Wandering China

An East/West pulse of China's fourth rise from down under.

Chinese investors become responsible in Latin America – study

Better days ahead.

Credit to a press wire for positive reporting on China where and when it is due.

Read the International Institute for Environment and Development (IIED) study here.

Thanks to ChinaSouthAmerica for the heads up.

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Chinese investors become responsible in Latin America – study
By Megan Rowling
Source: Thomson Reuters Foundation, published – Thu, 9 May 2013

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Pelicans gather as fishermen unload anchovies from ship at north Peru port of Chimbote. Peru, world’s top fishmeal exporter, sells anchovies as fishmeal for pigs in China. Picture December 14, 2012. REUTERS/Enrique Castro-Mendivil

LONDON (Thomson Reuters Foundation) – Chinese investors in Latin America are showing greater awareness of the social and environmental impacts of their business activities, and have started applying standards to make trade more sustainable, a research report said on Thursday.

The study from the International Institute for Environment and Development (IIED) looked at investment by Chinese state-owned enterprises in Peru, Brazil and Chile, in the mining, agriculture and forestry sectors. China is expected to overtake the European Union to become Latin America’s second-largest trade partner next year, after the United States, it noted.

“While Chinese companies have often been accused of performing worse in terms of sustainability than their foreign and domestic counterparts, evidence for this is far from conclusive,” said Emma Blackmore, the report’s lead author.

“Chinese investors face steep learning curves with respect to local practices and the contexts in which they are operating – both cultural and regulatory. But they are showing signs of increased recognition of the importance of sustainability in informing investment decisions and in building long-term relationships and China’s reputation in the region,” she added.

The main benefits for Latin America include economic growth, job creation and infrastructure development, such as roads or soy processing plants, the report said. “But there is a vital need to balance economic growth with improvements of livelihoods of the poor as well as protection of increasingly scarce natural resources,” it emphasised.

Development experts have made similar recommendations about China’s huge investments in Africa, but the report did not touch on this region.

‘MIXED’ RECORD

In Latin America, the IIED study described the social and environmental record of Chinese mining companies as “mixed”. It cited one example in Peru where a Chinese steel company, Shougang Corporation, was fined for reneging on a promise to invest $150 million in the local community. The firm has also been accused of paying very low wages.

In another case, that of the Toromocho mine project in Peru, Chinese aluminium giant Chinalco has built a new town to resettle the inhabitants of Morococha, and is due to create 5,000 jobs. The process has not gone smoothly, with some people reluctant to move.

But the company’s efforts to consult with the community and set up a social fund appear to “signify recognition by the company of the need to obtain a social licence to operate, and lesson-learning from previous Chinese experiences in the region”, the report said.

In Brazil, there are also positive signs. In 2011, Chongqing Grain Group announced a $4 billion investment in a new 100-hectare soy processing plant to be built in Barreiras in Bahia state on land donated by the local authority – a project that was welcomed by the Bahia agriculture secretary.

“This development may offer greater employment opportunities and allow Brazil to add value to its soy, although tangible benefits remain to be seen,” the report said.

DOMESTIC GUIDELINES

The study said that China had so far had limited involvement in international standards to boost the sustainability of trade and investment. For example, Beijing has rejected the Extractive Industries Transparency Initiative (EITI), but has given explicit backing to the ISO 26000 global guidance on social responsibility.

Blackmore told Thomson Reuters Foundation that international guidelines have tended to focus on trade between northern and southern hemisphere countries, applying largely to investors from member states of the Organisation for Economic Cooperation and Development.

“There is a need to involve southern trading partners, and China really can play a part,” she said. “Things are changing in the way standards are developed.”

China has crafted a number of domestic initiatives to ensure more responsible trade and investment, which may carry more weight. Outlined in the study, these include the Guidelines on Environmental Protection for China’s Outbound Investment and Cooperation, developed by China’s ministries of commerce and environmental protection, and China’s “green credit” guidelines, which are intended to shape the investment decisions of banks by assessing environmental and social risks.

