Abstract
Why does China select different reform path in the US-dominated international institutions? Based on the combination of social network theory and a theory of gradual institutional change, this paper argues that two factors are determinants of rising country’s path selection, namely the network power of the established country and the ambiguity of the existing international institutions. In the cross-border interbank payments area, the American strong network power and high ambiguity of the Society for Worldwide Interbank Financial Telecommunication (SWIFT) make China choose the path for layering the system. In the area of internet-assigned names, the American strong network power and low ambiguity of the Internet Corporation for Assigned Name and Number (ICANN) induce China to choose the path for avoiding the system. In terms of development finance, the American weak network power and low ambiguity of the World Bank make China choose the path for displacing the system.
This is a preview of subscription content, log in via an institution to check access.
Similar content being viewed by others
Notes
Japan, Iran and other countries were forced to reduce theor oil imports from Iran because of the American pressure on the SWIFT.
References
Barnett, Michael, and Raymond Duvall. 2005. Power in international politics. International Organization 59 (1): 39–75.
Belt and Road Forum. 2019. Xi Jinping meets with Ethiopian Prime Minister Abiy [习近平会见埃塞俄比亚总理阿比]. http://www.beltandroadforum.org/n100/2019/0424/c24-1163.html. Accessed 8 Sept 2022.
Boston University Global Development Policy. n.d. China’s overseas development finance. https://www.bu.edu/gdp/chinas-overseas-development-finance/. Accessed 25 December 2021.
Chen, Zheng [陈拯]. 2020. Reforming existing regimes or creating new ones: Choosing strategies of international institutional contests [改革与建制之间: 国际制度竞争的策略选择]. World Economics and Politics [世界经济与政治] 4: 81–109.
China Academy of Information and Communications. 2020. Global digital governance white paper [全球数字治理白皮书 (2020年) ]. http://www.caict.ac.cn/english/research/whitepapers/202101/P020210122488524125021.pdf. Accessed 8 Sept 2022.
Dabler, Benjamin, Andreas Kruck, and Bernhard Zangl. 2019. Interactions between hard and soft power: The institutional adaptation of international intellectual property protection to global power shifts. European Journal of International Relations 25 (2): 588–612.
Fang, Binxing [方滨兴]. 2014. Talking about the autonomous root domain name resolution system based on national alliance from the viewpoint of “national network sovereignty” [从“国家网络主权”谈基于国家联盟的自治根域名解析体系]. http://www.xinhuanet.com/politics/2014-11/27/c_127255092.htm. Accessed 10 Oct 2022.
Farrell, Henry, and Abraham Newman. 2019. Weaponized interdependence: How global economic networks shape state coercion. International Security 44 (1): 42–79.
Feng, Qiyun [冯其予]. 2021. China has Signed 205 cooperation documents on the joint construction of the Belt and Road [我国已签署共建“一带一路”合作文件205份]. China News. https://www.chinanews.com/cj/2021/01-30/9400238.shtml.
Hafner-Burton, Emilie, Miles Kahler, and Alexander Montgomery. 2009. Network analysis for international relations. International Organization 63 (3): 559–592.
IANA Stewardship Transition Coordination Group (ICG). 2016. Proposal to transition the stewardship of the internet assigned number authority (IANA) functions from the US Commerce Department’s National Telecommunications and Information Administration to the global multi-stakeholder community. https://www.icann.org/en/system/files/files/iana-stewardship-transition-proposal-10mar16-en.pdf. Accessed 10 Oct 2022.
Internet World Stats. n.d. Internet usage statistics. https://www.internetworldstats.com/stats.htm, Accessed 25 December 2021.
Lipscy, Phillip. 2017. Renegotiating the world order: Institutional change in international relations. Cambridge: Cambridge University Press.
Liu, Hongsong [刘宏松], and Tong Wu [吴桐]. 2021. Interstate arguing, critical juncture and international institution reform [国家间论辩、关键节点与国际制度改革]. World Economics and Politics [世界经济与政治] 9: 4–30.
