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The Shortcomings Holding China Back

Jonathan Fenby, The Guardian | April 10, 2012

China's rise to the top is not preordained. ++ Its system is cracked along political, economic, and social lines. ++ The choosing of party leaders is not transparent. ++ China relies far too heavily on exports and investment in infrastructure and construction. ++ The system is highly unequal for workers at the bottom. ++ The country also faces a demographic problem of too many older people and not enough younger workers. ++ Unless China carries out reform, the country will not reach the position it desires.

 

 
 
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Gökhan  Tekir

Tue, Apr 10th 2012, 18:06

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The author wrote the list of shortcomings of China but he missed a vital point which is the energy dependency of Chinese economy. The main foreign policy formulation of China is to seek the ways to feed its growing economy in cheaper and sustainable ways.
The countries with energy resources in Middle East and North Africa which China tries to develop warm relationship is getting out of Chinese influence with democratization movements. China has a leverage against the USA by holding its government bonds but the countries which supply oil and gas prefer to be allied with the USA. Thus, China could not use this leverage effectively.
In Syrian crisis, China sided with Assad administration with its traditional non-intervention foreign policy but this support means that other oil rich Arab countries are alienated by China. Therefore, the adherence to protect Assad regime cannot be prolonged. Arab spring requires China to adopt a different kind of foreign policy. But change in foreign policy will also have repercussions in the domestic sphere. Seeing that China supports democratic movements in the abroad, citizens of China might be encouraged to act against the regime in long term.
I think that the acute energy dependency of China is Achilles' heel of the regime in this country.
 

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