Periphery Diplomacy: Moving to the Center of China’s Foreign Policy
Authours: Jianwei Wang, Hoo Tiang Boon
Date: 2018

An important event which largely evaded world attention took place
in Beijing on October 24–25, 2013. In what was an unprecedented
first, the Chinese Communist Party (CCP) convened a foreign policy
work conference specifically on the theme of China’s periphery
diplomacy (周边外交). Participated by, among others, the Politburo
standing committee, members of key Central Committee organs,
members of the Leading Small Group on Foreign affairs, and senior
diplomats, it was the second high-level CCP meeting on foreign
policy since 2006 and the first specific forum on periphery diplomacy
since the People’s Republic of China’s (PRC) establishment in 1949.
At this meeting, Xi Jinping underscored the priority and salience
of periphery diplomacy in Chinese foreign policy, noting that it is
crucial that China strove for “an excellent peripheral environment for
[its] development” so as to achieve the two Centennials’ objectives
and realize the “Chinese dream of the great rejuvenation of the
Chinese nation.” Periphery regions, Xi stated, “are strategically significant
to our country in terms of geography, the environment, and
relationships.” This strategic salience required China’s foreign policy
actors to “enhance political good will; deepen regional economic
integration; increase [its] cultural influence; and improve regional
security cooperation” in its periphery regions. These statements
affirmed the importance of a stable external milieu, in particular its
neighboring regions, for China’s domestic development, and recognized
the centrality of periphery diplomacy to achieve this goal.
Yet, this emphasis on periphery or neighborhood diplomacy
encompassed more than just holding it up as a priority aspect of the
Chinese foreign policy. The neighborhood diplomacy that Xi outlined
is also envisioned to be comprehensive and all-rounded. In other
words, Chinese periphery diplomacy should be omnidirectional: the
entire periphery region — and not just specific peripheries — will be
the focus of China’s “new” peripheral diplomacy. This called for
Chinese foreign policy to extend its focus beyond its traditional focus
on the East Asia region and pay equal, if not more, attention to its
“non-traditional” periphery and western geographies such as Central
and South Asia. This “look East and look West too” policy message
was clearly reflected in Xi’s speech when he pointedly evoked the idea
of reviving the Silk Road Economic Belt.4 In addition, the extension
of “periphery” has also been enlarged. Traditionally, the concept only
means those countries that share border with China. Now it goes
beyond that to cover the so-called “greater periphery”.
It is with this context in mind that we carried out a research project
focusing on China’s “new”, more holistic periphery diplomacy.
This book is the outcome of this research attention, and it features a
global cast of specialists examining the various dimensions of China’s
evolving relations with its neighborhood. It asks a number of central
questions about China’s evolving periphery diplomacy. How has
China’s understanding and cognition of its peripheral environment
evolved? What has driven China’s more periphery-centered foreign
policy? To what extent has China developed a coherent periphery
strategy? What are the shifts and continuities in its periphery policy?
In what ways have its periphery diplomacy had an impact on the relationships
with key regional players and regional integration in Asia?
And what is the emerging trajectory of this periphery policy under Xi
Jinping? These are some of the important questions that deserve
deeper and more complete examination and this book attempts to
find the answers.
Addressing Scholarship
Beyond shedding more light on the aforementioned questions, this
volume also addresses a number of puzzles in the study of China’s
international relations. First, while there has been considerable literature
that discusses China’s relations with its “traditional” periphery
of East Asia — it is traditional to the extent that this geography
has conventionally been understood as dominating Beijing’s
regional focus — the scholarship on China’s interactions with its
non-traditional periphery such as Central and South Asia is relatively
sparser. How can we understand China’s growing interactions with
these non-traditional regions? What has China done to manage its
border areas and how do these efforts relate to Chinese diplomacy
vis-à-vis its non-traditional periphery? What are the consequences
of China’s intensifying engagement with this non-traditional
periphery? There is clearly a need for a systematic effort to better
understand the complexities of China’s burgeoning linkages with its
non-traditional periphery.
