Asian Research Center for International Development (ARCID), Mae Fah Luang University, Thailand ARCID china update Volume 1, No. 1 January -June 2018 ISSN 2630-0885 ARCID China Update Volume 1, No. 1 January - June 2018 Compiled by Tarida Baikasame Research Associate Asian Research Center for International Development (ARCID) School of Social Innovation Mae Fah Luang University Thailand ARCID CHINA UPDATE VOLUME 1, NO. 1 JANUARY-JUNE 2018 © All Rights Reserved Compiled by Tarida Baikasame ISSN: 2630-0885 First published in 2018 by ASIAN RESEARCH CENTER FOR INTERNATIONAL DEVELOPMENT (ARCID) School of Social Innovation, Mae Fah Luang University 333 Moo1, Thasud, Muang, Chiang Rai 57100, Thailand Tel : +66 5391 7137 Fax : +66 5391 6685 Email : [email protected] Website : chinawatch.today, social-innovation.mfu.ac.th/arcid.php Facebook page : www.facebook.com/ARCIDTHAILAND www.facebook.com/chinawatch.arcid Printed by TECHNO PRINTING CENTER 643 Utarakit Road, Wiang, Muang, Chiang Rai 57000, Thailand Tel/ Fax : +66 5371 8841 Email : [email protected] Contents Preface ix Part I: The Chronology (January-June 2018) Foreign Affairs 3 Political Affairs 13 Economic Affairs 25 Socio-cultural Affairs 41 Part II: Selected Documentation (January-June 2018) (A) Five-Year Plan of Action on Lancang-Mekong 53 Cooperation (2018-2022) (B) Phnom Penh Declaration 62 (C) Greater Mekong Subregion Core Environment 68 Program Strategic Framework and Action Plan 2018-2022 (D) Report on the Work of the Government 68 (E) Joint Summit Declaration: 6th GMS Summit of Leaders 68 (F) The Hanoi Action Plan 2018-2022 75 (G) Greater Mekong Subregion Regional Investment 75 Framework 2022 (H) Siem Reap Declaration 75 (I) Xi Jinping’s Keynote Speech at the Boao Forum for 81 Asia Annual Conference 2018 v (J) Bangkok Declaration of the 8th Ayeyawady – Chao 81 Phraya – Mekong Economic Cooperation Strategy Summit (K) ACMECS Master Plan (2019-2023) 85 (L) The White Paper on China and the World Trade 85 Organization Part III: Selected Analysis (January-June 2018) Foreign Affairs (A) Fresh impetus for China-Cambodia ties 89 Ge Hongliang (B) Thailand’s place in the ‘Asian Century’ 91 The Nation (C) Philippines-China maritime cooperation shows 92 good start Liu Lulu (D) Hanoi tactful in developing major power ties 93 Ge Hongliang (E) China’s rapid development benefits ASEAN, gives 95 new impetus to world Huang Xilian (F) Neighborhood diplomacy works wonders 97 Shi Yinhong (G) Diplomacy with ‘correct conception’ 99 Chen Xiangyang Political Affairs (H) Mekong countries eye bold new future 101 Kavi Chongkittavorn (I) Developing the Mekong 104 Editorial Bangkok Post vi (J) Securing the future prosperity of the Greater Mekong 106 Subregion Takehiko Nakao (K) Why Xi’s lifting of term limits is a good thing 108 Eric X. Li (L) Belt and Road carrier of China’s new soft power 111 Fabio Massimo Parenti (M) The Indo-Pacific and Asean centrality 113 Thitinan Pongsudhirak (N) Mutual trust key to peaceful South China Sea 115 Liu Lin Economic Affairs (O) Let’s celebrate reform’s 40th anniversary 119 Martin Jacques (P) Toeing Jack Ma’s line easier said than done 122 The Nation (Q) Commentary: Why is China still a developing 124 country? Xinhua (R) Chinese firms need caution when wading into 125 Southeast Asia’s nationalism Su Tan Socio-cultural Affairs (S) New Narrative On Human Rights 126 Lan Xinzhen (T) Do Chinese tourists lack respect for local customs 128 and traditions? Chen Yang Appendices 131 vii Preface With economic reforms and the opening up of the People’s Republic of China (PRC) to the outside world by Deng Xioaping and post-Deng leaders, China is now the largest economy (on a purchasing power parity basis). All indications show that China will be a superpower. The meteoric rise of China in the 21st century signals the successful comeback of China in regaining its respectful place in regional and international affairs. It also means challenges as well as opportunities for other parts of the world, especially for countries in the Asia Pacific region. For many of us, the big question is: how should we deal with such a rising superpower? Other questions may include the following: Is China’s rise going to be sustained? What are the new directions mapped out by Xi Jinping to develop China? What sort of developmental challenges will it face? Is China a threat according to some analysts? How can we promote a win- win relationship with China? How can we manage our problems, if any, with China in order to preserve peace and development? To answer these questions, the Asian Research Center for International Development (ARCID) of the School of Social Innovation at Mae Fah Luang University has launched the China Watch Project with a grant from the Thailand Research Fund (TRF). We would like to express our thanks to the TRF for its funding support and suggestions in improving the project proposal. As part and parcel of