CFAU President Wang Fan Analyses China's Neighbourhood Diplomacy Approach
Plus: State Council Worried About Employment & China-Cambodia Joint Statement Offers Details on Implementing GSI
In today’s paper, I didn’t find anything particularly interesting until I got to Page 9. There is an article by Wang Fan, President of China Foreign Affairs University, which comes directly under the Ministry of Foreign Affairs. The article discusses the outcomes of the Central Conference on Neighbourhood/Peripheral Work. So, I am doing a deep dive of this piece below.
Wang writes that at the recent neighbourhood affairs work conference, Xi “systematically planned an action program for building a neighbourhood community of shared future…China will maintain the continuity and stability of neighbourhood foreign policy, join hands with neighbouring countries to strengthen friendly cooperation, and create a new future for Asia.” 在2025年4月举行的中央周边工作会议上，以习近平同志为核心的党中央立足中华民族伟大复兴战略全局和世界百年未有之大变局，以宏阔的历史眼光和深邃的战略思维，系统擘画构建周边命运共同体的行动纲领，强调要聚焦构建周边命运共同体，努力开创周边工作新局面。我国将保持周边外交政策的延续性和稳定性，携手周边国家加强友好合作，开创亚洲新未来.
Wang begins by saying that China “has a vast territory and a long border, and its surrounding areas are the strategic support for its development.” 我国幅员辽阔、边界线长，周边是我国发展的战略依托. He adds that as per the conference, “the neighbourhood is a vital foundation for national development and prosperity, a key front for safeguarding national security, a priority area in the country’s overall diplomacy, and a crucial link in building a community with a shared future for humanity.” Wang expands on this:
China views the neighbouring region as an important foundation for achieving development and prosperity, deeply reflecting the strategic thinking of ‘using the periphery to promote the overall situation.’ By deepening regional cooperation, especially through high-quality joint construction of BRI, the RCEP and other mechanism platforms, China has formed a regional economic community with neighbouring countries that integrates interests and links development. The view of the neighbourhood as a key front for safeguarding national security highlights the great significance of cooperation between China and neighbouring countries for security and stability. The periphery being positioned as the priority area for the country’s overall diplomacy is both a transcendence of the traditional ‘power politics’ based diplomatic thinking and is consistent with the “adhering to the principles of amity, sincerity, mutual benefit, inclusiveness, and the policy of forging friendship and partnership with neighbouring countries’ proposed in the report of the 20th Party Congress. The view of the neighbourhood as ‘key to promoting the building of a community with a shared future for mankind’ emphasises ‘mutual benefit and win-win’, transcending traditional geopolitical theory. China views the periphery as partners rather than competitors, which reflects the theoretical innovation of new type of international relations and is a vivid practice of the global governance concept of consultation, joint construction and shared benefits, contributing ‘promoting stability through cooperation’ as Eastern wisdom to the transformation of the international order, responding to the contemporary needs of global governance system reform. 中央周边工作会议指出：“周边是实现发展繁荣的重要基础、维护国家安全的重点、运筹外交全局的首要、推动构建人类命运共同体的关键。”我国将周边视为实现发展繁荣的重要基础，深刻体现了“以周边促全局”的战略思维。深化区域合作，特别是通过高质量共建“一带一路”、《区域全面经济伙伴关系协定》等机制平台，我国与周边国家形成了利益融通、发展联动的区域经济共同体。“维护国家安全的重点”彰显了我国与周边国家合作对于安全稳定的重要意义。周边被定位为外交全局的“首要”，既是对传统“强权政治”外交思维的超越，也与党的二十大报告中提出的“坚持亲诚惠容和与邻为善、以邻为伴周边外交方针，深化同周边国家友好互信和利益融合”一脉相承。“周边是推动构建人类命运共同体的关键”强调“互利共赢”，超越了传统地缘政治理论，我国将周边视为合作伙伴而非竞争对象，体现了新型国际关系的理论创新，是共商共建共享的全球治理观的生动实践，为变革国际秩序贡献了“以合作促稳定”的东方智慧，回应了全球治理体系改革的时代需求.
