The Third Revolution: Xi Jinping and the New Chinese State by Elizabeth C. Economy is an interesting book about China in recent years under Xi Jinping - focusing on a few areas of China study, and ending in policy advise for the United States. The book focuses on Chinese internal politics, the Internet, innovation, the economy, the Environment, and foreign policy. China's internal politics are certainly different from those in the West, and Economy criticizes China heavily for its human rights record, looking at the detention of dissidents, and Party control over the media. Economy also looks at the expanding field of governance in this section. China is critical and wary of foreign NGO's and their political agenda (not wholly unfounded), and has taken steps to curb foreign influence in internal politics. China has also instituted a wide range of reforms targeting corruption, tax evasion, and the attitudes of party bureaucrats and officials. Some reforms Economy sees as positive; the rule of law is expanding, a court system has been set up in recent years that is not fully subordinate to the party, but to the Chinese constitution. Chinese efforts to reduce corruption have targeted both "Big Fish and Small Minnows" in its quest to end corruption in the party - a huge source of social discontent. Economy is largely skeptical of gains in the positive changes in recent years, criticizing corruption efforts as political crackdown, and bemoaning CCP oversight over multinational companies trying to operate in China.
On the Internet front, this section covers China's construction of its Great Firewall - a term used to describe China's increasingly sophisticated control over its internet realm. Activism in China often comes in the form of popular bloggers, videos, and chat rooms where people collectively complain, shame, and post scathing photos of wrongdoings. China sometimes utilizes these areas to crack down on real issues, but oftentimes will instead close down discussion. China is closely partnered with Internet companies in the country, as requirements to operate specify CCP oversight of internet policies. Therefore, China can easily monitor discussion, shut down dissent, and arrest those responsible for speaking out of turn. As with many initiatives in China, massive improvements have been made to internet speed, cost and technological prowess, but freedom of speech is closely controlled by the Party.
The innovation section charts the meteoric rise of business in China. One of China's main goals of this decade is to increase the ease of doing business in China, and to encourage the growth of high tech industries and services. This has been largely successful in many ways. Chinese phones, infrastructure development and consumer goods were once known for their poor quality, but are increasingly catching up, and in some cases overtaking, Western and Japanese competitors. China's focus on innovation has seen the easing of bureaucratic restrictions on small businesses, government support for numerous initiatives, and a focus on increasing the quantity and quality of independent think tanks and Universities. Economy notes, however, that while China is succeeding in its innovation drive, their is little invention at hand. China is not usually the source of new inventions, and this is due to the restrictive government policies in place on education. Universities need to teach certain courses, textbooks are censored for content critical of state initiatives, and businesses and think tanks are closely monitored and controlled by oversight bodies. All of this discourages individual and critical thinking, and discourages new ideas and concepts.
In the economy, Economy notes the massive rise in income levels in China, as well as the huge decrease in numbers of those living under the poverty line. China is prioritizing a shift away from primary and secondary industries, moving into high tech production and services, as well as trying to build a strong consumer market. China's ambition is to see its currency, the Renminbi, become a choice currency for global reserves. This requires China to liberalize its trading policies, and continue to promote ease of business, tax reform, and financial stability and oversight. These are all initiatives that are in the works, but with that particular Chinese policy flair of state oversight, cautious exploration of reform, and top down control. Even so, China has been largely successful in moving forward on its economic objectives, boosting domestic income, increasing its standing in global economic metrics, and improving the quality of lives, businesses and consumption. However, numerous negative externalizes are present. Corruption, of course, is one of them. The environment, however, is the big one.
The Environment in China is in dire straits in many ways. Particulate matter in the atmosphere is extreme, rivers are polluted to the point of being untouchable, and smog and pollution are common in all major Chinese cities. This is because China continues to be heavily reliant on coal as a source of energy, due to its lack of oil reserves. Shale exists, but usually in arid areas, meaning water has to be brought in from afar - and of course this sector is not clean itself. China is beginning to embrace environmental technology and policy to counter these issue - considered by domestic Chinese citizens to be one of the biggest issues they face. This public unrest over environmental concerns means the party is taking it seriously. Policies have been put in place to increase the accuracy and stringency of EIA (environmental impact assessments). Inspectors are being hired in droves to ensure compliance from Chinese manufacturers. And of course, massive amounts of money are being poured on to update Chinese power infrastructure away from coal, and toward natural gas and renewables. Although China remains polluted, particulate levels in the atmosphere have dropped by a significant percentage. Hurdles do remain, however. Corruption, ignoring policy, and cheating all remain huge issues for the CCP to tackle in terms of environmental compliance.
In foreign policy, Economy discusses China's Belt and Road Initiative (BRI) and the conflicting viewpoints on China's ambitions. Some say China seeks to upend the global order to shape the world in its own image, and some say China just seeks regional stability and the ability to develop both its own state, and those of its regional neighbours. Both sides probably have a point. China is increasingly assertive. It has built a naval base in Djibouti, and rumors abound of potential bases in Sri Lanka, Pakistan and Cambodia. The BRI seeks to expand China's market reach into Central Asia, ensure market accessibility in its neighbours, and protect its supply lines from potential blockades. The BRI is often seen as a signal for shifting geopolitical control - moving from the US, to a multipolar world. This is further compounded by China's creation of the Asian Infrastructure Investment Bank (AIIB), and China's growing influence in global institutions like the World Bank, IMF, and Asian Development Bank (ADB). China is increasingly assertive in its own backyard as well - its movements in the South China Sea to militarize its claims and deny access to competitors and threats, is a massive step away from China's old Peaceful Rise motto. This has rightly put both neighbours and competitors on edge, and blunted China's ability to engage in soft power politics. China seemingly seeks to export its political model elsewhere - for example, thousands of African government workers are trained in Chinese schools every year. China has also opened Confucius Institutes across the globe, seeking to expand cultural connections and improve its image. Economy argues China needs to improve its image by cleaning up its domestic political situation - becoming more open, allowing freedom of expression, and building positive relations with its neighbours.
Economy's book is interesting, if a bit blunted. Economy often offers information by stating that "..some people in China express that..." without attributions, or even sourcing. This makes it difficult to determine whether information is being withheld for the safety of the source, or if the source has been flubbed up a bit. Clearly Economy does not agree wholly with the Chinese development model, and cautions the US to check its rise by allying with Asian partners (India, Vietnam, Australia etc.), constraining Chinese assertiveness, encouraging liberal economic and social ideals, and so on. While these are good points, and often offered concisely, the lack of sourcing on facts detracts from the authority of the recommendations. Further, I believe the book is often bent on a negative track to fit into the bias. Oftentimes, successes are overlooked or downplayed (fighting corruption hurts businesses is a point in this book?). Even so, these two criticisms are slight. The policy perspective is excellent here, and Economy's voice is authoritative on the subject. This book was interesting, and a good read for China watchers and those looking for perspective on China's modern politics.