Page numbers in bold refer to figures and tables
Abe, Shinzō, 107
Aecon, 119
Alibaba (online shopping platform), 37–8, 62
Alipay (online payment platform), 26, 38, 80
Allison, Graham, 112
AMC Entertainment, 77
Anbang Insurance Group, 73, 74–6, 81, 82
Ant Financial, 38
artificial intelligence (AI): China’s development of, 34, 49–50; data protection and, 39
Asian Development Bank, 103
Asian Infrastructure Investment Bank (AIIB), 11, 18, 95, 97, 113, 122
Asian regional security, 122–3
Asia-Pacific Economic Cooperation (APEC), 18
Asia Society’s Task Force on US-China Policy reports, 20, 112, 139
Association of Southeast Asian Nations (ASEAN), 134
Australia: China’s bilateral relations with, 118, 125, 131, 140; national security legislation, 139–40
Avolon Holdings, 84
Baidu Medical Brain, 39
banks, Chinese: central bank’s injections into, 67; foreign investments in, 59; reform of, 26; regulations of, 26, 59–60; risk management, 59; shadow activities of, 25, 26–7, 59, 60; state-owned, 9, 25, 59
BAT (Baidu, Alibaba, and Tencent), 37–8, 39
Beijing Summer Olympics (2008), 34
Belt and Road Initiative (BRI): estimates of total investments in, 93; funding of, 95–6, 97; goals of, 10, 94–5, 96; implementation challenges, 95–6; inaugural forum, 95; initial phase of, 93; Italy’s endorsement of, 19, 98; Japan’s position on, 107; launch of, 93; map of, 94; media coverage of, 93–4; overview of, 10–11, 93; pushback against, 101; significance of, 107; trade and investment flows, 94, 97–8
Belt and Road Initiative (BRI) infrastructure projects: capital spending, 103–4; changes in structural policies, 104; Chinese investment in, 108; cost of, 96, 102; design of, 103–4; diplomacy and, 107; in Greece, 100; lending standards, 104–5; in Malaysia, 101; multilateral approach to, 106–7; in Pakistan, 96–7, 99–102; performance of, 102; practical difficulties of, 108; public investment in, 104; risk management, 99, 101–6; selection process of, 102–3, 105–6; in Sri Lanka, 100
BHP Billiton of Australia, 90
Boao Forum for Asia, 19
Bohai Capital, 84
Bond Connect, 64
Canada: Asian regional security and, 122–3; China strategy for, 12–14, 115, 116–18; cyber security system, 121; economic competitors of, 117; as education destination, 126–7; food export, 126; foreign direct investment in, 90, 128, 128, 129, 130; foreign relations, 11; national interests, 123–4, 142; national security of, 119; regionalisms, 123–4; trade relations, 124, 125; visa applicants to, 139
Canada-China cooperation: in agriculture, 136; barriers to, 131–2, 136, 138; in clean technology, 134–5; common interest in, 138; criticism of, 140; in cross-border investments, 127, 128–30; in cultural exchange, 118–19; in energy sector, 126; in environmental goods and services, 135; in financial services, 127; in food security, 126; in infrastructure and transportation, 126; intellectual property protection and, 135; opportunities for, 125–6, 137; sectoral initiatives in, 134–6, 157n30; in services industries, 126–7; in trade, 130–4; US factor in, 125, 127
Canada-China Economic Complementarities Study, 124, 134, 136
Canada-China free trade agreement: negotiations of, 130–1
Canada-China High-Level Dialogue on National Security and the Rule of Law, 116
Canada-China relations: economic aspects of, 124; evolution of, 109, 115–16; expert recommendations on, 114; future of, 140, 142; Huawei affair and, 12, 109; negotiation process in, 136–7, 138; non-trade issues in, 138; overview, 11; public opinion poll about, 114–15; realities and priorities of, 109–10; security implications of, 119–20; strategic context of, 110–15, 116; trade-related issues in, 13; US-China affairs and, 110, 141–2
