Political And Security Risk Analysis Of China

Political And Security Risk Analysis Of China

By David Raja MArpaung S.IP M.Def

SWOT ANALYSIS

Strength:

• China now is the biggest countries with highest economic development. ( From 1989 until 2010, China's average quarterly GDP Growth was 9.31 percent reaching an historical high of 14.20 percent in December of 1992 and a record low of 3.80 percent in December of 1990/ www.tradingeconomics.com)
  
• China goods are cheap that make US very Affraid (www.weforum.org)
  
•  China Entrepreneur playing a role in Bamboo Network that make China has Super Power Economics
  
•  Wages of the worker is cheap. The workforce is still cheap, costing $0.81 an hour, by the authors’ estimates, or just 2.7% of the cost of their American counterparts.
  
• Permanent member of United Nation Security Council
  
• One of the strong military power in the world
  
• Cohessive Power Under Comunis Party
• Smooth Leader Regeneration
• Strong Industry Development
• Strong Culture and Faith to the ancient legacy 

Weakness:

•   Corruption. Example: For 2008, China was ranked 72 of 179 countries by Transparancy International
•    Complex Bureaucracy
•    Environmental damage because of industry
•    Thirsty of Energy
•    Wide gap between rich and poor. The urban per capita net income stood at 17,175 yuan ($2,525) last year, in contrast to 5,153 yuan in the countryside
•     Lack of Democracy

Opportunity

•       Having good bilateral agreement with China
  
•       Free Trade Are and Tarade MOU between ASEAN and China
•       Asian Regionalism,
•        China as Main Market in the worlds
•        Cooperative military industry development
•        Using the "chinese" entrepreneur in Indonesia to attract investment

Threat

•       ASEAN as regional cooperation that become more solid and wanted to  cooperate in multilateralism and not bilateral
•        Border disputes issues
•     South China Sea Conflict Territory
•     Supremacy power competition between US and China in Southeast Asia

However, the consequences for Indonesia are:

• Indonesia will loose competitivenes with China in terms of export goods and foreign investment.
• Because of the Bamboo Network, the capital owned by the Chinese businessman in Indonesia will be fled to China.
• The wages of the worker is cheaper in China than in Indonesia, therefore attracted more investor.
• China will continue aggressively claim Natuna as its territory, to get the natural resources.
•  China has a strong role in world politics arena.
• Indonesia (ASEAN) could involved in resolving border dispute isuess.
• The establishment of Free Trade Area will make Chinese goods entering Indonesia in the large number.

Recommendation

•    Indonesia should be more cooperative with China, considering China as Major economic development
•    To solve problem of border dispute with ASEAN countries, the involved parties should work together in finding solution that will be satisfy all parties involved.
•      Indonesia should strengthen the ASEAN cooperation in order to deal with Chinese.