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Not only raw material: China’s experience in expanding international integration (on the example of China’s policy in APEC)

No solo materia prima: la experiencia de China en la expansión de la integración internacional (en el ejemplo de la política de China en APEC)

Zh. V. Petrunina
Komsomolsk-on-Amur State University, Federación de Rusia
G. A. Shusharina
Komsomolsk-on-Amur State University, Federación de Rusia

Not only raw material: China’s experience in expanding international integration (on the example of China’s policy in APEC)

RELIGACIÓN. Revista de Ciencias Sociales y Humanidades, vol. 4, núm. 16, pp. 281-288, 2019

Centro de Investigaciones en Ciencias Sociales y Humanidades

Recepción: 04 Marzo 2019

Aprobación: 16 Junio 2019

Abstract: The proposed study analyzes the activities of the People’s Republic of China (PRC) in the framework of the Asia-Pacific Economic Cooperation (APEC) forum. The policy of the PRC to expand trade and economic cooperation with the leading economies of the forum, aimed at the development of the Asia-Pacific region (APR) as a whole, is studied. The mechanisms of China’s implementation of the “Bogor Goals” in modern realities are revealed. It was determined that the Chinese leadership continues to pay great attention to commercial and technical cooperation with the APEC economies, creating conditions for increasing the investment attractiveness of its country. After the 2013 APEC summit, China began to implement the Bali Declaration, adopted on the basis of the forum in Indonesia. To do this, the Chinese leadership made adjustments to the educational policy. Recognizing the increasing need for its own highly qualified specialists, the PRC government supports students traveling abroad to study. At the same time, Beijing is promoting the training of foreign students in Chinese universities, increasing in this way attracted financial flows to the country. A similar policy is aimed at increasing the country’s competitiveness, diversifying interaction with the APEC economies, and increasing the welfare of China. The study applied the traditional methods of historical research and modeling methods, which allowed not only to study the development trends of the PRC in the past decade but also to determine the most likely scenario for the expansion of international integration in APEC in the near future. China’s successful experience can be used by Russia, which is also a member of the APEC forum, striving for equal cooperation with leading economies and maintaining competitive positions throughout the Asia-Pacific region.

Keywords: Asia-Pacific Economic Cooperation (APEC), China, international regional integration, “Bogor Goals”, Bali Declaration, educational policy.

Resumen: El estudio propuesto analiza las actividades de la República Popular de China (RPC) en el marco del foro de Cooperación Económica Asia-Pacífico (APEC). Se estudia la política de la RPC para ampliar la cooperación comercial y económica con las principales economías del foro, dirigida al desarrollo de la región Asia-Pacífico (APR) en su conjunto. Se revelan los mecanismos de la implementación por parte de China de los «Objetivos de Bogor» en las realidades modernas. Se determinó que el liderazgo chino continúa prestando gran atención a la cooperación comercial y técnica con las economías de APEC, creando condiciones para aumentar el atractivo de inversión de su país. Después de la cumbre APEC 2013, China comenzó a implementar la Declaración de Bali, adoptada sobre la base del foro en Indonesia. Para hacer esto, el liderazgo chino hizo ajustes a la política educativa. Reconociendo la creciente necesidad de sus propios especialistas altamente calificados, el gobierno de la RPC apoya a los estudiantes que viajan al extranjero para estudiar. Al mismo tiempo, Beijing está promoviendo la formación de estudiantes extranjeros en universidades chinas, aumentando así los flujos financieros atraídos hacia el país. Una política similar tiene como objetivo aumentar la competitividad del país, diversificar la interacción con las economías de APEC y aumentar el bienestar de China. El estudio aplicó los métodos tradicionales de investigación histórica y métodos de modelado, que permitieron no solo estudiar las tendencias de desarrollo de la RPC en la última década, sino también determinar el escenario más probable para la expansión de la integración internacional en APEC en el futuro cercano. La experiencia exitosa de China puede ser utilizada por Rusia, que también es miembro del foro APEC, que lucha por la igualdad de cooperación con las principales economías y mantiene posiciones competitivas en toda la región de Asia y el Pacífico.

