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US-China Commission Report - Fatal System Error

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CHAPTER 4<br />

CHINA’S FOREIGN ACTIVITIES<br />

AND RELATIONSHIPS<br />

SECTION 1: CHINA’S EXPANDING GLOBAL<br />

INFLUENCE AND ITS FOREIGN POLICY<br />

GOALS AND TOOLS<br />

‘‘The <strong>Commission</strong> shall investigate and report exclusively on—<br />

...<br />

‘‘REGIONAL ECONOMIC AND SECURITY IMPACTS—The triangular<br />

economic and security relationship among the United<br />

States, [Taiwan], and the People’s Republic of <strong>China</strong> (including<br />

the military modernization and force deployments of the<br />

People’s Republic of <strong>China</strong> aimed at [Taiwan]), the national<br />

budget of the People’s Republic of <strong>China</strong>, and the fiscal<br />

strength of the People’s Republic of <strong>China</strong> in relation to internal<br />

instability in the People’s Republic of <strong>China</strong> and the likelihood<br />

of the externalization of problems arising from such internal<br />

instability. . . .’’<br />

Introduction<br />

<strong>China</strong>, as other nations, uses economic, military, and political<br />

tools to advance its interests on the world stage. <strong>China</strong>’s growing<br />

activism is an attempt to demonstrate that it has recaptured great<br />

power status. In 2008, more than ever before, with the Olympic<br />

Games taking place in Beijing, <strong>China</strong> has promoted its economic<br />

strength and potential for growth and has courted international<br />

partnerships to support its policies. At times, it also has exerted<br />

pressure to change others’ behavior—with some frequency in directions<br />

not favored by the United States—or to quell criticism of the<br />

Chinese government’s actions. However, then-Deputy Assistant<br />

Secretary of State for East Asian and Pacific Affairs Thomas Christensen<br />

testified to the <strong>Commission</strong> that <strong>China</strong>’s behavior abroad is<br />

generally moving in a positive direction. 1<br />

This section does not document <strong>China</strong>’s activities around the<br />

world; the <strong>Commission</strong> has done that in its Annual <strong>Report</strong>s in previous<br />

years. The objective of this section is to examine the motivations<br />

behind <strong>China</strong>’s foreign policy and to identify the tools the<br />

Chinese government uses to accomplish its foreign policy goals.<br />

With a better understanding of why, how, and when <strong>China</strong> seeks<br />

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