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Evelyn Goh
To cite this article: Evelyn Goh (2019) Contesting Hegemonic Order: China in East Asia, Security
Studies, 28:3, 614-644, DOI: 10.1080/09636412.2019.1604989
ABSTRACT
This paper develops an English School–informed approach to
theorize hegemonic order using an explicitly social lens. It
conceptualizes the architecture of hegemonic order as consist-
ing of three social elements—compact, structure, and proc-
esses—and emphasizes social exchange, power relationships,
and negotiation as the bridges linking hegemony and order.
Using the most significant contemporary case of hegemonic
contestation, it employs this hegemonic order framework to
analyze how, and with what effects on systemic change,
China is contesting the US-led hegemonic order in East Asia.
It finds that variation in the forms and effects of Chinese con-
testation in the security, institutional, and economic domains
is explained by differences in the robustness of the US hege-
monic social compact, and the complexity of the regional
social structure.
Evelyn Goh is the Shedden Professor of Strategic Policy Studies at the Coral Bell School of Asia Pacific Affairs at
The Australian National University.
Here I understand “hegemony” in the classical sense of extremely unequal power backed by a greater portion
1
regional states actually share. What accounts for this variation? The differ-
ences in the robustness of the US hegemonic social compact and the com-
plexity of social structure in each of these domains. Overall, I offer a richer
understanding of the complex effects that rising powers—through social
processes of negotiation and contestation—can have on both the form and
content of hegemonic orders.
and new institutions, Beijing has thus far proved more cautious than many
would expect from a rapidly rising power.3
Continued US primacy, coupled with China’s rise, generates a variegated
East Asian order. While China is rising within a region comprehensively
dominated by the United States, Washington must also reconsolidate this
dominance in the face of Beijing’s resurgence as the region’s indigenous
great power. This is not a Cold War–style face-off between two adversaries
possessing discrete economic and political systems, spheres of influence,
and allies. Rather, East Asia faces “a specific form of concentration of
power”4: the United States has not only gained primacy since the end of
the Cold War, but has managed to establish hegemony in the region. This
finds reflection in its military preponderance, alliance system, and near-
monopolistic role as security public goods provider—but more importantly
in the disproportionate American ability to determine regional order. East
Asian states employ liberal US operating principles, including an open eco-
nomic system and the rule of law; these principles undergird US alliances
as well as broader regional cooperative enterprises. Crucially, US leadership
has enjoyed significant support and demand from every Northeast and
Southeast Asian state with the (partial) exception of China and North
Korea. This support is what makes American hegemony one of “unequal
power backed by a greater portion of consent than coercion.”5
The question becomes whether, how, and to what effect China is contest-
ing—or responding in other ways to—this US-led hegemonic order. China
is challenging American leadership more, and in different ways, than liber-
als would expect given that China has profited so much from this hege-
monic order. But China is also challenging it less, and with less
determinate outcomes, than what realists would expect from a power tran-
sition. The regional demand for US hegemony provides a key reason for
this pattern, as it raises the costs for China if Beijing mounts a direct chal-
lenge to American hegemony.
This regional support does not result from internalization of US values
per se. Rather, it stems from a potent mix of America’s preponderant
power and the lack of attractive alternatives, resulting in a situation in
which “regional states consent to support or tolerate US hegemony because
3
See esp. Ann Kent, Beyond Compliance: China, International Organizations, and Global Security (Stanford, CA:
Stanford University Press, 2007); Alastair Iain Johnston, Social States: China in International Institutions,
1980–2000 (Princeton, NJ: Princeton University Press, 2008); Rosemary Foot and Andrew Walter, China, the
United States, and Global Order (Cambridge: Cambridge University Press, 2011); Nicola Horsburgh, China and
Global Nuclear Order: From Estrangement to Active Engagement (Oxford: Oxford University Press, 2015).
4
Ian Clark, “China and the United States: A Succession of Hegemonies?” International Affairs 87, no. 1 (January
2011): 13–28, https://doi.org/10.1111/j.1468-2346.2011.00957.x.
5
Goh, Struggle for Order, 6
618 E. GOH
of their belief that the distribution of benefits, while not ideal, is preferable
in this pluralist order to any alternatives they can devise.”6 Most East Asian
states see the United States as a security provider and lender of first resort
because those Asian states still trust the United States’ benign character, as
well as US willingness to take Asian strategic interests seriously. But this
conservatism also reflects China’s inability thus far to convince the region
that China can offer public goods, does not threaten their interests, shares
common social goals, and can play the hegemonic ordering role. Thus,
most region leaders do not want to swap out the hegemon if the current
one ain’t broke (yet).
and only if, that hegemon agrees to certain constraints on its power and
performs special duties or provides public goods that uphold the order.
This concept of a social compact encapsulates earlier hegemonic studies’
focus on the hegemon’s public goods provision, institutionalized restraint,
and special responsibilities.18 Leading states gain subordinate states’ acqui-
escence by providing “social goods” that are “sufficient to offset the latter’s
loss of freedom.”19 However, even within a hegemonic order, the details of
the social compact are fairly dynamic, and the specific details of the
exchange of special rights and duties can be adjusted and updated.
Moreover, the hegemonic compact may not necessarily consist of one
grand bargain; there may be a few core bargains regarding the distribution
of differentiated authority according to key wielders, constituencies, scope,
or domains. Furthermore, the hegemonic compact is subject to renegoti-
ation in the event of significant systemic change. The hegemon risks
decline if these negotiations are unsuccessful; conversely, its authority is
reified if these negotiations succeed.
Thus, in investigating China’s challenge to the United States’ hegemonic
order in East Asia, we ask the following questions. Is China already party
to the core bargains that underpin the current order? Is China trying to
change the overarching nature of these bargains, or to adjust the specific
terms of the exchange—with the former having a bigger potential impact
on the existing order? Is China trying to negotiate its own bargains with
the hegemonic constituencies?
