This article published today in the NewYork Times talks about the inevitability of China's super power status in the near future. I am talking at least in terms of the economic clout it enjoys over its trading partners, which technically speaking is the whole industrialized and developing world.
The article talks about how Indonesian factories have not been able to compete with their Chinese counterparts despite keeping up with the Japanese and Koreans in the past. China, as pointed out in the article is no longer just a regular developing nation. Instead, its economic strength and potential is matched by none. Its Asean trading partners run billions of dollars of debt each year and have to live under China's clout concerning all their trade and foreign policy decisions. However, China is becoming more notorious by the day and it is finding it harder to cast itself as a friendly alternative to an imperious American superpower.
Many Asian nations are finding it hard to compete with the Chinese economy. Vietnam and India have devalued their currencies to keep up. However, the most important point to understand is that there is no way to control China since it dominates the world trade and many nations run trade deficits with China. It is an inevitability that all nations need to deal with, rather than pointing fingers at China.
3 comments:
There is no doubt that China today is very different from China ten years ago. China is definitely the leader in the trade sector, and it is to become the world’s largest superpower relatively soon. I think that there are not that many things that can stop China from achieving its goals, because China is very focused on its economic growth and is willing to make sacrifices now to benefit in the future.
China is and will definitely remain a very hot topic in the next coming years regarding its economic growth. China's economic growth is not necessarily a negative thing which most countries seem to think but it can actually help many Asian countries in the region.
I think Bushra is right in saying that China's growth is going to help its fellow Asian and even European countries. This is because these nations would get an alternative from the likes of the current superpower, the United States of America. Policy makers in the US are scared of the inevitable might of the Chinese people, hence they have failed to re evaluate its currency to keep China on the bay. But for how long???
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