Ralph Winnie moderated the forum on "The Role of China as a Partner for Economic and Political Stability in Asia and the World".
“The Role of China as a Partner for Economic and Political Stability
in Asia and the World”
March 26, 2014
UPF Office of Peace and Security Affairs — Washington, DC
The UPF Office of Peace and Security Affairs in Washington hosted a forum on “The
Role of China as a Partner for Economic and Political Stability in Asia and the World,”
on March 26, 2014. Moderated by Ralph E. Winnie, Jr., Director of the Eurasia Center’s
China Program, Washington-based experts, friends of UPF, and Ambassadors for Peace
dialogued about the current situation and made several important conclusions: (1) The
need to impress upon larger educated public opinion and policymakers in countries
around the world, the necessity for the U.S. and its allies of building relationships with
the PRC based on partnerships for economic, financial and political stability of the
international system of which China is an integral part. (2) The recognition that trust is
the basis for any relationship. Cooperative trust-building activities on the regional and
international levels are to be encouraged between the U.S. and China. The goal is to
reach a win-win relationship for all parties, not a zero-sum game. (3) China is the
world’s second largest economy. This reality cannot be ignored. The U.S. and its allies
would be wise to pursue partnership with China. Confrontation must be avoided, not only
for the sake of stability of the domestic economies of China, the U.S., and its allies, but
also because the stability of the global economic and financial system depends on
Chinese cooperation. The international system must be kept stable. (4) Ways must be
found to work together making a case with China of the necessity not only on the part of
the US and other countries but of China’s own responsibility in sustaining world peace
and world prosperity by promoting mutual trust, good will and cooperation in the interest
of all humanity.
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The forum attendees were welcomed by Dr. Antonio Betancourt, Director, Office of
Peace and Security Affairs-Washington, DC. “In examining the role of China as a partner
for economic and political stability in Asia and the world, we need to accept certain
realities. China is the world’s second largest economy, and the United States is China’s
second largest trading partner. China’s economy is embedded not only in the economy of
the U.S. but also in the economies of most countries around the world. Consequently, the
Chinese economy exerts a major influence on Asia’s regional and global stability in both
geopolitical terms and regarding the international economic and financial system."
“The U.S. and its allies pursue partnership as well as competition with China. However,
confrontation must be avoided at all costs, not only for the sake of stability of the
domestic economies of China, the U.S., and its allies, but also because the stability of the
global economic system depends on Chinese cooperation with the U.S. and its allies.
None of them can afford to destabilize the international system.”
Against such a backdrop, Dr. Betancourt asked how should the U.S. and its allies deal
with China? Can they rely on China to be a partner for economic and political stability in
the region and world? Can China be invited into a lasting partnership with a shared
responsibility for stability in Asia and the world, linking its own interests with the larger
interests of the world community, given that they have a huge stake in keeping the world
stable and at peace, and since they are global partners in trade investments and economic
development?
Ralph Winnie, the moderator, and Director of the Eurasia Center’s China Program
opened the discussion by reflecting on his many years of experience in China and the
importance of developing a personal and professional relationship based on trust and
mutual respect. The China mindset is people-based and there is a high value placed on
face-to-face contact.
Mr. Winnie also explained the challenge of dealing with the Chinese generation gap. The
older citizens were brought up under communism and still have memories of war and
deprivation. That older generation grew up under an oppressive government and its
intrusion into all areas of life, particularly in the area of ownership. Under Communist
rule, until the reforms of Deng Xiaoping (1904-97), all property was collectively owned
by the people. That mindset has slowly changed. The young, educated Chinese have a
different mindset. They are well-traveled, speak various languages, comfortable with
technology, and want the fruits of their efforts. These white-collar citizens, mostly
educated abroad, are the new middle class. Their numbers are staggering -- estimated at
more than 300 million -- larger than the entire population of the United States.
Although the generations clash over social issues, the gap is slowly closing. Mr. Winnie
shared about the high profile case of basketball star, Michael Jordan, who sued a Chinese
company for illegally using his name on its products. This represents a test of their legal
system’s regard for personal trademarks and protection of intellectual property. As a
people-based culture rather than a law-based culture, Western investors are watching this
case closely to see if the Chinese judiciary can be trusted to apply the law in a transparent
modern fashion. The American Bar Association (ABA) has been very effective in going
over to China and helping to educate and train Chinese judiciary about these issues and
intellectual property.
William Reed, President of Black Press International, raised the issue of China’s footprint
in Africa. China is presently involved in 35 African countries, specifically in hydropower
and railroads. “China has supported revolutionary movements in various countries since
the 1960s,” according to Mr. Winnie. “They do some programs similar to the Israelis and
host cultural programs where the Chinese would go over there and train locals and then
they would bring some of them back to China for their education.” Barack Obama’s half-
brother lives near Hong Kong, he said, and is married to a Chinese woman and speaks
fluent Chinese.