The second element is the social structure. What is the hierarchical for-
mation of the hegemonic order? When considering structure, realist
approaches tend to start from power distribution, but because hegemony
rests on legitimate authority, not capability per se, our interest is grounded
18
Robert Gilpin, War and Change in World Politics (Cambridge: Cambridge University Press, 1981); Ikenberry, After
Victory; Mlada Bukovansky et al., Special Responsibilities: Global Problems and American Power (Cambridge:
Cambridge University Press, 2012).
19
David A. Lake, Hierarchy in International Relations (Ithaca, NY: Cornell University Press, 2011), 54.
622 E. GOH
20
Goh, Struggle for Order, 208–12.
21
Seo-Hyun Park, Sovereignty and Status in East Asian International Relations (Cambridge: Cambridge University
Press, 2017); Ji-Young Lee, China’s Hegemony: Four Hundred Years of East Asian Domination (New York:
Columbia University Press, 2017).
CONTESTING HEGEMONIC ORDER: CHINA IN EAST ASIA 623
Table 2. Comparison of US and Chinese social imperatives within the hegemonic order in
East Asia.
Architecture of hegemonic order
Social compact Social structure Social processes
United States Conservative attitude: secur- Primacy & hegemony: own pre- Hegemonic assurance
ity & economic bargains ponderance & values through commitment;
with allies & partners Main constituency: allies Resistance against
Hegemonic challenger: China challengers
China Reticent attitude: not pre- Heterarchy: US superpower over- Assurance through restraint;
sent at the creation, lay, but also layered hierarchy Deference towards
evolving, wait & see Multiple constituencies: vertical hegemon;
relationship with US and non- Resistance to core inter-
great powers & horizontal rela- est intrusions
tionships with other great
powers
Diverse ecology
Council) and to ensure that China benefits from any reforms. However,
China has not proposed concrete new bargains, but instead ambiguously
suggests a “new type of major power relations,” or a “community of com-
mon destiny.” Chinese policy-makers eschew institutionalized social com-
pacts, and instead seem more comfortable with traditional spheres of
influence when thinking about exclusive geopolitical spaces,28 or with debat-
ing microbargains such as other parties’ revocation of previous agreements
about sovereignty disputes.29
Many Chinese analysts see the international social structure as a heter-
archy, with “one superpower, several strong powers” (yichao duoqiang).
Some Chinese views emphasize the element of US dominance more than
the multiple great powers in lower ranks of the international hierarchy.30
After the 2008–2009 global financial crisis and since China overtook Japan
as the second-largest economy in 2010, Chinese views shifted toward a
hierarchical formation with China and the United States forming a “two
superpowers, several strong powers” (erchao duoqiang) structure.31 For our
purposes, Chinese perspectives explicitly recognize US preponderance in
the regional and international order, even if they regard US primacy to be
in decline. They also recognize the many layers of the international hier-
archy: within the great power realm, Beijing must contend with horizontal
relationships with other major powers, including those in its own region
that are US supporter states.32 Third, several key international constituen-
cies—including the United States as superpower, China’s large neighbors,
smaller developing countries in China’s peripheries, major international
markets, and emerging economies such as the BRICS—form different audi-
ences for Beijing’s foreign strategic endeavors.33 Overall, because of its dual
self-perception as great power and developing country, China’s regional-
global social ecology is more diverse than the United States’.
With the imperative of consolidating its great power position, China focuses
on three social processes. The most important social process for a resurgent
power is assurance in the form of restraint toward weaker states; this includes
28
For example, Yinhong Shi, “The United States, East Asia, and Chinese ‘Triumphalism,’” in China’s Rise and
Regional Integration in East Asia, ed. Yong Wook Lee and Key-young San (Abingdon, UK: Routledge,
2014), 40–53.
29
For example, Chinese commentators blame Japan for reneging on their 1972 normalization agreement to set
aside the East China Sea territorial dispute, when the Noda government bought the Senkaku Islands in 2012.
(The Japanese see Beijing as having reneged earlier in the 2000s by significantly increasing paramilitary and
military operations in the area.)
30
Yongjin Zhang, “Understanding Chinese Views of the Emerging Global Order,” in China and the New
International Order, ed. Wang and Zheng, 151.
31
David Shambaugh, “Chinese Thinking about World Order,” in China and the International System: Becoming a
World Power, ed. Xiaoming Huang and Robert Patman (Abingdon, UK: Routledge, 2013), 21–31.
32
A related realist analysis is William C. Wohlforth, “The Stability of a Unipolar World,” International Security 24,
no. 1 (Summer 1999): 5–41, https://doi.org/10.1162/016228899560031.
33
For example, President Xi Jinping’s multidimensional foreign policy focus: “relations with surrounding countries
are primary; great powers are the key; developing countries the foundation; and multilateral relations are
arenas” (zhoubian shi shouyao, daguo shi guanjian, fazhanzhong guojia shi jichu, duobain shi wutai).
CONTESTING HEGEMONIC ORDER: CHINA IN EAST ASIA 627
Security
The traditional obligation of superordinate powers to provide security pub-
lic goods and manage conflicts remains urgently required in East Asia,
where the US-centric hegemonic order is most evident in the security
realm. China most directly resists and tries to change the authority struc-
ture and hierarchy of norms in this realm, but without success thus far.
The main reason is the region’s near-consensus preference for the United
States as security public goods provider, reinforced by China’s escalating
contestation of the hegemonic social compact.
In security terms, the region’s post–Cold War hegemonic social compact
is well captured by Ikenberry’s model of institutionalized restraint.34 The
United States has credibly assured others about its benignity, lack of terri-
torial ambitions and willingness to participate in multilateral institutions.