Second, the findings of the book can serve a reference point to
compare China’s policies toward its traditional periphery and nontraditional
periphery. How are the policies different or similar? What
accounts for these divergences/convergences, to the extent they
exist? Is there an increasing strategic and diplomatic shift toward the
western periphery of China, relative to the eastern periphery? The
answers to these questions may help one better appreciate the full
substance of China’s evolving periphery diplomacy.
Third, insights drawn from this volume connect to the larger
picture of China’s rise. China’s global re-emergence is one of the key
leitmotifs of the 21st century. This subject has been interrogated and
analyzed from various angles and multiple theoretical perspectives.
But we argue that looking at China’s ascendancy from the lens of its
periphery strategy — including its engagement with both of its traditional
and non-traditional periphery — is an important and potentially
more fruitful way of approaching the issue. Indeed, the
experience in recent years demonstrates that the challenges and difficulties
China has been facing in its process of rising largely come
from its periphery. We are therefore arguing that a more comprehensive
understanding of China’s neighborhood diplomacy will lead to a
fuller and deeper interpretation of China’s rise and its implications.
Periphery Diplomacy in Action
In striving for a more holistic perspective, the book argues that
China’s periphery diplomacy has evolved to become more ambitious,
more extensive and more proactive. The latter characteristic is the key.
No longer content to be a passive recipient of the strategic currents
in Asia, Beijing is now taking more initiative to actively shape its
regional context. The increased sophistication of Chinese periphery
diplomacy is reflected in the calibrated ways in which Beijing has
sought to balance its seemingly “contradictory” twin goals of
pursuing
deeper and stronger regional relations while safeguarding or
advancing its regional territorial interests. The chapters in this book
undertake an in-depth inquiry in these regards.
Broad regional context
The first part of the book is aimed at providing a regional setting to
contextualize China’s periphery policy.
China’s policy toward its neighboring nations in large measures
is determined by its perception of the peripheral environment.
In Chapter 2, Jianwei Wang traces the evolution of Chinese leaders
and foreign policy elites’ perception of China’s changing peripheral
environment, including the nature, causes, implications of the
changes as well as the possible ways to deal with them. While different
assessment and opinions do exist, three consensuses have
emerged. First, the weight of periphery diplomacy in China’s overall
diplomacy has significantly increased. Second, China’s peripheral
environment has become, if not necessarily worse, more complex and
challenging in recent years. Third, while the main source of changes
in China’s new periphery comes from the exogenous powers such
as the United States and its regional allies, the rise of China per se
is also a critical contributing factor. Finally, China needs new ideas,
approaches and strategies to deal with a new and more dynamic
peripheral environment.
The most consequential variable in this environment is the
United States. The greater U.S. strategic focus on Asia in recent
years is examined by Xin Jin in Chapter 3. Jin notes that while several
Asian states have become more dependent on China economically,
a number of them have increasingly tilted toward the U.S. in the
security arena. This has led to suggestions that the more vigorous
responses by some regional states were in part an outcome of their
strategic emboldenment by the stronger U.S. regional presence; in
that sense, U.S.–China dynamics have an inevitable impact on shaping
regional security dynamics. Jin suggests that Sino-American relations
have reached a historical crossroad. While both powers perceive each
other with having fundamental strategic importance and are able to
(thus far) address their differences in a relatively pragmatic way, this
could change in the future and a potentially more conflictual U.S.–
China relationship cannot be discounted. This certainly has turned
out to be true in terms of the relationship under the Trump
administration.
This notion of a prospective U.S.–China conflict is an argument
commonly made by realist scholars or power transition theorists.
According to these scholars, a structural dilemma exists when an
emerging power rises to challenge the incumbent power, making war
or conflict more likely to break out. Harvard scholar Graham Allison
calls this the “Thucydides trap”, and it has been suggested that the
U.S. and China are headed toward this trap as both “contest for
supremacy” in Asia.