Chinese President Xi Jinping was recently in Europe for the Nuclear Security Summit
held in The Hague. While there, he met with the leader of France and signed a multi-
billion industrial agreement on joint construction of civilian helicopters, purchase of
Airbus planes, and construction in China of a nuclear waste reprocessing plant. This was
the Chinese president’s first European tour. He also visited The Netherlands, Germany
and Belgium.
Regarding China’s investments around the world, Dr. Betancourt said: “China targets
countries big and small regardless of race. What they are looking for are markets. They’re
looking for resources, minerals, cash shelter, and proven corporate structures to put their
money and corporations in. When we talk about the globalization of the economy –
China is right in the front more than many other countries.” He pointed out that in the
past few years, Chinese companies have poured billions in the UK.
Almost half of all the money invested overseas by China in recent years has been into the
energy and power sector. China’s demand for energy is expected to triple by 2030 so
countries with abundant natural resources will continue to attract the most money from
China. Dr. Betancourt, who was born in Colombia, spoke about Chinese investments in
Latin America and the Caribbean. Trade is more than $300 billion a year. In 2009, China
overtook the U.S. as Brazil’s second largest trading partner. In Colombia, trade between
the two countries has increased dramatically over the last decade. Last year China
surpassed Venezuela to become Colombia’s second biggest trading partner.
Ambassador Mungra of Suriname to the US expressed the opinion that Russia like China
should also be seen with the potential to destabilize the international system. He said that
Russian President Vladimir Putin’s recent military actions in Ukraine has destabilized
that whole region. The Ambassador asked: “What caused the fall of communism in 1989?
It was one simple thing. All human beings are born free. We want free choice. You can
put everybody in a prison but you can’t imprison the mind. Ultimately, the Communist
system will change. The people will demand reform. The system lacks
sustainability.” China, he said, is being put outside of the two most important major
trading blocs being established in the world. The Transatlantic Trade and Investment
Partnership (TTIP) and the Trans-Pacific Partnership (TPP). Since China is not in these
two major free-trade associations, China is moving towards France to see if that could be
a backdoor to the markets.
John Kukor, former Air Force intelligence officer based in Japan, expressed concern over
recent announcements that the U.S. plans to relinquish federal control over the
administration of the Internet, and the possible security issues this represents.
Ambassador Mungra said the solution to the current world state of political and military
tensions is “collaboration and cooperation between people, groups, and nations. As long
as we talk with each other, dialogue and cooperate, we can solve these problems.”
The UPF believes, according to Dr. Betancourt: “The Chinese have to learn from
America and from Europe how to live according to the rules of international engagement, and if they don’t play by the rules, then there will be consequences.” China is a nation of
1.4 billion and has a middle class of about 300 million. In fifteen years, the Chinese
middle class is projected to reach 800 million.
It is critical that: “China be respected. It is important to look at China not as a junior in
foreign policy. We cannot treat Russia or China or Brazil or Mexico and countries that
have a certain bulk of power as juniors in foreign policy as the U.S. used to do or has
been accustomed to doing. These nations have to be coached gently to show that it is in
their interest to play according to international rules.”
Mr. Winnie said: “China must continue to take people out of poverty. There are large
numbers of educated young people who were schooled abroad. When they come back
home, their desire is to be an entrepreneur. The government figured out early on a way to
keep these people happy. The way to keep them in the system is to keep them content
with the government, so they offer them an entree into a circle and a network of influence
where they can develop contacts to make money. This circle of influence is the Chinese
Communist Party. In this way, the Communist Party found a way to multiply itself with a
new generation of young entrepreneurs.
Dr. Betancourt mentioned about problems within the system in America. “The value
system needs to be reinvented because trust in the political and financial system has been
eroded. Without trust nothing functions properly. Behind any transaction there is a value
system.” Popular opinion says the 1.4 million bankruptcies declared five years ago is the
fault of the 1 percent, the super rich, who own and control America. The UPF position, he
said, is that the values that under gird our way of life should be identified as everlasting.
“Universal values will give backbone to the processes – political, economic, military, not
temporary changing principles.”
Amb. Mungra recounted the story of former prime minister Lee Kuan Yew, known as the
“Father of Singapore.” He made sure that the government used good management
techniques. Mr. Lee said: “If you believe that men should be free, then, they should have
the right of free association, of free speech, of free PRESS.” The ambassador emphasized
the need for collaboration particularly in the face of a common enemy.
Regarding the issue of corruption in China, according to Mr. Winnie, they understand
that “if they are perceived as a country where corruption takes place,” then foreign
business will stay away. He told the story of a government official who was caught taking
a bribe, but because he admitted to the infraction, instead of getting a prison sentence, or
worse, he was demoted in terms of social status and prestige within the community.