Blackmore welcomed these as a positive development, but said they should not exclude smaller business and farmers. “They look great on paper, but it will be important to see what happens and to have oversight of that,” she added. A growing number of Chinese civil society groups are keeping tabs on what corporations are doing, even though social networking tools like Facebook are restricted, she noted.

Despite the difference in governance systems between China and the Latin American nations where they operate, Chinese companies are increasingly engaging with local communities in a democratic context, Blackmore said.

The paper also highlighted the importance of legislation and regulation, and how these are enforced in the host country. In Peru, Chinese investors have set up new companies and projects that are fully owned, or obtained majority shares of Peruvian companies, giving them more independence. But in Brazil, they have often had to form partnerships with local firms, inheriting their relatively well-developed sustainability agendas, it said.

This week, the Peruvian government said it is trying to quash the ability of companies to avoid paying environmental fines by lodging judicial appeals that linger for years, as part of a push to crack down on polluters in the top mineral-exporting nation.

Filed under: The Chinese Identity, Culture, International Relations, Media, Tao Guang Yang Hui (韬光养晦), Mapping Feelings, Economics, Reuters, Communications, Charm Offensive, Soft Power, Influence, Chinese Model, Beijing Consensus, Government & Policy, Peru, Ideology, Latin America

北京簋街 汉族餐饮店与藏族摊贩群殴 Ai Weiwei films Beijing street brawl [Youtube/Al Jazeera]

China is difficult to govern. Intercultural misunderstandings as such perhaps do not get as much light of day as they should. It highlights the income divide, one perhaps stratified by ethnicity or failure to subscribe to the dominant narrative.

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Ai Weiwei films Beijing street brawl
Video shows fight between Tibetan vendors and Han workers in China’s capital.
Source - Youtube, published May 12, 2013

Text below from Reuters – May, 13, 2013

Chinese artist and activist Ai Weiwei posted a dramatic video on Sunday showing a violent brawl in the streets of Beijing.
Ai wrote on Twitter that the fight broke out after Han Chinese restaurant owners destroyed a stall run by Tibetan street vendors. Witnesses later told Reuters that security workers refused to allow the vendors to set up shop outside the restaurant.
There are a reported 10,000 Tibetans living in Beijing, and Han Chinese make up 92 percent of China’s population.

Filed under: Ai Weiwei, Al Jazeera, Beijing Consensus, Censorship, Chinese Model, Communications, Culture, Government & Policy, Mapping Feelings, Peaceful Development, People, Social, Tao Guang Yang Hui (韬光养晦), The Chinese Identity, Youtube

Why China Executes So Many People [The Atalantic] #RisingChina #Ideology #CapitalPunishment

The title might provoke as it fails to provide a wider sense of reference to execution rates per capita to qualify ‘so many people’. Portraying China with such negative headline bias is not the smartest trick in the book.

China has six times more people at least. Social stability perhaps does not carry much semantic weight until one has visited and stepped foot into China. Managing people on such a scale requires a firmer hand in some areas, with a lighter touch on other areas.

Yet, it simply shows the song remains the same.

Through antiquity, the elite class functioned above the law – reform here will remain difficult, but policies are set in the right direction. The challenge remains in eliminating the culture of downstream beneficiaries to support one’s own ascension in modern Chinese society.

And just like the old days the everyday people have to wait their turn outside petition areas or outside the gates of official walls if they want to express their claims the old way – many times they do this with critical mass and with notable effect. Of course, social media is the new public opinion outlet today.

However its approach of getting to the root is time-tested, and goes some way to explain the numbers. This usually means eliminating a whole chain as far as possible.

In 2011, China  made efforts to amend the number of capital crimes from 68-55.

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Why China Executes So Many People
by Zi Heng Lim
Source – The Atlantic, published May 10,2013

Suspects listen to their verdicts at a court in Kunming, Yunnan province, November 6, 2012. Photo source (Reuters)

Suspects listen to their verdicts at a court in Kunming, Yunnan province, November 6, 2012. Photo source (Reuters)

Zhang Jing has only seen her husband four times in the past four years. This Thursday, it will have been be exactly two years since they last met.

