Relations with Neighboring Countries, Neighboring Region and China’s Neighborhood Environment

Zhang Yunling

The Chinese government released the Outlook on Chinas Foreign Policy on Its Neighborhood In the New Era in October 2023， which explicitly stated that “the neighborhood is where China survives and thrives and the foundation of its development and prosperity”. Such a high positioning of the neighborhood indicates that China attaches great importance to its neighborhood and is resolutely determined to deal well with it. The neighborhood relationship features a dual structure： one is the state-to-state relations， meaning the bilateral relations between China and its neighboring countries; the other is regional relations， meaning relationship between China and its neighboring countries as a coexisting region， which collectively make up the overall neighborhood environment. Fostering a sound neighborhood environment is imperative to Chinas security and development.

Properly Handling Complicated Relations with Neighboring Countries

Due to factors of history， politics， economy and culture among others， Chinas relations with its numerous neighboring countries are complicated. With long-devoted efforts after the founding of the Peoples Republic of China， China has gradually normalized relations with its neighboring countries. As of now， China has resolved historic boundary issues with 12 neighbors on land through negotiations and signed the treaties of good-neighborliness and friendly cooperation with nine neighboring countries. Based on this， China continues to improve and deepen its relations with neighboring countries. The relations are also changing and evolving， which is manifested by stronger economic bond between China and its neighboring countries as China becomes the largest or most important trading partner to its neighboring countries and offers them irreplaceable and practical benefits. Such close economic ties further serve as a fundamental factor contributing to the stability of Chinas relations with neighboring countries. In reality， due to existing disputes and other factors， Chinas relations with certain countries have also suffered occasional setbacks and even conflicts.

In general， three categories of factors affect Chinas relations with neighboring countries. The first are territorial and maritime disputes， the second are historic issues， and the third are political and other conflicts. These three factors are independent and yet interconnected. Among them， territorial and maritime disputes are the most complex and sensitive issues to deal with. An example is the China-India territorial dispute， which is a historic issue. Though the two sides have established dialogue and consultation mechanisms and reached basic consensus on stabilizing the boundary， Indias occasional provocation of conflicts sometimes result in tensions or even confrontations with China， severely affecting the bilateral relations. With extensive common interests and broad space for cooperation， China and India have arrived at the fundamental consensus to avoid escalation of the situation， peacefully resolve disputes， and stabilize the overall relationship. Therefore， in times of conflicts， the two sides are ready to sit at the table for dialogue and negotiation， reach agreement to deescalate the tension， and minimize further impacts and consequences.

The disputes over islands， reefs and waters are seen in the East and South China Seas. In the East China Sea region， the dispute between China and Japan over the Diaoyu Islands and adjacent waters is also a historic issue. In the South China Sea， besides China and ASEAN， the parties to the disputes， multiple players are engaged. With the consensus of stabilizing the overall situation， China and ASEAN have issued the Declaration on the Code of Conduct on the South China Sea （DOC） and held consultations on the “Code of Conduct in the South China Sea”. Although ASEAN member states are obliged to observe the agreement， ASEAN lacks the binding force over its members. Shift of power in the Philippines in recent years has led to changes of policies and further caused conflicts and confrontation. Pulling forces outside the region into matters of the South China Sea even further complicated the situation. Under such circumstances， China enhances negotiation and cooperation with ASEAN to stabilize the situation and also engage in dialogue with the Philippines in pursuit of approaches that avoid the escalation of confrontation and maximally maintain the overall stability of bilateral relations.

As to the impacts of politics and other conflicts on bilateral relations， it sometimes features an emergent occurrence involving multiple reasons and consequences. In China-Japan relations， Japan occasionally strains the relations by taking insidious moves to understate and modify its history of aggression. In China-South Korea relations， dramatic changes of policies adopted by new governments lead to different positions with China on certain issues， which imposes further impacts on bilateral relations. The China-Myanmar relations is affected by the domestic politics of Myanmar. The ongoing turmoil in Myanmar， especially the war breaking out in areas bordering China， has exerted adverse impacts on the bilateral relations. Firmly upholding the principle of non-interference in other countries internal affairs and in the face of sudden changes of regimes or policies in its neighboring countries， China is committed to expanding consensus through dialogue， pursuing concrete measures to improve bilateral relations and avoiding major backlash in bilateral relations.