But long-term US security commitment to its supporter states is more
important than the self-restraint that liberal accounts, centered on postwar
Europe, emphasize. In East Asia, Washington is a hegemon responsive to
threats against its allies’ security. Despite often-fractious negotiations, sig-
nificant updates were made to bargains surrounding key US bilateral alli-
ances and security partnerships with Japan, South Korea, the Philippines,
and Singapore. The terms of these bargains were adjusted (burden-sharing,
operational command, and technology transfers), and rejustified in light of
new post–Cold War threats (terrorism, North Korea, and China).35 Complicity
34
Ikenberry, After Victory.
35
William Tow, Asia-Pacific Strategic Relations: Seeking Convergent Security (Cambridge: Cambridge University
Press, 2001); Evelyn Goh, “How Japan Matters in the Evolving East Asian Security Order,” International Affairs
87, no. 4 (July 2011): 887–902, https://doi.org/10.1111/j.1468-2346.2011.01009.x; Evelyn Goh, “Great Powers
and Hierarchical Order in Southeast Asia: Analyzing Regional Security Strategies,” International Security 32, no.
3 (Winter 2007/2008), 113–57, https://doi.org/10.1162/isec.2008.32.3.113.
628 E. GOH
from the vast majority of East Asian states with sustaining US security hegem-
ony presents clear behavioral evidence undermining Beijing’s claim that
Washington unilaterally persists with outdated Cold War strategic practices.
This invigorated regional complicity is also driven by China’s actions.
From the mid-1990s to the mid-2000s, the region’s hegemonic social
structure seemed to accommodate China as a resurgent power. Despite
opposing US hegemony, during the mid-1990s Chinese leaders witnessed
the superiority of US military power in post–Cold War campaigns, and
also realized that the “China threat” discourse undermined China’s national
development interests.36 During the early 2000s, Beijing demonstrated def-
erence by reassuring Washington that China did not directly challenge its
regional security position. The Vice Premier publicly stated that “China
respects the American presence and interests in the Asia-Pacific region …
we welcome the United States playing a positive and constructive
role … .”37 In exchange, the George W. Bush administration included
Beijing in the great power club by sharing some responsibility for conflict
management on the Korean peninsula. In facilitating the Six Party Talks
(6PT) in 2003, China conducted classic great power management. Beijing
threatened and bribed Pyongyang to the negotiating table, engaged in shut-
tle diplomacy, and initiated the 2005 package denuclearization deal. After
North Korea’s 2006 nuclear test, Beijing supported two rounds of UN
Security Council sanctions, and coerced Pyongyang into allowing IAEA
inspections. But China also mobilized other states to resist the toughest ele-
ments of US policy, pre-emptive strikes and regime change.38
This attempted co-optation failed because of vital differences in
Washington and Beijing’s ultimate goals. US leaders’ sole aim had been to
make sanctions work by harnessing China’s influence to pressure North
Korea into giving up its nuclear program. Beijing, in contrast, sought wider
goals linking nuclear nonproliferation with United States–North Korea nor-
malization and a peace settlement.39 Ultimately, US co-optation of China
as regional great power partner was ambivalent because stakeholdership
meant China’s accession into the hegemonic order as it stood. China
resisted some specific details, but was unable to challenge Washington’s
36
Hebert Yee and Feng Zhu, “Chinese Perspectives on the China Threat,” in The China Threat: Perceptions, Myths
and Reality, ed. Herbert Yee and Ian Storey (London: RoutledgeCurzon, 2002), 21–42; Yong Deng, “Reputation
and the Security Dilemma: China Reacts to the China Threat Theory,” in New Directions in the Study of China’s
Foreign Policy, ed. Alastair Iain Johnston and Robert S. Ross (Stanford, CA: Stanford University Press,
2006), 186–214.
37
Qian Qichen, November 21, 2005, quoted in Deng, China’s Struggle for Status, 284.
38
Ashton Carter and William Perry, “If necessary, strike and destroy,” Washington Post, 22 June 2006; “Bolton:
Sanctions ‘help regime change,’” Financial Times, 24 October 2006.
39
Gavan McCormack, “North Korea and the Birth Pangs of a New Northeast Asian Order,” Asia-Pacific Journal, 24
October 2007, https://apjjf.org/-Gavan-McCormack/2555/article.html; Dingli Shen, “Cooperative Denuclearization
toward North Korea,” Washington Quarterly 32, no. 4 (2009): 175–88, https://doi.org/10.1080/
0163660090.3232251.
CONTESTING HEGEMONIC ORDER: CHINA IN EAST ASIA 629
hegemonic right to define the nature and hierarchy of the security public
goods at stake. Thus, the North Korea problem remains defined as nuclear
proliferation, which must be dealt with multilaterally before addressing the
Korean War settlement or Korean reunification.
Over time, the balance of tensions in China’s hegemonic order engage-
ment gradually shifted toward resistance, and regional social processes were
marked by mutually reinforcing escalatory dynamics. From around 2009,
China seemed to backtrack on previous commitments to multilateral man-
agement of territorial disputes in the South China Sea (SCS), referred to as
one of China’s “core national sovereignty interests.”40 US threat perceptions
rose after Chinese ships harassed a US navy surveillance vessel in the SCS
in March 2009, and a new Chinese underground nuclear submarine base
was built on Hainan Island. The following year the Korean crisis escalated
with North Korea sinking a South Korean naval ship and shelling
Yeonpyeong island. As regional allies and partners simultaneously turned
to Washington for strategic reassurance, the Obama administration
responded in 2011 with the rebalance to Asia, invigorating military rela-
tionships with South Korea, Japan, the Philippines, Singapore, Vietnam,
and Australia.41
Subsequently, China’s emphasis on resistance to assert its core interests
clearly outweighed the imperatives of assurance. In contrast to Beijing’s
earlier procedural resistance to US sanctions in the 6PT, this resistance is
escalatory because it contests two key norms undergirding the existing
hegemonic social compact: the principle of great power restraint, and inter-
national rules governing maritime sovereignty and exploitation. Most not-
able was the mid-2012 standoff at Scarborough Shoal between Chinese and
Filipino maritime security forces, which ended with Chinese control of the
disputed feature and Manila initiating legal arbitration proceedings in The
Hague. When tensions escalated between China and Japan over the
Senkaku Islands, China declared an Air Defense Identification Zone over
parts of the East China Sea in November 2013. In mid-2014, a Chinese
state-owned company placed a giant oil rig close to the Paracel Islands dis-
puted by Vietnam, accompanied by the largest of China’s Coast Guard
ships. Most significant has been China’s construction of artificial islands in
the disputed area since 2015, evidently for military purposes.
