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COMMITTEE PRINT
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110TH CONGRESS
2d Session
S. PRT.
2008
110–46

CHINA’S FOREIGN POLICY AND
‘‘SOFT POWER’’ IN SOUTH AMERICA,
ASIA, AND AFRICA

A STUDY
PREPARED FOR THE
COMMITTEE ON FOREIGN RELATIONS
UNITED STATES SENATE
BY THE
CONGRESSIONAL RESEARCH SERVICE
LIBRARY OF CONGRESS
APRIL 2008
Printed for the use of the Committee on Foreign Relations
Available via World Wide Web: http://www.gpoaccess.gov/congress/
index.html
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COMMITTEE ON FOREIGN RELATIONS
JOSEPH R. BIDEN, JR., Delaware,Chairman

CHRISTOPHER J. DODD, Connecticut
JOHN F. KERRY, Massachusetts
RUSSELL D. FEINGOLD, Wisconsin
BARBARA BOXER, California
BILL NELSON, Florida
BARACK OBAMA, Illinois
ROBERT MENENDEZ, New Jersey
BENJAMIN L. CARDIN, Maryland
ROBERT P. CASEY, JR., Pennsylvania
JIM WEBB, Virginia

RICHARD G. LUGAR, Indiana
CHUCK HAGEL, Nebraska
NORM COLEMAN, Minnesota
BOB CORKER, Tennessee
GEORGE V. VOINOVICH, Ohio
LISA MURKOWSKI, Alaska
JIM DEMINT, South Carolina
JOHNNY ISAKSON, Georgia
DAVID VITTER, Louisiana
JOHN BARRASSO, Wyoming

ANTONYJ. BLINKEN,Staff Director
KENNETHA. MYERS, JR., Republican Staff Director
(II)
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(iii)
CONTENTS
Page
CHINAS FOREIGN POLICY AND ‘‘SOFT POWER’’
INSOUTHAMERICA, ASIA, ANDAFRICA
Letter of Submittal..................................................................................................

v Letter of Transmittal...............................................................................................vii China’s ‘‘Soft Power:’’ Overview and U.S. Policy Challenges...............................

1
Definitions of Soft Power.................................................................................
2
Presumed PRC Foreign Policy Goals..............................................................
4
Competitive Advantages of PRC ‘‘Soft Power’’...............................................

9 Limitations on PRC ‘‘Soft Power’’....................................................................10 Implications for U.S. Interests........................................................................12 Options..............................................................................................................

13
Latin America and the Caribbean..........................................................................16
Overview............................................................................................................
16
Diplomacy..........................................................................................................
16
Economic Ties...................................................................................................
20
Foreign Assistance............................................................................................
26
Implications for U.S. Policy in Latin America and the Caribbean...............28
The Southwest Pacific.............................................................................................32
Overview............................................................................................................
32
Diplomacy..........................................................................................................

33 Trade and Investment......................................................................................36 Foreign Aid.......................................................................................................37 Pacific Views Toward China............................................................................38 Implications for U.S. Policy in the Region.....................................................40

Japan and South Korea...........................................................................................42
Overview............................................................................................................
42
International Trade Flows...............................................................................

42 Investment, Financial, Aid, and Cultural Flows...........................................45 China’s Relations With Japan.........................................................................51 China’s Relations With South Korea..............................................................54 Regional Trade Arrangements.........................................................................

58
Implications for U.S. Policy in the Region.....................................................63
Central Asia.............................................................................................................
65
Overview............................................................................................................

65 Bilateral and Multilateral Diplomacy.............................................................66 Economic Ties...................................................................................................

71
Foreign Assistance............................................................................................

78 Implications for Central Asia..........................................................................79 Implications for U.S. Interests........................................................................83

Southeast Asia.........................................................................................................
88
Overview............................................................................................................
88
Diplomacy..........................................................................................................
89
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