China’s rapid economic and military growth over the past few decades has raised alarms globally. This article will look at some of the most likely consequences of China’s rise. This diplomatic event is going to have a significant impact on global order and international relations. Chinese economic and military data has shown the world that they are rapidly growing. China is responsible for 10% of global economic activity. The country is a significant income generator for many nations globally. The Chinese government has diverted a large sum of its revenue to enhance the nation’s military forces. China is responsible for 8% of global military spending. This nation is considered a powerhouse and sits on the United Nations security council. Through this platform, they can enable or prevent military action from being taken globally. The power to veto, combined with a rising economic and military budget, has made China a vital topic globally.
China has historically had a growing economy; however, the last few decades have seen expanded efforts toward this objective. China’s state-owned enterprises have since launched an assault on natural resource assets. They have managed to find success, particularly in Africa. Their increased income and production have meant that they can provide aid in the form of money, food, and medicine to enhance resource acquisitions. China’s economic and military boom began in the mid-1990s to the late 2000s. During this period of financial success, China doubled its global wealth while increasing the size of its military budget by six times.
The Impact of China’s Rise on the Global Economy
China’s rapid economic growth has given its leadership hope in its economic policies. Their financial tactics have delivered China to be a major economic powerhouse. The development has caused the Western nations to notice, especially the U.S. China is a global player, and therefore its growing economy will positively and negatively impact the world economy.
Advantages
The global economy has benefitted from China’s growth because they all have a stake in maintaining the international trading system. When a significant trader succeeds, many of their trading partners follow suit, which is essentially the reason for global economic growth. The trade becomes more lucrative, and countries are encouraged to take a more active leadership role in maintaining the mutually beneficial free trade system. The best way to further economic and trade reforms for China and the world is through efficient and modernized global trade systems.
China’s success has increased trade globally as many nations have seen the benefits of lowering trade and investment barriers. China’s rise has delivered improved economic efficiency across the globe forcing multinational corporations to invest in innovation. This action has increased product competition and lowered consumer costs.
Disadvantages
The U.S. and its stakeholders have raised concerns surrounding the rate of China’s expansion. They are concerned that this rapid economic and military growth will affect the economy through the introduction of indigenous innovation and technology. This development would challenge the status quo on intellectual property protection. American multinational corporations fear losing market share and human capital to massive corporations in China, which benefit from financial intervention by the state. The Chinese government providing its businesses with subsidies, trade and investment barriers, and discriminatory policies have allowed them to compete with U.S. firms. China has grown, and this has negatively impacted U.S. IP-intensive firms. Many firms in the U.S. have turned to the WTO to help settle any possible disputes. Many nations complain that China has unfair trade policies, a growing threat to the U.S. economy. Due to China’s overall global success, many countries will seek to implement protectionist policies as they fear their domestic markets will be overtaken. Protectionist policies reduce international trade by making it more costly to move products and services across borders.
The Impact of China’s rise on International Security
China spends around USD 150 Billion on its military advancement annually. This budget is relatively small compared to the U.S. military budget, which is close to USD 738 billion. China does possess nuclear weapons; however, the stockpile of its arsenal is less than 10% of what the U.S. military has stored. This data shows that China has a long way to go with its military modernization. China, therefore shouldn’t be considered a threat to international security. The nation has capitalist intentions that are better served through a peaceful transition to achieve great power status. The effect of a better military for China means that all the countries that it has good diplomatic ties are protected. This factor changes the balance of power worldwide as weaker nations can band together against imperialist pressures. China is better equipped to handle any territorial disputes on the South Sea. This geographical area is highly contested because of its usefulness as a port of nuclear deterrents.
The Impact of China’s rise on Global Governance
China’s economic growth has gained it a voice in important international affairs. This shift can be seen through China’s increasing role in international organizations such as the U.N. The country has a security council seat that allows it to impact any decision-making processes within the organization directly. The increased Chinese influence on global governance has led to more policies supporting free trade. It has encouraged China to become a responsible stakeholder in the current trade system. Historically, Chinese culture has always sought to make the country the cultural, political, and economic center of the world. The nation has a Sino-centrist worldview that is now directly influencing global governance. Many countries’ rules, norms, and institutions have become world leaders in regulating international cooperation.
Conclusion
China’s economic and military rise has its pros and cons. The country’s growth has meant that the rate of globalization has increased. Many nations have been encouraged to allow free trade policies to improve their trade deficit. Many governments, however, feel threatened by the growth because of its economic and military consequences. Many multinational corporations are facing pressure to compete with highly subsidized Chinese conglomerates. These stakeholders fear that China will reduce the amount of employment available in the country through improved business efficiency. Combined with a military enhancement program, these factors have meant that China can withstand imperial pressures and veto decisions at the U.N. security council summits. China has had a significant impact on international security and global governance. Regardless of the alarms raised, China has benefitted immensely from good diplomatic relations, meaning it is unlikely to tamper with the current global economic trade systems.
