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Chapter 2 Geographic Economic Factors for Taiwan to Join TPP
The U.S. strategy of “Pivot to Asia” is the part that consistent with the Asia Pacific strategy, which is aiming at stabilizing the hegemony and the state interest. In this chapter, this thesis discuss the U.S.’s strategy of
“Pivot to Asia” toward the rising China.
2-1 The U.S. Adjusted the Global Strategy
Considering the issue of proposing TPP, the Chinese scholar Zao and Zuo thik that TPP is a comparatively fair Marshall Plan.28 On the other hand, the military alliance and collative sanction toward China with the group of countries, including the U.S., Japan, South Korea, Indonesia, the Philippines, Australia and Vietnam as Zao and Zuo mentioned could be viewed as the “Mino NATO in Asia” with more loose structure.29 For the Chinese scholar, the U.S. containment against China presents in the way of economic activity, regulation settings on economic transaction as well as the competition between the values. In the following paragraph, this trhesis will discuss the process of TPP and the application of the U.S.’s “Pivot to Asia” strategy.
2-1-1 U.S. Adjusted the Global Strategy
The Asia Pacific area covers 60% of the industrial products, 72% of the agricultural product, and 39% of the service transaction in the U.S.. On the other hand, for a long time, the U.S. has left the economic cooperation mechanism of the East Asia, which is not consisttent with the U.S.’s economic plan toward the East Asia.
28 Zhao Chang Feng and Zuo Xiang Yun, <TPP: China and the U.S. Competition – From China's Perspective>, scid.stanford.edu /.../ TPP, Date: April 2, 2015. (趙長峰、左祥雲，〈TPP：中美之較量——中國的視角〉，scid.stanford.edu/.../TPP，檢索日期:2015 年 4 月 2 日。)
29 Chinese scholars describe US containment strategy: Under the circumstance that global interdependence of Sino-US becomes deeper, Sino-US confrontation and competition focus primarily on "Soft competition and soft confrontation" and "Hard
competition and hard fight" secondly, which differ from the US-Soviet competition and confrontation of the Cold War. "Hard completion and hard comfrontation" present on strengthening its military existence around China, which adopts the strategic balance and suppress of the territorial dispute and future concerns of policies between China and its neighboring countries. For instance, when the United States strengthened the relations and cooperation with traditional allies such as Japan, South Korea, and the Philippines, at the same time it attracted India andVietnam, as well as the arrangmentment of military in Australia. Zhao Chang Feng and Zuo Xiang Yun <TPP: China and the US of the contest - China's perspective>, scid.stanford.edu /.../ TPP, retrieve Date: April 2, 2015
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Under this circumstance, Trans Pacific Partnership (TPP) becomes a important way for the U.S. to open the Asia Pacific market, which becomes a key part in the U.S’s economic strategy toward the AsiaPacific area.30 From the process of agenda setting to the participation of the member state, it’s all based on the U.S. state interest.
Construct the U.S. Oriented Asia Pacific New Order
TPP is the product generated under the member states of APEC and led by the U.S.. Among the main memebers and newly join members, which are mainly capitalism countries and only Vietnam is the socialism country which forms the crowding out effect. On the other hand, the TPP containment against China and the China led “ASEAN +3” (China, Japan and Soth Korea) make the Asia Pacific into the battlefield for economic transaction.31
Most of the experts think that the main intention of TPP is for the U.S. to take over the control right of the Asia Pacific region.32 In the past decades, the East Asia area has formed the free trade area, “ASEAN + 1”, which means the ASEAN country plus China. Since 2008, the economic depression occurred in Europe and the U.S., however China still remains the high economic growth and becomes the main market of the ASEAN market, which is getting the controls the economic situation of East Asia region.33 In order to change this situation, the U.S. promotes the framework of TPP hoping to expand the organization to recruit new members to replace the model of “ASEAN + N”.34
As a result, through TPP, the U.S. tried to turn over the disadvantage of the isolation on East Asia economic cooperation, such as “ASEAN + 1”, “ASEAN + 3” and “ASEAN + 6”, which become the target that TPP tried to compete and isolate by the U.S.35 On the design of TPP, the U.S. strengthened the control in Asia-Pacific region through the economic foundation and systematical power.36
30Ashley J. Tellis. Balancing without Containment: A U.S. Strategy for Confronting China’s Rise[J]. The WashingtonQuarterly, Vol.36, No.4, 2013.