And she may never see him again.

That’s because Zhang’s husband, Xia Junfeng, a former street vendor in the northeastern city of Shenyang, was sentenced to death in 2011 for stabbing to death two chengguan, who are much-maligned city management inspectors responsible for enforcing law and order.

The sentence is now under final review by the Supreme People’s Court in Beijing. If approved, Xia will not be able to appeal and will be executed.

Please click here to read the full article at the Atlantic Mobile.

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Filed under: 52 Unacceptable Practices, Beijing Consensus, Chinese Model, Corruption, Crime, Domestic Growth, Government & Policy, Human Rights, Ideology, Mapping Feelings, New Leadership, Peaceful Development, Population, Tao Guang Yang Hui (韬光养晦), The Atlantic, The Chinese Identity

Escape From China: One-Fifth Of Affluent Chinese Plan To Emigrate [IBT] #RisingChina #Emigration

Third wave of emigration = more agents for Chinese public diplomacy?

To access the International Emigration Report 2012, go here.

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Escape From China: One-Fifth Of Affluent Chinese Plan To Emigrate
By Sophie Song
Source – International Business Times, published May 07 2013

According to China’s International Emigration Report (2012), jointly published by the Center for China & Globalization and the Beijing Institute of Technology School of Law, China is now experiencing a third wave of emigration, one that will take its newly accrued wealth abroad.

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Photo: REUTERS/Enrique Castro-Mendivil Chinese immigrants eat during the Chinese New Year celebrations in Lima.

“The most significant difference between the current group of emigration and previous emigrants is that the masses are now emigrating by investment,” Wang Huiyao, the director of the Center for China & Globalization, said in an interview with China Youth, a Chinese newspaper focused on China’s young people.

The first Chinese citizens to emigrate en masse left at the end of the 1970s, when China first rolled out its economic reforms, according to Wang. Many from China’s coastal provinces emigrated illegally. The second wave came at the end of the 1980s, when the first generation of Chinese with advanced, often technical, degrees emigrated. Now, with the third wave taking place, China’s richest are bringing their newly acquired wealth elsewhere. They will, or at least their destination countries hope they will, create work opportunities for natives by investing in businesses there.

According to the Chinese Affluent Class Wealth White Paper published by Forbes China, 10.26 million Chinese could be considered affluent. Of this group, 2.6 percent have already emigrated, and 21.4 percent plan to do so. Significantly, when asked whether they want to send their kids to attend school outside of China, 74.9 percent answered yes.

Please click here to read the full article at its source.

Recently, the emigration fever has spread from coastal towns to large cities and even, at a slower pace, to smaller cities.

“Previously, most emigrants came from coastal regions,” said Zhang Yuehui, an immigration expert. “Fujian province, for example, even had whole villages that emigrated together. In Fujian, there might not be anyone willing to loan you money if you wanted to go to college, but if you want to illegally emigrate, many people will lend you money, because they can reasonably expect a higher return.”

Traditionally, Chinese emigrants have aimed for highly developed Western countries. The U.S., Canada, Australia and New Zealand, with their welcoming environments and open immigration policies, have been especially popular.

“These countries are more welcoming toward talented, skilled immigrants,” Wang said. “Their policies are really meant to attract the best talent from China.”

With the recent debt crisis, many smaller countries in Europe are now hoping to attract investors from abroad. Policies have been relaxed so that it is possible to immigrate to some of these countries merely by purchasing a home.

Traditionally, Chinese living abroad have resided in Chinese communities. With considerable language and cultural barriers as well as less than ideal economic conditions, immigrants often could not or were not willing to partake in their host countries’ political and social life. Now, as recent emigrants’ overall wealth and education levels increase, and as the earliest emigrants settle into their host countries, ethnic Chinese are beginning to take a larger, more active role in their communities, notes China Youth.

