A Comparative Study Of Relationship Between Citibank And U.S.Government In China Under The Background Of Of Two Globalization Climaxes

The nationality attribute of transnational corporations (TNCs), which involves the relationship between transnational corporations and their nation-states (as their home countries), is an important theoretical issue in international political economics related to transnational corporations. In this dissertation, the author attempts to reflect the nationality attribute of American TNCs, the characteristics of the U.S. transnational corporations' activities in China, the characteristics of the U.S. government policy toward China and the evolution of the relationship between transnational corporations and the U.S. government in China by a historical review and comparative study of the relationship between Citibank and the U.S. government in China in the first globalization climax (from late 19th century to early 20th century) and the second globalization climax (from late 20th century to the beginning of the 21st century).The main points in this dissertation are like the following:1. Against the background of two globalization climaxes, Citibank's U.S. nationality attribute has not changed.During the first globalization climax, Citibank became the legal agency of the U.S. government's loans to China and it actively depended on the U.S. government to obtain privileges and interests. During the second globalization climax, Citibank has become a representative of American transnational corporations, whereas its nationality attribute (a developed capitalist country) still has not changed. In its business activities, it is profoundly marked as a representative of the United States' political, economic, social and cultural interests. U.S. government supports and supervises Citibank's overseas business including that in China in various ways. Citibank's business activities must accord with the fundamental interests of the U.S. Government, or it will be imposed sanctions against by the U.S.Government.Meanwhile, through " going out" strategy——allocating Chinese resources, Citibankcan reinforce the power of the U.S. government in Sino-American relations. For the U.S. government, overseas transnational corporations including Citibank undoubtedly play a huge role in maintaining its top-level position in international division of labor.2. Against the background of different globalization climaxes, profound changes have taken place in the manifestation of the relationship between Citibank and the U.S. government in China, as can be demonstrated by changes from the former collusion between government officials and enterprises businessmen to the present (relative) separation between government and enterprises.During the first globalization climax, the relationship between Citibank and the U.S. government in China was presented by collusion between government officials and enterprises businessmen. On the one hand, because of special Sino-US relations at that time, Citibank actively acted as the financial and political spokesmen of the U.S. government and obtained interests by privileges. On the other hand, Citibank just started its overseas activities. Compared to the banks of U.K. and other capitalist countries, Citibank was weaker. So it had a stronger dependence on the U.S. Government. During that period, in almost every investment activities in China, only with the help of the U.S. Government could Citibank succeeded.During the second globalization climax the relationship between Citibank and the U.S. government in China was more presented by separation. Although Citibank's U.S. nationality attribute has not changed, profound changes have taken place in the relationship between Citibank and the U.S. government in China. The global competition launched by transnational corporations including Citibank has become the most active, the most direct and the most important driving force in globalization. More often than not, Citibank gets development through its own independent activities as well as cooperation with China's domestic banks. In more cases the U.S. government creates a good institutional environment to promote Citibank's development in China (from direct interference to indirect regulation). During this period, in institutional level, Citibank and other U.S. transnational corporations have got louder voice in the decision of U.S. policy toward China.3. The fundamental reason for this change lies in different background of two globalization eras, including changes in the pattern of Sino-US relations.The characteristics of Citibank's development have been determined by international political and economic patterns against the background of two globalization climaxes. The development and changes of the world history can be reflected by different manifestations of the relationship between Citibank and the U.S. government in China in different periods of time. Two economic globalization are committed to the global allocation of capital and other resources and the construction of the global market economy system. The difference lies in that the former possessed inequality and sustainability as a privilege system and it was impacted on by two world wars and national liberation movements in the following decades ,while the latter, based on sublation of the capitalist system during the first globalization climax, allocates resources according to market-oriented principles and competitive advantage. Consequently the latter is more progressive and more sustainable.As far as the U.S. policies toward China in the two globalization climax are concerned, the rights that the U.S. government required to enjoy equally in the Open-door Declaration were privileges which the U.S. government was entitled to in China. However, the U.S. policy toward China contains inherent decolonization ideology and the most-favored-nation principle. During the second globalization Climax, international system is the core of the United States' hegemony system and the main way to maintain its hegemony. Sino-US relations are characterized by a strategical interdependence, developing strategic partnership. During this period, the U.S. economic policy toward China are based on WTO principles which advocates free trade rules. As long as the U.S. do not use force or other means to duress or threaten China, Sino-US relations will be equal or on the way to being equality.In terms of the influence of the background of the two globalization including Sino-US relations pattern on the relationship between Citibank and the U.S. government, more often than not, the U.S. government used Citibank as a direct tool to implement its privileges and policies, and in more cases Citibank used "rent-seeking" means. So the relationship between the two was more like "father and son relationship". Whereas, with the transformation of the pattern of international relations and Sino-US relations and the rising of transnational corporations on the international stage, the relationship between Citibank and the U.S. government is on the way towards a "strategic partnership". In this sense, Citibank is both an American bank and a Chinese "local" one. In the process of China's peaceful rise and Shanghai's march toward international financial center, our government's financial supervisors should take the foreign banks' "dual nature" into account while supervising them so as to bring their positive roles into play.