31Xie Ming Rui, <Taiwan and TPP>, “National Policy Research Foundation”, March 1st, 2012, www.npf.org.tw / post / 2/10427.
Retrieve Date: March 6, 2015. (謝明瑞，〈台灣與 TPP〉，《財團法人國家政策研究基金會》，2012 年 3 月 1 日，
www.npf.org.tw/post/2/10427。 檢索日期:2015 年 3 月 6 日。)
32Zheng Zhu Yuan <U.S. Efforts to Promote TPP's Economic and Strategic Attempt ', "Strait Comment", pp. 252, December 2011, http: //www.haixiainfo.com.tw/252-8328.html, date: 2014 December 8th. (鄭竹園，〈美國全力推動 TPP 的經濟企圖與戰 略部署〉，《海峽評論》，第 252 期，2011 年 12 月，http://www.haixiainfo.com.tw/252-8328.html ，檢索日期:2014 年 12 月 8 日。)
33Zheng Zhu Yuan <U.S. Efforts to Promote TPP's Economic and Strategic Attempt ', "Strait Comment", pp. 252, December 2011, http: //www.haixiainfo.com.tw/252-8328.html, date: 2014 December 8th. (鄭竹園，〈美國全力推動 TPP 的經濟企圖與戰 略部署〉，《海峽評論》，第 252 期，2011 年 12 月，http://www.haixiainfo.com.tw/252-8328.html ，檢索日期:2014 年 12 月 8 日。)
34 First, in the past five years due to the rise of China, the market continues to expand, and ASEAN countries are competing to seize the Chinese market. The amount of Chinese imports from the ASEAN countries was $ 47.3 billion in 2003, to $ 100 billion in 2008, and it even reached up to 154.5 billion last year. China is also the largest investor in the ASEAN countries. Secondly, even if member states have joined, China still tried hard on eliminating the existing old system, including the management on import and export controls, the administration of foreign investment, and the settlement on domestic interest groups, which are all questions that could not be solved out within short period of time. Zheng Zhu Yuan, <TPP US efforts to promote economic and strategic attempt ', "Strait Review", Vol. 252, December 2011, http: //www.haixiainfo.com.tw/252-8328.html, retrieval date : December 8, 2014
35Deng Hai Qing, <From the Political Perspective of the U.S. Hegemonic Strategy> "Journal Seek", in 2013 the first five. (鄧海清.
〈從政治視角淺析美國的 TPP 霸權戰略〉，《太平洋學報》，2013 年第 5 期。)
36Doug Stokes and Richard G. Whitman. TransatlanticTriage？ European and UK“Grand Strategy”after the US Re-balance to Asia[J]. International Affairs, Vol.89, No.5, 2013.. Jinsoo Park. Regional Leadership Dynamics and theEvolution of East Asian Regionalism[J]. Pacific Focus,Vol.27, No.2, 2012
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Containment against China and the Continuity of the U.S. Hegemony
Under the mission of taking over the leadership in Asia Pacific region, in order to reach the leadership and the more stable economic foundation37, the U.S. strengthened the regulation on the new member recruitment and standards, including intellectual property rights, labor treatment, and environmental protection. New member can’t join TPP without the invitation. At first, China did not be invited; however after the changing attitude of the U.S. who invited China to join, but the condition is that China has to follow the regulation of market and could not manipulate the exchange rate.38 As for China, before the conclusion of the members in TPP, China has disagreed on the promotion of the U.S. on TPP because the U.S. has set too high standard to follow in certain categories. China suggests that the members in APEC are under different phrase, and therefore the standard should be different. Moreover, for instance “the U.S. asked the member states to lower the tariff under 5% on the environmental products. However, the average tariff in the U.S. is 1.4%, and that in China is 7%. Therefore, if China accepts the condition of 5%, China would yield much more benefit to the U.S.”. As we can see, when the U.S. promoted TPP, China played the role as the representative to provide different voice as the developing countries in Asia Pacific region.39
2-2
Establish TPP as part of Pivot to Asia StrategyThe U.S. strategy of “Pivot to Asia” is the strategy aiming at the rising China who replaced the Soviet Union to challenge the U.S., which became the bipolar structure in the international community. In the following paragraph, this thesis would review the U.S.’s containment strategy against the rising China, and examine the TPP strategy correspondingly.