Wang adds: China’s neighbourhood work practice has broken through the shackles of the Western ‘centre-periphery’ theory, created a new paradigm of regional development with multipolar linkage, and provided an important model of regional practice for building a community with a shared future for mankind. 中国周边工作实践突破了西方“中心—边缘”理论桎梏，创造多极联动的区域发展新范式，为构建人类命运共同体提供了区域实践的重要范本.
The next section of the article deals with security issues. I thought this next bit is conceptually interesting but weak in terms of the evidence that is presented. Just look at the nature of friction between China and the Philippines in the South China Sea and the security failures and political instability in Pakistan.
Wang begins by picking this bit from the conference on neighbourhood work, i.e. “pursue the Asian security model that features sharing weal and woe, seeking common ground while shelving differences, and prioritising dialogue and consultation as strategic support, join hands with neighbouring countries to jointly create a better future”. Wang argues that this framing “deeply grasps the dialectical relationship between development and security, combines the concept of ‘harmony and coexistence’ from Chinese traditional culture with the practice of contemporary international relations, and creates a new realm of regional security governance, providing Eastern wisdom for solving the global security dilemma.” 中央周边工作会议提出“安危与共、求同存异、对话协商的亚洲安全模式”，深刻把握发展与安全的辩证关系，将中国传统文化中“和合共生”理念与当代国际关系实践相结合，开创了区域安全治理的新境界，为破解全球安全困境提供了东方智慧.
“‘Sharing weal and woe’ reflects a sense of community of interests in security issues, transcending the zero-sum game mentality of traditional geopolitics; ‘seeking common ground while shelving differences’ demonstrates the breadth of mind for diverse civilisations to learn from and accommodate each other, breaking through the homogenisation tendency in Western security concepts; ‘dialogue and consultation’ establishes a paradigm for resolving disputes through consultation, abandoning the practices of power politics and unilateralism. The Asian security model of sharing weal and woe, seeking common ground while shelving differences, and dialogue and consultation is an important component of Xi Jinping’s Thought on Diplomacy, as well as a concrete proposition and important measure for building the security dimension of a community with a shared future for mankind.” “安危与共”体现了安全问题上的利益共同体意识，超越了传统地缘政治中的零和博弈思维；“求同存异”彰显了多元文明互鉴互容的胸怀，突破了西方安全观中的同质化倾向；“对话协商”树立了以协商方式解决争端的范式，摒弃了强权政治、单边主义的做法。安危与共、求同存异、对话协商的亚洲安全模式是习近平外交思想的重要内容，也是构建人类命运共同体安全维度的具体化主张和重要举措.
