Despite the hype surrounding it, the gathering of the country’s ruling elite in Beijing is likely to prize measured change over dramatic reform.

If there was a clearer idea of what makes China’s new elite leadership tick, then the Plenum of the Central Committee of the Communist Party that is about to be held in Beijing would not be such a big deal. But in a polity which privileges concealment over overt statement, it is viewed widely as the one chance for outsiders to see more clearly what the leadership aims to achieve. Expectations were raised by the October statement by one of the most staid members of the current Standing Committee of the Politburo, Yu Zhengsheng, that the plenum would presage a new era of reform.

In Chinese politics reform is a word that has a wholesome, positive air about it. But the question is where and when reform will happen and who will gain from it. The plenum is not like a party convention in the Western sense. It is not an eye-grabbing, media-dominating event that produces surprises. Comparing this year’s installment with the great Third Plenum of 1978 that heralded the repudiation of late Maoism and the embracing of the market, the non-state sector and foreign capital – all anathema before then – is misleading. The significance of the 1978 meeting was only obvious in hindsight. It took years for the scale of the radical transformation of the whole strategic direction of the Communist Party to be appreciated. That 2013 will prove a similar historic moment is unlikely, perhaps even impossible.

What is much more likely is that the highly tactical leadership now in charge will reaffirm its commitment to incremental reform. It will make some statements about the radical urbanization that China is about to undergo and say something about social welfare reform. China’s leaders will do what they have always done in plenums over the last three decades, namely set the broad parameters of politically permissible activity that provinces, ministries and other stakeholders will then need to implement.

This plenum will also have to produce something about the need to achieve greater egality and balance in the economy. It needs to answer some of the questions about how Premier Li Keqiang, in particular, intends to meet the goal of 'fast, sustainable growth' when a falling overall GDP figure looks likely. It needs to communicate to as broad a constituency as possible the arch-narrative of a world where the raw statement of growth on its own is no longer the be all and end all of government policy. It needs to say something about how the party is going to fulfill the increasingly complex aspirations of the Chinese people, aspirations that exceed purely having a materially good level of life and concern broader questions of well-being that vex the politics of all developed economies.

Observers will want to see some signs too of addressing the most sensitive issues. Yu Zhengsheng talked of economic reform. Reforming the economy is now a wholly uncontroversial mantra in China. However, it impacts on one enormously important issue that reaches beyond economics: whether wealth, prosperity and development benefit the few or are accessible to the many – in other words, good, old-fashioned questions of economic and social justice. At the heart of this lies the question of how state-owned enterprises have become vehicles of profit not just for the party state, but also for tightly knit networks of vested interests. Reforms that lap at the doors of these entities also creep into the space of powerful political players, who will resist any attempt to cut down their wealth, and who have the power to resist.

China’s new leadership is proving more confident than was expected and displays a high sense of historic mission. President Xi Jinping speaks increasingly like a politician who believes it is almost his historic destiny to sit at the centre of the leadership of a renascent 'rich, strong country'. The ultimate question for the plenum is not what outside observers make of it but what the vastly complex mixture of groups in China does. For them, a sign that the leadership is willing to take on some of the entrenched vested interests that penetrate the operations of some state-owned sectors to the core is critical.

This is likely to be couched in the language of more support for the market, which is the key channel in any attack on vested interests – through widening access to wealth and economic benefits, and support for the non-state sector and entrepreneurs. It is hard to see how deeper reform can occur without these two crucial elements. And it is through these that the attitude of China’s leadership to political and legal reforms – far more complex issues that, almost certainly, will not be addressed at the plenum but will lurk in the background − will become clearer. The leadership thinks it is too early to tackle these issues directly, but this plenum will still be part of the process for it to come up with ideas for how to transform not just China’s economy, but its polity too.

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China’s leaders set out their intention to push forward with policy reform following the Third Plenum. The full decision released on 15 November makes clear the aim to loosen constraints on the market, and suggests a dilution of state-owned enterprise influence. A new national security committee could also lead to greater policy integration between domestic security and international affairs.

The Third Plenum of the Chinese Communist Party’s 18th Central Committee took place in Beijing from 9−12 November. Initial reactions based on the communiqué released on the last day of the meeting were mixed. However, on 15 November the authorities published the detailed decision approved by the plenum, and an explanation given to the plenum by Party General Secretary Xi Jinping – in which he acknowledged major problems facing China.

