ISSN 2786-2860

Vol. 2 No. 33
September 2022

CHINA WATCH

China’s Relations with Neighboring States and Regions: A

ZHANG Yunling

Kiadó: Kína-KKE Intézet Nonprofit Kft. 1052 Budapest Petőfi Sándor utca 11.
Szerkesztésért felelős személy: Chen Xin
E-mail: office@china-cee.eu
Kiadásért felelős személy: Feng Zhongping
 China’s Relations with Neighboring States and Regions: A

Comprehensive Perspective
ZHANG Yunling1
Member of the Faculty of the Chinese Academy of Social Sciences; Dean of the
Institute of International Studies, Shandong University

China has many neighboring countries, so its relations with these neighbors and
its surrounding regions are of special and important interest to itself. In view of this,
China puts its relations with neighbors at the top of its foreign relations, and it has
successively proposed “good neighborliness and friendship,” “good neighbors, good
partners, and good friends,” “be good to neighbors and be their partners,” “an amicable,
secure, and prosperous neighborhood,” “harmonious surroundings,” “friendship, good
faith, mutual benefit, and inclusiveness,” “building a neighborhood community with a
shared destiny,” and other such basic concepts for developing relations with
neighboring countries. Although the terms used in these concepts are different, they
basically connote the same things, i.e., relations with neighboring countries must be
well handled and developed in order to create a regional environment of peace,
cooperation, and development. These concepts are rooted in traditional Chinese
ideology and culture, and are also based on new understanding and positioning
regarding developments in the modern world.
Of course, since China has so many neighbors and complex regional
relationships, it is not an easy task to promote the building of peaceful, cooperative, and
development-oriented neighborly relations and order. Looking back, there has been
much turmoil, conflict, and war in China’s environs. After the end of World War II,
China’s surrounding areas have undergone difficult adjustments and reconstructions
while gradually moving towards stability, peace, and development. On the whole,