Filed under: Beijing Consensus, Charm Offensive, Chinese Model, Chinese overseas, Collectivism, Culture, Domestic Growth, Economics, Ethnicity, History, Ideology, International Relations, Mapping Feelings, Modernisation, Overseas Chinese, Peaceful Development, Public Diplomacy, Reform, Social, Soft Power, Strategy, Tao Guang Yang Hui (韬光养晦), The Chinese Identity, The construction of Chinese and Non-Chinese identities

China’s ‘Pilates Diplomacy’ [China File / The Atlantic] #RisingChina #Diplomacy

Trying to pick the Chinese mind…

In China, foreign affairs are portrayed as very personal. A set phrase for diplomats is that something “hurt the feelings of the Chinese people.” To an outsider, that rings odd. One can’t imagine Secretary Clinton angrily telling Putin “You’ve hurt the feelings of the American people.” Talk about “feelings” seems better suited for couples counseling than global politics. One Chinese scholar analyzed the use of the phrase and suggests it shows improved ties to the world — after all you, only a friend can really hurt your feelings.The flip side, though, is if you’re feelings are you hurt you may act irrationally.

For an expanded read, please go to  What’s Really at the Core of China’s “Core Interests”?

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China’s ‘Pilates Diplomacy’
China File by Shai Oster
Source – Atlantic, published April 30, 2013

It’s Pilates diplomacy: work on your core. China’s diplomats keep talking about China’s core interests and it’s a growing list. In 2011, China included its political system and social stability as core interests. This year, it has added a vast chunk of the South China Sea to its core.

China’s certainly appearing more assertive in defining and defending that growing core.

Has it achieved its goals? From what I’ve seen, the answer is an emphatic “no.” A decade of cultivating the image a of a friendly neighbor intent on a peaceful rise appears to have been squandered. Vietnam, the Philippines, Mongolia, India, Myanmar are have all had run-ins with China over territorial and business disputes. There’s a growing sense that China is starting to act like a bully and that’s given the U.S. an opening. So, instead of strengthening China’s role, China’s foreign policy has ended up creating a new opportunity for the U.S. in the region. Oops.

Please click here to read the rest of the article at its source.

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Filed under: Beijing Consensus, Charm Offensive, Chinese Model, Culture, Government & Policy, Ideology, Influence, International Relations, Mapping Feelings, Peaceful Development, Politics, Public Diplomacy, Soft Power, Strategy, Tao Guang Yang Hui (韬光养晦), Territorial Disputes, The Chinese Identity, The construction of Chinese and Non-Chinese identities, U.S.

China’s youngest comrades: Communists at college [CNN] #RisingChina #Ideology #CCPYouth

Leveraging a political head start where ideological adherence brings great reward.

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China’s youngest comrades: Communists at college
By Jonathan Levine, for CNN
Source – CNN, published May 1, 2013

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Source – CNN File image from 2012 shows students graduating in Anhui Province — many students are targeted for recruitment by the party.

Beijing (CNN) — Allan Yang would be a success story in any country.

Originally from China’s impoverished interior, he was the first member of his family to leave his native Anhui province and is now pursuing an MBA at the prestigious Tsinghua University in Beijing.

At 24, Yang is the face of new China: erudite, sophisticated and a card-carrying member of the Communist Party.

“It’s just like applying for university in the United States,” he said of the party. “You give an application letter and submit some reports that test your knowledge of Communist history.”

In fact the process is a bit more complicated. Unlike applying to college, a successful application for membership in the Chinese Communist Party typically takes years. Arduous “observational periods” are required when prospective members are expected to read the classics of Socialism, become steeped in the party ideology and submit an unending series of essays that are little more than long paeans to the party’s greatness.

Please click here to read the full article at its source.