Center for Global Development (CGD), 102, 105
Chang’e IV spacecraft, 3
ChemChina, 82
China: 13th Five-Year Plan (2016–20), 20, 21–2; access to foreign technology, 45, 48, 50; anti-corruption campaign, 5–6, 16; anti-poverty programs, 5; banking deposit insurance system, 58; bond market, 64–5; brain drain, 49; capital allocation problem, 66; capital market, opportunities and risks, 86–8; capital market, reform of, 63–4; carbon emissions, 22; as cashless society, 37; cyber-security law, 39; debt level of, 25, 57, 66–7, 68; dependence on foreign suppliers, 43–4; digital technologies, 36–7; diplomacy, 100, 105, 107; economic strategy, 5; effect of globalization on, 19; environmental policy, 15, 22; exceptionalism of, 110; food security, 126; foreign direct investment in, 4, 71, 129, 141; foreign policy, 4, 72, 86, 107, 112, 118, 139; free trade agreements, 122, 125; global status of, 15, 34; gross domestic product, 124; high-speed trains, 45, 47, 106; income inequality, 5, 15, 143n1; innovation strategies, 35–6, 44, 51–3; intellectual property in, 49; international reputation of, 106; Internet users in, 37, 38; labour force, 96; liquidity problem, 66; middle class of, 3, 5; outbound mergers and acquisitions, 73; political development, 7; short-term and long-term prospects of, 141; state and markets relationships, 11; strategic industries of, 124; technological innovations, 11–12, 24, 34, 39, 43; university education, 48; wind power industry in, 47
China 2030 (research report), 36
China-Australia free trade agreement, 130–3
China Banking and Insurance Regulatory Commission (CBIRC), 61, 73
China Communications Construction Co., 119
China Development Bank, 97, 105
China Life Insurance, 30
China-Pakistan Economic Corridor (CPEC), 96, 99–100
China Securities Regulatory Commission, 65
Chinese Securities Index, 27
climate change, 18
Committee on Foreign Investment in the United States (CFIUS), 48, 84, 87, 90, 112
Communist Party of China (CPC): 19th National Congress of, 4, 22; economic policy of, 5, 15–16, 21–2, 31, 54; legitimacy and power of, 6–7; national security policy of, 21; Politburo Standing Committee, 22; reform agenda of, 16; social contract between the people and, 16; Third Plenum of 18th Congress of, 20, 29
Comprehensive Trade and Economic Agreement (CETA), 130, 133
Confucius Institutes, 139
Dalian Machine Tool Group, 65
“debt trap diplomacy,” 10, 93, 105
developing countries: annual growth rate of, 23
Diversification not Dependence: A Made-in-Canada China Strategy, 134
e-commerce, 37, 39–40, 62. See also mobile payment technology
Economic Partnership Agreements, 133–5
economy, Chinese: capital outflows, 10; challenges of, 7–8, 15; Communist Party’s role in, 4; computer gaming business, 80; default risk of, 21; global status of, 3, 113–14; gross domestic product, 17; growth prospects, 33, 68; mergers and acquisitions, 74–80, 75, 83; modernization of, 3; need for structural changes of, 22–3; protectionist policies, 46–7; research and development sector, 36; restructuring strategies of, 5, 16, 20, 32–3; role of state in, 30, 47; solar panel industry, 43; strategic goals of, 42–3; tension and balance of, 32; Western perception of, 3–4; “zombie” firms in, 27, 29
Evans, Paul, 159n11, 159n12, 160n20, 160n23, 160n24
Export-Import Bank of China, 97, 105
Financial Stability and Development Commission, 9, 25, 67
