CHINESE FOREIGN POLICY
4.
Since 1989, when the events of Tiananmen attracted world-wide
condemnation backed up by EC and G7 sanctions, China has been
rebuilding her international image. China's responsible and
helpful attitude in the Security Council over the Gulf War helped rebuild fences and, except for military exchanges and arms sales,
relations with most western countries are now back to normal
although there is less warmth in the relationship than formerly.
5.
China has been actively seeking commercial and economic
agreements with the newly-independent states of the former Soviet
Union. There have been rapprochements with both India and
Vietnam, although disputes about the Indo-Chinese border and
sovereignty over the Spratly (Nansha) Islands have not been
resolved and remain a potential cause of friction.
6. The establishment of diplomatic ties with South Korea in
August 1992 can be seen as both a betrayal of long-time ally
North Korea and a victory vis-à-vis Taiwan, but more important
for the future is the clear indication of pragmatic self-interest
guiding Chinese policy. South Korea is an important trading
partner total trade between the two countries this year is likely to exceed US$ 5 billion and a potentially major
source of investment.
7.
Following its success in hosting the Asian games in 1990,
Peking is making a major effort to host the Olympic Games in
2000. The Emperor of Japan has accepted an invitation to visit
China in October 1992, to mark the 20th Anniversary of the
normalisation of relations.
THE CHINESE ECONOMY
8.
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The economic reforms which now affect about all areas of
Chinese life - with the glaring exception of politics began in
1979. The pace of reform accelerated dramatically under the
premiership of Zhou Ziyang but slowed and became much more
chinapol278
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