House of Commons Foreign Affairs Committee Government policy towards China Oral and written evidence Tuesday 2 July 2013 Professor Shaun Breslin, Department of Politics and International Studies, University of Warwick, and Associate Fellow, Asia Programme, Chatham House; Professor Steve Tsang, Director, China Policy Institute, University of Nottingham; Mr Nigel Inkster, Director, Transnational Threats and Political Risk, International Institute for Strategic Studies (IISS) Ordered by the House of Commons to be printed 2 July 2013 HC 529-i Published on 29 August 2013 by authority of the House of Commons London: The Stationery Office Limited £7.50 The Foreign Affairs Committee The Foreign Affairs Committee is appointed by the House of Commons to examine the expenditure, administration and policy of the Foreign and Commonwealth Office and its associated agencies. Current membership Richard Ottaway (Conservative, Croydon South) (Chair) Mr John Baron (Conservative, Basildon and Billericay) Rt Hon Sir Menzies Campbell (Liberal Democrat, North East Fife) Rt Hon Ann Clwyd (Labour, Cynon Valley) Mike Gapes (Labour/Co-op, Ilford South) Mark Hendrick (Labour/Co-op, Preston) Sandra Osborne (Labour, Ayr, Carrick and Cumnock) Andrew Rosindell (Conservative, Romford) Mr Frank Roy (Labour, Motherwell and Wishaw) Rt Hon Sir John Stanley (Conservative, Tonbridge and Malling) Rory Stewart (Conservative, Penrith and The Border) The following Members were also members of the Committee during the Parliament: Rt Hon Bob Ainsworth (Labour, Coventry North East) Emma Reynolds (Labour, Wolverhampton North East) Mr Dave Watts (Labour, St Helens North) Powers The Committee is one of the departmental select committees, the powers of which are set out in House of Commons Standing Orders, principally in SO No 152. These are available on the internet via www.parliament.uk. Publication The Reports and evidence of the Committee are published by The Stationery Office by Order of the House. All publications of the Committee (including news items) are on the internet at www.parliament.uk/facom. A list of Reports of the Committee in the present Parliament is at the front of this volume. Committee staff The current staff of the Committee are Kenneth Fox (Clerk), Peter McGrath (Second Clerk), Zoe Oliver-Watts (Senior Committee Specialist), Dr Brigid Fowler (Committee Specialist), Louise Glen (Senior Committee Assistant), Vanessa Hallinan (Committee Assistant), and Alex Paterson (Media Officer). Contacts All correspondence should be addressed to the Clerk of the Foreign Affairs Committee, House of Commons, London SW1A 0AA. The telephone number for general enquiries is 020 7219 6105; the Committee’s email address is [email protected]. 4 Foreign Affairs Committee: Evidence List of witnesses Tuesday 2 July 2013 Page Professor Shaun Breslin, Department of Politics and International Studies, University of Warwick, and Associate Fellow, Asia Programme, Chatham House, Professor Steve Tsang, Director, China Policy Institute, University of Nottingham Ev 1 Mr Nigel Inkster, Director, Transnational Threats and Political Risk, International Institute for Strategic Studies (IISS) Ev 11 List of written evidence 1 Written evidence from Professor Kerry Brown, Director, China Studies Centre, University of Sydney, and Associate Fellow, Asia Programme, Chatham House Ev 17 2 Written evidence from Human Rights Watch Ev 20 3 Written evidence from the Foreign and Commonwealth Office Ev 23 cobber Pack: U PL: COE1 [SO] Processed: [22-08-2013 10:15] Job: 031818 Unit: PG01 Source: /MILES/PKU/INPUT/031818/031818_o001_michelle_FAC 02.07.13 corrected.xml Foreign Affairs Committee: Evidence Ev 1 Oral evidence Taken before the Foreign Affairs Committee on Tuesday 2 July 2013 Members present: Richard Ottaway (Chair) Mr John Baron Ann Clwyd Mike Gapes Sandra Osborne Andrew Rosindell Mr Frank Roy Sir John Stanley Rory Stewart ________________ Examination of Witnesses Witnesses: Professor Shaun Breslin, Department of Politics and International Studies, University of Warwick, and Associate Fellow, Asia Programme, Chatham House, and Professor Steve Tsang, Director of the China Policy Institute, University of Nottingham, gave evidence. Q1 Chair: May I welcome members of the public to this sitting of the Foreign Affairs Committee? This is a one-off topical evidence session on UK policy towards China, to explore progress in the Government’s effort to deepen UK-China ties and the implications for the UK of the new Chinese leadership. We are taking evidence from three witnesses today. I am pleased to welcome, for our first session, Professor Shaun Breslin, Department of Politics and International Studies at the University of Warwick and Associate Fellow of the Asia Programme at Chatham House, where he briefed the Committee a few months ago on a similar subject. I also welcome Professor Steve Tsang, Director of the China Policy Institute at the University of Nottingham. May I give a warm welcome to you both? It is very much appreciated that you have taken the time to come to speak to us today. I gather that you are both happy to go straight into questions. May I just ask a general question to start with? How does China see Britain? Are we a bit of a minnow, or do we have value as a member of the EU? Would they rather be talking to the EU than to Britain? Professor Breslin: I think the UK occupies a bit of an odd situation, often, in Chinese thinking, in that it is a key power in the European Union and it is also seen as a key bilateral power. But at times I think it really depends on how the UK lines up with or against the United States when it comes to major strategic considerations, for example over humanitarian intervention in Libya. Of course, there is the particular situation of Security Council permanent membership. I think the UK occupies two or three different roles in Chinese thinking. It almost depends on the issue— economics is perhaps different from big questions of security when it comes to the Security Council. It also depends on how Britain is perceived by the Chinese to be operating in or with the United States, or perhaps taking a more separate, independent line. Professor Tsang: I would say that the Chinese still have an element of historical baggage about the UK. That is fading very much after the Hong Kong handover, but there is still that legacy of the history, which is not totally irrelevant. I think there is an element of trying to put the UK more, if you like, in its place, rather than being seen as the leading member of the EU. I think they would like to put Germany much higher in terms of the pecking order in the EU as a major partner and of a relationship that they want to cultivate. But they also see that the UK is far more open than the other EU members, and therefore we offer opportunities that others may not be quite so open to offer. Q2 Chair: Does our visa regime pose a problem to UK-Chinese relations? Has that come across either of your desks? Professor Tsang: Yes. The visa issue is certainly a problem in terms of the number of Chinese visitors coming to the UK. If we were, for example, part of Schengen, there would be a much higher number of Chinese visitors to this country. The fact that they have to apply for a separate visa to come to the UK is a bit of a deterrent. For a lot of Chinese tourists, they take a utilitarian view—they have one Schengen visa and they can go to many European countries in one tour, whereas the UK is the UK. Professor Breslin: Yes. I think there is a bit of a feeling that China has been singled out for things that have happened in the past. On a very personal level, it makes it problematic if you bring in Chinese visitors and want to take them to Brussels: often, the timing of it is really quite difficult and we have had to cancel some people coming to conferences, because they have not been able to get things in time. That is purely on a personal level, rather than as a UK policy issue. Q3 Sir John Stanley: The section on China in Amnesty International’s 2013 report, The State of the World’s Human Rights, begins—I just offer the opening sentence; I could offer a great deal more— “The authorities maintained a stranglehold on political activists, human rights defenders and online activists, subjecting many to harassment, intimidation, arbitrary detention and enforced disappearance.” I made my first visit to China 35 years ago, and I have to say from where I am that in that 35-year period I have not seen any material diminution of what cobber Pack: U PL: COE1 [E] Processed: [22-08-2013 10:15] Job: 031818 Unit: PG01 Source: /MILES/PKU/INPUT/031818/031818_o001_michelle_FAC 02.07.13 corrected.xml Ev 2 Foreign Affairs Committee: Evidence 2 July 2013 Professor Shaun Breslin and Professor Steve Tsang Amnesty describes as the “stranglehold” on political activists. Do you consider, therefore, that the British Government’s attempts over that period to reduce that stranglehold have been a failure? Do you have any alternative policies that the British Government might follow to achieve a greater measure of success? Professor Tsang: If I may, my understanding of British Government policy is not to do that, in fact, but to improve the conditions of human rights in China. If we are looking at the situation of human rights in China, I would say that it probably has in fact improved. I am not contradicting anything that you have said from the report. What has been said in the report is accurate, but on a day-to-day basis, most abuses of human rights happened in China because of the failure of the criminal justice system, rather than because of the specific prosecutions of political dissidents and opposition people. There is just no way that the Chinese Government, under the Communist Party, is going to relent in terms of control over dissidents. They are not going to do that whatever we may try to say or whatever we may try to do to engage with them. But in terms of the overall human rights situation, there is scope for things to be improved. We have seen some of that being improved simply by helping the Chinese with improving the quality of justice being delivered. As far as that went, the British Government’s record has not really been as bad as might have been implied. Professor Breslin: I would start by saying that, while I think it is true in terms of political activists, there is a greater political space now for people to discuss and debate some things in China, bearing in mind that that space can open and shrink. There have been a number of high-profile cases where officials have been brought to book, effectively, by online campaigns, newspapers seeking justice and so on. That might not be political activism as Amnesty International defines it, but there is greater space at times for popular engagement within politics and perhaps for debating political ideas. This is a country where at the moment there is almost unprecedented debate taking place over what China’s global role should be, for example. That is not really what Amnesty International means by political activism, but we should not think that that is the same thing as closing down all political thought: at times, it can be quite plural. I am not sure what more could have been achieved if the United Kingdom had taken a different line over China—for example, if it had perhaps emphasised human rights more and economic relations less. I am a believer in changes in China emerging because of changes that take place and evolve within Chinese political and social life itself. I agree entirely with Steve that the best thing the UK can do, and does quietly, is to help in those technical areas—training judges, training the legal system—and to encourage China to do what it promises to do under the law at the moment. I am not sure whether another policy would have necessarily generated anything different. I think the changes will come from within rather than necessarily from without. Q4 Mr Roy: What ramifications will the changes in the leadership have for the relationship between the UK and China? Professor Breslin: I wrote a paper a few years ago called, “Do leaders matter?” in China. I suppose the answer should have been, “No, they don’t”, but of course the answer was, to put it accurately, “Yes, of course they do, but perhaps not quite as much as they did in the past and perhaps in different ways.” When Deng Xiaoping came to power, it was effectively a coup; it overthrew the leadership and you moved entirely in a new direction. That is not the way leadership change takes place in China anymore. The new leaders are a reflection of the balance of power and different interests in the Chinese political system. They got to be where they are because of those power constellations. When they come to power, they cannot immediately just go like that and act, ignoring those constellations of power; they are a reflection of that political system. So I think it is going to take perhaps another year or so before we really begin to see them implanting their own agendas internationally and, I think most clearly, domestically. Obviously we need to pay attention to who the new leaders are. This new generation of leaders are primarily social scientists rather than the technicians of the past. We obviously need to pay attention to them, but we need to recognise that China has become an increasingly complex and diverse polity, with more interests affecting policy, not just at the central level, but also in local government. We should not expect leadership changes at the top to have big, dramatic shifts in policy. I think it is going to be pretty much more of the same for the time being. Q5 Mr Roy: In the same vein, the UK wants to deepen its work in relation to the international work that China does, and to economic and commercial links. How should the UK Government interpret the changeover? Professor Tsang: May I deal with both questions? In terms of the leadership change, it would matter because the new leadership is much more confident and inclined to be assertive. The change in the rhetoric from Hu Jintao talking about a harmonious world, which is an extension of the domestic policy of promoting a harmonious society, to Xi Jinping’s promotion of a China dream is important. The China dream is, as the Foreign Office paper says, all about national rejuvenation or revival. What does that mean? That has not been clearly spelled out, but the reality is that China is already a veto-holding permanent member of the Security Council. No state in the world, post-Second World War, can enjoy a more distinguished status than that. What more can there be, apart from something that is inclined to be assertive in a way of reviving the old glory of the old imperial period? That, again, brings us back the history: the UK was the first country to challenge that in the 19th century. That may, in a sense, bring back a bit of the history there. There is also the issue of how things are unfolding in Hong Kong. If things do not go as well as everyone would like them to be in Hong Kong, we are likely to be blamed in some way. We have to bear cobber Pack: U PL: COE1 [O] Processed: [22-08-2013 10:15] Job: 031818 Unit: PG01 Source: /MILES/PKU/INPUT/031818/031818_o001_michelle_FAC 02.07.13 corrected.xml Foreign Affairs Committee: Evidence Ev 3 2 July 2013 Professor Shaun Breslin and Professor Steve Tsang it in mind that there potentially will be ramifications some time down the line. Of course, on the one hand, a more assertive China is welcome. I think we would like China to play a more proactive role as a member of the Security Council and as a responsible great power. On the other hand, if there is a lot of going back to what the history was, then we have reasons not to be completely comfortable. In terms of how we should focus on the economic and trade relationship, we really should focus exactly on economic and trade relations and try to insulate the politics from those as far as possible. I think that comes through as basically what the Foreign Office is trying to push. I don’t think there is an alternative to that. We have to bear in mind where the Chinese are coming from, but if we start off with a policy that assumes the Chinese are going to be doing anything more than just engaging with us economically and in trade relationships—then we are going to encourage them to do that. The only way we can do it is to focus on economic and trade relationships. We have a remarkably open economy, not only in terms of trade but in welcoming foreign investment. We should continue to do that with the Chinese unless they cross the line. If they don’t cross the line, I don’t see any particular problem. If they are going to invest, for example, in High Speed 2 and deliver a first-class product at a substantially more competitive price with the standards we require and expect, I don’t have a problem with that. We just have to make sure those standards are not compromised in any way for political, diplomatic or other considerations. Professor Breslin: One of the things the UK has done well over the years is recognised that there is more to China than Beijing and Hong Kong; some of its provinces are bigger than any of the European countries. Having a diverse set of relationships that deals with the provinces and looks at the different centres of power and economic growth in China as potential partners is a very good strategy. That is something the UK has done. We have offices across the country, but I think we can do a bit more about it. If I can come back to the last point you made, there is a lot of money in China that is waiting to come out. It is seeking access to markets, but it is also seeking technology and know-how. We need to have a debate about whether we are happy to be totally open to investment, of whatever sort. Maybe that debate needs to take place with people elsewhere. I know that in Washington, for example, there is considerable concern that Europe and perhaps Britain will be more open to trade and investment from China in areas that the United States is not very keen on. We have to trilateralise, if you like, our thinking on this. Q6 Ann Clwyd: You said that change will come from within China. What effect did the Prime Minister’s visit with the Dalai Lama last year have in China? Were there any repercussions? Professor Breslin: The answer to that is yes, there clearly were. There is a website—I wish I could remember its name—that documents the number of times the feelings of the Chinese people have been hurt by foreign dignitaries. It is almost always to do with interference in what are considered to be issues of China’s domestic national sovereignty, which foreigners have not only no right to discuss but no right to get involved in at all. Tibet is often one of those issues. It was quite clear that there was concern within China not only that the meeting took place; certain people whom I spoke to were wondering what the ulterior motives were behind it. They did not just see it as a meeting, but as a part of a greater attempt by the Government to do something to China. They couldn’t quite work out what, but they saw it as being that. They saw it as a deliberate political step, which needed to be responded to. It is something that has happened time and time again, not just to the UK but to other countries, with Nobel Peace Prizes and things like that. It is a fact of life in dealing with China today. Professor Tsang: I do not disagree with Professor Breslin about how the Chinese see this, but my opinion about how we should deal with it is slightly different. Who the Prime Minister of this country sees is a matter for the Prime Minister and the electorate of this country. It is not the business of any other country. In any event, when the Prime Minister saw the Dalai