편집자 주     본지에서는 전세계 외국인 독자들을 대상으로 한국의 역사와 문화를 정확하게 소개하기 위해 김정기 변호사의 칼럼을 영문판으로 연재를 시작합니다.

한국의 역사와 문화에 관심있는 전 세계인들에게 도움이 되길 바랍니다.

한국어 독자들은 한국어로 번역된 화면이 보이므로 반드시 사이트 상단에서 원문보기로 설정하셔야 영문판으로 보실수 있습니다.
 

 

☆김정기 총장 주요 약력☆

 

● 학력
- 뉴욕주립대학교(StonyBrook) 정치학과 수석졸업
- 마케트대학교(Marquette) 로스쿨 법학박사
- 하버드대학교(Harvard) 케네디스쿨 최고위과정
- 베이징대학교(Peking) 북한학 연구학자

 
● 경력
- 제8대 주상하이 대한민국 총영사(13등급 대사)
- 2010 상하이엑스포 대한민국관 정부대표
- 아시아태평양지방정부네트워크(CityNet) 사무국 대표
- 세계스마트시티기구(WeGO) 사무국 사무총장
- 밀워키지방법원 재판연구원 
- 법무법인 대륙아주 중국 총괄 미국변호사
- 난징대학교 국제경제연구소 객좌교수
- 베이징대학교 동방학연구원 연구교수
- 국민대학교 정치대학원 특임교수
- 동국대학교 경영전문대학원 석좌교수
- 숭실사이버대학교 초대 총장

 
● 저서
- 대학생을 위한 거로영어연구[전10권](거로출판사)
- 나는 1%의 가능성에 도전한다(조선일보사)
- 한국형 협상의 법칙(청년정신사)
- 대한민국과 세계 이야기(도서출판 책미듬)

(NewsKorea=Seoul) Digital News Team = World Story 4 - <Vision 4  by Atty Jeong-kee Kim>

● China’s pening Era: Toward the World

The economic reforms that began in China in 1978 were not only the start of a new era for the country but also brought a wave of change to the global economic landscape. Once described as a nation behind a "bamboo curtain," China had tightly closed itself off from the world. However, since Deng Xiaoping launched his reform and opening-up policy in 1978, the country has flung open its doors, rapidly expanding its influence across the globe. When Deng first declared that China's national income would increase more than fourfold by the end of the 20th century, many viewed it merely as a hopeful message for the people. Yet, by 1995, China had already achieved this ambitious goal, well ahead of schedule.
 
The world is changing, with China at the heart of this transformation. This massive nation, once dormant, is now writhing like a dragon and moving steadily towards becoming a central force in the global order, proclaiming that it will no longer endure any humiliation. The notion that China's inherent drive for dominance should be approached with caution has become a reality. When China first embarked on its journey of reform and opening, no one could have imagined the extent of its current development. As China solidifies its position as an economic superpower on the world stage, the question arises: will it succeed in becoming the center of the global order as it intends?

To answer this, we must examine the historical processes through which China established itself as the central power of Asia and how it has pursued its reform and opening-up policies.

Understanding the history of China’s openness provides insight into the potential for a "Pax Sinica" and allows us to gauge China's expanding global influence. For neighboring countries like ours, studying the history of China's openness is crucial in forecasting our future in relation to this rising power.

    
<Achieving openness through tribute trade>

China has a history of establishing unified dynasties across the Han, Tang, Yuan, Ming, and Qing periods and leading the world order in the Asia region centered on China. Often, China's history is referred to as the "history of the periphery" or "history of the marginal," because China, while leading the world order in Asia as the central country, has constantly faced challenges from the periphery.

Among the five unified dynasties of the Han, Tang, Yuan, Ming, and Qing, which can be seen as an early "Pax Sinica," both the Yuan and Qing were from non-Han ethnicities. However, even the Han-centered unified dynasties had to continually contend with challenges from the periphery. Ultimately, the policy chosen by these unified dynasties to manage the threatening and burdensome periphery was the opening through tribute trade.    

In simple terms, it was a means of enriching the economy of the other party to prevent invasion or plunder and to facilitate the rule of non-Han ethnicities.    

However, from China's perspective, tribute trade was a form of "generosity" where China gave more than it received. Therefore, it should be seen not as a genuine opening but as a policy of tolerance chosen to peacefully maintain a China-centered order. 

What about Korea (Joseon)? The 500 years of peace between the Joseon Dynasty and China were also made possible through tribute and the appointment of crown princes. The Ming Dynasty politically supported the legitimacy of the Joseon Dynasty through the process of appointing the crown prince and economically engaged in tribute trade as a form of generous economic support. By examining these relations with the periphery centered on China, we can draw parallels with the recent relationship between China and North Korea.

