China; Fruitful Analysis of Chinese Rise

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June 29, 2022

Abstract:

China; Fruitful Analysis of the rise of China:

The present article pertains to narrating china’s rise and its developmental zenith to a new height. China has greatly influenced regional and International state actors by investing huge capital in social and economic ventures. China shed its isolationist policy and interact with the world through an open-door policy. This dimensional shift has increased chinese influence in the region. AIIB, BRI.

OROB ventures are the most prominent and striking efforts by china to dominate globally and become a new superpower in the world. Statistical data has shown how Chinese machinery and manpower have replaced other potential powers from the world forum. A productive and fruitful Analysis of the Rise of China is discussed in a detail by the author.

Introduction:

The rise of China is the biggest development in the 21st century, and it’s the nightmare for the west. It is the miracle in modern history because no state has ever witnessed such development. After its independence, China faced many economic, political, and social crises. Before the economic reforms, 90% of Chinese lived in absolute poverty, hunger had crumpled the society. The life of ordinary masses revolved around food. China did a lot of struggles before climbing the zenith of development and growth in the walk of life. A Detailed Analysis of the Rise of China.

China’s Economy:

China got her development track after the reforms of Deng Xiaoping. The Chinese market has opened to the world, this has changed the face of the Chinese. Over the past three decades, the Chinese average economic growth has increased to 10 %. In 2010, China crossed Japan and became the world’s 2nd largest economy. China’s sharing in the world GDP has increased manifold. In 1980 china only shared 2% of the world GDP but in 2011 it shares 13%. This was a tremendous development for china. China has also become the world’s largest manufacturing center. It has $ 3.5 trillion in foreign exchange reserves. China has the largest population ( 1.36bn), and skilled and cheap labor. China has also the world’s largest army, 3rd largest and strongest Airforce, and the world’s 3rd largest nuclear power. China also has a grave influence at the global level, for instance, VETO power, founder of AIIB, and member of WHO.

History and Evolution:

China is not a newborn country, it has an old and diverse history. China has adopted a policy of isolation from the world, but when China interacts with the world it faced challenges like Opium War. Chinese’ Qing Dynasty Interacted with Britain in the 19th century for trade. Chinese Qing Dynasty was not able to stop the imports of Opium and excessive amounts of Opium crumpled the society.

China and the British fought opium wars, where china lost. Britain and the Chinese government signed treaties ( the Treaty of Nanking and the Treaty of Tianjin).

China has suffered badly from these wars. İn treaties British merchants were not under the administration of China, Britain government controlled its merchants, and china had to open more ports. Many other European Countries also annexed some areas of China. China had entered into a new phase “ Century of Humiliation”.

During this phase, China had lost its territory, and control over its domestic and international environment and also lost its international standing and dignity. The time span of a century of humiliation was from 1848 to 1948. Many revolts took place against Qing Dynasty and colonial powers. Qing Dynasty ended in 1912.

Independence of China:

Mao Zedong declared the independence of China on 1 October 1949, with the announcement of Independence full-scale civil war between the Chinese Communist Party and the Nationalist party ended.

Maoist Period:

The presence of the European on the soil of China badly affected china’s National Unity and economy. Mao Zedong took the responsibility for regaining china’s glory. He made the communist party and wants improvement of the Chinese under the umbrella of the Communist Party. In 1950, both countries signed the 30 years treaty of friendship. Chinese- Soviet Relations were at their peak till 1957, china was a strong supporter of Stalin and considered a Stalinist strategy of centralized planning the best strategy to counter its economic problems.

Because USSR counters the consequences of World War II by using this model. USSR has given technological aid to China. During the period of Mao, his major focus was on heavy industry rather than on the agriculture sector. “Analysis of the Rise of China”.

In 1971, Mao invited the USA for bilateral relations and finally, USA President Nixon came to China in 1972. Both states want diplomatic relations and work for peace and stability. China wants the USA, to end of containment policy of China. China only wants to focus on its domestic sectors. So china took advantage of it, and now it emerged as a superpower.

The period of Deng Xiaoping:

After the Death of Mao, Deng Xiaoping came into power and this changed the face of China. Deng took many economic reforms and due to such reforms, china has now the second-largest economy in the world. When Deng came into power, he introduced the open door policy. He welcomed foreign capital and investment for economic growth but China will maintain the traditional Confucian state and values.