Palabras clave: Cooperación Económica Asia-Pacífico (APEC), China, integración regional internacional, «Objetivos Bogor», Declaración de Bali, política educativa.

Introduction

Modern international relations cannot be imagined without complex, multilateral integration processes between countries and regions. Interaction takes place in many areas of public life - economic, political, cultural and etc. At the same time, the interests of states reach a high level of interdependence and complementarity. Potapov, (2018; Bergsten, (2018; Solovieva ,(2012; Kuznetsov, et al, (2018; Kondratyev, (2011).

The dynamic development of the economy of modern China forces the leadership of this country to use various mechanisms aimed at expanding cooperation in the Asia-Pacific region. One of the platforms for interaction is the APEC forum, whose tasks include intensifying international regional integration. On the sidelines of the forum, China manages to resolve many issues related to attracting investment in the Chinese economy, expanding areas of interaction with the economies of the forum, which helps improve the quality of life of the population of this country, as well as, helps reduce the level of tension that takes place in modern international relations, creating a positive image of the state. Tran, Heal ,(2014; Luzyanin, 2012; Abuzjarova , (2018; Li Shuangwu. (2008; Gnatyuk, Pekert , (2018; Gnatyuk, Pekert ,(2018).

The issues of the APEC forum and the activities of China are studied by many domestic and foreign scientists, however, Russian and foreign science mainly considers economic issues of cooperation. The authors believe that the PRC policy aimed at expanding cooperation with the APEC economies in the educational and humanitarian fields should be studied, and the most successful and adequate to Russian realities experience should be applied in the Russian Far East. Narkevich, Narkevich, (2018; Schwarzkopf, (2018; Krasnova, Krasnova, (2015; Ashmarov, (2018).

Materials and methods

The methodological basis of the research is the theory of scientific knowledge, the basic principles of which are historicism and objectivity. In order to comprehensively address the problem, along with general scientific methods, the authors applied specific methods of history - problem-chronological, comparative-historical, statistical, etc. This allowed to study the trends in China’s economic and sociocultural development over the past five years, and to identify factors that influenced diversification of China’s interaction within the framework of the APEC forum. To determine the prospects for economic, scientific, technical and humanitarian cooperation of China in the framework of the APEC forum, the method of variable modeling was used. When modeling the possible directions of further development of China, the forecasting method was implemented. Using the comparative historical method, the vectors of the economic policy of the PRC within the framework of APEC are investigated. A consistent review of recent changes in the Chinese economy will be carried out using the historical genetic method. This method will reveal the cause-effect relationships and patterns of development of China at the present stage, noted in domestic and foreign publications.

The use of the problem-chronological method allowed to divide the research topic into a number of narrower and more specific questions and to consider each of them individually. At the same time, using the systemic method, all components of the content of the work are combined into a single whole, examined in dynamics and interconnection. The descriptive method made it possible to obtain complete information about China’s policies within the framework of APEC in the form in which they were reflected in Russian and Chinese sources of official origin.

Results

The concept of “integration” is used in various fields of knowledge. Despite the existing specifics of using this concept in various branches of science, the meaning of the term “integration” is associated with the union of different parts into a whole. International political integration can be seen as the creation of a political community (within a single territorial framework or without reference to them), and international economic integration as a process of rapprochement and coalescence of national economic systems, where internationalization of the economic life of countries takes place. Cultural integration is associated with the interaction of peoples’ cultures, their adaptation to new world processes.

Despite the existing contradictions between the countries of the Asia-Pacific region (APR) and the presence of centers of tension here, in recent decades, APR has become one of the world centers of economic, political and cultural integration. The level of regional integration largely depends on the desire of the leading APR states to interact with each other, and on the goals that they set for themselves, participating in integration processes.

A special place in the development of integration processes in the Asia-Pacific region is occupied by the PRC. Thanks to integration into many Asian-Pacific structures, China has gradually become a regional leader and is making a great contribution to the development of a harmonious peace. The acceleration of China’s economic growth is directly related to its demographic parameters. Meeting the needs of the population forces the PRC leadership to stimulate the country’s economic development, take into account the high level of resource consumption of its economy, and create optimal conditions for Chinese enterprises and entrepreneurs to interact with the outside world.

