ZHU AND PEARSON:GLOBALIZATION serving China's national interests is still the core objective.There is no dis- agreement on whether China should actively defend its sovereignty,even if scholars disagree on the realms appropriate for such a defence. Globalization's impact on economic security The importance Chinese scholars attach to the protection of sovereignty is even more pronounced in studies of globalization and economic security. Once again,this concern is not limited to Chinese scholars.Many Western scholars have contextualized the traditional understanding of national se- curity as based on a clear divisibility of authority between countries with acknowledgement of transnational forces and new security concerns(for example,cross-border terrorism and the fragmentation of production and Krenuef trade)that arise with globalization(Aydinli and Rosenau,2005;Kirshner, 2006.)While these globalization-induced changes are also increasingly dis- cussed by Chinese scholars of CPE,for them,the protection of economic security remains the ultimate aim.s Compared to the emergence of a ne- ss:toie oliberal strand in discussions of globalization's challenge to sovereignty, as noted above,scholarship focusing on economic security is much more undifferentiated in expressing the need to guard economic sovereignty. Discussions such as those of Fan Ying (1998:13)put economic security at the heart of national survival: The aim of a country to strengthen its national economic security is to consistently strengthen its own economic power and maintain a uoloe!f leyueyS] relatively advanced international position to the others,therefore to raise its survival technique in the context of economic globalization; at the same time,it aims to use its economic power as means to gain political and military security. Similarly,Wang Yizhou(1998:17)warns that globalization is a double- edged sword:while international financial integration may bring more 入AC benefit to a country than the traditional methods of agricultural and man- ufacturing production,it can also bring the danger of financial crisis at lightning speed.Once again,however,we see realist concerns emerging; as demonstrated by the other papers in this special issue(see the articles by Wang and Pauly,and Wang and Chin),many Chinese scholars argue that the real danger for China's economic security is not globalization itself, but,rather,its use as a conduit by major Western powers,especially the US,against China(Pu,2001;Zhang Wenmu,2002a,2002b).For example, Yan Gaohong(2004:74)argues that while most countries have been try- ing to attain the economic benefits of globalization by engaging in mutual assistance and cooperation,the US continues to follow its traditional way of pursuing its national interests,for example through military support to Taiwan.Concerns about economic security appear in myriad studies 1223
ZHU AND PEARSON: GLOBALIZATION serving China’s national interests is still the core objective. There is no disagreement on whether China should actively defend its sovereignty, even if scholars disagree on the realms appropriate for such a defence. Globalization’s impact on economic security The importance Chinese scholars attach to the protection of sovereignty is even more pronounced in studies of globalization and economic security. Once again, this concern is not limited to Chinese scholars. Many Western scholars have contextualized the traditional understanding of national security as based on a clear divisibility of authority between countries with acknowledgement of transnational forces and new security concerns (for example, cross-border terrorism and the fragmentation of production and trade) that arise with globalization (Aydinli and Rosenau, 2005; Kirshner, 2006.) While these globalization-induced changes are also increasingly discussed by Chinese scholars of CPE, for them, the protection of economic security remains the ultimate aim.8 Compared to the emergence of a neoliberal strand in discussions of globalization’s challenge to sovereignty, as noted above, scholarship focusing on economic security is much more undifferentiated in expressing the need to guard economic sovereignty. Discussions such as those of Fan Ying (1998: 13) put economic security at the heart of national survival: The aim of a country to strengthen its national economic security is to consistently strengthen its own economic power and maintain a relatively advanced international position to the others, therefore to raise its survival technique in the context of economic globalization; at the same time, it aims to use its economic power as means to gain political and military security.9 Similarly, Wang Yizhou (1998: 17) warns that globalization is a doubleedged sword: while international financial integration may bring more benefit to a country than the traditional methods of agricultural and manufacturing production, it can also bring the danger of financial crisis at lightning speed. Once again, however, we see realist concerns emerging; as demonstrated by the other papers in this special issue (see the articles by Wang and Pauly, and Wang and Chin), many Chinese scholars argue that the real danger for China’s economic security is not globalization itself, but, rather, its use as a conduit by major Western powers, especially the US, against China (Pu, 2001; Zhang Wenmu, 2002a, 2002b). For example, Yan Gaohong (2004: 74) argues that while most countries have been trying to attain the economic benefits of globalization by engaging in mutual assistance and cooperation, the US continues to follow its traditional way of pursuing its national interests, for example through military support to Taiwan. Concerns about economic security appear in myriad studies 1223 Downloaded by [Shanghai Jiaotong University] at 04:55 07 January 2015