the China Watch Project, ARCID has established a Monitor and Analysis (M & A) Unit surveying and analyzing major developments in China. Located in Northern Thailand, ARCID would take advantage of its geography and focus its research more on the Mekong region and its relations with East Asia, including China. We hope this strategy could help a young research center to establish a niche in the academic, intellectual and policy community. In this regard, the ARCID China Update, a biannual publication, is produced by the M & A Unit to keep track of the developments in China with special reference to its interactions with the Mekong region. The publication includes a chronology, selected documentation, selected analysis, and at times, ix appendices. Inaugurated in mid-2018, the ARCID China Update is published twice a year with each issue covering developments in China for the immediate past six months. Essentially, the publication is a record of the events and issues under review. It is meant to be providing up-to-date information about China, especially for those in Thailand and other states in the Mekong region. Lee Lai To, Ph.D. Senior Professor and Director ARCID x Part I The Chronology (January -June 2018) ARCID China Update Volume 1, No. 1 January - June 2018 (I) The Chronology (January-June 2018) (A) Foreign Affairs January 1 President Xi Jinping delivers a New Year speech. He pledges to boost reform and public welfare and world stability. January 3 Chinese Ambassador to Laos Wang Wentian and Lao Deputy Minister of Foreign Affairs Khamphao Ernthavanh have signed an agreement on Lancang- Mekong Cooperation funding for Lao projects. January 10-11 Premier Li Keqiang attends the 2nd Lancang-Mekong Cooperation (LMC) Leaders’ Meeting in Phnom Penh and pays his official visit to Cambodia. (1) Premiere Li Keqiang meets with Prime Minister Hun Sen of Cambodia for expanding and strengthening bilateral cooperation. China and Cambodia sign 19 aid and investment pacts. (2) Premiere Li Keqiang meets with Prime Minister Prayut Chan-o-cha of Thailand in order to strengthen the integration of the Belt and Road Initiative and Thailand’s Eastern Economic Corridor (EEC). (3) Premiere Li Keqiang meets with the leaders of Vietnam, Laos and Myanmar at the meeting. 3 The Chronology January 17 (1) China-Myanmar jointly conduct oceanographic research in Myanmar’s water with local experts for better understanding of the response to climate change and supporting the marine ecological protection in this area. (2) China and Myanmar hold a new round of diplomacy and defense consultations. This talk is co- chaired by Chinese Vice Foreign Minister Kong Xuanyou and Deputy Chief of Joint Staff Department of the Central Military Commission Shao Yuanming from the Chinese side, and Minister of International Cooperation U Kyaw Tin and Commander-in-Chief of No.1 Bureau of Special Operations (Army) Tun Tun Naung from the Myanmar side, aiming to promote bilateral ties, maintain peace in the border area and exchange views on the situation in northern Myanmar. January 18 Philippine President Rodrigo Duterte allows China to conduct research with the University of the Philippines at the Benham Rise in the Philippines area. January 21 Chen Zhu, vice chairman of China’s National People’s Congress Standing Committee, and Pham Binh Minh, Vietnamese Deputy Prime Minister and Foreign Minister, attend a reception marking the 68th anniversary of the establishment of diplomatic relations between China and Vietnam. Both sides call for further advance political mutual trust and strengthen the development strategies and culture exchange. January 29 ASEAN Secretary General Lim Jock Hoi received credentials presented by China’s new Ambassador to ASEAN Huang Xilian at the ASEAN Secretariat. He expresses that China is one of the most important partners with ASEAN and ASEAN values China’s regional role. ASEAN is willing to work with China to strengthen political mutual trust and deepen economic cooperation in various field. January 30 Chinese Foreign Minister Wang Yi outlines China’s diplomacy in 2018 at the New Year Reception. He says 4 The Chronology that China would further promote the Belt and Road Initiative and prepare for hosting a series of diplomatic events such as the annual meeting of Boao Forum for Asia, and the Shanghai Cooperation Organization summit. China will also deepen its global partnership network in this year. February 5-6 Vice Foreign Minister Kong Xuanyou holds consultation with Deputy Foreign Minister Lê Hoài Trung of Vietnam talking about the progress in China- Vietnam relations since last year. They try to promote key cooperation such as China’s Belt and Road Initiative and Vietnam’s Two Corridors and One Economic Circle. They will implement bilateral high- level consensus and the Agreement on the Basic Principles Guiding the Settlement of Sea-related Issues between China and Vietnam.