While not set up to address the debate on U.S.–China power
transition, Dan Liu’s Chapter 4 looks at one possible factor in mitigating
great power competition, one that relates to role of ideas —
specifically, China’s New Security Concept. The concept calls for the
rejection of zero-sum, Cold War security thinking in preference for
“mutual trust, mutual benefits, equality and coordination” in regional
security approaches. Liu’s chapter shows how China has tried to actualize
its New Security Concept and temper regional concerns through
its growing involvement in bilateral and multilateral confidencebuilding
measures (CBMs). The latter form of CBMs, in particular,
has become increasingly important in China’s periphery diplomacy.
The author also discusses obstacles facing China’s efforts to increase
mutual trust and confidence with its neighbors.
Northeast and Southeast Asia
The second part of the book dives deeper into China’s diplomacy
with the “traditional” periphery of East Asia. Northeast Asia is the
regional focus of Chapters 5 and 6. Ru Sun examines China’s evolving
policy in the Korean peninsula, noting that while its relations with the
South (ROK) have moved forward, dynamics with the North (DPRK)
have become more strained. Beijing has been particularly frustrated
by Pyongyang’s pursuit of its nuclear and missile program, and has
publicly backed UN Security Council’s resolutions that impose sanctions
on the DPRK. This tougher Chinese response does not mean,
however, that Beijing has fundamentally shifted its policy toward
North Korea. The DPRK is still significant for China’s strategic interests,
and Beijing continues to see negotiations as the best way to
promote enduring stability in the Korean peninsula. The recent rapid
thaw of the relationship between China and DPRK seems to suggest
that the fundamentals underlying the relationship remain intact.
In Chapter 6, Yunxiang Liang discusses the complex dynamics
between China and Japan. The history issues as well as rising nationalisms
in both countries have challenged this relationship, while the
disputes over maritime boundaries in the East China Sea and the
sovereignty of the Diaoyu–Senkaku islets have added further complications
in recent years. These complications make it even more
important, Liang argues, for both countries to resolve their differences
through diplomacy and dialogue. The Sino-Japanese Four
Point Consensus that was reached in November 2014, for example, is
a right step in that direction. Liang suggests that the France–Germany
example in Europe may be a possible model of regional cooperation
that could help China and Japan achieve positive breakthroughs in
their relationship. The slow improvement in Sino-Japanese relations
apparently points to this direction.
Following the examination on China’s Northeast Asia relations,
the book turns its regional focus toward Southeast Asia. In Chapter 7,
instead of dealing with China’s relations with ASEAN countries in
a bilateral fashion, Zhimin Lin explores Beijing’s engagement with
ASEAN — the most important institution in the region. He argues
that ASEAN countries serve as a litmus test of how well or difficult
it is for China to manage relations with its neighboring countries.
China’s engagement with ASEAN and its affiliated institutions has
helped create a new model for China to manage its relations with
neighboring countries. In this endeavor, China developed an approach
of regionalism that is different from both the American and European
ones. Instead of focusing on security and formal agreements, China’s
institutional engagement with ASEAN is more open-ended and
informal.
The challenge for Beijing is whether such an approach is
sufficient to manage conflicts rising from competing interests. The
tension and subsequent gap between China and ASEAN on the issue
of South China Sea highlight China’s dilemma in engaging ASEAN
countries.
This is exactly the focus of Chapter 8. In that chapter, Penghong
Cai analyzes China’s strategic relations with ASEAN countries, noting
the security dimension of this relationship has generally lagged behind
its economic facet. The escalation of the territorial disputes in the
South China Sea, differences in perceptions over China’s intentions
and its maritime behavior, the growing capabilities of the People’s
Liberation Army (PLA) Navy as well as the U.S.’s Asia strategy are
some key factors that have led to a more complicated security landscape
between China and ASEAN countries. While China will not
give up what it considers to be its legitimate security and territorial
interests in maritime Southeast Asia, it will also not turn away from
cooperative and “soft power” solutions to strengthen regional
stability.