Lama, he made it very clear that he saw him as a religious leader in a religious establishment. That is not something for us to be uncomfortable or apologetic about. If the European Union were to act as one on this matter, I think the Chinese Government would respond in a different way. In terms of the United States, the American President would meet with the Dalai Lama and the Chinese would have business— more or less—as usual with the Americans. European countries can be divided and ruled. Therefore, we are being treated in a different way, until eventually one after the other a European Prime Minister or President will use a form of language that the Chinese Government will approve of before they will let that relationship be restored. If we want China to be engaged rightfully as a major, leading force in the world, we have to engage it in the way that it should be done, which is that we would not want in any way to attempt to dictate terms to China about how it should behave, nor would we accept China dictating terms on how we should behave. Professor Breslin: I do not disagree with that at all, but if the question is, “Did it create problems for Britain in China?”, the answer is yes. You might be right that it should not have, but it did. Q7 Ann Clwyd: Is there any point then in the EU human rights dialogue, or the UK human rights dialogue, with China? Is it best that those dialogues do not take place? Professor Tsang: We have to have the dialogue with China. It is important, even though the reality is that, in terms of the substance, it might not amount to all that much, but symbolism does matter, as does how it would be seen by a huge number of people in China and whether we really stand by what we believe in. Here what we are trying to do is not necessarily to preach democracy to China; the Chinese will choose what political systems they want to have. However, cobber Pack: U PL: COE1 [E] Processed: [22-08-2013 10:15] Job: 031818 Unit: PG01 Source: /MILES/PKU/INPUT/031818/031818_o001_michelle_FAC 02.07.13 corrected.xml Ev 4 Foreign Affairs Committee: Evidence 2 July 2013 Professor Shaun Breslin and Professor Steve Tsang when they do so, they want to know how democracies behave. They want to know whether democracies actually stand by the principles that democracies say they stand by. And we do stand by human rights, and if we are being seen as not standing by human rights we are discrediting the idea of democracy. While changes can only happen in China, the opening up in the relationship between China and the outside world has had a huge impact on how everything has developed in China in the last 30 years or so. Thinking in China has changed; people’s perspectives have changed. Ideas that previously were impossible for people to contemplate exploring as experiments or ideas that might perhaps be applicable to China have become applicable, because of the huge interchange in everyday contact, in Western ideas being available in China and in Chinese being able to travel outside China and see for themselves, go to our universities, have debates with our students and professors, and they develop their own ideas. We should continue to do that. Q8 Ann Clwyd: Of course, critics in this country always feel that the Government should be more robust in their exchanges on human rights, and that they are not robust enough. Professor Tsang: It always depends on what one means by being “more robust”. We have to understand the Chinese system for what it is. It is still fundamentally a Leninist system. I personally came up with the concept of “a consultative Leninism”, which is different from the old-fashioned MarxistLeninist system, but it is still fundamentally a Leninist system, which has clear red lines that it will not allow anybody to cross. When that happens, they will respond very strongly. So, if it is a matter of outside powers trying to impose certain standards of human rights on China, it simply will not be acceptable to the Chinese Government; they will not respond to that in any positive way. But on the other hand, there are plenty of things that we can do that our Chinese friends will pick up and they will not necessarily find them as being threatening to the survival of the regime. Within that framework, they will make changes that will have a significant impact on how human rights are being respected on an everyday basis in China. There is not a lot that we can do with political dissidents in China, but in general terms—about everyday human rights situations—we can. That is where I think we are delivering more results in those areas. I wouldn’t say that we are not being robust; just picking a fight, a verbal quarrel, with the Chinese will not necessarily get us the result, even though it may mean better soundbites for human rights organisations. Q9 Chair: I am sorry to interrupt. Two of us have to leave for 15 minutes, so Ann Clwyd is going to take the Chair. Please forgive us, and do continue with your answer, Professor Breslin. Professor Breslin: Going back to what I said before, if you look at human rights reports in terms of the number of people being arrested and so on, then yes, it does not seem to have resulted in any great benefits at all. However, there is an increase in dialogue; there is a space, and that space can open or close. At the moment, within Chinese universities, for example, I think it is tightening a little and the space for open debate and pushing for alternatives has closed a bit. But history suggests that it will go in waves. Just maintaining a dialogue may not seem very dramatic or make many news headlines, but it does slowly have results in exchanging ideas and opening societies. (Ann Clwyd in the Chair) Q10 Andrew Rosindell: If I could turn to the issue of Hong Kong, yesterday, we saw 400,000 protesters demonstrating on the streets, waving the former British colonial flag of the territory and demanding democratic reforms in that former British colony. Do you feel, 16 years after the handover of Hong Kong to the People’s Republic of China, that the UK has properly discharged its obligations to the citizens of Hong Kong, many of whom still consider themselves to be British and have huge loyalty and affection for the Queen and for the United Kingdom? Professor Tsang: I should perhaps declare an interest: I was born in Hong Kong and lived my first 21 years there before I moved to this country to study. I then stayed on and lived here. Hong Kong is a very difficult issue for us. I totally understand why people in Hong Kong would be raising the colonial flag. The affection for this country is very genuine, as is the acceptance of the values that this country represents. However, raising the colonial flag, or a modified version of it, in Hong Kong, is as unwise as it could be in the situation in which Hong Kong finds itself. The Chinese Government are very sensitive, rightly or wrongly, about the British connection to Hong Kong. They are prone to conspiracy theories, and would be thinking that perhaps there is a British “black hand” somewhere behind that is stirring things up. That is not going to make the Chinese Government willing to allow Hong Kong a greater degree of freedom and a faster pace of democratisation at all. The one thing about the Chinese Communist Party and democracy is that it is not opposed to democracy, it just wants to make sure that all the results are known and approved by it beforehand. But Hong Kong wants a version of democracy like ours, where the electoral result is uncertain by its very nature. That is not something that the Communist Party is willing to accept, but if they think that Hong Kong wants to have a degree of self-government and a higher degree of accountability of the Government to the local people, without in any way posing a challenge or threat to Chinese sovereignty in Hong Kong and the security of the Communist Party in all Chinese territories, then they would actually be more willing to accept that. To revive nostalgia about the colonial period simply is not going to set the Chinese Government at ease and therefore is not going to deliver the results that people in Hong Kong would like. I know that it is counterintuitive, but there you are. Q11 Andrew Rosindell: Do you feel that maybe Beijing is misjudging this and that if they were to allow Hong Kong to strengthen its links with Britain cobber Pack: U PL: COE1 [O] Processed: [22-08-2013 10:15] Job: 031818 Unit: PG01 Source: /MILES/PKU/INPUT/031818/031818_o001_michelle_FAC 02.07.13 corrected.xml Foreign Affairs Committee: Evidence Ev 5 2 July 2013 Professor Shaun Breslin and Professor Steve Tsang and with the Commonwealth, that that would not only settle things in Hong Kong and make the people of Hong Kong feel happier, but give China a voice elsewhere? For instance, if Hong Kong were to be encouraged to join the Commonwealth, where it would feel very much at home—many of the traditions in Hong Kong emanate from Britain—it would feel part of the Commonwealth family. Do you not think that it is time to allow the people of Hong Kong that opportunity, which has been given to every other former British colony? Professor Tsang: What you say, sir, makes perfectly good sense, it just will not be acceptable to the Chinese Government. I completely agree with you that if the Chinese Government would give Hong Kong a complete free hand, through autonomy, to develop its own political systems as people in Hong Kong would like it to do, people in Hong Kong would feel a stronger sense of Chinese patriotism. There is no real contradiction in Hong Kong developing a different political system from what is in place in China and still feel very proud of being Chinese and being able to help with the development of Mother China and all that. Stronger connections with the Commonwealth, in whichever form, will not necessarily be exclusive to that development. I have absolutely no difficulties agreeing with that, but for the Chinese Government to contemplate that, I think is just completely, with all due respect, unrealistic. They will not think that; they are not capable of thinking it in those terms. idea that force might actually need to be used was sort of parked to one side, rather than being taken more seriously, so that has changed. But the Chinese Government have also come to realise that the democratic politics in Taiwan mean that they cannot be sure that, after the next election in Taiwan, the new Government in Taiwan will necessarily be one run by the Kuomintang and therefore more willing to engage in dialogue with the mainland. The Chinese Government say that they are willing to engage in dialogue with the Democratic Progressive Party in Taiwan, but there is a precondition, which is that the DPP will have to accept a one China principle. When the Kuomintang is in power in Taiwan, the issue can easily be fudged, because the Kuomintang has its own version of the one China principle. It is just a different version of the one China principle being expounded by the PRC in Beijing. Because they talk a language where they can easily talk past each other, they do not have to challenge it and there is no need to deal with it. Because the DPP is not willing to buy into that dialogue explicitly—implicitly, in fact, the DPP does accept that, but it is not willing to accept that explicitly—the Chinese Communist Party has a problem with that, and there is a basic mistrust of a DPP Government. So things can change. Q12 Andrew Rosindell: In your view, is China being reasonable or acting like a bully? Professor Breslin: Can I add something which perhaps comes back to your previous question? Beijing’s policy towards Hong Kong is not just about Hong Kong, it is about Taiwan as well. There is always a thought to sovereignty and making sure that Taiwan does not act like an independent sovereign state. Membership of organisations that are not organisations for states, such as the World Trade Organisation, which is for an economic territory, is one thing, so you can have Hong Kong and Taiwan under some obscure name also being members of the World Trade Organisation alongside China. When it comes to something that makes it look like a separate independent state, where Beijing does not have the ultimate monopoly of authority, it is simply not on the agenda as far as China is concerned. Q14 Mr Roy: So in 2016 you expect, if the DPP are elected, to see a change in attitude? Professor Tsang: If there is going to be a change in Government in Taiwan, with the DPP in power in 2016, I think the Chinese Government will re-adopt the policy it had from 2000 to 2008, which was to watch the acts of the Government in Taiwan and listen to its words to see whether it was doing anything that could be seen as transgressing China’s bottom line. Some of the things that are being tolerated, for example, the current de facto diplomatic truce between Taiwan and China, might well be withdrawn. A few of Taiwan’s diplomatic allies probably would be quite willing to switch recognition if the Chinese Government says that it is time for them to do so. Things can change and things can get rather more tense, but it does not necessarily mean that that relationship will immediately get into a crisis point. The economic relationship between the two is now very strong. It would be extremely expensive and painful, even for China, for that relationship to be upset. It would be fatal for Taiwan, but it would be extremely expensive for China. Q13 Mr Roy: Over the last 10 years, there has been a huge change in the relationship between Taiwan and the mainland and an awful lot more people-to-people contact. Has the fact that there is now so much dialogue between people made a difference to the political attitude in China? Professor Tsang: The easing of tension between China and Taiwan since 2008 has certainly had a major impact on how their relationship is being handled. Between 2000 to 2008, that relationship got very, very tense and the risk that force may have had to be used increased. I do not think it got to a point where it would have been used, but it was certainly increasing. After 2008, that tension reduced and the Q15 Mr Roy: The United Kingdom has bilateral relations with China and with Taiwan. Does that cause a problem? Professor Breslin: As long as everybody accepts the formal position of one China, you can push at the edges of that in the good times, like now, in terms of what you actually do. As long as you maintain the formal position that there is only one China, only one state and only one true representative of China, you can fudge around the edges. It is when you start suggesting, implying or even hinting that maybe there is one China and one Taiwan, or maybe there are two Chinas, that you change the nature of the game entirely. cobber Pack: U PL: COE1 [E] Processed: [22-08-2013 10:15] Job: 031818 Unit: PG01 Source: /MILES/PKU/INPUT/031818/031818_o001_michelle_FAC 02.07.13 corrected.xml Ev 6 Foreign Affairs Committee: Evidence 2 July 2013 Professor Shaun Breslin and Professor Steve Tsang Q16 Mr Roy: What are those changes? I remember during the Olympics last year that China complained straight away when the Taiwanese flag was put up in Regent Street. Is that the type of thing? Professor Breslin: Exactly. In the Olympics, it is not Taiwan as a state that is taking part. In the World Trade Organisation, it is called the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu (Chinese Taipei). As long as you play the diplomatic niceties, you can have the relationships without having the formal diplomatic relationship. However, many years ago, in the International Studies Association, an academic body, there was a representative, I think, of the Taiwan Political Studies Association, and that caused problems. If it had been called the Chinese Political Studies Association (Taiwan), that would have been fine, but calling it the Taiwan Political Studies Association indicates that Taiwan is a separate entity, which is not okay. You have to create the formal diplomatic position, and then people are prepared to be a bit more flexible as long as you accept that formal situation. Professor Tsang: I would just add that there is this objective dimension to it, which is the British policy, and there I think we are all on the same page— depoliticise it and do it as a practical matter, which HMG is already doing. Then there is the context of it, which depends on the relationship between China and Taiwan. In the post-2008 context, the UK offering visa-free entry to passport holders from Taiwan has not caused a problem, because it has been seen and accepted as a practical matter with no political connotations or implications. If that had happened before 2008, however, the chance that Beijing might have raised objection to it and might have seen this non-political act from a political angle would have been substantially higher. It is not entirely up to us, but we have to do the right things. Up to this point, the Foreign Office has got that right. Q17 Sandra Osborne: You have talked about the influence of Chinese people going abroad and seeing what it is like in other countries. Have there been any repercussions for the Chinese Government from the uprisings related to the Arab Spring? I know that the new leader, for example, has put emphasis on anticorruption policy, but 90% of the millionaires are related to higher-up members of the Communist Party. Could such issues lead to instability in the political system in China? Professor Breslin: There are two things we need to separate out. One is the dissatisfaction that clearly exists within the Chinese political system and the other is the impact of the Arab Spring. Dealing with the first one, if all you ever read that came out of China were things produced by the Communist Party’s own research done at the Central Party school, you could be forgiven for thinking that this was a country on the verge of revolution. The Central Party school’s job is to look out for the dissatisfaction and to try to analyse what is causing it and its political potential. If you go right back to Jiang Zemin, you will find leaders talking about how corruption can bury the Party and that it has created mistrust between the people and the party. There is a very clear awareness within the Party itself that the links between the people and the Party are being stretched very heavily by things such as corruption and land sales. The single biggest source of income for local governments is selling the right to use land. In 2012, according to official reports, 22% of all mass demonstrations—it did not say how many—were because of land seizures and demolitions, as local governments kicked people off the land. There was an effective uprising in Wukan that overthrew the local government. There is a wide range of dissatisfaction and people are well aware of corruption, inequality, inequality of access and land seizures. If you have been to China recently, one of the interesting things is that environmental problems are getting closer to the top of the list. Quite frankly, Beijing is not a place where you would particularly want to spend a lot of time, although it is better than it was in February. There is a whole range of issues. My friend John Kennedy refers to it as the TV and the window. You look at the TV and you see this great, rich, prosperous China with good leaders and growth and stability, but then you look out the window and see corruption, the local party cadre’s children behaving as if they are outwith the law, and environmental problems. At the moment, the blame is local, so there are all these dots of disaffection spread around the country. It is almost as if the regime’s job is to prevent the dots from joining up and becoming something else. That problem is there and there is