Beijing’s willingness to show force, and the speed and scale of staking its
claims, appears to be a rank elevation challenge in structural terms because
it aims to change the terms of the great power bargain. China’s lack of the
40
Michael Swaine and Taylor Fravel, “China’s Assertive Behavior Part Two: The Maritime Periphery,” China
Leadership Monitor 35 (2011): 1-29, http://hdl.handle.net/1721.1/71259.
41
Hillary Rodham Clinton, “America’s Pacific Century,” Foreign Policy 189 (November 2011): 56–63, https://
foreignpolicy.com/2011/10/11/americas-pacific-century/.
630 E. GOH
restraint that other states expect from a regional great power generates the
greatest regional resistance. Beijing also challenges the US interpretation of
the right to innocent passage by military vessels in others’ territorial waters
and EEZ. Despite being a signatory to UNCLOS, China has officially pre-
sented an alternative framework of historic claims to justify its actions. The
July 2016 ruling by the arbitral tribunal in the Philippines’ UNCLOS case
against China comprehensively undermined the basis of China’s alternative
framework,42 highlighting China’s rejection of established international
maritime rules.
China’s escalation of East China Sea territorial disputes also intensifies
horizontal great power resistance from Japan, the region’s most important
supporter of the US-hegemonic order. The China threat has enabled Prime
Minister Abe to mobilize domestic support for constitutional reforms to
ease restrictions on Japan’s foreign arms transfers, conflict engagement, and
expanded guidelines for the US alliance.43 Japan is also upgrading its mili-
tary-to-military exchanges and provision of coast guard and development
assistance to key maritime Southeast Asian partners.
By this social account, the most significant result of China’s contestation
in the security domain is its stimulation of regional preference for the
United States as security guarantor. Over the past decade, China’s escala-
tory resistance against great power restraint and international maritime
rules has outweighed the imperative of assuring regional states about
Chinese restraint. This causes the existing hegemonic social compact with
the United States to remain robust and highly relevant. High regional
demand for Washington to guarantee the status quo creates social processes
heavily weighted in favor of complicity with US hegemony; this occurs at
the expense of accommodation with China. These processes generate a
hegemonic social structure that is rigid in its US centrism. Thus far, these
conditions facilitate Washington’s entrenchment of its preferred hegemonic
social structure centered on allies and security partners, and downplay
efforts at co-opting China as a satisfied rising power. Moreover, China’s
lack of success either in being co-opted or in resisting also reifies US
hegemony in the security realm. China has neither bought into the existing
hegemonic social compact, nor offered an attractive alternative compact.
Beijing has demonstrated neither a clear ability to deliver on special
responsibilities, nor a commitment to self-restraint, key prerequisites for
other states to grant it status somewhere on par with the United States.
42
See Donald Rothwell, “South China Sea Verdict Explained,” Australian National University College of Law, 13
July 2016, https://law.anu.edu.au/news-and-events/news/south-china-sea-verdict-explained. All internet sources
in this article were accessed on August 10, 2018.
43
For example, Alexandra Sakaki, “Japan’s Security Policy: A Shift in Direction Under Abe?” SWP Berlin Research
Paper, March 2015, at https://www.swpberlin.org/fileadmin/contents/products/research_papers/2015_RP02_
skk.pdf.
CONTESTING HEGEMONIC ORDER: CHINA IN EAST ASIA 631
Institutional
The region has seen three decades of institutional profligacy. As sites of
codified norms for regional interaction and governance, regional institu-
tions are vital for negotiating and contesting hegemonic social compacts.
This East Asian domain has demonstrated a high degree of malleability
and accommodation, compared to the security realm. For example, after
the Cold War, the Asia-Pacific Economic Cooperation (APEC) forum and
ASEAN Regional Forum (ARF) emerged to deal with the perceived disinte-
gration of the economic and security bargains that the non-Communist
countries had previously struck with Washington. APEC’s purpose was to
help manage United States–Japan trade frictions and promote regional eco-
nomic cooperation as a bulwark against protectionism in Europe and
North America.44 The ARF was meant to help bind the United States to
the region after the Cold War raison d’^etre had largely evaporated. This
multilateral institution lent legitimacy to regional supporter states’ desire to
extend US military preponderance to hedge against strategic uncertainty.
The continued US security guarantee in turn underwrote the secondary
aim of socializing rising China into the existing regional compact.45
China has most actively contested the US-led hegemonic order in the
institutional domain, which is important for its efforts to reassure neigh-
bors about its peaceful rise as a responsible great power. This contestation
evolved from attempted exclusion in the 1990s and supplementation in the
2000s to competitive pluralization after 2010. Initially, China leveraged the
ARF’s multilateral institutional setting to censure normatively American
alliances in Asia, stigmatizing them as reflecting an outdated Cold War
mentality and pushing multipolarity as an alternative.46 Regional disillu-
sionment with perceived Western neglect during the 1997 Asian Financial
Crisis generated self-help in the first exclusively East Asian institution, the
ASEAN Plus Three (APT). With annual summits of the thirteen Northeast
and Southeast Asian states and economic coordination programs, the APT
44
Yoichi Funabashi, Asia Pacific Fusion: Japan’s Role in APEC (Washington DC: Institute for International
Economics, 1995).