The smooth succession of power from Kim Il-sung to Kim Jong-il in North Korea was greatly supported by China's efforts to secure North Korea's legitimacy through processes similar to the appointment of a crown prince and by economic support policies through tribute trade.

<Taking the path of involuntary openness through concession trade>

In the agricultural era, China had an overwhelming economic and cultural advantage compared to other regional powers, accounting for 30% of the world GDP. However, in the 19th century, with the achievements of the Industrial Revolution by Western powers, China was forced into "involuntary opening," known as "treaty port trade." The First Opium War broke out in January 1840 and concluded in 1842 with the signing of the Treaty of Nanjing, leading to the opening of Shanghai, Ningbo, Fuzhou, Xiamen, and Guangzhou.

Following the Second Opium War, in 1856, Britain, France, Russia, and the United States captured Beijing, and in 1860, the Treaty of Beijing was signed, leading to the opening of Tianjin. As an agricultural power, China was unable to actively respond to the new era of the Industrial Revolution and ultimately had to submit to Western powers, resulting in involuntary opening.

During the "Han, Tang, Yuan, Ming, and Qing" era, China accounted for more than 30% of the world GDP. Since the term "Pax" is used when a country holds 20% of the world GDP, China had achieved "Pax" status in all five dynasties. Particularly, the Qing Dynasty, during the reigns of Kangxi Emperor and Qianlong Emperor, from 1662 to 1795, is considered a period of Pax Sinica due to its vast territory, diverse cultures, and the longest period of peace and prosperity.   

During this period, China and Britain had active trade relations. Britain’s main export was cotton, while China exported silk, tea, and porcelain. A trade imbalance occurred as the demand for Chinese products exploded in Britain, resulting in an influx of British-produced silver into China. Consequently, Britain resorted to cultivating opium in India and exporting it to China, leading to widespread addiction among Chinese and events in Guangdong Province. This resulted in the Opium Wars.

The conflicts between China and Britain, which stemmed from trade friction, took place in two phases and concluded in 1860. As a result of the Opium Wars, Tianjin was opened, and coastal cities in eastern China were forced into treaty port trade. However, in hindsight, the cities that were opened at that time actually contributed to China's economic development. Although much of the infrastructure from that period has disappeared, those cities have become central to China's rapid growth, based on the experiences and infrastructure established then, as the era of reform and opening commenced.    

<Opening an era of reform and opening through processing trade>

In a modern context, the era of reform and opening can be summarized as the “processing trade” era from 1978 to 2000. The Kuomintang government, which established the "Republic of China" after overthrowing the feudal dynasties through the Xinhai Revolution, was defeated in two civil wars against the Communist Party and retreated to Taiwan. The victorious Communist Party established the "People's Republic of China" in 1949.

China, isolated due to Mao Zedong’s Cultural Revolution, began opening to the West with U.S. President Nixon's visit in 1972. Following Mao’s death, Deng Xiaoping came to power, leading to the official start of the reform and opening era in 1978. This year is regarded as the beginning of China's reform and opening, with the country being divided into five major economic regions for analysis.    

 
<First Phase of Reform and Opening: 1980s Pearl River Delta>

The first phase of reform and opening focused on the Pearl River Delta (珠江三角洲). Deng Xiaoping centered the reform and opening efforts around Shenzhen, an industrial and planned city near Guangzhou. He created an industrial cluster comprising Guangzhou, Shenzhen, Dongguan, and Zhuhai, initiating the reform and opening process. The cities in this region are within a 3-hour road distance from each other and have a balanced distribution of various industries, making it advantageous for synergistic effects.

Currently, the Pearl River Delta region is weaker in financial and logistics functions compared to the Yangtze River Delta region centered around Shanghai, which developed later. As a result, the Guangdong provincial government is promoting strategic connections with Hong Kong. They are working to attract high-tech industries to traditional processing trade regions such as Guangzhou, Shenzhen, Dongguan, and Zhuhai, and to enhance the region's financial and logistics functions through nearby Hong Kong. If successful, the Pearl River Delta, a symbol of the first phase of reform and opening, could re-emerge as a powerful entity in China's economy.

<Second Phase of Reform and Opening: 1990s Yangtze River Delta>

Learning from the shortcomings of the first phase of reform and opening, the Chinese government entered a new stage of reform in 1992 following Deng Xiaoping's "Southern Tour" (南巡讲话), during which he visited Wuhan, Shanghai, and other places to express his views on reform and opening. Deng Xiaoping brought Jiang Zemin into the fold and launched the second phase of reform and opening centered on the Yangtze River Delta (长江三角洲) region, which includes Shanghai, Jiangsu Province, and Zhejiang Province.

