Monday, 26 October 2015

China-Britain bilateral relations in Golden Era


Putting economics first

Despite Britain’s role as the closest US ally, its leaders have surprised the world by surging forward in relations with a rising China.

FOR centuries, relations between Britain and China have been undulating, rising rather more than declining.

In that time, Britain has been more ­anxious to penetrate Chinese markets and forage for what China has to offer than the other way round.

The Queen and Chinese president Xi Jinping are driven by carriage along The Mall to Buckingham Palace Photograph: POOL/Reuters

The super-gala treatment that President Xi Jinping and Mrs Xi received in London ­during the week was not necessary to prove the point, but it helps. There was Xi, royally seated next to the Queen, in the gold-trimmed horse-drawn royal carriage parading through London and shown on television screens around the world.

The visiting presidential couple also lodged at Buckingham Palace, the Queen’s official residence, during their trip. Clearly, this was no ordinary state visit.

The Queen called the visit “a defining moment”, Prime Minister David Cameron called it “a golden era”, and Chancellor of the Exchequer George Osborne called it “a golden decade” for their bilateral relations.

An array of gilded items were spread among the vast gilt-edged dining chairs for Xi and his host, the Lord Mayor of London, at the second banquet after the Queen’s.

Gold, the auspicious colour in Chinese culture, went well with the red of the carpet and the Chinese flag.

And Britain was only too happy to oblige.

This was Xi’s first state visit, coming a full decade after his predecessor’s, Hu Jintao’s. But British leaders had been somewhat more proactive.

Only a few years ago, hiccups in relations occurred after British officials stumbled over such sensitive issues for China as the Dalai Lama. After the ruffles were smoothed over came the slew of mega business deals.

Britain wanted to ensure those deals were on and Xi’s state visit would seal them, so Osborne was dispatched to Beijing last month. To make doubly sure he made a side trip to Xinjiang, the alleged epicentre of China’s human rights violations, to talk trade rather than human rights.

China critics condemned that move. But it paid off for Britain in Xi’s high-powered four-day visit and all that it represented and contained.

On Tuesday, China’s Central Bank issued its first offshore renminbi bond in London. On the same day, Cameron appointed Chinese tycoon Jack Ma to his business advisory group. The next day, deals were signed amounting to £40bil (RM260bil), generating nearly 4,000 jobs in Britain. And this was only the beginning.

Critics tend to underrate the importance of business success for both Britain and China. They are perhaps the most enduring of the world’s major trading nations, Britain historically and China in the past and the future.

Even before becoming “the workshop of the world”, Britain had embarked on a glo­bal empire that would span centuries. It lost its sparkle after the Second World War and decolonisation.

British interest in East Asia had centred on China, particularly trade with China. Even its presence in Borneo – Brunei, Sabah (British North Borneo) and Sarawak – were only as a staging post for trade with China on sailing ships and steamships.

The British phrase “not even for all the tea in China” is a measure of one’s resistance to temptation. And tea was only one of many traded items from China.

With the colonial period, parts of China were tugged and torn by European, Russian, US and Japanese imperial powers. China fought and lost two “opium wars” and suffered unequal relations with Britain.

Then they agreed on the return of Hong Kong to China in 1997. But even decades before that date, the buzz in Britain was what would happen to Hong Kong after the “handover”.

Hong Kong had long been known as the world’s classic capitalist enclave, while in the 1990s the West still regarded China as a communist state.

Hong Kong was in quiet panic, as celebrities and stars worried what would happen to them and their work under communist rule.

Many contemplating migration purchased homes abroad from Vancouver to Kuala Lumpur. Jackie Chan bought a luxury condominium in Damansara Heights.

At the time, an Englishman from off the streets in central England put that crucial question to me: What would happen after China “takes over” Hong Kong? I replied that Hong Kong would instead take over China in many ways that mattered. Soon after 1997, Deng Xiaoping’s credo of “it’s glorious to be rich” was abundantly clear throughout the land, often excessively so.

In time, anxieties over the handover were soothed, and it ceased to be an international issue. After moving to the United States and working in Hollywood, Chan returned to Hong Kong and even began work in China itself. His trajectory has been instructive and symbolic. So his presence as an invited guest at a reception for Xi in London’s Lancaster House on Wednesday evening said it all.

While London and Beijing are only too happy to see their relations on the upswing again, their critics have been at work. They have called Britain’s grand welcome for Xi fawning and embarrassingly servile.

Western criticism comes from two broad angles: the US and Europe. Both are not without their own self-interests.

In the European Union, Germany has been an early and the most extensive investor in China. Then earlier this year, Britain stole a march on all other Western countries by signing up as an early co-founding member of the China-led Asian Infrastructure Investment Bank (AIIB). After that, other US allies joined in: several EU countries including Germany, as well as Australia, New Zealand and Singapore. The US, which tried hard to stop the trend, had only Japan and Canada as recalcitrant holdouts for company.

Many Western and pro-Western countries are happy enough to do business with China in the lead, in the process helping China grow. This is despite strategic thinkers knowing that the AIIB is also a means for extending China’s reach through Central Asia and Russia to the West.

This takes the form of the infrastructure-­heavy Maritime Silk Road and the One Belt, One Road projects offering connectivity between East Asia and Europe. They possess both economic and strategic advantages.