The Asian security model is based on Marxist dialectical materialism and historical materialism, absorbs the political wisdom of ‘harmony among all nations’ from Chinese civilisation, and integrates the practical innovation of major-country diplomacy with Chinese characteristics in the new era. It has achieved transcendence over traditional security theories dominated by hegemony and provides a Chinese solution with global significance for global security governance. For example, in the consultation on the South China Sea ‘Code of Conduct’, China has always insisted on properly handling and resolving differences through friendly consultation, working with neighbouring countries to jointly maintain peace and stability in the South China Sea; since China took over the rotating presidency of the SCO, it has successively hosted the SCO Regional Anti-Terrorism Structure Council meeting, the meeting of heads of border agencies, joint anti-terrorism exercises, and other events, further strengthening security cooperation and mutual trust among member states. These innovative practices provide important reference for building a more just and reasonable international order, and demonstrate China’s sense of mission and global outlook as a responsible major country.亚洲安全模式立足于马克思主义辩证唯物主义和历史唯物主义，吸收中华文明“协和万邦”的政治智慧，融合新时代中国特色大国外交的实践创新，实现了对霸权主导的传统安全理论的超越，为全球安全治理提供了具有世界意义的中国方案。比如，在“南海行为准则”磋商中，我国始终坚持以友好协商的方式妥善处理和化解分歧，与周边国家一道共同维护南海的和平与稳定；中方接任上合组织主席国以来，先后主办上合组织地区反恐怖机构理事会会议、边防部门负责人会议、联合反恐演习等，进一步加强成员国安全合作与互信；等等。这些创新性实践为构建更加公正合理的国际秩序提供了重要借鉴，展现了中国负责任大国的使命担当和世界情怀。
China unifies security guarantees with development cooperation, constructing a comprehensive, multi-level, and three-dimensional regional security and development community through the deep integration of high-quality joint construction of the BRI cooperation and regional security architecture, making development promote security and security safeguard development a reality. While the China-Laos Railway brings economic growth, its ‘train + police’ model has significantly reduced border smuggling cases; the construction of CPEC has fundamentally improved the economic soil where extremism breeds. This has effectively responded to the security threats faced by the neighbourhood while injecting lasting momentum into regional development, demonstrating the theoretical confidence and practical innovation of major-country diplomacy with Chinese characteristics. 中国将安全保障与发展合作相统一，通过高质量共建“一带一路”合作等与区域安全架构的深度融合，构建起全方位、多层次、立体化的区域安全发展共同体，使发展促安全、安全保发展成为现实。中老铁路带来经济增长的同时，其“班列+警务”模式使边境偷渡案件大幅下降；中巴经济走廊建设，使极端主义滋生的经济土壤得到根本改善。这既有效应对了周边所面临的安全威胁，又为区域发展注入了持久动力，彰显了中国特色大国外交的理论自信与实践创新.
The third section of the article draws from the conference readout on working with countries while they pursue their own development paths and strengthening industrial chain and supply chain cooperation. Wang writes:
“China has signed cooperation agreements on jointly building BRI with 25 neighbouring countries and has become the largest trading partner of 18 countries…Through carriers such as cross-border economic cooperation zones and international industrial capacity cooperation, a regional community of shared interests with common development as the core has been built, and the development achievements of Chinese-style modernisation have increasingly benefited neighbouring countries.”
China’s development cooperation with its neighbours has surpassed the traditional Western ‘aid dependence’ model, and has constructed a ‘blood production–blood activation–circulation’ 造血—活血—循环 autonomous development system, providing a Chinese solution for the vast number of developing countries to resolve the ‘growth paradox’. In the construction of the Jakarta-Bandung high-speed railway in Indonesia, ‘four transformations’ were achieved, from equipment export to technology transfer, from engineering contracting to standard output, from project management to talent co-cultivation, and from project income to people’s livelihood improvement, creating a vivid example of a railway changing the development ecology; the annual throughput of Pakistan’s Gwadar Port exceeded one million tons, and the supporting vocational and technical training centre has trained a large number of excellent local employees, truly realising ‘teaching people how to fish’ ... it provides a new path for developing countries to get rid of their dependence on the West. 中国与周边发展合作超越了西方传统的“援助依赖”模式，构建起“造血—活血—循环”的自主发展体系，为广大发展中国家破解“增长悖论”提供了中国方案。印尼雅万高铁建设中实现“四个转变”——从设备出口转向技术转移、从工程承包转向标准输出、从项目管理转向人才共育、从项目收益转向民生改善，创造了一条铁路改变发展生态的生动范例；巴基斯坦瓜达尔港年吞吐量突破百万吨，配套建设的职业技术培训中心培养了大量优秀的本地员工，真正实现了“授人以渔”……为发展中国家摆脱对西方依附提供了全新路径.
The fourth section deals with this conclusion from the conference’s readout: “China’s relations with its neighbouring countries are currently at their best in modern times, and are also entering a critical phase where regional dynamics and global transformations are deeply intertwined.”