45
Evelyn Goh, “The ASEAN Regional Forum in United States East Asian Strategy,” Pacific Review 17, no. 1 (2004):
47–69, https://doi.org/10.1080/0951274042000182410.
46
Evelyn Goh and Amitav Acharya, “The ASEAN Regional Forum and U.S.-China Relations: Comparing Chinese
and American Positions,” in Advancing East Asian Regionalism, ed. Melissa Curley and Nick Thomas (London:
Routledge 2006), 98.
632 E. GOH
51
Wang Jisi, “Zhongguo de guoji dingwei wenti yu ‘taoguang yanghui, yousuo zuowei’ de zhanl€ue sixiang,”
[“China’s International Status and the Strategic Principle of ‘Keeping a Low Profile while Striving for
Achievement’”], Guoji wenti yanjiu [Journal of International Studies] 2 (2011): 4–9.
52
Xi Jinping, “New Asian Security Concept for New Progress in Security Cooperation,” (remarks at the fourth
summit of the Conference on Interaction and Confidence-Building Measures in Asia, 21 May 2014) at http://
www.fmprc.gov.cn/mfa_eng/zxxx_662805/t1159951.shtml.
634 E. GOH
It finds a deep and wide resonance across Asia, fueling Beijing’s regional
public goods provision with Chinese characteristics.
Third, China explicitly mobilizes a new constituency via these develop-
mentalist institutions: Asian developing countries and peripheral states
that have tended to be neglected, taken for granted, or treated as mere
arenas by other major powers. This sits in contrast to the US emphasis
on allies and developed country constituencies. The post-1945 US bargain
with regional allies and partners—exchanging security guarantees and
market access for political support and subordination—helped bring to
power domestic elites in favor of internationalist outlooks prioritizing
economic growth.53 China offers peripheral developing constituencies a
new hegemonic bargain that resonates with both their shared statist
ideology and their developmental imperative. Emphasizing political non-
interference, bilateralism, and statist forms of economic regulation, BRI
and other China-led trade and services agreements render regulatory
coordination non-political, “seemingly preserving government autonomy
and control of the economy in target states.”54 This reinforces the spe-
cific relations between economics and security found in developing parts
of Asia, where ruling regimes harness external economic opportunities
and development gains in order to ensure their own domestic sustain-
ability. Thus, China’s new institutions promise to extend the interlocking
domestic-international and economic-security bargains that underpin
regional order.
Fourth, China’s new institutions agenda privileges forms of develop-
ment specific to the needs of many of these ruling elites; relatively
cheap, quick, and conditions-light lending, which is infrastructure-led,
fulfill the latter’s need to show short-term results. To date, China’s most
significant new institution is the AIIB, launched in 2016 with fifty-seven
founding member states, and with itself as the largest shareholder (26%
voting share).55 Beijing also harnessed other institutional frameworks, the
Bo’ao Forum and the BRICS-led New Development Bank, to the infra-
structure agenda. China partly exploited the infrastructure investment
shortfall worldwide when IFIs moved out of commercial lending for
lower income countries.56 In its first year of operation, AIIB committed
the relatively small sum of $1.7 billion to nine projects, collaborating
53
Steve Chan, Looking for Balance: China, the United States, and Power Balancing in East Asia (Stanford, CA:
Stanford University Press, 2012).
54
Priya Chacko and Kanishka Jayasuriya, “A Capitalising Foreign Policy: Regulatory Geographies and
Transnationalized State Projects,” European Journal of International Relations 24, no. 1 (21 March 2017): 15–16,
https://doi.org/10.1177/1354066117694702.
55
India and Russia, the next largest shareholders, have 7.5% and 5.92% voting shares, respectively.
56
Raj M. Desai and James Raymond Vreeland, “How to stop worrying and love the Asian Infrastructure
Investment Bank,” Washington Post, 6 April 6 2015, https://www.washingtonpost.com/news/monkey-cage/wp/
2015/04/06/how-to-stop-worrying-and-love-the-asian-infrastructure-investment-bank/?utm_term¼.bdf1b6473e1c.
CONTESTING HEGEMONIC ORDER: CHINA IN EAST ASIA 635
with other funders like the World Bank.57 It remains too early to gauge
how AIIB practices challenge existing lending norms. Over the medium
term, BRI-related regulatory frameworks—including customs coordin-
ation, free trade agreements or zones, currency convertibility, legal
frameworks for ownership and investment, and interstate agencies to
oversee them—grant Beijing significant “connectivity power.”58 Even if
only partially implemented, BRI will pluralize regional rules and norms
of development financing and practices, impacting on procedural aspects
of the institutional order. Beijing’s 2018 creation of a BRI legal-dispute
settlement mechanism involving China-controlled international commer-
cial courts is a salient example.59
By its recent institutional activism, China has caused the hegemonic
social structure of the East Asian order, which was already diffused by
institutional proliferation, to melt further. Thus far, Beijing’s contestation
ranges beyond the “spoiler,” “supporter,” or “shirker” categories of rising
power behavior.60 China has sought neither exit from nor straightforward
replacement of US leadership in East Asian regional institutions. Instead,
Beijing has expanded the domain of its institutional contestation to encom-
pass subregions and political constituencies of Asia where it has better
comparative advantage. Beijing may have found a relatively promising basis
from which to create what Clark calls a “coalitional hegemony,”61 exercised
vis-a-vis a relatively circumscribed domain (Asian developmentalism) and
constituency (developing and peripheral Asian states). The developmental
imperative is a widely and deeply shared one in the region, and China
exercises influence through “preference multiplying,” by which it expands
the regional consensus favoring state-centric developmentalism.62 As it is
not cast in direct competition with the US-led order, other states have been
generally complicit, as evidenced by the key US allies from Asia and
Europe that have joined the AIIB.