These documents make the implications of the plenum much clearer. In sum, it offers a clear political signal that as China’s fifth-generation Party leadership enters its second year, it is intent on taking forward a ‘comprehensive deepening of reform’ across a wide range of issues. As an indication of the importance of this, a new high-level ‘leading small group’ will be established to coordinate and oversee this process. The decision spells out various new measures, and reiterates many which are already part of the government’s agenda.

More market in the economy

The most important material is on the economy, where the decision makes clear that the leadership envisages a ‘decisive’ role for market forces, and the establishment of ‘fair and equal’ competition in the economy. This will provide a guiding principle for policy-making over the coming years.

One of the ways of achieving this is to reorganize the functions of government. Here the decision reiterates the themes which the government has been working on since Premier Li Keqiang took over in March this year, namely reducing or removing the need for government approvals to businesses, freeing up the investment environment, and allowing businesses and the market to take the lead unless there is a strong reason for government intervention. Better governance is a wider theme of the decision, covering the judicial system and reforms to the party’s disciplinary organs which would clarify leadership and accountability in anti-corruption investigations.

SOE reform

A possible impediment to market reforms is the power of China’s state-owned enterprises (SOEs), and the original communiqué gave the impression that nothing much would be done about SOEs. However, the ability of these so-called ‘vested interests’ to stymie market reforms has been weakened by the targeting of a number of senior SOE-related cadres in the party’s latest anti-corruption campaign, which began at the end of 2012.

Further, the detailed decision suggests further reforms are in the offing. Although the relevant section of the document begins by restating the leading role for state ownership, a series of subsequent policy aims could serve to dilute it, such as ensuring equality in property rights protection and competition; developing mixed (state and non-state) ownership through cross-shareholding and bringing private capital into state-led projects; shifting from managing SOEs to managing state investments in enterprises; better supervision of SOEs which operate in natural monopolies; and removing administrative monopolies.

International affairs

The decision talks about further opening of China’s economy, but the vast majority of the issues covered in the decision are domestic in nature, and announcements such as a further relaxation of birth control policies have attracted most attention. Even the points on military and defense issues relate more to internal management than external capacity.

There was, however, one announcement which could have important implications for China’s foreign policy, which will be watched carefully outside China, the establishment of a ‘national security committee’. Xi said that this was being set up in response to external pressures to protect national sovereignty, security and development. He also cited internal pressures to maintain political security and social stability. It is too early to judge what the exact remit of this body will be, but it could lead to greater policy coordination and integration between domestic security issues and international affairs, at a time when China is playing a more important role across the international spectrum.

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China’s rise was highlighted again recently by reports that World Bank calculations of purchasing power parity could put the Chinese economy ahead of the US this year. China’s global influence has clearly spread substantially over recent decades, though the extent and impact of the country’s rise remain debated, and its economic size is not yet matched by influence in other areas.

Within China itself, the idea that the country has become a major power has become stronger. Put alongside Chinese analysis of global flux, this has resulted in changes in China’s approaches to foreign and security policy.

The impact of these changes remain uncertain. As set out in a new report on China’s Global Personality , there are several debates in China about the country’s approach to international affairs: around the implications of its rise for its continued identity as a developing country, whether it should become more ‘revisionist’ towards international affairs, and how assertive Chinese foreign and security policy should be.

So far, China’s post-2012 leadership has taken forward a number of areas of policy change. Institutionally, the creation of a new National Security Commission, chaired by Communist Party General Secretary Xi Jinping, is likely to strengthen policy coordination and integration across a broad range of domestic and external issues.

The Chinese leadership has also promoted a much-discussed ‘new type of major power relationship’ in its approach to the US. The aim here is to avoid conflict between the US and a rising China, and to work towards a relationship characterized by equality, including in Asia – this therefore does not imply a desire to be a regional hegemon. The outcome, however, remains to be seen, and US responses so far have been cautious.

In dealing with disputes in East Asia, Chinese policy has become more assertive since around 2010, though the leadership has also set out its desire to deepen relations with its neighbours, and Beijing has been among the first to reach out to new Indian Prime Minister Modi. However, there are clear limits to this: relations with Japan in particular are likely to remain poor, and those with Vietnam have deteriorated substantially over recent weeks.