recognition of it. Whether the much vaunted strategy of dealing with corruption will actually come up with any great concrete results, I have my doubts, because we have heard it so many times. The Arab Spring is very interesting, because at first there was concern about it. There were clampdowns on the internet on discussions about it and there was a smallish demonstration in Beijing, although it was difficult to work out who were the demonstrators, who were the police and who were the journalists trying to take photographs of the demonstrators and the police. There was some concern that it would have a spill over, but I am not sure now that it has not necessarily acted in the opposite direction in that there was an editorial in the People’s Daily that said—I am paraphrasing—“Is that what you want? Is all the chaos that everybody went through in the Middle East worth it when you end up with this? You have death and economic collapse. You end up with no functioning Government. Is this really what you want?” One of the things that the CCP has done quite successfully is establish a discourse of instability, if you like—that instability is just around the corner and what we need is a really strong stable party to maintain stability and to be able to govern the country and ensure that we don’t fall into chaos, and that we have the stable political system that you need where you can obtain your greater economic fortunes. While that dissatisfaction is still very much there and while a lot remains to be done, I think one of the key political reforms that needs to take place is to give people a voice. Many people within the CCP think that as well, not multi-party elections but for people to have a voice. I am not sure that the Arab Spring cobber Pack: U PL: COE1 [O] Processed: [22-08-2013 10:15] Job: 031818 Unit: PG01 Source: /MILES/PKU/INPUT/031818/031818_o001_michelle_FAC 02.07.13 corrected.xml Foreign Affairs Committee: Evidence Ev 7 2 July 2013 Professor Shaun Breslin and Professor Steve Tsang moved things in the direction that we might originally have thought; rather it has refocused attention on the dangers of chaos, disorder and collapse—the things that we are seeing at the moment. Professor Tsang: In terms of corruption, the Party certainly takes it extremely seriously, which is exactly why the first thing that Xi Jinping said after he took power was that he would be anti-corruption. I share Shaun’s scepticism about how they would deal with it but I don’t think we should dismiss the efforts to deal with corruption as pretty irrelevant. You don’t have to have a campaign to eradicate corruption for it to be credible. What is being done in China is a campaign to contain corruption, to eliminate ostentatious display of corrupt acts and the benefits of ill-gotten gains. If people suffered from a relatively low level of corruption without that kind of ostentatious display then that discontent could be contained. That is basically what the Party is trying to do. The indications so far are that it is effective and having the desired effect—up to now. On the Arab Spring I would agree with what was said. Over time the opposite effect has been delivered. Perhaps that might be related to Chinese policy in the Middle East. Where I think we should draw a lesson from the Arab Spring was right in the heady days of the Arab Spring when things were going well, when the protests were being organised in Beijing, and how it was nipped in the bud when there were suggestions that those of us who shared the sentiments of Cairo and Tunisia should take a walk in the centre of Beijing. The Government immediately sent many times more police officers on to the streets than there were demonstrators, showing quite clearly that the means, the political will and the instruments to deal with this effectively right away and very powerfully are right there—“Don’t even think about it.” Essentially it was a Dirty Harry moment—“Make my day”. They did not make the Party’s day and that is something that we have to learn in terms of how they manage that kind of challenge if and when they see it emerging. Professor Breslin: Do we need to move on? I would like to mention briefly two things that could spark trouble over the next year. Q18 Chair: Yes, please do. Professor Breslin: One is property bubbles bursting, and the connected issue of banks and investment trusts going bust. We could see some localised, but quite big, problems if investment trusts and connected property bubbles burst. Q19 Rory Stewart: What is China’s view on the consensus of international foreign policy making? Since the 1990s the whole theory of international action is based on ideas of trying to avoid state fragility, failed states and rogue states and to invest in governance and the rule of law, eliminate poverty and so on. These are the kind of arguments that underlie any international appeal to China, whether we are talking about Afghanistan, Syria, Libya or subSaharan Africa. Does China accept those arguments and, if not, does China have a radically different view of the international system and what the obligation of international actors should be? Professor Breslin: There has been a lot of debate within academic circles and in China about the global order and China’s place within it and what it should look like. Some of those debates include people talking more in Western conceptions of global order. What we saw over Libya was the high point of the manifestation of a growing move towards consensus. It was not just that China did not veto the no-fly zone, which was, I think UN Security Council resolution 1973; China voted in favour of referring Libya to the International Criminal Court, which I think was resolution 19711. In some ways, that was a high point of the movement towards this consensus, but what happened in Libya, someone told us, was that it killed the baby at birth. There was no desire in China for regime change. They might have been prepared to bend and push and fudge the concept of sovereignty, but since then we have seen a move back and a bit of a backlash against those who were pushing the more liberal global world order line. Q20 Rory Stewart: Who are the Chinese foreign policy thinkers who are thinking about what the global order should look like and where the world should be going, regardless of what role China plays in creating it? Professor Breslin: There is a range of people thinking about that. The Ministry of Foreign Affairs in China has, I think it is fair to say, a not particularly high status in the hierarchy of the bureaucracy. The leading Chinese diplomat is the state councillor, but he is not in the Politburo, so he is not in the top 30. There are a whole load of research think-tanks, such as CICIR, which is associated with the Security Bureau, and the Chinese Academy of Social Sciences. There are also leading intellectuals at universities, such as Tsinghua University, who are perhaps individually connected, or have been individually connected, to specific leaders. A lot of it is driven not by thinking about the global order, but by thinking about China. You cannot get away from that. It is a country where you do not think about the global order without thinking about China within the global order. As China’s own commercial interests expand across the world, it is forcing a rethink about absolute conceptions of non-interference and sovereignty, because it is no coincidence that China behaved in one way over Libya, where it had significant economic interests, and in another way over Sudan, where the oil companies were significant drivers of policy. China is now behaving in an entirely different way over Syria, where it does not have the same economic interests. A lot of it is driven by a need to respond to the reality of the actualities of China’s international interactions these days, which are no longer simply diplomatic or at the United Nations. They are in terms of big companies and small independent traders expanding China’s economic contacts and reach across the world. It has left Chinese thinking, at times, struggling to catch up with reality. 1 Note by witness: The reference should be to resolution 1970 cobber Pack: U PL: COE1 [E] Processed: [22-08-2013 10:15] Job: 031818 Unit: PG01 Source: /MILES/PKU/INPUT/031818/031818_o001_michelle_FAC 02.07.13 corrected.xml Ev 8 Foreign Affairs Committee: Evidence 2 July 2013 Professor Shaun Breslin and Professor Steve Tsang Professor Tsang: The Chinese fundamentally do not accept humanitarian interventionism, which came forward at the end of the Cold War. Basically, they still see humanitarian interventionism as an instrument of the Americans. It is therefore American interventionism, so they simply do not accept it. That may or may not be an accurate analysis of the situation on the ground, but that is how they see it. In terms of interventionism, they uphold the principle of non-interventionism, but the application is very selective. In many ways, it is going back to a pre-UN situation of how national interest is calculated and put forward. The rest of the world—I am referring to the leading great powers—have had a go and have been dominant, but the Chinese have not had that yet and they feel they should have a right to the same. You have a bit of a contradiction there. Q21 Rory Stewart: Just to push this specifically, how would China, aside from the question of the United States, view Afghanistan or Syria? What would China think its interests were in that kind of country? What kind of state would they like to achieve? Are they interested in stability? Are they interested in regional stability or simply in being able to extract minerals? What would be the vision of a Chinese policy maker in relation to that? Professor Tsang: It is context driven. In terms of Afghanistan, the Chinese were happy over the last 10 years when the Americans were completely tied down and sucked into it, with the American defence agenda completely distorted by the Afghanistan involvement. That was fine, but they will have to rethink once the Americans get out of Afghanistan, when the situation on the ground in Afghanistan will change; they will have to think about how much more involvement they have. At the moment, the Chinese benefit in terms of extraction of minerals and similar activities in Afghanistan more than any other leading power in the world, without actually having to pay much for it. That works, but the context is going to change. They are not unhappy with how the situation is in Syria at the moment, particularly since the Russians are taking the lead and therefore carrying all the blame for what is going on in Syria; but fundamentally, Chinese policy is not different from that of the Russians. Q22 Rory Stewart: To what extent does China see its own domestic economic and political system as a model that could be exported? Is it looking at other countries for people to run systems similar to the Chinese system? Professor Breslin: The Chinese model, as I see it, is not the projection of a model, but the negation of a model, if that makes sense. I think the Chinese model is: “Don’t follow A, B, C, D, E, F, G”—what we did—probably because it is impossible to do that. “But what we have done is show that you do not have to do it how they are telling you to do it. We are not telling you to liberalise; we are not linking aid; we are not telling you to do this; we are not doing that. You do what works best for you.” It is not the promotion of a specific alternative model that you can pick up off the shelf and put down and follow, but what it is very clearly saying is that the Western model, the Washington consensus, is delegitimised: “We have legitimised alternative ways of doing things. We are now saying that we will be a partner with you and we will not tell you what to do. So if you want to go and develop your own system, you can.” It is not a model so much as almost a metaphor. Q23 Mike Gapes: What you are saying is that the Chinese are not driven by an ideological position with regard to their foreign policy or investments abroad; it is much more commercially driven. Because of the pragmatic approach, they will basically not raise questions about human rights or other matters. They will simply get their commercial interests and enterprises into whichever country without any qualifications, and they do not have any hang-ups about that. Is that what you are saying? Professor Breslin: Not without any qualifications; there are some qualifications. Increasingly, Chinese companies want to make sure that their investments do not go pear-shaped. They want guarantees and they are looking for legal structures that ensure their money is safe. Of course, Taiwan is an issue, although as China has recently engaged the Caribbean states in a much bigger way, a number of the countries that recognise Taiwan have been invited to investment meetings and so on. (Richard Ottaway in the Chair) Q24 Mike Gapes: So there is a strategic political issue as well? Professor Breslin: There are two, maybe three, strategic dimensions. One is that you need to make sure the numbers count in the game of global governance, so if there are ever votes in the United Nations condemning China, you want people on your side. There is an element of that. Part of it is an element of—a feeling of—national pride or national image promotion. If that is national pride and image promotion sometimes at the expense of Western powers, that is not so bad. There is a real attempt in the way that China deals with other developing countries to promote a preferred national image of China as being very different from the West, as not a coloniser—not unequal asymmetric economic relationships, but a country that will deal with you as an equal, and is also a developing state that was colonised. There is an element of ideology, or you could call it national image promotion. Again and again, the evidence from talking to people, particularly within the political and foreign policy administration in Beijing, is how difficult they are actually finding it to control the economic activities that are increasingly taking place, either driven by the big state-owned enterprises, because they are big and powerful, or increasingly by a number of smaller economic actors who are outwith their control. At times, people complain that the image of China has been tarnished by economic actors they cannot control. Professor Tsang: There may not be a specific ideology that the Chinese promote, but their approach is not completely non-ideological. There is an idea that they need to protect the right of non-democratic cobber Pack: U PL: COE1 [O] Processed: [22-08-2013 10:15] Job: 031818 Unit: PG01 Source: /MILES/PKU/INPUT/031818/031818_o001_michelle_FAC 02.07.13 corrected.xml Foreign Affairs Committee: Evidence Ev 9 2 July 2013 Professor Shaun Breslin and Professor Steve Tsang systems to be totally acceptable as a legitimate system of government in the world. The idea that the end of history is democracy as the system for all is something they fundamentally reject. That is a fairly ideological position to take, even though they are not actually advocating a particular ideology in terms of exporting the Chinese model to the West. There are also elements of a definitional issue—that certain actions being taken by the Chinese Government are, by definition, not imperialist, not colonialist and not exploitative. Whatever those actions are on the ground, there may be situations in African countries when African people, in contrast to their Governments, might take the view that the Chinese are behaving like the European imperialists of the 19th century, but the Chinese will say that, because they are Chinese, by definition that simply cannot be true. Professor Breslin: It is a non-normative, normative position. It is a normative position that says there should be no normative position, which by definition makes it a normative position. Q25 Mike Gapes: In terms of the consequences for the relationship between the UK and China, we are both members of the Security Council. We have very close co-operation on lots of issues, but we have a completely different value system with regard to international institutions. The UK seeks to promote transparency, accountability and good governance, and the universal human rights agenda going back to 1948 is part of our foreign policy ethos, whether we uphold it not, whereas China has a completely different approach. Is that what you are saying? Professor Breslin: Yes. Again, it might be different on the ground. Not only is it completely different, it is deliberately explicitly shaped and created against the Western concept; it is occidentalism. It is explicitly saying, “They do that, and we don’t.” Q26 Mike Gapes: That is a problem for the UK, particularly in Africa, but also in other parts of the world. The way we approach particular Governments or regions where there might be internal conflicts or human rights abuses would be completely different from the way the Chinese see it. Professor Breslin: Yes, I think that is right. I come back to the point that it might not actually be like that on the ground where Chinese companies go, but the official foreign policy rhetoric/dialogue/approach creates a difficult situation. It is easy for us to ask what does China want from Africa, what does China want from the Caribbean. More often, we should be physically asking, “What do you want? What do Africans and people in the Caribbean want from China?”, and turn it round the other way. We held a seminar in Beijing, and it was “no strings attached” investment. Q27 Mr Baron: China and Russia often come to the same position on major foreign policy issues—Libya and Syria being two recent examples. They have an uneasy bilateral agreement. Can you explain how China gets to its position? What role, if any, does Russia play in its thinking? What does the UK have to do to tease China in its direction, when it comes to the UN and considerations relating to, say, Iran or Syria? Professor Tsang: The relationship between China and Russia happens to coincide in terms of their calculations of interest at the time. I do not think that we shall be able to entice the Chinese away from the Russians. The Chinese would have taken the positions that they are taking over Syria anyway, and if they had thought the Russians would take a much more robust position over Libya, they might well have taken that position, too. The big difference between the Russians and the Chinese is that the Chinese Government would like China to be loved and admired. The Russian Government under Putin is more interested in asserting itself, showing that if we cannot get things done, at least we can obstruct things. Often, the Chinese would like to do the same thing, but they are not really quite as willing to pay the reputational price that the Russians are simply, happily paying, and therefore there is that partnership. In terms of Iran and countries like North Korea—I think North Korea is a slightly different situation— the Chinese are not really going to be amenable to what we are trying to push for. Their interest there is primarily one of energy security and also making sure that a country like Iran is not being simply bullied by “the West” into a certain course of action, which would then be bad for countries like China, for that informal solidarity of non-democratic states. Realistically, I do not think there is a lot we can do to get the Chinese to be— Q28 Mr Baron: Can I just press you? Then we must bring in Professor Breslin. Is it more or is it a combination? In which case, which has the upper hand? Is it a view, case by case, of the individual issues, or is it what you are perhaps suggesting—that it is an alliance facing the West, because of the powers