By Yang Jiang
Utilizing first-hand interview info, Yang Jiang finds the most important developments of China's exchange and monetary politics after its WTO accession. specifically, she highlights the effect of competing family pursuits, executive enterprises and various rules on China's overseas fiscal coverage.
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This chapter will address those questions by looking into China’s policymaking for CAFTA. Before depicting the policymaking process, it is worth knowing 34 China’s Policymaking for Regional Economic Cooperation which Chinese national and domestic interests were at stake when CAFTA was contemplated. Foreign policy objectives It is widely acknowledged among Chinese ofﬁcials and scholars that the motivation of China in proposing an FTA to ASEAN was more political than economic. 4 In this sense, it is a typical case of ‘economic statecraft’5 —China used economic policy as an instrument to achieve foreign policy goals.
Many Chinese scholars and foreign economic policymakers admit that the main problem with East Asian integration has been the lack of trust between China and Japan, especially between their foreign policy decision-makers. 53 Neither of those two East Asian ﬁnancial institutions took off, naturally, because of US concern. When an East Asia Summit was proposed, China objected to the attendance of countries outside ASEAN+3, which was the preference of Japan. China also backed Malaysia to take a strong position, at least initially, to exclude the US and Australia from the East Asian Summit.
China accepted the demand, as China also hoped to protect its investors in its push for domestic companies to ‘go out’ (zou chuqu). Negotiations over a trilateral investment treaty were launched in 2007 and signed in May 2012. At the same time, in the trilateral FTA discussions, South Korea and Japan blamed each other for dragging their feet and expressed interest in a bilateral FTA with China ﬁrst, for fear of losing to each other in the Chinese market. Premier Wen Jiabao has also been pushing hard for its progress, in particular as he had worked towards reaching rapprochement with Japan.