These issues are not simply bilateral, but should be seen as part of a wider renegotiation of regional order, involving not just China, but Japan, the US, and others. The last few years have seen changes in US approaches to the ongoing evolution of the international order and in particular to East Asia – the so-called ‘rebalance’ strategy, including ongoing – but slowing – negotiations for a trade and investment Trans-Pacific Partnership. And Japan’s security policy has been changing under Prime Minister Abe.

The idea of renegotiation can also be seen in the debates around institutions of global economic governance, such as the International Monetary Fund. Our research finds that China’s engagement with the existing international order remains strong, but there is also a growing element of gradual revisionism from China (and maybe others) within that order. China’s approach is consistent with the open and rules-based way that international institutions have developed, but it looks for its voice to be considered more in the setting of those rules.

The view from Europe

The implications of this analysis are that the questions policy-makers need to address should not be framed simply in terms of dealing with the rise of China and the changes in Chinese approaches this brings. Instead, the framework should be one which takes account of global flux and policy changes by other actors.

This means that there is space for European governments, for example, to engage in shaping the future global and regional order. In doing so, there could be particular challenges if strategic difficulties in the US-China relationship continue − the perceptions of opportunities and threats in Asia as seen from Europe may increasingly diverge from Washington’s. As China’s rise continues, it will not just affect relationships with China – Europe’s relationships with the US, and their stances on questions of regional order and governance in Asia, will also be called into question.

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Reaping the benefits of more than a decade of stability and fast economic growth, Angola increasingly wields global influence. Angola seeks to diversify its bilateral partnerships and improve existing ones, and is well-placed to exert its influence in multilateral fora. 

At this roundtable event, Angola’s Secretary of State for Cooperation, Hon Dr Maria Angela Bragança, will discuss Angola’s international priorities and how Angola is helping to shape key issues of global importance in a multipolar world.

President Barack Obama’s recent visit to Asia has reanimated the debate over what America’s ‘pivot’ to Asia really means. The level of uncertainty over its regional engagement has been heightened by what many in the region, and beyond, consider an inadequate response to the events taking place in Ukraine. Rather than being reassured by the ‘rebalancing’, many Asian allies suspect the United States is becoming a less reliable ally. At the same time, concern is also growing about China’s increasing assertiveness, as demonstrated by recent events with Vietnam.

America’s Asian partners are increasingly exploring new ways to ensure their security, and they will, in time, find different ways to engage with it in the region. Unless the United States is more transparent about its intentions, and what others can expect from it, it is possible that it will be pushed towards a role not necessarily in line with its interests.

President Obama’s announcement of the ‘pivot’ to Asia in November 2011 provoked much debate over what it would mean in practice. It continues to be treated with much scepticism in the region and has raised tensions, with many fearing a military response from China (a fear that, in the eyes of many in the region, has already come to pass).

Allies have also questioned whether American rhetoric is being matched by action. US assets in the region remain strong (additional troops are being rotated in and new partnerships are being formed with the Philippines and others), but America’s will to use them appears less so.

Despite reassurances from Obama during his trip that the disputed Senkaku/Diaoyu Islands ‘fall within the scope of Article 5 of the US–Japan Treaty of Mutual Cooperation and Security’ and that the United States opposes any unilateral attempts to change this, Japan was not reassured. A more ambiguous statement made last year by Secretary of State John Kerry, that the United States ‘does not take a position on the ultimate sovereignty of the islands’, has left many Japanese policy-makers wondering whether the US would ultimately back their country up in a conflict. Again, they look at America’s responses to events in Ukraine, Libya and Syria and wonder what it would be prepared to commit to if China were to try to seize control of disputed territory.

This uncertainty is leading many of America’s principal allies to consider additional ways to ensure their security. There are three main paths available to them: building domestic capabilities, forming ad hoc groupings, and reinforcing established regional groups.

The allies are first looking internally: across the board, defence spending has increased; for the first time, in 2012, Asia surpassed European spending, reaching a total of $310 billion. Countries such as India are expanding their naval capabilities to enhance their power projection and Japan is moving forward a reinterpretation of its constitution to allow a more ‘normalized’ role for its military, one in which it could come to the assistance of allies.