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Filed under: Beijing Consensus, Charm Offensive, Chinese Model, CNN, Collectivism, Confucius, Culture, Domestic Growth, Economics, Education, Government & Policy, Ideology, Influence, Mapping Feelings, New Leadership, Peaceful Development, People, Politics, Public Diplomacy, Reform, Social, Soft Power, Strategy, Tao Guang Yang Hui (韬光养晦), The Chinese Identity

What China and Russia Don’t Get About Soft Power [Foreign Policy] #RisingChina #Softpower

Joseph Nye who coined the term soft power critiques China and Russia’s yielding of it.

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What China and Russia Don’t Get About Soft Power
Beijing and Moscow are trying their hands at attraction, and failing — miserably.
By Joseph Nye
Source – Foreign Policy, published April 29, 2013

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Photo- FP

When Foreign Policy first published my essay “Soft Power” in 1990, who would have expected that someday the term would be used by the likes of Hu Jintao or Vladimir Putin? Yet Hu told the Chinese Communist Party in 2007 that China needed to increase its soft power, and Putin recently urged Russian diplomats to apply soft power more extensively. Neither leader, however, seems to have understood how to accomplish his goals.

Power is the ability to affect others to get the outcomes one wants, and that can be accomplished in three main ways — by coercion, payment, or attraction. If you can add the soft power of attraction to your toolkit, you can economize on carrots and sticks. For a rising power like China whose growing economic and military might frightens its neighbors into counter-balancing coalitions, a smart strategy includes soft power to make China look less frightening and the balancing coalitions less effective. For a declining power like Russia (or Britain before it), a residual soft power helps to cushion the fall.

The soft power of a country rests primarily on three resources: its culture (in places where it is attractive to others), its political values (when it lives up to them at home and abroad), and its foreign policies (when they are seen as legitimate and having moral authority). But combining these resources is not always easy.

Please click here to read the rest if the article at its source.

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Filed under: Beijing Consensus, Charm Offensive, Chinese Model, Culture, Domestic Growth, Foreign Policy Magazine, Government & Policy, Influence, International Relations, Mapping Feelings, Nationalism, New Leadership, Peaceful Development, Politics, Public Diplomacy, Reform, Russia, Soft Power, Strategy, Tao Guang Yang Hui (韬光养晦), The Chinese Identity, The construction of Chinese and Non-Chinese identities, U.S.

Rhodes East: Why is the Schwarzman Scholarship in China? [New Yorker] #RisingChina #SchwarzmanScholarship #CrossPollination

200 scholars annually to bridge a great divide in bilateral relations:

For more, see

China’s Internet Users to Schwarzman Scholarship: Meh (Tea Leaf Nation blog, April 24, 2013)

The Limits of Stephen Schwarzman’s Scholarship Diplomacy (The Atlantic, April 26, 2013)

Private equity titan eyes China for a rival to Rhodes Scholarship (The Conversation, April 24, 2013)

Related on WanderingChina
S$370m scholarship aims to cool Beijing-West tensions [TODAYonline] April 22, 2013

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Rhodes East: Why is the Schwarzman Scholarship in China
By Evan Osnos
Source – New Yorker, published April 26, 2013

“Remember that you are an Englishman, and have consequently won first prize in the lottery of life.” So said Cecil Rhodes, the diamond miner and an ardent believer in British colonialism, who, in 1902, established the Oxford scholarship that bears his name, so that some of the world’s best young minds could come as near as they might hope to being English.

This week, Stephen Schwarzman, the chairman and chief executive of the Blackstone Group, invoked Rhodes’s gift as the inspiration behind a large new scholarship for study not in America but in China. He is hoping that familiarity with the world’s rising superpower will blunt growing American anxiety about changes in status. “Anger can lead to trade problems, and ultimately to military confrontation,” he told me. “We had to find a way to stop or ameliorate that situation.” The scholarship will draw two hundred students a year to a one-year English-language master’s program at a dedicated new college inside Tsinghua University. Twenty per cent of the winners will be from China, forty-five per cent from America, and the remainder from elsewhere. Schwarzman is giving a hundred million of a personal fortune estimated at $6.5 billion, and raising another two hundred million largely from blue-chip companies with big investments in China, to create an endowment that the Times calls “one of the largest single gifts to education in the world and one of the largest philanthropic gifts ever in China.”