1
This article was originally published in Dangdai shijie (Contemporary World), 2022
(4):10-14.
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China’s surrounding areas have generally been developing for the better. China has
normalized relations with neighboring countries, solved most of the problems left over
from history, and gradually developed cooperation-oriented bilateral and multilateral
relations, especially in the economic field, where it has formed a network of
interdependent linkages. China has become the most important economic and trade
partner of a large majority of its neighboring countries, with whom it has established
various forms of partnership. Negotiation and cooperation have become the mainstream
approaches toward promoting the development of bilateral and regional relations.
Nevertheless, due to the combined influences of adjustments in the international
pattern and the pandemic of the century, some new changes have taken place in China’s
surrounding regions; new disagreements have emerged, and new challenges are being
faced. Considering that these regions are each composed of multiple elements and
affected by multiple factors, we need to observe and analyze them from a
comprehensive perspective. Generally speaking, the factors affecting our surrounding
regions include mainly bilateral relations, sub-regional relations, and external forces.
The three types differ in terms of nature and influence, and are yet interrelated.
Bilateral Relations: The Basis of China’s Relations with Neighbors
With respect to bilateral relations, the overall situation of China’s relations with
neighboring countries is basically stable, but there have also been some new changes
in recent years. While developing relations with China, some countries have taken
measures to deal with China, trying to build multiple balancing and restrictive
mechanisms, while others have emphasized preventive actions and restrictions on
China.
Among our neighbors, India has given prominence to its competition with China.
Therefore, India’s foreign policy has increased restrictions on China, and India has
directly participated in the construction of the US sphere of strategic competition
against China, actively supporting the US “Indo-Pacific strategy,” participating in the
Quadrilateral Security Dialogue (QUAD) with the United States, Japan, and Australia,
and so on. Given this circumstance, the few of the bilateral conflicts between China and
India have been increasing, such as the territorial disputes over the China-India border.
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From time to time the relationship between the two sides has been tense or even in
conflict, and this has adversely affected the development of bilateral relations and
regional stability.
The tendency of Japan to take dealing with China’s rise as the dominant direction
of its foreign policy is becoming increasingly evident. On the one hand, Japan has
cooperated more closely with the United States to build multiple restriction
mechanisms based on comprehensive strategic competition with China, and whether
these mechanisms are in the security or economic field, Japan is participating more
actively and deeply. On the other hand, Japan is actively promoting security
cooperation with some countries in order to help them enhance their so-called
“confrontation” capabilities, which are clearly aimed at China. In particular, Japan’s
provocations and interventions in the Taiwan issue will inevitably affect the overall
situation of bilateral relations.
On March 10, 2022, after the dust of the general election in South Korea had
settled, the candidate of the People Power Party, Yoon Suk-yeol, was elected as the
new president of South Korea. The new South Korean president’s policy orientation
differs from that of the Moon Jae-in administration, since he not only expressed his
desire to strengthen relations with the United States, support the “Indo-Pacific
strategy,” and adopt a tough policy toward North Korea, but also declared that he would
“not yield to pressure” toward China. This may lead to new variables in China-ROK
relations. If not handled properly, they would not only affect bilateral relations, but may
also lead to instability on the Korean Peninsula.
Regarding the direction of China-India relations, we need to see that India still
attaches great importance to its relations with China and strives to stabilize the
fundamentals of our bilateral relationship. While we maintain contact and cooperation
in the bilateral and international areas, India is not in full agreement with the US
approach. Even though China and India have huge differences in politics, history,
culture, and so on, as well as territorial disputes left over from history, as two of the
major developing countries in the world, they have inherent links of interest and a
bottom-line awareness of maintaining relations. It is feasible for China and India to
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avoid confrontation and stick to the general direction of dialogue and cooperation,
which serves the interests of both sides.
As for Sino-Japanese relations, while we see the disagreements, we should also
see the fundamentals. Japan and China have close ties of interest, so Japan is reluctant
to see a breakdown in relations with China, let alone a full-scale confrontation. China
has always attached great importance to its relations with Japan, and a stable
relationship with Japan is in its own interests. Therefore, despite the complexities of
the relationship, the window for dialogue, consultation, and cooperation between the
two sides is always open.
The relationship between the new South Korean government and China needs to
be watched further. There are three crucial factors in South Korea’s relations with
China: first, its interest relationship with China. For South Korea, China is not only a
big neighboring country, but also an important market that it cannot part from. Second
is the maintenance of stability in the Korean peninsula. On the Korean peninsula, any
aggressive confrontation that excludes China could have disastrous consequences.
Third is South Korea’s relationship with the United States. Relying on the United States
and opposing China will damage its relations with China, which would not be good for
South Korea. Therefore, judging from the previous changes of political parties in South
Korea, the China-South Korea relationship will probably not be reversed.
Sub-regional Relations: The Growth Point of China’s Relations with
Neighbors
The influence of sub-regions on China’s periphery has increased, and sub-
regional cooperation has become an important factor in stabilizing and improving the
situation around our periphery. China has participated in all the various forms of sub-
regional cooperation mechanisms in peripheral regions—this is an important
development of China’s relations with its surrounding regions, since these relations no
longer need to rely solely on bilateral relations. China has successively participated in
the Asia-Pacific Economic Cooperation (APEC), promoted the establishment of the