China’s priorities include active participation in world economic relations, the expansion of multilateral cooperation both at the regional and global levels. In the late 1990s, China adopted the following stratagem: «Lean on the North (Russia refers to it), stabilize the West (EU, USA), go south (to the countries of the Third World - Asia, Africa and Latin America) » Pursuing an independent peaceful foreign policy, China seeks to «stimulate the creation of a just and rational new international political and economic order». Combining openness with national interests and national security, China uses every opportunity to improve its reputation in the international arena, trying to create conditions for peaceful coexistence and stability in Asia.

The concepts about the need to establish a peaceful, just and reasonable new international order were reinforced by the Chinese leadership at the end of the 20th century. Speaking at the 15th Congress of the CPC (1997), President Jiāng Zémín outlined key vectors of China’s foreign policy. The concept of the new international order was based on 2 principles: the approval of the «new world political order» and the approval of the «new world economic order». According to the Russian Sinologist A. Sveshnikov, these 2 principles suggest for China «gaining informal leadership in the Asia-Pacific region». Sveshnikov, (2001; Titarenko, (2008; Gadzaov, Dzerzhinskaya, (2018; Borovikova, (2017).

In the 21st century, the Chinese leadership continues to adhere to the proclaimed foreign policy, consistently moving towards building a new political and economic world order conducive to the development of China, and in the long run towards the very ambitious goal of becoming a superpower. At the 3rd session of the 19th All-Thai People’s Assembly, Jiāng Zémín proclaimed the concept of «going outside» (2000), which envisages export growth and the conquest of international markets by China. In accordance with the concept, the state provides support to Chinese enterprises that are actively engaged in foreign investment activities.

The next step was the foreign policy doctrine of the «peaceful exaltation of China» put forward at the 16th Congress of the CPC (2002) and received a systematic presentation in the documents of the 3rd plenum of the CPC Central Committee of the 16th convocation (October 2003). The essence of this doctrine is reduced to a policy of external openness, multilateral cooperation, expansion of markets for Chinese goods and the use of economic globalization to solve China’s own development.

In October 2003, the first ASEAN: Trade and Investment forum was held in Indonesia (Bali). Speaking with the report «China’s Development and the Revival of Asia», Premier of the State Council of the People’s Republic of China Wen Jiabao announced the policy of «good, safe and rich neighborhood», which was adopted by the Chinese leadership. Outlining the content of this policy, Wen explained that the «good neighborliness» of the Chinese leadership is understood as «the further continuation and development of the kindness and friendship of the Chinese nation»; «Safe neighborhood» is aimed at «ensuring peace and stability in the region, strengthening mutual trust through dialogue and cooperation, resolving differences through peaceful negotiations»; «Rich neighborhood» is aimed at further «strengthening mutually beneficial cooperation with neighboring countries, deepening regional and subregional cooperation, actively promoting the integration of the regional economy and achieving joint development of Asian countries».

China’s high economic growth rates have attracted the attention of the world community. The successes of China, which were an example of successful modernization, gave reason to characterize these processes as the Beijing Consensus (2004), which became an alternative to the Washington Consensus. The «Beijing Consensus» is based on a focus on innovation, sustainable development, social equality and national self-determination, the development of which should lead to the improvement of society. Opening its economy to the outside world, China is focused on preserving national specifics.

As noted, China’s political diplomacy was also reflected in the «theory of harmonious peace», voiced by Chinese President Hu Jintao at the meeting on the occasion of the 60th anniversary of the United Nations in 2005. The theory of building a harmonious peace includes an extension of the political dialogue between countries, the development of economic interaction, the intensification of mutual cultural exchange, the strengthening of cooperation in the field of security, and the joint efforts of countries to protect the environment. Building a harmonious world corresponds to the foreign policy objectives of the PRC, makes it possible to predict the vectors of the political and economic development of the Asia-Pacific region, and plan its own policy in the region.