The interim result is a disaggregating social structure, with China’s puta-
tive new bargains holding out the possibility of differentiated and overlap-
ping layers of authority alongside those of the United States. In the short
term, China has strengthened its voice options in regional and international
institutions. But Beijing also exercises structural power in expanding the
57
Issaku Harada, “AIIB hits its first year landing target,” Asian Nikkei Review, 26 January 26 2017, http://asia.
nikkei.com/magazine/20170126/Politics-Economy/AIIB-hits-its-first-year-lending-target?page¼1.
58
Evelyn Goh and James Reilly, “The Power of Connectivity: China’s Belt & Road Initiative,” East Asia Forum
Quarterly (October–December 2017): 33–34.
59
Yang Sheng, “China to set up international courts to settle Belt and Road disputes,” Global Times, 28 June
2018, http://www.globaltimes.cn/content/1108794.shtml.
60
For example, Randall Schweller and Xiaoyu Pu, “After Unipolarity: China’s Visions of International Order in an
Era of U.S. Decline,” International Security 36, no. 1 (Summer 2011): 41–72, https://doi.org/10.1162/ISEC_
a_00044.
61
Clark, Hegemony in International Society, 123–46.
62
See Evelyn Goh, ed., Rising China’s Influence in Developing Asia (Oxford: Oxford University Press, 2016).
636 E. GOH
Political economic
This domain is the most interesting because it is most confounding for theo-
rists of hegemony. Unlike earlier hegemonic stability theorists, we can no lon-
ger use the economy as our prime illustration. This section focuses on
finance, which has been central to HST. Here, it makes more sense to discuss
the global level, because the two key issues—imbalances and governance—are
not usefully reducible to regions. China’s rise has dramatically impacted the
global distribution of production and capital, as well as the relationships and
responsibilities that constitute global financial order. Yet, authority is so dif-
fused in the contemporary international economy that we cannot easily iden-
tify Chinese contestation as a US-hegemonic order per se.
In general, China’s economic rise has involved negotiated strategic integra-
tion, a decision to become part of the existing international economic order
despite the short-term costs of having relatively little say over the terms of
membership, in the expectation of material benefits and voice opportunities.
Beijing’s deliberate decision to open up to the international economy in order
to facilitate domestic reform and development was made understanding that
this would occur on terms set by the United States.65 The success of its inte-
gration was evident in China’s ascent up the hierarchy of the international
63
See Gregory Chin, “China’s Rising Monetary Power,” in The Great Wall of Money: Power and Politics in China’s
International Monetary Relations, ed. Eric Helleiner and Jonathan Kirshner (Ithaca, NY: Cornell University Press,
2014), 185–86.
64
For a more sanguine interpretation that “[t]he voice and authority conferred by institutional leadership will
help co-opt China” in favor of the existing liberal international order, “even if the formal authority of the
United States is somewhat diluted,” see G. John Ikenberry and Darren Lim, “China’s Emerging Institutional
Statecraft: The Asian Infrastructure Investment Bank and the Prospects for Counter-Hegemony,” Brookings
Institution Report, April 2017, https://www.brookings.edu/research/chinas-emerging-institutional-statecraft/.
65
Jiao Shixin, Liyi de quanheng: meiguo zai zhongguo jiaru guoji jizhi zhong de zuoyong [The balance of interests:
the role of the U.S. in China’s entry into international regimes] (Beijing: Shijie zhishi chubanshe, 2009), 151–289.
CONTESTING HEGEMONIC ORDER: CHINA IN EAST ASIA 637
economic social structure: China overtook Japan as the world’s second largest
economy in 2010, and surpassed the United States as the largest trading
nation in 2013–2014. China’s rapid elevation into the exclusive great power
club came when the renminbi (RMB) was included in the IMF basket of cur-
rencies (Special Drawing Rights) in October 2016, marking its acceptance as
an official international reserve currency.66 Moreover, the terms of the RMB’s
inclusion reflect China’s relative significance among the “Big Four”; the RMB
now has a 10.92% weighting in the basket, third highest against the USD
(41.73%, reduced by -0.17), euro (30.93%, -6.47), Japanese yen (8.33%, -1.07)
and pound Sterling (8.09%, -3.21).67
Initially, China’s rise did not alter, but instead reinforced, the United
States’ hegemonic social compact with supporter states; this played out
whereby the latter gained access to the US market in exchange for their
undervalued currency, which in turn supported massive US state spending.
Indeed, China became the most conspicuous supporter-surplus country,
overtaking Germany and Japan to hold the largest foreign government
share of US debt—$1.24 trillion by 2016. This was about 10% of all pub-
licly-held US debt, putting China behind only the Social Security Trust
Fund’s $3 trillion and the Federal Reserve’s $2 trillion holdings, and ahead
of US citizens’ $959 billion and Japan’s $912 billion.68
But after the 2009 global financial crisis, this grand bargain unrav-
eled.69 Even as the United States draws down on domestic borrowing
and becomes less tolerant of China’s export-led growth strategy, China
has focused on developing its domestic consumer market and diversify-
ing its foreign reserves away from the USD. The BRI, for example, pro-
motes internationalization of the RMB. But this is not so much China
contesting US hegemony as it is China joining a more widespread turn
away from an increasingly unviable bargain that requires unsustainable
trade-offs between national stability and global balances. In December
2015 China sold off $18 billion of US Treasury debt, but that was part
of a worldwide record-annual US debt dump, as central banks tried to
prop up their own currencies while the global saving glut wound down.
Other major sellers included Japan (which sold $22 billion in December
66
“IMF approves reserve currency status for Chna’s yuan,” Bloomberg, 1 December 2015, http://www.bloomberg.
com/news/articles/2015-11-30/imf-backs-yuan-in-reserve-currency-club-after-rejection-in-2010.
