China’s foreign policy is working systematically towards a realignment of theinternational order through establishing parallel structures to a wide rangeof international institutions. China has taken on a key role in financing thesealternative mechanisms that are designed to increase China’s autonomy vis-à-vis U.S.-dominated institutions and to expand its international sphere ofinfluence.With a network of China-centred organizations and mechanisms, China isstrategically targeting gaps within established intergovernmental structures.This network includes marginalised countries that are seeking out newpartners for international development assistance and their foreign relations.Current challenges to the post-cold war order such as the Ukraine crisis andthe protracted reform blockades in the WTO, the IMF, and the World Bankare favouring China’s shadow foreign policy.China continues to be involved in existing institutions. Chinese foreign policyis not seeking to demolish or exit from current international organizationsand multilateral regimes. Instead, it is constructing supplementary — in partcomplementary, in part competitive — channels for shaping the internationalorder beyond Western claims to leadership.The parallel structures fostered by China stretch across a variety of areas.Financial and currency policy, trade and investment, transregionalinfrastructure projects, security policy, technology (in particular ICTstandards and internet regulation), and informal diplomatic forums.
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China’s multiple initiatives are most effective when they are promoted in
combination with one another. Novel funding and currency mechanisms
have developed a significant attraction in Asia, Africa, and Latin America
within a short period of time. In Central Asia, China’s efforts to reshape the
regional security architecture overlap with large-scale and generously
funded infrastructural projects.
The evolving Chinese-sponsored organizations and mechanisms have the
potential to challenge and constrain American and European predominance
in important international institutions and policy areas. Efforts at keeping
China at bay in international rule-making for the 21st century, however, will
almost certainly backfire and reinforce Chinese determination to build
alternatives structures.
Instead, a cautious involvement and participation in selected mechanisms
(such as the AIIB or the Silk Road Economic Belt) that address pressing
needs in the targeted regions, should be considered in Western capitals.
Otherwise important new areas of international engagement will be left to
Chinese initiative and control.
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