The idea of creating a «harmonious peace» was also developed by the leaders of the PRC of the «5th generation», headed by President Xi Jinping. Claiming its role as a regional leader, China comes up with diplomatic initiatives such as «smiling diplomacy», «public diplomacy» and «good-neighborly diplomacy». In modern conditions, when politicians of a number of states take Chinese initiatives with a certain degree of distrust, China is actively using the concept of Nye «soft power», which became one of the main levers of the struggle for world influence in the 21st century.

Based on the concept of Nye, modern Chinese politicians are developing their own version of «soft power», believing that culture is the most effective manifestation of «soft power». The director of the Institute for Global Problems of Nankai University, Pan Zhongying, highlights several directions of this policy that the PRC plans to develop:

Foreign financial assistance, the creation of a comprehensive system of economic networks and cultural ties form the core of «soft power».

According to Chinese experts, the development of economic cooperation with neighboring countries should lead to the formation of stable common interests of the countries of the region and, accordingly, to the creation of reliable mechanisms of regional security. The theoretical foundations of the Chinese leadership are confirmed in practice. Securing China as a regional leader is impossible without its active integration into regional structures.

Multilateral integration is implemented in various formats. The formation of interstate regional economic groups (or the so-called regionalization) is a characteristic feature of the modern stage of globalization.

One of the organizations contributing to the dynamic interaction of the APR economies is the Asia-Pacific Economic Cooperation (APEC) organization established in November 1989.

China became a member of APEC as a sovereign state in November 1991. On the path to realizing the Bogor Goals, the PRC is actively cooperating with many APR entities within the APEC, strengthening its own economic positions both at the regional and global levels.

From the very beginning of its membership in APEC, China has been actively involved in its work, making efforts to implement the adopted programs, paying attention to liberalization and creating comfortable conditions for trade and investment in the Asia-Pacific region. The PRC supports the principles of cooperation within the APEC framework, as defined at the 1st Conference of Ministers of Economics and Foreign Affairs (1989). These include supporting economic growth and development of the region; cooperation on the basis of an open dialogue, taking into account mutually beneficial interests and aimed at strengthening the open multilateral trading system.

China’s priority in APEC is trade and technical cooperation. Speaking at the summit in Honolulu (2011), Hu Jintao defined the goals of China’s participation in APEC: firstly, to promote the long-term, smooth and relatively fast development of the economy in the Asia-Pacific region; secondly, support Chinese development policy at the international level, including the implementation of the scientific concept of development, accelerating the process of transformation of development methods, deepening reforms, ensuring and improving the life of the people, increasing the level of openness, and innovative state building; thirdly, the identification of areas of cooperation among economies within the APEC as an important mechanism of interaction between the Asia-Pacific countries; fourthly, promoting the perfection of Sino-US relations of cooperation and partnership; fifthly, promoting the development of relations of friendship and cooperation between various members of the organization.

The Chinese government understands the importance of strengthening cooperation between APEC members and is ready to actively cooperate on many issues. This policy was confirmed at the APEC 2013 Summit (Indonesia, Bali). The meeting was held under the motto «Sustainable Asia-Pacific - the engine of global growth». Speaking at the summit, President Xi Jinping emphasized that «China cannot develop in isolation from the Asia-Pacific region and the Asia-Pacific cannot prosper without China». In implementing the «strategy of entering the world», the PRC is based on the principles of openness in foreign policy and multilateral diplomacy in the Asia-Pacific region, where China has economic and security interests. According to Xi Jinping, three main points should become levers of stimulating sustainable economic growth in the region: strengthening coordination in macroeconomic policy, efforts of the summit participants to maintain financial stability, and deepening economic restructuring.

Since the beginning of its membership in APEC, China has been making efforts to create comfortable conditions for expanding trade and attracting investments in the Asia-Pacific region. In 2001, China’s trade with APEC members amounted to $ 363 billion, which is twice more than in 1995. In 2005, the volume of trade between China and other APEC members reached $ 960.7 billion, increasing falling by 21% compared with 2004. This amounted to 67.7% of China’s total foreign trade. The global economic crisis of 2008 negatively affected the foreign trade of China, however, China managed to maintain a dominant position in the trade and economic relations of the region. Between January and October 2013, China’s trade with APEC economies amounted to $ 2182.87 billion, an increase of 9.9% compared with 2012, and in 2017 - $ 2 670.98 billion. APEC’s main trading partners for China include the United States, Hong Kong, Taiwan, Japan, the Republic of Korea, Singapore, Russia, Australia, Malaysia, and Indonesia. Trade contacts with ASEAN countries are expanding.

