China, U.S. Leadership, and Geopolitical Challenges in Asia
Updated December 22, 2014
China, U.S. Leadership, and Geopolitical Challenges in Asia
After 35 years of fast-paced economic growth, China is
Questions for Congress include: How important is it for the
now the world’s second-largest economy in nominal terms
United States to remain the preeminent power in the Asia-
and is estimated to be the largest in purchasing power parity
Pacific region, from both a regional and a strategic
(PPP) terms, with a modernizing military and enhanced
perspective? If important, how best should the United
strategic clout. China is the United States’ second largest
States maintain its leadership, particularly in a domestic
trading partner. For more than 120 countries, it is now a
U.S. climate of fiscal austerity? How can the United States
larger trading partner than the United States. China is also a
help ensure that a rising China’s efforts to shape the
major investor on several continents.
international system and the Asia-Pacific region do not
undermine U.S. interests or the interests of U.S. allies and
Bolstered by economic success, Xi Jinping, China’s
partners? To what degree should the United States
Communist Party General Secretary since 2012 and its
encourage China to help address certain regional and global
President since 2013, has adopted a more assertive
challenges for which the United States has hitherto
approach to issues China sees as related to its “core
shouldered primary responsibility? As China transitions to a
interests” in sovereignty, territorial integrity, and political
new economic growth model, how prepared is the United
control. Such issues include maritime territorial disputes;
States for the impact of potentially slower Chinese growth
Taiwan, the island democracy with which China has long
on the world economy? Is it possible to avoid debilitating
vowed to unify, by force if necessary; unrest in the ethnic
mistrust in the U.S.-China relationship while China remains
minority border regions of Xinjiang and Tibet; calls for
ruled by a Communist Party deeply intolerant of any
electoral democracy in the Hong Kong Special
perceived threats to its monopoly on power? Finally, what
Administrative Region; and domestic dissent. Under Xi,
place should human rights occupy in U.S. China policy?
China has also appeared to question more forcefully the
U.S. role in Asia, and increasingly to cast China in the role
Figure 1. The United States and China: Key Statistics
of the region’s leading power. Among recently launched
Chinese initiatives are an Asian Security Concept; a
multilateral development bank, the Asian Infrastructure
Investment Bank (AIIB); plans for an upgraded free trade
agreement (FTA) with the nations of Southeast Asia and for
a new Asia-Pacific FTA; and two projects, the Silk Road
Economic Belt and the 21st Century Maritime Silk Road,
accompanied by a Silk Road Fund, intended to boost
connectivity from Southeast Asia through China and
Central and South Asia to the Middle East and Europe.
The Obama Administration has said that it welcomes
China’s rise, albeit under certain conditions. On a trip to
Beijing in November 2014, President Barack Obama stated
that, “the United States welcomes the continuing rise of a
China that is peaceful, prosperous, and stable and that plays
Source: World Bank, International Energy Agency. Graphic by CRS
a responsible role in the world.” The Administration’s
Visual Information Specialist Amber Hope Wilhelm.
signature policy initiative in the Asia-Pacific region is a
strategic rebalancing or “pivot” to the region, designed in
China on the U.S. Role in Asia
part to “give comfort to countries uncertain about the
In May 2014, President Xi seemed to signal dissatisfaction
impact of China’s rise and provide important balance and
with the U.S. role in Asia when he unveiled a proposal for
leadership,” in the words of a former senior Obama
a new Asian Security Concept defined by the idea that “it is
Administration official. The strategy includes strengthening
for the people of Asia to run the affairs of Asia, solve the
cooperation with U.S. treaty allies; stepping up engagement
problems of Asia, and uphold the security of Asia.” In
with regional multilateral institutions, such as the
November 2014, Xi told Obama that the concept is not
Association of Southeast Asian Nations (ASEAN); and
intended to exclude the United States from Asian security,
expanding trade with Asian nations through negotiations
assuring him that, “the Pacific Ocean is broad enough to
toward a Trans-Pacific Partnership (TPP) trade agreement.
accommodate the development of both China and the
It also includes working to strengthen relations with China,
United States, and [for] our two countries to work together
including its military. The two countries are engaged in
to contribute to security in Asia.”
more than 100 bilateral dialogue mechanisms.
Nonetheless, Chinese questioning of the U.S. role in Asia
has continued. In a high-profile speech in late November, a
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China, U.S. Leadership, and Geopolitical Challenges in Asia
Chinese Vice-Foreign Minister implicitly criticized U.S.