Fostering stable and sustainable bilateral relations is the priority of Chinas neighborhood diplomacy. At present， despite of conflicts and disputes between China and certain countries， the overall situation is stable and controllable. Absence of conflicts between neighboring countries is quite rare across the world. The key is that， when there are conflicts， they can be eased and settled through dialogue and negotiation. Generally， China and its neighboring countries have basically reached consensus on dialogue and negotiation as approaches to alleviate and resolve disputes.

Promoting the Construction of Cooperation Mechanism in Neighboring Region

China and its neighboring countries collectively form an interconnected region of coexistence and with shared interests. Two frameworks serve as the foundation for the construction of the neighboring region： the first is the construction of regional cooperation mechanisms among Chinas neighboring countries and the second is the construction of cooperation mechanism between China and its neighboring countries. Whether it is the former or the latter， such a mechanism represents a new type of cooperation-oriented regional cooperation that is devoted to jointly creating an open， cooperative and peaceful regional environment， instead of pursuing rivalry， confrontation or enclosure. This is a significant change taking place in the region. The cooperation mechanisms among Chinas neighboring countries also offer a new platform for China to work with them， thus forming a “dual-track mechanism” combining bilateral and regional cooperation. By engaging in and jointly building cooperation mechanisms in the neighboring region， China has created a cooperation-oriented space for regional coexistence and sharing development. The main formats of regional construction are jointly building cooperation organizations， free trade zones， and cooperation mechanisms.

The Shanghai Cooperation Organization （SCO）， co-founded by China， Russia and Central Asian countries， has expanded from five founding members to nine members. The focus of cooperation has also expanded from the initial common security to a diversity of fields covering security， politics， economy and culture. Geographically， its members extend to the Eurasian region.

Association of Southeast Asian Nations （ASEAN） is a regional cooperation organization representing all Southeast Asian countries， which has established multi-level cooperation mechanisms with China： firstly， such mechanisms include China-ASEAN Free Trade Area and China-ASEAN （10+1） Cooperation Mechanism; secondly， China engages in the regional cooperation mechanisms spearheaded by ASEAN， such as ASEAN plus China， Japan， South Korea cooperation mechanism （10+3）， East Asia Summit and ASEAN Regional Forum. These mechanisms have enabled continuous expansion and deepening of regional architectures oriented by cooperation between China and Southeast Asia.

The Regional Comprehensive Economic Partnership （RCEP） is a critical regional cooperation mechanism that China engages in and promotes. The RCEP with 15 member states is the worlds largest free trade area， enabling openness， rules-based operation and cooperative development in the East Asian regional market. It provides China with an opportunity to access open and cooperative space in the regional development and to play its role in restructuring regional economy and constructing mechanisms of growth drivers.

In Northeast Asia， with opening-up policy as pillars， and building on market， China， Japan， and South Korea have developed a supply chain based on industrial division of labor and further established a dialogue and cooperation mechanisms among leaders and competent government departments. Such cooperation， which has put in place the Trilateral Cooperation Secretariat devoted to advancing negotiations over the China-Japan-South Korea Free Trade Agreement， has the feature of regional construction. This trilateral cooperation serves as the foundation for pushing forward regional cooperation in Northeast Asia. However， as a result of souring bilateral relations among other factors， the trilateral leaders meetings have come to a standstill since 2020 and negotiations on the free trade area have been put on hold. At present， all the three countries share the will and intention to overcome difficulties and resume normal operations at the earliest date. Northeast Asia is not only a center of the world economy， but also a region featuring complex relationships and intertwined contradictions. Many obstacles still remain in establishing an inclusive regional dialogue and cooperation mechanism for all countries.

