China and the Global South

CHINA AND THE GLOBAL SOUTHCHINA AND THE GLOBAL SOUTHCHINA AND THE GLOBAL SOUTHCHINA AND THE GLOBAL SOUTH

PS 282, 2nd sem AY 2012-2013 (July 6, 2013)

Report by Kristine Sabillo, MA Philippine Studies, Asian Center,

University of the Philippines - Diliman

FAST FACTS ABOUT CHINAFAST FACTS ABOUT CHINAFAST FACTS ABOUT CHINAFAST FACTS ABOUT CHINA

– World’s most populous country

– Found in East Asia

– Single-party state w/ jurisdiction over

22 provinces, 5 autonomous regions, 4

direct-controlled municipalities and 2

– Now the 2nd largest economy

– Initiated market reforms since

1978, from centrally planned to

market-based economy

–direct-controlled municipalities and 2

special administrative regions (Hong

Kong & Macau) + Taiwan

Date 2Footer

market-based economy

– BUT…China is still a developing

country

CHINA AS PART OF GLOBAL SOUTHCHINA AS PART OF GLOBAL SOUTHCHINA AS PART OF GLOBAL SOUTHCHINA AS PART OF GLOBAL SOUTH

• From ADB’s 2010 The Rise of Asia’ Middle Class

– Second level

• Third level

– Fourth level

» Fifth level» Fifth level

Date 3Footer

CHINA AS PART OF GLOBAL SOUTHCHINA AS PART OF GLOBAL SOUTHCHINA AS PART OF GLOBAL SOUTHCHINA AS PART OF GLOBAL SOUTH

• World Bank indicators: upper middle income

• From 84% poverty incidence in 1981 to 12% in 2010. But poor people still number around

almost 100 million.

• High inequality – flow of rural migrants to cities, low-end jobs competitive, keeping wages low

•

High inequality – flow of rural migrants to cities, low-end jobs competitive, keeping wages low

• US dollar billionaires in China increased from 130 in 2009 to 251 in 2012, giving China the

world's second-highest number of billionaires

• Challenges to environmental sustainability,

pollution

• Human rights issues

Date 4Footer

CHINA ECONOMIC RELATIONSCHINA ECONOMIC RELATIONSCHINA ECONOMIC RELATIONSCHINA ECONOMIC RELATIONS

• Recently, the World Trade Organization

asked China to lead multilateral trade and

work with the US, EU and Japan in

formulating a new global trade agenda.

WTO recognizes China as a bridge

between emerging economies and

developed countries.developed countries.

• IMF Growth projections:

Date 5Footer

2011 2012 2013* 2014*

Advanced economies 1.6% 1.2% 1.2% 2.2%

China 9.3% 7.8% 8% 8.2%

ASEAN 5 (Indonesia, Malaysia, Philippines, Thailand, Vietnam) 4.5% 6.1% 5.9% 5.5%

Latin America & Caribbean 4.6% 3% 3.4% 3.9%

Middle East, North Africa, Afghanistan, Pakistan 3.9% 4.7% 3.1% 3.7%

Sub-Saharan Africa 5.3% 4.8% 5.6% 6.1%

CHINA ECONOMIC RELATIONSCHINA ECONOMIC RELATIONSCHINA ECONOMIC RELATIONSCHINA ECONOMIC RELATIONS

Who invests in

China:

– Hong Kong

– British Virgin Islands

– Japan

Where China

invests:

– Hong Kong

– Cayman Islands


• China continued to be ASEAN’s largest trading

partner since 2009. Trade between ASEAN and

China increased by 20.9% from US$232 billion

in 2010 to US$280.4 billion in 2011

• ASEAN exported US$145.7 billion, an increase

of 28.9% compared to the previous year.

Imports from China grew by 13.2% amounting – Japan

– South Korea

– United States

– Taiwan

– Singapore

– Cayman Islands

– Germany

– West Samoa

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– Australia

– South Africa

– Singapore

– United States

– Canada

– Russia

– Myanmar

Imports from China grew by 13.2% amounting

to US$134.7 billion.

• ASEAN is currently China’s third largest

trading partner, stepping up from fourth place

in 2010

• foreign direct investment flow from China to

ASEAN increased significantly by 117% from

US$2.7 billion in 2010 to US$5.9 billion in

2011

RPRPRPRP----CHINA ECONOMIC RELATIONSCHINA ECONOMIC RELATIONSCHINA ECONOMIC RELATIONSCHINA ECONOMIC RELATIONS

• Extensive economic ties since 7th century

• Establishment of diplomatic relations on June 9, 1975

• Stronger mutual trade and investments starting 21st century

• China is Philippines’ top 3 trading partner in 2010. It is also the country’s 4th

largest export market and 5th largest supplier of imports in 2006. China is also 9thlargest export market and 5 largest supplier of imports in 2006. China is also 9

top foreign investor in 2010 and 4th largest source of tourists in 2012.