they see on the other side of the equation? Professor Tsang: For us, we have to deal with it on a case-by-case basis. There is no reason and no point in taking an ideological approach on something like this, because if we did we would be going back to what the Chinese often say: “That is the old Cold War mentality being resurrected”. We do not have that. That is gone—finished—but they are still often trying to see things in that light. The only way we can try to engage with them is on a case-by-case basis and put the merit of the case forward, and make the most of the fact that they want to be accepted, embraced and respected. Therefore there is more scope, in that sense, to engage with them and persuade, than we have with the Russians, when their interest is in fact to show that they can obstruct. We just have to ensure that if you want the Chinese to be on board, they are part of that process—who will carry a lot of the credit for a good policy being delivered. Professor Breslin: I do not have too much to add to that. I think China is actively seeking what we might call alliances of the dissatisfied, so that it does not stand out as being just dissatisfied on its own. The BRICs are an example of that, relations with Russia are another one. But I really think it comes down to the relationship, and how strong that relationship is cobber Pack: U PL: COE1 [E] Processed: [22-08-2013 10:15] Job: 031818 Unit: PG01 Source: /MILES/PKU/INPUT/031818/031818_o001_michelle_FAC 02.07.13 corrected.xml Ev 10 Foreign Affairs Committee: Evidence 2 July 2013 Professor Shaun Breslin and Professor Steve Tsang depends on China’s material and strategic interests in each individual case. It has direct, specific energyrelated strategic interests in Iran that it does not have in Syria, which means that perhaps there is more of an opportunity to explore those energy situations in the Iranian case than in Syria, where I think it is difficult, because— Q29 Mr Baron: So moving this to the East and the South China Sea territorial disputes, you are suggesting that this is more a tilt at the US, perhaps, than it is to do with eastern Asian regional politics. What is the mix, as far as you can see it? Professor Breslin: In the South China Sea? Mr Baron: Yes. Professor Breslin: Perhaps this is pushing things too far, but I think what happened after the financial crisis was that there was a renewed self-confidence. I slightly disagree about the new leadership. I think that new confidence was there in the Chinese leadership that emerged during that period, and a greater willingness, at that point, to assert what the Chinese call their core interests: that the time had come for China to start asserting its core interests, where the foreign powers—particularly, in this case, the United States, really had no right in saying, “This is our sphere of influence. This is our back yard. We are going to now try to be increasingly the power within this area.” For a country like the UK, it is difficult to be an actor within that power constellation, because we do not seem to have the same strategic relationship. Professor Tsang: For something like this, we have to remember that the Communist Party has a monopoly on the truth and a monopoly on history. It is the result of that monopoly which guides it in its particular actions. If you take a map and look at the infamous nine-dash line, it is hard to see how that could be historic Chinese territory, but they believe in it because the history they have internalised makes them think that is really the case. That is how they can see that as genuine proto core interests. They did not say that this is core interests; they allow possible deniability. They allow people to assert that and, if all those statements are not challenged, they become accepted by the international community and then become core interests. Hillary Clinton challenged that in Hanoi in 2010 and the Chinese Government backed off from that. But, having done so, they are still putting themselves in a situation where the nationalism narrative has become so important that the Government cannot back off from it. So they got into a situation where, from the regional perspective, they have the image of being a regional bully, which is not what the Chinese Government would like to project in terms of their image in that part of the world. What Xi Jinping has done in the last couple of months is to try to get it into a more nuanced way and adopt the principle of the united front in dealing with SouthEast Asia and ASEAN, which, essentially, is to highlight how important ASEAN’s relationship with China is, and how much China values its relationship with ASEAN. But there is only one member of ASEAN, namely the Philippines, which has been causing trouble in that relationship, which is over that little band of islands. But we have been very reasonable. The fundamental principle of the united front is to identify friends from enemies. In the simplest form, the region is divided into three parts: you have me; you have, on the opposite, the principal contradiction; and the intermediates are in between. Once you can identify your principal enemy, you win over as many as possible in the intermediate zone, you destroy your enemy and you move on to your second enemy, who becomes the principal enemy, and you repeat that process until you have all friends and no enemies. That is what they are doing in the South China Sea. Q30 Sir John Stanley: I wish to declare an interest. A fortnight ago, I attended the annual meeting of the UK-Korea Forum in South Korea. The visit was funded partly by the UK-Korea Forum and partly by the Korea Foundation. Since the accession of Kim Jong-un to what I would describe as the family throne in Pyongyang, there has been a material toughening of the Chinese position towards North Korea, notably in the United Nations and in the PRC’s position on UN Security Council resolutions. I have two questions to put to you. First, how far do you believe that China is prepared to go, beyond where it is now, in increasing still further the pressure on the DPRK to ensure peace in the Korean peninsula and, in particular, to try to end the nuclear weapon capability of North Korea? My second question is: do you consider that, whatever the degree of pressure exerted by the PRC, Kim Jongun and his regime are, or are not, ultimately able to resist it, and will resist it in order to pursue their policies at whatever humanitarian cost to the people of North Korea? Professor Tsang: Peace, definitely. The nuclearisation of North Korea is the publicly articulated policy, but they are not prepared to pay the price for it. Peace and stability in the Korean peninsula is clearly in China’s national interest. They clearly want that—there really is not much doubt about that. They would have preferred North Korea not to have developed nuclear capability, but to remove that is a very different issue and that is something that the North Korean Government and Kim Jong-un understand. It is not so much a matter of Chinese national interest in the conventional sense. The crux of the matter is not North Korean refugees coming into China, should there be an implosion or something like that. The real crux of the matter is that there are only three other quasi-Leninist regimes left in the world, of which Cuba is a bit too far and not so relevant. Vietnam is not exactly a friend of China. North Korea is the only one there is. Therefore, the risk of that ending and the implications for the Communist Party’s rule in China is too much to contemplate. That is what defines the limits of what the Chinese are willing to do. They will be very happy to restart a six-party talks process, whether it delivers the results or not. But to go that extra mile to secure the disarming of North Korea of its nuclear weapons requires something that I do not think the Chinese cobber Pack: U PL: COE1 [O] Processed: [22-08-2013 10:15] Job: 031818 Unit: PG01 Source: /MILES/PKU/INPUT/031818/031818_o001_michelle_FAC 02.07.13 corrected.xml Foreign Affairs Committee: Evidence Ev 11 2 July 2013 Professor Shaun Breslin and Professor Steve Tsang Government are prepared to do. With North Koreans understanding the limit, there is therefore a limit on the pressure the Chinese can have on North Korea. If the North Koreans believe the Chinese would go that extra mile, then I think the North Koreans will behave as the Chinese require them to. At the moment, I don’t think they will. Professor Breslin: North Korea was a deal. The deal was that China would prevent the West and the United States from imposing extra hard sanctions on North Korea. In return, North Korea had to allow China to show that it was capable of guaranteeing peace and controlling North Korea. When North Korea has tested missiles it has let China down and it has almost been a failure of Chinese foreign policy. The deal was, “If we stop them doing this; then you don’t do that.” I think you are exactly right. It is a really nasty foreign policy situation for the PRC to be in. They don’t want the North Koreans to do what they have been doing, because that makes it look as though they are not able to guarantee peace or become the main arbiters of peace without the West intervening. At the same time, they cannot be seen to be backing the United States, because that would create huge problems for domestic politics and the Chinese world view about the hegemony of the Western powers. The idea of disarming North Korea or North Korea collapsing or North Korea becoming occupied by the United States or South Korea is not very palatable either. It has left the Chinese in quite a difficult position. However, I understand that, although there were not many high-level talks after the assumption of the family throne, as you say, they have now stepped up a little bit. Perhaps the Chinese harder words have generated some response from Pyongyang. Q31 Sir John Stanley: Is there not another key dimension to this in Beijing? If the DPRK continues with its nuclear weapon capability, in Beijing they must surely calculate that there could come a point where the Japanese decide to change their non-nuclear policy. Is that not becoming an ever-greater concern to the Chinese, particularly as, according to all the assessments in the public domain, the Japanese nuclear breakout could be achieved in quite short order? Professor Breslin: It is a real concern in Beijing that it legitimises theatre missile defence being expanded in Japan; that it legitimises a rethink of the peace constitution; that it legitimises a move towards a stronger military presence—absolutely. It is a real headache for Beijing in those terms, as you have said. Professor Tsang: I disagree with that. I think the Chinese have huge mistrust of the Japanese. They are always talking about Japanese re-militarisation and such things. However, they know that unless Article 9 in Japan is changed, that is not going to happen. They do know that the Americans are not going to allow Japan to acquire nuclear weapons, even though the Japanese can have that capability relatively quickly. Professor Breslin: It does not have to be nuclear weapons to be a major threat. Professor Tsang: Well, the Chinese know the Japanese rules of engagement very well. In the way that they are managing the East China Sea maritime disputes, the Chinese have totally used to their advantage the Japanese rules of engagement, in terms of what they can or cannot actually do. For example, the locking of radars on Japanese destroyers—they knew that the Japanese could not actually respond. Professor Breslin: At the moment. Professor Tsang: And they knew the Japanese could not reveal the information in terms of how they established that the Chinese had locked their radars on the Japanese. Chair: I thank you both very much indeed. It has been a very helpful session to us and a lot of use. Thank you for your time; it is much appreciated. Examination of Witness Witness: Mr Nigel Inkster, Director, Transnational Threats and Political Risk, International Institute for Strategic Studies, gave evidence. Q32 Chair: May I welcome Mr Nigel Inkster, Director of Transnational Threats and Political Risk at the International Institute for Strategic Studies? Thank you very much for coming. Is there anything that you wanted to say by way of an opening statement? I have a general first question if you would prefer it. Mr Inkster: I am happy just to take questions. Q33 Chair: From a foreign policy and security point of view, has Britain got its relationship with China right? Mr Inkster: I am not entirely sure that we could be doing things very differently from the way that we are. I read with interest the report produced by the Foreign Office for your Committee, which I thought was a very workmanlike document, but failed perhaps to make the point that whereas the United Kingdom sees the relationship with China as one of its key bilateral relationships, the converse does not necessarily apply to the same degree. As Professor Breslin said, the way China looks at a country such as the United Kingdom is very context-dependent; there is no single perception and no single relationship. In the past, together with other European countries, our collective attitude towards China—particularly during the 1990s when they were keeping their heads down and effectively eschewing a foreign policy or even a defence policy—probably did not do us too many favours. We sometimes adopted a rather patronising approach in areas such as human rights; we perhaps made that too salient a factor in our overall approach. The reality is that when one looks at what we want from China, we come across increasingly as the demandeur here. China has other options; we do not cobber Pack: U PL: COE1 [E] Processed: [22-08-2013 10:15] Job: 031818 Unit: PG01 Source: /MILES/PKU/INPUT/031818/031818_o001_michelle_FAC 02.07.13 corrected.xml Ev 12 Foreign Affairs Committee: Evidence 2 July 2013 Mr Nigel Inkster have any other option but to deal with China and to make a variety of accommodations. I sense that there is a greater element of realism coming into our approach—a necessarily more pragmatic approach to dealing with China that I think simply reflects the relative balance of power between the two countries. Q34 Chair: The Prime Minister famously met with the Dalai Lama last year. How serious a problem is that? Is it a storm in a teacup? Mr Inkster: It was perhaps less of a storm in a teacup than it has been in the past. We were pretty much put in the deep freeze for about 18 months, with an almost total ban on top-level contact. That said, quite a lot of business was being done on a day-to-day level that did not get affected by that decision, but we were a long time in the deep freeze—longer than we have ever been—and that perhaps should give us some pause for thought. I agree with Professor Tsang that, at the end of the day, the United Kingdom must maintain the right to talk to who it wants to talk to, but—as with all these things to do with China—there are ways of dealing with these situations. Q35 Chair: Turning to cyber-security, there is widely perceived to be some sort of threat to the United Kingdom from Chinese behaviour in this field. Is that a fair comment? Mr Inkster: Yes, to a degree, but we need to bear in mind the Chinese perspective; they see themselves as very much under threat in this regard. This is one of those areas where, of course, all of a sudden we become, so to speak, handmaidens of the United States—or rather partners of the United States—in a situation of global cyber-domination. The impression of that has simply been reinforced by all the revelations made by Edward Snowden in recent days. The Chinese themselves have a considerable sense of vulnerability here. The way the world is wired is very much dictated by the USA, and, to a surprising degree, by the UK. The software and much of the engineering design for the internet is Western, although increasingly the manufacture is taking place in China. I think the Chinese feel at a significant disadvantage. There are still elements of the Chinese leadership who appear to be convinced that the United States has a kill switch, and can basically cut off the internet and deprive them of access. So all those factors need to be taken into account when one looks at this. The other side of the coin is that the internet has given the Chinese state an unprecedented opportunity to engage in a kind of bulk collection of intelligence, which was beyond their wildest imaginings even a decade ago. It is becoming increasingly clear that if Chinese leaders ever went naked into the conference chamber at international meetings or negotiations, that is manifestly no longer the case. They go into the conference chamber very well informed indeed. It is also clear that we are seeing a significant, industrial-scale, state-sponsored collection of industrial secrets, intellectual property, negotiating positions and so on. For China, that is imperative for two reasons: military modernisation and economic modernisation. In particular, it is imperative that they avoid the risk of a middle income trap, which they will face if they are not able to quickly develop worldclass industrial corporations. Q36 Mike Gapes: Can I ask you about the change of leadership in China? How should our Government interpret that change, and what are the implications for our policy and relations with China? Mr Inkster: There may not be too much to be read in the new line-up of the leadership. As was said in the previous session, we have transitioned away from a situation in China where one supreme leader was able to change the direction of overall policy. Deng Xiaoping had the authority that came from having been on the long march and from being one of the founders of the new China, and Jiang Zemin was visibly Deng Xiaoping’s protégé. The most recent iterations of leadership no longer have that capacity; they are the product of a collective leadership. They get to where they are, first, by demonstrating technical and administrative competence, and, secondly, by not rocking the boat. That is exactly the mistake that Bo Xilai made: he rocked the boat. He behaved in a way that was not in conformity with the expectations of collective leadership, and therefore he had to be brought down. The last generation of leaders, as was said before, were engineers. They were people who had come through the ranks. In many cases, they had done long years of service in some of the more remote parts of China. The new generation of leadership is more driven2. It is the product of a kind of Communist aristocracy. It is a leadership whose intellectual and career experiences are more diverse than those of previous generations. It is more cosmopolitan and more outward-looking, but still Leninist. That is the key thing that we need to bear in mind. As to how one deals with this new generation of leadership, I think that more than anything what they want, increasingly demand and are in a position to demand, is respect. They want recognition that China is transitioning from being a rule taker to a country that wants to be a rule maker, that does not just want to accept the international dispensation that we have bequeathed, but wants to put its own stamp on this process in a way that reflects its own interests. A recognition of that, hard-headed but with a willingness, obviously, always to defend our own national interest, is the way to do it. Q37 Mike Gapes: Would you expect this new leadership and President Xi to hand the system on in 10 years’ time to their successor essentially unchanged, or will that transition mean that it will be a different system? Mr Inkster: The honest answer is that I don’t know. As you clearly want an answer to your question I would