The development of the Yangtze River Delta can be considered a substantial symbol of China's reform and opening. The Yangtze River, known as Changjiang or Yangtze in Western terms, originates from the Tibetan Plateau and flows through Chongqing, Wuhan, and ends in Shanghai, traditionally serving as the center of inland logistics. Shanghai, once a small fishing village in Jiangsu Province, became a thriving metropolis and a direct-controlled municipality due to the opening of its ports following Western powers' invasions. Jiangsu and Zhejiang Provinces, historically part of the Yangtze River Delta region, have been wealthy areas, contributing significantly to China's modern national wealth. 

Shanghai, the core of the Yangtze River Delta region, is a metropolitan area combining urban and rural features, with a total area 10 times that of Seoul and a population exceeding 30 million. The Pudong area within Shanghai has become a key focus of the second phase of reform and opening, specializing in finance, IT, and R&D, and recently integrated adjacent districts to consolidate its logistics functions. This has resulted in the creation of the vast Pudong area, twice the size of Seoul, where the integration of finance and logistics has maximized efficiency.   

Compared to the Pearl River Delta, the Yangtze River Delta has successfully attracted high-tech industries, with Shanghai as a financial and logistics hub, and Jiangsu and Zhejiang Provinces focusing on production bases, forming a perfect industrial cluster. 

<Third Phase of Reform and Opening: 2000s Bohai Economic Circle>

In the 2000s, China began developing the northern region centered around the "Beijing-Tianjin-Hebei Economic Zone" (京津冀经济圈). This region was expanded and readjusted after 2005 to include Liaoning and Shandong provinces, forming the "Bohai Economic Circle" (环渤海经济圈). The core of this region is Tianjin's "Binhai New Area" (滨海新区), which was developed using Shanghai's Pudong as a model. Binhai New Area covers an area twice that of Pudong and four times that of Seoul. While it has attracted many high-tech industries and has a good industrial base, it still seems to fall short in competition with Pudong.

The Chinese government planned to focus on developing the Bohai Economic Circle, including Tianjin and the surrounding cities of Shandong, Qingdao, Dalian, Beijing, and Hebei, into a hub for advanced manufacturing, logistics, finance, and trade. However, due to its vast area and dispersed key cities, it has been challenging to form a concentrated industrial cluster like the Yangtze River Delta, resulting in lower efficiency.

 
<Fourth Phase of Reform and Opening: 2000s Central and Western Economic Zone>

The Central and Western Economic Zone was promoted as part of an inland development strategy centered around historic cities like Chengdu, Chongqing, and Xi'an. Following the 2008 financial crisis, the central government invested 4 trillion yuan in infrastructure construction to stimulate domestic demand, which has supported further development in the region.

Nevertheless, geographical constraints pose limitations on development in this region. High logistics costs and long transportation times to inland or eastern ports decrease efficiency, and the western part is still adjacent to economically underdeveloped Central Asian countries, making overland access to Central Asia difficult.

However, the region holds potential for long-term development due to its abundant underground resources and the presence of green growth industries such as wind and solar energy. The Chinese government places importance on green industry development, so the region deserves attention, though short-term effects seem modest compared to the central government's concentrated investment.    

<Fifth Phase of Reform and Opening: 2000s Northeast Economic Zone>

The focus of the fifth phase of reform and opening is likely to be the "Northeast Three Provinces" (东北三省) of Liaoning, Jilin, and Heilongjiang. This region has a historical tradition of early industrialization due to Japanese industrialization following the Manchurian Incident but had been neglected in development priorities. Recent ambitious projects, including the Changjilao Development Plan, are noteworthy. Additionally, this region borders North Korea, and while the current situation under the Korean Peninsula's division is uncertain, if North Korea adopts opening policies or the division is resolved, the region could experience a renaissance with overland connections to South Korea and Japan.
 

<Entering true reform and opening by joining the WTO>

The true reform and opening of China began with its accession to the WTO in 2001. This allowed China to be recognized as a member of the international community and gain the trust of Western countries.

While joining the WTO meant being subject to its regulations, it also led to an influx of massive capital from Western countries, giving a boost to economic growth. Therefore, the real achievements of reform and opening are considered to have begun after 2001, marking a truly voluntary phase of reform.

Before joining the WTO, Western capital did enter China, but the majority was from overseas Chinese communities. Capital from Hong Kong, Taiwan, Singapore, and the broader Southeast Asia was driven by patriotism. Moreover, this overseas Chinese capital was significant for its continuity. Typically, capital would withdraw or reduce investments if the prospects seemed bleak, but continuous investments driven by patriotism allowed the success of the initial processing industries. Western capital and investments from Japan and South Korea were present but in a passive form. After joining the WTO, however, massive Jewish-Christian capital began to flow in, leading to the creation of the Shanghai Pudong phenomenon.
    

