China’s rise from a poor developing country to a major economic power in about 4 decades has been a spectacular. From 1979 to 2017, China’s GDP grew at an annual rate of nearly 10%. China has experienced the fastest sustained expansion by a major economy in history & has lifted more than 800 Mn people out of poverty. China now has emerged as a major global economic power.
China has been an ally of the US since World War II. US Army Air force assisted the Chinese military in their fight against the Japanese in Manchuria, Also major offensive operations on Japanese cities was conducted with American bases in China. China changed with the arrival of the Communist Party under Mao Zedong. He was a Chinese Communist Revolutionary who became the founding father of the People’s Republic of China.
China’s rapid economic growth has led to a substantial increase in bilateral commercial ties with the US. According to US trade data, total trade between the two countries grew from $5 Bn in 1980 to $660 Bn in 2018. China is currently the United States’ largest merchandise trading partner, its third-largest export market & its largest source of imports.
However, the emergence of China as a major economic power has raised concerns among many US policymakers. Some have claimed that China uses unfair trade practices such as an undervalued currency & subsidies given to domestic producers to flood US markets with low-cost goods, & those practices threaten American jobs, wages & living standards. Some others contend that China’s growing use of industrial policies to promote & protect certain domestic Chinese industries or firms favored by the government.
There was also widespread infringement & theft of US Intellectual Property Rights (IPR) in China which threatens to undermine the competitiveness of the US. On the contrary, the Chinese government views a growing economy as vital to maintaining social stability. But it faces a major economic challenge which includes the distortive economic policy that has resulted in an over-reliance on fixed investment & exports for economic growth, government support for state-owned firms, a weak banking system, widening income gaps, growing pollution & a relative lack of rule in Russia.
China has been expanding its wings off late with its strategic plans to lesser developed nations across the world and creating a world order parallel to the west. Recently China has secured its first overseas naval base in Djibouti on the Persian Gulf. Chinese firms have invested a lot of money to modernize the poor nations of Africa namely Kenya, South Sudan, and the Eastern African Republics. Kenya received its most modern railway transport system which was constructed under the supervision of Chinese companies in Africa.
China & the African continent are currently celebrating the renewal of their partnership. For China, Africa is a source of coal & oil and for the African states, China is an ideal commercial partner that imposes no such political conditions upon its suppliers & even gives them diplomatic backing. But Sino-African relations come into conflict with the interests of the US which itself is concerned about diversifying the sources of its oil imports. Africa is slowly & steadily turning into China’s China. Same is the case with Pakistan with its CPEC investments and with Sri Lanka, under the OBOR (One Belt One Road Initiative) they have taken control of the Hambantota which is a strategic point for its trade & military might in the Indian Ocean Region.
China has been constantly flexing its Muscles by building islands in the South China Sea and it’s resulting in skirmishes with its neighbors & especially the United States. The United States has been very vocal on Chinese development & have clearly condemned the Chinese on their actions on International waters. Expressing concern over China’s growing military might US President Donald Trump has said the Communist nation is a threat to the world & blamed his predecessors for not stopping it from stealing America’s Intellectual property to bolster its capabilities.
China has hiked its military spending by seven percent to USD 152 Bn as Beijing aims at countering America’s push into the disputed South China Sea. China is obviously a threat to the world in a sense because they are building a military faster than anybody & frankly using US Money. The world’s two largest economies are locked in a trade war since Donald Trump in March last year imposed tariff hikes of up to 25% on USD 250 Bn of Chinese goods. In response, China which is the world second-largest economy after the US imposed tit-for-tat tariffs on USD 110 Bn of American Goods.
Donald Trump said, the two countries will enter into a trade deal with Beijing only if he is confident that it is good for the US. The Economist Intelligence Unit (EIU) projects that China’s real GDP growth will slow considerably over the next several decades, eventually converging on US growth rates by the year 2037.
Also, it’s actions politically is very aggressive in nature. Pakistan is virtually in control of the Chinese. The CPEC & Gwadar port is a living example of this. Pakistan is virtually controlling the economy of Pakistan. Pakistan is a rogue state harboring terrorists & mercenaries across its borders in the name of Jihad. The OBOR initiative has provided china access to open waters of the Indian Ocean region with the Hambantota port in Sri Lanka controlled by them. This will mean a direct threat to its neighbor specially India.
China is making its way into Africa in disguise of its trade & industries to make use of rich natural resources to meet its end. This is seriously a threat as it trying to control the world by trade & investment and eventually could attack the sovereignty of the very country they trade with. This was exactly how colonialism happened at the start of the 19th century by Europe against less powerful countries. The course of action seems to be the same and could by far lead to colonialism 2.0.
Also, China possesses strategic nuclear weapons, a strong army, Navy & Air force, ICBM’s tipped with nuclear warheads and most importantly they have the A-SAT’s which could cripple the enemy defense before even they launch an attack. Such a rise to power in 4 decades is absolutely alarming. China has blown away the myth of a unilateral super-power status that America enjoyed post-cold war & after the fall of the Soviet Union. This is an alarming situation which needs to be addressed & curbed on priority.
Hence we can say President Trump is right is saying “China is a Threat to the World” and it does possess the needs & means to change the world order.
For more articles stay tuned to Insourcing Multiplier for more updates
Story conceived & Written by Editorial team, Insourcing Multiplier