Of great importance for the development of cooperation and strengthening the position of China in APEC is the investment policy pursued by the Beijing government. In 2007, 11 major APEC members invested $ 43.76 billion in China in total, which amounted to 58.5% of the total amount of foreign investments actually mastered by the country in 2007. In connection with the economic crisis of 2008, the volume of foreign investment decreased, and since 2009, it has changed in different directions. Most of all, China is interested in Asian businessmen. Half of the investments after 2009 were received from Hong Kong, Japan, Taiwan, Singapore, and the Republic of Korea. By 2012, bilateral agreements were concluded with other APEC members on the promotion and mutual protection of investments. In 2012, the 10 largest countries in the region invested $ 57.3 billion in Chinese enterprises, and in January - October 2013, actual investments in China by joint ventures created with the participation of companies from 10 countries in Asia (Hong Kong, Macau, Fi Lippins, Taiwan, Japan, Thailand, Malaysia, Singapore, the Republic of Korea) increased to $ 83.63 billion, which is 7.19% more than in 2012. Over the same period, US investment in the economy of China amounted to $ 3.04 billion, which is 12.4% more than a year earlier. Improving the investment climate has contributed to a steady increase in investment in the Chinese economy in subsequent years. Asian investors and the United States also took leading positions among foreign investors among APEC economies in 2017: Hong Kong ($ 98.92 billion), Singapore ($ 4.83 billion), Taiwan ($ 4.73 billion), Republic Korea ($ 3.69 billion), Japan ($ 3.27 billion), the United States ($ 3.13 billion).

It should be noted that China began to increase the volume of investments in high-tech areas, such as information transfer, software and information technology services and scientific research, maintenance and exploration. The policy of «Shichan Huang Jishu» («technology in exchange for a market») implemented by China has allowed not only to increase the volume of foreign investment in the Chinese economy, but also to conduct scientific research in which Chinese specialists are actively involved. Back in 2009, the Minister of Science and Technology of the People’s Republic of China, Wan Gang, demanded that all the technologies used in the production of goods and the provision of services sold to the Chinese government be created in the Celestial Empire, which forced many multinational corporations to concentrate most of their research and development in the territory PRC.

An important role in the development of these areas is played by the human factor. At the 2013 summit held in Indonesia, one of the priorities was to strengthen the interconnectedness, considered in three dimensions: «physical», «institutional» and «human». And if the first 2 dimensions are directly aimed at improving the economies, the third is connected with the desire to expand interaction between people.

As an option to achieve this goal, an increase in the mobility of students and researchers is considered; stimulating the activities of educational institutions and the development of cross-border education in order to increase the availability of educational services; expansion of tourist flows and exchanges and other measures. All this will make it possible to solve the problems of employment, increasing productivity and stimulating economic growth. In the Bali Declaration, adopted as a result of the work of the APEC-2013 Summit, economic leaders committed themselves by 2020 to «increase student exchange between universities in APEC economies to 1 million people per year; support further steps to increase the mobility of students, researchers and educational service providers; as well as the development of a network of existing bilateral agreements in the field of education». These ideas were developed at the APEC 2014 Summit, which was held in Beijing. Xi Jinping took advantage of this meeting to deepen cooperation among APEC economies, opening up prospects for the development of the region.

The Chinese authorities understand that the country’s fast-growing economy needs its own highly qualified specialists. Currently, the Beijing authorities are paying great attention to such aspects of cooperation in the educational field as the academic mobility of students, the organization of exhibitions of educational resources.