suggest that on balance Xi Jinping plans to hand on a succession in much the same way as his was done. Q38 Mike Gapes: What about the implications of the new media—you have already touched on the rise of 2 Note by witness: Mean to say diverse instead of driven cobber Pack: U PL: COE1 [O] Processed: [22-08-2013 10:15] Job: 031818 Unit: PG01 Source: /MILES/PKU/INPUT/031818/031818_o001_michelle_FAC 02.07.13 corrected.xml Foreign Affairs Committee: Evidence Ev 13 2 July 2013 Mr Nigel Inkster the internet—and the social media for the way that China is governed and the ability to have stability? Mr Inkster: China vigorously embraced the internet because of the obvious potential that it had for economic developments. At the same time they were aware of the potential for instability that this new phenomenon might have. They have worked very hard, and to date arguably quite successfully, to ensure that they can keep this within bounds. A young American researcher, Rebecca MacKinnon, has coined the term “networked authoritarianism” to describe the process that has been going on in China. Essentially the Chinese Government now recognise that with the internet you have to allow more free exchange of opinions than was ever acceptable prior to the arrival of the internet, and to a significant degree they have made a virtue of this necessity. China’s wang min—the netizens—in many ways substitute for the civil society that the Communist Party has never been willing to allow formally to become established. They find it very useful. The Chinese top tiers of leadership take it for granted that they will be lied to by subordinate tiers of the bureaucracy. They find it difficult to get the real picture of what is going on in the country and monitoring what is being said on the internet is a very useful way for them to get this. It is a very useful reality check. It is also a way in which, when popular indignation with official excesses boils over, the Communist Party can take credit for being responsive to the concerns of the citizens. They have become very adept at engaging in this online debate. They have their own people, the ‘50 cent party’ as they are called, who supposedly are paid 50 cents for every intervention that they make in blogs and so on, on behalf of the Government. They can ride the wave to monitor and shape the discussions that are taking place on the web, but also very quickly close them down if something is happening that they don’t like the look of. A single blog that they don’t like the look of can be closed down very quickly. Q39 Mike Gapes: Would you agree with the assessment from the previous session that the Arab Spring and the implications of that for China are quite minor, in the sense that the party will not face the fate that Mubarak had or some other countries might be going through? Mr Inkster: The Communist Party, as Professor Breslin said, obsess ad nauseam about their vulnerability and the threats arising from instability. But it remains the case for China that this fear of the kind of instability and chaos that was experienced during the Sino-Japanese war, during the Cultural Revolution and so on—this total anarchy that prevailed—is something that everyone is anxious to avoid. Most middle-class urban Chinese have never had it so good, and the last thing they want to do is forfeit the lifestyle they have come to acquire. The argument that the instability to which Arab Springtype events could lead is inherently undesirable and to be avoided has quite a lot of resonance in the country. Q40 Mike Gapes: And not just in the Party, but among the population as a whole? Mr Inkster: I think so, yes. Q41 Sandra Osborne: What about corruption? If people are better off, but they are still seeing corruption—the new President sees it as enough of a problem to give it priority—could that cause instability? Mr Inkster: It causes periodic popular anger, but, in the main, what we see in China is a relatively efficient form of corruption; it is not like the corruption one sees in a country like, let us say, the Democratic Republic of Congo. The fact is that the Chinese state still delivers significant services, significant benefits and significant improvements to the lives of its people, notwithstanding the manifest and widespread corruption that is taking place. So it really is not the case that people are making large contributions to the state through taxes or whatever and seeing all that eaten up by rapacious officials. Yes, of course, rapacious officialdom is a preoccupation; it is a particular preoccupation in the countryside, because this is where ordinary people come into contact with it. In the urban environment, this is much less the case; if you live in a Chinese city and you are middle-class, you probably do not have quite as much connection with corruption, although you will have a connection in other ways. For example, if you want your children to get a good education, you basically bribe the teachers; if you want your parents to get good medical treatment, you bribe the doctors, and so on—this is just the way of life in China. That does cause concern. The Party are acutely aware of the concern it causes, and they are working to improve the delivery of services to the population. They have periodic crackdowns on the most egregious displays of conspicuous consumption. There was an incident not so long ago where a senior provincial official was photographed wearing a dozen different Cartier or Rolex watches. This went viral, and the official in question was relieved of his post. You get these periodic injunctions, saying, “Don’t party at the public expense. Behave in a more modest fashion.” This normally lasts for a while; once the pressure eases, people revert to how they were before. This is one of these things that just comes and goes. Q42 Sandra Osborne: How do you think the financial crisis since 2008 has affected China’s international role, including in terms of the UK? Mr Inkster: Well, there has been something of a sea change in China’s perception of itself and in China’s relative position in the world. As was said in the previous session, the Washington consensus is perceived by China to have been a false god. After many years of being lectured at and told this is what they have got to work towards, they are now taking the view that, actually, it is not necessarily the case that the West knows better than they do. The fact is that China’s willingness to buy US Treasury bonds and to continue, effectively, investing in the US economy has become critical to the stability of the global financial order. I think it was Hillary Clinton who said not so long ago, “How do you get tough with your banker?” The fact is that, once the financial cobber Pack: U PL: COE1 [E] Processed: [22-08-2013 10:15] Job: 031818 Unit: PG01 Source: /MILES/PKU/INPUT/031818/031818_o001_michelle_FAC 02.07.13 corrected.xml Ev 14 Foreign Affairs Committee: Evidence 2 July 2013 Mr Nigel Inkster crisis bit, all the countries of Western Europe and the USA were turning to China and saying in effect, “Do you have any spare cash?” I think that has put China in a very different position—a position where the Chinese feel much greater self-confidence and a much greater disposition to challenge the established order and to argue for what they would characterise as a more diverse international order, one that was more tolerant of different approaches. Q43 Sandra Osborne: So, if that is the case, what is your opinion of this idea that they want to export their political and economic position to other countries? Do you think they do or not? Mr Inkster: No, I do not think they do for a moment. I do not think they really have an export model of their political system. As I said, the Chinese line and what they are arguing for in international forums is what they call diversity, which is basically a willingness to tolerate different ways of doing things. The Chinese economic model is a very pragmatic model. It really is always only about what works, what delivers results and what delivers returns on investment, and politics is much the same. The Chinese Communist Party is a Leninist party in terms of its organisation, but from an ideological perspective it is not really Leninist and it certainly does not want or require other countries to adopt its way of doing things. Q44 Mr Baron: What do you believe is the greatest risk to the Chinese economic model? Is it an increasingly aspirant emerging middle class? Is it the pegging of the yuan to the dollar—against a strengthening dollar? Or is it something else? Mr Inkster: The biggest challenge that China’s got at the moment is a rapidly ageing population, and it is causing considerable concern. The one-child policy has had some very perverse demographic consequences, and the result is that within a very short period of time we will be in a situation where one worker will be supporting an inverse pyramid of eight people who are not productive. That is a cause for particular concern. I do not think that China is a country that can seriously contemplate using mass immigration as a way of resolving this problem—it is just not going to happen that way—so it will have to think of other ways of doing it. However, I think that this is its single biggest concern at the moment. Q45 Mr Baron: Is there a close second? Mr Inkster: Market volatility bubbles in property and stock markets are a particular concern. Stock markets perform a very different function in China from that which they perform here, because basically the Chinese banking system is so dysfunctional that nobody in their right mind would put their savings there and so everybody puts their money on the stock market. That is effectively where their savings go. So, any major stock market collapse could have serious consequences. Ditto property bubbles. A lot of people buy property and then don’t live in it, in order to let it preserve and increase in value. If value is rapidly stripped out of it, that can be a real problem. Q46 Mr Baron: Looking abroad, China has emerged as a major trade partner and source of overseas aid for a good number of countries now, particularly when one looks at Africa. What is your take on whether China’s overseas aid and economic activities are driven by commercial interests and objectives, or by more strategic political objectives? Mr Inkster: The primary driver for China’s engagement right around the developing world is economic, and in particular this absolute hunger—this imperative—to acquire the raw materials to carry on the domestic economic development that is essential to staying afloat. Everything else is purely secondary. If you look at how China engages in a continent such as Africa, there is no single model. It is very much driven by the particular circumstances of the country concerned and by the particular economic factors. Where China is told that it cannot bring its own workers but must employ local workers—as happens, for example, in South Africa—that is what it does. In another country where there are no such limitations on its behaviour, the natural tendency is to bring its own workers, because it has greater confidence in them. The other problem that we are seeing, which is causing increasing concern in Africa, is that the influx of cheap Chinese manufacture is effectively preventing many African countries from moving up the value chain and becoming something other than exporters of raw materials. But it is entirely the economic imperative. One sees it also in Latin America. In the last two dozen years or so, Argentina’s humid pampas have ceased to be a place primarily for raising cattle and are now basically about the production of soya beans. That is a fundamental transformation driven by China’s economic and commercial imperatives. Q47 Mr Baron: May I ask you to reflect on that answer and move you to the South China Seas? To what extent can you apply the answer that you gave to the previous question to the situation there, or is this more of a trade-off between Asian politics and relations with the US? Mr Inkster: It is a complicated three-way relationship. The big strategic issue for China is its relationship with the United States in the Western Pacific, an area that China regards to some degree as its own back yard and as an essential guarantor of strategic stability. Certainly China will never feel secure unless it feels that it controls the terrain up to the so-called first island chain. I think China is aggrieved, and to some degree puzzled, by the fact that the United States is not prepared to do a deal and effectively agree to split the Pacific in two—“You take the East, we’ll take the West”—which is what China would like. Obviously, that is China’s preferred course, but it is not going to happen, so we have a situation in which the security and strategic situation in that part of the world is driven, first and foremost, by US-China dynamics. The states of the South-East Asian region are basically concerned about the risk of becoming Finlandised under Chinese hegemony, so they have been looking to the United States for support and security cobber Pack: U PL: COE1 [O] Processed: [22-08-2013 10:15] Job: 031818 Unit: PG01 Source: /MILES/PKU/INPUT/031818/031818_o001_michelle_FAC 02.07.13 corrected.xml Foreign Affairs Committee: Evidence Ev 15 2 July 2013 Mr Nigel Inkster guarantees. Of course, that simply exacerbates the relationship with China. As for the South China Sea, yes, I think Professor Tsang had it pretty much right in the previous session. China has been driven into a not entirely welcome move away from a good neighbours policy, which it was pursuing very effectively until a few years ago, to one that now looks more like a bad neighbours policy. One of China’s big perennial problems is its absence of reliable allies. If the only allies you have are Pakistan and North Korea, you have a problem in that area. Everyone else is not an ally; everyone else is a potential threat. China is very concerned about the degree, as they see it, to which the United States is seeking at every turn to constrain China. The US academic Aaron Friedberg used the term “congagement”—a combination of constraint and engagement—to describe US policy towards China, and I think that pretty much sums it up. China has been forced into a rather more shrill and aggressive posture than perhaps it would ideally wish. That has been driven by a combination of factors, including pressure from domestic national feeling and a genuine desire and need to control this territory, which is effectively its backyard. The resource dimension is also a factor. There are many issues at work, but I cannot see China backing down from the posture that it has taken. The best outcome that the other participants in this little imbroglio can hope for is some form of “joint” exploitation of resources. Q48 Rory Stewart: Can we start on the obvious chestnut, which is what can the UK and the US do to encourage China to support a UN resolution on Syria, particularly in relation to arming and some kind of political settlement? Mr Inkster: There is very little that either country can do at the moment. China was scarred by what happened over Libya. They thought that they had signed up for one thing and they found that the outcome was very different. Part of the effect of that was to effectively neuter those elements of the Chinese policy community who were starting to move in a more favourable direction towards some kind of international intervention. Q49 Rory Stewart: To what extent in Britain did we properly think this through or anticipate this on Libya? It sometimes seems, as an outsider observing it, that we behaved as though what we were doing with Libya was fine and that China and Russia were being unreasonable in believing that we pushed beyond what we promised. Should we have seen that? Should we have anticipated it? How did we get it wrong? Mr Inkster: Once we got so far into Libya, the situation took on its own dynamic and there was relatively little that could be done to control it, but I agree that it might have been thought about more carefully at the outset. It is mooted—I have no reason to doubt it—that when President Medvedev, as he was then, was informed of Colonel Gaddafi’s demise, his reaction was, “We’re next.” I doubt that China’s response would have been significantly different. This kind of humanitarian intervention is inherently and manifestly undesirable from China’s perspective, because they fear that one day it could be turned against them. Q50 Rory Stewart: If someone came to you and said that the way to force China or Russia to back a UN resolution was to arm rebels in Syria, because by doing so you could level the killing field, put pressure on Bashar and compel Russia and China to the negotiating table, what would you say? Mr Inkster: I would say that I do not think it will be that easy to compel either country to support a resolution of this kind, but as Professor Tsang said, China is taking a back seat on this one. Russia is doing the heavy lifting and China is taking shelter behind Russia, which has some direct and significant interests in Syria. In a way, China is arguably more agnostic about the particular merits of the Syrian case. On the question of principle, China is unlikely to accede to anything that would, as they saw it, open the door to forcible regime change. Q51 Rory Stewart: In terms of the bigger picture, there is something that we believe very deeply in the West. It is a theory that we have developed for 200 years: there is a necessary relationship between democracy, security, stability, economic growth, the rule of law and good governance. All those things go together; we do not see them as mutually exclusive. We have an Anglo-Saxon view and we look at a country like China and see problems with poor governance, corruption, instability and lack of liberty somehow connected to lack of economic growth. To what extent does China feel that? If China doesn’t feel that, are we using exactly the wrong arguments to China in relation to Syria and Afghanistan, where we keep trying to say that these are unstable countries that could pose a threat to you because of the lack of order and governance? Does China believe that and should we be saying that to China? Mr Inkster: If one looks at Afghanistan as a case in point, China is obviously worried about the potential for instability from Afghanistan in one particular area, namely its potential to act as a haven for Uighur separatists, which it has done, albeit tiny numbers. I think that China is worried about the threat of Jihadist terrorism migrating from Afghanistan into China, which to some small degree it has done; but I think they see that as a containable problem and I would argue that they are right, and that the wider instability is something they can live with. Their calculation is that at some point people have got to actually develop the economic resources—minerals—that Afghanistan now has and China is perfectly placed to do it, when the situation is right to permit it. It is not the case, and I do not think that anyone of us should come away with the view, that China is inherently hostile to the concept of democracy. This is not the case; there are many Chinese thinkers within the Party structure who look very seriously at democracy and recognise the very real strengths that the system has in terms of self-correcting mechanisms. They understand this and they are not immune to the arguments, but I think they see democracy as something rather different from how we cobber Pack: U PL: COE1 [E] Processed: [22-08-2013 10:15] Job: 031818 Unit: PG01 Source: /MILES/PKU/INPUT/031818/031818_o001_michelle_FAC 02.07.13 corrected.xml Ev 16 Foreign Affairs Committee: Evidence 2 July 2013 Mr Nigel Inkster see