April 4, 2013

On the Way to World Leadership

In recent years, the main feature in the formation of the world order is a rapid development of China, which is turning into a new world super state. According to its economic potential, China already ranks second, behind only the United States. It is possible that China may soon even overtake the USA.

The country is expanding its sphere of interests and influence of already passed purely regional level in the Asia-Pacific region to a higher, global one, including such regions as Eurasia, America and Africa. All this is accompanied by active military buildup, which today is actually second only after the USA.

Delegates at the opening of the Session of the National People's Congress in the Great People’s Hall, Peking
Delegates at the opening of the Session of the National People's Congress in the Great People’s Hall, Peking

Contributes to this growth balanced policy of the Chinese leadership, which has focused its activities on the national development of the country, using all available resources and rich historical experience.

The first, held in March of this year, Session of the National People's Congress (NPC - China's Parliament) of the 12th Convocation can be considered the next step in such a steady development. The Session summed up economic achievements of China and determined the spheres for further development. There were also changes in the state leadership.

Premier of the State Council of the PRC( Cabinet of Ministers of the country) Wen Jiabao
Premier of the State Council of the PRC( Cabinet of Ministers of the country) Wen Jiabao

In his report the Premier of the State Council of the PRC (the Cabinet of Ministers), Wen Jiabao pointed out that China's major achievements over the past five years can be considered successful overcoming negative effects of the global financial crisis and the steady growth of the economy of the country. Thus, during the mentioned period, China's GDP has increased from 4.22 trillion to 8, 23 trillion US dollars. Real income of urban and rural population has also increased (from 810 billion to 1.9 trillion US dollars), prices for basic goods have decreased (by 2.6% in 2012). The level of unemployment is also falling.

China also considers as its important achievements improvement of the system of management of the economy, development of modern technologies on the basis of national scientific achievements, increasing food security through the modernization of agriculture and coordination of its work with the policy of industrialization and urbanization, expansion of the domestic demand, as well as optimization of the structure of foreign trade (the average annual growth of China's foreign trade has made about 12%).

Development of the state was also estimated, the list of its problems includes: “overheating” of the Chinese economy due to the too high rate of its growth; gradual loss of competitiveness of the industry of China because of rising labor costs of Chinese workers; deceleration of economic reforms; growing difference between the standards of life of urban and rural population of China, as well as between the rich coastal provinces and poor areas of the mainland; conflicts in allocation of plots of land; environmental degradation of the country.

Drawing conclusions from all the mentioned above and determining the general course of China - creation of a modern developed state - the Chinese Government has outlined the main directions of further development of the country.

Thus, China must realize a so-called “Chinese dream” - a national revival of the country, where it will occupy a worthy place in the international system, and standards of life of all Chinese citizens will be high.

For this purpose there has been planned a transition from the old economic model (where Government’s support was stimulating Chinese exports and capital construction in the country) to new principles of management, based on the development of the internal market (both consumer and financial), as well as increasing the share of private business and investments in GDP of the country through the creation of the securities market. This assumes a gradual shift in the priorities from the industrial economy, processing raw materials to innovation economy and service economy.

Decrease of pace of the development of the  Chinese economy
Decrease of pace of the development of the  Chinese economy

However, despite the planned reduction of the rate of the Chinese economy from 12% to about 7.5% (because of the “overheating”) have not been cancelled the set earlier tasks to double GDP in the period from 2010 to 2020, and to increase the average income per capita.

China is also supposed to realize a large-scale social and economic program of urbanization of the country, namely, to move to cities and towns about 400 million rural residents over the next 10 years. Taking into consideration that Chinese cities are overcrowded, the main focus will be on the development of small and medium-sized towns. In general, they will allocate about 6.4 trillion US dollars on this program. Thanks to this, already in 2013 in Chinese cities there will be created more than 10 million new jobs and the unemployment rate will not exceed 4.6%.

There has been planned reformation of the system of state Government of the PRC, which will increase effectiveness of its work . In particular, there has been adopted a decision on restructuring the State Council (Cabinet of Ministers) of China, when the number of Ministries will be reduced , their structure and number will be optimized.

The PRC Government has to deal with a complex of social and economic problems of the country, in particular, to prevent inflation, to counter-act stratification of the Chinese society, to improve provision of pensions, as well as to eradicate formalism, bureaucracy and corruption. At this, corruption in state bodies of China is recognized as one of the most serious, undermining the basis of socio-economic and political stability of the country, threats.

China threatened the USA with a military ultimatum
China threatened the USA with a military ultimatum

Creating favorable conditions for achieving these goals, China's leaders will strengthen patriotic education of the Chinese population, and above all – of the youth. According to the party leadership of China, the “Chinese Dream” has to become a national idea for the whole Chinese society. But despite the increase of the share of the private component in the Chinese economy, China will not swerve from the path of the ”socialist development with Chinese specifics”.

Priority in the work of the PRC leadership will be strengthening the power of the Armed Forces to ensure safe development of the state and defense of its interests. The People's Liberation Army (PLA) has to defeat its opponents in modern wars and armed conflicts under any circumstances and in any situations, and fulfill tasks of immediate response to natural disasters and manmade catastrophes. A specific task of the PLA is its participation in peacekeeping, anti-terrorism and stabilization operations outside the country.

Китай готується до бліцкригу проти США?
Is China getting prepared for a blitzkrieg against the USA?

For the PLA to fulfill its tasks, China will take efforts for: modernization of the equipment and arms of troops and fleets, using the power of the Chinese defense industry, as well as advanced foreign technologies; improving the system of commandment, intelligence and communications; increasing the level of combat training and military education; improving the party-political work in the army, and patriotic education of youth.

They intend to supply the PLA with modern military equipment, including space systems of reconnaissance and communications, means of anti-space and anti-air defence, multi-purpose aircrafts of the latest generations, aircraft carriers, new striking missile systems (intercontinental ones included), systems of highly accurate weapon, etc. All this will allow China to hold back its possible opponents in the Asia-Pacific Region and at the world level.

In total, the Chinese defense budget for 2013 allocated for these purposes 114.3 billion US dollars, which is by 10.7% more than in 2012.

The implementation of these goals will be the main work of the new state leadership of the PRC of the 5th generation, elected at a regular Session of the Chinese Parliament.

Premier of the State Council  of the PRC Li Keqiang
Premier of the State Council  of the PRC Li Keqiang
Head(President) of the PRC Xi Jinping
Head(President) of the PRC
Xi Jinping

Head (President) of China was elected General Secretary of the Central Committee of the Communist Party of China, Xi Jinping, who also became Chairman of the Central Military Committee - the main supervisory authority of the power structures of the country.

Premier of the State Council of the PRC became Li Keqiang. Both, Xi Jinping and Li Keqiang were Deputies of their predecessors in office, which should ensure continuity of the strategic course in China's foreign and domestic spheres.

These two new leaders of China are characterized as strong-willed and consistent personalities, ideological supporters of the concept of strengthening China as a new super state of the world, as well as invincible fighters against all external and internal factors, causing obstacles on the way of the country’s movement towards its goals. On this basis, China's foreign policy will be aiming at realization of the main national tasks on reaching the world leadership. It will be accompanied by increased economic expansion of China in all spheres related to Chinese interests. First of all it will be felt by neighboring countries and regions, particularly the Asia-Pacific Region and Russian Federation.