South Asia established the South Asian Association for Regional Cooperation （SAARC） in 1985， which involves all South Asian countries. Being connected by mountains and rivers to South Asia， China has been proactively promoting cooperation with SAARC and has been accepted as an observer country. However， due to conflicts among South Asian countries and Indias constant vigilance and precaution towards Chinas engagement in regional affairs， no significant progress has been made in the construction of regional cooperation mechanisms.

Measures to Create a Sound Neighborhood Environment

For China， its neighborhood is of holistic feature and thus it is imperative to create a sound neighborhood environment as a whole. To this end， China has put forward a series of concepts， principles and policies. Particularly over the past decade， China has put forward such visions and initiatives as building a neighborhood community with a shared future， the principle of “amity， sincerity， mutual benefit and inclusiveness” and jointly advancing the Belt and Road Initiative （BRI）. A neighborhood community with a shared future represents both a vision and actions on building a community with a shared future for mankind in Chinas neighboring region. The community-building efforts， seen in a variety of cooperation-oriented agendas in the form of either bilateral cooperation or regional cooperation， are devoted to fostering an environment for peaceful and harmonious coexistence and win-win cooperation.

Jointly advancing the BRI is initiated and promoted by China， featuring joint efforts made by China and its neighboring countries. The efforts are dedicated to advancing policy， infrastructure， trade， financial and people-to-people connectivity， aiming to create a favorable environment for cooperation and common development. As of now， China has signed BRI cooperation documents with 24 neighboring countries and engaged in strategic coordination with ASEAN and Eurasian Economic Union. China has also promoted the establishment of the Asian Infrastructure Investment Bank （AIIB） and the Silk Road Fund to support infrastructure construction and socioeconomic development projects. The major land ports in Chinas neighboring region have been basically interconnected and with such hubs， interconnectivity is radiated and extended to a larger region. For example， the China-Europe railway express， as an international container transportation railway for China， Europe and other BRI partners， has developed rapidly. It has not only become a major channel linking China with the outside world， but also built a transportation network linking Northeast Asia， Southeast Asia， Eurasia and Europe， creating a miracle of international transportation channels supported by the government， driven by the market， and linked by strategies.

China creates a secure environment in its surrounding areas through a common， comprehensive， cooperative， and sustainable security concept and practical actions， cooperates with neighboring countries to jointly manage hotspot issues， and promotes consultation， dialogue， and peace building. For example， in the face of the tense situation on the Korean Peninsula， China has proposed the “dual-track” approach to advance the denuclearization and establish the peace regime of the Korean Peninsula in a synchronized manner as well as the “suspension-for-suspension” proposal in which North Korea suspends its nuclear missile in exchange for the suspension of large-scale military exercises by the United States and South Korea， insisting on easing the situation through peace talks. After the United States withdrew troops from Afghanistan， China actively worked for establishing a mechanism for coordination and cooperation among Afghanistans neighbors， proposed the Tunxi Initiative on helping Afghanistan with reconstruction and development， moderated the Foreign Ministers Meeting on the Afghan Issue Among the Neighboring Countries of Afghanistan， the China-Afghanistan-Pakistan Foreign Ministers Dialogue， and the first Foreign Ministers Dialogue between Afghanistans Neighboring Countries and the Interim Government of Afghanistan， providing assistance for the stability and development of Afghanistan. As Myanmar was fraught with turbulence and conflicts， China actively mediated and facilitated peace talks between the Myanmar military and local armed groups who later reached an agreement on a temporary ceasefire and maintaining dialogue. China has played a constructive role in supporting political dialogue to prevent further escalation of conflicts， achieve peace processes in northern Myanmar and restore the countrys social stability.