it. They do not see that democracy necessarily entails multi-party structures or some of the things that we tend to assume as being the case. Actually, I think collectively we made a big mistake by majoring on democracy as an inherent virtue, whereas representative government might have been a much better line to pursue, because that is something they could certainly relate to. Q52 Chair: Finally, what is your take on the position with North Korea at the moment? Mr Inkster: As was said in the previous session, China is in a very difficult situation. They do not like the current regime. Relations between China and North Korea have often been absolutely poisonous. Third parties involved in talks in Beijing talk about high-pitched screaming matches going on between the Chinese and the North Korean delegations on a regular basis. Certainly, the North Koreans have some rather curious ways of demonstrating their gratitude for the support that they receive from China. Henry Kissinger made a valid point a while back, when he observed that we in the West are always looking for solutions to problems, but for China, those so-called solutions are often no more than an admission ticket to a new set of problems that could turn out to be even more intractable than those that you think you have got away from. That is epitomised by the situation in North Korea. Whatever might come pursuant to a collapse of the current regime is so uncertain that the Chinese are simply going to grit their teeth and live with what they have. In that regard, the Chinese leadership—this applies more generally—is a pretty risk-averse group of people. They are not going to go out of their way to look for problems, much less adventures, in the foreign policy arena. They want to keep things as stable and as quiet as they can possibly make them, and that is pretty much the case with North Korea. It is a worry for China that the whole North Korean nuclear issue has led to the USA bringing missile defence into East Asia to the degree that it has. For China, that is an existential problem; their calculation is that they have a very small nuclear deterrent and the USA has a very big nuclear deterrent, so a combination of a US large nuclear deterrent plus space domination plus missile defence could equal neutralisation of the Chinese nuclear capability in the first stages of any conflict. That is changing because China has actually acquired a second-strike capability with submarine-launched missiles, which will shortly give it an always-at-sea capability, effectively a second-strike capability. It is still a very uncomfortable situation for them to be in, and they do not particularly enjoy it, but they see the least of all possible evils as tolerating the regime as it is. Chair: I can safely say that we could go on picking your brains for a long time. Thanks very much for coming today. It is very much appreciated. cobber Pack: U PL: CWE1 [SO] Processed: [22-08-2013 10:15] Job: 031818 Unit: PG02 Foreign Affairs Committee: Evidence Ev 17 Written evidence Written evidence from Professor Kerry Brown, Director, China Studies Centre, University of Sydney, and Associate Fellow, Asia Programme, Chatham House — On 15 November 2012 in Beijing, on the closing day of the 18th Party Congress, the new Politburo Standing Committee was announced. In March 2013, the government changes accompanying this followed. China now has a wholly new leadership line up. — There were four immediate striking features of the new line up: — the number had been reduced from nine in the preceding 17th Party Congress to seven; — the age of five of the new leadership means that they would need to retire at the next Congress in 2017 as they will have already passed the 68-year old threshold disbarring them from reappointment; — four of the seven have been classified as more conservative than liberal in their instincts; and — four of the seven have authentic links directly or through marriage to former senior leaders. — Working out the political logic behind the reduction from nine to seven has proved difficult because of the highly opaque way in which this final line up had been decided. The Party used a combination of relying on precedents established through previous congresses, and in particular the methods used in the 2002 and 2007 leadership changes, one generational and one intergenerational. But it also used what was described in some Party material as innovative intra-Party democratic methods. The new line up coming from this complex process has been presented as a band of leaders who can work in a unified, consensual way, and which can, most importantly, gain legitimacy beyond the bounds of the tiny group in the Party that have elevated them to the wider society beyond, 93% of whom are not Party members. — Despite these gestures towards consultation, we see a Politburo super-elite who despite all the superficial appearance of being promoted after consultation and consensus building, are, in the manner of their appointment and the presentation of it, an expression of raw political power. These people are in their positions because they have the support of immensely powerful networks within the core power-centre of the modern Party. They are also there because they are seen as the best bet for the Party to now face its menu of immense challenges. These were outlined by Xi Jinping in his brief comments on 15th November—continuing to deliver growth and prosperity, bridging the gap between the Party and those it rules, dealing with its own internal governance and in particular corruption, and trying to come to terms with the country’s increasing international obligations. — We need to resist easy talk of factions and leftist versus rightist elements in the Party elite. The seven-strong line up shows us that we are now looking at a networked Party, where leaders in their careers build up political capital for promotion through their provincial, ministerial, central and business careers. State owned enterprises, for instance, remain a strong power base for leadership. In this “marketised” power environment, vested interests are bound up with particular enterprises, institutions and Party organs. These are recruited in to support, or sometimes to oppose, particular elite careers. — For Xi Jinping, the “networked leader” has been part of the narrative presented overtly and subliminally to the domestic and international public. He is seen as someone with experience at all levels of government, from village upwards, as someone who has links to the military as a junior private secretary to a military leader in the early 1980s, the Party schools, and through leadership in the major provinces of Fujian, Zhejiang and the city of Shanghai. He is someone who is not dogged by dark rumours about his past in the Cultural Revolution from 1966 to 1976 in the same way as the felled Bo Xilai was, but who was regarded as belonging to a victimised family at that time who were properly rehabilitated in the late 1970s with the return of Deng Xiaoping’s leadership. Li Keqiang similarly has networks both provincially, but also through the Communist Youth League. — This is a networked leadership, and within this a tribal and family linked leadership. Rumours of a narrative of dynastic clashes between the Bo Xilai, Wen Jiabao, and Xi Jinping family surfaced throughout 2012 and had their apogee in the claim that the expose of the Wen family financial wealth documented in the New York Times in October was aided by allies of Bo’s family. This probably overstates the level of manipulation and control in elite politic dynamics in China. But family links remain immensely influential, with clear connections to parts of the Party-industrial and military complex. The challenges of how elite leaders try to restrain their family from taking commercial opportunities are very real. Family links with this networked leadership are the least understood but probably one of the most influential parts of the dynamics they operate in. cobber Pack: U PL: CWE1 [E] Processed: [22-08-2013 10:15] Job: 031818 Unit: PG02 Ev 18 Foreign Affairs Committee: Evidence — — — — — For all seven leaders, there are two striking features of their careers: — They are utterly beholden and committed to the Party for all that they have achieved, and have never uttered or done anything that might detract from its right to have a monopoly on power in China. — None have made any comments or done anything in their former careers to indicate that they believe in western style democratisation of the Party and its processes. For this leadership, they will be as wedded to cautiousness as their predecessors, both because of the immense constraints around them and because there is nothing to be gained at the moment from systemic bold policy moves. They will hold to general policy continuity rather than policy disruption and maintain the line set out in the 12th Five Year Programme which runs to 2015. The appointment of Xi Jinping as Chairman of the Central Military Commission (CMC), two years before expected, was also a surprise. Xi is regarded as the one leader of the new seven who has links with the military from his career in the early 1980s in the general offica of the central military in Beijing. With the Party position, that of the CMC chair, and president, Xi Jinping has been given the full suite more quickly than any other leader since the late 1970s. This in itself is a powerful statement of elite confidence in and support for the new leadership. For foreign affairs and the issue of the military and Taiwan there is nothing, at the moment, for this new leadership to gain from changing the parameters set out by their predecessors. For Taiwan, the strategy under Hu Jintao of deeper economic links and covert support for the KMT who are more close to the Mainland has paid good dividends and, barring elections in 2016 returning a more vocally independence supporting Democratic People’s Party candidate (unlikely), for the new leaders to mess with this would antagonise Hu and a situation widely seen as being stable. Military leaders would have no strategic reason to clash with the politicians on this. For broader foreign policy issues, just as with domestic ones, while presentation might change, for the short to medium term it is unlikely that the defensive and assertive mindset of this leadership will. They continue to wish to have more strategic space from the US—this underlies Xi’s statement while in the US in early June that “the Pacific is big enough for both of us.” But China’s assertive and brittle diplomatic behaviour over the last four years has made it more isolated than it should be, with a highly ambiguous narrative for the rest of the world—economic opportunity, but military, security and political unknown. Communicating more clearly China’s vision of itself in the world will be a major task for the new leaders. Diversifying their diplomatic links is also important—this might explain Xi’s visit to Russia and Africa after he became president. For economic policy since Li Keqiang has taken over as Premier in charge of macroeconomic policy, the commitment is to double GDP by 2020 to create a middle income society with a per capita GDP of USD 12,000. Li himself has stated that the country needs to see fast sustainable growth. That means growth rates before 2015 of around 7% per year. It also means attacking the great structural imbalances in the economy—low domestic consumption, low service sector as a proportion of GDP, low urban to rural ration (though this is changing rapidly) and high capital investment. A social welfare system and an integrated housing market are two ways to lift consumption. Foreign companies wanting to conquer the domestic Chinese market will be seen as allies in this task of raising consumption. The main issue is to do everything to improve market access. This relates to the green economy commitments in the current Five Year Programme. Provincial leaders have now been clearly told that green GDP targets will become “hard” ones, although there is lack of clarity about how to measure these. The intellectual argument about the impact of climate change on the environment and on long term sustainable economic growth has largely been won. Ironically, China is a policy less infected by the US by climate change scepticism and denial. China has also under the former leadership progressed a long way from Copenhagen in 2010 to seeing that even greater pressure on developed countries will not be enough to solve its own issues. The quandary for the new leadership is to accelerate greening while maintaining high growth. Their technology and innovation programmes will need radical reform to move from the rhetoric of commitment to greening to the implementation. The formulation of the key strategies for the 13th Five Year Plan will begin now. It will be in this process, a sort of long campaign within a new leadership culminating in 2016, that we will see the real technical response to greening. cobber Pack: U PL: CWE1 [O] Processed: [22-08-2013 10:15] Job: 031818 Unit: PG02 Foreign Affairs Committee: Evidence Ev 19 — What has the “learning Marxist Party” learned from this succession? Through the issues around Bo Xilai, and through the scandal of Ling Jihua, former Chief of the General Office of the Central Committee and institutionally in charge of the pre-planning of the Congress, who was moved sideways to head the United Front Department after the discovery of his son’s death in a car crash with two women in March this year, the Party has learned that a gap now exists in terms of what it regards as its moral function in society and how it is viewed by the wider public. This is a significant paradox. The Party that rose to power representing the United Front for workers and peasants, overthrowing elitist power structures and striving for equality and sovereign dignity for China is now regarded as the fiefdom of vested interests, run by a clearly defined party aristocracy, of which Xi Jinping, Yu Zhengsheng, Li Keqiang and Wang Qishan are members through direct lineage or (for the last two) marriage. Xi’s declaration against corruption on 15 November therefore is a critical issue, because it strikes at the heart of the Party’s views to itself of its own legitimacy. Wang Qishan’s leadership of the Central Discipline and Inspection Commission is also important, as he is regarded as one of the most effective of the new leaders. Over the last six months, Xi had revisited the issue of combating corruption, and built on his interests in the past to restoring the moral mandate of the Party to rule and be looked up to. But in a system where Party interests are intimately linked to sources of vast profit, and the control of goods that deliver this, and where most of the networks of elite political figures can leverage their links for commercial gain, beyond abstract declarations of good intent, it is hard to see hard-edged outcomes from Xi’s language that address some of these enormous issues of vested interest. — In terms of policy, the new leadership operates in restrained circumstances, with commitments that cut across the transitional period contained in macroeconomic documents like the Five Year Programme, and in the clear statements made by Hu Jintao in his 8 November speech at the end of his time as Party Secretary. These carry across to the new leadership. They broadly declare the focal areas to be the need for social management, for investment in a national welfare system to address inequality, for measures to create an innovative economy with greater service sector components, to dealing with sustainability, food security and energy supply. There is an awareness however that society is beset with too much contention, and that the costs of policing this (in 2011, the internal security budget was USD111 billion, USD5 billion more than defence) are unsustainable. The Party has to find a better way of appealing to the broad public to support its policies beyond wealth creation and coercion. — These are highly general commitments. This leadership have space in terms of what they do at a micro level to implement policy, and in terms of how they communicate that policy. Xi Jinping’s leadership have asked that official speeches are delivered in more natural language, and that less of the dreaded “Hu” stilted language of ideological diktat is served up. Presentation is immensely important in selling policy, and for this leadership, the structural issues of how to mobilize a society which is undergoing immense and complex economic and socio political change is more critical than is supposed. The later comments of Wen Jiabao delivered the rhetoric and soundbites of the need for more predictability in society through rule of law and legality. This leadership now need to grapple with implementing that. — They will not jettison ideology as the refusal to take reference to Mao Zedong Thought from the Party Constitution during the Plenum meeting in early October 2012 made clear. But they can express that ideology in a different and more human way, in particular looking to close the gap between a highly trained leadership elite and the society they are meant to guide and show moral and political leadership in. Xi Jinping’s deployment of the symbolic resources of his own history and of his own vision and linguistic register therefore do matter. — This is a leadership of political scientists, historians, economists, lawyers and social scientists. The era of the technocrats has come to an end. It is a leadership who are diverse in terms of the regional experience within China, having links from Shanxi, to Hainan, to Zhejiang and Henan, but whose sole international experience is through Zhang Dejiang’s period studying in North Korea. This is a leadership set up therefore for a domestic agenda, who will resist attempts to pull them more deeply into international affairs which are seen as lying beyond their national interests, despite the very real pressures that will be put on them to do this. It is a leadership brought from a very limited intellectual culture (male, Han, aged 58 to 68) but which is probably as diverse as the Party in its current situation might be able to manage. The fundamental question is, therefore, whether the best that the Party can offer is, in terms of the immense challenges facing it now, going to prove to be good enough. While they are probably more interested in hearing new ideas about how to approach their immense governance issues, they are in no mood on issues like Tibet, human rights, or their own internal reform, to hear lectures from outsiders who they view as tainted by the global financial crisis since 2008. They view international relations now in a more emboldened way, and in ways which show their awareness of their new economic status and how this needs to be reflected in the way in which the world talks to and engages with China. cobber Pack: U PL: CWE1 [E] Processed: [22-08-2013 10:15] Job: 031818 Unit: PG02 Ev 20 Foreign Affairs Committee: Evidence — The structure of the Central Committee which was announced along with the new Politburo and Standing Committee is unchanged. 50% of its membership are new. But the bias towards provincial leadership positions (a fifth), military positions (around 22 seats), academic and state owned enterprises, and national ministry positions as the standard components of the Committee remains the same. Representation from people who state that their home province in Guangdong remains high. In terms of gender, age and ethnicity, however, this Central Committee remains almost wholly similar to the last one. This is a sign that underneath the bolder presentation of reformist intention towards corruption, economic policy, and use of political language, the CCP in the 21st century lives with the paradox that a movement founded in revolution has become, in its seventh decade in power, self-preserving, highly cautious, led by people with remarkably little diversity, and, dare it be said, extremely conservative. 