Good Essays
China is well aware of its economic strength, the position in the world it holds, the challenges it will face in coming years and the responsibility on its part to be shared. This huge economic strength has made china an economic power which, now, can manipulate markets accordingly. E.g. China, despite of huge world pressure, is not showing her will to re evaluate its currency. Challenges it going to face are, domestic and international, strategic and economical. Domestic challenges include the inequality in its society where rich is getting richer and poor is getting poorer. International challenges are to keep its status alive in order to maintain its growth in upward direction when more countries are, after the financial crisis, heading towards protectionism. Strategically faced challenges are to protect its marine routes by deploying more military power and to have a close look towards the countries like Saudi Arabia from where she export oil. These all factors are concerned for china itself but the responsibility which it must share with the different states of the world are to re evaluate its currency as to stabilize the other markets, to decrease its trade surplus as to reduce burden on different states. No doubt China is showing its urge to go back to some extent of protectionism but its signs are not seen yet the fact is China is increasing its exports on the expense of its competitors (BBC News, 2010). But keeping currency devalued was not the only reason which affected the world markets, as during the recession, weak buying power of the customers forced them to buy cheap stuff made in China. Elimination of the textile quota in January 2009 also caused the increase in China’s share of the market (The Econoomist, 2010). I... ... middle of paper ... (Cohn, 2008, p. 57). But it becomes, after certain level of progress, the nature of states that they exert a behavior which is not accepting any other hegemonic state dictating others and this is also, sometimes, hard to swallow for the existing hegemonic states to see declining its powers. And it happened when U.S. credibility as an economic super power is being questioned after current economic crises where China appeared on the globe with much more strong basis than predicted. Thus, if there are more than one power dominating the markets then this competing environment would stabilize the market more strongly. Realistic approach to the relative gains also diminishes in this case where China continuously worked for its absolute gains…. “China continued to put foreign policy second—this time for the sake of economic development” (The Economist, 2010).
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