Mahoney, James, and Kathleen Thelen. 2010. Explaining institutional change: Ambiguity, agency and power. Cambridge: Cambridge University Press.
Morgenthau, Hans J. 2006. Politics among nations: The struggle for power and peace [国家间政治:权力斗争与和平]. Beijing: Peking University Press.
Office of the Secretary of Defense. 2018. Annual report to Congress: Military and security development involving the People’s Republic of China 2018. https://media.defense.gov/2018/Aug/16/2001955282/-1/-1/1/2018-CHINA-MILITARY-POWER-REPORT.PDF. Accessed 10 Oct 2022.
Ren, Lin [任琳], and Zhenmin Sun [孙振民]. 2021. Securitization of economic issues and the network power of hegemony [经济安全化与霸权的网络性权力]. World Economics and Politics [世界经济与政治] 6: 83–109.
Rixen, Thomas, Lora Anne Viola, and Michael Zurn (eds.). 2016. Historical institutionalism and international relations: Explaining institutional development in world politics. Oxford: Oxford University Press.
Shanghai Security News. 2020. The ranking of global payment currencies rose to fifth, and the internationalization of RMB was steadily promoted [全球支付货币排名升至第五 人民币国际化稳步推进]. https://news.cnstock.com/news,yw-202007-4567716.htm.
Shields, Michael. 2015. ECB’s Nowotny opposes ejecting Russia from SWIFT system. Reuters. https://www.Businessinsider.com/r-ecbs-nowotny-opposes-ejecting-russia-from-swift-system-report-2015-2.
SWIFT. 2016. SWIFT offers secure financial messaging services to CIPS. https://www.swift.com/zh-hans/node/21786. Accessed 10 Oct 2022.
The People’s Bank of China. 2015. 2015 RMB internationalization report [人民币国际化报告(2015年)]. www.pbc.gov.cn/eportal/fileDir/image_public/UserFiles/goutongjiaoliu/upload/File/人民币国际化报告 (2015年) .pdf. Accessed 10 Oct 2022.
The University of Toronto. 2010. 2nd BRIC summit of heads of state and government: Joint statement. http://www.brics.utoronto.ca/docs/100415-leaders.html. Accessed 10 Oct 2022.
The University of Toronto. 2012. Fourth BRICS summit: Delhi Declaration. http://www.brics.utoronto.ca/docs/120329-delhi-declaration.html. Accessed 10 Oct 2022.
Tillerson, Rex. 2017. Defining our relationship with India for the next century. Center for Strategic and International Studies. https://www.csis.org/analysis/defining-our-relationship-india-next-century-address-us-secretary-state-rex-tillerson. Accessed 10 Oct 2022.
Vestergaard, Jakob, and Robert Wade. 2013. Protecting power: How western states retain the dominant voice in the World Bank’s governance. World Development 46 (3): 153–164.
Wang, Xiaoquan [王晓泉]. 2021. Analysis on the background of de-dollarization of Sino-Russian payment and settlement system and prospect of RMB settlement [中俄结算支付体系“去美元化”背景与人民币结算前景分析]. Russian, East European & Central Asian Studies [俄罗斯东欧中亚研究] 2: 10–32.
World Bank. 2014a. World Bank Group President Jim Yong Kim press conference transcript [世界银行集团行长金墉记者会实录]. https://www.shihang.org/zh/news/speech/2013/07/08/press-conference-world-bank-group-president-jim-yong-kim-ifc-ceo-jin-yong-cai-beijing. Accessed 10 Oct 2022.
World Bank. 2014b. Supporting development programs effectively-applying the comprehensive development framework principles: A staff guide. http://web.worldbank.org/archive/website01013/WEB/IMAGES/DEVELOPM.PDF. Accessed 10 Oct 2022.