24 June 2013 Written evidence from Human Rights Watch Summary — Human rights violations in China are severe and systematic. Despite the recent change of leadership at the top of the Chinese Communist Party, the government remains an authoritarian one-party state, responsible for large-scale human rights abuses and the denial of many fundamental freedoms. — The FCO and the UK government assert that “they consistently raise human rights concerns with the Chinese leadership, both publicly and privately”, and that rights concerns are an important element in the UK bilateral relationship with China. Human Rights Watch believes that these claims, particularly with respect to public diplomacy, are an overstatement. There have been many recent public statements on China made by UK Ministers that omitted any reference whatsoever to human rights issues. This includes statements on UK/China relations made by David Cameron on 8 February 2013 and Nick Clegg on 11 February 2013. A substantial William Hague statement on UK/China relations on 27 July 2012 also failed to make a single reference to human rights concerns. Even if concerns are being expressed privately, our view is that the effectiveness of this will be reduced by the failure to combine it with regular and robust expressions of public concern. — The FCO does document the human rights situation in China fairly comprehensively, for example in the recent China country chapter of the 2012 Annual Report on Human Rights and Democracy, and UK ministers and the Ambassador and staff in Beijing do raise specific human rights issues with Chinese Ministers and officials. This is welcome. But to be true to their public rhetoric about the importance and centrality of human rights to the UK government’s foreign policy, they should press human rights issues, publicly and privately, and with greater consistency and assertiveness, at the very highest levels of the Chinese government. It should also press these concerns through the European Union and the United Nations. 1. The human rights situation in China—key issues of concern Although China has undergone rapid economic modernisation over the last three decades, and this has led to significantly improved living standards for many Chinese people, the government remains highly authoritarian and repressive, responsible for large-scale and wide-ranging rights violations and the denial of many fundamental freedoms. 2. Human Rights Defenders in China regularly face police harassment, house arrest, short-term detention, “re-education through labour”, forcible commitment to psychiatric facilities, or imprisonment on criminal charges. A high-profile figure like Nobel Peace laureate Liu Xiaobo is serving an 11-year sentence for “incitement to subvert state power”, while his wife, Liu Xia, has been held under house arrest in Beijing since December 2010. The UK government should continue to press these cases, and the plight of the much wider group of Chinese activists—less well known—but equally or even more harshly treated by the authorities. Despite their precarious legal status and surveillance by the authorities, civil society groups continue to try to expand their work. An informal but dedicated network of activists monitor and document human rights cases under the banner of a country-wide weiquan (rights defence) movement. These rights activists and defenders face a host of repressive state measures. The FCO is currently reviewing its approach to supporting human rights defenders around the world. There are many human rights defenders in China for whom the UK government can and should speak out. 3. Legal reforms were effectively stalled under the Hu-Wen leadership and the government rejects judicial independence. Forced confessions under torture remain prevalent and miscarriages of justice frequent due to weak courts and tight limits on rights of the defence. In March 2012, the government adopted comprehensive revisions to the Criminal Procedure Law (CPL). These changes legalise the power of the police to place “state security, terrorism, and major corruption” suspects in detention in a location of the police’s choice, outside of the formal detention system, and for up to six months. These measures put suspects at risk of torture while giving the government a justification for “disappearance” of dissidents and activists. China is also thought to continue to lead the world on executions. The exact number remains a state secret but experts estimate it to be cobber Pack: U PL: CWE1 [O] Processed: [22-08-2013 10:15] Job: 031818 Unit: PG02 Foreign Affairs Committee: Evidence Ev 21 around 5,000 to 8,000 a year. China signed the International Covenant on Civil and Political Rights (ICCPR) in 1998, but has not in the past 15 years taken steps towards ratification. 4. Freedom of expression is severely restricted in China. Sina Weibo, the largest of China’s social media microblog services, gives 300 million subscribers space to express opinions and discontent to an extent previously unavailable. But like all online content, Weibo is subject to strict scrutiny and manipulation by China’s sensors. Alternative social media operations, including Twitter, YouTube and Facebook are blocked. At least 27 Chinese journalists were serving prison terms in 2012, and journalists who report on sensitive topics can suffer physical violence. The Chinese government also seeks to extend its stringent controls on freedom of expression overseas, including on one occasion in 2012 to the UK. In March, the Chinese government successfully pressured the organisers of the annual London book fair to exclude any dissident or exiled Chinese writers from the list of official participants. It is not clear to what extent the UK government was involved in this process. It certainly did not make any public statement in defence of those writers critical of the Chinese government, or champion their right to participate. 5. Freedom of religion is heavily restricted in China, with religious worship only possible in officially approved mosques, churches, temples and monasteries, and with religious appointments and publications all subject to government review. Unregistered spiritual groups such as Protestant “house churches” are deemed unlawful and the government subjects their members to fines and prosecutions. The Chinese government classifies the Falun Gong—a meditation-focused spiritual group banned since July 1999—as an “evil cult” and arrests, harasses and intimidates its members. 6. Health and disability rights—The Chinese government remains hostile towards claims for compensation stemming from the 1990s blood scandal in Henan province. In August last year, baton-wielding police beat several members of a group of 300 people with HIV/AIDS protesting in Zhengzhou. The crowd was protesting the government’s refusal to pay compensation to those infected with the virus via government-organised mass blood plasma sales in Henan province in the 1990s. The government’s National Human Rights Action plan (2012–15) commits the government to greater protection from widespread heavy metal pollution, yet no redress or medical attention has materialised for children poisoned by lead in Henan, Yunnan, Shaanxi and Hunan in recent years. Although it is a party to the Convention on the Rights of Persons with Disabilities CRPD), China’s protections for disabled people remain inadequate, with ongoing abuses and the denial of services. 7. Women’s reproductive rights are curtailed under China’s abusive family planning regulations. The government continues to impose administrative sanctions, fines and coercive measures, including forced abortion. 8. Tibet—The situation in the Tibet Autonomous Region (TAR) and the neighbouring Tibetan autonomous areas of Qinghai, Sichuan, Gansu and Yunnan provinces remains tense following the massive Chinese government crackdown on popular protests there in 2008, and the introduction of measures designed to place all Tibetan monasteries under the direct control of government officials who will be permanently stationed there. The government has yet to indicate that it will accommodate the aspirations of Tibetan people for greater autonomy, even within the narrow confines of the country’s autonomy law on ethnic minorities. In the course of 2012, 72 Tibetans self-immolated. Chinese security forces maintain a heavy presence and the authorities continue to tightly restrict access and travel to Tibetan areas, particularly for journalists and foreign visitors. Arbitrary detention, enforced disappearances, and torture in custody remain widespread. As part of its drive to build “a New Socialist countryside” on the Tibetan plateau, the Chinese government continues to implement large development programmes, designed to re-house or relocate up to 80% of the rural population. The damaging effects of this policy are the focus of a new Human Rights Watch report, published this month. The relocation policies have been carried out—contrary to Chinese government claims—with no effective choice and without genuine consultation of those affected, while compensation mechanisms are opaque and inadequate. Pastoralists deprived of their traditional livelihoods face declining living standards and increased dependency on government subsidies. We were disappointed by William Hague’s rather supine statement on Tibet on 18 June, in response to a parliamentary question, in which he referred very generally to “well established positions on human rights”, but then chose to add, more specifically, “we also understand Chinese sensitivities and concerns about Tibet”. Clearly these “sensitivities” cannot justify or excuse China’s highly repressive actions in Tibet. William Hague might have made that point explicitly in his answer. 9. Xinjiang—Under the guise of counterterrorism and “anti-separatism”, the Chinese government maintains a pervasive system of ethnic discrimination against Uighurs and other ethnic minorities in the Xinjiang Uighur Autonomous Region, and sharply curbs religious and cultural expression. An atmosphere of fear among the Uighur population contributes to growing ethnic polarisation. Factors contributing to this include the omnipresence of the security forces, the recent history of disappearances and an overtly politicised judiciary. 10. Hong Kong—Civic groups and the public have challenged the Hong Kong government on rights issues. Hong Kong authorities appear unwilling to deviate much from pro-Beijing interests. They have not moved towards universal suffrage as mandated by the territory’s mini-constitution, and have shown weakness in safeguarding the territory’s autonomy, civil and political freedoms and the rule of law. cobber Pack: U PL: CWE1 [E] Processed: [22-08-2013 10:15] Job: 031818 Unit: PG02 Ev 22 Foreign Affairs Committee: Evidence FCO/UK Policy on Human Rights towards China—HRW’s Critique 11. The China chapter of the 2012 FCO Human Rights and Democracy report says that “the UK government’s approach to human rights in China is one of constructive long-term engagement, to support modernisation and internal reform”. It further says that the (UK/FCO) “approach is delivered through three main pillars: high-level lobbying and engagement, the bilateral human rights dialogue and financial support to projects in-country”. 12. Consistency and centrality of human rights promotion in FCO/UK policy towards China—FCO and the UK government assert that “they consistently raise human rights concerns with the Chinese leadership, both publicly and privately”, and that rights concerns are an important element in the UK bilateral relationship with China. Human Rights Watch believes that these claims, particularly with respect to public diplomacy, are an overstatement. There have been many recent public statements on China made by UK Ministers that omitted any reference whatsoever to human rights issues, which undermines the claim that rights issues are raised consistently. This includes statements on UK/China relations made by David Cameron on 8 February 2013 and Nick Clegg on 11 February 2013. A substantial William Hague statement on UK/China relations on 27 July 2012 also failed to make a single reference to human rights concerns. Even if concerns are being expressed privately, our view is that the effectiveness of this will be reduced by the failure to combine it with regular and robust expressions of public concern. 13. The UK/China Human Rights Dialogue—The China chapter of the FCO Human Rights and Democracy Report gives a generally upbeat account of the role of the UK/China Human Rights Dialogue and the various issues that the UK has raised through this process. While supportive of the principle of dialogue, Human Rights Watch is concerned that the UK/China Human Rights Dialogue appears to have delivered very little tangible improvement. The chapter notes that the 2012 meeting in Nanjing was the 20th round of the Dialogue. But what is there to show for all of those hours of discussion? FCO Ministers and officials should be pressed on this point. We are also concerned that the existence of the Dialogue allows Ministers to say that human rights issues are being dealt with there, as opposed to being raised in meetings between foreign ministers or heads of state. 14. Democracy and elections—The China chapter notes that “the 18th Party Congress in November did not signal any movement towards representative democracy”. But the fact that the Chinese people had absolutely no say in the selection of the country’s new leaders was conspicuous by its absence in the official UK government response to the leadership change in China. 15. Freedom of expression and assembly—The China chapter says that these issues were raised regularly in 2012, including at the inaugural People to People Dialogue in April. But no detail is provided as to which issues were raised or even who was involved in this People to People Dialogue. 16. Refugees and asylum seekers—The FCO report states that in August 2012 “around 1,000 Kachin refugees were returned to Burma”. Human Rights Watch’s figures suggest that the number of Kachin returned at that time was closer to 4,000. 17. Hong Kong—In the FCO report it says the Foreign Secretary “looked forward to further substantive progress towards full universal and equal suffrage for elections in 2017 and 2020”. We believe this to be highly optimistic. Our assessment is that progress on the expansion of the suffrage is at a standstill or moving backwards. Nor do we see much evidence of positive UK engagement on the issue. 18. The European Union—The China chapter of the FCO report makes no mention whatsoever of the role of the European Union in pressing human rights concerns with the government of China. This is a serious omission given the potential leverage that would result from all 27 EU member states acting collectively on these issues. 19. The United Nations—there is similarly no reference in the chapter to the role of the United Nations, although China should be raised at the next session of the UN Human Rights Council and although China undergoes its Universal Periodic Review in October this year. China’s bid for re-election to the Council in November creates an ideal opportunity for UK human rights diplomacy. Recommendations Human Rights Watch urges the FCO and the UK government as a whole to: — Press human rights issues, publicly and privately, and with greater consistency and assertiveness, at the very highest levels of the Chinese government. This should include speaking up for specific human rights defenders, but also across the range of human rights concerns listed in this submission. — Set out clearer benchmarks for the UK/China Human Rights Dialogue, so that it is possible to judge the efficacy of this Dialogue in advancing human rights objectives. This also applies to the EU/China Human Rights Dialogue, the latest meeting of which was a major disappointment. Support EU Foreign Affairs Council (FAC) conclusions on China, so as provide a strong and common message to China of the importance attached to human rights by all EU member states. cobber Pack: U PL: CWE1 [O] Processed: [22-08-2013 10:15] Job: 031818 Unit: PG02 Foreign Affairs Committee: Evidence Ev 23 Use the next session of the UN Human Rights Council and China’s Universal Periodic Review (UPR) to press for real progress by China on a range of human rights concerns. For more Human Rights Watch reporting on China, please visit: http://www.hrw.org/asia/china 26 June 2013 Written evidence from the Foreign and Commonwealth Office Introduction 1. China’s rise in global political and economic influence has made it one of our most important bilateral relationships. As China continues to grow quickly compared to the rest of the world, new opportunities emerge not only for trade and investment but also for the exchange of talent, ideas and expertise. 2. We continue to broaden and strengthen our ties with China, with deeper cultural links, more students studying in each other’s countries, more tourism and more trade than ever before. 3. We work with China on a range of bilateral and multilateral issues and we are working to deepen our cooperation in areas such as prosperity and security. Dialogue is vital; by engaging with China we will expand our economic relationship while working towards making positive changes to human rights and addressing global challenges like climate change and poverty. UK-China Bilateral Relations UK’s relationship with China 4. The relationship between China and the UK is broader and deeper than at any other time in our history. We have a number of shared interests and there is now a steady stream of tourists, students, business leaders and politicians travelling in both directions. 5. China now has new leaders in place, and the Prime Minister has had friendly exchanges with President Xi Jinping and Premier Li Keqiang since they arrived in their positions. The Foreign Secretary has also had a positive conversation with his new Chinese counterpart Minister Wang Yi. 6. Although we will inevitably have differences of opinion, the UK and China regularly work together at international level to discuss issues of global importance such as development, climate change, Syria or the DPRK. China has a growing global voice and the breadth and depth of our cooperation is increasing accordingly. 7. We have over 40 regular dialogues with China at both Ministerial and official level covering a range of issues from the economy to human rights, including a Summit between the Prime Minister and the Premier and an Economic and Financial Dialogue led by the Chancellor of the Exchequer and his counterpart in the State Council. Given the priorities we share, we expect there to be a busy programme of visits to and from China over the next year. Trade, growth and investment 8. China has the second largest economy in the world. What marks out the Chinese economy is not only the scale of recent development but the speed: between 1978 and 2011, average growth exceeded 10 percent. This means that the Chinese economy could be more than 50 percent larger now than it was at the start of the global financial crisis in 2008. 9. Although the era of super-fast Chinese growth may be ending, with growth slowing and beginning to stabilise, the opportunities for trade and investment are significant. As China rebalances its economy and the domestic consumption increases, there will be a greater need for UK expertise to help China develop financial services, use green technologies to ensure sustainable development and provide low-cost healthcare. 