67
Before October 2016, the US dollar accounted for 41.9% of the basket, the euro 37.4%, the pound 11.3%, and
the yen 9.4%.
68
Figures from the US Treasury: http://usgovinfo.about.com/od/moneymatters/ss/How-Much-US-Debt-Does-China-
Own.htm.
69
Michael Mastanduno, “Order and Change in World Politics: The Financial Crisis and the Breakdown of the US-
China Grand Bargain,” in Power, Order and Change in World Politics, ed., G. John Ikenberry (Cambridge:
Cambridge University Press, 2014), 162–91.
638 E. GOH
2015), Russia, Brazil, and Turkey.70 In this sense, 2009 may prove to be
an inflection point in the decline of the US hegemonic order, exacerbat-
ing the blow dealt to the US model of running the global economy after
the Asian crisis of 1997, and reinforcing the global redistribution of eco-
nomic power away from North America and Western Europe.71
Within this increasingly diffused social structure, the expanded club of
great economic powers including China has increased in importance. The
unraveling surplus-deficit bargain reflects the classic great power manage-
ment imperative that has existed since the Great Depression. This impera-
tive mandates that achieving global macroeconomic stability requires some
collective action to ensure sufficient policy consistency among the major
leading economies, to promote stability of exchange rates, and to prevent
large imbalances in international payments from developing and fatally
undermining systemic stability. From this shared imperative arises two
issues: identifying who should perform the vital surveillance function, and
determining what ought to be the distribution of responsibility for national
adjustments to achieve systemic stability. Both have come under more
intense contestation over the past two decades, especially given the more
multipolar distribution of global economic power. Ultimately, a new regime
for adjustment “will require articulation of mutual responsibilities and sym-
metrical obligations shared amongst surplus and deficit countries, in the
knowledge that the status of being either a surplus or deficit country can
hardly be permanent.”72 This fluidity of social status among the major
players generates significant contestation over relative responsibilities.
During the first twenty years of reforms, and in accordance with its over-
all emphasis on assurance and restraint, China’s record of accepting the
IMF’s bilateral surveillance process was “fairly normal.”73 From 2005, when
large Chinese current account surpluses became evident and external pres-
sure built for appreciation, China resisted what it saw as an unreasonably
large share of the burden of international adjustments. But it was not alone.
Like other surplus countries, including US allies Germany and Japan,
Chinese leaders believe that large-deficit countries like the United States
bear more responsibility for adjustment. China’s central bankers perceived
a US-led campaign to shift responsibility (and thus avoid politically costly
70
Patrick Gillespie, “China leads U.S. global debt dump,” CNN, 17 February 2016, http://money.cnn.com/2016/02/
17/news/economy/china-us-debt-dump-central-banks/; Min Zeng and Lingling Wei, “Once the biggest buyer,
China starts dumping U.S. government debt,” Wall Street Journal, 7 October 2015, http://www.wsj.com/articles/
once-the-biggest-buyer-china-starts-dumping-u-s-government-debt-1444196065.
71
See Jonathan Kirshner, American Power after the Global Financial Crisis (Ithaca, NY: Cornell University
Press, 2014).
72
Mlada Bukovansky et al., Special Responsibilities: Global Problems and American Power (Cambridge: Cambridge
University Press, 2012), 207.
73
Rosemary Foot and Andrew Walter, China, the United States, and Global Order (Cambridge: Cambridge
University Press, 2011), 126.
CONTESTING HEGEMONIC ORDER: CHINA IN EAST ASIA 639
fiscal cuts in the United States) and to undermine China’s domestic monet-
ary stability. Moreover they fear that China will be entrapped into financ-
ing US fiscal deficits and having to absorb extraordinary capital losses
down the line, generating domestic blowback for the CCP. Thus, China
withdrew from the bilateral surveillance mechanism in 2007–2008, after
having in fact accepted significant revaluation in 2005–2008. It returned in
2009 after the worst of the GFC, when the IMF became more conciliatory
toward China because it needed Chinese surpluses.
Therefore, the social processes in the global financial domain have been
marked by complex tensions between complicity and resistance among
China and other major economies. These tensions are exacerbated by the
fact that the great power club is only one of a number of nodes of author-
ity in this domain’s complicated social structure. For instance, the adjust-
ment problem is one that IFIs like the IMF and the G20 surveillance
processes may have little authority over, as much leverage can also be
exerted by private bond markets and credit rating agencies that can
threaten the US government with rising bond yields and thus pressure it
into lower fiscal spending. This interpretation fuels the claim that the
United States began retrenching from its special responsibility in the global
financial and monetary arena “far earlier” than in the security realm.74 This
interpretation sees the transition into a clearly post-hegemonic monetary
order as having occurred in the 1970s with the breakdown of the Bretton
Woods system and the steady three-way diffusion of authority toward a
larger club of large economies, the market, and regulatory networks.75 In
what has become a “highly fragmented and complex” authority structure
for governing global financial stability, disparate regulatory networks with
no direct enforcement authority are trying to coordinate national rules in
disaggregated sectors such as currency trading, banking, investment, and
accounting.76 These are networks of national and international regulators;
experts; and the private sector represented by financial firms, very large
institutional investors and ratings agencies. In addition, we see the rise of
transnational hybrid authority in standards-setting for a wide range of
industries and markets.77 To illustrate, when operating on broad market
principles, “regulatory neoliberalism” is exercised by private sector groups
like the Basel Committee on Banking Supervision and International
74
Bukovansky et al., Special Responsibilities, 165.
75
See also Daniel Drezner, All Politics is Global: Explaining International Regulatory Regimes (Princeton, NJ:
Princeton University Press, 2008).
76
Bukovansky et al., Special Responsibilities, 188.