World Bank. n.d. a. Country strategy documents. https://openknowledge.worldbank.org/handle/10986/23098. Accessed 25 December 2021.
World Bank. n.d. b. IDA’s performance-based allocation system for IDA16. http://www5.worldbank.org/ida/CPR/Annex_2_IDA16.pdf. Accessed 10 December 2021.
Xi, Jinping. 2017. Report at the 19th National Congress of the Communist Party of China. http://www.xinhuanet.com/english/special/2017-11/03/c_136725942.htm. 18 October 2017.
Xiao, Lian [肖炼]. 2017. “The Belt and Road” and “the economic game between China and US” [“一带一路”与“中美经济博弈”]. Pacific Journal [太平洋学报] 25(2): 98–106.
Xinhua Net. 2016. Has America relinquished control of the internet? [美国真的放弃互联网控制权了吗]. http://www.xinhuanet.com/world/2016-10/02/c_1119659844.htm.
Xinhua Net. 2019. SWIFT’s wholly-owned Chinese legal entity was established [SWIFT全资中国法人机构成立]. China News. https://www.chinanews.com.cn/gn/2019/08-09/8921584.shtml.
Xinhua Net. 2020. China is a responsible financial partner of countries along the Belt and Road [中国是“一带一路”沿线国家负责任的金融合作伙伴]. https://www.yidaiyilu.gov.cn/abzbzd/dyj/nbxth/xgyd/137669.htm.
Xinhua News Agency. 2015. Vision and actions to promote the joint construction of the Silk Road Economic Belt and the 21st-century Maritime Silk Road [推动共建丝绸之路经济带和21世纪海上丝绸之路的愿景与行动]. http://www.gov.cn/xinwen/2015-03/28/content_2839723.htm.
Xu, Qiyuan [徐奇渊]. 2020. Why can’t China be kicked out of SWIFT as a whole? [为什么中国不可能被整体踢出SWIFT?] Finance 40 Forum. http://www.cf40.com/news_detail/10530.html.
Xu, Wenhong [许文鸿]. 2019. The SWIFT system: A focus in the game of the US–Russia financial conflicts [SWIFT系统: 美俄金融战的博弈点]. Russian, East European & Central Asian Studies [俄罗斯东欧中亚研究] 6: 17–32.
Yu, Bowen [余博闻]. 2021. “Reform methodology” and the Chinese approach to global governance reform [“改革方法论”与中国的全球治理改革方略]. World Economics and Politics [世界经济与政治] 10: 105–129.
Zhang, Yinan [张翼南]. 2002. China proposes to reform the ICANN system and proposes establishment of an independent international institution [中国建议改革ICANN体制 提出建立独立国际性机构]. People’s Daily. http://tech.sina.com.cn/i/w/2002-11-23/1046151724.shtml.
Zhu, Jiejin [朱杰进]. 2020. Rising power’s path selection in international institutional change [崛起国改革国际制度的路径选择]. World Economics and Politics [世界经济与政治] 6: 75–105.
Funding
Shanghai Office of Philosophy and Social Science, 2020BGJ001, Jiejin Zhu.
Author information
Authors and Affiliations
Corresponding author
Ethics declarations
Conflict of interest
The authors declare that there is no conflict of interest regarding the publication of this paper.
Rights and permissions
Springer Nature or its licensor (e.g. a society or other partner) holds exclusive rights to this article under a publishing agreement with the author(s) or other rightsholder(s); author self-archiving of the accepted manuscript version of this article is solely governed by the terms of such publishing agreement and applicable law.
About this article
Cite this article
Zhu, J., Sun, Y. Network power and institutional ambiguity: explaining China’s reform path toward US-dominated international institutions. China Int Strategy Rev. 4, 367–385 (2022). https://doi.org/10.1007/s42533-022-00122-1
Received:
Accepted:
Published:
Issue Date:
DOI: https://doi.org/10.1007/s42533-022-00122-1