Wednesday, April 7, 2010

The Asia-Pacific Blue Paper 2010---A recent world seen by China

The Blue Paper

On April 6, 2010, The Asia Pacific Research Institute facilitated to the Chinese Academy of Social Sciences officially released the Asia-Pacific Development Report (2010), usually called the Asia-Pacific Blue Paper. The Blue Paper reflected to some extent China’s points of view to the recent world.

It concluded three main risks China is facing: imbalanced state of mind of some big countries, suspicions and concerns from the surrounding countries, and Asian economy. The following is the translated summaries of the risks described in the Asia-Pacific Blue Paper 2010,

First, Imbalanced state of mind of some big countries

In 2009 China was ranked as the world's largest exporter and its GDP was approaching the size of the second in the world. In facing of China's rise, some big countries’ imbalance on their mindset has been intensified and awareness of protection enhanced. The countries with such feelings objectively increased the risk of China’s security by stirring up nationalist feelings and manipulating behind the affairs such as Sino-Indian border dispute, Sino-Japanese East China Sea dispute, Sino-Australian Rio Tinto spy controversy, the North Korean nuclear issue, the conflicts between Myanmar Government and its ethnic people in the northern region of Myanmar, which caused a large-scaled cross-border refugees, and China’s Xinjiang up-rise on July 5th of 2009, and so on.

Second, Suspicions and concerns from the surrounding countries

The speculation of international community, from the China Threat Theory to China's Responsibility, from U.S. stakeholders to G2, to some extent exacerbated suspicions and concerns of the surrounding countries to China. G2 was a hot speculation of the international community in 2009. It not only overestimated the influence of China in international affairs, but also misjudged China’s basic orientation on its foreign policy that does not seek domination in the world. More importantly, it led some neighboring countries trying to push the regional large powers and bring in extra-regional powers to balance China's power. By the end of 2009, former Prime Minister of Singapore called on the U.S. to balance China in Asia reflected this mindset. In the South China Sea disputes, the relevant countries can be seen in a similar attempt.

Third, Asian economy

The international financial crisis has passed the worst period, but there are still many uncertainties for global economic recovery. So far, the Asian economy is the world leader in the process of economic recovery, at least in 2010. The Asian economy is expected to be still the fastest growing part of the world. In facing of the economic optimism in Asia, we must pay attention to future risks. Asian economic recovery has benefited from the governments’ economic stimuli. In fact, from the start of 2009 the regional increasing rate of asset prices generally higher than that of the rest of the world, such as stock prices, real estate prices. Even the rapid rise in world gold prices is closely associated with the hedging behavior of Asian investors. How to continue to loose monetary policy and curb the risk of asset bubbles is a tough problem facing Asian monetary authorities.

May the translated summaries above regarding the China’s Asia-Pacific Blue Paper 2010 useful to my readers.