Wang writes:
“From the historical perspective, since modern times, China’s relations with neighbouring countries have long been constrained by the dual shackles of the Western colonial system and the Cold War structure, whereas today’s regional cooperation pattern is a new type of international relations formed in the background of peaceful development, reflecting a historic shift from ‘passive response’ to ‘proactive shaping’. From the perspective of world development, ‘entering a critical phase where regional dynamics and global transformations are deeply intertwined’ reveals the dialectical relationship between regional governance and global governance. China’s relations with neighbouring countries not only concern the welfare of regional countries but also have an important impact on promoting human civilisation progress and common development of the world. From the practical perspective, the Neighbourhood Work Conference pointed out ‘coordinating the two major situations of domestic and international, and the two major matters of development and security,’ which breaks the theoretical limitations of the traditional ‘domestic-international’ dichotomy in international politics, constructing a strategic framework that links internal and external factors and coordinates all aspects. 从历史维度看，近代以来我国同周边关系曾长期受制于西方殖民体系和冷战格局的双重桎梏，而今天的区域合作格局是在和平发展背景下形成的新型国际关系，体现了从“被动应对”到“主动塑造”的历史性转变。从世界发展维度来看，“进入周边格局和世界变局深度联动的重要阶段”揭示了地区治理与全球治理的辩证关系，我国同周边关系不仅关乎区域国家福祉，而且对推动人类文明进步、世界共同发展具有重要影响。从实践维度看，中央周边工作会议指出“统筹国内国际两个大局、发展安全两件大事”，这打破了传统国际政治学中“国内—国际”二分法的理论局限，构建起内外联动、统筹兼顾的战略框架.
Maintaining peripheral security is the front line of national security. The synergy of the ‘two major matters’ is an important practical requirement of the comprehensive national security concept. Through coordinating development and security, strengthening the national security barrier, a new regional governance theoretical framework that promotes security through development and integration through cooperation has been formed. This framework organically combines real economic elements such as infrastructure interconnection, deep industrial integration, and financial innovation cooperation with institutional cooperation mechanisms, realises the benign interaction between material foundation and rule system, and creates a new path for developing countries to participate in international economic cooperation. 维护周边安全是国家安全的前沿阵地。“两件大事”的协同是总体国家安全观的重要实践要求。通过统筹发展与安全，筑牢国家安全屏障，形成了以发展促安全、以合作促融合的新型区域治理理论框架。这一框架将基础设施互联互通、产业深度融合、金融创新合作等实体经济要素与制度性合作机制有机结合，实现了物质基础与规则体系的良性互动，打造了发展中国家参与国际经济合作的新路径.
General Secretary Xi Jinping pointed out: ‘To build a community with a shared future for mankind, we must start from Asia.’ China has creatively positioned the neighbourhood as the key to promoting the building of a community with a shared future for mankind, breaking through the traditional mindset of the ‘buffer zone’, reaching consensus with 17 neighbouring countries on building a community of shared future, and forming two major clusters of shared future communities in the Indochina Peninsula and Central Asia, achieving a historic transformation from a traditional ‘security buffer zone’ to a ‘highland of development and prosperity’, and solving the traditional dilemma of geopolitics; China’s political mutual trust and interest integration with neighbouring countries continue to deepen. 习近平总书记指出：“构建人类命运共同体，首先要从亚洲做起。”中国创造性地将周边定位为推动构建人类命运共同体的关键，突破传统“缓冲带”思维，同周边17国达成构建命运共同体共识，在中南半岛和中亚地区形成命运共同体“两大集群”，实现了从传统“安全缓冲区”向“发展繁荣高地”的历史性转变，破解了传统的地缘政治困境，我国同周边国家政治互信与利益融合不断深化.