Chinese President Xi Jinping has declared fighting corruption and graft a priority for his
administration.
Barbara Moseley-Marks, a Virginia Realtor, and coordinator for the Virginia Parents’
Day Alliance (VAPDA), focused on the moral ramifications of trust. “To solve all these
different problems,” she said, “the element of trust is crucial regardless of which
economic system is used.” She described it as the basis for any relationship, whether at the individual, national, and even world levels. “Trust,” she said, “means I can rely 100%
on something. For example, I trust my husband, my family, and my church. God is my
trust.”
Mr. Winnie, who serves as Executive Director of the National Wrestling Coaches
Association, gave an example how nations can come together. When wrestling was
dropped from the Summer Olympic Games, an unlikely alliance of nations came together
-- USA, Cuba, Russia, China, and Iran -- to seek its reinstatement. Like the historic 1971
“ping-pong diplomacy” between China and the U.S., the sport of wrestling is a form of
soft diplomacy that builds friendships and trust. It can be compared to what Michelle
Obama accomplished in her recent trip to China and visit with her counterpart, Chinese
First Lady Peng Liyuan.
Dr. Betancourt, quoted UPF Founder, Rev. Moon, on the subject of trust. Humans have
what Rev. Moon calls “fallen nature,” which is the sinful nature that came about due to
the Fall of Man as told in the Bible, as opposed to “original nature,” which is
humankind’s nature prior to the Fall. It is the difference between self-centeredness vs.
unselfishness. He believes that with time and God’s providence, it is the destiny for all
individuals and nations to live altruistically and be what the Bible says, “In the image and
likeness of the Creator.”
Amb. Mungra summarized the primary issue of the forum: “The major challenge, issue or
problem in today’s world is the lack of trust.”
Forum participants agreed that trust building measures for cooperation and dialogue are
needed in diplomacy. In a previous generation, U.S. foreign policy was based on the
balance between diplomacy and power, but in today’s world, diplomacy has been
subordinated to power.
In Suriname, teachers are required to teach children to respect cultural diversity and
tolerance for others who may be different. Through international exchanges and
technology, cultures can come closer. “Ignorance and fear are the great enemies,” the
Ambassador said.
China’s actions near the South China Sea are a cause for concern, but out of this crisis,
new unlikely alliances and opportunities are emerging. Vietnam along with the
Philippines wants the U.S. to come in and help resolve the situation. The Chinese are
starting to get the message. We should not try to isolate or ignore them; on the contrary,
the West needs China particularly to keep the government of North Korea in line. They
have to be pushed gently by the international community to live according to
international rules, the United Nations Charter, which protects not just the rights of
individuals but the rights of nations. It is important that the U.S. and our allies sit down
with China on an equal footing even if it doesn't like Chinese behavior, and likewise with
Russia and even North Korea. There is a greater purpose at work here.
Minister Gupta, a former Government official from India to Afghanistan reminded the
attendees that, according to Hinduism, “we should unite together and protect ourselves.
There should be no hatred among ourselves. We are one family under God. We make big
peace with love and affection. That is the message of UPF. If we want to win the heart of
China we must give them peace. Peace comes from a heart, mind, and soul. It cannot be
imposed upon anybody. There is a Hindu prayer for peace: Oh God, lead us from the
unreal to the Real. Oh God, lead us from darkness to light. Oh God, lead us from death to
immortality. Shanti, Shanti, Shanti unto all.”
Rev. Moon said: “My peace plan starts from the level of the individual. First we must
find peace with God, then peace with our fellowman, and finally we can secure world
peace.”
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“The Role of China as a Partner for Economic and Political Stability in Asia and the
World”
Host: Dr. Antonio Betancourt - Director, UPF Office of Peace and Security Affairs,
Washington, DC
Moderator: Ralph Winnie Jr., Director of Global Business Development and the Eurasian
Business Coalition’s China Program
Attendees:
Hari Bindal - President, American Society of Engineers of Indian Origin
Dr. Ray Brogan - Adjunct Psychology Professor, Kaplan University
Jan Duplain - Embassy Liaison, Office for Trade Promotion, Ronald Reagan Building
and International Trade Center
Prof. Diane Falk - Research writer and editor
Min. Amar Nath Gupta – Former Government official from India to Afghanistan; and
Founder, Rajdhani Mandir Hindu Temple
Ms. Sunita Gupta - Capitol Hill Hindu Temple
John Kukor – Former U.S. Air Force Intelligence Officer
Barbara Mosely-Marks - Founder/Coordinator, Virginia Parent’s Day Alliance
H.E. Subhas Chandra Mungra - Ambassador, Embassy of Suriname
William Reed - President, Black Press International
Dr. Mark P. Barry - Advisor, UPF Office of Peace and Security Affairs (Observer)
Dr. William Selig - Deputy Director, UPF Office of Peace and Security Affairs,
Washington, DC