2-2-1 The Open China and the Peaceful Rising
2-2-1-1Enter the Globe with Economic Soft Power
In the 80s, Deng Xiaoping the leader of China claimed to end the “War Situation” and started to conduct the “Reform and Open”. He further claimed that “Unless the world outbreaks World War and the invasion against China, otherwise China has to hold the economic development for more than 100 years. China should stick to the economic infrastructure, and conduct the agriculture, industry, national defense, and science to main the national sovereignty, the territory security, and national dignity, which
37Du Lan, <Strategic Analysis on the United States Pushing the Trans-Pacific Partnership > "International Studies", 2011. Vol 1.
(杜蘭，〈美國力推跨太平洋夥伴關係戰略論析〉《國際問題研究》，2011 年第 1 期。.
38Zheng Zhu Yuan. <US Promote TPP's Economic And Strategic Attempt ', "Strait comment", pp. 252, December 2011, http:
//www.haixiainfo.com.tw/252-8328.html, Date: 2014 December 8. (鄭竹園，〈美國全力推動TPP的經濟企圖與戰略部署〉，
《海峽評論》，第252期，2011年12月，http://www.haixiainfo.com.tw/252-8328.html ，檢索日期:2014年12月8日。) 39Xie Ming Rui, <Taiwan and TPP>, "National Policy Research Foundation", March 1st, 2012, www.npf.org.tw / post / 2/10427, Date: January 8, 2015. 謝明瑞，〈台灣與TPP〉，《財團法人國家政策研究基金會》，2012年3月1日，www.npf.org.tw/post/2/10427，
檢索日期:2015年1月8日。
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is the basic principle and the solution to solve the challenge of China.40”
Under the prediction of the world situation, in 1978 the Third Plenary Session of the Eleventh Central Committee, the Chinese authority mentioned the first open basic state policy in modernization of four categories, including industrial modernization, agricultural modernization, national defense modernization, and science modernization. The Chinese authority also conducted the comprehensive reform in the economic development, and tried to move the planned economic system into the market economic system.
In 1979, the Chinese authority decided to expand the limitation on export, giving Guangdong and Fujian province special right on conducting foreign economic activity. One year after, the Chinese authority announced Shenzhen, Zhuhai, Shantou and Xiamen as the foreign special economic zone.41 In 1984, the authority further opened 14 coastal cities along Shanghai, and made Bohai Rim area in Yangtze River, Pearl River, and delta area near Xiamen, Zhangzhou and Quanzhou as the coastal economic open zone.42
These series of reform make the economic development rise up, and influence the international community. For instance, in order to provide the needs of the 1.3 billion population domestically on energy and food, China bought the energy and commodities in a great amount, which makes the price in the international community becomes much higher. Therefore, China has the ability to expand its influence in the regional and international areas, including East Asia, Africa, Middle East, Middle Asia and even Latin America through the great amount of buying and investment on energy and
commodities.
40"Selection of Deng Xiaoping," Volume 1, Beijing: People's Publication, October 1993; Chu Shulong, "China's National Strength, National Interests and the Country Strategy," pp. 13.(《鄧小平文選》第 1 卷，北京：人民出版社，1993 年 10 月；楚樹龍，
《中國的國家利益國家力量和國家戰略》，頁 13。)
41This take an reference from the experience of Taiwan's economic development, the processing and assembly, joint ventures, which are the main form of foreign trade, and also permit the presence of a small number of foreign-owned enterprises; and learn advanced science and technology and excellent management style.
42 Four opening pilots have got the results in a very short period of time; Shenzhen from a bay village developed into a prosperous city which is not lower than Hong Kong. The remaining three places have become highlights of the the Chinese economy in early 1980. Then the open 14 cities also received more than 10% on annual economic growth. In 1988, China set Hainan Island as a separate province, and opened to the outside world, which has become China's largest open area. At the same time, those opening places also come along with the development of coastal areas to inland areas, stimulating China's economic development.