In the China-watching world, the announcement created a stir, and a few questions: Will this inspire more giving from Chinese tycoons? When will the program expand to include African applicants? How much of China can one learn in one year?

Before Schwarzman announced it at the Great Hall of the People, I sat down with him in Beijing. Here is an edited transcript.

Please click here to read the full article at its source.

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Filed under: Beijing Consensus, Charm Offensive, Chinese Model, Communications, Culture, Economics, Finance, History, Influence, International Relations, Peaceful Development, Public Diplomacy, Soft Power, Strategy, Tao Guang Yang Hui (韬光养晦), The Chinese Identity, The construction of Chinese and Non-Chinese identities, Trade, U.S.

Growing breed of Chinese moguls Down Under [Straits Times] #RisingChina #OverseasChinese #Australia

Chinese moguls keeping a toe down under.

‘Australia has more links to China’s tycoons than any other country except the United States, according to the compiler of the Hurun list.’

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Growing breed of Chinese moguls Down Under
Based in China, they have big investments in Australia and some have political clout as well
By Jonathan Pearlman, In Sydney
Source – Straits Times, published April 28, 2013

Xu Rongmao. --  PHOTO: by APPLE DAILY

Xu Rongmao. –
PHOTO: by APPLE DAILY

When a rare chance arose to buy a World Heritage-listed resort island in the Great Barrier Reef last year, Australian-Chinese media mogul William Han decided to invest in paradise.

“Aussie Bill”, as he is known, outbid 200 others for the 584ha Lindeman Island off the coast of Queensland from Club Med, shelling out A$12 million (S$15.3 million) for it. He now plans to spend another A$500 million at least to turn it into a high-end resort for Asian holidaymakers.

Mr Han is one of a growing breed of Chinese-Australian moguls, several of whom are on China’s top 1,000 rich list compiled by the Hurun Report magazine.

Shanghai-based property mogul Xu Rongmao was ranked No. 12 last year with an estimated worth of US$4.7 billion (S$5.8 billion). An Australian citizen, he has invested in properties in Sydney and Darwin and educated both his children in Australia.

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Filed under: Australia, Beijing Consensus, Channel News Asia, Chinese Model, Chinese overseas, Economics, Finance, Greater China, Influence, International Relations, Overseas Chinese, Peaceful Development, Public Diplomacy, Social, Soft Power, Straits Times, Tao Guang Yang Hui (韬光养晦), The Australian, The Chinese Identity

Senior PLA naval officer pledges ‘bigger and better’ aircraft carriers [SCMP] #RisingChina #BlueWaterStrategy

Destination: unavoidable – blue-water navy.

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Senior PLA naval officer pledges ‘bigger and better’ aircraft carriers
Senior PLA naval officer says it is hoped next vessel will be bigger than Liaoning, but denies reports carriers are being built in Shanghai
By Minnie Chan
Source – South China Morning Post, published Thursday, 25 April, 2013

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A senior naval officer says China will have more aircraft carriers and they will probably be bigger and more powerful than its first carrier, the Liaoning, which was commissioned in September.

“China will have more than one aircraft carrier,” Rear Admiral Song Xue , deputy chief of staff of the People’s Liberation Army Navy, told foreign military attaches at a ceremony to celebrate the 64th anniversary of the navy’s founding on Tuesday, Xinhua reported.

“We hope the next aircraft carrier can be bigger, because then it would be able to carry more aircraft and be more powerful,” he added. Without giving details, he said that some foreign media reports about China building new aircraft carriers in Shanghai were not accurate, Xinhua reported.

Please click here to read the full article at its source.

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Filed under: Beijing Consensus, Chinese Model, Domestic Growth, Economics, Government & Policy, Greater China, Hard Power, Ideology, Influence, International Relations, Mapping Feelings, military, Modernisation, Nationalism, Peaceful Development, Politics, Public Diplomacy, Reform, Strategy, Tao Guang Yang Hui (韬光养晦)

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