Theory to expand territory in the US-China polarization era
The following is the first in a six-part series of articles contributed by Cho Yongjoon, executive director, division of public relations and project of the Korea Agency for Digital Opportunities and Promotion (KADO) -- Ed.
Preface
The first strategic economic dialog was held in Beijing, China from December 12- 16 in 2006. It was the biggest economic strategic meeting with influential people in the economic sector from the United States and China in attendance. The topic of the meeting was strategic economic issues of both countries and the world.
US Treasury Secretary Henry Paulson, Commerce Secretary Carlos Gutierrez, FRB Chairman Ben Bernanke and their Chinese counterparts attended the meeting. The topic of the meeting covered trade, financing, exchange rate, technology, energy and environment.
The meeting heralded the fact that the world is changing from a single US system to a US-China polarization system. In particular, the US proposed the strategic meeting first. US President George Bush and Chinese President Hu Jintao directly negotiated on the matter. From this, we can read the US' uneasiness about China's rapid progress.
It is very difficult to explain the new wave from China in short sentences as the wave is too wide and strong. The China- Africa cooperation forum held in Beijing early November this year was also great in scale, frightening global leaders and entrepreneurs.
In particular, the aggressive stance of China, which has been claiming historical sovereignty over Goguryeo, the ancient Korean kingdom that between 37 BC and AD 668 ruled much of Manchuria, north of the Korean Peninsula and is now part of Chinese territory, is causing serious concern over the future course of Korea. In addition, concerns about resource nationalism of resource-rich countries are also blanketing Korea.
Russia armed with oil and natural gas is threatening the European Union (EU).
Meanwhile, China and Japan are standing in the way of Korea by preoccupying resources of Africa and Asia. Shocked by the integration of Europe and rapid advance of China, India and Russia, leaders of the 12 countries said at the summit meeting of the second CSN on December 9: "Let's unify as Europe." They hoped to create an energy consultative body and make one step forward for a community. What is the best way for Korea to survive a global paradigm-changing era
At a time when China seems to convert from nationalism to economic expansionism, does Korea have a strategy to keep its competitiveness against China and persistently maintain its superiority in the future Now, various economic indicators show a red light in Korea. Recently, the US investment bank Morgan Stanley judged: "The momentum of the Korean economy is fading away." It means that the engine leading the Korean economy is cooling down.
It is very concerned about the fact that such a judgment came at a time when Korea has achieved US$300 billion in exports for the first time in history. Korea's state competitiveness and growth potential have been on a downward trend for several years. Is it possible for Korea to attain US$20,000 in per capita GDP in terms of actual value, not in a bubble of exchange rates
What shall the nation do to leap toward becoming a truly advanced country under the rapidly changing global trend and economic environment
The following are several strategies and visions to achieve the target.
To survive a paradigm-shifting era
Scene 1
The Khan El-Khalili traditional market in Cairo, Egypt is a famous tourist spot for foreigners. It is also a place of over 1,000- year history where traditional handicraft makers dwell.
However, Chinese handicraft goods rushed into the Egyptian market and Egyptian handicraft makers are worrying over their future because of the Chinesemade Pharaoh.
Scene 2
Now, it is no news that imitations of Korean products are rampant in China. These days, nonsensical matters often occur in the Chinese market where imitations of Korean goods made debut ahead of real Korean products.
For instance, LG Electronics introduced its Chocolate phone to the Chinese market in May 2006 for the first time, but imitations of the LG product carrying the same design made debut ahead of the real products.
Scene 3
In the middle of November 2006, some demonstrators calling for democracy intensively attacked stores, cars and houses possessed by overseas Chinese merchants in Nukualofa, the capital of Tonga in South Pacific.
In Tonga, about 4,000 overseas Chinese merchants who moved in the South Pacific country in the early 1990s grasped 70 percent of the total business in just 10 years, inviting criticism that they are trying to make the island country a Chinese colony.
Such anti-overseas Chinese movements are rapidly spreading to the Solomon Islands, Fiji and Vanuatu, heightening risk of a revolt against overseas Chinese merchants.
Scene 4
China, which is trying to register Mt. Baekdu with the list of the UNESCO's world nature legacies and dismantled the Baekdu Hotel built by a Korean, is now turning its eyes to Ieodo, an islet in the south of Cheju Island.
A Chinese student who once studied in Korea said in a Hong Kong-based magazine: "Chinese people call for the Korean government to dismantle all illegal structures built in Ieodo." He also said that he will open an Internet site to attract Chinese interest in Ieodo and spread such movement to Taiwan, Hong Kong and Macau.
Washington consensus against Beijing consensus
We are now living in the world centering on the politics and economic order of the United States. It is called the Washington consensus.
However, an axis of a new order is being created in the world. It is China, which frightened the world by organizing two giant events in late 2006. One is the China-Africa cooperation forum held in Beijing on November 4 to 5 and the other is the China-ASEAN summit held in Nanning in China on October 30.
At the China-ASEAN summit, all leaders of the 10 ASEAN countries, including Singapore and the Philippines, had separate summit meetings with Chinese Prime Minister Wen Jiabao.
It was a strange thing that all ASEAN leaders gathered in China, which is not an official ASEAN member country, ahead of the ASEAN summit meeting in Cebu, the Philippines, in December. It reminds me of the scene in the past feudal age when a Chinese king called in envoys of other countries to receive tribute.
A more surprising fact is that leaders of 48 out of the 53 African countries, which are far away from China, came to Beijing all together at the China-Africa cooperation forum on November 4 to 5.
They had summit meetings with top Chinese leaders over a total of 75 times. I imagine that such a fact would deal a great shock to US President George Bush, Russian President Vladimir Putin, and other world leaders.
Key reasons behind the Chinese strength to gather global leaders are sincerity and money.
Of course, China's state management strategy is superior to sincerity and money. However, China seems to have succeeded in making a Beijing consensus through its sincerity and holding of massive amounts of dollars.
Taking these matters into consideration, ASEAN and Africa seem to be included in the frame of Beijing consensus.