On still other issues, such as the new Chinese-led AIIB,
treaty alliances in the region—with Australia, Japan, the
launched outside of the U.S.-led post-World War II Bretton
Philippines, South Korea, and Thailand—in warning that
Woods economic system, China’s vision has proved more
strengthening bilateral alliances would “easily worsen
attractive to many nations. Even close U.S. ally Australia
divisions and confrontation in the region.” The Vice-
has indicated plans to join the AIIB, despite U.S. concerns
Foreign Minister also said China rejected “outside
about the bank’s governance structure and duplication of
interference in internal affairs of Asian countries.”
functions of the World Bank and Asian Development Bank.
China continues to develop military capabilities that the
The Administration has called on the Senate to consent to
U.S. Department of Defense (DOD) views as intended to
ratification of UNCLOS, in part to strengthen the credibility
enable China, “to attack, at long ranges, military forces that
of U.S. calls for China to abide by international law in its
might deploy to or operate in the western Pacific,”
handling of maritime disputes. Opponents are concerned
including U.S. forces. DOD refers to these as “anti-
about implications for U.S. sovereignty. The White House
access/area-denial” (A2/AD) capabilities. DOD judges the
has also called on Congress to ratify a 2010 reform package
primary driver for Chinese military investment to be
for the International Monetary Fund that would increase the
preparation for a potential conflict over Taiwan. China has
member contributions and voting power of developing and
also engaged in sometimes risky interceptions of U.S. ships
emerging market economies, in part to reduce incentives for
and aircraft operating in international waters and airspace
such countries to launch alternative institutions.
near China. China claims the United Nations Convention on
the Law of the Sea (UNCLOS) allows it to regulate the
Actions in the 113th Congress
activities of foreign military forces operating from 12 to
The 113th Congress held China-focused hearings on such
200 nautical miles from its coast. The United States and
issues as U.S.-China relations, human rights, maritime
most other nations believe UNCLOS does not confer that
disputes, Chinese naval modernization, China’s counter-
right.
space program, the Chinese purchase of a major U.S. pork
producer, and pro-democracy protests in Hong Kong. China
Select Policy Issues
also figured prominently in other hearings, including those
The United States and China come to many policy issues
on strategic rebalancing to the Asia-Pacific region,
with different values and strategic interests. On some
cybersecurity, Taiwan, and North Korea. Legislative
issues, China’s position has evolved to be closer to that of
provisions passed by the 113th Congress include those:
the United States. Against the backdrop of China’s myriad
economic initiatives, for example, the Administration has
requiring DOD to submit reports on its strategy in the
pushed forward with 12-nation TPP trade negotiations.
Asia-Pacific region and study potential responses to
China initially criticized the TPP as exclusionary, with
Chinese and Russian counter-space capabilities;
standards that developing economies could not realistically
making available funds to strengthen maritime security
meet. China now takes a neutral stance and is actively
in the Asia-Pacific region, while barring such funds
negotiating a bilateral investment treaty (BIT) with the
from being used for the Chinese military;
United States with similar high standards, although it is also
leading efforts to create a separate regional trade grouping,
calling for the peaceful resolution of maritime and
the Regional Comprehensive Economic Partnership
jurisdictional disputes in the Asia-Pacific;
(RCEP). On climate change, although China was once wary
approving the transfer of certain older U.S. naval vessels
of an international commitment to limit its greenhouse gas
to Taiwan, and requiring the Secretary of State to
emissions, in November 2014 Xi and Obama made parallel
develop a strategy to obtain observer status for Taiwan
pledges of voluntary national targets to limit such
at the International Civil Aviation Organization;
emissions. In its North Korea policy, China now prioritizes
denuclearization, as the United States has long urged.
making available public diplomacy and foreign
assistance funds to counter Chinese soft power;
On other issues, public U.S. criticism has not significantly
requiring certain government agencies to assess the risk
changed Chinese behavior. The United States has accused
China of “coercive behavior, strident rhetoric, and
of cyber-espionage or sabotage before acquiring
ambiguous claims” in its handling of sovereignty
information systems from Chinese-owned entities;
disputes
over islands and waters in the East China Sea and the South
barring the National Aeronautics and Space
China Sea, for example. China’s rival claimants include
Administration and the Office of Science and
U.S. allies Japan and the Philippines and U.S. partner
Technology Policy from using appropriated funds for
Vietnam. In May 2014, after several years of U.S. efforts to
cooperation with China, with exceptions; and
curb the alleged involvement of Chinese state actors in
barring use of funds to procure processed poultry
commercial cyberespionage attacks against U.S. targets, the
products from China for the school lunch program.
Justice Department issued an indictment against five
members of China’s People’s Liberation Army for cyber
Susan V. Lawrence, Specialist in Asian Affairs
attacks. China denied the charges and suspended its
participation in a U.S.-China Cyber Working Group.
IF10029
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China, U.S. Leadership, and Geopolitical Challenges in Asia
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https://crsreports.congress.gov | IF10029 · VERSION 7 · UPDATED