Asia-Pacific states are also looking to engage one another in informal bilateral or plurilateral groupings. Over the past decade, a proliferation of new groups has formed for such activities as strategic dialogue, joint training or operations. Building on their similar values and concerns, Japan, Australia and India, in particular, have been prolific in creating various combinations of partnerships among themselves and the United States. There are also some more unexpected (and potentially valuable) groupings, including that established between China, Japan and South Korea.

Where they are based on similar interests, these informal groupings can be a source of moral and political support, and even perhaps in time more operational support in the security arena. They can also provide a starting point for engaging a wider audience through more traditional regional groups, such as ASEAN and the East Asia Summit – the third option for allies to enhance their security.

These more established groups, while widely dismissed in the West as mere ‘talking shops’, perform a well-regarded function in the region. By supporting the broader web of networks on which states can come to depend, they provide opportunities for debating and managing (or diffusing) regional tensions.

America remains the most militarily powerful nation in the world. Its influence and common interests with its Asian allies will continue to ensure that it has strong sway in the region. Realistically, it will for the foreseeable future remain a necessary partner for its traditional allies, particularly those concerned by China’s growing assertiveness. And it remains in America’s interests to stay engaged. However, as ambiguity about its willingness to act increases, these allies will continue to reach for alternative solutions for managing their security.

While this aligns with the US desire to share more of the burdens of global citizenship, if it wants to remain a key Asia-Pacific power, America still needs its allies to need it. A little more clarity and transparency on its part, even if only stated privately, could start to rebuild trust and confidence, which would serve both America and its allies well. 

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The US derives significant geopolitical power by issuing the dominant reserve currency. Not surprisingly, China would like to wield similar power and is successfully promoting the use of the renminbi to settle trade. The speaker will argue that the RMB’s chances of becoming a major reserve currency are poor, as financial liberalization, although a necessary condition, is insufficient. China must also earn the unquestioning trust of global money managers. History suggests this takes decades even for a rules-bound democracy, let alone an opaque, unpredictable single-party state.

Nigeria’s prospects, with its rise to international prominence as Africa’s largest economy, are tempered by the many development and security challenges the country faces. While essential reforms in the power and agriculture sectors are underway, such efforts are balanced against the Boko Haram insurgency in the northeast, significant concerns around youth unemployment, and an increasingly contentious political environment in the run-up to the February 2015 elections. 

Dr Doyin Okupe, Senior Special Assistant to President Goodluck Jonathan, will discuss what steps the presidency is taking to address the country’s most urgent challenges, and how the political environment can be managed to overcome tensions that may impede progress.

The speaker will argue that President Xi Jinping's accretion of substantial political power has rendered him the most influential Chinese leader in decades. Still, there is much debate over how President Xi intends to wield that power, and to what end. The speaker will seek to deconstruct Xi's understanding of the nature of power, speculating on his likely game plan for his tenure and exploring the implications for China, the region, and the world in the first quarter of this century.

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The speaker will argue that Chinese foreign policy should be viewed as an extension of domestic policy to a degree not seen in other countries. China's foreign policy aims to support domestic growth and employment, must be aligned with nationalist and narratives of ‘rejuvenation’ and the ‘China Dream’, and must help dilute hostile foreign values. The ‘One Belt, One Road’ project, also known as the ‘New Silk Road’, exemplifies this. The speaker will illustrate its origins and development, discuss how it promotes the Communist Party’s domestic agenda, as well as look at (secondary) geostrategic aims and difficulties. Finally, he will look at the lessons for Europe, and why and how this Chinese initiative should be welcomed.

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Much of the focus on China’s 13th Five Year Plan – its centralized and integrated economic guidelines for the next five years – has been on the estimated growth rate of 6.5 per cent, its lowest in recent history. This reflects the so-called ‘new normal’ of China’s development, as President Xi Jinping’s administration describes its aspiration for higher-quality growth in the context of a slowing economy.

But this growth target is an estimate, rather than a pledge. The emphasis on ‘ecological civilization’ – another of Xi’s signature buzzwords, referring to a broad set of approaches environmental protection – is striking. Further, by putting innovation and ‘green development’ at the heart of its ambition to create a ‘moderately prosperous society’, China has sent an important signal: that the country’s strategy for future prosperity in many respects converges with a shift away from its environmentally costly development model.