77
Jean-Christophe Graz, “Standardizing Services: Transnational Authority and Market Power,” in Handbook of the
Political Economy of Production, ed. Kees van der Pijl (Cheltenham, UK: Edward Elgar, 2015), 132–48; Helen
Nesadurai, “Contesting Private Sustainability Norms in Primary Commodity Production: Norm Hybridisation in
the Palm Oil Sector,” in Norm Antipreneurs and the Politics of Resistance to Global Normative Change, ed. Alan
Bloomfield and Shirley V. Scott (London: Routledge, 2017), 159–76.
640 E. GOH
Conclusion
This article demonstrated how an English School–informed approach can
contribute to next-generation hegemonic order theorizing using an expli-
citly social lens. In conceptualizing the architecture of hegemonic order as
consisting of three social elements—compact, structure, and processes—it
emphasized social exchange, power relationships, and negotiation as the
bridges that link hegemony and order. In particular this analysis showed
78
Andrew Walter, Governing Finance: East Asia’s Adoption of International Standards (Ithaca, NY: Cornell University
Press, 2008).
79
“Maiden voyage: reserve currency status might make for a weaker yuan,” The Economist, 5 December 2015,
http://www.economist.com/news/business-and-finance/21679341-its-new-status-might-make-weaker-yuan-
chinese-renminbi-joins-imfs.
80
Miles Kahler and David A. Lake, “Economic Integration and Global Governance,” in The Politics of Global
Regulations, ed. Walter Mattli and Ngaire Woods (Princeton, NJ: Princeton University Press, 2009).
81
The author thanks Andrew Walter for his help with this point.
CONTESTING HEGEMONIC ORDER: CHINA IN EAST ASIA 641
Table 3. Summary of China’s contestation in the three domains of the US-hegemonic order in
East Asia.
ARCHITECTURE OF HEGEMONIC ORDER CHINA’S
DOMAIN Social compact Social structure Social processes CONTESTATION
Security Robust and reinforced Rigid (but therefore Complicity with US From ambivalent
by China threat prone to crisis and hegemon co-optation,
sudden change) dominates to escalatory
resistance to core
interest intrusions
Institutional Malleable and accom- Disaggregated and Balance of complicity From attempted
modating of differentiated and resistance, exclusion and
power shifts with potential for supplementation,
revolt (exit options) to competitive
pluralization
Political Unravelling, capable Diffused, fragmented, Fluid and Negotiated strategic
economic of selective reform, networked; indeterminate integration to date,
but sustainabil- post-hegemonic? but open-ended
ity uncertain
reassurance, and to offer a social compact that trades public goods provi-
sion in return for others’ complicity.
Third, by studying the details of China’s interaction with the existing
hegemonic order, the paper demonstrates the multifaceted nature of hege-
monic contestation. As summarized in Table 3, China’s challenges to the
existing hegemonic order manifests differently in the three domains of
security, institutions, and political economy. The variation is related to two
factors: first, to the robustness and malleability of the existing social com-
pact; and second, to the complexity of the social structure. These factors in
turn condition the balance of tensions in how China and the United States
pursue their respective social imperatives.
In the security domain, Beijing has avidly contested the United States’
sole leadership and hyperpreponderance, but Chinese escalatory resistance
in maritime East Asia has redounded in pushing regional supporter states
into a greater embrace of the US security guarantee. Thus, Washington has
been best able to uphold its imperatives in this domain, preserving its
social compact with its selective constituency of allies and partners. Yet,
this strengthening of the hegemonic order did not result so much from the
United States exerting hegemonic control in a unilateral and linear fash-
ion—indeed, the United States and China explored accommodation for
some time—as from the interaction between China’s resistance to perceived
intrusions into its core interests, and other regional states flocking toward
the apparently still-relevant and robust social compact with the United
States in order to resist the China threat.
In contrast with the security domain’s rigid social structure that privi-
leges the distinction of the United States as hegemon above all others, the
institutional domain has a more permeable and less heavily US-centric
CONTESTING HEGEMONIC ORDER: CHINA IN EAST ASIA 643
expansion. While the outcome is yet uncertain, studying the dynamic pro-
cess of contestation sheds important light on how hegemonic orders are
created, sustained, and altered. It also spurs important questions for further
research. The first group of questions relates to the outer boundaries of
what can be classed as hegemonic orders. In form, even if we accept that
hegemony does not have to be confined to single hegemons or closed-shop
constituencies, to what extent can a hegemonic order be sustainably plural?
Moreover, what is the content of a hegemonic order that keeps it together?
Is there one social compact or a set of interlocking compacts? If the latter,
might these different compacts have complementary or reinforcing effects?
The second group of questions pertains to whether there is necessarily one
international order, or multiple orders. For example, are there separate
security and economic orders, as some claim?82 What are the implications
for hegemonic orders? What happens if one domain is hegemonic and the
other post-hegemonic? Do hegemons have to enjoy full-spectrum hegem-
ony? Moreover, what does the domain differentiation entail for studying
how hegemonic orders change? We know from previous examples that
hegemonic decline can happen in different domains at different junctures.
Britain’s military decline was marked from the Suez crisis in the 1950s, but
its economic decline was not manifest until the oil crisis of the 1970s, and
its institutional decline arguably not until it loses its place on the UN
Security Council and the Council of Europe. How might we study inter-
active effects across the three domains? Where might the tipping points be,
at which a seemingly discrete event or shift could alter the form and con-
tent of the entire order? These questions highlight the richness of the
remaining agenda for the third wave of international hegemony research.
Acknowledgements
The author particularly thanks Dan Nexon, Rosemary Foot, Jim Rolfe, and the anonymous
referees at Security Studies for their helpful comments.
82
G. John Ikenberry, “Between the Eagle and the Dragon: America, China, and Middle State Strategies in East
Asia,” Political Science Quarterly 131, no. 1 (Spring 2016): 9–43, https://doi.org/10.1002/polq.12430.