financial system, Chinese: background of, 55–8; challenges of, 8–9; characteristics of, 55; China Banking and Insurance Regulatory Commission (CBIRC), 61, 73; competition in, 62; current account surplus, 70; debt problem, 66–7; integration into world markets, 55; loan policies, 70; modernization of, 7, 9, 16, 24–5, 27, 69–70; payment platforms, 26; state regulation of, 56, 61, 67–8; systemic risks of, 54, 55, 58, 65–6; taxation of, 70; wealth-management products, 61, 62–3
5G wireless technology, 34, 145n1
Five Eyes intelligence-sharing alliance, 120
foreign direct investment (FDI), 9–10, 50, 69. See also outward foreign direct investment, Chinese
Foreign Investment Promotion and Protection Agreement (FIPA), 116, 128–9, 131
Free Trade Area of the Asia-Pacific proposal, 18
free trade negotiations, 132
G20 meeting, Hangzhou, 18
Garratt, Julia, 110
Garratt, Kevin, 110
GE Appliances, 79
Goodale, Ralph, 120
Greece port project, 100
gross domestic product (GDP): China versus United States, 17
Harper, Stephen, 130
Heer, Paul, 20
high-speed trains, 45, 47, 105–6
Huang, Yiping, 24
Huawei affair, 12, 13, 120–1, 138–9, 142
Huawei Technologies: innovation strategy of, 41, 48; patents of, 50; public scrutiny of, 121; reputation of, 109; research and development centres, 50; security concerns, 121; US strategy towards, 121
Hytera, 119
Indonesia: high-speed rail project, 105–6
Ingram Micro, 78
innovations, Chinese: characteristic of, 8, 35–6; in e-commerce, 36–40; educational institutions and, 49; industrialization of process of, 41; modularization of product development, 41–2; parallel processing in research and development, 42; prospects of, 52–3; science-based, 48; state regulations and, 39–40, 46–9; studies of, 47; in telecommunications, 48. See also disruptive innovations
intellectual property (IP), 50, 51
International Monetary Fund (IMF): China’s collaboration with, 11; currency basket, 57, 148n3; recommendations for China, 25; reform of, 113
Internet Corporation for Assigned Names and Numbers (ICANN), 155n9
Internet finance, 26
Japan: debt-to-GDP ratio, 66; relations with China, 107
Jin, Liqun, 95
Khan, Imran, 102
Kyaukpyu Port, Myanmar, 101
Lardy, Nicholas, 31, 46, 51, 52, 87
Lenovo, 45
Li Keqiang, vii, 116
Liu Xiaobo, 110
Made in China 2025 (MIC 2025) strategic plan: goals for, 24, 43–4, 87; introduction of, 8, 11, 36, 43; potential of, 45, 52; priority sectors, 43; quantitative targets of, 44; role of market in, 42; shortcomings of, 44–5; state role in, 70
Mahathir bin Mohamad, 101
Mahbubani, Kishore, 121
Malaysia: China’s treaties with, 101; East Coast Rail Link project, 101
Meng Wanzhou, 12, 13, 109, 138
Meng affair. See Huawei affair
middle power, viii, 11, 114, 123, 124, 142
Minsky, Hyman, 54
mobile payment technology, 37, 38–9, 40. See also e-commerce
Mulgan, Geoff, 121
National Financial Work Conference, 25
National People’s Congress (2018), 16, 22
National People’s Congress (2019), 33
National Supervisory Commission of China, 16
Naughton, Barry, 44
NetEase, 39
Nets Union Clearing Corporation (NUCC), 26, 68
New Development Bank, 122
Nexen, 74
Norsat, 119
North American Agreement on Environmental Cooperation, 135
Organisation for Economic Co-operation and Development (OECD), 4
outward foreign direct investment (FDI), Chinese: in 2016, 81–3, 84, 92; in 2017, 84–6; boom of, 92; in comparative perspective, 71, 89; criticism of, 72; effect of, 87; geography of, 84; government policy towards, 84–5; growth of, 71, 72, 81–2; in health and biotech companies, 86; history of, 71–2; host-country policies towards, 85, 86, 87–8, 89–91, 129; implications of, 81–3, 88–91; institutions responsible for, 82; monetary value of, 82, 87–8; motivations for, 72, 81; prospects of, 89; ratio to GDP, 89; regulations of, 71, 85–6; risks of, 73, 89, 91; sectoral composition of, 84, 86–7, 88