China also fully utilizes various cooperation mechanisms to create a secure environment. For example， in order to maintain stability in the South China Sea， China and ASEAN issued the DOC and later proposed guidelines and joint statements for implementing the Code of Conduct in the South China Sea （COC） ， as well as advancing consultations on the Code of Conduct in the South China Sea. China has jointly built a security community through the Shanghai Cooperation Organization， promoting the SCO to formulate such documents as the Shanghai Convention on Combating Terrorism， Separatism and Extremism， the Agreement on Regional Anti-Terrorist Structure between the Member States of the Shanghai Cooperation Organization， the Convention of the Shanghai Cooperation Organization against Terrorism， the SCO Convention on Countering Extremism， and the Agreement on Cooperation in Ensuring International Information Security between the Member States of the SCO. A multi-level cooperation mechanism has been established with the participation of relevant departments， including the meeting of the SCO National Security Council Secretaries， the meeting of Public Security and Internal Affairs Ministers， the meeting of the Supreme Court Presidents， the meeting Prosecutor Generals， the meeting of National Defense Ministers， the meeting Chiefs of General Staff， the meeting of Anti-Drug Department Leaders， and the meeting of Border Defense Department Leaders. Measures have been adopted to promote defense security， law-enforcement security， information security and capacity building. By hosting the SCO Defense and Security Forum and holding the annual SCO “Peace Mission” joint anti-terrorism military drills， the SCO has created a regional environment of cooperative security and common security.

Creating a favorable neighborhood environment relies on Chinas own efforts and capabilities as well as consensus and joint efforts with neighboring countries. China has not only put forward but also worked on a series of initiatives. Since the neighborhood environment is jointly owned by China and its neighbors， the creation of a sound neighborhood environment requires joint efforts from all countries to reach consensus through dialogue and consultation and take coordinated and cooperative actions to shape a sustainable neighborhood environment enjoying peace， development， and win-win cooperation.

Challenges Faced by Chinas Neighborhood Environment amid Changes Unseen in a Century

As the world is undergoing dramatic changes unseen in a century， some new changes also occur in Chinas relations with its neighbors and in the neighboring region， posing new challenges to fostering a favorable neighborhood environment. The most substantial change in Chinas neighborhood environment is that Chinas comprehensive strength is growing rapidly. As the worlds second-largest economy， China injects momentum into the development of its neighboring region. As China gains more economic strength， its comprehensive strength， including military power， technological innovation， political influence， and operational capabilities， has also improved significantly. China is committed to peaceful development. As one of the builders of the current world order and having benefited from it and defended it， China does not seek to change the current international order， much less reinvent the wheel by creating a new international order. China will work together with all the countries in the world to advance the building of a community with a shared future for mankind and jointly create a peaceful， secure， prosperous and progressive future. However， some countries are still anxious and vigilant about the rapid growth of Chinas comprehensive strength， thus refrain from or compete with China-proposed initiatives， and even adopt hostile policies that shape negative public perception and public opinions against China. Therefore， there emerges a phenomenon of “being close yet not friendly”.

The biggest risk amid such changes is misunderstanding and misjudgment. Considering its economic volume and development potential， Chinas comprehensive strength will embrace broad space for further improvement. Under such circumstances， on the one hand， China should fully understand the legitimate concerns of neighboring countries， build trust and clear up misgivings through dialogue， consultation， and cooperation， remain committed to the philosophies and policies of neighborhood diplomacy of “amity， sincerity， mutual benefit and inclusiveness” as well as “friendship and partnership”. On the other hand， Chinas neighboring countries should also adopt an objective and rational approach towards the growth of Chinas comprehensive strength and influence. While cementing economic and trade relations， they should enhance political mutual trust， jointly manage disputes and work together to build mutually-beneficial and sustainable bilateral relations and regional environment.