REVIEW OF INTERNATIONAL POLITICAL ECONOMY at the sector level (especially the defence industry)(e.g.,Shi Zhongliang, 2003;Feng Shaolei and Wang Xinjun,2001)and with regard to particu- lar functions of China's economy,including international trade(Xia and Wang,2001),the inflow of foreign capital(Wei,2002)and national resource management (Hu,2003). In general,no substantial disagreement has emerged among Chinese IPE scholars who focus on globalization and economic security.It is commonly held that China's economic security is facing multiple challenges from globalization,and the situation is made worse by the hostility of the West towards China.Many studies explicitly denounce what is called the'China threat'view,which they argue is put forth in the West in order to keep China weak,and they link these views to the reflexively understood views of historical and on-going unfair treatment of China by the West.Such Krenuef arguments reach their extreme in a strand of economic nationalism that is perhaps found more in the public sphere of discussion(such as on the leftist S website,Utopia)than in mainstream scholarship.10 For more mainstream IPE and CPE scholars,the common prescription is that national industries should be given priority by the Chinese government.There is,however, no policy recommendation for China to withdraw from the globalized economy.Strengthening China through globalization,while protecting the nation from possible challenges,is still regarded as the correct national strategy. uojoelf Globalization's impact on the economic role of the state A third overarching focus of the Chinese literature on the state and glob- alization concerns the economic role of the state in development -also rey ueyS] a major focus in the Western literature on developing countries,includ- ing on China.At the centre of the Western debate lies the question of whether the state should engage in microeconomic management to sup- port development.The main battle since the 1980s has been over how to promote economic development in the developing world.The'develop- papeojuMo mental state thesis centred around explaining the East Asian miracle and attributed the economic success of Japan,South Korea and Taiwan to se- lective industrial policies,rather than neoclassical preferences for getting prices right'and limiting government intervention (Johnson,1982;Ams- den,1989;Wade,1990).Yet,it has become more difficult for the state to use traditional tools to intervene as a national economy becomes more deeply integrated into the global economy and national production is increas- ingly influenced by TNCs and global value chains.Many Western scholars have discussed the possible convergence in national models toward the neoliberal free market path,11 whereas others argue that although the form that state intervention routinely takes has changed with globalization,the state nevertheless continues to play a crucial economic role(Chang,2003; 1224
REVIEW OF INTERNATIONAL POLITICAL ECONOMY at the sector level (especially the defence industry) (e.g., Shi Zhongliang, 2003; Feng Shaolei and Wang Xinjun, 2001) and with regard to particular functions of China’s economy, including international trade (Xia and Wang, 2001), the inflow of foreign capital (Wei, 2002) and national resource management (Hu, 2003). In general, no substantial disagreement has emerged among Chinese IPE scholars who focus on globalization and economic security. It is commonly held that China’s economic security is facing multiple challenges from globalization, and the situation is made worse by the hostility of the West towards China. Many studies explicitly denounce what is called the ‘China threat’ view, which they argue is put forth in the West in order to keep China weak, and they link these views to the reflexively understood views of historical and on-going unfair treatment of China by the West. Such arguments reach their extreme in a strand of economic nationalism that is perhaps found more in the public sphere of discussion (such as on the leftist website, Utopia) than in mainstream scholarship.10 For more mainstream IPE and CPE scholars, the common prescription is that national industries should be given priority by the Chinese government. There is, however, no policy recommendation for China to withdraw from the globalized economy. Strengthening China through globalization, while protecting the nation from possible challenges, is still regarded as the correct national strategy. Globalization’s impact on the economic role of the state A third overarching focus of the Chinese literature on the state and globalization concerns the economic role of the state in development – also a major focus in the Western literature on developing countries, including on China. At the centre of the Western debate lies the question of whether the state should engage in microeconomic management to support development. The main battle since the 1980s has been over how to promote economic development in the developing world. The ‘developmental state’ thesis centred around explaining the East Asian miracle and attributed the economic success of Japan, South Korea and Taiwan to selective industrial policies, rather than neoclassical preferences for ‘getting prices right’ and limiting government intervention (Johnson, 1982; Amsden, 1989; Wade, 1990). Yet, it has become more difficult for the state to use traditional tools to intervene as a national economy becomes more deeply integrated into the global economy and national production is increasingly influenced by TNCs and global value chains. Many Western scholars have discussed the possible convergence in national models toward the neoliberal free market path,11 whereas others argue that although the form that state intervention routinely takes has changed with globalization, the state nevertheless continues to play a crucial economic role (Chang, 2003; 1224 Downloaded by [Shanghai Jiaotong University] at 04:55 07 January 2015