Rise and Fall of Chinese Economic Diplomacy
Having grown to be a global economic power, China understands that all major states must modernize and join the World Trade Organization (WTO) in order to maintain their position as world powers.
In other words, as a state power today, based on sustainable economic growth, China recognizes that all major states need to modernize and integrate into the globalized capitalist system and if a country wants to be a global power it will have no choice but to join the World Trade Organization.
Many believe that the most important challenge for the United States is to convince China that its interest in maintaining the international trading system responsible for its economic rise and takes an active leadership role in maintaining it and that economic and trade reforms are the most secure way for China to grow and modernize its economy.
Some people use this logic that the sensible U.S. response in the short term is containment and confrontation, if possible, but what they need in the long term is to promote a peaceful transformation of China.
Well, there is a difference in the way Chinese scholars and analysts think about their own position on the global stage compared to the United States on two levels in the sense that the scientific and analytic community feels comfortable more recognizing China’s own mistakes and the extent to which they believe that the U.S. can recover.
41% of China’s aging population will need more resources for social services with an economy that is 30% less productive than the world’s high performing economies like the United States, Japan, and Germany according to the IMF and this will weigh on governments” ability to support growth through government expenditure and investment in the state sector.
The net effect of these shifts has been to weaken the role that trade and investment relations have played in containing political and security tensions in United States-China relations.
Both the United States and China have demonstrated their willingness and ability to provide public goods to support a global open economic system.
This has led to the relocation of investment and factories from China to other countries in South-East Asia, North Africa and Europe.
China’s economic growth model emphasizes the growth of heavy industry, which is too energy intensive and polluting for the Chinese government.
China has gained too much confidence on the international stage, and as a result, distrust is undermining its rise to global leadership.