Questioning China's real achievements (2)

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They will be then be able to acquire the innovation capability and global brands that Shambaugh says the China economy now lacks.

"It is a fast track way for Chinese companies to do this. You can criticize them for not being able to do it themselves but from a business point of view it really makes no difference," he says.

Cheng says Shambaugh is right to highlight that, according to the World Trade Organization, 93.6 percent of China's exports are still manufactured, often low-end, goods but fails to appreciate how much money it has made doing this.

"I know where he is coming from. A lot of Chinese companies just make OEM (original equipment manufacturing) products for other companies and are not very innovative in their own right," he says.

"That is fair comment but they are making a lot of money making these products and all this wealth they have accumulated will take them to the next stage."

Shi Yinhong, professor of international relations and director of the Center for American Studies at Renmin University and one of China's foremost foreign policy experts, says that many of the issues Shambaugh raises are central to the thinking of the Chinese government.

"I think much of this is fully compatible with Chinese leaders' own self-assessment. China has had a dramatic rise but there are a lot of weak spots, particularly internationally and also culturally. I think generally speaking it is a correct assessment that China is a partial power," he says.

Shi, who describes Shambaugh as his "good American friend" and with whom he has shared a number of conference platforms, says that with its rapid emergence, China still has work to do in building relations with the rest of the world, particularly its neighbors.

"I think China has focused too much on defining its relations with the United States in the past three to five years and has not paid enough attention to diplomatic relations with its Asian neighbors," he says.

"Within Chinese universities there is a lot of knowledge of the United States and also Japan but we need to focus much more on developing relations with countries such as Myanmar, India, Mongolia, South Korea and also nations in Southeast Asia. This is where we should build our influence."

Shambaugh argues that one of China's weaknesses is its failure to understand "soft power", a concept associated with Harvard University's Joseph Nye.

He says that China sees it as something that "can be bought with money or built with investment" with an estimated $7 to $10 billion spent per year on "overseas publicity work", according to the author.

James B. Heimowitz, who was hired to work on China's image during the Beijing Olympics when he was president and CEO for North Asia of public relations giant Hill & Knowlton, says attempting to buy soft power is not something that should be derided because it is precisely what a lot of companies do to improve their brand image.

"My view is that those people who have been successful in building their influence, or what is called ‘soft power', have put both resources and money behind it," he says.

"I think if China is putting money against this then it is certainly a step in the right direction. If they are a bit rough around the edges or not as nimble and sophisticated as others in applying that money then they will have to learn how to do it better — but to imply it can't be bought, I disagree."

Zhao Minghao, a research fellow of the China Center for Contemporary World Studies, the Communist Party of China think tank, does see a greater role for Chinese soft power in extending the country's influence in the world.

"Many people here talk about soft power. Even in the Party congress report and the government work report, there is reference to soft power. China has many resources for soft power and they have to find a way to use these resources. "Chinese traditional culture, philosophy, even Chinese food, which is universal like Coca Cola or KFC, is a form of soft power."

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