One of these soft power responses in Southeast Asia is discussed in
Chapter 9. Qichao Wang highlights the series of coproduced documentary
films that detail and illustrate the cooperative aspects —
people-
to-people relations, cultural ties, economic transactions, etc. —
of relations between China and the Mekong river countries (Cambodia,
Myanmar, Lao, Vietnam and Thailand). According to him, the documentary
series significantly improved the image of China in the
Mekong river countries and greatly facilitated the cultural
exchanges
between China and these countries. Wang’s contribution is unique
in that it presents a view of China’s periphery diplomacy from a
“media” perspective, and draws attention to the lesser-explored
subject of China’s soft power projection in Southeast Asia.
South Asia
China’s complex and expanding relations in South Asia are explored
in the third thematic segment of the book. Gancheng Zhao provides
a broad strategic analysis of developments in Sino-Indian relations
in Chapter 10. Zhao suggests that the shifting complexities of
China–India relations can be traced to the shifting mutual perceptions
of both Asian powers even as these perceptions are continually
shaped by changes in the global strategic milieu and their respective
global “status”. For Beijing, India has grown in strategic importance
and is now a central component of its periphery diplomacy. China
sees relations with India as a “litmus test” for a successful periphery
diplomacy (particularly in its western periphery), and in that respect,
has continued with efforts to “make India a strategic partner”. There
have been a number of convergent areas which bind both sides closer
strategically, including growing bilateral trade ties, cooperation in
international organizations or groups such as BRICS, and reform of
the global economic and financial architecture, among others. At the
same time, issues such as the long-standing border dispute, military
dynamics, trading imbalance, contestation over water resources,
and China’s expanding presence in South Asia and the Indian Ocean
region, are some divergent aspects that continue to cast a shadow on
the bilateral relationship.
One of the more contentious aspects — the border demarcation
dispute — is examined in further depth by Nazia Hussain in
Chapter 11. This enduring dispute, in particular, the differing interpretations
over the Line of Actual Control (LAC), is arguably a key
factor why both China and India have had limited progress in the
political/security domain of their relationship. Here, Hussain
adopts an evolutionary approach to explain why the border dispute is
still unresolved after more than five decades, scrutinizing the origins
of the dispute, the 1962 Sino-Indian war, as well as the developments
and factors that have shaped the border negotiations since that war.
Hussain observes that India’s “humiliating” loss in the 1962 war
continues to shape Indian psyches toward China, and until the border
dispute, which is a reminder of that painful defeat, is amicably
resolved, a more strategically aligned relationship may be elusive.
In Chapter 12, Raghavendra Mishra, discusses another specific
aspect of China’s engagement in South Asia, with a focus on
“
measuring” its maritime context in the Indian Ocean region (IOR).
As someone with naval experience, Mishra provides a valuable “practitioner’s”
perspective, though it must be emphasized that this view does
not reflect the positions/policies of the Indian government or the
Royal Indian Navy. Mishra’s assessment — where he locates the key
Chinese interests in the IOR and explores the IOR dynamics between
China and India — leads to the conclusion that (at least in the maritime
domain), a “paradoxical and uneasy mix of cooperation and rivalry” or
what some would term “congagement”, exists and persists. But this is
not an unmanageable strategic situation, and it is opined that the
mature and prudent leaderships in both capitals will go a long way in
addressing the complexity of the relations between both powers.
