 2007).

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Professor Alastair Iain Johnston Speaker Department of Government, Harvard University
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Venture capitalist, attorney and educator Michael Korver opened SPRIE's spring seminar series on new post-bubble patterns of entrepreneurship in Japan. Korver, a managing partner in Japan's Global Venture Capital, spoke on how he has seen venture capital evolve there in light of his own firm's experiences.

Korver argued that despite a number of problems surrounding the venture capital situation in Japan--a surplus of capital overwhelmingly from large entities in the financial services sector, low perceptions of entrepreneurial activity, and a lack of "high growth expectation" entrepreneurial activity--Tokyo offers a number of advantages to entrepreneurs, perhaps the most significant being Japan's early-adopter, high-consumption domestic market.

"Tokyo is... the perfect incubator for new businesses, ...but the Japanese leaders do not understand that the future of Japan... is absolutely dependent on creating entrepreneurial innovation."
-Michael Korver

He conceded that things have gotten worse since 2006: the backlash from the Livedoor/Takafumi Horie scandal and the resulting drop in the stock market, a 20% withholding tax on investment in Japan from foreign sources and the Ministry of Finance's regulation of industries that use limited partnerships like the venture capital industry have all added up to a drying-up of VC investments and a drop in IPOs in Japan.

Nonetheless, Korver will continue to have Tokyo as his base of operations. "Tokyo is... the perfect incubator for new businesses, ...but the Japanese leaders do not understand that the future of Japan... is absolutely dependent on creating entrepreneurial innovation."

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How might one think about Chinese power, its dimensions, its effects, and its implications for change in the United States and elsewhere? Dr. David M. Lampton will put China's current trajectory and its conceptions of power in their historical contexts, discuss how China's neighbors are responding to the PRC's growing strength, and explore the vulnerabilities and uncertainties that lie ahead not only for China but the outside world.  
 
Dr. Lampton's work is based on interviews in China, in countries along the PRC's long periphery, and in the United States, as well as extensive documentary research. His book, The Three Faces of Chinese Power: Might, Money, and Minds, was just published by the University of California Press. 

David M. Lampton, Dean of Faculty, is George and Sadie Hyman Professor and Director of China Studies at the Johns Hopkins School of Advanced International Studies and Senior International Advisor on China for the law firm of Akin Gump. Before assuming the post at SAIS in December 1997, he was president of the National Committee on United States-China Relations in New York City for a decade. Dr. Lampton is the author of numerous books and articles on Chinese domestic and foreign affairs. His most recent book is, The Three Faces of Chinese Power: Might, Money, and Minds (University of California Press, 2008), and his articles have appeared in the American Political Science Review, The China Quarterly, Foreign Affairs, Foreign Policy, The New York Times, The Washington Post, and other venues academic and popular. Earlier books and edited volumes include: Same Bed, Different Dreams: Managing U.S.-China Relations, 1989-2000 (University of California Press, 2001) and (editor) The Making of Chinese Foreign and Security Policy in the Era of Reform (Stanford University Press, 2001).

Lampton received his PhD and undergraduate degrees from Stanford University and has lived in the Peoples Republic of China, Taiwan, and Hong Kong. He has an honorary doctorate from the Russian Academy of Sciences' Institute of Far Eastern Studies and is consultant to the Aspen Institute's Congressional Program, the Kettering Foundation, and various corporations and government agencies.

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David M. Lampton George and Sadie Hyman Professor and Director of China Studies Speaker the Johns Hopkins School of Advanced International Studies
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The rise of China and India is unparalleled in human history because never before has the world witnessed the simultaneous and consistent takeoffs of two nations, accounting for more one third of the planet’s population, which have been consistently registering high growth rates for two decades. Their rise has profound implications for the world economy and world politics. Both China and India – the two new big kids on the block – have no difficulty with a rule-based world order, what they want is “a different set of rules”. 

The rise of China and India represents both challenges and opportunities for Europe. Rising powers like China and India are challenging the European Union. They will be in a position to shape and influence global agendas and decisions to a greater extent than at present. For both, Europe will remain an indispensable partner since it is a vital source of trade, advanced technology and foreign direct investment. China and India do pose challenges for Europe, but they also provide opportunities since their growth contributes to greater growth worldwide, which means more exports, especially to a swelling consumerist middle class, which will make more demands of European goods, technology, and services.

Rajendra K Jain is Professor of European Studies and Chairperson, Centre for European Studies, School of International Studies, Jawaharlal Nehru University, New Delhi. He is Secretary-General, Indian Association for European Union Studies. He has been Visiting Professor at Leipzig and Tuebingen University and at the Maison des Sciences de l’Homme, Paris. He is the author/editor of over two dozen books and has published 70 articles/chapters in books. He has most recently published India and the European Union: Building a Strategic Partnership (2007) (editor).

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Rajendra Jain Professor, European Studies; Chairperson, Centre for European Studies, School of International Studies Speaker Jawaharlal Nehru University, New Delhi
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