If at the beginning of the 21st century, PRC’s educational policy was aimed at studying the experience of leading universities in the world and most of the graduates from among Chinese citizens went abroad to study, then in recent years the situation has changed. In 2010, the Ministry of Education of the PRC identified the following strategic priorities in terms of education: increasing the number of foreign students in China; an increase in the number of Chinese government scholarships for international students; subsidizing research conducted in China by students from developing countries; an increase in the number of higher education programs delivered in foreign languages at Chinese universities; improving the quality of education; Implementation of the Overseas Education Plan for Chinese citizens at the expense of the state budget in order to increase the international mobility of students. In terms of the «Modernization of Education until 2035», the Chinese leadership defined a strategic task, according to which by 2035 China should become a country with a high level of education, ready to compete worthily with the leading countries of the world, with highly qualified personnel and human resources. The Chinese government has done tremendous work to reform the education system, which allowed China to enter the top five world leaders in the educational services market. China has overtaken France, Germany and Australia to attract students from other countries, and by 2020 it is planned to attract up to half a million foreign students to Chinese universities. China is currently the largest educational hub in Asia. At the same time, China retained the status of the largest supplier of foreign students in the world. In 2017, the number of Chinese studying abroad was 600 thousand people.

Young Chinese are happy to study at universities in the Republic of Korea, Japan, Indonesia, Thailand, the United States, Laos and Russia, whose economies are members of the APEC. This allows the PRC to work in the future: on the one hand, future Chinese specialists gain experience in dialogue with economic partners, and on the other hand, young representatives of APEC economies are familiar with Chinese traditions and culture. Every year, the number of Chinese studying abroad is increasing by an average of 10-12%, most of them returning to their country after training.

Discussion

  1. 1. 1. The key reason for the increasing interest in Chinese education in the world is the growth of the PRC economy, an understanding of the importance of knowledge of the Chinese language, knowledge of Chinese culture and an understanding of the Chinese world view for career advancement.

    2. In China itself, the development of educational services is seen as an important component of the economic well-being of the state.

    3. In an effort to keep up to date, China remains a supporter of its traditions, in which a special place is given to respect for teachers and respect for education.

    4. In China, it is believed that in order to adequately confront possible challenges in the future, it is necessary to educate a comprehensively developed citizen of the society in the present, and education itself should contribute to the modernization of the state.

    5. Learning languages and culture of those countries with which China is determined to develop economic relations in the long term, is possible during the exchange of educational services. The Chinese leadership believes that the higher the level of education of Chinese citizens, the higher the level of competitiveness of China itself in the international arena.

    6. Cultural diplomacy, which is a component of the «soft power» of this country and a contributor to the expansion of integration processes in the region, should be noted as an effective mechanism for strengthening China’s position among the APEC economies. A lot of work to implement this range of issues is carried out by the Confucius Institute, which represents a network of international cultural and educational centers and is an important channel for the implementation of the academic dialogue between countries. International festivals, forums, sporting events (for example, the 2008 Beijing Olympics), and the holding of cultural days of China when China demonstrates its economic achievements to the world community have gained wide popularity in the world.

Conclusion

APEC is one of the platforms contributing to the expansion of China’s comprehensive integration. China pursues a protectionist policy aimed at supporting national production and national entrepreneurs. Despite the prospects, a significant amount of mutual trade and investment, and integration interaction are complicated by historical grievances and mutual distrust, and confrontation with the leading APEC economies. The economic growth of China and the search for new economic partners, the desire to remove the existing contradictions in the Asia- Pacific region, have forced the Chinese leadership to make changes in educational policy. This led not only to attracting new financial flows to the country, but also to a change in the perception of the image of China in the world, to an increase in interest in studying its history and culture, and, therefore, to being able to mitigate acute issues in the course of conducting an international dialogue in the future and expand international integration.

The experience of China aimed at improving the quality of education can be used in Russia, and the territory of the Russian Far East can become an experimental site.

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Tran D., Heal A.A. (2014). Free Trade Area of the Asia-Pacific: Potential Pathways to Implementation. ESCAP Trade Insights. 4,(4) December Available at: http://www.unescap.org/sites/default/files/TradeInsights- FTAAP-Issue.

Yang Jiechi on the participation of Chinese President Hu Jintao in the 19th informal meeting of APEC leaders. http://russian.people.com.cn/31520/7645995.html

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