The final section talks about the construction of the ‘five major homes’ of peace, tranquility, prosperity, beauty and friendship, arguing that this regional governance plan with Chinese characteristics. Wang writes:
“From the theoretical level, the ‘five major homes’ has achieved a triple transcendence: transcended the power view of zero-sum game, establishing a cooperation view of joint consultation, joint construction and shared benefits; transcended the narrow perspective of single security or economic dimension, establishing a comprehensive coordinated multi-dimensional governance framework; transcended the value presupposition of Western centrism, forming an inclusive discourse system of multiple civilizations’ coexistence. The blueprint for building the ‘five major homes’, uses Eastern wisdom to answer the questions of the times, uses Chinese solutions to break through development situations, marking the theoretical coordinates for building a community with a shared future for the neighbourhood.” 从理论层面看，“五大家园”实现了三重超越：超越了零和博弈的权力观，确立了共商共建共享的合作观；超越了单一安全或经济维度的狭窄视角，建立了综合协调的多维治理框架；超越了西方中心主义的价值预设，形成了多元文明共生的包容性话语体系。“五大家园”建设蓝图，以东方智慧解时代之问，用中国方案破发展之局，为构建周边命运共同体标注了理论坐标.
“At a practical level, the construction of the ‘five major homes’ transforms grand ideas into operational action plans through multi-level and multi-field institutional arrangements and cooperation mechanisms. Through economic means, such as jointly building high-standard free trade zones, strengthening stable cooperation in regional industrial chains and supply chains, and building cross-border economic cooperation zones, a regional development community of interests is created; through joint prevention and control in border areas, coordinated governance of transnational rivers, and ecological and environmental protection cooperation, a platform for coordinated governance of security and ecology is built; through the construction of soft power such as cultural exchanges, educational cooperation, and people-to-people exchanges, the public opinion foundation for regional cooperation is consolidated.” 从实践路径看，“五大家园”建设通过多层次、多领域的制度安排和合作机制，将宏大理念转化为可操作的行动方案。通过共建高标准自贸区、加强区域产业链供应链稳定合作、建设跨境经济合作区等经济手段，打造区域发展利益共同体；通过边境地区联防联控、跨国河流协同治理、生态环保合作等方式，构建安全与生态协同治理平台；通过人文交流、教育合作、民间往来等软实力建设，夯实区域合作的民意基础.
Next, let me cover three key reports from the weekend.
First, the State Council’s Executive Meeting discussed measures aimed at stabilising employment, boosting economic growth, and advancing high-quality development. The meeting also discussed and approved a draft social assistance law and a revised draft of the regulations on the protection of new plant varieties.
“The meeting pointed out that, in the face of a complex and severe external environment, it is necessary to deeply implement the deployments of the Central Economic Work Conference, increase efforts to implement the policy measures specified in the Government Work Report, anchor the goals of economic and social development, intensify counter-cyclical adjustments, focus on stabilizing employment and foreign trade, focus on promoting consumption and expanding domestic demand, focus on optimizing structure and improving quality, strengthen domestic circulation, and promote high-quality economic development. Enterprises should be encouraged to actively stabilize employment, strengthen vocational skills training, expand support such as work-for-relief, and enhance public employment services. It is necessary to stabilize the development of foreign trade and foreign investment, increase support for each industry and each enterprise, and support foreign-funded enterprises to reinvest in China. It is necessary to promote service consumption, such as elderly care, childbirth, culture, and tourism, expand effective investment, and vigorously boost the enthusiasm of private investment. Efforts should be made to continuously stabilize the stock market, and continuously promote the stable and healthy development of the real estate market. Once related measures are introduced, they must directly reach enterprises and the people, improve implementation efficiency, and ensure implementation effectiveness. 会议指出，面对复杂严峻的外部环境，要深入贯彻中央经济工作会议部署，加力落实《政府工作报告》明确的政策措施，锚定经济社会发展目标，加大逆周期调节力度，着力稳就业稳外贸，着力促消费扩内需，着力优结构提质量，做强国内大循环，推动经济高质量发展。要鼓励企业积极稳定就业，加大职业技能培训力度，扩大以工代赈等支持，加强就业公共服务。要稳定外贸外资发展，一业一策、一企一策加大支持力度，支持外资企业境内再投资。要促进养老、生育、文化、旅游等服务消费，扩大有效投资，大力提振民间投资积极性。要持续稳定股市，持续推动房地产市场平稳健康发展。相关举措一旦推出，要直达企业和群众，提高落地效率，确保实施效果.