<2010 Shanghai Expo: Completing the Reform and Opening>

The Expo is essentially an economic Olympics. The Shanghai Expo can be seen as marking the end of 30 years of China’s reform and opening. While the Olympics are a sporting event, the Expo can be viewed as an economic competition. The Expo also highlighted that Shanghai was at the center of the success story of reform and opening, hence the saying, "Seeing Shanghai is seeing the future" and "Seeing Shanghai is seeing the world."    

Pudong in Shanghai has over 200 modern skyscrapers, comparable to Chicago. The Bund area in Shanghai features landmarks resembling London, New York, and Paris. The population and area of Shanghai are on par with these four cities combined. Thus, Shanghai encompasses both the past and present of cities worldwide. Through Shanghai's appearance, one can vividly experience the transformation of China and its evolution into a major global market. The Expo saw participation from most countries around the world, and leaders from nearly every country visited, observing the vast Chinese market. 

The dramatic transformation of Shanghai during the Expo was widely reported, and the dazzling achievements of China’s reform and opening were extensively promoted through global media. The six-month showcase provided enormous promotional value, establishing a powerful image that China would soon become a global center. 

The Expo also significantly boosted national pride among Chinese citizens. Approximately 70 million Chinese visitors felt a deep sense of pride in China’s development while visiting exhibits such as the China Pavilion, Information and Communication Pavilion, Power Pavilion, Automobile Pavilion, Ship Pavilion, and Space Pavilion, recognizing China as a world leader in all these fields.

As of 2023, China is the world’s top exporter, with the largest foreign exchange reserves (about $3.1 trillion), and the second-largest GDP (around $19 trillion), roughly four times ahead of Japan ($5.4 trillion).    

On January 29, 2005, at the World Economic Forum in Switzerland, China’s Vice Premier Huang Ju predicted that China’s GDP would reach about $4 trillion by 2020, surpassing Japan to become the world’s second-largest economy. In reality, China achieved this status about ten years earlier than anticipated. 

While China’s GDP of about $19 trillion in 2023 is still less than three-quarters of the U.S. GDP ($26 trillion), rapid economic growth suggests China may surpass the U.S. sooner than expected. This remarkable economic growth has enabled mutual benefits for China and Korea.    

Korean companies have significantly contributed to China's reform and opening process, and China's high growth has helped Korea overcome financial crises in 1997 and 2008. Despite a brief history of diplomatic relations, the two countries have achieved notable progress and supported each other in challenging times.    

As demonstrated by China’s reform and opening process, the Chinese market has expanded astronomically. Korea needs to strengthen its awareness of expanding its economic presence in China’s domestic market. However, there must be fundamental solutions to the declining market share in manufacturing sectors such as smartphones, automobiles, and home appliances. A more challenging approach is necessary for Korean companies, and a rapid shift in perception towards China is required. Leveraging China's growth as a stepping stone, Korea should prepare for a leap forward in the 21st century. China's revival through reform and opening will undoubtedly provide hope for a prosperous future for Korea as well. The future economic community with China is an inevitable destiny for mutual coexistence. 

☆ Author:  Atty Jeong-kee Kim ☆

● Education
- Bachelor of Arts in Political Science, Summa Cum Laude, State University of New York at Stony Brook
-  Doctor of Jurisprudence, Marquette University Law School
- Senior Executive Program, John F. Kennedy School of Government, Harvard University
- Research Scholar in North Korean Studies, Peking University

● Experience
- Consul General of the Republic of Korea in Shanghai
- Commissioner General for the Korean Pavilion at the 2010 Shanghai Expo
- CEO, Asia-Pacific Local Government Network for Economic and Social Development (CityNet)
- Secretary General, World Smart Sustainable Cities Organization(WeGO)
- Law Clerk, Milwaukee Circuit Court, USA
- Senior Attorney-at-Law, Dr & Aju LLC
- Distinguished Visiting Professor, World Economy Research Institute, Nanjing University
- Research Professor, Institute of Oriental Studies, Peking University
- Distinguished Professor, Graduate School of Political Science, Kookmin University
- Chair Professor, Graduate School of Business, Dongguk University
- First President of Soongsil Cyber University

● Publications
- Georo English Studies Series for College Students [10 volumes] (Georo Publishing)
- I Challenge the Possibility of One Percent (Chosun Ilbo)
- The Art of Negotiation (Cheongnyonneongsin Publishing)
- Korea and the World (Chekmidum Publishing)