science and technology to its economy, both industry and agriculture,
and to its military capability. Of the sources of social power, China
came to prioritise economic over ideological power. Political power
still remained important, however, in Beijing’s dealings with neigh-
bouring states, backed as it increasingly was by a modernising military.
For China to develop economically required foreign investment,
transfer of technology, and open markets for trade. In other words,
China needed a peaceful and stable international environment,
particularly in its own region, as a prerequisite for modernisation.
Chinese foreign policy in the 1990s sought to create such an environ-
ment, by reassuring Southeast Asian countries that Beijing would no
longer support armed insurgencies and would not pursue its claims to
the Spratlys by force. Prioritising economics, however, reinforced links
between the PRC and overseas Chinese. It was overwhelmingly over-
seas Chinese capital that found its way from Southeast Asia to China,
while much of burgeoning regional trade was also in overseas Chinese
hands. For some Southeast Asians the readiness of overseas Chinese to
invest in China renewed doubts about their loyalty to their countries
of residence.
More worrying, however, were the implications of China’s long-
term intention to achieve great power status. Southeast Asian
countries went out of their way not to criticise or antagonise China.
Engagement in the ASEAN way replaced balance-of-power thinking
as the public face, at least, of the Southeast Asian relationship with
China. Countries such as Vietnam, for all its distrust of China, swal-
lowed their pride and reverted to traditional methods of dealing with
Beijing. Deference to status replaced confrontation. At the same time,
a new counterweight was provided through ASEAN solidarity. This
placed China in something of a dilemma, as Beijing’s preference for
bilateral diplomacy came up against its increasing participation in
multilateral forums also deemed necessary for world leadership.
Whether such participation would ‘socialise’ China into becoming a
good international citizen remained, however, an open question.
Fresh beginnings