In order to boost consumption, the report further talks about addressing issues raised in the March 15 consumer rights protection gala on CCTV and crack down on illegal activities to assuage public concerns.
Second, the China-Cambodia joint statement was published in Saturday’s paper (English text). This one has specific sections on GDI, GSI and GCI. Some key points:
1. China and Cambodia have established a 2+2 dialogue mechanism; they support each other on core interests and oppose foreign interference in internal affairs; Cambodia adheres to the one-China principle; and there is broad agreement demonstrated on issues of multilateralism, etc.
2. Under the GDI section:
They both “firmly oppose trade protectionism, and are committed to maintaining a predictable, rule-based, transparent, non-discriminatory, open and inclusive multilateral trading system with the WTO at its core.”
Both sides decided to expedite the Industrial and Technological Corridor planning for substantial progress.
Both sides agreed to give full play to the role of the China-Cambodia railway cooperation mechanism, jointly formulate the overall plan of Cambodia’s railway network, and identify key cooperation projects. Both sides agreed to strengthen cooperation in transportation infrastructure such as commercial aircraft.
The section talks about agricultural cooperation, building safe and stable industrial and supply chains, energy cooperation, AI cooperation, livelihood projects and combating climate change.
The two sides will expand the use of their own currencies in bilateral trade and investment, support eligible Cambodian commercial banks to join the RMB cross-border interbank payment system (CIPS), and agree to promote cooperation in the interconnection of QR code in cross-border payment.
3. The GSI section says:
Both sides further agree to strengthen exchanges and collaboration against interference, secession and ‘colour revolution’ in order to safeguard security and social order in the two countries.
The two sides agreed to give full play to the role of the military cooperation mechanism, maintain exchanges at all levels, deepen cooperation in education and training, joint exercises and training, medical and health services, equipment and technology, and strengthen coordination on multilateral security affairs. Cambodia highly appreciates China’s support for the smooth operation of the China-Cambodia Ream Port Joint Support and Training Center, which helps enhance Cambodia’s ability to safeguard national sovereignty, security and development interests.
The document talks about law-enforcement cooperation with regard to illegal online gambling, online fraud, human trafficking, counterfeiting and smuggling. They agreed to accelerate the negotiation and signing of a mutual legal assistance treaty in criminal matters and strengthen security work for the construction of BRI to ensure the safety of major cooperation projects in Cambodia.
“Both sides reaffirmed the importance of maintaining peace and stability in the Asia-Pacific region, opposed the formation of exclusive ‘small circles’ and the creation of bloc confrontation, and opposed the proliferation of nuclear weapons and the deployment of missiles, believing that this would trigger an arms race and endanger regional peace and stability. Both sides agreed to promote the building of an Asia-Pacific community with a shared future and make more contributions to the stability and prosperity of the Asia-Pacific region.”
The section also covers human rights cooperation, adding that both “firmly oppose any country using human rights and democracy as an excuse to interfere in the internal affairs of other countries, inciting division and confrontation, and imposing its will on other countries.”
The section also covers mines-related cooperation, emergency and disaster relief and mentions resolving the South China Sea issue.
The GCI section covers cultural cooperation, tourism, connectivity, cultural heritage protection, education cooperation, labour collaboration, cooperation on youth affairs, between think tanks and media, etc.
Third, there’s a report informing that in Q1 of 2025, 12,603 new foreign-invested enterprises were established in China, representing a year-on-year growth of 4.3%. FDI inflow for the period was 269.2 billion yuan ($37.35 billion), down 10.8% year on year. In terms of sectors, FDI in manufacturing and services was 71.51 billion yuan and 193.33 billion yuan, respectively.