Shanghai Cooperation Organisation (SCO), actively participated in ASEAN + 3 (i.e.,
China, Japan, and South Korea), the ASEAN-China Dialogue cooperative mechanism,
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and the East Asia Summit (EAS). We have also cooperated with ASEAN to build a free
trade area, presided over the feasibility study for the East Asia Free Trade Area
(EAFTA), promoted the negotiation and entry into force of the Regional
Comprehensive Economic Partnership (RCEP), participated in and promoted the
China-Japan-Korea dialogue mechanism as well as the negotiation for a trilateral free
trade area, actively participated in the ASEAN Regional Forum (ARF), the Asia-Europe
Meeting (ASEM), and the Conference on Interaction and Confidence Building
Measures in Asia (CICA). We have also participated in the South Asian Association
for Regional Cooperation (SAARC) as an observer.
As a participant in the sub-regional cooperation mechanisms mentioned above,
China can, on the one hand, engage in negotiation and building together with other
countries, and on the other hand, deepen relations through practice and cooperate on
building a peaceful and developing order in surrounding regions. Of course, there have
been twists and turns in the development of some cooperation mechanisms. For
example, APEC has been hindered by a US policy shift. When the Obama
administration promoted the Trans-Pacific Partnership (TPP), which excluded China,
it blocked the process of promoting the establishment of the Free Trade Area of the
Asia-Pacific (FTAAP) under the APEC framework. The main focus of both the Trump
and Biden administrations have been to promote the “Indo-Pacific strategy,” so they
have been less interested in participating in the APEC process. The East Asia Summit
has attracted the participation of the United States, India, and Russia. The original
intention was to build a framework to support regional cooperation in East Asia and
promote broader cooperation. However, due to the constant provocation of disputes by
the United States at the meeting, the mechanism did not function as desired.
It is worth pointing out that the RCEP successfully completed its negotiations and
entered into force on time, thus becoming a prominent achievement in East Asia’s
deepening openness and cooperation; it will be conducive to the recovery and
development of the regional economy in the post-pandemic era, and is already playing
a positive role in the improvement of the RCEP region. The SCO, meanwhile, is a
cooperative structure including China, Russia and Central Asian countries. Through a
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complex mechanism that includes member states, observers, and dialogue partners, the
SCO’s role in stabilizing the regional situation and enhancing exchange, understanding,
and cooperation among member states has been continuously improved, and it has
become an important support for maintaining sound development on China’s
surrounding region. The diversity of the regions around China determines the multi-
level and multi-form characteristics of regional cooperation. Although the various sub-
regional cooperation mechanisms differ substantially in terms of their development,
they all share a common feature, i.e., they are cooperation-oriented, non-
confrontational groups. Therefore, the development of sub-regional cooperation is
favorable to China in building a good surrounding environment. Despite some complex
changes, the overall situation in the area of sub-regional cooperation has not changed.
Involvement of External Forces: The Destabilizing Factors in China’s
Relations with Neighboring States
The negative impact of the intervention of foreign powers, of which the United
States is representative, on China’s surrounding regions continues to rise. In recent
years, US policy towards China has undergone major adjustments. The Obama
administration launched an “Asia-Pacific rebalancing” strategy against China, while
the Trump administration adopted a confrontational policy of combining sanctions,
suppression, and containment against China; it launched an “Indo-Pacific strategy” that
aimed to contain China. After Biden took office, he basically inherited the Trump
administration’s China policy orientation but made major adjustments in terms of
methods, the most important of which was to propose a comprehensive strategic
competition policy toward China. This mainly includes:
(1) Restricting China’s development and competitiveness, imposing more
targeted restrictions and containment measures on China, and selectively “decoupling”
in terms of technology and supply chains;
(2) Expanding and strengthening the “Indo-Pacific strategy,” implementing
the QUAD mechanism and the “trilateral security mechanism” of the United States,
United Kingdom, and Australia (AUKUS), and formulating an Indo-Pacific economic
framework that does not include China;
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 (3) Instructing more countries to intervene in the South China Sea issue,
organizing large-scale military exercises, and strengthening relations with countries
that have disputes with China;
(4) Exacerbating the Taiwan issue and roping in its allies to join in
expanding relations with the Taiwan authorities.
A series of policy measures by the United States have had a greater negative
impact on China’s surrounding regions. The United States continues to construct a so-
called “united front” against China involving allies, quasi-allies, and so-called
trustworthy, friendly countries; it builds a technology and supply chain that does not
include China, and it launches projects to target and weaken China. The United States
and its allies have also increased aid and pressure on countries in China’s neighboring
regions to support or participate in their China strategies, policies, and actions. Under
this circumstance, although most countries in our neighboring regions have stated that
they will not choose sides between China and the United States, it is difficult, in many
real-world choices, to escape from the shadow of “choosing sides.” For example, Nepal,
which has always been friendly with China, finally approved a compact with the
Millennium Challenge Corporation (MCC), so that the United States has gained special
influence in Nepal by providing aid funds. With the intervention of external forces,
such as those from the United States, some hotspot issues have heated up and
disagreements have become conspicuous. These have had a complicated impact on
China’s surrounding regions.
Three Levels of Understanding on China’s Relations with Neighboring
Countries in the New Era
A deep understanding and thorough grasp of the relationship between China and
neighboring countries in the new situation can be reached by approaching the issue on
three levels. The first is “China and its surrounding regions,” that is, starting from China
and asking how to position and develop neighboring regions. The second is “the
surround regions and China,” that is, asking how neighboring countries position and
develop their relationships with China. The third is to take China and its neighboring

