Saturday, 31 March 2018

Will China Ever Come Close to America Economically?

Can a change in the World Order be possible in coming future? Can China Possibly replace the U.S. as the major superpower of the world?

After the cold war and the disintegration of Soviet Union, America became the only superpower in the world and it has maintained its position till now. 

But things may seem to change due to leadership which the country now has. After the coming of Donald Trump, there is some instability over how the country is performing at the world stage. After Trump signed an executive order, pulling out of Trans-Pacific Partnership, there are concerns over the fading role of U.S.A. at the world stage.
This is because TPP was viewed as a strategy of U.S. to contain China's dominance in trade and now when the Trump's administration has receded from the pact, China's role as a dominant trading power has come into focus.

The U.S.A has also pulled out of the Paris Climate Agreement, stating that the agreement will only bring loss to the country in terms of resources spent. It clearly the lack of leadership qualities which America has shown and indirectly is paving way for China to assume the driving seat.

Donald Trump Policy of "America First" is also not very much helping to the cause. The implication of H1-B Visa and taking steps to stop immigration is also not considered as a welcome move by other countries.

Xi Jinping on his part has become one of the most influential political leaders and his popularity is seen as that of Mao Zedong. He has given a new face to China's in terms of asserting their influence at the Regional and World level.

China has adopted Globalisation not only in its proposed trade deals like the "Regional Comprehensive Economic Partnership" and also by the much anticipated "One Belt One Road Initiative", which seeks to build infrastructure in Asia and other countries.

China is a new kid on the block. It's a rapidly growing country in terms of Economy, Military and other respects. China is exploring new markets in Africa and South Asia.
 It has made Billions of dollars worth investment in Pakistan, Bangladesh and Nepal and Myanmar. It is trying to resolve the conflicts between Bangladesh and Myanmar over the Rohingya Issue and also helped the Maldives Government in their recent Internal Crises. They have even signed a Free trade Agreement with the Maldives. This shows how China is slowly becoming a regional Super Power even replacing India in this respect.

It has even made an investment worth 20.9 Billion dollars in Brazil and other countries of South America.

The Chinese Economy is rapidly growing with the investment made in almost every country to make their presence felt stronger. The Report by Centre for Economics and Business Research in London tells that by 2032, China will surpass U.S.A as the strongest economic power in the world with India and Japan coming on 3rd and 4th respectively.

The household consumption of China as a part of GDP is still low as compared to American Counterpart. As the Chinese middle class is the world's largest, it will significantly boost Chinese economy in the coming years which can give a strong challenge to the U.S. dominance all over the world and a run for its money


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