Pakistan: economic development, 100, 102; Karachi-Peshawar railroad project, 100
Paris Agreement on Climate Change, 18
Paris Club, 105
Paulson, Henry: Dealing with China, 47
peer-to-peer (P2P) lending, 26, 27, 38, 40, 63
Pence, Mike, 112
People’s Bank of China, 26, 70
Piraeus, Port of, 100
Potash Corporation, 90
privately owned enterprises in China, 28, 39–40, 46
productivity performance, 46–7
purchasing power parity (PPP), 17–18
Rachman, Gideon, 113
renminbi: idea of internationalization of, 7, 8, 21, 57–8; in IMF currency basket, 57; market weakness of, 58
research and development (R&D) sector, 36, 41–2, 50
Rhodium Group, 86
Rudd, Kevin, 18
Sany, 50
Shanghai Cooperation Organization, 122
Silk Road Fund, 97
Sinochem, 10
Sinopec, 74
Society for Worldwide Interbank Financial Telecommunication code (SWIFT), 155n9
South Korea: economic development of, 23–4
Sri Lanka infrastructure projects, 100
state-owned enterprises (SOEs) in China: borrowing behaviour of, 15, 28, 46; business practices of, 4, 92; debates on economic role of, 29; foreign investments of, 130; government control of, 27–8, 31; improvement of efficiency of, 28; industries reserved for, 28; in international markets, 31; mergers and acquisition of, 29–30; ownership of, 28, 30–1, 45–6; productivity performance of, 7, 15, 45–6, 141; rationalization of, 32; reform of, 27–8, 30–2; revitalization and modernization of, 29–30
Strategic Hotels and Resorts, 75
Supercell, 80
Syncrude Oil, 74
Tencent (social media), 37–8, 80, 81
Trans-Pacific Partnership (TPP), 130, 133
Trump, Donald: meeting with Xi Jinping, 19; protectionist policy, 125
TWR Advisory Group, 102
Uighur minority in China, 13, 138
United Front of the Chinese Communist Party, 139, 157n38
United States: “100 Thousand Strong” initiative, 118; “America First” policy, 18; Commission on the Theft of American Intellectual Property, 50; economic policy, 87, 111; effect of globalization on, 19; exceptionalism of, 110; Foreign Investment Risk Review Modernization Act, 87; gross domestic product (GDP), 17; National Defense and National Security Strategies, 19, 112; regulatory system of, 148n1; semiconductor industry, 48; views of China, 19–20, 139
US-China relations: characteristics of, 12, 110–11; domestic challenges of, 111; expert recommendations on, 114; historical evolution of, 20, 111–12; Huawei affair and, 120–1; investment restrictions, 45; joint climate change initiative, 18; move towards transparency in, 89; tensions in, 4–5, 87, 112, 141; zero-sum policy thinking, 18, 112–13
US-Mexico-Canada Agreement (USMCA), 13, 110, 132, 154n1
Waldorf Astoria Hotel, 75
WeBank, 38
WeChat app, 38
Wen Jiabao, 5
Western Europe: Chinese investments in, 90–1
White, Hugh, 94
“Why China Can’t Innovate” (Abramia et al.), 47
Williamson, Peter, 40–1, 42, 48
World Bank, 103
World Economic Forum (2019), 10
World Trade Organization (WTO), 56
Xi Jinping: aspiration to restore China’s greatness, 18–19, 118, 122; centralization of power by, 7, 16, 32; development model of, 6; diplomacy of, 107; economic policy of, 3, 5, 7–8, 15, 16, 87, 111; on financial risks, 25, 67; financial support for Africa, 72; foreign policy of, 140–1; innovation strategy of, 35, 36; meeting with Donald Trump, 19; on national security threat, 9; political goals of, 4, 17; on reform of financial sector, 69–70; on restructuring of China’s economy, 20; speeches of, 18–19, 111, 122; state leadership of, 5, 6–7; support of SOEs, 11, 31; vision of BRI, 98, 108
Yu Yongding, 58
Yu’e Bao (digital wealth-management service), 38
Zhu Rongji, 32
ZTE, 120