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countries as a whole. That is, China and its neighbors together form a geographic region
of coexistence and symbiotic connections and interests; China is an organic part of it.
The first is positioning and developing surrounding regions from China’s
perspective. As mentioned earlier, China’s position is clear, and it works hard to uphold
it. In the regard, an important change is that, as its overall strength has improved,
China’s ability and influence to actively shape relations with its neighbors and
surrounding regions has also improved, and the cooperation and interaction between
China and its neighboring countries has been strengthened. In the Belt and Road
Initiative, for example, China has cooperation with neighboring countries through its
own promotion and investment, which has greatly improved development in
surrounding regions.
The second concerns neighboring countries’ positioning of their relations with
China. As these countries become increasingly connected with China, they pay more
attention to their development of relations with China and give priority to stabilizing
and enhancing those relations. Some countries, despite having differences or disputes
with China, will still try their best to maintain the overall stability of their relations with
China, based on a consideration of practical interests and long-term relations, especially
common interests of economic and trade exchanges with China. In surrounding regions,
not many countries have really adopted strategies and policies against China. At the
same time, some of the differences in bilateral relations will be eased by promoting the
development of sub-regional cooperation mechanisms, and insisting on maintaining
and developing dialogue and cooperation with China to maintain and develop the
region’s overall interests. For example, the establishment of a free trade area between
ASEAN and China, the issuance of a joint declaration on the South China Sea issue,
and the promotion of negotiations on a “Code of Conduct in the South China Sea” have
all received positive responses from China. All of these have played positive roles in
promoting the relationship between ASEAN countries and China.
The third approach is based on a two-way understanding of “China and its
surrounding regions” and vice versa—the surrounding regions as a whole. In this
whole, China and its neighbors comprise a community of coexistence and mutual
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benefit, and they should watch and help one another to create a regional environment
that benefits all. Especially in the era of globalization and regional development,
China’s interests and those of its neighbors are more closely linked than ever before.
Therefore, there is an internalized common understanding and willingness to negotiate
and cooperate in creating and maintaining the regional environment. As for the
participation of external powers, each country also has a balanced choice based on its
own interests and common regional interests.
Of course, the region is not closed or exclusive. Every country has a variety of
external relations, and the participation and involvement of external forces also have
different backgrounds, interests, and methods. Therefore, our surrounding regions as a
whole are driven and influenced by complex factors. To prevent damaging the overall
environment of these surrounding regions, the appearance of faulty orientation, or
manipulation by certain forces, all countries will necessarily have to exercise self-
restraint, as well as maintain joint coordination and effort, carried out, on the one hand,
through bilateral relations mechanisms, and on the other hand, through sub-regional
cooperation mechanisms.
The Russia-Ukraine military conflict and the complex international situation that
it has caused have provided an important warning on the need for a profound
understanding and construction of surrounding regions. In the face of great changes,
the likes of which have been unseen in a century, it is necessary to see that there are
many difficulties and challenges in building a sustainable environment for peace and
cooperation in surrounding regions. This requires not only huge efforts from China
itself, but also the joint efforts of China and neighboring countries to build consensus
through various means and take actions that meet each other halfway. China’s own
development requires an external environment of peace and cooperation. It does not
want chaos and war in surrounding regions, but sincerely hopes to build peaceful
coexistence and cooperative development there. Meanwhile, China does not seek to
establish a hegemonic position in its surrounding regions, much less use its growing
strength to build a regional order dominated by China. Creating and maintaining a good
environment around its periphery would be of great significance for China, not only to
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maintain and extend the period of strategic opportunity, which is aimed at realizing its
great national rejuvenation, but also to promote the building of more just and reasonable
international relations and international order.
China is following the path of peaceful development and becoming a new type of
great power, and its surrounding regions comprise the first perceptual level. Some
neighboring countries are worried that China, as a country whose overall strength is
rapidly increasing, will expand its own interests, strengthen its own influence, and use
force or even military might to resolve disputes. At the same time, with China’s rise in
the background, various forces will increase their involvement and intervention, or
create an unfavorable public opinion environment for China, portraying China as a
challenger who “doesn’t follow the roles” and “changes the existing order.” In
particular, countries having disputes with China may exert pressure on China by
intensifying the disputes, creating tension, and pulling in help from others. As it faces
the different mindsets of its neighbors, China needs even more to strengthen its
interaction and exchanges with them, enhance understanding, promote cooperation, and
jointly promote their development in a better direction.
Our periphery is of first importance—this is China’s long-term diplomatic
orientation. What I call “first importance” is embodied in three “priorities,” namely,
priority consideration, priority input, and priority handling. In recent years, whether in
terms of external strategic layout, resource investment, or the handling of relations
between countries, China has clearly leaned toward its surrounding regions. The Belt
and Road Initiative, the community of shared destiny for all mankind, and the multi-
form cooperation mechanisms proposed by China all start from and focus on our
surrounding regions. Even though our surrounding regions are not peaceful, since there
are many hotspots, difficulties, and danger points, the overall situation has not been
reversed, and the so-called “China has no friends” situation has not appeared. China
has ideas and self-confidence, and it can work with neighboring countries to build the
region into an area of peace, cooperation, and development. It goes without saying that
China needs to play the role of a new type of major power in world affairs, and in

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particular, it needs to take the step of innovating in its relations with neighbors and in
building order around its periphery.
Translated by Thomas E. Smith

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