Deng only opened some areas like Shenzhen, Zhuhai, and Xiamen. He just wants to see the result of reforms. According to him, if the reforms will work then they will spread to another region of the country too. So he established special economic zones, economic and technology development zones, high-tech industry development zones, and delta open zones. Many companies from Hong Kong and Taiwan invest in such zones. Domestic investors also get confidence and invest in such economic zones. These reforms boost the economy of China. For example, the GDP growth rate of China was 9.3% between 1979-1993 and when we compare it with the World GDP growth rate, China has exceeded GDP. The total GDP growth rate of the world during this time span is 2.0%. Due to such reforms, almost 800 million Chinese people came out of absolute poverty.

Reforms:

In 1980, China initiated the system name Household Responsibility System ( HRS). Under the umbrella of this system, Each family was given a collective land and they must cultivate the land and contribute to the country’s economy. Householders must provide a certain amount of crops to the state and the remaining crops can be sold by the owner. The profit of surplus crops will utilize in buying advanced types of equipment and invest in the market. In this system, the decision-making authority is in hands of an individual family. China also reconsidered some policies, like Chinese foreign joint venture. When China opened the market that it was compulsory for foreign investors to give Chinese partners but in 1986, china redesigned it and give the right to establish foreign-owned enterprises. So many investors have considered it a golden opportunity and invested in it. “Fruitful Analysis of the Rise of China”

The shift in the paradigm:

China knows the importance of the US and the West for its modernization and development. China moves toward the USA for two main reasons:

Technology, trade, capital, and Technical Assistance.
Counter USSR Expansionism

China knows that she will not work properly with her open-door policy if she has a conflict with USA and USSR. China mainly focuses on peace, stability, open market, etc.

China on its way to rise:

China is focusing on the third world because the third world is very important from a market perspective. China is selling its arms, Chinese product, soft power, etc. Developing countries are also important for China in the international arena. China wants its own block and for that it needs countries. We have also witnessed in the past the importance of the third world to China. China wants natural resources for her industry so she moves toward developing countries. China became a net importer of oil in 1993. Demands for other resources and raw materials such as iron ore, titanium, copper, uranium, aluminum manganese, and timer have also deepened since the mid-1990s. Energy demand propels china to move to Africa, central Asia, and Latin America.

In the 1990s, China imported half of its oil from oil-producing countries of the Middle east. But the USA was involved in the middle east and affect the interests of China and china shifted its policy from the middle east to central Asia. China wants fuel for running its industry and central Asia was giving it. So china Formed SCO in 2001 and anchored in the region.

In 2000, the Forum of China and Africa Cooperation (FOCAC) was formed. The objective of this association was to promote diplomatic, trade, security, and investment relations between China and African countries. China began to invest in the energy sector in Africa. Chinese FDI was less than 5 million dollars in 1991 but it includes up to 100 million dollars in 1999. China invests in Nigeria, Angola, Kenya, Gabon, the Republic of Congo, etc. China invests millions of dollars in Africa for drilling, and exploration of natural resources. The Fruitful Analysis of the Rise of China by a Pakistani author.

China’s new method of promoting its soft powers:

USA and Western powers gave foreign aid for development but also add conditions like promoting democracy, transparency, etc. Some countries were not happy with such conditions. China also started giving development Aid, loans, etc. The Chinese Aid model is different from the USA because China does not want any kind of economic or political conditions. So many states consider China a good and reliable trading partner. This is a Fruitful Analysis of the Rise of China.

Relation with ASEAN:

In 1991, China officially wants economic relations with ASEAN. China was the largest trading partner of ASEAN since 2009. The trade between China and ASEAN increased twice after 2010. It was $235.5 billion in 2010 and in 2019 it was $507.9 billion. ASEAN also increased its export rate. The export rate was 10.4% in 2010 and its import rate was 12.5% in 2019. ASEAN’s trade deficit with China also increased. It was $10.4 billion in 2010 and $102.9 billion in 2019. China also increased the FDI rate in the ASEAN. FDI in 2019 was $9.1 billion. China is the 4th largest source of FDI in the ASEAN. During the covid-19 pandemic, China does not stop any taking of trade with ASEAN. The trade volume increased by 2.2% during 2020. So China became the largest trading partner of ASEAN. The ASEAN region is very important for China. In Chinese Asia pacific policy, ASEAN is very crucial and chokes of Chinese economy present in this region. (Malacca Strait)

China’s Belt and Road Initiative (BRI):

China’s Belt and Road Initiative (BRI), initiated by President Xi Jinping in 2013, is also known as a new silk road. Under the umbrella of this mega project, there are many development and investment projects.