• Top 5 products exported to China: electrical products, copper cathodes, nickel ores

and concentrates, other coal, copper ores and concentrates

• Top 5 products imported by the Philippines from China: electronics, office machine

parts, LPG, urea, ceramic products

• Bilateral agreements: agriculture, railways, finance

SOURCES: NSO, DFA

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OFWs in CHINAOFWs in CHINAOFWs in CHINAOFWs in CHINA

2004 2005 2006 2007 2008 2009

Hong

Kong

87,254 94,553 7% or

106,050

6.7% or

117,049

5.9% or

118,118

6% or

114,720

Taiwan 45,059 46,714 6.1% or

92,415

5.5% or

96,085

4.2% or

84,084

3.4% or

65,008

East Asia

(others)

3.5% or

53,025

3.1% or

54,157

3.6% or

72,072

3.5% or

66,920

China 0.83% or

• ISSUES

– Undocumented OFWs (8,954 documented in 2010, undocumented?)

– Filipinos on death row (over 70 now, executed Ramon Credo, Sally Villanueva and Elizabeth

Batain, etc.); drug problem in China

– State of OFWs in China (inc Hong Kong): foreign house helpers not allowed in China

except to work for diplomats

– Others

Date 8Footer

China 0.83% or

8,771

CHINACHINACHINACHINA----ASEAN SECURITY CONCERNSASEAN SECURITY CONCERNSASEAN SECURITY CONCERNSASEAN SECURITY CONCERNS

• Territorial disputes as a main source of friction between China and

ASEAN nations.

• 1993 creation of the ASEAN Regional Forum intended to engage

China in dialogue

• South China Sea – marginal sea, part of the Pacific Ocean; one-third • South China Sea – marginal sea, part of the Pacific Ocean; one-third

of the world’s shipping transit through its waters, 2nd most used sea

lane, believed to hold huge oil and gas reserves

– Contains over 250 islands and other features grouped into: Spratly Islands, Paracel Islands,

Pratas Islands, Macclesfield Bank and Scarborough Shoal

– Located south of China and Taiwan, west of Philippines, north west of Sarawak, Sabah

and Brunei, north of Indonesia, northeast of Malay Peninsula and Singapore, east of

Vietname

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• In 1992, China passed a new law

on its Territorial Sea and

Contiguous Zone reiterating claim

over Paracels (Xisha), Spratlys

(Nansha), Macclesfield

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over Paracels (Xisha), Spratlys

(Nansha), Macclesfield

(Zhongsha), Pratas (Dongsha),

Pescadores (Penghu islands west

of Taiwan) and Diaoyu (Japan’s

Senkaku) islands.

• Map from SEASissues.org


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• Map from SEASissues.org


• Claims:

Area Location Claimants Basis

Spratly islands Off the coast of PH,

Sabah and Vietnam

PH (Kalayaan),

Malaysia, Vietnam,

China, Taiwan, Brunei

UNCLOS, historical

account

Paracel islands Off the coast of China

and Vietnam

China, Taiwan, Vietnam Historical account,

UNCLOS

Date 12Footer

and Vietnam UNCLOS

Pratas islands Southeast Hong Kong China, Taiwan, Japan Historical accounts

Macclesfield

Bank

East of Paracel China, Taiwan,

Vietnam?

UNCLOS

(underwater?)

Scarborough

Shoal

West Philippines

(Luzon)

PH (Panatag), China,

Taiwan, Vietnam

UNCLOS, historical

Penghu islands West Taiwan China, Taiwan

Senkaku islands Northeast Taiwan China, Japan Historical accounts

RPRPRPRP----CHINA SECURITY CONCERNSCHINA SECURITY CONCERNSCHINA SECURITY CONCERNSCHINA SECURITY CONCERNS

Date 13Footer

What is the future of China-Global South relations?

PROSPECTS FOR DISCUSSION?

References:References:References:References:

Asian Development Bank. (2010). Key Indicators for Asia and the Pacific 2010. Retrieved from

http://www.adb.org/publications/key-indicators-asia-and-pacific-2010

Baviera, A. S. (2000). Comprehensive Engagement: strategic issues in Philippines-China relations. Quezon City: Philippine-China Development Resource Center.

Carinio, T. (1998). China-ASEAN relations: regional security and cooperation. Quezon City: Philippine-China Development

Resource Center.

Esplanada, J. (2011, February 20). “DFA: Ordeal of Filipinos in China death row a wake-up call. Retrieved from

http://globalnation.inquirer.net/news/breakingnews/view/20110220-321382/DFA-Ordeal-of-Filipinos-in-China-death-row-a-http://globalnation.inquirer.net/news/breakingnews/view/20110220-321382/DFA-Ordeal-of-Filipinos-in-China-death-row-a-

wake-up-call

International Monetary Fund. (2013, April). “World Economic Outlook.” Retrieved from

http://www.imf.org/external/pubs/ft/weo/2013/01/index.htm

Migrante. (2012, February 17). “Number of undocumented OFWs in China swells. Retrieved from

http://migranteme.blogspot.com/2012/02/number-of-undocumented-ofws-in-china.html

Puri, H. (2010, October 8). “Rise of the Global South and Its Impact on South-South Cooperation. Retrieved from

http://wbi.worldbank.org/wbi/devoutreach/article/525/rise-global-south-and-its-impact-south-south-cooperation

Department of Foreign Affairs website: http://www.dfa.gov.ph/index.php/articles/2013-04-03-07-46-09

National Statistics Office website: http://www.census.gov.ph

Philippine Consulate General Shanghai website: http://www.philcongenshanghai.org

Philippine Embassy in China website: http://www.philembassychina.org

China and the Global South

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