10. UK goods exports to China are growing strongly, rising 12.8% last year to £9.9 billion. In April this year Britain’s monthly exports to China hit the £1 billion level for the first time. We are also attracting significant inward investment from China. Last year Chinese enterprises committed several billion pounds to a series of major UK investments. The last two months alone have seen Wanda commit to invest £700 million into the South Bank and ABP launch a major new project to invest £1 billion into the Royal Albert Docks. Both sides recognise the growing importance of our economic relationship. UK and Chinese leaders have publicly described the UK–China relationship as being a “partnership for growth”. 11. The Foreign and Commonwealth Office (FCO) and UK Trade & Investment (UKTI) are working hard to promote UK exports and attract inward investment. There has been a significant increase in the HMG resources allocated to China, the “network shift” discussed below, which has enabled us to expand our ability to promote UK prosperity. Posts across the China network have UKTI staff and prosperity staff, who run projects aimed at sharing UK best practice while also providing opportunities for UK companies to engage cobber Pack: U PL: CWE1 [E] Processed: [22-08-2013 10:15] Job: 031818 Unit: PG02 Ev 24 Foreign Affairs Committee: Evidence with Chinese institutions. Posts also lobby on specific market access issues for UK companies, both at national and provincial level. FCO capability 12. In his statement to Parliament on 11 May, the Foreign Secretary set out his ambitions for Britain’s future diplomatic network and expenditure allocation plans up to 2015. He announced a strategic shift in Britain’s overseas network to expand our connections with the 21st century’s rising powers. The FCO China network has been at the forefront of this programme, with an additional £4 million investment to increase staff numbers, aimed at increasing our reach, understanding and influence in China. 13. At present, the FCO’s China network has added 63 new staff, an increase of approximately 14%. Around one-third of these are new FCO diplomatic staff, the remainder are locally-engaged appointments. This uplift has led to new positions being created in priority areas such as financial services, health cooperation, and energy security. It has also enabled us to deepen cooperation in existing areas, such as on RMB internationalisation and intellectual property protection. We have also assigned more staff to increase our capacity to conduct digital diplomacy, getting UK messages out to China’s internet users who numbered 564 million at last count. We have allocated a significant number of new staff to conducting outreach activity in China’s second and third tier cities, improving our understanding and influence, boosting our prosperity agenda, and giving the UK a bigger presence. 14. To equip these new diplomats with appropriate language skills, we have expanded our Mandarin language training programme to meet the increased demand for Chinese speakers and we now offer Mandarin training to London-based FCO staff. 15. In addition to new staff, we are running a programme to upgrade our estate, through renovations to our existing estate and preparations to move, to more cost-effective buildings in Shanghai and Guangzhou, colocating with HMG partners and other organisations in these key cities. We are in negotiations with the Chinese authorities to open a further Consulate-General, alongside our existing Posts in Hong Kong, Shanghai, Guangzhou and Chongqing. Cross-Whitehall approach 16. China impacts directly on the delivery of many areas of the Government’s agenda, both international and domestic. Increasing numbers of Government Departments are developing links with the Chinese State. China Department in the FCO coordinates the overall strategic framework for the Government’s approach to China and, alongside the FCO China network in-country, advises and assists other departments in their contacts with the Chinese system. FCO Research Analysts provide in-depth expertise to support policy-making on issues involving China, and ensure this takes account of the latest thinking by external experts. 17. Coordination occurs at a number of different levels—from informal working level contacts for day-today requirements, to senior official-led cross-Whitehall meetings. The FCO also works closely with the National Security Secretariat in Cabinet Office to provide oversight and direction across the scope of Government business. Inside China, the Ambassador chairs the cross-departmental China Board of Management, which oversees delivery of a single county business plan bringing together a range of departmental objectives. Cyber security 18. The UK is vigorously pushing the international debate around cyber security. We do this multilaterally including at the Organisation for Security and Co-operation in Europe and the Association of Southeast Asian Nations (ASEAN) regional forum, of which China is a key member. Senior Chinese government officials also attended the Budapest Cyber Conference. 19. We welcome China’s contribution to the recent UN Group of Government Experts (UNGGE) discussion on Cyber Security. Agreeing recommendations for responsible state behaviour, confidence building measures and capacity building measures is a significant step forward to tackle challenges in cyberspace which affect us all. We hope China will join us in supporting the adoption of the UNGGE’s report at this year’s UN General Assembly. 20. In addition to raising cyber issues with the Chinese at official-level meetings, we fund exchanges and dialogues on cyber issues which increase our dialogue with China on a range of issues from cyber security, cyber crime and internet governance. We also work closely with the Chinese to combat cyber crime. For example the State Council Information Office blocked a number of websites in China that were illegally streaming live Premier League football matches. We continue to stress to China the importance of an open internet as the basis for thriving creative industries. 21. The UK is a leading player in cyber security. HMG has developed a risk mitigation strategy which enables the government to work with the major communication service providers in the UK to ensure that their networks and the services they provide are appropriately secure, regardless of the vendor used for infrastructure equipment. cobber Pack: U PL: CWE1 [O] Processed: [22-08-2013 10:15] Job: 031818 Unit: PG02 Foreign Affairs Committee: Evidence Ev 25 China’s Internal Policy New Chinese leadership and direction of internal policy 22. Since taking office General Secretary Xi Jinping and Premier Li Keqiang have set out an economic and social reform agenda with the stated goal of achieving “China’s national rejuvenation”. There appears to be a broad consensus on the need for further economic reforms to rebalance China’s economy away from investment and towards domestic consumption. China’s new leadership have spoken about the challenges ahead and the need to tackle vested interests within the Chinese system if they are to put in place a more sustainable growth model. The direction of any new policies is likely to emerge in the run up to the Third Plenum, a major Party meeting due this autumn. 23. Xi Jinping has made a number of statements which appear to be aimed at reassuring the Chinese people that the Party and Government will be more responsive to public concerns. His “Chinese Dream”, while not yet fully defined, appears to be trying to link individual aspirations with the Government’s policy programme; on corruption he has said that “power should be wielded within the cage of regulations” although it remains to be seen what this would mean in practice. Initiatives to promote the private sector and to push ahead with further urbanisation would require removing many controls and restrictions if they are to be effective, ie China’s household registration system which limits access to urban welfare schemes for rural migrants. 24. Nonetheless the new leadership has explicitly ruled out moving towards a Western-style political system. Instead, their approach is likely to focus on intra-Party reforms. Hong Kong 25. The handover of Hong Kong in 1997 marked a major milestone in the development of UK-China relations. We continue to have important legal, parliamentary, educational and professional connections with Hong Kong, as is shown by the intensity of high level exchanges. Hong Kong is a significant trading partner for the UK—bilateral trade between Hong Kong and the UK in goods for the period January to December 2012 amounted to £12.1 billion. Hong Kong was the UK’s 14th largest export market for goods and the second largest in Asia Pacific, after mainland China. 26. We take seriously our obligations to Hong Kong under the Sino-British Joint Declaration. We continue to publish Six-Monthly Reports to Parliament and the latest Report was laid before the House on 31 January. We consider that, in general, the principle of “One Country, Two Systems” continues to work in practice and that the rights and freedoms enshrined in the Joint Declaration continue to be upheld. We think it is important for Hong Kong’s future success that this principle continues to be respected. 27. We are clear that the transition to universal suffrage for the elections of the Chief Executive in 2017 and the Legislative Council in 2020 will be in the best interests of Hong Kong’s stability and prosperity. The precise shape of any constitutional package will be for the governments of China and Hong Kong and the Hong Kong people to decide, and it will be important that any proposals give the people of Hong Kong a genuine choice and enable them to feel they have a real stake in the outcome. 28. In general, the Hong Kong media has continued its tradition of lively reporting and investigative journalism. This was most evident in the blanket coverage of CIA whistleblower Edward Snowden who was in Hong Kong in June. Media coverage included reporting of government handling; and extensive commentary about the relevance of the case to Hong Kong’s rights, freedoms and legal and judicial system. Human Rights 29. China has made progress in improving the economic and social freedoms of its citizens in the last three decades. But we would like to see China lift the barriers that still remain with regards to ratification of the International Covenant on Civil and Political Rights, as part of China’s ongoing process of internal modernisation and reform. 30. We believe that the international community should take a coherent, consistent and constructive approach to engaging China on human rights issues. We work with the EU and other partners to achieve this, placing an emphasis on constructive long-term engagement. We focus in particular on: rule of law issues, especially the death penalty and criminal justice reform; freedom of expression; and the development of civil society. 31. On Tibet, we understand Chinese concerns and sensitivities about this complex issue. We continue to recognise Tibet as part of China and we do not support Tibetan independence. However, we encourage all parties to work towards the resumption of dialogue to ease tensions and work towards achieving meaningful autonomy for Tibetans within the framework of the Chinese constitution. 32. Our values engagement is built on three pillars: high-level exchanges, a bilateral human rights dialogue and a programme of technical support delivered in-country. We consistently raise human rights concerns directly with the Chinese leadership, both publicly and in private. We publish an annual report on human rights in China and provide online updates on a quarterly basis. In support of our human rights engagement we are stepping up our online public diplomacy. We aim to raise the profile of aspects of British society and promote values which resonate with the rapidly growing number of netizens on social media. cobber Pack: U PL: CWE1 [E] Processed: [22-08-2013 10:15] Job: 031818 Unit: PG02 Ev 26 Foreign Affairs Committee: Evidence China’s Foreign Policy China’s role on the global stage 33. China is increasingly taking on a more active international role as its global economic and political influence grows and its interests become more globalised. Securing the energy and other resources that China needs to grow is a major driver in its foreign policy: China consumes 60% of the world’s iron ore exports, worth over $110 billion per annum, and imports over half of the oil it uses and a third of its gas. But it is also looking to open up new opportunities for trade and investment in areas other than resources, especially in Europe and North America. 34. China describes its foreign policy approach as non-interference in other countries’ internal affairs. But its global economic footprint means China is likely to play an increasingly active role outside of East Asia, to protect its economic, military and diplomatic interests, as well as expatriate workers and businesses in unstable or disaster-prone regions. China’s counter-piracy operations in the Gulf of Aden since 2009, dispatch of naval vessels to support the evacuation of more than 35,000 Chinese nationals from Libya and first-ever deployment of combatant peacekeepers, to South Sudan, are examples of its growing reach and willingness to engage on matters of international peace and security. 35. As China’s global interests diversify, so too will the opportunities, and the challenges, in working with it on international issues. The UK’s interest is in encouraging China to play an active and responsible role and to recognise the full breadth of its interests on the world stage. We see China as a key partner with whom we want to expand our wider ties and common interests while having a constructive dialogue on areas where we disagree. The UK/China Strategic Dialogue, between the Foreign Secretary and his Chinese counterpart, now State Counsellor Yang Jiechi, is an important part of this relationship. It is supported by bilateral foreign and security dialogues and defence talks between UK and Chinese officials and military officers. 36. Our dialogue and cooperation with China on international issues is focused on three areas. Firstly, we want to encourage China to do more to help resolve international conflicts and prevent the spread and use of weapons of mass destruction. This includes taking action, in concert with the international community, to tackle the problem of a nuclear-armed North Korea. We work closely with China in the E3+3 format to stop Iran acquiring nuclear weapons. China has also made a contribution to peace and security in Mali and Sudan and South Sudan, and shown signs of increased commitment to stability in Afghanistan. Finally, China has an important part to play in tackling organised crime and illegal migration, as well as Chemical, Biological, Radiological, and Nuclear terrorism. 37. Secondly, we want to work with China to take action against dangerous climate change and to promote energy security. In the last year we have collaborated with China on influential energy and climate change projects, including on China’s future role in international energy governance and a tool that helps policy makers see the future impact on emissions of current energy policy decisions. 38. Thirdly, we are looking to expand our partnership with China on reducing global poverty, through multilateral initiatives such as the Millennium Development Goals and development co-operation in third countries. This year we began our first joint development projects with China, in Malawi and Uganda, under a Memorandum of Understanding that will allow for further collaboration in the future. China and the major powers 39. China’s most important relationship is with the US, with whom it must manage a multiplicity of issues of global consequence, including human rights, cyber security, and most crucially, security in East Asia and the Pacific. China and Russia coordinate their activity on international issues, notably in recent vetoes of UN Security Council resolutions on Syria. But although their relationship is growing closer, each also views its relationship with the US as a major priority, and some regional and economic differences persist. China’s relationship with India has improved in recent years, buoyed by deepening trade and growing economic ties. Yet tensions remain, notably over disputed border areas. 40. The EU is central to many UK interests in China. We want it to be open to Chinese trade and investment, but also to effectively exercise constructive influence based on its position as China’s largest export market and a strategic political partner. In preparing for the next EU-China Summit, in Autumn 2013, we will work within the EU to engage China positively on our concerns about market access and a level playing field for our firms, and encourage the EU and China to reach an amicable and negotiated solution on the Commission’s proposal for trade defence measures on solar panels and other trade issues. China and key security issues in East Asia 41. China has a complex relationship with other states in East Asia. It has built close economic and trade ties with Japan, the Republic of Korea and ASEAN and, the US-led Trans-Pacific Partnership aside, participates enthusiastically in regional trade initiatives. But many of China’s neighbours have welcomed the US “rebalancing” to Asia as a counterbalance to its growing economic and military power, and what is perceived by some as growing Chinese assertiveness in territorial disputes. cobber Pack: U PL: CWE1 [O] Processed: [22-08-2013 10:15] Job: 031818 Unit: PG02 Foreign Affairs Committee: Evidence Ev 27 42. China traditionally has a very close relationship with North Korea, but recently has publically expressed its concerns about North Korea’s behaviour and voted with us for new UN Security Council sanctions in March. It has repeatedly expressed its commitment to denuclearising the Korean Peninsula and supports the resumption of the Six Party Talks to work towards that goal. We encourage China to stress to North Korea that the international community will not tolerate its nuclear and ballistic missile programmes and that its long term interests will only be served by engagement with the international community. 43. Tensions between China and Japan over the Japanese-controlled Senkaku/Diaoyu Islands in the East China Sea have increased since their purchase by the Japanese government from a private owner last summer. This prompted a strong reaction by China, a rival claimant, including anti-Japan protests in September and regular movements near the islands by surveillance ships to assert Chinese claims. Meanwhile in the South China Sea, territorial disputes between China, Vietnam and the Philippines continue to cause worrying confrontations in one of the world’s busiest shipping lanes. 44. In both cases, the UK is concerned that an unforeseen event between rival parties, perhaps involving military or civilian enforcement vessels, could escalate into a more serious incident. Threats to Asia-Pacific peace and stability might have far reaching effects, including on the UK: for instance, recent tensions in the East China Sea have had a negative impact on trade between China and Japan, when the West is looking to Asia to generate global growth. Together with our partners in the EU, we encourage all sides to exercise restraint, resolve territorial issues through a process of dialogue and keep communication channels open. 5 July 2013 Printed in the United Kingdom by The Stationery Office Limited 08/2013 031818 19585
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