Environmental goals

The plan endorses a ‘vertical management system’ that will help overcome structural impediments to the local enforcement of environmental laws,  and of its 13 binding targets, 10 relate to the environment and natural resources. In the plan, China commits to an 18 per cent reduction in carbon emissions per unit of GDP from 2015 levels by 2020 and a 15 per cent reduction in energy consumed per unit of GDP from 2015 levels by 2020. It also re-commits to generate 15 per cent of primary energy from non-fossil sources and introduces an important new target of keeping energy consumption below 5 billion tonnes of standard coal equivalent by 2020. Underlining how air quality has become a major driver of energy and climate policymaking, it also promises a 25 per cent reduction in harmful PM2.5 particulates.

In short, the plan suggests that decision makers in China not only take seriously its UN pledge to see a peak in the country’s emissions before 2030, but also that they hope the country will be the leading supplier of low-carbon technologies. Among its non-binding targets are some significant innovation-related measures: to raise gross expenditure on research and development as a percentage of GDP to 2.5 per cent, from 2.1 per cent today; and over the same period to almost double the number of patents owned per 10,000 people, from 6.3 to 12.

Innovation

The document makes clear the principal driver of China’s economy should be innovation, rather than investment. Innovation, says the plan, ‘must be placed at the heart of overall national development’ and ‘integrated into all the works of the Party and the country’. There is emphasis on strategic areas at the ‘frontiers’ of science, ‘mass entrepreneurship’ through new models such as crowd-funding, and digital economy projects – what the leadership likes to call ‘Internet+’ – including around the Internet of Things, quantum computing and big data.  

Under China’s 12th Five Year Plan (from 2011 to 2015), the state focused on a defined number of specific technology goals in its ‘strategic emerging industries’. Renewable energies and electric vehicles, for example, were afforded specific preferential policies. By contrast, the new plan has a greater focus on ‘clean coal’ and hydropower in the energy sector; and while it doesn’t abandon solar and wind, it also suggests greater diversity in its overall approach, with more of an emphasis on reform of the energy sector, developing smart power grids and investing in energy storage technologies such as batteries and fuel cells.

Moreover, innovation in the plan is not framed as simply being about hardware – the commercialization of science and technology. Rather, the text reiterates that innovation should come in many different varieties: ‘theoretical, institutional, scientific and technological, and cultural innovation’. This raises the intriguing and hopeful possibility that the country’s planners recognize some of the challenges and opportunities the public, particularly in the form of newly vocal, engaged and connected urban constituencies, pose in the governance of innovation.

Policymakers – taking ‘social innovation’ seriously – could begin look at the public as technology users, incubators of demand-driven successes, and innovators in their own right. In a context of low public trust around food and agriculture in China, for example, organic cooperatives and ecological entrepreneurs have pioneered supply-chain innovations, typically facilitated by digital networks, to connect farmers with urban consumers looking for safer food. Lower-tech approaches to energy too – such as inexpensive solar water heaters, which garner a mention in the latest plan – have been driven by rural users and supported by local initiatives, rather than central government coordination or subsidies.

These approaches to innovation would present a quite different model than previous central government plans have encouraged. Whether in the plan’s implementation they are harnessed and given support might be critical to meeting China’s environmental goals, as well as its drive to create a more innovative economy and society.

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The field of Indian foreign policy is rich and wide ranging, offering new empirical material across a broad array of topics and relationships. This article reviews three recent books on the subject, with an eye towards evaluating change amid continuity in the pursuit of Indian foreign policy. This scholarship calls out for a new paradigm to understand India’s changing position and actions at global, regional and domestic levels. I argue that Indian foreign policy can and should be seen through the prism of an open border, interdependence framework, wherein both the domestic and global levels are analysed in a linked manner. While the literature surveyed here does not yet offer a new paradigm, some common findings suggest the need for new approaches. We also need to find and use new sources of data and seek ways to measure institutional effects in foreign policy. The task of measurement and theoretical modelling is made more challenging by the need to theorize the linkages across levels and to measure foreign policy variables in different countries simultaneously.