US critics of Britain’s close partnership with China have something of an identity crisis. They have a long list of complaints against Beijing, yet they cannot stop their own corporations doing increasing business with China.

Worse still, the glittering welcome accorded to President and Mrs Xi in London compares too favourably with the one in Washington just weeks before.

Beyond some formal diplomatic niceties, President Obama reportedly threatened to impose sanctions on China. He also remains committed to the largely military “rebalancing” in China’s backyard, while keeping China at bay with the Trans-Pacific Partnership proposal dividing East Asia.

Whether the British or US approach to working with China is better, and for whom, also depends much on which is more enduring. Britain had presided over a global empire for centuries. China, a global superpower before, has millennia of experience to draw on.

Both countries share the approach of making trade their primary purpose, with any political or military posture being secondary to protect those economic interests.

The US in contrast opts for a forward military posture abroad, with any economic interest secondary by comparison. And despite Pax Americana being only 70 years old, it is already showing signs of wear.

By Bunn Nagara, who is a Senior Fellow at the Institute of Strategic and International Studies (ISIS) Malaysia - The Star

Open, inclusive partnership exemplary for development


China's President Xi Jinping and Britain's Prime Minister David Cameron attend a joint press conference in 10 Downing Street, in central London, Britain, Oct 21, 2015.[Photo/Agencies]

President Xi Jinping's pledge that China and the United Kingdom will build a "global comprehensive strategic partnership" in the 21st century will bring China-UK relations to a new level and endow their ties with a significance that goes beyond the bilateral scope.

In his talks with British Prime Minister David Cameron on Wednesday, Xi described the upgraded China-UK partnership as opening up a golden era for an enduring, inclusive and win-win relationship that will enable the two sides to jointly create an even brighter future for their relationship.

The noticeable improvement in China-UK ties has been the result of the strong political will from both sides to transcend their differences and shore up mutual respect, reciprocal cooperation and mutual learning.

During Xi's ongoing visit to the UK, the two sides have signed a number of intergovernmental and business deals worth about 40 billion pounds ($62 billion), including an eye-catching agreement that means China will partly finance a UK nuclear plant.

This nuclear project will be China's first in the West, and according to Cameron, it will create thousands of jobs in the UK and provide reliable, affordable energy to nearly 6 million homes when operational.

Such fruitful results show China and the UK are substantiating their cooperation with concrete deals. And as Cameron has said, a strong economic relationship can withstand frank disagreements on some other issues.

With the UK pledging to be China's best partner in the West and China looking to build a golden decade with the UK, the two sides have set a good example in developing ties between a major developing country and a major Western power.

Xi has stressed the open and inclusive nature of the China-UK comprehensive strategic partnership, which means the stronger bond between Beijing and London does not target any existing alliance or partnership the two have forged with other countries.

Under the principle of voluntarism, the partnership can be expanded to include other partners so as to bring benefits to more countries.

The quick reconciliation and warming of bilateral ties would not have been possible if the two sides had not deepened their mutual understanding, built mutual trust and committed to reciprocal and meaningful interaction.

We have every reason to believe China and the UK will continue to build on the current good momentum in their relations, which will not only cater to their interests but also contribute to the common prosperity of the entire world. - China Daily

Xi trip success narrows divide with West


In the 1950s, China's stated aim was to surpass the industrial achievements of the UK, which however failed. Decades later, the UK welcomed Chinese President Xi Jinping with pomp and pageantry and announced the two countries were entering a "golden age." China has roughly overtaken the UK in gross GDP, although the living standards of the Chinese still lag far behind the British.

During Xi's stay, China and Britain signed contracts worth 40 billion pounds ($61.62 billion). London will become the top offshore yuan center apart from Hong Kong. The UK also adopted measures to relax visa rules for Chinese tourists. These combined give people more faith in the comprehensive strategic partnership between China and the UK.



The embrace of China and the UK with open arms primarily proves that the West's economic alliance designed to counter China does not exist or has been overthrown. Economically, the West has more noncompliance than consent across the board to challenge China. Militarily, the West has NATO at the core, but inside it is still not united enough to pressure China. China's military pressure mainly comes from the US-Japan alliance, which is trying to involve smaller countries around China to enhance the deterrence. As China's economic development has bolstered its military might, it has increasing confidence in safeguarding the country's security.

The UK seems to have distanced itself from the Western group that may threaten China and explicitly wants to befriend us. As an important member of the Western world, the UK's decision to usher its ties with China into a "golden age" has symbolic significance.

But when it comes to ideology, the old divide comes up again between China and the West. Over political and values conflicts, countries like the UK, Germany and France, which endeavor to advance their bonds with China, return to the Western formation.

The external ideological pressure is one of the thorniest issues for China currently, and has huge influence on China's domestic values debate.

Common values have been the prominent bond in the West after WWII, but it is definitely not omnipotent. The divergence on values is the biggest difference between China and the West, which requires mutual respect and will to accept. We often feel the West is arrogant and aggressive in terms of ideology, which may partly come from a sense of insecurity due to internal divergences.

The UK mirrors our own changes and informs us that the times when the outside world united to counter China have ended or never existed. But there is still a long road before disputes on ideological issues between China and the West can be solved. Yet we have more achievements and hopes in this regard than difficulties and uncertainties. Compared with the huge pressure from the West in the past, we have gone so far and clearly know our future path. - Global Times

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