In recent years， the United States has positioned China as a “strategic competitor”. It has three main intentions： to contain Chinas development， to preserve American democratic values through systemic competition， and to prevent neighboring countries overdependence on China. The United States is the biggest disruptor of China and neighboring countries joint efforts to build a sound neighborhood environment. The strategic goal of the United States is very clear. It is to curtail the growth of Chinas comprehensive strength and influence， maintain its own advantageous position and influence in bilateral relations and regional order. Whether it is the Republican Party or Democratic Party being the ruling party， the United States adopts policies to contain， block and sanction China and forms exclusive mechanisms in various formats in Chinas neighborhood. In the Asia-Pacific region， the United States is implementing the “Indo-Pacific strategy”， taking China as a target for containment and blockade， and roping in regional countries to be part of such mechanisms as the Australia， the United Kingdom and the United States trilateral security partnership （AUKUS）， the quadrilateral security dialogue of the United States， Japan， India and Australia （QUAD）， the United States， Japan and South Korea trilateral cooperation， the Indo-Pacific Economic Framework. Many countries in the Asia-Pacific region have long-term relationships and direct interests with the United States， and therefore are involved in the mechanisms formed by the United States due to their special relationships or direct interests. There is a viewpoint that “East Asian countries separate politics and economy， relying on China for economy and counting on United States for security”. But the facts dont lead to such a conclusion. The intersection of multiple options is a salient feature of their external relations.

In practice， most of Chinas neighboring countries adopt a strategy of “taking an option but not picking a side”， which means that while developing relations with the United States， engaging in its initiatives and promoting cooperation projects， they also do the same with China. Even United States military allies avoid getting into a situation of decoupling from and confronting with China. ASEAN firmly upholds its centrality in foreign relations. Although some ASEAN members have joined the mechanisms built by the United States， ASEAN as a whole still maintains cooperative relations with China and stays out of United States strategic competition with China. After the United States launched the “Indo-Pacific Strategy”， ASEAN released the ASEAN Outlook on the Indo-Pacific， which called on avoiding the deepening of mistrust， miscalculation and patterns of behavior based on a zero-sum game and emphasized the necessity of preserving an inclusive regional cooperation framework， maintaining ASEANs central role in the evolving regional architecture and building “an Indo-Pacific region of dialogue and cooperation instead of rivalry”.

Unlike the United States， Chinas policies are oriented towards inclusiveness and cooperation， in efforts to foster a neighborhood environment featuring openness， development and peace. Firstly， China takes all of its neighboring countries as partners and does not refrain from engaging in dialogue and cooperation with them because of their involvement in the mechanisms initiated and advanced by the United States. Secondly， China proactively launches initiatives and cooperation projects that are open to neighboring countries and does not aim to exclude or compete with the United States. Thirdly， China maintains dialogue and communication with the United States to keep their relationship under control. Such policies prevent Chinas neighbors from being divided into blocs and diminish the impacts of the United States comprehensive strategic competition with China on the neighboring region. The policies also provide the neighboring countries with a broader range of options and prevent the so-called “strategic competition between China and the United States” becoming the theme dominating the relations among the countries in the region， thus creating conditions for a sound neighborhood environment.

The hotspot issue that poses a serious challenge to the neighborhood environment is mainly the situation on the Korean Peninsula. Currently， as both South Korea and North Korea are adjusting policies， the situation on the Korean Peninsula is undergoing drastic changes. China has always been committed to promoting peace talks and has played a crucial role in preventing turbulence and fighting in order to maintain a peaceful and stable neighborhood environment.

Generally， Chinas neighborhood is witnessing interwoven contradictions， conflicts， and hotspot issues which are subject to sudden and radical changes， making the situation extremely easy to lose control. Once the situation goes out of control， it will exert enormous impacts. Therefore， China should place prevention of escalation of hotspot issues and conflicts on top of its neighborhood strategy and foreign policy and maintain the overall peace and stability of its neighborhood by playing on its own role and enhancing cooperation with relevant parties.

2024 is the global “super election year” which will witness dramatic changes in the domestic and foreign policies of some countries. The international community is especially concerned about the possible new foreign policies to be adopted by the United States after its general election which will send shockwaves to state-to-state relations， regional and even global relations. New variables may emerge in Chinas efforts to foster a sound neighborhood environment. Faced with new changes and challenges， as pointed out in the Outlook on China's Foreign Policy on Its Neighborhood In the New Era， “When China engages with the world， it all along values good faith and good neighborliness. China was， is， and will always be a good neighbor， good friend and good partner of regional countries， and will always be a major force underpinning peace， stability， development and prosperity”.

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Zhang Yunling is President of the Institute of International Studies of Shandong University and Member of Chinese Academy of Social Sciences