It will connect East Asia with Europe. This project is very crucial for the Chinese Economy. It will work the same as the old silk road. The silk road connects China with Central Asian countries, present Afghanistan and Pakistan.

Many Central and Eastern European countries have accepted BRI funding, and Western European countries such as Italy, Luxembourg, and Portugal have signed interim agreements to support BRI projects. The BRI also works on the same route and connects all these states to China. Under the BRI project, there is a vast network of railways, highways, energy pipelines, hydropower projects, etc. when China will connect with states then it will be able to internationalize its currency, (renminbi). Almost 60 states joined or, 2/3 of the world population showed interest in BRI.

China is just trying to shape international norms and institutions. BRI is geopolitically and economically important for China. Now US-China relations are not cordial or friendly as compared to the 1980s. China wants a new market for her projects or wants an alternative to the USA market. So she initiated this mega project.

Many experts are also considering BRI as a road map to achieving made china 2025 plan. China wants the development of her western part like Xinjiang province. China’s western part is not developed as compared to other regions. So many separatist movements are growing there, and china wants development in that region so that this region develops under the umbrella of the BRI.

Establishment of Asian Infrastructure Investment Bank ( AIIB):

This is the biggest achievement for China and Asia. China has initiated this financial institution to counter World Bank and IMF. Its headquarters is in Beijing.

There are 105 countries that joined this major project. İt invest in infrastructure, energy, rural infrastructure projects, transportation projects, environmental projects, and logistics projects in the ASEAN region.

Objectives

There are four major objectives:

Connectivity

Productivity

Asian development

Infrastructure

AIIB more focuses on the connectivity of the people, like people-to-people connectivity, business-to-business connectivity, and infrastructural connectivity. When there will be connectivity then it will increase productivity and when there will productivity then it will prosper Asia and increase infrastructural development in Asia. Countries can join it but they must give a starting capital that is $100 billion.

Many states are joining it because its starting capital is low as compared to other financial institutions. For World Bank, states must give $250 billion and for an Asian development bank, it is $164 billion. “Fruitful Analysis of the Rise of China”

Why AIIB?

There are many financial institutions but these institutions are not able to fulfill all requirements of the Asian states. According to the ADB report, Asia will need $8 trillion in the next decade to fulfill its infrastructural needs. The existing global financial institutions’ support is not enough to fulfill such needs. It is regionally specific, and more focused on the prosperity of a specific region.

China also wants to counter World Bank and IMF and wants domination. These are the reasons behind forming AIIB. China has the largest shares in it, and India has the 2nd largest shares. China has current larger foreign exchange reserves and she wants to invest this money. So China is investing this infrastructural money in India, Pakistan, the Philippines, Afghanistan, Oman, etc. China also wants to build confidence in member states. So China will replace the USA and dominate in the world.

Conclusion:

Developing states must follow the footsteps of China and learn from China’s development model. China was struggling for food due to Mao reforms but now china will be the next superpower. China firstly focused Domestically and then went globally. China is now challenging the hegemony of the USA. China is exceeding from USA in GDP ( PPP).

China is also trying to control the global institution by having Veto Power, a foundering member of AIIB. A state which is economically strong, and controls the global institutions are considered as super Power. The USA is super powerful because it has such power but now China is on its way to becoming a superpower.

China is economically strong and its GDP Growth in 2021 was 8.08% and the USA has economic growth of 5.7 Percent. Covid-19 affected the whole world economy but China was not affected as compared to the USA or European countries. China also initiated the BRI and this BRI boost the economy of China and gives an edge over the USA. “Fruitful Analysis of the Rise of China”!

The other factor after an economy that determines a superpower is, controlling global institutions. The USA is controlling all institutions and also gives 21% of its financial contribution to the world bank. The USA is giving $53.2 billion to the world bank.

The USA also gave 700 million to WHO. The USA is also contributing 22% to the UN’s yearly budget. So the USA has an influence on these institutions. So the USA used this platform of institutions and legalized its actions like the war on terror, attacks on the Middle East, and Israel-Palestine Issue. China is also focusing on it.

We have the example of AIIB, China controlling Half of the voting rights. She introduced it to replace the role of the World Bank and IMF. China is now moving globally and near future, it will replace the Hegemony of the USA and will become new Super Power.

This article is written by Rashid Aziz, who is currently studying in International Relations at the National University of Modern Languages, Islamabad. He is interested in global politics and diplomacy. The views written in this article are purely the author’s own views and do not reflect the opinion or views of the Youth Diplomacy Forum.