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For the past 25 years from the open and reform, China has increased more than 9% economic growth rate. By the year of 2005, China has ranked the six economic entity around the world followed by the U.S. and Germany and ranked 3rd in the world. By the end of 2004, the European Union, the U.S.
and Japan have become the top three partners in Chinese transaction. The rising China makes the world impressive, and once President Bush of the U.S. has said that “the development of China is
impressive!43” and he officially invited Hu Jintao, the leader of China at that moment to attend the G8 meeting in July in British.44
2-2-1-2 Become the Great Power through the Peaceful Rising
As the economic power rises, the reflection and the foreign policy has changed as well, which makes the world impressive. For instance, Jiang Zemin claimed that “We are at the turning power of the old and new century and also a world full of contrary and severe competition. The international competition is the competition between the comprehensive national strength, and the key is the competition in science technique. If we failed in science technique, we will be surpassed by others.45” The Chinese regime has recognized that international competition is not only military hard power, but also the science of soft power to consider the competition among the world, which shows that China must have the thinking with national counterparts. Construction of China and comprehensive national strength has come to the time that it should is open to the world, and even get recognized in the world to further generates impact on the world, which is not just based on the national glory for pursuing self-requirment of China, but also the expectation from the countries around the world under the lead of the U.S.. This time China builds a multi-polar world system as a strategic goal to promote diplomacy between big powers, multilateral diplomacy and neighborly diplomacy for the strategic means, and keeps the principle not aginast the United States to further establish "partnership" with great powers
43"Xinhua", <Bush: China's Development Is Amazing!> (《新華網》，〈布什: 中國的發展令人驚嘆!〉, http://www.xinhuanet.com/world/2005-06/01/)
content-3029501.htm。
44 See "Central News Agency", <China Actively Consider Participating in Meetings of the Industrial Countries> (參見《中央 社》，〈中國積極考慮參加八大工業國家集團會議〉，http://news.pchome.com.tw/)
crossstraits/cna/20050607/index-20050607215007180387.html。
45Peng Ji Chao, "National Strategy: China Space Engineering Documentary" Shanghai: Shanghai Literature and Art Publication, December 2005, pp. 17. (彭繼超，《國家戰略：中國載人航天工程紀實》，上海：上海文藝出版社，2005 年 12 月，頁 17。)
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and alliances46 and participate in multilateral international organizations and actively operating47, and join the international security norms.48 Such strategic application is mainly since “China threat theory”
rised in the mid-1990s flourish in, moderate weak and kindness into the international organization may relieve concerns among other countries.
By 2002, after Hu Jintao became the leader, he tried his best on making sure the peace and
development of China; however, the factors influencing peace and development increase. For instance owing to the change in the world military development, the military balance becomes asymmetry, especially between the developing and developed countries. Therefore, President Hu suggests that China should equip itself and gain peace through the reputation and power of itself. Thus after he took the presidency49, he raised “Peaceful Rise” as the basic principle for China to develop its national goals.
In diplomatic issue, except the continuity of the “Neighborhood Policy” Beijing authority engaged and solved the border issues with the neighboring countries as well, including the signing the border agreement with Russia, and negotiation with India on the border concern. On the other hand, in transaction, Beijing authority signed “Framework Agreement on Comprehensive Economic
Cooperation between ASEAN and China” and “The Solution Mechanism for Disputes between China and ASEAN”. Besides, ASEAN and China (10 +1) strengthened the political and economic alliance through signing the international agreement.50 Except the agreement of Framework Agreement on Comprehensive Economic Cooperation between ASEAN and China in 2002, both sides decides to
46During Jiang Zemin presidency, China has established partnerships with several counrtries, including Russia, France, the United States, Canada, European Union, ASEAN, the United Kingdom and Japan.
47With particular emphasis on multilateral international organizations in Asia-Pacific region, such as: Asean Regional Forum (ARF), the Asia-Pacific Economic Cooperation (APEC) and the Shanghai Cooperation Organization and so on.
48 Such as Comprehensive Test Ban Treaty and Anti-Ballistic Missile Treaty
49 In November 2002, the Sixteenth National People's Congress, Chinese Communist Party confirmed that two decades before twenty-first century is an important period of strategic opportunities for China's development. During these twenty years, Chinese government has achieved the strategic goals of the maintenance of peace and stability in the external environment, in respect of Chinese economic development, and the establishment of a well-off society.
50This refers to ASEAN and China (ASEAN plus one) to sign a free trade agreement consistent, which is different from the
"ASEAN plus one" or "ASEAN plus three" dialogue and cooperation mechanism. The latter refers to the "ASEAN plus one, "
which focused on ASEAN as the core (from the ten ASEAN countries and Japan, China, South Korea or other countries held individual leaders meetings during the meeting of ASEAN Plus Three) or the "ASEAN plus three" (ten ASEAN countries
which focused on ASEAN as the core (from the ten ASEAN countries and Japan, China, South Korea or other countries held individual leaders meetings during the meeting of ASEAN Plus Three) or the "ASEAN plus three" (ten ASEAN countries