Central Asia
The final part of the book is devoted to an examination of China’s
relations with the other key geographic areas of its “non-traditional”
periphery, Central Asia. Chapter 13 presents a unique Central Asian
perspective on this issue. Aidar Amrebayev, a Kazakhstani scholar,
discusses the broad overview of geostrategic developments in Central
Asia, noting the region has always been a geographic area that is
shaped by great power politics or what he notes as the “ratio of centres
of power”. Today’s strategic context presents Central Asian
states with three politico-economic models or “projects”: the
Russian model of a more Soviet-style Eurasian integration, China’s
Silk Road Economic Belt and the American democratic-sovereignty
template. While each has its strengths/weaknesses, Central Asian
states “cannot afford to choose” one or the other as this may mean
not only a closer induction into a particular power’s orbit and hence
a potential loss in strategic autonomy, but there may also be
“contradictory interactive impacts” from the other competing powers.
Thus, Central Asian countries have sought to maintain a balance
between the big powers, “optimizing the benefits offered to them
while keeping a distance”.
The discussion on regional geopolitical currents is complemented
by Alessandro Arduino’s (Chapter 14) study of the broad economic
developments in Central Asia, with a particular reference to China’s
burgeoning economic interests there. Arduino notes that China has
emerged as a major economic player in Central Asia, a development
which has engendered both optimism and anxiety among regional
states. Even as China’s economic approach toward the region has
increasingly focused on transregional integration, a strong energy
focus is palpable. Thus, even as regional infrastructural investment
and development are being prioritized, a key objective of China’s
economic agenda has been to develop an “alternative land energy
route”. Beijing also hopes that the development of its Central Asian
periphery will have a reciprocal economic impact on its autonomous
region of Xinjiang, which borders Tajikstan, Kyrgyzstan and
Kazakhstan, and whose modernization is seen as vital for addressing
the separatist and terrorism problems there. Arduino points out
that, under Xi Jinping, the key platform to advance China’s development
interests in Central Asia has been the Silk Road Economic
Belt (SREB).
A deeper examination of China’s SREB is the focus of Hongzhou
Zhang’s Chapter 15. The SREB, the overland wing of China’s One Belt
One Road initiative, is noted as a “key pillar” of Beijing’s larger global
strategy, and to that end, the Chinese government has been making
much effort to strategize and pursue this plan. But as Zhang observes,
the Central Asian region is key to its success. This means that certain
regional dynamics, particularly in Central Asia, will present complications
for China’s SREB. Not only is Central Asia a meeting point for
great power politics, Central Asia remains fractured by ongoing disputes
or contestations involving boundary, water and energy interests as
well as geopolitical differences and rivalry. Moreover, as the previous
chapter also points out, a degree of ambivalence still colors Central
Asian states’ perceptions toward the SREB.
The final chapter by Ambrish Dhaka focuses on another specific
aspect of China’s Central Asia strategy, namely its policy toward the
regionally and geopolitically critical state of Afghanistan. This is a
country described as the “Heart of Asia”, with a strategic geography
that intersects South Asia, Central Asia, Eurasia and the Middle East.
Beijing recognizes the strategic potential of Afghanistan, and in the
wake of the 2014 drawdown of U.S. forces, it has tried to play an
increasingly larger role in that country. Afghanistan is critical for
Chinese interests in Central Asia as well as its broader western periphery.
Economically, Kabul is seen as a vital “trade and transit hub”
for China’s transregional development plans as well as its energy/
resource needs. On security, particularly relating to its own concerns
over the problems of separatism, terrorism and extremism in Xinjiang,
Beijing perceives “it needs more than its traditional regional partner”
of Pakistan, and Kabul represents a “front-line” state on this front.
Moreover, Afghanistan has an ineluctable security and geopolitical
nexus to Pakistan (which itself is a key South Asian partner to China).
Taken together, the chapters of this volume explore the various
facets of China’s “new”, more omnidirectional regional policy — an
evolving diplomacy that pays equal, if not more, attention to China’s
western periphery at a time when the declared focus of U.S. strategy
is to turn greater American attention eastward. Indeed, the Indo-
Pacific strategy being developed by the Trump administration brings
attention to the new dimension of great power rivalry in the India
Ocean region. Ultimately, the chapters aim to provide another platform
from which one may understand China’s periphery policy and,
by extension, its international relations and rise, in greater totality
and depth.